When we think of New Year, many will instantly think of New Year’s Eve, singing Auld Lang Syne, the New Year hang over and more importantly the New Year Resolutions.
When it comes to the new tax year, the glorious 6th April often passes by unnoticed by most people, other than accountants, tax advisers and IFAs.
So why should we be taking note of the new tax year? Well for a start the new tax rates apply and so people need to take into account how much will be appearing in their pocket or their staff’s pockets at the end of the month. From next year it will also be the point that the minimum wage annual increases come into play.
For those regular savers and investors, the New Year means a new allowance for the following 12 months, so that they can top up their ISAs or think about putting more money into their pensions.
People selling investment property and other assets will have been carefully timing multiple disposals to ensure that they benefit from their new annual exemption. Thought needs to be given to any future planned disposals to also take into account the falling rates of Capital Gains Tax.
Ideally business owners with a tax year, year-end won’t have left it until this point to start tax planning for the last year, as by now, it is too late. Their attention can shift however to reviewing the last year’s performance, planning the year ahead and also getting their papers together for the accountant. After all, who wants to leave it until January next year to find out what the tax bill is going to be!
So will anyone have any New Tax Year resolutions? I know we have many clients who promise to get their books to us quicker this year, but realistically for a resolution to be effective, there has to be something in it for you.
The new calendar year is when many people look towards the detox and loosing those few extra pounds put on over Christmas. Perhaps spending a little more time on the business figures might ultimately focus the mind and aid future growth of the business. I know we have seen this time and again for many of our growing clients.
So, Happy New Tax Year. I hope this one is a prosperous one!