Things to do before the end of the tax year
Time has flown in again – it's nearly the end of the 23/24 tax year. The end of the tax year is 5th April 2024 which marks the date where tax allowances, deductions, and credits reset for the year. This is also the end of the personal tax year, so if you’d like to ensure you don’t miss out on any potential allowances or benefits, read on to find out what you need to do before the end of the tax year.
Note the key dates in the 24/25 tax year
Plan ahead to get a jump on the new tax year by making a note of all the important dates coming up. If you need a hand with this, you’re in luck! Take a look at our blog containing the key dates you need to know for the upcoming tax year.
For businesses
Make the most of your allowances
Make a list of tax-deductible expenses for your business and gather your receipts. You can claim different allowances depending on your area of business, so make sure to check HMRC’s explanation of tax relief so you don’t miss out.
Review your payroll
If you have employees, make sure you kick off the new tax year right by ensuring your payroll records are up to date.
Check on your finances
This is something you’ll probably be doing anyway, but it’s extra important to make sure everything is order before the end of the tax year. Making sure you deal with any outstanding invoices or expenses is an easy way to tidy things up before entering the new tax year, while making sure you’ve been dealing with your cash flow efficiently is a great way to keep your finances in order.
For personal use
Think about your ISAs
If you have an Individual Savings Account (ISA), now is the last chance to think about how much you can save before the end of the tax year. The personal allowance for the 23/24 year is £20,000, so once you reach this limit you will be unable to invest more in your ISA until April 6th.
If you have a Lifetime ISA, you can put a maximum of £4,000 into it each tax year. You then receive a 25% bonus from the government of up to £1,000 per year, paid monthly. If you don’t pay in the maximum amount of £4,000 by the end of the tax year, you won’t benefit from the £1,000 bonus from the government, so it can be worth contributing up to the £4,000 before April 5th.
Pension contributions
There is a limit to how much you can save with your pension each year before you stop receiving tax relief. For the 23/24 tax year, you can get relief on contributions up to £3,000 or 100% of your earnings, whichever is more. You can also only pay up to £60,000 before you're liable for an annual allowance tax charge, so one way to make the most of your annual allowances is to make a one-off pension contribution before the 5th April.
Check your tax code
This is a simple one – make sure that your tax code is correct before going into the new tax year. Whether you’re a salaried employee or self-employed, checking you have the correct tax code can save you a lot of hassle and money in the future.
These are just a few things you can do before the end of the tax year to make the transition into the 24/25 tax year smoother for yourself or your business. If you’d like to speak with an expert in the lead up to the end of the tax year, don’t hesitate to get in touch and a member of our team will get back to you.