Life changes that should trigger a conversation with your accountant
It is easy to think of your accountant as someone to contact when your tax return is due or a specific issue arises. In reality, some of the most useful conversations happen outside of this; when changes in your life stand to affect your finances, tax position or future plans.
Major life changes often bring financial decisions with them. Some are obvious, others less so, but the right advice can help you understand the tax implications, consider your options and avoid surprises later on.
In this article, we address some of the key moments when it might be worth picking up the phone and talking to us.
Retirement planning is not just about having enough money saved; understanding how and when to draw your income, how different sources of income interact, and whether your finances are structured as efficiently as possible are all equally important.
When it comes to making decisions about pensions, savings, investments, business interests and other assets, it is worth seeking advice before taking any action as your tax position may be affected.
This can be particularly important if you are winding down to retirement gradually, if you are selling or stepping away from a business, or if you intend to combine different sources of income to support yourself in later life.
Questions worth considering include:
Decisions about retirement and how you intend to finance this period in your life can have long-term tax and cashflow implications, and some choices may be difficult to unwind once made.
We can help you to ensure that your income is structured in line with your retirement plans, while making use of available allowances and avoiding unnecessary tax where possible.
As much as stepping away from a business might prompt a conversation with your accountant, a new business venture or source of income should also trigger a discussion.
Many people now receive income from outside traditional employment, whether through consultancy work, property, online trading, investments, freelance projects or a new business idea.
Income may be low to begin with, and it may not be consistent at the outset, but it still matters. As time goes on, you may find new tax and reporting obligations arising, so it is worth being clear about your position from the outset.
We can help you make informed decisions before commitments are made, rather than having to correct issues later, and ensure you have a clear understanding of what needs to be reported, when tax might be payable, and how to keep the activity organised from day one.
Just as new income can change your tax position, receiving an inheritance can also alter your financial landscape. Inheriting money can often be accompanied by challenging emotions and it’s natural that you might not instinctively know what to do next.
Once the initial practicalities have been dealt with, it is worth taking advice before making significant financial decisions, so that the inheritance can be considered in the context of your wider tax position and long-term plans. For example:
A sudden increase in wealth can create new planning opportunities that are worth reviewing. We can support you to consider how best to use, invest or protect the assets you receive.
Whether selling a property or making a substantial investment, the timing, structure and purpose of any major transactions can have significant consequences for your tax liabilities and overall position, that may not always be immediately obvious.
A conversation with your accountant can highlight key planning opportunities that might otherwise be missed, can help you to plan for any liabilities and, ultimately, prompt you to consider how the transaction fits with your wider financial objectives.
Major financial decisions are not always linked to investments or property transactions but can also arise as a result of changes to family circumstances.
Marriage, divorce, having children, helping younger family members onto the property ladder or supporting elderly relatives can all bring new responsibilities and financial considerations. These changes may influence:
When family circumstances change, it is essential to revisit any legal documents that might need updating, and to consider the wider tax and financial implications of the event. We can help you to ensure that your arrangements still reflect your current position, protect those closest to you and support your longer-term plans.
A change in family circumstances is often one of the clearest signs that your Will should be made or reviewed. While it can be easy to put this off, having an up-to-date Will is one of the most important steps you can take to ensure your wishes are understood and that the people you care about are properly protected.
A Will gives you the opportunity to decide who should inherit your assets, who should deal with your estate, and who should take responsibility for any children or dependants if needed.
Without one, the rules of intestacy will determine how your estate is distributed, which may not reflect your personal wishes or the needs of those closest to you.
This is particularly important if:
Your Will should also be considered alongside your wider estate planning, including any lifetime gifts, trusts, pensions, business interests and inheritance tax planning. Keeping these arrangements aligned can help avoid confusion, reduce the risk of disputes and ensure your estate is dealt with as efficiently as possible.
We can support you with writing or reviewing your Will, while also considering whether your wider arrangements still reflect your wishes, your family circumstances and your longer-term financial plans.
If something significant has happened in your life, or you have a major financial decision in the pipeline, speak to us before taking action.
A timely conversation can help you understand your options, avoid unexpected tax consequences and make decisions with greater confidence – contact us today.
We pride ourselves on delivering bespoke balanced solutions, combining strategic business advise with expertise in accountancy, tax and other specialist areas. We can help you to turn the numbers in to something meaningful, so that your business can realise its full potential.
View All ServicesIf you would like to see the full details of our data practices please visit our Privacy Policy
