Accounting News – Winter 2021

End of Year Tax Planning: What You Should Do Before 5 April

With the new tax year approaching, now is the time to take stock and make sure you’re making the most of available allowances and reliefs. A little preparation can go a long way.

For Individuals

• Use your ISA allowance – Up to £20,000 can be invested tax-free each year.
• Pensions – Contributions receive tax relief, making them one of the most efficient ways to save.
• Capital Gains – The annual exemption (£12,300 for 2020/21) resets each year, so consider timing disposals.

For Business Owners

• Salary vs Dividends – Directors should review their mix of salary and dividends for tax efficiency.
• Expenses – Ensure all allowable expenses are claimed, from business mileage to professional subscriptions.
• Investments – Consider capital allowances on equipment or using the super-deduction announced in the Budget.

Why act now?

Waiting until the last minute can mean missed opportunities. By reviewing your position before 5 April, you can make informed decisions that reduce your tax bill and support your long-term financial goals.

👉 Final thought: Tax planning isn’t just about saving money—it’s about making sure your finances are working as efficiently as possible for you and your business.