It’s that time again. Daffodils are blooming, the days are getting longer and Cheltenham Races are not far around the corner (maybe it’s just us who are concerned with that one).

It’s also the end/ start of the tax year and with that comes all the usual allowance resets.

This year has been a rather more unusual year for many people in their financial planning decisions.

Some have been impacted horrendously with closed businesses and/ or being furloughed, whilst others have still earned the same amount as usual but have had their expenses drastically cut simply by being unable to spend.

Whichever end of that spectrum you are on, it’s worth considering if any actions should be taken whilst we come into the tax year end.

These are just a few of the areas you should be thinking about:

Pension Contributions

An old favourite that may be a target for the chancellor. Tax relief at 40% or 45% is rumoured to be a target (again), but one thing is for sure – it’s not going to go up! Use it or lose it; and the same goes for any previous unused allowances. Both can be extremely tax effective.

ISA Contributions

£20,000 per year per person tax-free. No tax ever on any gains, income, dividend or anything. Simple, easy and the best cornerstone for every investment portfolio.

CGT Allowance

The first £12,300 of capital gains are tax-free. Cannot be re-invested in same fund for 30 days, but can be moved into other assets. Very cost-effective way of reducing any taxes in the future.

For entrepreneurs and business owners

Making an employer pension contribution has a double benefit. The first is it is the cleanest, tax-free way to get money from your company to your personal account. The second is the payment is seen as a justifiable business expense and therefore you get corporate tax relief on it as well.

Wills

And finally, one from maybe left field, but so important. Do you have a will and is it fit-for-purpose? You would not believe the number of people who don’t have up-to-date wills. It’s not for you, you won’t be around anymore – but I promise it makes a massive difference to your loved ones who have to do all the extra hard work with no will in place. Just get one done – please.

If you want to discuss any of these points with one of our qualified advisers who have been in your shoes, please get in touch.