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Are you a high net worth individual, otherwise known as an HNWI? The qualifying criteria change according to which source you consult, but according to HMRC, it's anyone with assets worth £10 million or above.
However, there is no official, definitive boundary in the UK to determine who should use this term, and this makes it difficult to know to whom it applies.At Auditox Accountancy, we take the view that anyone with a six-figure income or with net assets or disposable wealth exceeding £1 million (excluding your pension or property value) is an HNWI.
When you have accumulated or inherited a large amount of wealth, it's essential to seek sound, professional advice to maximise your assets, keep control of your financial affairs and protect your wealth from being eroded by paying too much tax.
While being rich obviously has huge benefits, few people - even those with wealth - realise the challenges involved. One of these challenges is keeping track of exactly how much money you have in assets and cash. And if you don't know how much you have, you won't know whether you're paying the right amount of tax. You also won't be aware when
Hiring a specialist accountant for high net worth individuals will help you to keep track of your financial situation and ensure that you only pay the required amount of tax. You could also benefit from sound investment advice to make better use of your money.
When you hire an Auditox accountant for high net worth individuals, you get access to our full range of wealth management services. While they're not independent financial advisers, they will help you with wealth planning and investments, offer tax advice, and deal with all accounting issues.
Take a closer look, with this brief overview of what an Auditox accountant for high net worth individuals can do for you.
Tax issues are one of the biggest headaches for individuals of high net worth. While you understand that tax has to be paid, you want to avoid paying too much, but you don't want to fall foul of HMRC rules.
Income tax planning is extremely important for anyone earning over £150k per year, as the tax rate (currently) is 45%. With our help, you can legitimately reduce your tax liabilities.
Your Auditox accountant acts as your own personal tax manager, offering advice in the following areas:
All of these tax strategies will make you more tax efficient, helping you to keep more of your money without contravening HMRC rules.
Whether you have inherited it or are still building wealth, you need to consider how you use it, as this can affect the amount of tax you pay in certain areas, such as stamp duty and capital gains tax.
We will advise you on the sale of assets and the structure of any purchases to maximise your money and avoid excessive tax.
You need to give some thought to what will happen to your estate when you are no longer here.
The current rate of inheritance tax is 40% on a threshold of £325k, including property, money and possessions. We will advise you on the best way to avoid paying an excessive amount of inheritance tax and ensure that the majority of your estate is passed to the next generation.
Most high net worth individuals invest in stocks and shares or property, although it's wise to expand this to include other options; diversification is essential.
We will advise you on the best investment opportunities, such as private equity, government bonds, mutual funds, art or gold.
A typical breakdown of investment for an HNWI is as follows:
However, this will change depending on the current economic climate and financial advice at the time.
We've touched on a few of the issues facing individuals of high net worth here, and it's clear that there's a lot to consider!
Whether the money was inherited or earned through a business venture, you now have the responsibility of staying compliant with HMRC rules and regulations and protecting these funds for future generations.
If you're confident that you have everything in hand, that's great. But most people in this position find that managing all of these issues is time-consuming, complex, and a chore they could do without.
An Auditox accountant will take all of the hard work out of the picture, leaving you to enjoy your wealth.
Auditox accountants are trained to help people in all kinds of industries deal with payroll, pensions, bookkeeping and taxation issues.
This broad knowledge and experience enables them to assist private clients in their tax affairs, accounting and investments. In addition, they will act with integrity and professionalism at all times, protecting your privacy as well as your assets.
When you're ready to talk about how Auditox can help you maximise and protect your finances, give us a call, and we'll prepare a plan that works for you.
An accountant specialised in high net-worth individuals often plays a crucial role in estate planning. They can help optimise estate tax liabilities, ensure the efficient transfer of assets to heirs, and assist in setting up trusts and foundations as required.
A specialised accountant helps high net-worth individuals to develop a tailored investment strategy that aligns with their financial goals and risk tolerance. They may also offer advice on asset diversification, portfolio rebalancing, and capital gains tax implications.
Yes, having offshore accounts is legal but they must be declared to HMRC for tax purposes. Specialised accountants assist in managing offshore accounts by ensuring compliance with international tax laws, reporting requirements, and helping to optimise tax benefits.
Accountants for high net-worth individuals can advise on the tax implications of charitable giving and help structure philanthropic activities in a tax-efficient manner. They can also assist in setting up charitable foundations or trusts and ensuring compliance with charity law.
An accountant specialised in high net-worth individuals often plays a crucial role in estate planning. They can help optimise estate tax liabilities, ensure the efficient transfer of assets to heirs, and assist in setting up trusts and foundations as required.
A specialised accountant helps high net-worth individuals to develop a tailored investment strategy that aligns with their financial goals and risk tolerance. They may also offer advice on asset diversification, portfolio rebalancing, and capital gains tax implications.
Yes, having offshore accounts is legal but they must be declared to HMRC for tax purposes. Specialised accountants assist in managing offshore accounts by ensuring compliance with international tax laws, reporting requirements, and helping to optimise tax benefits.
Accountants for high net-worth individuals can advise on the tax implications of charitable giving and help structure philanthropic activities in a tax-efficient manner. They can also assist in setting up charitable foundations or trusts and ensuring compliance with charity law.