Five ‘crucial’ tasks to complete before end of tax year to take advantage of allowances | Personal Finance | Finance


Britons have just a few days to carry out some important tasks as the end of the looms.

Experts at Wealth of Geeks have urged people to check that they are making full use of their ISA, capital gains tax allowances, and other tax rules.

Michael Dinich, spokesperson for Wealth of Geeks, said: “The end of the financial year is a crucial time for taxpayers in the UK.

“Using this window to use up your tax allowances is a smart way of setting yourself up for the future, as it allows you to maximise your savings.

“This is also a good time to prepare for the next financial year. You can take control of your finances by reviewing your previous year’s financial performance and set new goals.

“It is also important to reassess your budget to accommodate any changes in income or expenses.”

Here are the five key tasks for people to complete:

Claim for a tax rebate if you have overpaid

You can check if you have overpaid tax through your HMRC personal tax account.

It’s a good idea to get a claim in soon to avoid processing delays and to get your rebate paid sooner.

The group said: “If your claim for a tax rebate is due to a mistake or discrepancy in your tax record, resolving this before the tax year ends can ensure that your records are accurate going forward, potentially preventing further issues.”

Utilise your capital gains tax allowance

The allowance is currently £6,000 and any unused allowance cannot be carried over into the next tax year.

It’s particularly important to make the most of the allowance as it will be reduced to £3,000 in the new financial year.

Max out your ISA allowance

Savers can put away up to £20,000 a year into ISAs. These savings accounts are tax-free, with no tax to pay on any interest or investments growth, or on income derived from an ISA.

A person can save into one of each type of ISAs, including cash ISAs, stocks and shares ISAs, and lifetime ISAs.

The rules are changing in the new tax year so you can save into more than one of each type of ISA.

Use up your yearly gifting exemptions

Gifting allowances help reduce a person’s estate for inheritance tax purposes, with no tax to pay on the amounts on the amounts a person gives away.

A person can give away up to £3,000 divided between any number of people as well as any number of gifts up to £250 to different people.

Use your dividend allowance

The allowance is currently £1,000 and is dropping to £500 from the start of the new tax year.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.


Source link