A couple of things to do before the new tax year

Here are a couple of tax planning ideas to take care of before the new tax year begins on April 6th.

2016-2017 tax year, tax planning tips from Dudley accountant Lewis Smith & Co.

Use your 2016/17 ISA allowance

The ISA allowance for 2016/17 £15,240, so if you haven’t used it all up yet get investing soon. The £15,240 limit includes shares, bonds, cash (there is no restriction on the proportion you can invest in cash) or certain other investments.

Make pension pension payments

The current annual pension limit remains at £40,000. In addition, unused relief from the previous three tax years may be utilised once the current £40,000 limit has been used. However, the relief from 2013/14 will lapse on 6 April 2017.

If, for example, you have £10,000 unused allowance from 2013/14 you would need to make pension contributions of at least £50,000 by 5 April 2017 to avoid losing your 2013/14 relief. Remember also that pension savings continue to qualify for higher rate tax relief and may help to reduce your payments on account.

If you need any advice on tax planning then talk to us today. We’ll make sure you pay no more tax than you should.

Call 01384 235549 or email info@lewissmith.com to set-up an appointment.

Lewis Smith & Co. – Need help sorting wages and payslips? Try our payroll bureau service.