When talking tax with clients, she says she tries to break it down as much as possible. “There’s nothing worse than sitting in a meeting and you can almost see the tumble weed rolling from the table because people just look bewildered.”
She says she prepares a report, showing what she has done and why and what the rules were at the time, as well as what to be aware of.
“What I like is that they at least understand the principles and the gist of it to understand why we are doing it and what the outcome is. To understand the real ins and outs of it, that’s my job.”
When it comes to often forgotten tax reliefs, she says “it’s always surprising how many people don’t understand Isas".
Alongside wills, small gift allowances, and transfer of income between spouses, Isas are one of the most overlooked tax perk, she adds.
“It’s the basics really, it’s looking at using rates and allowances properly, so everyone’s got their personal allowance, it’s surprising how many people don’t use it in full, particularly where you’ve got portfolios and spouses that don’t necessarily equalise their income.”
Stakeholder pensions for children are another “really neat” planning tool, Aitchison notes. These can be funded up to £2,880 a year and the government tops that up to £3,600. If invested over the years this can add up to substantial sums.
“I’ve got clients in their early teens now, their pensions pots are about £150,000. And even better, they can’t touch it until they’re reaching retirement."
Since Aitchison started her professional career in 2005 a lot has changed, and not just tax policy, she says.
“There is a bit of a sea change in the sorts of clients we are seeing. It’s far more entrepreneurial now, we’re seeing much younger clients. To a certain extent the days of turning up in a pinstripe suit and referring to each other as Mr and Mrs so-and-so [have gone].
“That relationship with clients has changed a little bit. It’s almost like taking advice from a peer. And it’s exciting because it’s such a vast array of different businesses to talk to people about.
“That’s the bit I love about it, is that every client is different and every solution we come up with is bespoke.”
carmen.reichman@ft.com
