FMPA Financial: THE SECRET TO GETTING AHEAD IS GETTING STARTED
The UK tax year ends on 5 April 2022 but early planning can help you avoid a last-minute rush or potentially missed opportunities.
We have put together some reminders that could help you make the most of your money and ensure that you don’t miss the chance to make the most of valuable tax efficiencies and allowances in your tax planning:
- Income Tax & Personal Allowance – The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. It’s smaller if your income is over £100,000. Your Personal Allowance may increase if you are eligible to claim Marriage Allowance or Blind Person’s Allowance.
- Capital Gains Tax (CGT) – Have you considered using the £12,300 annual exemption? With careful and early tax planning, it could be possible to reduce, eliminate or delay the payment of your CGT liability. See the full list here.
- Make tax-free pension contributions – Have you considered salary sacrifice pension contributions? Where employees exchange some of their salaries in return for pension contributions made by the employer both parties can save on National Insurance contributions.
- Research & Development (R&D) tax credits – Have you considered looking into R&D tax relief for SMEs? See the full list here.