A new tax year has begun and with it comes the chance to start your tax planning early, but why rush when there’s almost a year to go? Here are a few reasons:
- You can take advantage of various tax allowances available for the year, such as your Individual Savings Account (ISA) and pension annual allowances
- You’re likely to benefit from having your money invested for longer. Some interesting research1 has found that an investor could potentially lose up to £25,000 over 25 years by investing the maximum into their ISA at the end of the tax year rather than at the start
- If you can’t invest a lump sum, you can set up a regular payment into your ISA or pension, to spread the cost over 12 months
- Avoiding the last-minute rush allows you to get everything done
- You can establish a system for keeping track of all your income, expenses and other financial transactions throughout the year, helping you to budget
- There is time to research your options and get financial advice to make informed decisions.
Why not get the new tax year off to the best start – get in touch.
1Vanguard, 2023
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.
