End of Tax Year Considerations

Posted on March 5, 2020

With a month to go before the end of the 2019/20 tax year, just some reminders for provisions to consider before the 5th April.

ISA allowance. If you haven’t used up your £20k this year, now is the time to think about moving funds into your ISA. You can put it straight into a cash ISA and then transfer it to another type after the year end without losing out or using up any of next year’s allowance.

Pension contributions. The annual tax free allowance is £40k. Particularly if you are a limited company there are significant tax savings to be made by making company contributions into your personal pension. To benefit you must make the payment as you can not make a tax-deductible provision in the accounts. There is a corporation tax saving of up to £7,600 per person to be made for 2019/20

It’s budget day next Wednesday. We’ll be listening and will communicate any adjustments to be made this tax year although we are not expecting any surprises. Then we can turn our attention to 2020/21.