The countdown is on: Your tax year end checklist

The tax year ends on April 5 and the clock is now ticking, with just a short period of time remaining for people to maximise their use of this year’s allowances.

To help you check if you’ve done all you can when it comes to planning, we’ve compiled this handy list of things that, business owners, individuals and their families might want to look at:

Dividend taxation: Have you utilised your Dividend Tax Allowance of £5,000 and are you aware of the reduction effective from April 2018 to £2,000?

Capital Gains: Have you used your annual exemption for 2017/18 of £11,300?

Capital Allowances: Have you purchased any required items before your business year end to ensure these allowances are available a year earlier?

Research & Design credits: Have you claimed for all your eligible R&D projects to take advantage of the significant benefits available? HMRC will allow an extra 130 per cent of identified costs to be written off against taxable profits.

Inheritance tax: Have you used your annual exemptions?  The standard allowance is £3,000 per annum plus last years can be carried forward if unused.

Pensions: Have you used the carry forward rules in order to benefit from any unused allowances from the three previous tax years?

Charitable donations: If you are a higher rate taxpayer make sure these are done under Gift Aid to obtain additional tax relief.  The charity will also be able to obtain basic rate tax from HMRC.

Personal Allowances: For every £2 that your adjusted net income is above £100,000, the tax free personal allowance is reduced by £1, down to £Nil.  Pension contributions and Gift Aid can help reduced net income and preserve allowances.

ISAs: Have you used your maximum allowances?  Consider junior ISAs for children and grandchildren.

Enterprise Investment Scheme (EIS) and SEED EIS: If you are looking for investment opportunities these offer income tax relief, capital gains tax deferral and potentially tax free gains. You need to seek financial advice on this matter due to the risk.

To discuss any of the issues above, or to talk about any aspects relating to tax matters please contact me on 01772 444 0000.

As Senior Tax Consultant at WNJ I have expertise in trusts and work on a wide range of other tax matters from partnership structures, corporate transactions to Enterprise Investment Schemes. I also advise on capital gains tax and inheritance tax.