Tax year end planning - don't leave it until the last minute
- AuthorTrey Vella
Around this time every year, I see the same rush from clients to make last minute arrangements in order to utilise any remaining tax reliefs and allowances by the end of the tax year.
The tax year runs from 6 April to 5 April every year, and is the annual accounting period used by the government to calculate taxes and organise finances.
With 5 April fast approaching, I always ask my clients, why lose out on valuable tax incentives that the government is offering? Especially when the majority can’t be carried forward tax year to tax year, and legislation can change at the drop of a hat. It’s worth exploring what’s available, in good time before the end of the tax year, to make sure you’re maximising your allowances.
Some of the main tax planning opportunities that I provide advice on, and you should be considering, are:-
- Individual Savings Account (ISA) Allowance, Cash and/or Stocks & Shares - £20,000
- Junior ISA’s/Child Trust Funds – maximum contribution of £4,260 per child
- Lifetime ISA’s - £4,000 (this forms part of your £20,000 ISA Allowance)
- Capital Gain’s Tax Allowance - £11,700
- Pension Annual Allowance – up to £40,000 depending on income
- Income Tax Personal Allowance - £11,850
- Dividend Allowance - £2,000
- Personal Savings Allowance – up to £1,000 depending on income
Some people forget how important it is to make the most of the reliefs available to them and to make sure that their money is working for them as tax efficiently as possible.
If you would like to discuss what to do as we approach the end of the tax year, or have any questions regarding any of the reliefs and allowances available to you, I offer a free initial consultation. Please contact me on 01206 217309 or please email me on email@example.com. I am available at our Colchester, Chelmsford or Basildon offices.