Get Ahead of Self-Assessment
As the holiday season approaches, and you find yourself immersed in the festive spirit, it’s essential not to overlook another significant aspect of this time of year—your Self-Assessment Tax Return. As you decorate the tree and exchange gifts, don’t forget to gift yourself the peace of mind that comes with a well-thought-out plan and early filing.
Let’s explore the importance of planning and offer insights to help you understand the complex process of Self-Assessment.
Why Planning Matters
The end of the year provides a crucial opportunity to assess your financial situation and identify potential deductions. Whether it’s charitable contributions, business expenses, or educational costs, understanding what you can claim will help optimise your tax liability.
Review your pension contributions and, if possible, consider making additional contributions before the year ends. You can read more about Retirement planning in our guide to retirement.
Capital Gains Tax (CGT)
If you have investments, be aware of the capital gains tax implications. You may want to review your investment portfolio and consider selling investments strategically to manage capital gains.
Inheritance Tax Planning
Inheritance tax is a consideration for many individuals. Review your estate planning and consider making gifts or setting up trusts, keeping in mind the relevant inheritance tax thresholds and exemptions.
Charitable donations may be eligible for Gift Aid, which allows charities to claim 25p every time you donate £1 at no extra cost to you. Ensure your charitable contributions are set up to take advantage of any available tax relief.
Reviewing Benefits and Allowances
Be aware of any changes to tax allowances and benefits. Understanding the current thresholds for income tax, capital gains tax, and other taxes will help you plan your finances more effectively.
Investment Portfolio Review
Self-Assessment is an ideal time to review your investment portfolio. Consider capital gains and losses and strategise accordingly. Selling certain investments may offset gains or losses, impacting your overall tax liability.
While the holiday season is undoubtedly a time for celebration and joy, it’s equally important to approach the end of the year with a keen eye on your financial well-being. Planning ahead can empower you to make informed decisions, optimise deductions, and position yourself for a smoother tax return process.
If you’re struggling with your Self-Assessment tax return, we’re here to make the process stress free and can assist with any aspect of your financial goals. Contact Lianne@langricks.com to find out more.