TAX PLANNING SOLUTION
Find a good fitTax Planning
Tax planning is the collective term used for practising tax avoidance to minimise tax liability. Tax planning is being able to take advantage of the opportunities to minimise your tax bill in a way that is encouraged by parliament.
ISAs and pensions are both ways of tax planning. Effective tax planning will mean more money in your pocket, either or investing or for spending.
The difference between tax planning and tax avoidance is that tax avoidance always increases your tax risk, while tax planning either reduces it, or does not increase your tax risk.
Unlike tax avoidance, tax planning is the practice of minimising tax liability with no intention of deceit, while some practices of tax avoidance have been found to have the intention to deceive.
Similarly, tax mitigation is also the practice of reducing tax in a way that is consistent with the law and the policy behind legislation.
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