Our team of chartered tax advisors is here to help guide you through the tax planning process to not only ensure your tax returns are submitted accurately and on time but also to provide specialised advice, tailored to your needs. Beyond the main services such as tax return support, we additionally offer strategic guidance relating to inheritance tax, tax planning, VAT and business tax, as well as providing advice and negotiating with HMRC on your behalf for tax investigations and disputes.
At MMG Chartered Accountants, we understand the complexities of tax and the benefits of effective tax planning, especially within the context of Scottish taxation laws. Whether you’re an individual seeking to maximize your tax efficiency or a business aiming to navigate the intricacies of corporate taxation in Scotland, our experienced professionals are here to assist you every step of the way (both virtually and in person across each of our 6 office locations including Dundee, Montrose, Perth, and Crieff).
By entrusting your tax planning needs to our team of chartered accountants, you’ll gain access to a wealth of expertise and knowledge in Scottish tax laws and regulations. We’ll work closely with you to develop a personalised tax strategy that aligns with your financial goals whether it’s securing your financial future, optimising your business’ financial performance, or even both. We believe in transparency, integrity, and professionalism in all our interactions, which is why we strive to empower our clients with the insights and guidance they need to make informed decisions and achieve their financial objectives.
To support you in your financial journey, we’ve put together a list of some of the most frequently asked questions about tax planning and have provided some advice to help you make a more informed decision, better understand tax terminology, and more. Please note, however, this list is for general information only and for more specific advice we recommend reaching out to our team for a consultation.
Frequently Asked Questions (FAQs)
What are the key differences between Scottish income tax and UK income tax?
Scotland has more tax bands compared to the rest of the UK, so taxpayers will pay slightly different rates depending on their income. The 2024/25 earnings thresholds and tax rates for Scotland will include the introduction of a new “Advanced” band for earnings between £75,001 and £125,140 where the tax rate will be 45%. This will take Scotland’s tax bands up to six, with the highest band taxing income at 47%.
Elsewhere across the UK, the tax bands are as follows:
- Basic rate for income between £12,571 and £50,270 – 20%
- Higher rate for income between £50,271 and £125,140 – 40%
- Additional rate for income over £125,140 – 45%
For more information about tax bands in the current financial year, please see the Government website. If you have any queries about the changes to tax bands in the upcoming financial year, please speak with our team.
What are the tax implications of starting a business in Scotland?
Starting a business will require a range of tax considerations, including filing for relevant taxes, understanding VAT regulations, familiarising yourself with R&D, and more. Consulting a chartered accountant early in the process will ensure you comply with all tax obligations, understand your business’ tax position, plan for future tax contributions, and ensure there are no surprises throughout the financial year!
What is tax planning?
The term “tax planning” refers to the strategic management of your finances to ensure you are not only compliant with relevant laws and regulations in your country, but can also minimise your tax liabilities and ensure you are not overpaying tax. Examples of tax planning strategies include increasing your pension contributions, familiarising yourself with what you can claim business expenses for, analysing your biggest tax liabilities and identifying investment opportunities that may reduce the amount of tax you’re paying out, and more.
What is the difference between tax planning and financial planning?
While tax planning mainly focuses on minimising tax liabilities and helping your money go further, financial planning encompasses a broader range of financial goals and is usually long-term, beyond the current financial year. It can include monitoring and revising your investment strategies, planning for retirement, managing your savings and income, and more.
How much does it cost to hire a tax advisor?
The cost of hiring a tax advisor in Scotland as well as across the UK can vary based on a number of factors including (but not limited to): the complexity of your tax situation, the services you require, your income, and even the expertise of your advisor, e.g. a chartered tax advisor may bill higher for their services compared to a regular tax advisor as they will have more specialised knowledge. Fees can then be charged on a retainer basis or you might be billed a fixed cost for a particular project/enquiry. When shopping around for quotes, be sure to consider the potential tax savings gained versus the advisor’s fees to help you make an informed decision and consider their level of expertise before accepting the cheapest quote!
Can you ask HMRC for tax advice?
HMRC provides a range of support options as well as running regular webinars and offering general guidance to help point you in the right direction, but do bear in mind HMRC cannot offer personalised advice. Instead, they recommend consulting a qualified tax advisor to ensure the guidance you receive is specific to your circumstances.
How do I know if HMRC are investigating me?
HMRC will contact you directly via post if a formal investigation is underway and they may also speak with you and your accountant if they require more information. An investigation may be due to discrepancies in tax returns, unusual fluctuations in income, reports from third parties, and many more factors (you can also dispute investigations and our team can manage the process on your behalf). However, be wary of spam emails and phone calls claiming to be from HMRC as, unfortunately, these scams are common.
What are the benefits of engaging a chartered accountant for tax planning?
Chartered accountants possess the expertise and knowledge to navigate the complexities of Scottish tax laws and regulations effectively. By working with a chartered accountant, individuals (and businesses) can benefit from personalised tax planning strategies designed to optimise their financial position, plan for the future, and minimise liabilities.
Remember: This article provides general information and should not be considered as individual tax advice. Please consult with a qualified chartered accountant for personalised guidance based on your specific financial citation.
Contact MMG Chartered Accountants
Make MMG Chartered Accountants your trusted partner for comprehensive accountancy services in Scotland. We are committed to helping you achieve your financial goals and secure a prosperous future. Contact us today to schedule a consultation and discover how we can empower you to take control of your financial well-being. Contact our team at mail@mmgca.co.uk or call your local branch.