7 Things to do before the end of the tax year
5 April, the end of the tax year is fast approaching, and we at S J Baker Accounting want to help you make use of all the tax free allowances you can. Here is a list of 7 things that you could be doing before the end of the tax year.
1. Top up your pension contributions if you can. • You can put up to £40k away this year • You get income tax relief if you are a higher rate tax payer • You can use the allowance from the previous 3 years
2. Top up ISAs for tax fee savings • You can put away up to £15k
3. Income Tax Allowance if you are born before 06/04/1948 • Fill in a P16 form – you are entitled to a higher personal allowance of £10,600.
4. Inheritance Tax • You can gift £3,000 per annum with no Inheritance Tax • You can gift £6,000 if you didn’t use the previous years allowance
5. Junior ISA under 18 • You can save up to £4,000 for a child tax free
6. Invest in a Venture Capital Trust • Dividends are tax free with no capital gains tax when you sell your shares • Up to £200k can be invested • You get 30% tax relief • Shares must be held for 5 years • However, investing in a Venture Capital Trust can be risky
7. Top up dividends if you can • In 2016/17 there will be 7.5% basic rate tax on dividends • Currently they are tax free
Speak to Selena at S J Baker Accounting if you would like to explore any of the above options. Tel: 01793 495559 or email email@example.com.