The tax year end is rapidly approaching, as a reminder its 5th April.
This is the end of the UK tax year, if you’re a limited company you will have your own company year which is separate to the end of the tax year.
Why does it matter? Because the end of the tax year is a deadline for a lot important things.
If you know you have earnt over £52,000 this year its worth considering making any charitable donations with gift aid or pension contributions in the next 48 hours to maximise tax benefits.
If your earnings are in the £100k to £125k bracket this is even more important to minimise that marginal 60% tax hole.
We cannot provide advice on how much to pay into pensions as its regulated finance advice, we can however say “pensions provide nice tax relief” and suggest you check if making contributions is something you would benefit from.
I know you’re itching to email us and say “how much have I earnt this year should I do this” – you’ll likely have a better idea than we will.
If you’re employed check your March payslip for year to date figures.
If you’re self employed you’ll be looking at your profit for the year, your profit is your turnover – expenses.
If we process a salary for you that will be £12,570 for this year, unless you’ve let us know otherwise. You then need to have a quick look at how much other money you’ve taken from your business.
If you have assets to sell make the most of your Capital Gains allowance do that now. The allowance is £6,000 for this year but is dropping to £3,000 from 6th April.
The new tax year does mean some new bits to remember.
The VAT threshold has increased to £90,000 in a rolling 12 month period, so if you’ve been intentionally sitting at £84,000 turnover you can now increase that to £89,000.
National Minimum wage has increased to £11.44 for employees aged 21 and over.
Want more handy updates like this? Sign up to our newsletter for them straight to your inbox.
