As COVID disruption is creating so many finance related concerns for UK taxpayers this year, will tax planning be taking a back-seat?
More importantly, now that the SA tax filing cycle is completed for 2019-20, will practitioners be able enthuse clients with possible tax saving strategies that they can employ before the current tax year ends 5 April 2021?
What will clients expect?
In our opinion, clients – even those distracted by COVID concerns – will expect you to flag-up any ideas that may improve their situation. However, practitioners will be aware that many clients are unable to increase their costs and so firms will need to demonstrate that any ideas they put forward to save tax must have some residual beneficial financial value. In other words, the cash benefits of taking your advice must exceed the cost of you providing the advice.
Watching your client’s back
If you are committed to keeping your clients informed of possible tax saving strategies, there are two processes you need to undertake:
- Send clients easy to digest updates on possible tax planning savings
- Follow up, discuss how specific strategies might be employed before the end of the tax year.
Your follow up calls will include a realistic conversation about your fees for providing the advice. Even if you and your clients fail to identify beneficial strategies, clients will appreciate that you are watching their backs.
What you will need
Firstly, you will need to create tax planning check lists that are relevant and that include an appreciation of the disruption and challenges of COVID. You will also need to identify clients that might be receptive to or benefit from a tax planning review for 2020-21.
As practitioners are always strapped for time, it may also be an advantage to have support staff who can be diverted to administer the process.
Like our help?
The February resources we have created for our Fee Builder subscribers provide three detailed check lists: for individuals, business owners and landlords. The pack also includes a step by step implementation process.
There is no doubt that relevant tax planning advice will always find traction with your clients. COVID has introduced new challenges this year, but the benefits of tax planning advice are still readily available. As professionals, we have a responsibility to offer beneficial advice even if clients decide to pass-up the opportunities we showcase.
Take a look at Fee Builder. For just £55 – your first month’s subscription – you get access to our Tax Planning resources for 2020-21.