Bundle of £20 notes wrapped with red ribbon

Make gifts to save tax before April 5th

If you are a higher rate taxpayer consider making charitable payments under Gift Aid so that you obtain additional tax relief. The charity will also be able to reclaim the basic rate tax from HMRC. Note also that Gift Aid can be carried back for relief in the previous tax year (so useful if you were a higher tax payer in 2012-13).

Have you made use of your annual Inheritance Tax exemptions? The general annual exemption is £3,000 per donor (plus last year’s £3,000 exemption if you did not use it). Also consider making regular gifts out of your income to minimise the growth of your estate that will be liable to IHT.

Arrange a free consultation to discuss this and other tax saving ideas.

Money box with key labelled Pension Fund

Maximise your Pension contributions before 5th April

Making pension contributions before the end of this tax year can help mitigate your tax liability. Such contributions attract tax relief at your highest marginal rate, be that 20%, 40% or 50%.

This form of tax planning has become even more appealing with the announcement in this weeks budget of plans to make it easier to take benefits in retirement. It may no longer be necessary to purchase an annuity, or suffer punitive tax for income drawdown.

Take advantage of the pension carry forward rules in order to benefit from any unused allowances from the previous three tax years. This is generally the difference between the annual contribution limit (currently £50,000) and the pension input each year and can be added to your relief for 2013/14. Note that the annual pension allowance reduces to £40,000 from 6 April 2014.

Contact us if you require guidance on end of tax year planning.

ISA (Individual Savings Account ) made up from scrabble tiles

Maximise your ISA allowances

Individual Savings Accounts (ISA) enjoy freedom from income tax and capital gains tax. Your maximum annual investment in ISAs this tax year can be £11,520 (up to £5,760 of which can be saved in a cash ISA).  Your investment needs to be made on or before 5th April 2014.

Spouses each have their own allowance, so if you’re married consider investing up to £23,040.

In addition have you thought about investing for your children (or grandchildren) by setting up a Junior ISA? In the current tax year, you can invest £3,720 into a Junior ISA for any child under 18 who does not already have a Child Trust Fund.

Photo of Michael Hinett presenting champagne to David Morphew

The Winner!

Congratulations to David Morphew, lucky winner of our Champagne draw!

David runs a great photography business based in Warwick: www.davidmorphew.com

Thanks to all of you who entered the draw via our website or by following us on social media, like David (who is now receiving useful tax-saving tips from us via Twitter).