With the tax year end fast approaching, it’s important to make sure that you complete all necessary financial tasks before April 5th to avoid penalties or missed opportunities. To ensure you don’t miss out, we’ve put together a list of the top financial tasks you should complete before the deadline.
Maximise your ISA allowance
If you have not yet used your annual ISA allowance of £20,000, it’s worth doing so before the tax year end. This will ensure that you can enjoy tax-free returns on your savings and investments. Remember that once the tax year ends, you lose your allowance, so make sure you use it before it’s too late.
Review your pension contributions
If you are contributing to a personal pension or workplace pension, it’s worth reviewing your contributions to ensure that you are maximising your pension benefits. You may also be able to claim tax relief on your contributions. It’s important to plan ahead for your retirement, and making the most of your pension contributions can help to secure your financial future.
Claim tax relief on charitable donations
If you have made charitable donations during the tax year, you can claim tax relief on these donations. Make sure you keep records of your donations and claim the appropriate relief on your tax return. Not only is this a great way to support causes you care about, but it can also help to reduce your tax bill.
Make use of tax allowances
There are a number of tax allowances that are worth utilising, including the personal allowance, marriage allowance, dividend allowance and capital gains tax allowance. Make sure you understand how these allowances work and make use of them where possible. Every pound saved on tax is an extra pound in your pocket.
Consider tax-efficient investments
If you are looking to invest before the tax year end, it’s worth considering tax-efficient investments such as Venture Capital Trusts (VCTs) or Enterprise Investment Schemes (EISs). These investments offer tax relief and can help to reduce your overall tax bill. However, it’s important to know that these types of investments carry a higher level of risk, so make sure you do your research and seek professional advice before investing.
Bottom Line
In conclusion, completing these top financial tasks before the tax year end can help to maximise your tax benefits and avoid any penalties or missed opportunities. If you need help with any of these tasks or have any questions about your finances, don’t hesitate to contact Shield Accountancy for expert advice and support. Not only can we take care of your tax returns for you, we can help you to make the most of your finances and achieve your financial goals.