With tax reliefs and allowances constantly changing, it is essential to ensure that you are taking full advantage of them.
High inflation, freezes on allowances and tax bands, and cuts to CGT and dividend allowances mean you could be feeling the pinch more than ever. You can find our complete guide here, but here are our top 10 tips for tax year-end planning to help you make savings.
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Maximise tax relief on pension saving. Additional and higher-rate taxpayers should consider contributing to their pension to maximise tax relief at 40% or 45%. Those with sufficient earnings can use carry forward to make contributions in excess of the current annual allowance. High earners who are losing their personal allowance can potentially reinstate it and get 60% tax relief.
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For high earners, making a pension contribution before the tax year’s end could increase their annual allowance. If you exceed the adjusted income limit, using carry forward could reinstate your full £60,000 allowance.
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Boost your pension savings before triggering the Money Purchase Annual Allowance (MPAA) to retain your full £60,000 allowance. If you need income, consider other ways of meeting that need, such as taking money from ISA savings or bonds.
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Consider sacrificing your bonus for an employer pension contribution to benefit from the employer and employee NI savings made.
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Business owners should consider taking profits as pension contributions to save on Corporation Tax while benefitting from pension contributions.
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Claim tax relief for charitable donations made in the tax year.
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Maximise your ISA allowance for tax-free savings.
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Ensure you are taking advantage of capital gains tax allowances and exemptions.
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Consider using your annual gift allowance to reduce your inheritance tax liability.
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Use your personal savings allowance to save tax on interest earned on your savings.
By following these tips, you can make the most of the tax reliefs and allowances available to you and save some money.
