With the tax year ending on 5 April, now is the perfect time to review your finances and make sure you’re not paying more tax than necessary.
Here are a few simple ways to reduce your tax bill before the deadline:
• Use your ISA allowance – You can invest up to £20,000 tax-free each year. Any unused allowance is lost after 5 April.
• Top up your pension – Pension contributions can reduce your taxable income and may qualify for tax relief.
• Make use of your dividend allowance – If you have a limited company, consider whether taking dividends before year end makes sense.
• Use your capital gains tax allowance – If you’re planning to sell assets, using your annual exemption can save tax.
• Consider spousal transfers – Transferring assets to a spouse can sometimes reduce overall tax liability.
A quick review now could mean valuable savings later. If you’re unsure what applies to you, get in touch for a tax review today.
Burns & Co Accountants.
www.burns-accountants.co.uk
