“Don’t miss out” is the message coming out of Surrey-based accountancy firm, TWP, as 5 April quickly approaches – marking the end of the 2023/24 tax year.
With the majority of tax reliefs for individuals operating on this same basis, the firm’s tax team has called for a shift in the long-established patterns of underusing available reliefs and allowances.
The firm’s warning also comes after a sustained rise in the cost of living, particularly in the cost of rental rates and staple food items, making many consumers more cost-conscious.
It finally acknowledges that, in real terms, tax contributions have risen for many individuals as taxable income thresholds have remained frozen.
The effect of this, TWP says, is clear – more people are paying higher bills and more tax, all the while missing out on opportunities to streamline their tax obligations and reduce their financial burden.
However, this does not have to be the case, according to Andrew Goddon, Partner and Head of Taxation Services at TWP.
He said: “There’s a misconception among a lot of people that tax planning and efficiency is only for businesses.
“This couldn’t be further from the truth. With so many reliefs and allowances available to individuals, depending on their needs and circumstances, this is a crucial time for people to review the tax they are paying and assess how they can reduce their liabilities.
“A popular example is ISA and private pension allowances.
“Each person has an amount that they can pay into these schemes, saving efficiently for later life, without needing to pay tax on those savings.
“For those who are maybe wanting to give financial gifts or gift other assets, it’s also worth seeking advice on Capital Gains Tax allowances and reliefs, as well as the gifting allowance under Inheritance Tax.
“These generally run from tax year to tax year, so it’s important for those looking to achieve tax efficiency to take action before 5 April.
“There are plenty of challenges facing us all at this time – let’s not make tax one of them.”
To find out more about our tax planning services, please contact us.