The end of the tax year is now less than a month away. Many taxpayers continue to pay too much tax each year because they do not make full use of the opportunities available to them. 

The UK’s ever-changing tax legislation means that individuals need to think very carefully about tax planning and regularly review their plans.

Failing to put an effective tax plan in place, that takes advantage of the many tax-saving opportunities, allowances and reliefs available to you means you may end up paying much more tax.

The importance of tax planning for individuals

No one wants to pay more tax than they have to and yet many of us do – often without realising.

The freeze on personal tax allowances until 2026 means you need to take a more proactive approach to tax planning and try new avenues of saving.

Here are just some of the ways you could save tax this year:

  • Increasing tax-free pension contributions
  • Tax-efficient sales of shares and assets
  • Using dividends to balance out taxable income from a salary
  • Maximising the use of personal tax allowances, reliefs and exemptions
  • Tax-efficient investments, including VCTs and the EIS
  • Utilising wills and estate planning to minimise Inheritance Tax liabilities.

It is best to seek professional tax advice if you want to reduce your liabilities and make the best use of some of the steps highlighted above.

By working with experienced tax planners, you could save a lot of money and reduce the stress of large, unexpected tax bills.

If you want to get your affairs in order before the end of the tax year on 5 April, please contact your Seymour Taylor tax representative today or email or call 01494552100.

This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 10 March 2022.

Posted in Blog news.