tax-planning-checklist

Tax Planning Checklist Skill

Produces a structured tax planning review framework — identifying common reliefs, year-end planning opportunities, and potential gaps. Always recommend a qualified tax adviser for implementation.

WARNING: Tax law changes frequently and varies by jurisdiction. This checklist produces a framework for discussion, not tax advice. Always verify with a qualified accountant or tax adviser before taking action.

Required Inputs

Ask the user for these if not provided:

• Entity type (individual / sole trader / limited company / partnership / trust)
• Jurisdiction (UK / US / EU / Other — defaults to UK if unspecified)
• Approximate income or revenue (to identify relevant thresholds)
• Key concerns (optional — e.g. capital gains, pension, inheritance, R&D credits)
• Time horizon (year-end planning / ongoing / specific event like sale or exit)

Output Structure

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Tax Planning Checklist — [Entity Type] — [Tax Year / Period]

Jurisdiction: [UK / US / Other]

Entity type: [Individual / Limited company / etc.]

Key thresholds to note: [List relevant tax-year thresholds — e.g. personal allowance, basic rate band, VAT threshold]

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Section 1: Income and Allowances

• [ ] Personal allowance fully utilised? (UK: £12,570 — check if taper applies above £100k income)
• [ ] Dividend allowance used where relevant? (UK: £500 2024/25)
• [ ] Savings interest allowance reviewed?
• [ ] Salary/dividend split optimised for owner-managed companies?
• [ ] Any income timing opportunities before year-end?
• [ ] Spouse or partner allowances — any transfer or use opportunities?

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Section 2: Pension and Retirement

• [ ] Annual pension allowance assessed? (UK: £60,000 or 100% of earnings, whichever lower)
• [ ] Carry forward of unused annual allowances from prior 3 years checked?
• [ ] Company pension contributions reviewed (corporation tax deductible)?
• [ ] Salary sacrifice arrangements in place or reviewed?
• [ ] Lifetime allowance implications assessed? (UK: abolished April 2024 — but transitional protections still relevant for some)

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Section 3: Capital Gains Tax

• [ ] Annual CGT exempt amount used? (UK: £3,000 for 2024/25)
• [ ] Crystallising gains before year-end to use exemption?
• [ ] Loss harvesting opportunities reviewed?
• [ ] Business Asset Disposal Relief (BADR) eligibility checked for business sales?
• [ ] EIS / SEIS investments reviewed for CGT deferral?
• [ ] Bed-and-ISA / bed-and-SIPP opportunities assessed?

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Section 4: Business Reliefs (UK Limited Companies)

• [ ] R&D tax credit eligibility reviewed? (SME scheme vs RDEC depending on size)
• [ ] Capital allowances claimed on qualifying expenditure?
• [ ] Annual Investment Allowance (AIA) utilised? (UK: £1m)
• [ ] Patent Box relief explored for IP-derived profits?
• [ ] Employment Allowance claimed?
• [ ] Entrepreneurs' Relief / BADR reviewed for shareholding structure?
• [ ] Loss reliefs utilised or carried forward optimally?

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Section 5: VAT

• [ ] VAT registration threshold monitored? (UK: £90,000 rolling 12 months)
• [ ] Flat rate scheme vs standard accounting reviewed?
• [ ] Partial exemption position reviewed if relevant?
• [ ] VAT on property or mixed-use assets checked?

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Section 6: Inheritance Tax and Estate Planning

• [ ] Annual gifting allowances used? (UK: £3,000 per person per year)
• [ ] Business property relief and agricultural property relief eligibility?
• [ ] Trust structures reviewed for IHT efficiency?
• [ ] Life insurance written in trust to prevent estate inclusion?
• [ ] Nil rate band and residence nil rate band utilised optimally?

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Section 7: ISAs and Tax-Efficient Wrappers

• [ ] ISA allowance fully subscribed? (UK: £20,000 per person 2024/25)
• [ ] Junior ISAs for children considered?
• [ ] Venture Capital Trusts (VCT) or EIS investments considered for income tax relief?
• [ ] Lifetime ISA (LISA) reviewed for eligible individuals?

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Year-End Action Summary

Based on the above, prioritise these before year-end:

| Action | Potential saving | Deadline | Adviser needed? |

|---|---|---|---|

| [Action] | [£ estimate or "significant"] | [Date] | Yes / No |

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Quality Checks

• [ ] Jurisdiction confirmed before applying any thresholds or rules
• [ ] Year-end deadlines identified for time-sensitive opportunities
• [ ] High-impact items prioritised (not just a long undifferentiated list)
• [ ] Disclaimer is prominent — this is a framework, not tax advice
• [ ] Threshold figures are flagged as requiring verification for current tax year

Anti-Patterns

• [ ] Do not provide specific tax advice — always recommend qualified tax advice and note this prominently
• [ ] Do not present threshold figures as definitive without noting they require verification for the current tax year
• [ ] Do not produce a generic checklist without tailoring it to the entity type (individual, sole trader, limited company)
• [ ] Do not omit timing-critical items — some reliefs require action before year-end and deadlines must be called out
• [ ] Do not conflate UK and non-UK tax rules — clarify jurisdiction before generating any checklist

Example Trigger Phrases

• "Give me a tax planning checklist for [year-end / my situation]"
• "What tax reliefs should I consider as a [sole trader / limited company / individual]?"
• "Review my tax efficiency before the end of the tax year"
• "What should I check for my year-end tax planning?"