Tax liability is the amount of tax that either you or your business are liable to pay, depending on your finances and the applicable tax laws. It is important to have estimation on the amount that you are liable to be taxed, as a prerequisite for effective financial planning. The Tax liability projections are simply the estimation of the amount payable for tax depending on your funds and assets. Income tax is one of the common tax liabilities for a person, but not every income that is received is taxable. In order have an estimation of the taxes that are payable every tax year, it is necessary to know the details or the nature of the income.
PLANNING TAX LIABILITY
One must also take into account that you or your business may be eligible for various tax reliefs and credits. There are various instruments that one can thus make use of to either avoid or defer such tax liabilities which include:
As tax liability projections are calculated using a number of variables which may include your income, income from property, income from investment and capital gains, determining this liability may be a challenging for an individual or business. It is therefore advisable to seek professional assistance, when dealing with such issues.
At The Accountancy Solutions, as experts who stay up to date with any changes in the relevant tax laws and regulations, we offer expert advice and financial guidance for projecting your tax liabilities and are also able to minimizing them legally by taking advantage of the applicable tax reliefs. Our services are available to both individuals and businesses.