1.  Avoid Paying Tax at Source

One of the first things a Financial Adviser should be checking with a new client is their tax situation - are they paying tax when they shouldn't be? 

If you are a non-taxpayer and have investments earning interest and if the interest will not take you over the personal allowance limit then the interest on the account can be paid gross without the deduction of tax.    

To register the investment a form R85 needs to be completed for each bank or building society type investment contract. 

Also, don't forget (as covered in the Summer edition of Your Money Matters) from April 2015 the first £5,000 of income from savings will be tax free but here again you must remember to complete the form R85.

2.  Claim a Refund for Overpaid Tax  

If you've paid tax on interest earned, where you shouldn't have done so in respect of a previous tax year, it's still possible to claim the monies paid back from the Inland Revenue and here you would need to complete an R40 form and submit one form in respect of each tax year. 

3.  Transfer Savings & Investments to Your Partner
 

Transferring savings & investments to your partner can save tax if you are part of a couple where one person is at a lower tax band than the other.  It's advantageous to transfer savings & investments from the partner in the higher band to the partner in the lower band and particularly worthwhile if one partner is a non-taxpayer because their income is below their tax free personal allowance.

4.  ISA Allowances

As each one of us is now allowed to invest £15,000 in cash or investment ISA's in any combination we wish, again this is an excellent way to try and reduce the levels of tax that you might be paying on cash and investments.

Please don't hesitate in contacting your Financial Adviser here at Firth & Scott at Firth & Scott Financial Services Ltd should there be any matters relating to this article or any aspect of your financial planning you wish to discuss.

Article written by Steve Hopkins FCII