Year End Tax Checklist

With the UK financial year coming to a close on the 5th April, little time remains for you to get your finances in order and make the most of the financial possibilities associated with the tax year ending – little time, but enough!

In this blog post, therefore, we’re running through a checklist of things you shouldn’t forget to do before the year’s up, providing you with 4 financially savvy tips to ensure you’re prepared for the year ahead.

Max out your ISA allowance


ISAs are exempt from Income Tax and Capital Gains Tax. As such, any allowance you don’t use in the tax year (currently £20,000) won’t carry over into the next tax year – meaning any allowance you don’t use will be lost forexer. So, in order for your money to count towards your ISA allowance this year, and to see you reap the maximum financial rewards, you should try and pay money into your account by midnight on the 5th of April.

Make use of annual tax-free allowances


Each tax year, you’re allowed to give tax-free financial gifts that leave your estate immediately and won’t be taken into consideration upon calculating your Inheritance Tax (IHT) bill.

Giving gifts is a good habit to get into as a way of keeping your hard-earned money away from Inheritance Tax – and, while this is restricted to £3,000 a year, this will mount up over time, reducing the potential IHT bill payable on your death as a result.

Check your spouse’s allowances


With the end of the UK tax year looming, it’s time to open up the conversation with your spouse about money. Both parties in a marriage or civil partnership have tax allowance rights, meaning you can transfer assets between spouses for free. As such, by structuring your finances as a couple to ensure you’re using both partners’ tax allowances effectively, you may be able to save some money in the instance that one spouse pays tax at a lower rate, for example.

The tax year ends on the 5th of April, so using the above tax checklist we hope you’ll feel a little more motivated and prepared to make the most of your money before the deadline.

For those of you looking to future-proof your finances in the long-term, there are financial services you can read about here to help you make the big decisions when it comes to what to do with your money.