End of tax year considerations
Approaching the End of the UK Tax Year
With the UK tax year concluding on April 5th, 2024, it’s essential to be proactive about your financial arrangements. Here are some actionable insights to help you with tax-saving and financial planning:
Understanding your UK tax residence
Your UK tax obligations hinge on factors like:
Familiarise yourself with these to better manage your tax liabilities. Seek professional advice to further help with understanding your tax residence status.
Optimising ISA contributions?
Make the most of your ￡20,000 annual ISA allowance, which can be spread across Cash ISAs and Stocks & Shares ISAs. These offer tax-free growth and income.
Pensions
If you have a UK pension, evaluate your pension contributions to capitalise on available tax reliefs. You can contribute up to ￡60,000 on or before April 5th and avail of tax relief on your savings.
Starting from April 6, 2024, the lifetime allowance for pensions will no longer exist. However, there will still be limits on how much pension savings you can withdraw without facing a tax penalty. Instead of the lifetime allowance, there will be new allowances in place.
Here are the three new allowances:
Both of these limits determine the maximum amount you can receive in tax-free benefits.
When you claim benefits, these allowances will be checked to see if you’re within the limits. If you have lifetime allowance protection, these limits might be higher for you. However, if you started taking benefits between April 5, 2006, and April 6, 2024, these allowances will be reduced.
It’s important to chat with a financial adviser about this to avoid any potential financial pitfalls.
Utilising Capital Gains Tax (CGT) allowance
The Capital Gains Allowance is a key consideration, especially as from the next tax year (2024/2025) the CGT allowance will be halving from ￡6,000 to ￡3,000, meaning if you have some Capital Gains which could be realised by the end of the tax year, it may be worth making the most of the final year of the ￡6,000 allowance.
Benefiting from charitable donations
If you donate to charities, using Gift Aid can boost your donation’s value and provide tax relief.
Inheritance tax position
Check your inheritance tax position if you are an expat. It’s important to review your inheritance tax position to ensure that your estate is structured in the most tax-efficient way. Seek professional advice to ensure you take advantage of all available exemptions and reliefs.
Make use of the ￡3,000 annual gift exemption to aid in estate planning and mitigate potential inheritance tax.
Maximising dividend allowance
If your investments yield dividends, ensure you benefit from the ￡2,000 tax-free dividend allowance.
Take note that the dividend allowance will be reduced to ￡500 per annum in the 2024/2025 tax year.
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Overall
Remember, these strategies not only minimise your tax burden but also enhance your overall financial well-being. Effective tax planning is ongoing. At GSB, we’re committed to helping clients grasp these opportunities well in advance. Our dedicated team is at your service for tailored advice and support.
Tax Calendar for 2024/25
Being aware of key tax dates is pivotal for effective financial planning. Here's a breakdown of significant dates for the upcoming tax years and their implications:
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April 2024
·?????? 5th: End of the 2023/24 tax year, marking the deadline for tax reliefs and exemptions.
·?????? 6th: Start of the 2024/25 tax year with new tax codes and allowances.
·?????? 19th: Final PAYE submission for 2023/24 tax year deadline for employers.
·?????? 30th: Penalties for unfiled self-assessment tax returns commence.
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July 2024
- 31st: Deadline for the self-employed to make the second 'payment on account' for the tax year.
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October 2024
- 5th: Registration deadline with HMRC for 2024/25 tax year and the initial tax return submission deadline.
- 31st: Deadline for paper tax return submissions for the 2023/24 tax year.
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December 2024
- 30th: Deadline for online tax return submission for automatic payment of owed taxes from pension/wages for 2024/25 tax year.
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January 2025
- 31st: Deadline for online self-assessment tax returns for the 2023/24 tax year and payment of any owed tax.
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April 2025
- 5th: Conclusion of the 2024/25 tax year.
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Each date holds unique responsibilities and implications for individuals and businesses alike. Tracking these deadlines ensures compliance and aids in effective financial planning. At GSB, we're dedicated to guiding our clients through the tax year with expert advice and seamless navigation.
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Disclaimer: The information provided is for general informational purposes only and does not constitute tax advice. We do not guarantee the information's accuracy, reliability, or applicability to your tax situation. Tax laws are subject to change, and individual circumstances may vary. You should consult with a qualified tax adviser before making any tax planning decisions. We are not liable for any loss or damage arising from the use of this article.
ACCA |Professional UK and USA Tax Manager | Tax expert |Tax preparer| Tax Planner| Solving Tax problems of small businesses and individuals.
7 个月hey can you tell me how big is taxation industry of UK for taxation service providers . I need your personal insights if it may please . as I am an ACCA student who wants to work in UK taxation industry.
Partner - GSB Capital
7 个月For UK related individuals who require further assistance with the upcoming changes, do reach out. Our GSB qualified advisers are here to support in full.