Spring is here, which is a time of new beginnings, lighter days, and the start of the new tax year! Interestingly, it’s also National Stress Awareness Month so we’d like to help relieve some stress associated with the tax year.
As the theme of Stress Awareness Month is ‘Little by Little, a Little becomes a Lot’, we’re encouraging everyone to adopt this mindset and make small changes to reduce their personal tax-related stress.
Planning ahead
“Fail to prepare, prepare to fail.”
Just as the saying goes, it’s wise to plan well in advance of the financial year ending, or you could full victim to rushing your tasks before April 2025 and likely missing crucial details.
Avoid getting caught out by the new changes announced in the Spring Budget and ensure you’re aware of your responsibilities.
For example, if you are self-employed, you need to be aware of and understand the reduction in Class 4 NICs from nine per cent to six per cent.
Taking small but helpful steps
We’ve identified a few useful steps that will guide you towards a worry-free and uniformed process.
- Check in with your accountant – It’s best to have your accountant advise you sooner rather than later to ensure compliance
- Don’t forget your expenses – Remember to claim all expenses that you’re owed. If you’re not sure what you’re entitled to, our team can guide you
- Check your account – Review your figures regularly to ensure that they’re correct and conform to any tax obligations
- Try to avoid mistakes – Naturally, human error occurs from time to time. However, avoiding inaccuracies is one thing to ensure less stress in the future
By seeking advice early, our tax experts can help take this pressure off.
Taking advantage of allowances
Personal tax allowances could help you reduce the amount of Income Tax you pay.
Some allowances can reduce the amount of income that you have to pay tax on whilst others provide an amount that you can set against your tax liability to reduce the amount of Income Tax you pay.
The UK tax allowances that you might be eligible for include:
- Personal allowance (main allowance)
- Marriage allowance
- Married couple’s allowance
- Tax relief for maintenance payments
These allowances are transferable, either completely or partially:
- Marriage allowance
- Blind person’s allowance
- Married couple’s allowance
To keep your finances in order as much as possible, it’s crucial to understand what allowances you’re eligible for.
By taking small but important the steps, you will be able to move closer to a relaxed and stress-free tax year.
If the pressure becomes too much, don’t panic!
Our team are here to help, from advice on what tax allowances you are eligible for to support completing your tax returns.
If you would like to maximise your allowances for the new tax year, contact our team today.
