Year-End Tax Planning: 10 Actions to Take Before 5th April

Every UK adult can save up to £20,000 per year in an ISA, completely free of Income Tax and Capital Gains Tax. If you haven't used your full allowance, you have until 5th April. Unused allowances cannot be carried forward.

Pension contributions attract tax relief at your marginal rate. For a higher-rate taxpayer, a £10,000 pension contribution effectively costs just £6,000 after tax relief. For limited company directors, employer pension contributions also reduce your Corporation Tax bill and are not subject to NI.

The CGT annual exempt amount is now just £3,000. If you have assets with gains, consider crystallising them before 5th April to use this year's allowance. Married couples can transfer assets between themselves to use both allowances.

For limited company directors, the optimal salary/dividend split should be reviewed each year as thresholds change. With the dividend allowance now at just £500, the calculation has shifted. Our accounting team can run the numbers for your specific situation.

If you're planning to buy equipment, software, or other business assets, consider purchasing before 5th April to get the tax relief in the current year. Under the Annual Investment Allowance, you can deduct 100% of qualifying expenditure.

Review your records for any business expenses you may have missed — home office costs, mileage, professional subscriptions, training courses. Our bookkeeping service ensures nothing slips through the cracks.

Gift Aid donations are treated as if you've already paid basic rate tax. Higher-rate taxpayers can claim additional relief through Self Assessment. Donations made before 5th April can be carried back to the previous tax year.

If your turnover is approaching the £85,000 VAT threshold, consider whether voluntary registration might benefit you. Conversely, if you're already registered, check whether a different VAT scheme (flat rate, cash accounting) might be more advantageous.

Gaps in your NI record can affect your State Pension entitlement. You can check your record on the HMRC website and pay voluntary Class 3 contributions to fill gaps. The deadline for filling gaps going back to 2006 was extended — check your position now.

Use the year-end as an opportunity to review your overall tax strategy. Are you in the right business structure? Are you making the most of all available reliefs? Book a planning meeting with our Essex accounting team to set yourself up for a tax-efficient new year.