Tax Year End Checklist

2021/22

 

 

Tax planning is an all year round job, but it’s good to review your plans to see if you have utilised all the tax reliefs and allowances available to you before the new tax year begins on 5 April. Here are some key points to consider: -

 

 

Have you used your full tax free ISA allowance? 

£20,000 for individuals and £9,000 for juniors in 2020/21

 

Have you considered pension contributions?

The government adds basic rate (currently 20%) tax relief on contributions up to £40,000 plus additional tax savings are available for higher rate taxpayers. You can even pay into a plan for a non-taxpayer (e.g. non-working spouse or child). 

 

Have you made use of all allowances and considered child benefit? 

Higher earners could pay pension contributions to reduce taxable income and retain the full tax-free personal allowance or child benefit. Married couples/civil partnerships can transfer up to £1,250 of personal allowance to their spouse potentially saving tax of £250.

 

If you are a business owner, could you take profits before 5 April as pension contributions or dividends? 

Directors taking dividends instead of salary will avoid NIC. The first £2,000 of dividends in 2021/21 tax free. 

 

Tax treatment depends on your individual circumstances. If you would like specific advice regarding any aspect of tax planning, please contact us: 

Chard - chard@lentells.co.uk, 01460 64441

Seaton - seaton@lentells.co.uk, 01297 20584

Taunton - taunton@lentells.co.uk, 01823 286274