7 things to do before Tax Year End
Managing your money on a day-to-day basis can be challenging enough. Finding time to take a longer view can be next to impossible. But April 5th, and the new financial year are coming up fast.
To make 2024/25 a prosperous new financial year, you need to start preparing now.
At Continuum we know the importance of financial preparation – and here are seven important steps to consider taking now.
1. Review your budget and financial goals
You need to look back before you can look forward. Assess your current financial situation and review your budget. The effects of inflation over the past year mean you need to look at your income, expenses, and savings. Can you cut back anywhere? It’s sensible to have a regular surplus at the end of each month to let you build up an emergency fund and start making savings or investments.
Once you have a clear picture of your current finances you can start looking at setting realistic financial goals for the upcoming year, whether it's saving for a major purchase, paying off debt, or investing for the future.
2. Make the most of your ISA allowance
Individual Savings Accounts (ISAs) are a tax-efficient way to save and invest money, and your ISA allowance is too valuable to go to waste. For the 2023/2024 tax year, the ISA allowance is £20,000 per individual, and it resets at the beginning of each tax year, so make sure you have put in what you can before the April deadline, and plan how you will use your 2024/25 allowance.
Remember, you can put savings into a Cash ISA, or invest in Stocks and Shares ISA, and there are other options to consider. Call us at Continuum for help if you need it.
3. Check your Pension
inflation means that your forecast pension pot will have less buying power than it did a year ago, and you might be in a position to take advantage of the generous tax relief on pension contributions before the end of the tax year. You can contribute up to 100% of your annual earnings or £60,000 (whichever is lower) into your pension each tax year
Call us at Continuum to arrange a revised pension forecast and discuss ways to make your pension contributions work harder.
4. Consider disposing of assets
Capital Gains Tax allowance is being cut, and the allowance for the new tax year is just £3,000 (down by half from the current tax year). Where losses are made in the previous year, these may be carried forward, however it might make sense to dispose of investments now to take advantage of the higher allowance from previous years before it vanishes at midnight on April 5th. Unused allowances are unable to be carried forward.
5. Check your tax code
Your tax code affects not just income tax, but every aspect of your relationship with HMRC – and it can be wrong. It makes sense to check your tax code each year to ensure it is correct – and to call us at Continuum if you need help understanding it.
6. Check your insurance protection
Rising prices mean that your insurance protection, including life insurance, health insurance, and home insurance, may no longer be adequate. Considering updating your policies and shopping around for more suitable deals to ensure you’re getting the best value for your money and circumstances – and calling us at Continuum for help.
7. Seek professional advice
Financial planning can be complex, and with a new tax year in sight, getting advice from a qualified financial advisor could help make all of 2024/25 more rewarding. A Continuum expert can help you navigate tax laws, investment options, and retirement planning strategies tailored to your specific needs and circumstances – and help ensure you are taking full advantage of tax allowances for this year and next.
But this tax year is running out. Call us today.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The Financial Conduct Authority does not regulate taxation advice.
Levels, bases and reliefs from taxation are subject to individual circumstances and may be subject to change.
A pension is a long-term investment, the fund value can go down as well as up and this can impact the level of pension benefits available. Pension Income could also be affected by interest rates at the time benefits are taken.
The value and returns of an investment are not guaranteed, investors may lose some or all of their investment. Capital is at risk.
Pension savings are at risk of being eroded by inflation.
Stocks and Shares ISAs do not include the same security of capital which is afforded within a Cash ISA.
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