With rare exceptions, once the end of the tax year has passed, tax planning options to reduce liability are no longer possible.
For Income Tax and Capital Gains Tax purposes, this means that the majority of the tax reduction options will cease unless actioned before 6 April 2022, the start of the next tax year.
Which means individuals and the self-employed have just over two months to consider their options.
If you fall into any of the following categories, please contact us so we can discuss your options:
- Your annual income is approaching £100,000, perhaps for the first time.
- You claim Child Benefit and the income of either parent is likely to exceed £50,000 for the first time during 2021-22.
- You have not yet considered topping-up pension contributions for 2021-22.
- You are self-employed with a 31 March 2022 year-end.
- You are self-employed and considering a significant purchase of equipment including commercial vehicles.
- You are the director/shareholder of a limited company and have not yet considered voting final dividends or bonuses for 2021-22.
- You have experienced, or are contemplating, a change in your personal status (single, married, separating, joining, or dissolving a civil partnership).
This list is by no means complete. If your tax affairs are complex pick up the phone. There is no joy in being advised after the tax year end, 5 April 2022, that if you had acted on or before that date you may have reduced your tax liabilities.