Individuals in the PAYE boat see this month on month, but it’s not until these returns are made that the self-employed start thinking about ways to reduce their liabilities.
Now is a fantastic time of year to contact any clients earning over £150,000 who have yet to consider income tax planning. Of course, this is only worth doing if a secure and suitable solution is available to your clients. Well, this might just be it but not for long.
Mulbury Hamilton’s Picasso structure has a successful legacy spanning in excess of 8 years. The strategy is effective for both the current tax year (2011/2012) and can also include the 3 previous tax years.
The strategy is available for both PAYE and Self-Employed clients and works on earnings of any kind. In fact, it is so robust, the structure has recently won at the Upper Tier Tax Tribunal and left HMRC with no choice but to accept that the planning complies with all current UK legislation, as set by The Treasury.
While this success seems like a fantastic win for clients, it has raised a few eyebrows at the tax office. HMRC are applying pressure on the government to change the rules within the March 2012 budget in order to put a stop to the strategy. This would not have any effect on current (or past) individuals exercising the planning but would put a stop to any future activity.
Now could be the last chance you get to help clients who are paying the higher rate of income tax. And, that’s not just for this year, but, for as far back as 2008/09.
