Make money before your tax bill 2020

Now is a great time to turn your attention to your client’s tax liability due 31 January 2020 and how this can be efficiently funded.

People who are aware of large liabilities being created in 2018/19 are well advised to put capital away to make sure their liabilities are met prior to 31 January 2020.

For the astute adviser the process is as follows:

> Determine how much is due

> Decide how long the capital can remain in a high yielding account prior to payment

> Source the best rates available to maximise returns

> Implement the plan

At Dynamic Cash Management we have seen rates improve over 2018 and we can add real value to a situation where clients hold large sums in cash.

For example, a client who has created a £200,000 capital gains liability following the sale of a business. Normally this capital would yield £500* over a 12-month period in an instant access account.

However, by simply placing this capital in a 6-month notice period with Dynamic Cash Management the yield could improve over 6-fold to £3090** (net of fees). Worth the effort, and happy clients.

*Barclays Everyday Saver 0.25% for balances over £50,000
**Dynamic Cash Management published 6-month rate correct on 26 November 2018