Some tax planning should happen before the end of the tax year; but the start of a new tax year also presents opportunities. With many people experiencing a drastic change to their circumstances due to the pandemic, it is more important than ever to keep on top of your tax affairs.
If your income is now at a different level than pre-pandemic, you need to re-evaluate any previous tax planning. For example:
Savings rates hit record lows last year, and many companies cut their dividend payments. You may also have used up savings to replace lost income. Therefore, make sure you and your partner are making the best use of the savings and dividend allowances, and decide whether any ISA saving is still the best option.
You might also have had to realise investments during 2020/21. If you are now facing a CGT bill, it might be possible to crystallise some capital losses to offset against the gains. This is done by making a negligible value claim for assets that have become virtually worthless.
Some simple procedural checks can make a difference:
A good starting point when reviewing your tax affairs is HMRC’s income tax webpage. This contains many useful links and can be found here.
As always, if you require any further information or assistance, please do not hesitate to contact us.