I think it would be fair to say that we all look forward to lots of things over the course of the year. For me, I love the start of the year as it means the Six Nations is just around the corner! And we all look forward to celebrating Christmas and Birthdays with our loved ones. I bet, however, that not many of us look forward to the new tax year!
That said, I believe it really is worth bearing in mind when the new tax year starts and what that means to you. But before we get to the new tax year in April, we need to make sure we aren’t letting the current tax year get away from us. Each tax year we are given several tax free allowances from the government, so why not make the most of them?
For instance, in the current (19/20) tax year you can save up to £20,000.00 into an Individual Savings Account (ISA). ISAs are not only an excellent way of saving money; they are also the ideal vehicle to invest your savings as any gains are free of Capital Gains Tax and Income Tax.
You also have an Annual Allowance for your pension contributions. Pensions have long been a haven for tax planning, especially if you’re self-employed or the director of a limited company. The tax advantages regarding pension contributions don’t stop there though. Are you stung by the Child Benefit Tax trap? A pension contribution can help. Have you lost your entitlement to the Personal Allowance? A pension contribution can help.
So, before time runs out on this tax year it might be a good idea to explore what options are available to you. That said, we know this can very confusing, but that is where we come in. We have a team of highly experienced and friendly advisers that would be able to guide you through this often complex subject. If you would like to arrange a FREE initial meeting, please contact our office on 01778 342291.