Insights and Updates on Tax Planning and Beyond

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.

Collecting info shouldn’t be as hard as collecting taxes, but with some clients, you just never know. Every firm has that one client (or two, or three…). They might even be a dream client most of the time with one huge exception–whenever you ask them for something, it’s going to take forever.

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Tax season is already stressful enough and if you don’t file in time because the client didn’t send the documents until the last minute–who gets the blame?

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Luckily, there’s a better way. This article will dive deep into the tips and tricks of proactive tax planning that will help you ditch those manual processes, streamline data collection, and make communicating with clients a breeze.

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Communication is key

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You’d be surprised at how many issues could have been resolved (or even prevented) with better communication, whether in your personal or professional life. With your clients, you might have weekly or monthly check-ins and the occasional ad hoc meeting when necessary. 

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But how come client communication is still mostly manual–especially in an era where there seems to be an app for almost everything?

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Usually, it’s an email or a quick message when there’s a status update or you need a particular document from them. And if things are urgent–like you needed their tax return yesterday–you might even give them a call. 

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Regardless of how you stay in touch, client communication will always be an important part of tax planning. But it’s also supposed to be a two-way street, and it’s frustrating if you’re the one who’s always following up because the client missed a message or phone call.

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But, as with most manual processes, it’s inefficient and the potential for misunderstandings abound, especially in text where tone and humour don’t always translate well (which is also what I tell myself when my Slack jokes get met with *crickets*).

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Manual processes: Bottlenecks and headaches

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Have you ever had to frantically sift through thousands of emails, DM’s, and Slack messages looking for that one critical document that your client swears they sent months ago?

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With data coming from so many places these days, it’s harder than ever to track it all–between all the emails, spreadsheets, calls, meeting notes, and audio transcriptions–much less store it in a single place for easy access. 

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For many firms, manual data collection is the norm but it’s a frustrating mess of patchwork processes with documents scattered across the ether. Sometimes, those documents are buried a hundred folders deep in a Shared Drive. Other times, they’re lost in an email chain. 

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And then, there are the documents that can only be found on that one coworker’s computer because they were the only one who downloaded it before the link expired and it was lost forever. All these bottlenecks add up and cause significant time delays, inconsistent data, and frustrating miscommunications.

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Let’s say you’re still not convinced that manual data collection is really that bad. Sometimes, it’s hard to see the forest for the trees. But we’ve spent enough time talking about how client communication is, and now it’s time to show you how it could be.

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How Tax Torch transforms client communication

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Tax Torch was built to make tax planning easy and solve the communication bottlenecks that plague firms during tax season. Here’s how Tax Torch does it:

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1. Centralised data collection

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You can’t underestimate the importance of having the right data at the right time. That’s why Tax Torch stores all client information–whether it’s business performance, financial goals, or major milestones–all in one place.

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Tax planning can be chaotic, but Tax Torch is your single source of truth for all things client-related and ensures that everybody on your team is on the same page.

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2. Real-time scenario planning

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Businesses are always looking to the future and planning their next move. With Tax Torch, scenario planning is made easy as Tax Torch helps you identify uncertainties and run scenarios on how your business could be affected in real-time. 

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In just a few clicks, you can eliminate the hours of manual spreadsheet calculations and slash your risk of error while also safeguarding your business for the future.

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3. Salary vs. Dividend calculator

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Tax Torch’s built-in Salary vs. Dividend Calculator is an effective tax planning tool that helps you quickly calculate the best tax position for clients. Simply fill in a few numbers and in a couple clicks, the calculator will help you find the highest combined savings, so you can provide bespoke tax planning more easily and precisely.

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4. Visual reporting

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Stare at the spreadsheets for long enough and your eyes are bound to glaze over. It happens to the best of us, and it’s one of the biggest reasons businesses need accountants. 

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That’s why visual reporting is your friend. It helps bring the data to life in ways that spreadsheets just can’t live up to because a simple infographic can go a long way in helping clients understand complex tax advice. 

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Tax Torch’s built-in data visualisations make it easy to spice up your reports with graphs, charts, and other visuals to get your point across quickly and make your reports more visually appealing.

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Elevate your tax planning with Tax Torch

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Communication is at the heart of accounting–whether it’s with clients, coworkers, or HMRC–and manual processes are one of the biggest roadblocks to clear communication. These processes, such as an over-reliance on spreadsheets or manual data entry, lead to mistakes, inefficiencies, and missed opportunities. 

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But you shouldn’t have to wait until the last minute, searching old email chains that are littered with unanswered follow-ups, just hoping that the P60 you needed is still attached.

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Taxes don’t have to be that way anymore. Tax Torch was developed to address these communication hurdles head-on with centralised data, real-time scenario planning, and visual reporting to help you leave the days of outdated processes and dirty data behind.

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Are you interested in streamlining your communication and data collection processes for happier clients, more engaged employees, and better tax advice?

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Start your free trial to see how Tax Torch is in action.

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We get it. Tax planning can be a huge headache, especially for small to medium-sized businesses without a dedicated tax team. After all, few things are worse than staring down the barrel of those year-end tax deadlines, feeling anxious and burnt out by the constant bottlenecks (that even make some of us want to grab a bottle of our own come February!). 

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But tax planning is worth it for any business owner who truly wants to be tax efficient–because who doesn’t want to lessen their tax burden and keep more of their hard-earned money? 

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In our experience, some of the biggest obstacles standing in the way of easier, more effective tax planning are entrenched, manual processes that date back to the early 80s–and nothing symbolises that better than the ubiquitous spreadsheet.

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Despite all of our advances in technology, the way we do our taxes remains antiquated, which forces us to manually fill out those spreadsheets as we try and navigate the cells and formulas that can confound even the best of us.

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4 things everyone hates about tax spreadsheets

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Anyone who claims they don’t hate tax spreadsheets is likely lying (or they’ve convinced themselves otherwise by mastering hundreds of obscure shortcuts, formulas, and formatting hacks). 

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You might be surprised how many businesses still run their taxes on spreadsheets–but then again, if you’ve worked in the industry long enough, you’re probably (unfortunately) all too familiar with it! And while spreadsheets are an amazing tool for many purposes, when it comes to taxes, they’re absolute torture.

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At this point, you might feel like spreadsheets are an inescapable part of business, regardless of industry, as many see spreadsheets as a necessary evil that must be accepted because ‘it’s the way it’s always been done’. 

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Still, if you’re like us, you’ve probably found yourself squinting at a spreadsheet until your eyes water as you think to yourself, “There HAS to be a better way”. And you’re not alone, as various studies have shown anywhere from 50 to 90 percent of businesses still rely on spreadsheets for critical functions such as tax planning, budgeting, and reporting.  

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But if spreadsheets are so widely used, then why don’t they work for tax planning? Well, here are four of the most common reasons why spreadsheets and taxes are a match made in hell. (Sidenote: How many of these reasons can you relate to?) 

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1. Spreadsheets are a pain to update

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Tax rates keep changing but those spreadsheets often don’t get updated along with it, either because it falls between the cracks, it’s too complicated, or the spreadsheet is so old that nobody has ownership of it anymore.

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Nobody wants to be ‘that person’ who changes a single cell and then accidentally breaks the entire spreadsheet. Even though “Ctrl + Z” is a thing (or Command + Z for Macbook users), it can be a daunting task to update an old spreadsheet. This is why so many spreadsheets used for tax planning don’t get updated with the latest tax rates every year–which brings us to reason number 2. 

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2. Versioning aka “Final copy.2.0.finalfinal.version” syndrome

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Have you ever been in a situation where there are 200 versions of the same spreadsheet because everyone in the organisation or department made their own version? Then, when it comes to actually doing those taxes, nobody knows which one is the latest version, which can turn into a soul-destroying bottleneck for the unlucky person who has to fix it.

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Double checking and reconciling everything into a single source of truth is a nightmare that we wouldn’t wish on our worst enemies. And that’s not even mentioning the productivity and hours that would be lost fixing it!

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3. Tax planning is complex

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The complexity of tax planning often scales with the size of your practice and after a certain point, relying on a simple spreadsheet and calculator just won’t cut it anymore. Besides, taxes are about more than just the figures because truly effective tax planning must consider the client’s financial goals. 

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Numbers without any context don’t mean much on their own, and considering your client’s goals provides that valuable context and ensures that your calculations are relevant and valuable to the client.  

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4. High risk for human error

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Manual data entry is a menial, repetitive task that requires an extreme attention to detail with huge potential consequences for any mistakes. You can probably imagine how a misplaced decimal or summation error can affect a company’s financials, which then affect its reputation and potentially even its stock price–just look at the UK fashion retailer who lost a third of their market cap due to a spreadsheet error! 

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But the risks of human error go far beyond typos and data entry mistakes as using the wrong formula can have equally devastating effects–not only could it cost your client a lot of money, but you could even lose the client due to bad advice!

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Taxes are a burden but tax planning doesn’t have to be

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Using spreadsheets for tax planning is a common trap for many practices, full of manual calculations and data entry for bespoke personal taxes. While the spreadsheet may have been capable during the early days (or the only tool available at the time), the spreadsheets didn’t grow with the practice and they have now become a significant limiting factor that drains time, resources, and morale.

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Top challenges of manual processes

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• Time-consuming
• Prone to errors and inconsistencies
• Manual updates require constant attention
• Lack of collaboration and visibility across the firm
• Higher risk of missed opportunities for tax optimisation

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The biggest problems with spreadsheets for taxes

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At its basis, spreadsheets are optimised for storing, organising, and analysing data. This means they weren’t designed for tax planning, which requires multiple data sources, scenario planning, and complex, personalised calculations that vary depending on every client. 

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The fact that so many businesses try to use spreadsheets for tax planning is akin to jamming a square peg into a round hole until you force it to stick–with many thinking it’s not a perfect fit but as long as it holds, it’s good enough. But it’s not good enough, not anymore, and it hasn’t been for a long time (if ever).

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The trap here is that spreadsheets can often handle some, or even most, of what you need them to do. But they work just enough that they don’t count as broken, so you don’t have to worry about fixing it. And then next year, it’s simply rinse and repeat.

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Spreadsheets: Most Common Complaints and Pain Points

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• Outdated data: Requires manual updates, leaving room for error.
• Lack of automation: No way to automate repetitive tax tasks or forecasting.
• Lack of visibility: Hard for firms (and their clients) to see the big picture or multiple scenarios at once 
• Increased risk: Human error can lead to costly mistakes or missed opportunities in tax efficiency.

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Enter Tax Torch: A light in a dark tunnel

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As accountants ourselves, we have witnessed first-hand the many frustrations firms and clients have experienced when tax planning and the problems of over-relying on spreadsheets to do it. 

It’s why we created Tax Torch to change the game of tax planning, with special features that address the many problems we just covered. 

Here’s what you can expect from Tax Torch:

• Cloud-based planning:
  • Empowers you to manage the tax planning process from data entry to scenario analysis.
  • Works proactively to keep you current as you plan for the future. 
  • Means no more looking backwards for personal taxes.
• Scenario planning:
  • Allows you to easily model multiple best and worst-case tax scenarios to future-proof your firm.
  • Enables you to tailor tax planning to each client in less time.
• Collaboration:
  • Centralises data in a unified platform to foster collaboration and greater visibility within the business.
  • Ensures accurate, faster results for bespoke personal tax planning.
• Efficiency gains:
  • Reduces the time spent on tax planning, so founders/directors can focus on running the business, not managing spreadsheets.

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Ditch your tax spreadsheets for good with Tax Torch

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With built-in automation, scenario planning, and collaborative tools, Tax Torch makes tax planning easy with greater accuracy, time savings, and the ability to scale.

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Discover how to deliver bespoke personal tax planning without the headaches. Join the waiting list today and be the first to see for yourself just how easy it is to leave the spreadsheets behind!

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