The current tax year ends on 5th April, what should you be thinking about?
Many self-employed businesses have a year-end that is the same as the tax year and so any capital expenditure that you are considering in the next couple of months could be accelerated into the current tax year if it’s contracted for by 5 April.
This will mean getting the tax relief on it a whole year sooner than if you did it on 6th April.
Of course, if you are a Limited Company which has a March year-end the same applies to you.
Now that we know there are no changes to the pension rules getting contributions paid before 5th April will mean it can be claimed against this year’s tax return. This relates to personal pension contributions for self-employed or employed taxpayers.
The annual ISA allowances reset on 5th April, so if you haven’t used your allowance for the year makes sure you don’t waste it if you have the funds.
If you are young enough to have a Lifetime ISA, don’t miss out on the 25% bonus available for the 2020/21 tax year, giving a benefit of up to £1,000.
Marriage Personal Allowance Transfer
Spouses can transfer some of their personal allowances to the other spouse if they are not paying tax and this can be worth £250 per year. You can go back 4 years so if you want to claim for earlier years the oldest year drops off from 5th April.