Insights and Updates on Tax Planning and Beyond

Let’s be honest, most AI content aimed at accountants either sounds like science fiction or sales fluff.

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But when Alastair Wilson, tax partner and long-time AI tinkerer, sat down for a recent webinar, he gave the kind of advice that small and mid-sized firms could actually use. No overhyped tools. No wild predictions. Just real-world examples of how AI is quietly transforming personal tax work—one workflow at a time.

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So what’s he doing differently? And what can other firms learn from it?

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Why now? The window for AI in tax has cracked wide open

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According to Alastair, the last 12 months have changed the AI conversation in accounting. For starters, tools like ChatGPT 4 and Microsoft Copilot have become far more capable, and crucially, more accurate.

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“What I was spending an entire day doing, now takes me half an hour to get 80% of the way there,” he said. “The research models are finally trustworthy. You just need to do the final 20% and sense-check the sources.”

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That speed boost means firms of every size can now start using AI to save time. And unlike cloud software rollouts, there’s no need to drag IT through a six-month implementation plan. As Alastair puts it: “If you’re in a small firm, you can test ChatGPT on Monday, Copilot on Tuesday, and Perplexity on Wednesday. You don’t need a committee.”

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AI isn’t magic, but it is powerful when paired with RPA

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Alastair’s been hands-on with automation since before COVID, starting with robotic process automation (RPA). These days, he sees AI and RPA as two sides of the same coin:

“AI is great for research. But when you connect it with automation tools like Power Automate or Zapier, that’s when you get real efficiency—like pulling addresses from Companies House, or generating year-end reminders automatically.”

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His approach? Use AI to do the heavy thinking, then let automation handle the grunt work.

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3 practical use cases Alastair’s built (that you could too)

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Here’s where things got meaty. Alastair walked through a handful of actual AI-driven tools he’s set up, and how they’ve saved him serious time:

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1. AI-generated client newsletters

Instead of scouring HMRC updates every month, Alastair has a ChatGPT task that sends him 10 relevant tax topics on the 1st of every month automatically.

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“It’s like having a tax-aware assistant who brings you the headlines without asking,” he said. “If you like all 10, copy and paste. If not, pick the best.”

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No marketing team required.

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2. ERS return automation with GPT

Every year, the employment-related securities (ERS) return used to chew up hours. Now, Alastair feeds ChatGPT the key share information, and it suggests the right HMRC template, pre-fills the form, and provides a downloadable summary.

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“Of course I check it—but it’s 90% done. That’s hours saved straight away.”

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3. Building assessment tools in minutes with Lovable or Replit

If you haven’t heard of Lovable, it’s an AI tool that can generate an entire tax app from a plain-English prompt. Alastair used it to create a statutory residence test tool in minutes.

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“I typed in what I wanted, and five minutes later, I had a clickable prototype. You wouldn’t use it live with clients, but it gives you a working starting point to build from.”

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And that’s not the only use. He’s also built basic platforms for tracking employment-related securities and even mocked up transfer pricing calculators—all with little-to-no traditional dev time.

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Copilot vs ChatGPT: Which one does he actually use?

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When asked about Microsoft Copilot, Alastair had a clear answer: “The free version is limited. But if you pay for the enterprise version around £20 a month, it’s brilliant.”

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He’s especially excited about building “agents” using Copilot Studio. These agents can handle multi-step queries and even pass data between each other.

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But if you’re asking technical tax questions?

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“I still go to ChatGPT for that. It's better at technical depth. Just don’t feed it names or client data unless you’re using the enterprise version.”

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Planning, not panic: What this all means for firms

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Here’s the reality check. If your firm waits 12 months to explore AI, you’re not just delaying, you’re falling behind.

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“If someone else can provide an answer in 24 hours, and you’re still taking two weeks… clients will notice. And they will move.”

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AI isn’t replacing accountants. But it is replacing slow ones.

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Whether it’s auto-drafting engagement letters based on meeting transcripts, or building smart prompts that juniors can use to deliver consistent outputs, Alastair’s core point was simple:

“It’s about taking the boring bits off your plate so you can focus on the interesting stuff.”

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So where do you start?

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Alastair’s advice: pick a low-risk workflow and try something this week.

• Test a newsletter prompt
  
  
• Automate one tax reminder
  
  
• Try an ERS return with ChatGPT
  
  
• Build a basic scenario calculator in Lovable or Replit
  
  

You don’t need to be technical. You just need to be curious.

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“Start small. Save time. Then show the team what’s possible.”

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Could AI save you 3 hours this week without changing your entire process?

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What’s the first workflow you’d test it on? Let us know—we’d love to see what you build.

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Why does personal tax still feel so manual?

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It’s the one service nearly every firm offers, yet it often sits in the “messy middle” of the business. Reactive. Manual. Underpriced. Personal tax has a habit of staying stuck.

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The thing is, most firms didn’t design it this way. Their personal tax setup just evolved—through team changes, client demands, and year-on-year workarounds. There’s nothing to be ashamed of. But there’s plenty of room to do it better.

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Russell Gammon (Chief Solutions Officer at Tax Systems) joined us for a wider conversation about how firms can use AI more effectively in tax—and what it takes to turn everyday work into scalable, structured services.

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The work is there. But the structure often isn’t.

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Across the board, firms are already doing personal tax work. What’s missing is the structure.

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The team might be scrambling to get information in time. Processes are often buried in people’s heads. And the value? It’s typically hidden in phone calls or bundled into year-end.

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That’s the root issue. There’s no consistent client experience, and no internal visibility of what’s actually being delivered.

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Firms that are making progress in this space aren’t necessarily building brand-new services. They’re tightening up the ones they already have—adding process, defining outcomes, and charging more confidently.

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The biggest blocker? Headspace.

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It’s not that firms don’t want to improve things. It’s that they rarely get the breathing room to do it.

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Many are caught in the “stuck middle”—not sole practitioners, but not large enough to have specialist departments. It’s hard to step back and rework a service when you’re buried in it day-to-day.

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But as Russell pointed out, change doesn’t start with massive restructuring. It starts with curiosity.

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The firms doing this well are the ones asking:

• Why do we do it this way?
• Could we make this repeatable?
• What would this look like if it was designed on purpose?

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3 places to start:

1. Get everything out of your head

Much of personal tax delivery sits in spreadsheets, emails, or someone’s memory. The first step is to map out the client journey. Not on a system—just on a whiteboard.

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Where are the bottlenecks? Where are you duplicating effort? Where do clients slow you down?

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Once you can see it, you can start to fix it.

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2. Standardise what “good” looks like

Don’t automate a mess. Define what a high-quality tax job looks like—what info you need, how it’s delivered, what the client receives—and build around that.

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You’ll find that once there’s a reference point, it’s much easier for the whole team to work consistently. That’s where efficiency (and profitability) starts to take hold.

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3. Use AI to speed up the right bits

AI isn’t going to do your job for you—but it can take care of the time-consuming parts.

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Firms using Tax Torch are cutting hours out of reviewing returns, summarising documents, and modelling live scenarios with clients. What used to be a juggling act between calculators and guesswork now takes a couple of minutes.

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But it only works when there’s already a process in place. Tech accelerates structure—it doesn’t replace it.

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Client communication doesn’t need to be complicated

When it comes to delivering tax planning advice, firms often worry they’ll overwhelm clients—or come across as uncertain. But most clients don’t want five options or deep tax theory.

They want clarity.
What should I do?
What will it cost me?
Will it save me anything?

The firms doing this well aren’t over-engineering things. They’re simply showing clients one or two smart options and backing it with confidence. It’s not about being 100% perfect—it’s about being helpful.

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Start small. Scale what works.

Personal tax doesn’t need to be overhauled in one go.

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Pick one part of the process that frustrates you or takes too long. Clean it up. Standardise it. See how much smoother it becomes. Then move on to the next bit.

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This isn’t about building a new service from scratch. It’s about reclaiming time, delivering with confidence, and creating space to have better client conversations.

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When that happens, personal tax becomes more than admin. It becomes advice. And advice? That’s where the margin is.

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So—where could you reclaim 30 minutes this month to make your tax work smoother, faster, or more valuable? Try Tax Torch free.

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In our latest AI webinar, we were joined by Billie McLoughlin from 2020 Innovation to talk about a topic most firms are quietly struggling with: where to start with AI.

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Not how it works. Not where it’s going. But how to get moving—without a specialist, a roadmap, or a six-month implementation plan.

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Here’s what we learned.

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Your clients are already using AI (even if you’re not)

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AI adoption isn’t starting in your firm. It’s starting with your clients.

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As Billie pointed out, “We’re in this weird space now where our clients are using AI before we are. They're using it in their emails, in their searches, in their conversations—and they’re getting confident answers, even when those answers are wrong.”

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It’s fuelling a new wave of inbound questions. Clients are showing up with a version of the answer already formed—and your team now needs to validate, correct, or contradict it.

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The impact on juniors is real

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This shift puts pressure on younger staff.

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“You’ve got new team members trying to answer client questions that sound informed, but are built on totally incorrect assumptions,” Billie said. “It knocks their confidence.”

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That’s why firms need internal tools that surface accurate answers fast—so juniors don’t feel like they’re guessing, and seniors aren’t dragged into every conversation.

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Most firms are stuck in the middle

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According to Billie, most firms aren’t ignoring AI—but they’re also not doing much with it.

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“You’ve got firms who are dead against it. You’ve got firms all in. But most are in this awkward space in the middle. They’re open to it, but they don’t know where to begin.”

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That hesitation is understandable. There’s a sense that if you’re not using AI at scale, it’s not worth doing at all.

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But Billie was clear: “Start with the small stuff. Get a win on the board. That’s where it begins.”

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Easy wins are the way in

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So what’s a good starting point?

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“Note-takers,” said Billie. “Honestly, one of the first things I recommend is trying something like Fathom. It’s a quick win. You use it once in a team meeting, and the team sees the benefit straight away. That’s when the culture shift starts.”

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Small pilots matter. Billie recommends starting with one client, then three, then six. It’s a safe way to build confidence without overcommitting.

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Clients want advice—but send nothing

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One of the biggest tensions AI could help solve?

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“Clients want proactive advice. But they don’t send any data,” said Billie. “It’s like they think we’ve got a magic mirror.”

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That contradiction—high expectations, zero prep—leaves firms reactive and burnt out. The solution isn’t more chasing. It’s designing tools and workflows that bring the right data in early, and help teams model options quickly.

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Planning now beats panic later

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The goal isn’t full automation. It’s confidence.

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“Tax is moving so fast. Even product roadmaps from three months ago are out of date,” Billie noted. “If you wait until everything’s perfect, you’ll miss what’s useful now.”

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Instead, she says, firms should pick a single use case and start experimenting. Whether it’s comparing salary/dividend splits or testing a pension strategy, the point is to stop relying on spreadsheets and start showing the impact clearly.

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“Clients want to see the difference. If you can show it—live, in a meeting—that’s where they feel the value.”

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AI isn’t the answer. But it’s a better way to ask the question.

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AI won’t replace your tax knowledge. But it can close the gap between what clients expect and what your team can deliver—quickly, clearly, and confidently.

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Start small. Stay curious. And let your team experiment.

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🧠 Want to try AI in one real scenario?

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Start with one client. 

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When you think of personal tax planning, what comes to mind?

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If you answered ‘self-assessments’ or ‘tax returns’, you’re right, but that’s barely scratching the surface (although for many firms, that’s the extent of their personal tax services). 

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If your firm is in a similar spot, you could be missing an opportunity to set yourself apart by providing the personalised, proactive tax planning that other firms don’t.

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In this article, you’ll learn the differences between basic personal tax services and proactive tax planning, how to find the right clients that need proactive tax planning, and how to deliver it at scale. 

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Because isn’t it time your firm went beyond the box-ticking of compliance?

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Basic personal tax services vs. Proactive tax planning

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Before jumping into the benefits of proactive tax planning, let’s look at the differences between basic personal tax services and proactive tax planning first.

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When we say basic personal tax services, we’re talking about things like:

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• Filing self-assessment returns
• Calculating tax liabilities
• Meeting compliance deadlines

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Basic personal tax services are reactive and usually bound by legally mandated deadlines based on historical dates, such as 31 January, and failure to meet those deadlines can result in late penalties.

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On the other hand, proactive tax planning involves:

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• Aligning taxes with client goals
• Exploring long-term tax scenarios
• Proactively optimising tax strategies

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As you can see, proactive tax planning is more complex and in-depth, and unlike basic personal tax services, it’s not based on deadlines. Instead, proactive tax planning is based on current data and future projections.

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In other words, the difference between basic personal tax services and proactive tax planning is the difference between following the rules versus planning for the future. It’s also why proactive tax planning is more complex — you have to account for factors like the client’s goals and their business performance.

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4 clients who’d benefit most from proactive tax planning

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Not everyone needs proactive tax planning. Those with relatively simple tax situations like PAYE employees and people who earn below their Personal Allowance likely won’t benefit much.

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But if you’re wondering who needs proactive tax planning services, here are four types of clients to look for…

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1. Clients with complex tax situations 

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This type of client typically has multiple income streams, which can include a mix of employment, dividends, savings, property, and other income. These clients are generally high-earners looking for ways to minimise their tax burden and avoid higher tax brackets. 

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For example, a client with a high-earning day job in the UK who also freelances, has investments and savings would likely see a lot of value in your proactive tax planning services.

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2. Clients experiencing major life changes 

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Proactive tax planning requires getting to know clients on a deeper, more personal level because major life changes and milestones can have huge tax implications.

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This includes events like:

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• Buying or selling property
• Starting a new business
• Get investments for their current business
• Early retirement
• Switching careers
• Receiving an inheritance or large gift
• Getting married or starting a family

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That’s why the best tax planners have periodic check-ins with clients throughout the year to stay updated on what’s going on in their lives — it’s what puts the ‘proactive’ in ‘proactive tax planning’. Waiting until the last minute (or only meeting clients once a year) risks limiting the effectiveness of your tax planning services.

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3. Clients with long-term financial goals 

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Proactive tax planning is all about planning for the future, so clients with long-term financial goals are ideal candidates for these types of services. Whether they’re saving up for retirement, planning for their kid’s higher education, or building a financial safety net, you can help them achieve these goals.

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Other long-term goals include wealth transfer planning (like inheritance or gifts) and future-proofing their assets — all of which can be aided with proactive tax planning.

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4. Clients frustrated by basic services

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Sometimes, it’s the clients who want more because they’re frustrated with the basic personal tax services provided by their firm. They’re looking for a relationship that goes beyond the once-a-year meetings and actually want advice to help them lessen their future tax liabilities. 

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These can often be the clients who are surprised by their tax bill and start asking questions, why wasn’t I aware it be this much? what should we have done differently?  Do I need another accountant?

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This type of client is looking for a proactive, personalised approach and they will even leave their current firm if they feel like they aren’t doing enough. So if any of your clients start asking about future planning, financial goal setting, or tailored strategies, it’s a good sign that they’re looking for proactive tax planning.

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Why so many firms miss these tax planning opportunities

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There are many reasons why firms miss out on these tax planning opportunities. Sometimes, they’re overly focused on their compliance services, to the point where they’re too bogged down to do anything else.  Staff aren’t going to be concerned with planning if they’re constantly firefighting compliance work just to keep things moving.

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Firms might also lack the training, knowledge, or tools to properly integrate their clients’ goals into their tax strategies.

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You’d also be surprised by how many clients aren’t even aware of what proactive tax planning is in the first place, and some firms lack the will or resources to educate them on the benefits, or they’re afraid clients won’t see the value in it even if they try.

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Lastly, some firms are put off by proactive tax planning because they think it’s too complex and time consuming, or they’ve gotten too comfortable (or complacent) with their current service offerings. 

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Due to its personalised nature, tax planning can also be more difficult to scale, so this reluctance is understandable, but many firms underestimate the revenue potential of these services and the high-value opportunities proactive tax planning can bring in. 

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Clients are becoming more and more aware and demanding, firms who don’t offer these services will be left behind for the ones that do.

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How to offer proactive tax planning

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So let’s say you’re completely convinced that a new proactive tax planning service line is the best move for your firm. How would you go about selling it to clients? 

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Here are a few tips:

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• Proactively engage clients: Initiate conversations about goals before the Self-Assessment deadlines (for best results, do this early and then schedule quarterly check-ins throughout the year).
• Build goal-centric frameworks: Use tax planning tools like Tax Torch to track client goals and align tax strategies with evolving client needs.
• Invest in scenario planning: Explore potential tax impacts of life events and decisions.
• Educate Clients: Position tax planning as a service that delivers long-term value.

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Go beyond compliance with proactive tax planning

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Proactive tax planning is a golden opportunity for firms and clients alike, delivering unmatched value while deepening the client relationship at the same time.

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Tools like Tax Torch make proactive tax planning more accessible than ever. With its built-in centralised goal tracking, salary vs. dividend calculator, and scenario planning, Tax Torch allows practices of all sizes to offer tax planning services to large portions of their client base at a low cost. 

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Think about your own clients — how many of them could benefit from proactive tax planning?

Make proactive tax planning truly personal. Be the first to use Tax Torch.

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How to use three simple steps to turn personal tax planning into real client value

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Introduction: Personal tax isn’t just a number game

Let’s face it—most clients only think about personal tax when they get the HMRC reminder or the bill arrives.

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And most accountants? We’re stuck reacting to that, not shaping it. But it doesn’t have to be that way.

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In this post, we’ll walk you through the three-step approach to turn personal tax planning into something proactive, practical, and actually valuable to clients. It’s not about being a tax genius. It’s about using the right structure and asking better questions.

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Let’s dive in.

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Step 1: Understand the full picture, starting with the goals

You’d be surprised how many tax plans start with a calculator and not a conversation.

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Before you even start calculating any numbers, you need to understand what the client wants. Not just what their income is.

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Are they planning on buying a new home next year? Take a year off? Start a new business?  Get Investment?

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Tax planning isn’t about minimising tax for the sake of it. It’s about aligning someone’s income and tax position to the life they actually want. That means:

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• Asking about their goals (like “buying a house in 12 months”)

• Understanding business context (are there enough reserves to even take dividends?  Does the business have cash reserves? Is the business profitable?)

• Spotting overlooked details (like student loans or director’s loan balances)

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Think of it like a “triangle”—Goals (life, business, and financial), personal income and business s—to shape every personal tax conversation. Without it, you’re just guessing.

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Step 2: Map out their current reality

We’ve all been there. A client says they earn £70k. So you start planning based on that…

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…but then they mention a rental property, or a consulting gig, or child benefit, or a student loan. And suddenly your “optimal” salary/dividend split isn’t optimal at all.

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That’s why we always gather the actual income breakdown first, not halfway through the process. This includes:

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• checking for other income streams (employment, dividends, sole trade, property etc.)

• reviewing benefits (P11Ds, company cars, health cover)

• confirming things like marriage allowance, student loans, pension contributions, child benefit etc.

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You also need to understand how the business is performing:

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• Are there retained profits?

• What’s the director’s loan balance?

• Can they afford to take a dividend?  Have they already taken a dividend?

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The number one thing that trips people up in personal tax planning? Not knowing the starting point.

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Step 3: Run the numbers with the client

Once you’ve got the goals and the real income data, then it’s time to model the options.

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This is where our team uses Tax Torch.

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Instead of sending multiple spreadsheets and a wall of numbers, I jump on a call and show them live:

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• how much tax they’ll pay at different income levels

• the impact of making a pension contribution

• what happens if they go over the £100k threshold or any other threshold

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Want to keep your personal allowance? Let’s look at a scenario where the income is £100,000

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Want to reduce the child benefit clawback? Let’s look at dividends or model a pension payment and see the effect instantly.

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Want to show the difference between personal and company pension contributions? One click.

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What will the income looks like in future years?   Going down, maybe we could defer some income until next year?  Going up, maybe we should maximise lower bands this year?

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And most importantly—this isn’t a one-off. I do this quarterly. Because goals change. Business performance shifts. And plans should flex with them.  Doing it this way also means the compliance work is a by-product of the ongoing planning - no more Dec/Jan blues.

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Show, don’t tell

Here’s the thing—your client might already be doing £12,570 salary and the rest in dividends, and that MAY be the best for their situation

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But have you shown them the value of that?

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We’ve sat down with new clients, run their existing setup through Tax Torch, and shown:

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“This structure is saving you £9,000 compared to if you took it all as salary.”

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They’re stunned. Because no one ever told them that.

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We do this stuff all the time, but unless we can demonstrate the value, clients don’t see it—and they definitely won’t pay for it.

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Flip-side if you’re showing the value of the work, you’re understanding them and their business more and identifying mutually beneficial opportunities, while saving them a lot in tax, how much is this worth to each client?  £25/£49/£99 per month as an ongoing tax planning service?

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Have  better conversations with your clients

You don’t need to be a tax specialist—just a clear structure and the right tools.

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Start with goals. Understand the full picture. Show real options.

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And if you’re using a spreadsheet with 15 hidden tabs to do it which continually needs updated?

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It might be time for a better way.

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So here’s the real question: what’s stopping you from trying this with your next client?

If you want to see how our process works in practice, grab a free trial of Tax Torch and try it on one real scenario. You’ll be surprised how much simpler—and more valuable—tax planning can be.

👉 www.taxtorch.com

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Tax Torch, a new cloud-based personal tax planning tool, is here to help accounting firms eliminate the stress and inefficiency of traditional personal tax planning. Developed by chartered accountant and founder Robert Davidson, Tax Torch solves common challenges like outdated spreadsheets, version control issues, and manual tax calculations—allowing firms to offer proactive, scalable personal tax services that deliver real value to clients.

Why personal tax planning is often overlooked

Personal tax planning frequently gets deprioritised due to its complexity and the lack of effective tools. Without the right systems in place, firms face common pain points such as:

• No easy way to capture and store clients' financial goals, which are critical for tailoring advice
• Over-reliance on manual spreadsheets, calculations, and data entry
• Outdated tax rates that require frequent manual updates
• Endless versioning of documents and inconsistent information
• Disconnected teams preparing compliance independently
• Annual December/January bottlenecks due to last-minute tax submissions

These challenges lead to missed opportunities, turning tax planning into a reactive process. With the right approach, it can instead become a profitable service that strengthens client relationships and helps clients secure their financial future.

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How Tax Torch makes personal tax planning simpler and scalable

Tax Torch directly addresses the pain points of personal tax planning by automating repetitive tasks, easily assessing client data, and enabling accountants to offer proactive, tailored tax advice.

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Here’s how Tax Torch solves key challenges:

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Tailored, proactive advice with Scenario Planning

Easily compare different tax scenarios like salary vs. dividend and identify the most tax-efficient options for clients. With real-time data and built-in models, you no longer need to manually create or test different outcomes—Tax Torch does it automatically. Ask AI can suggest strategies based on the client’s current financial situation, providing additional context for informed decision-making.

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Capture and store personal client goals with ease

Collect and centralise key client information—such as income, financial, business and life goals—all within Tax Torch. This eliminates the need to sift through spreadsheets and emails, ensuring that personalised advice is always backed by accurate data.

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Ask AI: Get instant answers and guidance

With Ask AI, accountants can quickly get answers to complex tax-related questions without interrupting their workflow. Whether you need to clarify tax rules, explore optimal scenarios, or identify the best course of action for a client, Ask AI provides on-the-spot guidance, saving hours of research and reducing errors.

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Automated calculations and version control

Tax Torch automatically handles calculations, updates tax rates, and maintains version control, so firms don’t have to worry about manual updates or inconsistencies. This helps minimise errors and duplication while keeping everything streamlined.

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Real-time tax rate updates

Outdated tax rates can result in costly mistakes. Tax Torch automatically updates tax rates and regulations, ensuring your advice is based on current data—without the need for manual adjustments.

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Streamlined workflows for scaling services

By automating routine tasks and integrating data collection, Tax Torch enables firms to offer personal tax planning services to more clients without overloading their staff. This creates sustainable growth opportunities while improving efficiency.

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See Tax Torch in action

With the product launch happening this month, firms can explore how Tax Torch simplifies bespoke personal tax planning and transforms it into a profitable service. From automating manual tasks to providing on-the-spot advice with Ask AI, Tax Torch equips accountants to become trusted tax advisors delivering real results.

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About Tax Torch

Tax Torch is a cloud-based personal tax planning solution designed to help accounting firms deliver tailored, proactive tax advice. By combining an individual’s personal income, financial, business and life goals, Tax Torch simplifies complex tax scenarios, reduces manual work, and helps firms create measurable value for clients. 

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With built-in tools like Scenario Planning and Ask AI, accountants can work smarter and offer more personalised advice very quickly. It’s personal tax planning—made simple. Start your free trial today.

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How do you identify which clients would benefit most from personal tax planning?

It’s a common question for many accountants, and the answer isn’t always immediately obvious. But the thing is, personal tax planning isn’t one-size-fits-all, which can make finding clients for personal tax planning tricky.

However, certain traits can help you identify whether a client would benefit from personal tax planning or not. In this blog, you’ll learn about the different client types who are ideal for personalised tax services and the tell-tale signs to watch out for.

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Why client selection matters

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Choosing the right clients from the outset can save you lots of second-guessing later on. Not only that, but your early client selection wins can help you build momentum until finally, colleagues from across your firm start noticing your successes and get interested in personal tax planning themselves because your first few clients can serve as real-life examples of the many benefits of personal tax planning, such as:

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• Improved client understanding and satisfaction
• Increased client value and tax savings
• Increased profit for the firm (if charging as a service) and more advisory opportunities like retirement planning, financial planning, and estate planning
• Better client retention and more collaborative partnerships

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As your personal tax services evolve, you can help clients establish better tax processes to save them even more time which also makes it easier for you as you can standardize certain workflows and processes and apply them to other clients, too. 

And now that you know the benefits, here’s how to identify those clients…

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7 traits of ideal clients for personal tax planning

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Here are 7 tell-tale signs a client would benefit from personalised tax planning services.

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1. Clients with more than 1 income stream

Many clients have multiple sources of income, which creates more complex tax situations than someone with only a standard 9 to 5. 

For example, one client could be a salaried employee who also freelances on the side while earning significant dividends from their investment portfolio, while another client could be supplementing their pension with self-employment and property income.

No matter their specific combination of income streams, any client with more than one is a potential candidate for personal tax planning.

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2. Clients who regularly make tax-related decisions

This type of client often faces decisions with major tax implications, such as salary vs. dividend choices, expense deductions and pension contributions, and how to structure (or restructure) their businesses. 

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3. Clients with fluctuating incomes or significant one-off events

Many types of clients fall under this category of fluctuating incomes. Some examples include:

• Freelancers who sign large, short-term contracts
• Artists and creatives who depend on royalties or licensing deals
• Real estate agents who depend on a handful of big sales per year
• Seasonal businesses that make the bulk of their sales during the winter holiday
• Influencers whose income can fluctuate very quickly depending on the success of their content

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4. Clients with their own businesses

This includes not only clients with their own businesses but clients who have shares in other businesses as well. 

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Some areas personal tax planning can help them with include planning investment income, dividends, and pensions contibutions.

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5. Clients who prioritise minimising tax liabilities 

One of the biggest selling points of personal tax planning for clients is minimising their tax liabilities with an ongoing tax strategy. This usually requires accountants to have periodic check-ins with clients throughout the year to stay updated on their lives — both professional and personal — and take a more active, advisory role as well.

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6. Clients who want a personalised service and be more involved in financial decisions 

This type of client may be driven by a desire to learn more about their finances and would appreciate a closer relationship with their accountants that goes beyond the once-a-year self-assessment filings.

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It might be due to them wanting advice on launching a new venture, changing careers, or achieving personal milestones like buying a house.

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Whatever the reason, these types of clients have the potential to build a long-lasting relationship with you as their trusted financial advisor. 

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7. Clients with entrepreneurial ambitions

These are the clients with big dreams, a vision, or ambitious goals they’ve set for themselves and they need an accountant who’s flexible and able to adapt to rapid change.

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4 red flags that clients aren’t a good fit for personal tax planning

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Now that you have a better idea of the types of clients who could benefit most from personal tax planning, let’s take a look at the opposite side — clients who won’t benefit and/or may not be a good fit (at least for now).

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This includes:

1. Employment-only clients

These clients only have their employment income without any other income streams, businesses, investments, or anything else. With a relatively straightforward tax situation, personal tax planning services wouldn’t really make sense for them and they would probably benefit most from more basic tax services like help filing their self-assessments (if required) or goal planning.

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2. Compliance-only clients 

This type of client only cares about fulfilling their tax obligations, such as filing on time and accurately with minimal interaction with the HRMC (and probably zero interaction if they can help it!). They prioritise simplicity and convenience, and want an accountant who makes doing their taxes as cost-efficient and easy as possible for the minimum possible cost.

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3. Clients with stable and predictable income 

Clients whose income is already stable and predictable are less likely to benefit from personal tax planning because they already know what to expect and have probably been handling their taxes for years.  Although, understanding the clients’ goals can present additional opportunities to assist the client.

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4. Clients who don’t have time / don’t want to share their goals 

These clients don’t have any interest in sharing or planning toward their financial goals and prefer to keep their accountants at a distance. That means they wouldn’t be onboard for the multiple check-ins throughout the year that personal tax planning typically requires.

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How to segment your client base for tax planning opportunities

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Here are a few ways accountants and firms can group their clients to make it easier to find those ideal personal tax planning clients:

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• Salary v Dividends clients
• Sole-trade/Partnerships clients
• Multiple income streams (more complex)
• Income over £100k
• Entrepreneurial clients with big goals
• Other - clients who don’t fall into the main groups

Larger firms might also want to segment clients by office or by client manager.

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Note: Each client segment will have different scenario planning requirements and can be handled by anyone from junior to senior members of staff, depending on their situation and needs.

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Example of an ideal client for personal tax planning

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Imagine a client with salary and dividend income plus rental properties making £200k per year. 

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If you’re looking for personal tax planning clients, this client should set off an alert in your mind because they already meet several criteria that indicate they would benefit from advanced tax services as this hypothetical client: 

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• Has more than one income stream
• Faces regular tax-related decisions (i.e. their salary and dividend income)
• Makes more than  £100k per year

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This client would likely benefit from scenario planning, as an accountant could help them optimise their tax strategies across their different income streams while also minimising the client’s tax liabilities.

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Other important client considerations for personal tax planning

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Personal tax planning goes beyond just taxes because each and every client has their own goals, hopes, and dreams that must be considered. That means you’ll also get to know your clients on a deeper, more personal level as well, which is great for building lasting relationships and boosting client retention.

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And even if a client might not benefit from tax planning now, that doesn’t mean it will be like that forever. In a few years, their current situation could change, or they might achieve certain life or career milestones that turn them into ideal personal tax planning clients, which includes things like:

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• Wanting to retire in 5-10 years
• Buying a house in 2-3 years
• Tripling their income next year
• Losing a big client and a chunk of income next year
• Selling their current business in 2-3 years and starting another

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How to use Tax Torch for personal tax planning

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Tax Torch helps make personal tax planning easier for accountants, firms, and clients. 

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If you’re just getting started using Tax Torch’s tax planning capabilities, here are a few tips to ensure you’re off to the right start from your first steps:

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1. Start small with 1-2 clients
2. Meet with clients (or send a simple information request via the platform) to get a better understanding of their personal, business, and financial goals and track them with Tax Torch’s centralised goals feature 
3. Run scenarios using Tax Torch’s scenario planning tool to demonstrate the impact of any changes on the client’s tax position
4. Use Tax Torch’s visual reporting capabilities to create visually appealing reports that underline the value of your tax planning advice
5. Expand based on client feedback and ideal outcomes

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What to expect from Tax Torch

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Tax Torch is a helpful tool that enables firms to deliver scalable, bespoke tax advice with features that simplify the tax planning process for accountants and firms. While Tax Torch isn’t an instant solution, it will make personal tax planning easier with better onboarding and processes, and reporting that demonstrates the true value of personal tax planning to clients. Start your free trial today.

The challenge: Personal tax planning at scale

Accountants and bookkeepers know the struggle of managing personal tax planning. It’s often slow, manual, and, let’s be honest, a bit of a headache. Many firms still rely on spreadsheets, leading to inefficiencies, errors, and missed opportunities.

Enter Tax Torch—a tool built by accountants, for accountants. After four years of development, countless iterations, and real-world testing, founder Robert Davidson BA FCCA has launched a solution that helps firms deliver bespoke tax planning at scale.

But why was it necessary? And how does it actually work? Let’s dive in.

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Compliance vs planning: Understanding the difference

In accountancy, compliance is mandatory. Planning, however, is optional—but that’s where the real opportunities lie.

As Robert puts it, "A lot of firms don't even offer personal tax planning as a service, or they only provide it for a select few clients." The reason? Traditional tax planning methods are slow, complex, and require a high level of expertise.

But here’s the thing: compliance is a race to the bottom. With automation and software driving costs down, firms need to differentiate their services to stay competitive. Tax planning is one of the best ways to do that.

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The benefits of tax planning

When done right, tax planning moves the needle forward. Instead of scrambling to complete tax returns in January, firms can shift their focus to proactive planning throughout the year. The result? A smoother process, better client relationships, and ultimately, increased revenue.

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Why traditional tax planning methods don’t work

So, why can’t firms simply use spreadsheets and manual processes?

Robert’s seen it all: 200 different versions of the same template floating around, formulas breaking, and incorrect tax calculations slipping through the cracks. "There’s a high risk of error, and clients end up getting the wrong advice," he explains.

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Here’s the problem:

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Spreadsheets aren’t scalable – they get messy and unmanageable.

They lack visibility – tax planning notes sit in emails or meeting notes and never get revisited.

Client goals are overlooked – tax planning should be about the client’s long-term financial aspirations, not just numbers on a sheet.

There’s no collaboration – if a tax advisor and accountant aren’t sharing insights, opportunities are missed.

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The solution: How tax torch transforms tax planning

A tool designed for efficiency

Tax Torch is built to solve these problems. It provides a central location to track goals, monitor income streams, request information, and plan for current and future tax years—all in one place.

The software moves firms away from the last-minute tax return rush and instead enables real-time planning. “Let’s plan in the current year so that compliance becomes a tick-box exercise,” Robert explains.

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Key features accountants love

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Goal tracking – Understand what clients really want. Whether it's buying property, expanding a business, or early retirement, Tax Torch helps identify tax-saving opportunities.

Scenario planning – Compare different tax strategies and find the most efficient solution for clients.

Salary vs. dividend calculator – Quickly calculate the best mix for clients, taking into account pensions, corporation tax rates, and personal allowances.

AI-powered insights – Junior team members can instantly find answers to tax questions, making tax planning accessible to all levels of the firm.

Client collaboration – Clients can input their own data, reducing back-and-forth email requests.

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The numbers speak for themselves

During the webinar, a poll found that 86% of attendees still use spreadsheets or manual processes for tax planning. That’s a huge inefficiency.

With Tax Torch, firms can save clients thousands in tax while creating an additional revenue stream for their own business. Robert explains, "If you can show a client a £4,000 saving and charge them £50 a month for tax planning, it becomes a no-brainer."

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What’s next for firms?

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Firms using Tax Torch can expect to:

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Save time by eliminating repetitive, manual processes.

Improve accuracy with a structured, automated system.

Increase client satisfaction by providing proactive planning rather than reactive compliance.

Generate new revenue streams by offering tax planning as a premium service.

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With integrations on the horizon and continued improvements based on user feedback, Tax Torch is set to become a game-changer for firms looking to modernise their tax planning services.

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Ready to step up your tax planning game?

How is your firm currently handling personal tax planning? Are you still stuck in spreadsheets, or are you ready to explore a smarter, more efficient way? Start your free trial.

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Let’s be honest. Personal tax planning has long had a bit of a branding issue in accounting firms. It's often bundled in with compliance, delivered last-minute, and rarely charged for in a way that reflects its true value. But what if it didn’t have to be that way?

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That’s exactly what we tackled in a recent webinar. With over 20 years of accounting experience we shared the real-life journey of building a fully remote, cloud-based practice and how that led to the creation of a scalable, tech-driven approach to personal tax planning.

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So, what is personal tax planning, really?

It's all about being proactive. It’s not about looking backwards and filing returns from last year. Instead, accountants can be  asking, "What can we do this year? How do we get our client to their ideal outcome?"

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Being proactive in personal tax planning goes deeper than compliance by tapping into the personal goals of your client:their financial hopes, lifestyle ambitions, business objectives. And then once you have that, you can build a strategic tax plan around those things. Tax planning, becomes a vehicle to help clients get what they really want out of life.

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Burying the myths

There are plenty of myths that keep firms from diving into personal tax planning:

• "It’s only for the wealthy"
• "It takes too much time"
• "Clients don’t want it or won’t pay for it"

But thanks to tech, the barriers to entry have plummeted. What once took a tax partner hours to work through manually can now be done by a junior in minutes.

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And when firms actually ask their clients if they want proactive support to save on tax, guess what? They say yes. Especially when the value is communicated well. It’s all in the framing: "We want to help you reach your goals and save you thousands in tax" lands far better than "Fancy paying another £40 a month?"

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Building deeper client relationships

Personal tax planning is about creating space for meaningful conversations that in turn save your clients more money and help them plan for the future.

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Clients open up more when you meet regularly, when you ask what they want from their life and business, and when they know you’re invested in their success. That trust leads to:

• Earlier insight into big plans (like buying property or starting a new venture)
• More opportunities to add value
• Higher client retention, even as their financial needs evolve

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In my own firm, we front-load this work before 5th April, reducing the dreaded January bottleneck. By July or August, most returns are ready to go. No panic. No chasing. Just smooth, efficient workflows.

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Turning planning into profit

For instance, if your pricing model charges £240 per year for a personal tax return, you could layer on an additional £40/month for proactive personal tax planning. That could mean an extra £48,000 annually from your existing 100 clients—without needing to find 200 new ones.

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And it’s not just about revenue. It's about showing value. When you tell a client to take a £12,570 salary and the rest in dividends, you might save them over £9,000 – but if you don’t tell them, they don’t see the value. Tax Torch helps you demonstrate that clearly.

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Scaling with tech (and ditching spreadsheets)

One of the biggest blockers? Spreadsheets.

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I talked about the spreadsheet sprawl. Everyone saves their own version, formulas break, updates get missed. It’s messy.

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Tax Torch, on the other hand, provides a clean, structured system. It:

• Gathers client goals
• Tracks planning progress
• Visualises tax scenarios
• Calculates optimal salary/dividend splits
• Shows savings in black and white

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You can even link experts to client goals, like financial planners, internally or externally. And the AI integration helps tailor conversations based on client-specific data – not just generic advice.

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Who owns personal tax planning?

Another biggie I raised: ownership.

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Does it sit with the tax team? The accounts team? Everyone says "not me!"

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In truth, someone has to own it. Otherwise, nothing changes. And let’s face it – accountants already have the relationships. They just need the structure, support and systems to do something with it.

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The bottom line

Personal tax planning is a high-value service. When framed properly, priced confidently, and delivered with tech that makes it easy, it's a no-brainer.

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Personal tax planning could be your next big win—one that grows revenue, deepens relationships and delivers measurable results. Now is the perfect time to explore the opportunity already within your existing client base.

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So, what’s stopping you from making personal tax planning your next big win?

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