Our Top 2023/2024 Tax Planning Tips

With the end of the 2023/2024 tax year fast approaching (5th April 2024), we thought we would put together some of our top tips to help you with your tax planning. 

What is tax planning?

Tax planning is the process of analysing your personal and business’ financial situation to reduce your tax responsibility. It involves understanding your income, expenses, investments and deductions to take advantage of any tax reducing schemes offered by the government. 

By strategically timing income and expenses, contributing to retirement accounts, and making tax-deductible charitable donations, you can legally minimise the amount of taxes you owe and bring home more of your hard earned income. 

Utilising allowances and reliefs

HMRC offer a range of allowances and reliefs that can reduce your taxable income. 

Pension Contributions

Pension contributions offer a great way to save for your retirement years while also reducing your end of year tax bill. If you are a high rate tax payer, you can increase your high rate tax band if you make pension contributions into a personal pension plan.  There are limits as to how much you can put in to a pension without incurring additional tax charges.

Charity Contributions

If you are a high or additional rate tax payer and make gift aid payments to charities, you can get an uplift in your high rate tax band, which means you pay high rate tax on less of your income.

Avoid hitting critical income thresholds

There are many different ways to reduce your tax responsibilities and many depends on your individual circumstances. 

If you need more bespoke help or guidance with tax planning for this tax year or future tax years, please get in touch with Turas Accountants. Our team of experts are dedicated to saving you money by applying all the tax saving schemes we know of to reduce your tax responsibility.