This is usually the busiest financial month of the year for both us and our clients. There is an endless rush to make sure that each and every one of you has made use of all possible allowances. Otherwise, you may pay more tax than is necessary.
Here are some of the actions you should be considering:
- Have you made a stocks and shares ISA contribution, and has your partner taken similar action?
- Have you checked that you have not oversubscribed? It is very easy to do this, particularly if you are making regular contributions to an ISA and then top up at the end of the financial year. Make sure you get the maths right, otherwise the top-up may not be allowed.
- If you have withdrawn capital from a flexible ISA, you are allowed to replace it before the end of the tax year without losing the annual allowance. This is a valuable exemption, so please do not lose it.
- If you run your own business, you may be considering making an employer pension contribution. Remember this must be done before the end of your trading year, not the financial year, if it is to count by reducing the profit in the company. This is particularly pertinent for those with a company year end of 31 March.
- If you are employed, you may wish to make a pension contribution before the end of the tax year. In this case, make sure you are sticking to the very complicated rules on maximum allowable contributions, particularly if you are a high earner. We are happy to give advice on these matters.
- The payment of Capital Gains Tax on investment transactions is now more prevalent since the reduction in the CGT allowance. Please check your portfolios. You may not want to make a gain, but consider making a loss which you will be able to carry forward against gains in future years.
Good luck with your end-of-year financial planning!