Yep. More tax, not less tax. No, I’ve not completely lost it. I am, seriously, as an accountant, suggesting that there are times in life where you might have to decide to pay more tax.
I’ll explain quickly, before you run from my madness. It’s quite simple: paying the minimum amount of tax should never be your main goal in life. It may be a side-goal which helps you achieve your main goals (e.g. maximise your investments, or add another buy-to-let property to your portfolio) but it shouldn’t be your main goal. Sort out your main goals, and then get everything else in line with them.
This all became a big issue with a couple of our clients very recently. You see, they were both eyeing a house move. Getting that new family home became their main goal, at least for a while.
And the way we were able to help them get there was to arrange their finances over the past couple of years so that they maximised their personal income. That meant that when the underwriters (those strange, strange beings – has anyone actually seen one>) checked out their last few tax returns, a good, healthy, consistent and growing income was apparent.
To do this meant paying more tax than was strictly necessary, at least in the short term. But we helped our clients do this, because it was part of achieving their goals, part of getting where they want to go.
What are your goals going forward into 2018? What’s nagging at you? Where do you want to go? Maybe it’s a new family home as well. Or a dream holiday. Or a car, if you’re a petrol-head. Get your main goal or goals sorted out. And then talk to us, and we’ll do what we can to help you get there.