A FEW THINGS TO REMEMBER BEFORE THE END OF THE TAX YEAR
ELIZABETH BUNYARD
• Apr 03, 2021
With the new tax year starting on the 6th April 2021, listed below are some items you may want to take a look at before the end of the current tax year.
- Remember to use your ISA allowance, it is £20000 for 20/21 and also for 21/22. If you invest in one of these you will not need to pay any income or capital gain tax on the money you have in this savings plan.
- Check out your tax code, you may be paying too much or too little tax. You can find out how to do this at the HMRC website. If you are self employed and have a job as well, consider using a BR tax code for your employment, leaving your personal allowance free for your self employment. This could mean you pay less tax or even get a tax rebate in the future.
- Remember to use the Marriage Allowance if your income is below the personal allowance of £12500, it could help your partner save up to £250 in tax as long as they only pay tax at 20% and not 40%
- If you are planning to sell any personal assets (like shares, jewellery or property), remember to use the capital gains allowance of £12300, as this could save you tax if the gain is not too large. The current capital gains tax rates are set at 10%, 20% and 28%
- If you are in business and are thinking about making any capital purchases, do so before the end of the tax year, because you will be able to take advantage of a full year of capital allowances for the next tax year again help to reduce your tax bill.
- If you are planning to spend a large amount of business money on things like stationary, logo design work or printer cartridges, complete this before the end of the tax year because they can help reduce your tax bill.