Taking the time to check your tax situation could reward you financially and bring you added peace of mind, says Samantha Kaye from Wellesley Wealth Advisory.
It’s true – most of us would rather clear out the garage or scrub the bathroom floor than review our tax position. But, by sparing an hour or two to do so, you could potentially be substantially better off – and also gain a surprising sense of calm (no, really!).
It’s important to keep an eye on your tax situation throughout the year and not store up everything for an annual ‘blitz’ – otherwise, you could wind up paying too much tax or, in some cases, not enough, which could see you landed with a nasty fine.
An ‘interim’ check-up is especially important if you have a change of circumstances – for example, changing jobs or even getting a pay rise. All these things could mean you need to manage your finances slightly differently to make sure everything is running as tax-efficiently as possible.
The value of advice
I’ve previously written about the importance of ladies having a financial adviser on their power teams, and financial guidance can really come into its own when it comes to keeping a watchful eye on your tax situation – even when it’s the furthest thing from your mind.
If you’re already drawing on your pension or contemplating dipping into it, an adviser can help guide you through accessing your cash in the most tax-efficient way, taking all your finances into account. After all, the last thing you want to do is risk a big tax bill by taking a lump sum out of your pension when you could have taken it tax-free from another pot!
What’s more, if you own a business, an adviser can help you make sure you’re making the most of your tax allowances throughout the year – not just at tax year-end! Tax breaks and allowances can also help you grow your personal wealth, and taking advice can help make sure you use them to your full advantage – whether you want to build a nest egg to support a child or grandchild, or feather your own nest and grow your retirement savings.
Added peace of mind
It’s impossible to say how much money an annual tax review could save; however, when I talk to my clients, it’s clear that the value of a proper tax review goes far beyond financial gain. It’s about the sense of calm that it can bring, leaving you safe in the knowledge that you won’t be hit by a surprise tax bill or be caught on the back foot.
I’m here to help – contact me today for a no-obligation review!
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.