Insights and Updates on Tax Planning and Beyond

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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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.

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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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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If your firm focuses on compliance, you could be missing out because tax planning as a service is brimming with untapped potential. Many firms don’t see it because they think planning can’t scale, or that it’s too complex, or it takes too long. 

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That might have been true five years ago. Now, we have tools that will help you tap into tax planning’s potential and turn it into a scalable new service that grows your firm and your client relationships, too. 

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Done right, tax planning is so much more than an add-on. To truly maximise client value, it’s a must-have that will have clients sticking around longer and saving more money — and that’s a win-win for everyone.

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How tax planning creates new revenue opportunities for your firm

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Don’t underestimate the revenue potential of adding tax planning as a service line. It’s a great way to generate recurring fees and it can be a reliable source of cash flow during the slower months.

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With proactive tax planning services, you can offer a monthly subscription that balances the feast-or-famine of compliance, where income peaks during tax season. 

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And that monthly subscription also means you’re checking in with clients more often, which helps build rapport and a sense that you’re working towards a shared goal. 

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Additionally, it gives clients a chance to let you in on what’s going on in their lives, allowing you to advise them through the tax implications of major milestones and life events as they happen. And once you have a relationship like that, you’ll never want to go back to when clients just emailed their info at the end of the year and expected you to handle their compliance and tax planning at the same time.

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Back in the day, when everything had to be done manually, it made sense for firms to focus on one or the other. But those days are long gone. 

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Now, you can have it both ways.

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£ and time-saving benefits for firms and clients

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Instead of waiting for that once-a-year call that comes every tax season, firms should be proactive about scheduling regular check-ins with clients. We recommend having quarterly check-ins with clients but you can always adjust the schedule to their needs.

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Communication is everything in tax planning and these check-ins are a chance to get to know your clients better. And the better you know them, the more personalised your advice and the more money your clients save. 

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So don’t be afraid to ask clients about their financial goals and where they see themselves in five years because, as their accountant, you can help them get there.

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It’s also an opportunity to catch up on milestones and major events in your client’s life like buying a house, starting a family, or retirement planning — all of which have tax implications you can help them plan for, too.

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Retain clients by meeting their growing needs

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Offering personalised tax planning is a chance to go far beyond the limited scope of compliance and really get to know your clients instead. Done right, it will make clients stick around for the long run.

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As clients grow, using the right tools can help you scale with them, which ensures your firm keeps up. However, the best ways to keep clients happy are to keep saving them money and keep helping them reach their financial goals.

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A proactive approach is essential to retaining clients, too. They want a tax firm with a plan, so when they achieve their goals, show them how you’re already planning for the next ones.

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Tips on pricing tax planning services

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Pricing is one of the most common challenges for any new service, tax planning included, so let’s take a look at 3 proven pricing strategies:

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1. Value-based pricing

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The value-based pricing model charges clients based on the savings or opportunities (i.e. the value) you brought to the client. 

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For example, let’s say you helped a client save thousands of pounds on their inheritance tax. That’s worthy of a premium fee, and there are several ways you could calculate it, such as a flat service fee or a percentage of what you saved them. 

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2. Fixed fee pricing

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Clients appreciate fixed fee pricing because it’s transparent, upfront, and predictable. Ideally, you would charge a set monthly fee per client based on the level of service provided and monthly fees are great for firms because it provides a reliable source of income throughout the year.

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3. Bundled pricing

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Bundled pricing is where things get interesting as you can create broad advisory packages and then categorise them into different pricing tiers to make it easier to upsell clients.

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Let clients compare the bundles side-by-side and position each one as an integral part of your value proposition to clients, and let them choose the one that best suits their needs. 

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If you want to provide clients with more customisation options, consider offering a variety of bundles such as tax planning, business advisory, and financial forecasting, and then letting them pick the bundles they want. 

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The tools make the difference

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Let’s explore how using a tool like Tax Torch helps firms effortlessly scale their tax planning services to keep clients happy.

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Goal tracking and scoring, all in one place

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Tax Torch’s Centralised Goals feature makes gathering and tracking client goals easy. With your client’s personal, business, and financial goals all in one convenient place, firms can track goals, stay organised, and deliver the personalised advice clients need to reach those goals.

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Centralised Goals is one of Tax Torch’s many features that helps firms upsell tax planning as a distinct service with bespoke advice that saves client money. 

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Engage and wow clients with visual reporting

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When reporting to clients, it’s not enough to just show them the data. To truly engage them, firms have to build a narrative and bring the data to life. 

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Tax Torch’s Visual Reporting does just that, giving firms the ability to quickly create visually appealing, client-friendly reports that clearly outline everything from performance results to new tax-saving opportunities.

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The numbers don’t lie, and the Visual Reporting will makes it easier to show ROI and justify why tax planning is worth it.

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Show the untapped potential with scenario planning

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The proactive approach of tax planning sometimes makes it hard to show clients its benefits since the steps you take now won’t pay off until later.

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Tax Torch, with its built-in Scenario Planning tool, makes it easy to model different tax planning strategies to give clients a better idea of its untapped potential, which helps firms justify higher fees as well.

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Using Tax Torch’s Salary vs. Dividend Calculator, firms are able to show and compare the tax implications of different income structures (such as taking a salary vs. taking dividends vs. a combo of both), which can help clients optimise their tax position. It also removes the guesswork by using real data, which builds client confidence in your tax planning strategies.

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The Scenario Planning and Salary vs. Dividend features, in addition to the Centralised Goals and Visual Reporting that TaxTorch offers, can help your firm offer broader advisory packages that further enhance the value proposition of your firm.

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Scale your tax planning services with Tax Torch

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Tax planning is no longer an optional add-on. These days, it’s essential for any firm looking to stay ahead and stand out in an increasingly competitive market.

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Tax Torch can help! With out-of-box features like Centralised Goals, Scenario Planning, Visual Reporting, and Salary vs. Dividend Calculator, Tax Torch can transform and scale how your firm gives personalised, tax planning advice. 

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See for yourself. Join the waitlist and make tax planning easier with Tax Torch.

In the rush to meet the tax deadline, personal tax planning often gets left by the wayside year after year, despite the best intentions of many accountants and clients. 

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Accountants know personal tax planning is important but many clients don’t understand how it can save them money in the long run. 

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Either that or they don’t have the time for the regular communication it requires because they avoid their accountant like they avoid the dentist. 

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(Which could explain why getting all the information you need from clients to truly personalise their tax planning sometimes feels like pulling teeth…)

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In this article, you’ll get a proactive tax planning workflow that will not only help clients save money, but also ensure you’re on the same page when it comes to expectations, goals, and regularly keeping in touch throughout the year.

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The importance of a year-round tax planning workflow

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Having a structured, year-round approach to personal tax planning isn’t just a dream that accountants wistfully tell themselves could happen someday. With a little preparation, you could make it a reality, if not this year then next year, for sure.

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Just keep in mind the single most important thing for successful, year-round tax planning — regular communication with clients. Because, like any relationship, it all hinges on communication and the benefits of keeping those channels open are immeasurable.

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With regular client communication, you’ll be able to:

• Respond to regulatory changes as they happen to maximise tax savings 
• File on time or early instead of the last-minute stress of meeting deadlines
• Improve client satisfaction and retention as your firm plays a more collaborative role in your client’s success

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Key dates for client check-ins

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In addition to regular communication, another critical aspect is creating a schedule for those regular check-ins. Of course, this schedule doesn’t have to be set in stone. 

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In fact, it’s best to have some degree of flexibility to ensure you can still reach out if there’s something pressing or time-sensitive. 

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That being said, setting specific dates will increase the chance that the meetings will actually happen (barring any last-minute rescheduling, of course). 

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Basically, it’s the difference between saying, “We should hang out sometime,” versus, “Are you free on 1 February at noon?”

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For best results, schedule your client check-ins around key dates throughout the tax year and other client milestones/life events to get in front of any changes that could impact your client’s personal tax planning. 

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Here are a few dates you already plan around:

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Another date to watch out for is the Budget Speech — usually held once a year in either March or Autumn — because it contains important updates and changes. 

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But what if you could add more milestones in between?

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Quarterly check-ins: Timing and topics to talk about

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Planning quarterly check-ins is a great way to stay in touch with clients throughout the year and most clients will be familiar with it since many companies plan quarterly as well. 

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These check-ins will help ensure your tax planning strategy remains aligned not only with the client’s needs but with their current situation as well.

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Quarter 1 (Jan-Mar): Final planning and adjustments for current tax year

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With the end of the tax year coming up on 5 April, the Quarter 1 check-in is focused on ensuring the client’s final tax position is as expected, in addition to incorporating any last adjustments for the current year. 

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This check-in is also a chance for accountants and clients to review financial goals along with any life events or milestones that could impact their taxes such as pensions, investments, or property purchases. 

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Quarter 2 (Apr-Jun): File the previous year’s return and review the income and expectations for the current year

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For your Quarter 2 check-in, schedule it after the tax year ends on 5 April and ask your client to gather all the backup information for the year that just ended (i.e. the previous year) prior to your meeting. 

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💡Get the client’s income documents such as their P60, dividend vouchers and bank interest statements, as well as their investment details, allowable expenses, charitable donations, and other sources of income. 

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Armed with that information, you’ll be able to prepare their tax return, review it with them, and then, finally, submit the return to the HMRC.

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Once the previous year’s return is taken care of, you’ll want to evaluate the client’s initial income in the current year. 

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Make sure to discuss their future expectations and whether anything has changed since the initial planning, as well.

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Quarter 3 (Jul-Sep): Mid-year projection, adjustments, and goals 

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The main focus of your Quarter 3 check-in is conducting a mid-year income tax projection to identify any necessary adjustments to your client’s tax planning strategy. 

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You’ll also want to review the estimated tax bill with the client.

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The Q3 check-in is also a great opportunity to revisit the client’s goals and ask for updates on life events and milestones. 

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💡Discuss if any of their priorities have changed and whether any plans need to be pushed further into the future.

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Quarter 4 (Oct-Dec): Income and expenses compared to the plan

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In your Q4 check-in, focus on year-end planning by reviewing your client’s deductions and the timing for their tax payments. 

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It’s also a good time to look at what their income and tax bill will be on 5 April, and compare it to the mid-year projection from your Q3 check-in to see if there are any changes.

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💡Encourage the client to begin collecting the relevant documents and provide a checklist of what you’ll need based on the situation as you understand it. 

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Discussing life events and milestones: The ups and the downs

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We briefly touched on discussing important life events and milestones with clients because of the potential impacts on tax planning. 

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Of course, this includes celebratory events such as getting a new job, getting married, buying or selling a house, and having kids, but those aren’t the only life events that can affect tax planning.

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There’s also the opposite side of things, which includes losing a job, getting divorced, and a death or illness in the family. 

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While these conversations may be harder to have, it’s still important for accountants to know so they can maximise the client’s tax strategy. 

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It just requires a bit more tact and empathy for the clients who are dealing with these situations.

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Life is constantly changing, and these events and milestones are all opportunities for accountants to offer personalised advice that aligns with the client’s evolving needs, a client may receive an unexpected inheritance and plans change dramatically. 

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It can also be a springboard for accountants to use their internal or external network to advise on related issues such as estate planning, capital gains, and other income-shifting strategies.

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Communication is everything in personal tax planning

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Having a structured workflow with quarterly check-ins helps strengthen client relationships and even positions accountants in a more collaborative role, where you’re both working together to optimise the client’s tax strategy.  

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It makes sense to do these alongside quarterly planning for the business(es) because they are so intrinsically linked.

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For instance… 

• If the business is performing well: Can the client extract more?
• If it’s performing poorly, are dividends even an option?
• What about cash flow and reserve?
• Directors loan balances?

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These all have to be taken into account to do proper personal tax planning.

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In the long run, year-round tax planning increases client satisfaction, retention, and even positive word of mouth once clients realise its true value.

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The results are clear. Waiting until the last minute often leads to missed opportunities for tax savings, endless stress, and a higher risk of errors. 

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Whereas a year-round approach to tax planning gives accountants the time they need to provide effective and truly tailored advice while also enabling them to quickly adapt to any changes (in the client’s life or regulatory environment) as they happen. 

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Plus, removing that December/January bottleneck and panic is just an added bonus.

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The better you know your clients, the better your advice. Join the waitlist and deliver the truly personalised tax advice your clients deserve.

When your clients think about accounting, taxes are usually one of the first things that come to mind.

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But there are two critical aspects of taxes — tax planning and tax compliance — and they have different goals that require different approaches. Failure to differentiate between tax planning and compliance can open up a number of risks.

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In this article, we’ll explore the differences between tax planning and compliance, the risks of not differentiating them, and why incorporating both approaches is the best of both worlds.

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Tax planning vs. compliance: What’s the difference?

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The fundamental difference between tax planning and compliance? Tax planning is proactive whereas tax compliance is reactive. Essentially, it’s the difference between planning for the future (tax planning) vs. complying with the rules (tax compliance). 

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Here are two more differences between planning and compliance:

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1. Different data and documentation requirements

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When it comes to data and documentation requirements, the differences between tax compliance and tax planning are night and day. 

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For tax compliance, there are strict requirements for precise, up-to-date financial records with legal and financial consequences for not doing so. 

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Tax planning, on the other hand, is more relaxed because it lacks the legal obligations of compliance. Instead, it often depends on the firm’s and client’s preferences and situation. As planning also takes a broader view that includes projections and goal-setting, it is more subjective, open to interpretation, and less cut-and-dry compared to compliance.

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2. Timing 

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Timing is another factor to consider. Tax compliance is more immediate and deadline-driven. For example, missing the 31 January filing deadline automatically makes you non-compliant and subject to late fees and other financial penalties.

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Meanwhile, tax planning lacks the urgency of hard deadlines, which means planning can be timed around the client’s broader financial cycle. Many firms will periodically check in with clients, especially if they have an advisory role in their client’s financial strategies, to review reports, discuss business performance, and track progress against the client’s goals.

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Two reasons for clear boundaries between tax planning and compliance

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Failing to distinguish between planning and compliance can be risky for firms in several ways, including:

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1. Mismatched expectations

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Sometimes, the only thing clients care about is filing their returns on time, emphasising compliance over planning, which means they could end up paying more taxes in the future when they could have saved money instead. 

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Or it could be the reverse, where the client wants to maximise their tax savings, prioritising planning over compliance, which can lead to missed deadlines or mistake-riddled filings.

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To avoid these misalignments, it’s best to set expectations with clearly defined services from the start. If you only do tax planning, make sure to spell it out, whether it’s on your website, social media, or in person. Taxes are all about the specifics, so firms should be specific about what they do or else it could backfire, which can lead to unhappy clients and bad word of mouth.

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2. Ethical and legal issues

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A primary goal of tax planning is saving money on taxes but, when taken to the extreme, clients can risk brushing up against the limits of the law. 

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Or, in other words, if a client is singularly focused on getting away with as much as they possibly can, then they shouldn’t be surprised if it’s hard to find a firm to work with or if the HMRC comes knocking. For accountants, it’s not worth the risk of the government coming along and finding those bent rules were actually broken.

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There have been many cases over the years where accountants have recommended schemes or advised clients based on their, usually incorrect, interpretation of the rules.  We’ve seen this many times come back to bite accountants and their clients, usually resulting in reputational damage for the accountant and many unhappy and out-of-pocket clients.

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What happens if you’re non-compliant?

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Normally, being non-compliant results in financial penalties like late fees, interest on unpaid taxes, and additional fines. If financial penalties don’t work, there are also legal consequences, including investigations, lawsuits, and even criminal charges.

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Beyond the financial and legal consequences, non-compliance can also cause reputational harm to businesses if it becomes news. 

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What happens if you skip tax planning?

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When it comes to tax planning, there aren’t really any major consequences for clients if they don’t do it or continually push it off — at least legally speaking. But the major downsides of not tax planning include potentially paying more taxes than necessary and also making tax season more stressful for accountants if it’s left until the last minute.

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But, more importantly, all clients have hopes, dreams and goals for the future — and if tax planning isn’t done, their tax bill is set in stone and very likely won’t be efficient or match their goals.  From the accountant’s point of view, they may very well miss opportunities to be their client’s tax-saving hero or their goal achiever but they also may miss out on substantial fee-generating opportunities for the practice.

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The benefits of a hybrid approach

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Incorporating both approaches in your tax strategy often yields the best client outcomes and leads to a better relationship. By using both approaches, firms can help clients on multiple fronts, addressing their immediate needs while balancing those needs with their long-term goals. 

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Not only does this build trust but it also positions the firm as a valuable advisor and expert collaborator who cares about the client’s financial success.

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Tax compliance & tax planning: Two sides of the same coin

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Tax compliance and tax planning are integral pieces of any successful tax strategy. While tax compliance is mandatory and must be adhered to no matter what, tax planning is about optimising your tax position to suit your own very bespoke situation.

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Firms that offer both tax compliance and tax planning services can offer greater value to clients, especially if those two aspects are combined in an overarching strategy, as it’s an effective way to develop rapport with clients and create meaningful, long-term relationships that last.

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Join the waitlist to make tax planning easier.

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If you were asked how well you know your clients’ goals—whether it’s their life, business, or financial goals—what would you say?

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If you struggled to answer, don’t fret because you’re not alone. Many firms frequently overlook (or even miss) the importance of client goals in tax planning. It’s actually a big gap in the tax planning process, and it isn’t helped by the fact that tax planning is all too often left until the last minute, which means client goal-setting is usually rushed—if it’s even done at all.

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But skipping out on client goal-setting impacts both firms and clients because it results in less effective and less personalised tax advice. 

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In this article, we’ll help you jump on this opportunity to get to know your clients and their goals better so you can deliver tailored tax advice and better client outcomes.

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Missed Opportunities: 3 Reasons Why Client Goals Get Ignored in Tax Planning

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Skipping goals is not only bad for clients (who are often left with generic advice that doesn’t address their needs in a meaningful way), but it’s also bad for firms because this can lead to dissatisfied clients and (potentially) damaged relationships. 

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In the worst cases, ignoring client goals can even impact retention if unsatisfied clients look elsewhere for the personalised tax planning they need.

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At this point, you might be wondering, ‘Why is it so common for firms to overlook client goals?’. Well, there are many contributing factors to why it happens, so let’s go through a few of the most common reasons why.

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1. Procrastination aka the Last Minute Rush

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Everyone knows that getting their taxes done early can save mountains of stress come tax season. Nevertheless, that didn’t stop the near 800,000 taxpayers who waited to file until the very last day, and a shocking 33,000 of them waited until the final hour—talk about suspense!

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Even worse is the 1.1 million people who missed the deadline entirely and all the additional stress and late fees that entails. But why must we keep doing this to ourselves? It’s the same 31 January deadline every year, after all. 

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Because in the panicked rush to get those last-minute taxes finished on time, client goals and goal-setting get sacrificed due to a lack of time or energy, which means clients miss out on opportunities for tax savings and other efficiencies.

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It’s a vicious cycle but it’s possible to break out of it with a proactive approach that encourages tax planning throughout the year.

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2. Taxes are Seen as a Burden, Not an Opportunity

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Most people see taxes as a burden or obligation and therefore put off doing them for as long as they possibly can. This mindset not only feeds into the procrastination we just discussed, but framing tax planning in this way also sets a negative tone from the start, which only compounds the issue.

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As accountants, don’t underestimate your ability to set the tone when it comes to taxes and goal-setting, either. If you approach it as a chance to get to know your clients, save them money, and build trust, it can completely change the vibe from being a burden or necessary evil to a collaborative opportunity where you’re working towards common goals. 

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Done right, it might even help your firm expand from a mere service provider to a more proactive, advisory role or even strategic partner.

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3. Tax Planning is Too Complex

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Tax planning can be complicated as regulations change all the time, and many clients have been conditioned to only care about compliance instead of seeing tax planning as an opportunity to develop a tailored tax strategy based on their goals.

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Additionally, many small businesses owners have a tendency to think of tax planning as only something for the major corporations or the ultra wealthy. They may not even be aware of how goal-setting can help fuel a tax planning strategy that helps them minimise their tax burden—and it’s up to you to show them otherwise.

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Also, the way that we do taxes also encourages more short-term thinking on a year-by-year basis, and it can be easy to get so focused on maximising the short term that we miss out on long-term opportunities and other benefits further down the road. 

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That’s why goal-setting can be so effective—it can help shift client perspectives toward the long-term and set them up for success for years to come.

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Capturing Client Goals with TaxTorch

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Now that we know why client goals get ignored so often, let’s talk about how Tax Torch takes the headache out of goal-based tax planning.

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Tax Torch was built to tackle the most persistent problems head-on, starting with client goals, by providing a centralised platform that tracks your clients’ life, business, and financial goals in one easily accessible place. That way, you’re able to gather, organise, and incorporate client goals into tax planning from the get-go.

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Not only does this increase the visibility of your clients goals across the firm, it helps to ensure your team and other stakeholders are aligned while also providing a place where people can easily view and update those goals as needed

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Here’s how it works:

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1. Gathering Client Goals 

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Tax Torch’s built-in goals tracker makes capturing client goals easy, which means no more wasted time sifting through emails, searching for client records, or chasing other team members for information because everything you need is right at your fingertips.

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2. Integrating Goals into Tax Planning

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Now that you’ve gathered your client goals and organised them in Tax Torch, let’s look at how you can integrate them into your client’s tax planning strategy.

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For example, if your client is a sole-trader with 6 figure income and their goal is minimising taxes, you could discuss incorporating their business to manage when they receive their income personally to take advantage of lower rates.

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In another example, if the client has a limited company with the same goal of minimising taxes, you could look at a mix of salary and dividends to reduce Income Tax and National Insurance Contributions. You could also discuss timing the dividends across several years to avoid hitting a higher tax bracket if this aligns with the client’s goals.

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Start Delivering the Personalised Tax Planning Your Clients Deserve

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Delivering personalised tax planning is one of the best ways to keep clients happy while maintaining a great relationship. Every client, no matter how big or small, appreciates the personal touch and focus that comes from tailored tax advice.

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Not only will you enhance client trust, but you might even be able to assume a more proactive, advisory role as a strategic partner in your client’s financial success. 

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Discover how to deliver bespoke personal tax planning without the headaches. Join the waiting list today and see for yourself how Tax Torch’s proactive approach makes tax season easier for everyone.

Have you ever waited until the last minute to file your tax returns?

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Last year, approximately 1.1 million people missed the tax deadline, according to the HRMC — no doubt causing untold stress for their accountants. And every year, countless firms tell themselves ‘never again’, only to have history repeat itself. 

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It’s a vicious cycle but it doesn’t have to be this way because reactive, last-minute tax planning isn’t good for anyone. It’s stressful, creates countless bottlenecks (good luck if you have to contact the HRMC), and ultimately, it leads to worse outcomes for clients.

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In this article, we’ll show you how to flip the script from reactive to proactive tax planning with a forward-thinking approach so everyone can breathe a bit easier next time tax season rolls around.

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Why proactive tax planning matters

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Many accountants have experienced the perils of last minute tax planning first-hand, so let’s hone in on what you can expect from a proactivei tax planning approach.

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1. Maximise deductions and credits

Being rushed and stressed out can make tax planning harder than it needs to be. It increases the risk of missing something critical, especially if your team is juggling multiple client returns at the same time. 

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This can result in clients missing out on opportunities to reduce their taxable income, such as a client forgetting to mention their charitable donations or pension contributions and then missing out on that deduction.

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Proactive tax planning avoids these situations and gives your firm the time to optimise your clients’ tax benefits. When you’re not rushing to meet a deadline, you can ensure nothing gets missed throughout the year as everything gets updated and reported as it happens. 

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An added bonus — by the time tax season comes, you’ve already completed much of the legwork and submitted a large portion of the returns, hopefully leading to a less stressful festive period. 

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2. Greater flexibility and better decision-making

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Starting tax planning earlier helps you keep an eye on your client’s financial situation throughout the year, which makes it easier to identify what’s working while having the flexibility to adapt to opportunities, threats, and other changes.  

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Flexibility is important because tax laws change all the time, like when a new government has just been sworn in and there are big budget changes.. But being proactive can help  clients adapt to legislative changes without the added pressure of the deadline looming over your shoulder.

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3. Personalised advice creates closer relationships

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Another benefit of proactive tax planning is it gives firms the opportunity to provide ongoing, personalised tax advice throughout the year, the benefits of which cannot be understated. 

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Giving personalised tax advice helps create a more collaborative working relationship where you and the client feel more like a team with a shared goal, instead of clients simply emailing their tax info and leaving it in your hands.

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Everyone appreciates a personalised approach because it makes them feel valued, and this can deepen the client relationship and even improve retention in the long run. 

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Plus, tax planning throughout the year means you have more time to take a deeper dive into your client’s finances to deliver better advice, instead of the standardised, one-size-fits-all recommendations that you might be forced to give if you’re scrambling at the last minute.

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How Tax Torch streamlines tax planning

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One of the driving inspirations behind Tax Torch was providing a proactive tax planning tool to eliminate the eleventh-hour sprint before the tax deadline. 

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Now that we’ve gone over why a forward-thinking approach is so important, here are a few ways Tax Torch helps firms achieve that while also streamlining the entire tax planning process. 

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1. Centralised client data and goals in one place

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Tax Torch centralises client data within a single platform, which fixes a process that’s often broken or fragmented. What this means for firms is no more: 

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• Scrolling endless email threads for lost attachments
• Double-data requests that annoy clients
• Incomplete forms or inaccurate data
• Disorganised documents with dozens of versions

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In addition to solving these common data headaches, Tax Torch allows you to keep track of your clients’ life, business, and financial goals in one place for easy access and improved performance tracking.

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2. Accurate salary vs. dividend calculations

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Tax Torch’s built-in Salary vs. Dividend Calculator quickly calculates the optimal tax position for clients and helps you provide the best possible advice that is tailored to your client’s specific needs. This helps clients in everything from making better business decisions to reducing their tax burden, while also saving firms the time and complexity of calculating it all manually.

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3. Real-time scenario planning with easy comparisons

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With Tax Torch’s real-time scenario planning, you and clients can explore different tax scenarios and instantly see the impact, which turns the uncertainty of making complex decisions into something more simple and clear.

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This allows clients to feel more confident about not only planning for the future but also the decisions they make by providing a proactive, data-backed basis upon which to build their strategy moving forward. 

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4. Visually appealing, client-friendly reports

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All too often, the big takeaways can get buried deep in a spreadsheet or lost in the pages of a long report that clients never read. This goes to show that even the best data in the world means nothing if your clients don’t see it or can’t understand it.

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That’s why Tax Torch helps accountants and firms create professional, visually appealing reports that quickly get to the heart of the matter so that clients truly understand the value and impact of your tax planning advice.

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5. Scalable for firms of all sizes

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Whether you’re a small/mid-size firm or a large enterprise organisation, Tax Torch can help you quickly scale your tax planning capabilities by bringing together usually scattered information into a streamlined consistent process.  

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Be a proactive tax planning pro

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Even though the end of the tax year is fast approaching, there’s still time to be proactive and get a headstart on things and really add value to your clients and identify fee generating opportunities.! We highly recommend reaching out to clients now to get the ball rolling and begin asking for the important documents you need ahead of time because you’ll be glad you did.

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The best time to start was yesterday, but there’s no better time than now. 

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Discover how to deliver bespoke personal tax planning without the headaches. Join the waiting list today and see for yourself how Tax Torch’s proactive approach makes tax season easier for everyone.