A recent article in The Times argues that the main cost of inflation is not economic, but taxation related. If the tax bands are not indexed linked, then those with only a small increase in taxable earnings will be dragged into the higher taxation brackets. This will reduce disposable income. Fortunately, within the UK inflation is currently very low. However, history tells us that it is unlikely to remain the case for ever. Taxation planning should therefore always be a key consideration.
Our experts at Beavis Morgan can guide you through the tax maze and help you with bespoke solutions. Please contact Alan Ford or your usual Beavis Morgan Partner.