Year End Tax Planning – the clock is ticking!

Next on the list is tax planning for year end on 5th April – and making sure you are making the most of every allowance.

There are a few significant changes coming into effect from this April, like the Cash ISA contribution threshold which is reducing from £20,000 per year to £12,000 for under 65 year olds. The £20,000 threshold remains if you are investing in a Stocks and Shares ISA, but if you’re sticking to cash, make sure you’ve put that £20,000 in before 5th April.

For businesses, make sure you’ve prioritised purchases under the Annual Investment Allowance (AIA) which gives 100% tax relief on qualifying capital expenditure, up to £1,000,000 per year. So if you need to buy any equipment, machinery or things like building works, electrical or heating systems, do it now as purchasing assets before the year-end can dramatically accelerate the tax relief, reduce taxable profits and potentially see a reduction in the rate of corporation tax charged.

Pensions are worth looking at too. A company can make employer pension contributions and receive corporation tax relief as a result. Also, if pension allowances have been under utilised in previous years and your company has excess funds, it may be beneficial to top up the pension pot.

For more tips and advice for year end tax planning head to our website: https://monahans.co.uk/articles/beat-the-tax-clock-make-every-allowance-count