12 5 Tax Paying taxes comes back to the principle of integrity. We have to accept our responsibility for giving something back, paying our way in society and ensuring that goods and services are paid for. Whenever you’re dealing with tax, it’s very important to understand the distinction between tax evasion and tax avoidance. Tax evasion is illegal, however, legally there are things that y ou can do to reduce your tax liabilities. There’s a balance and new ways to avoid tax are emerging all the time. You have to be careful about what strategies you choose to implement and make sure you’re aware of the risks so you can determine whether these are risks worth taking. One main issue is most people aren’t aware of their annual tax allowances and exemptions. These allowances are all perfectly legal and, when used correctly, can help you reduce your current and potential tax liabilities. Often, these are things that people don’t even consider until they sit down with a Financial Planner. People are increasingly seeking Financial Planners to make wise financial decisions, rather than relying on tools or apps – they want to make smart decisions in all areas of their financial life. 20 Jonathan M. Gibson CFP™, Chartered Fellow (Financial Planning) www.wellsgibson.uk
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