The end of yet another tax year will soon be upon us. It’s important that you check in with your trusted financial adviser during this crucial time so you can ensure you’ve properly planned when it comes to your taxes, but it’s also a great time to undergo an investment review in an effort to approach your financial situation holistically.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Year-end tax planning
Of course, the ideal situation is to be regularly making use of tax-planning opportunities throughout the year, but with the busy schedule of doctors and dentists, sometimes that can be impossible.
However, at the end of the tax year, it’s a necessity. You can take the time to review your entire financial plan as well, which will include your investments and pension plans and take into account the current global economic situation where the crisis in Ukraine in particular is having an impact.
Reviewing your financial plan will help you better take advantage of relevant tax planning opportunities that could be of interest to you and your family. You’ll be able to utilise as much of your annual allowances as possible, and you can also make use of any tax relief you’re eligible for.
Some of the areas to consider during your year-end review:
Pensions
Brush up on the current thresholds and tax brackets as the rules are always changing as are your personal circumstances. Could you benefit from additional last-minute pension contributions? Is passing assets to a spouse or partner with a lower income an option? Do you have any unused balances you can carry forward this year? Now is the time to beef up your pension pot.
ISAs
Are you on track to hit your allowance maximum this year? Income and capital gains generated from ISAs are tax-free and you won’t pay tax when it’s time to withdraw. They can also be used by parents or grandparents to help fund their family’s future, whether they use the money for their education or for a future home.
Inheritance Tax (IHT)
Don’t forget to take advantage of the annual gift allowance that lets parents and grandparents make tax-efficient gifts. If you’ve established a pattern of gift-giving you may be able to give gifts tax free to your loved ones – anything from pension contributions and ISA subscriptions to university fees and accommodation costs could all be given IHT-free.
Investment review
Taking advantage of year-end tax planning should just be one aspect of your overall tax planning strategy. Think about your short, medium, and long-term plans. If there are ways to optimise your strategy, now is the time to make those changes.
Part of our ongoing service to our valued clients is to help you determine your attitude toward risk so that you remain comfortable with any investments you make and that they’re in line to help you reach your financial goals.
Check your personal risk profile
Our clients can check what their personal risk profile is on our wealth platform. If it’s been at least a year since you updated your profile, we encourage you to fill out the survey again to see if your risk tolerance has changed.
Schedule your year-end tax-planning and investment review
Ideally, tax planning will help you implement a strategy that will provide the right structure and security for your financial affairs. Since life is constantly changing, your strategy should also evolve and develop with time, letting you plan for the future.
For more information on how you can make the most of your tax planning opportunities please contact Dental and Medical Financial Services today.