With Christmas just around the corner, financial strategies may not be high on your to-do list right now, but it is always a vital job ahead of the end of the tax year. This is especially true in a year that has seen the coronavirus pandemic take its toll on individuals’ finances as well as health.
Tax deferrals have played a key part in the government’s plans to ease financial pressures on both individuals and businesses during the pandemic, so do take advantage of extended deadlines for both personal and business taxes to ease your cashflow as necessary.
When it comes to savings, there are now several types of ISA on the market, including the Lifetime ISA for adults under the age of 40 and Junior ISAs for those aged under 18. You can invest in any combination of ISA investments up to the overall annual subscription limit of £20,000.
For those considering moving, don’t miss out on the reduced rates of stamp duty. Chancellor, Rishi Sunak reduced the rates of Stamp Duty Land Tax (SDLT) for properties up until 31 March 2021 in an effort to boost the flagging housing market.
You can reduce your tax burden with prudent use of the whole family’s tax allowance. Every member of your family is entitled to their own personal allowance allowing you to spread your income more evenly if your spouse or partner has little or no income.
Finally, no matter what stage in your career you are at, it is crucial to plan ahead for a comfortable retirement. Take steps to make sure you are in an appropriate employer scheme and don’t run the risk of an income shortfall.
There are many other tax planning opportunities available and we can work with you to help ensure your business and personal finances are in the strongest position to weather the current storm.
Paula Joyce, Tax Partner at Sheen Stickland