Is there anything I need to do with my business before the end of the tax year on 5th April 2017? (UK)
Now this is the time of year accountants and financial advisers get very excited, they are also quite often busy.
It is all to do with Tax Allowances, which I know sounds really boring but it is essentially the government’s way of encouraging us to do things , like savings and pensions and other things like that.
So before you glaze over and switch off. I have made it as simple as possible. So you can start your journey of understanding these things, because they are important and will provide for your financial future.
Let’s face it, most of us don’t get up in the morning going yeah! Let’s sort out our savings and pensions and tax allowances, how exciting!
So simple, so clear, let’s go.
If you bring home to you, less than £11,000, from all your jobs and businesses. That’s £11,000.
Here are my suggestions to consider.
Putting some money in an emergency savings account – you know it is important, well now is the time to create or add to your emergency savings.
To check your eligibility for the state pension, before you go ‘nooo, not relevant’ and dismiss it.
You only need 30 years of national insurance now to be eligible and if you are self-employed, it is actually a really good investment.
One they are probably going to change in a few years, so worth looking at this year.
This is the one thing I recommend you do – get a statement from the government on where you are with your state pension. click here to apply
So check out your state pension as it is a very good investment particularly when you are self-employed.
Married Couples Allowance
I know it sounds archaic but was brought in by David Cameron and not of lot of people know about it.
It will give you £220 a year, so worth considering. You can just apply online.
You are eligible if one partner is earning less than £11,000 and one partner is earning over £11,000.
Click here to apply.
I know, but you want to know these things, don’t you!
So that’s clear, if you are earning £11,000 or less. You can find out more on www.gov.co.uk
Let’s look at if you bring home over £11,000?
I have a few more tips to include.
The more you earn, the more important these things are to look at.
Back to savings again – it is even more important now, that you have emergency savings.
When you earn over £11,000 you might want to put the money into an Individual Savings Account (ISA).
You will probably see lots of TV advertising and print advertising saying ‘Use your ISA Allowance’.
It is a place to put savings where we don’t get taxed, so well worth it if you pay tax, that’s an ISA.
In fact, the government has started a new Lifetime ISA if you are under 40 to encourage young people to save. It is even better than a standard ISA.
The second thing is a personal pension.
It is incredibly tax efficient to put money in a pension.
The government actively wants us to do it.
So once you start earning over £11,000 and definitely when you get to £43,000, you want to be putting money in a pension and providing for your future in some way or other.
Would recommend a financial adviser here or starting off with one of the simple ones, again check out https://www.gov.uk/personal-pensions-your-rights
This is a business one
If you are about to make an expensive purchase anyway? It can be worth consciously deciding which tax year to buy it in, either before or after the 5th of April.
Accountants get quite excited about this.
So that is it, not perhaps as complicated as you thought?
As I said, we never wake thinking, ‘let’s do the really complicated stuff today’ but it is worth it.
On this blog, as well as including the exciting things, I wanted to cover some of the more difficult things, people avoid, put off and generally blank!
The action for the end of the year,
well there is nothing you have to do but providing for your financial future is highly recommended.
Take one action today towards your future. Put some money in savings and/or order your state pension statement.
Thank you very much for watching this, I have much respect for you watching these videos, particularly when they are about more difficult subjects.
Thank you. Jenny