Wednesday 5 April marked the end of the tax year. There is little, or nothing, that can now be done to reduce your 16/17 tax bill. However with the fresh new tax year, there is plenty of opportunity to focus on minimising your 17/18 tax. Here we look at 5 actions for the next three months, so you can start as you mean to go on this year.
The views expressed in this article are specifically those of Lansdell & Rose Accountants.
What does 6 April mean for you?
This week marks the cross over between the tax years.
The current tax year, 16/17, officially closed at midnight on 5 April and the new one, 17/18, started immediately following.
It is quite likely this event passed by without you giving too much importance to it.
However, the new tax year does hold importance for anyone needing to complete a tax return, as well as anyone with a focus on minimising their tax bill.
5 things to do in the next 3 months
Here are a few actions so you can start the 17/18 tax year, as you mean to go on, with a view to minimising your tax and retaining as much of your earnings as possible.
(1) Get your tax return prepared early
Make some time in the next three months to gather all your tax information for 16/17 to send to your accountant. By getting everything organised early, they can prepare your tax return far in advance of the deadlines, and with plenty of time to give you up-to-date advice on saving tax in 17/18.
(2) Are you getting proactive advice?
It is understandable to be loyal to a professional adviser you have been with for many years. From time to time it is important to ask yourself if you are getting a proactive service and the proper advice to enable you to save tax.
If the answer is “no” then the start of a new tax year is a good time to switch, with plenty of time away from deadlines to get your accounts in order.
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(3) Understand the tax breaks that are available this year
Each new tax year you get a fresh chance to better your tax position by utilising all available tax breaks.
Tax allowances are also renewed and new financial products come onto the market, both of which may be useful to your overall financial strategy.
Speak to your accountant and financial adviser early in the tax year to ensure you are taking the correct action.
(4) Understand the tax breaks that are disappearing this year
In the same way new tax breaks become available, some changes to tax legislation will also affect your tax position in a negative way.
Ensure you are finding new ways to compensate for any extra tax that could be coming your way.
(5) Make a plan if your income is rising
If you know your income or profits are increasing this year, then make a plan to save tax.
This could mean incorporating your business so you can draw dividends instead of salary or profits. It could mean paying into a personal pension to keep you away from paying too much higher-rate tax.
There are many options but the important thing is to effectively plan ahead. Making sure you have a system that keeps a regular check on your tax position, means you can take action when it is needed, rather than miss the boat.
Dental & Medical Financial Services work alongside many healthcare specialists to give you access to the best advice.
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