Tax planning advice for the 2017/18 year end

New research has found that four in ten people would rather visit the dentist than complete their tax forms.

With the 2017/18 year end for tax planning purposes approaching on 5 April, it is important to be aware of the personal and business taxes you are liable to pay and how to legally minimise them.

Consumer group Which? surveyed over 4,000 members of the public to investigate the nation’s tax return habits.

More than half (53%) would rather do the ironing or clean the bathroom than complete their returns. Additionally, 41% of people would rather spend time unblocking a drain or visiting their dentist.

The research also showed the most time-consuming aspects of the process that people encountered when completing their returns.

Almost half (44%) of respondents spent the most amount of time searching for receipts and records, while a third (34%) said trying to understand HMRC forms was the longest part of the process.

The complexity and monotony of the tax system often leads to avoidance when it comes to completing tax forms.

However, this can leave consumers with huge fines, for a return that is three months late you can be charged with up to £1,000.

With our help, tax planning does not have to be difficult. These are some of the areas to be considered when planning for the tax year end:

• Personal allowances: Make use of your personal allowance (tax-free income) in any tax year as you cannot carry this forward to the next year
• ISA investment: ISAs allow you to save money free of income tax and capital gains tax. Again, any allowance invested in an ISA must be used by April 5 deadline or will be lost.
• Capital gains tax allowances: Consider utilising your tax-free Capital Gains Tax Annual Exemption.
• Make tax-deductible charitable contributions: Tax-deductible charitable contributions can help reduce your taxable income.
• Pension: There are many opportunities for pension planning, and a review of what you could draw down as income from your pension funds before the tax year end could prove worthwhile.
• Review your will: A review is due if there has been a significant change e.g. birth, death, marriage or divorce, a move abroad, or a dramatic change in tax law.

How can we help?

Paying taxes is unavoidable, but we offer advice on the numerous ways of saving tax, investing and maximising net profit within the legal framework.

To obtain professional advice from a qualified IFA regarding your personal or business related tax returns please contact us on 0333 00 44 333 or click here.