A few ways to save tax before the end of the tax year
The end of the tax year is nigh. You have until midnight on 5 April to take advantage of various tax allowances or risk losing them.
The end of the tax year is nigh. You have until midnight on 5 April to take advantage of various tax allowances or risk losing them. “Many savers may be nursing losses as a result of the recent heavy stockmarket falls and not feel inclined to think too much about putting their finances in order…but at a time when money is likely to be tight, it makes sense to make the most of any opportunities to save tax where you can,” says Mark Atherton in The Times.
You can put £20,000 into an individual savings account (Isa) every year divided between cash and investments. Many markets now appear cheap enough to yield healthy long-term returns.
Next, consider if you have any gains outside your Isas you want to cash in. “With the stockmarket in turmoil… taking profits can seem slightly perverse, but it is vital to claim any tax relief,” says Atherton. You can make up to £12,000 a year in capital gains before tax is due. Married couples can cut their tax bill by claiming the marriage allowance. If one partner is a basic-rate taxpayer and the other earns below the £12,500 personal allowance the lower earner can transfer 10% of their allowance to the higher earner. This means a tax saving of up to £250 a year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Finally, most of us, except for top-rate taxpayers, have an annual pension contribution allowance of £40,000. You can also carry over unused allowances going back three years.
Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings and credit cards to pensions, property and pet insurance.
Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.
Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping among many other titles both online and offline.
-
Private school fees soar and VAT threat looms – what does it mean for you?
Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
By Katie Williams Published
-
Best and worst UK banks for online banking revealed
When it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
By Oojal Dhanjal Published
-
Act now to bag NatWest-owned Ulster Bank's 5.2% easy access savings account
Ulster Bank is offering savers the chance to earn 5.2% on their cash savings, but you need to act fast as easy access rates are falling. We have all the details
By Marc Shoffman Last updated
-
Moneybox raises market-leading cash ISA to 5%
Savings and investing app MoneyBox has boosted the rate on its cash ISA again, hiking it from 4.75% to 5% making it one of top rates. We have all the details.
By Ruth Emery Published
-
October NS&I Premium Bonds winners - check now to see what you won
NS&I Premium Bonds holders can check now to see if they have won a prize this month. We explain how to check your premium bonds
By Kalpana Fitzpatrick Published
-
October’s NS&I Premium Bond winners revealed - have you scooped £1 million?
Two lucky NS&I Premium Bond winners are now millionaires this October. Find out here you are one of them
By Kalpana Fitzpatrick Published
-
The best packaged bank accounts
Advice Packaged bank accounts can offer great value with useful additional perks – but get it wrong and you could be out of pocket
By Tom Higgins Last updated
-
Bank of Baroda closes doors to UK retail banking
After almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
By Vaishali Varu Published
-
The best options to earn cashback on spending
From credit cards and current accounts to cashback websites, there are plenty of ways to earn cashback on the money you spend.
By John Fitzsimons Published
-
Should you retire abroad?
Check the regulations governing pension savings carefully before you decide to retire abroad.
By David Prosser Published