Making full use of the tax year's allowances and exemptions could help you reap rewards over the longer term. Remember to use this year’s tax reliefs before it’s too late.
Here are the key areas to think about before the tax year ends on 5 April:
1. Income Tax
You can earn up to £12,570 (frozen until 2027/28) from income sources such as your salary or rental income without paying income tax – this is known as your personal allowance.
- Check you’re on the right tax code to make sure you’re not paying too much tax – you can find this by looking at your last payslip
- If you’re a business owner, check your balance of salary and dividends to get the most from your personal allowance and lower tax rate on dividends
- If you are married or in a civil partnership you may be able to save money by structuring your finances as a couple. If one of you pays no tax (or earns less than the Personal Allowance), you can transfer £1,260 of your allowance to the other person.