Hello

As the tax year draws to a close, it’s time to get our ducks in a row for the HMRC. Let’s face it, taxes can be as complicated as trying to solve a Rubik's Cube blindfolded! But fear not, I’m here with some tips to make it as painless as possible. Let’s dive in! 🏊‍♂️

1. Gather Your Documents Early

Start by gathering all necessary documents. This includes P60s, bank interest statements, and allowable expense receipts. Imagine you're a detective collecting clues – every piece of evidence helps!

Example: If you've donated to charity, include these receipts. Charitable donations can often be claimed as deductions.

2. Utilise ISA Allowances

ISAs are your tax-free friends. The annual limit for an ISA is £20,000. If you haven’t maxed out yet, consider topping up to make the most of this allowance.

Example: If you’ve only put £15,000 into your ISA this year, consider adding another £5,000 to reach the threshold, thereby shielding more money from taxes.

3. Pension Contributions

Contributions to your pension can reduce your taxable income. The annual allowance is usually £40,000 or 100% of your earnings (whichever is lower).

Example: If you earn £50,000 a year and have only contributed £20,000 to your pension, consider adding more to lower your tax bill potentially.

4. Capital Gains Tax Allowance

For any investments outside of ISAs or pensions, remember the capital gains tax allowance, which is £12,300. If you've got investments that have appreciated, consider selling some to utilise this allowance.

Example: If you sell stocks that have gained £10,000, you won't pay any capital gains tax since it's under the £12,300 threshold.

5. Claiming Work-From-Home Expenses

If you've been working from home, don’t forget you can claim £6 a week for extra costs without needing to provide receipts.

Example: That’s a total of £312 for the tax year, which could reduce your tax bill if you’ve been working from home.

6. Deadline Reminders

And finally, don’t forget the deadlines! The tax year ends on 5th April, and the deadline for online tax returns is 31st January of the following year.

Wrapping Up

Taking a bit of time now to sort your taxes can save headaches later. Think of it like spring cleaning for your finances – a little effort for a lot of relief! 🧹

Best of luck, and here's to a stress-free tax season!

Get in touch if you need any help.

Lets Talk

Keeping it simple,

Alan 💰