Your tax planning guide

Reviewing your tax position before the 5 April year end is always important, but this year perhaps more so than ever.

Major changes to tax bands and allowances were announced over the course of 2022, and this means there may be some last-chance opportunities to make use of allowances at current rates and to access current tax bands. Similarly, there may be areas where you have discretion over the timing of income and it is worth establishing whether income is better taken this year or next.

Reviewing your personal, family and business affairs, as well as your longer-term plans, before 5 April 2023 and as you move forward into a new tax year could have a significant effect on your tax position. This is especially true for Scottish taxpayers, for whom higher and top tax rates are set to increase.

We’ve summarised the key areas you should consider now and as we move into the next tax year. To help the tax rules work to your advantage, it’s best to start planning and consult with your advisers as early as possible.

In this guide, we use the rates and allowances for 2022/23. Where we refer to spouse, this also includes registered civil partners.

1.0 Income tax rates and your allowances

In light of the latest Budgets in the UK, there are some key points to note when it comes to planning your personal taxes.

Find out more and read our top tips.

2.0 Director-shareholders

Recent and upcoming changes could have a significant impact on tax planning for business owners.

Find out more and read our top tips.

3.0 Sole traders and partnerships – basis period reform

The Government confirmed their plans in the Autumn 2021 Budget for the basis period reform which will take effect from 6 April 2024. This will change the way in which self-employed traders are taxed from 6 April 2024.

Find out more and read our top tips.

4.0 Your family

Looking at your household income as a whole, and planning efficiently to make optimal use of all the allowances available to each person, is the best way to ensure the tax position for your family is as strong as it can be.

Find out more and read our top tips.

5.0 Savings and investments

There are a number of different ways to save and invest your money, and the tax implications of each should be considered carefully when you are looking at which options are best for your circumstances.

Find out more and read our top tips.

6.0 Pension planning

The Spring Budget announced a range of changes to pensions which may impact your planning.

Find out more and read our top tips.

7.0 Inheritance tax

A vital, yet sensitive, issue for many people to consider is inheritance tax (IHT), and forward planning is central to mitigating any issues around inheritance tax. 

Find out more and read our top tips.

8.0 Capital gains tax (CGT)

Planning in this area is even more key than usual, as a phased reduction in the CGT annual exemption is on the horizon.

Find out more and read our top tips.

9.0 Gift Aid

Donations made under Gift Aid are of course fantastic for the recipient charity or community amateur sports club (CASC) – but they can also be a useful planning tool for the donor, even generating tax refunds for some taxpayers.

Find out more and read our top tips.

10.0 Selling your business

As a business owner, when the time comes, it’s important to plan the exit strategy for you and any other owners to ensure you do so in the most tax efficient way.

Find out more and read our top tips.

Got a question

If you are looking to action any of these tips in our guide or if have any other queries about tax and planning your finances for your future, our Private Client Tax team are here to help. Get in touch with a member of the team for an initial chat now.