The tax year end is nearly here – 5th April. Now is a great time to review your financial and tax position to make sure you have made the most of the legitimate tax planning opportunities available to you.
Here are a few quick things for you to think about:
- Have you made the most of your ISA (Individual Savings Account) Allowance? The limit for 2016/17 is £15,240, next year the limit will increase to £20,000. This gives you tax free growth on your savings.
- Have you taken advantage of your Capital Gains tax allowance £11,100? This is the amount you can make tax-free on the sales of assets – You may decide to sell an asset either before or after the 5th April date if you haven’t used this allowance or defer the sale if you have.
- Earning over £100,000 in a tax year introduces lots of different tax and National Insurance rates, you need to think about how your income can be adjusted to avoid suffering tax at the highest rates (this can be as high as 60% ). For example making a pension contribution or making a donation to charity can reduce your taxable earnings.
- If you own a business there are different ways of getting the money out and maybe paying less in personal taxes and national insurance. It is a good idea to review this with your accountant regularly as the rules change all the time to ensure you are doing this in the most tax efficient manner possible.
- Don’t forget to invest in your pension, there are tax breaks for pension payments, the end of the tax year is a good time to review this.
- Have you made a will? If not, you should and review the assets you hold – this can help with inheritance tax, capital gains tax and even income tax each year
There is still time to take action and if you want any help or advice on any of the above points, just give us a call on 01273 739592 or drop us an email on firstname.lastname@example.org and we would be delighted to help you.