2020/21 Year-End Tax Planning

Posted on: 06 Jan, 21

Tax never requires a one-size-fits-all approach. Each taxpayer and each year will be different. And with the end of the current 2020/21 tax year approaching on Monday 5 April 2021, now is the time to carry out a tax health check and implement any planning opportunities.

We should all be thinking about tax planning throughout the course of a year, but this year we have been distracted by the impact of the coronavirus (COVID-19) pandemic on our lives. We have listed below a few reminders of the issues you may want to consider as worthy of including in your 2020/21 tax planning to-do list.

Tax planning opportunities

Tax planning might not sound very exciting, but it can have a dramatic effect on your personal finances. It is important to ensure that, if you have not done so already, you take the time to carry out a review of your tax and financial affairs to identify any tax planning opportunities and take appropriate action before it’s too late. The best way to pay less tax is to plan ahead. And with the right tax planning advice you’ll keep more of your money to enjoy, invest, save or pass on. Paying no more tax than you should, is something we all strive for.

Here are some key things you might need to action before the tax year end

Personal reliefs: Married couples should utilise each person’s personal reliefs, as well as their starting and basic rate tax bands. Could you make gi!s of income-producing assets, which must be outright and unconditional, to distribute income more evenly between...

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