The clock is ticking towards the end of the tax year on 5 April 2021 and it is important that you utilise all of the available tax reliefs and allowances before the new tax year in order to minimise your liabilities.
With the current tax year having begun on 6 April 2020, the clock is ticking and it is important to utilise all the tax reliefs and allowances available before 5 April 2021 in order to minimise your liabilities.
Reducing your tax bill is not something that you’re taught about, meaning that many of us end up paying more tax than we should be.
Pensions
Individuals can contribute to their pension pots tax-free, providing they don’t go over the £40,000 annual limit.
They can also contribute a further £2,880 towards a pension for a non-earning spouse or child, saving them even more in tax.
This not only helps future-proof you and your family’s retirement income but also helps keep you out of the higher or additional rate tax bands.
ISA
Have you opened an Individual Savings Account (ISA) for you and your family?
The allowance for 2020/21 is £20,000 per person, meaning you can start generating interest tax-free from today.
Inheritance Tax
Individuals can gift up to £3,000 of gifts each year to family and friends without incurring Inheritance Tax. Remember, this allowance can be rolled over by up to one year.
Employee benefits – be wary
Most employee benefits – such as company cars – are now taxable as regular income. If you don’t actually need a company car, substituting it for cash and contributing it towards your pension, for example, may be a more tax-efficient option.
Marriage allowance
All married couples in the UK are entitled to the Marriage Allowance, but very few are even aware it exists.
The allowance allows you to transfer £1,250 of your Personal Allowance to your husband, wife or civil partner, providing they earn more than you and are within the basic rate tax band.
To benefit, the partner transferring their allowance must normally have an income below the Personal Allowance – currently £12,500.
This can result in annual tax savings of up to £250 a year.
Here to help
At Grunberg & Co, we’re here to help. 
For help and advice, get in touch with our expert team at Grunberg & Co Chartered Accountants today.