Four Golden Rules of Investment
The UK economy is beginning to show signs of picking up and represents a good time for companies to invest. Emerging markets mean that stocks and shares are low and a good time to buy, and once they begin to mature investment companies can make a tidy profit. However, there are rules to investing in other companies that you should know about including tax implications.
The first rule is to build a reasonable size stock of shares. Investing small sums will not give you much by way of a notable return that you can later use to expand your company. A good sized portfolio of at least 30 shares in any one company will outperform anything a bank will return.
The second rule is to get online and kit yourself out with a stock pricing tool. There are several available, but will give you significant information you need when dabbling in the stock market such as real time share prices, tracking your portfolio, news and opinion. All useful info to help you make informed decision of when to buy and when to sell – and the services are free.
Don´t forget tax liabilities
Returns on investments could impact your tax return so it is a good idea to seek advice from qualified chartered accountants. They will be able to offer you advice as to whether the investment you intend to make is a sound decision and how your investment will affect your tax liabilities. Some investments can be deducted from your end of year tax return whereas profits may require you to pay more. Tax-free ISA´s for example allow you to make a steady profit albeit not always a substantial return. A qualified accountant will outline the risks of investments and also help you file your Self Assessment Tax Return.
The fourth and final rule is to invest in shares for the long-term. Therefore look for opportunities with companies that are most likely to grow in the next three or four years. Slow growth will earn you more gains over the long-term than if you go in for quick wins. Stock market investing is a great way to save for retirement and over time you will become more skilled at it and work out where you will make the most profits.
For more information about investing in stocks and shares speak to a friendly member of the Taxaccolega, a low fixed fee accountant in London, who will be willing to offer you advice and assistance in relation to tax implications. Taxaccolega is a qualified team of chartered accountants and specialize in advising businesses and individuals in money matters.
We are also experts in drafting business plans and giving you all round strategically advice together with help and assistance with managing your accounts. HMRC is cracking down on businesses that are avoiding tax liabilities and will issue a fine if you do not declare investments. To make sure you do not fall foul of the taxman, call Taxaccolega today on 08000 235 234 or email us at firstname.lastname@example.org.