We’re coming to the end of February. Therefore, it’s the ideal time to be implementing a plan for your 2022 tax affairs. Start evaluating your tax planning efforts from 2021 and combining your findings with recent financial advancements. Them, you can stay confident in another year of success in your personal & professional life. As chartered accountants from Brierley Hill, we offer leading tax planning services.
In today’s article, we’re going to outline some of the critical areas to focus on for your 2022 tax plan. Our year end accountants will be focusing on Wills, tax allowances and pensions to optimise your affairs for the year ahead fully. You can ensure maximum financial security for you and your dependents by covering these areas.
4 Tax Planning Tips
Maximising ISA Allowances
Each year, you are allowed to maximise your tax-free ISA allowances. By doing so for the 2021/22 tax year, you can continue saving up to £20,000 in money, stocks and shares within your ISA accounts. ISA’s offer one of the most effective and efficient ways to save within your tax-planning.
Explore Other Allowances
There are several other tax allowances available to you for saving purposes. For instance, government schemes such as the Personal Savings Allowance, a tax-free allowance for interest payments. Also, suppose you have a spouse or are in a civil partnership. In that case, there is the possibility of saving money when structuring your finances as a couple by using both tax allowances. This is especially useful if one individual pays within a lower tax bracket.
Increase Pension Savings
Changes and reviewing your pension should always be included in your tax planning. For 2022, we recommend increasing your pension savings before April to avoid allowances withdrawing. Your annual allowance refers to the maximum amount you can save in a tax year, which is lost after 3 years.
Additionally, you must contribute maximum payments to your pension with the risk of pension tax relief restrictions in the near future. However, a £40K limit still stands at this time. What happens to unused pension allowance? Any unused allowance may be carried forward for three years, but this relief will no longer be available when unused.
Review Your Will
When it comes to inheritance tax planning in 2022, reviewing or creating your Will is vital for financial security and peace of mind. When should you write a Will? While it’s often seen as un-urgent, once you begin investing in property, a business, or begin to have children, you’ll want complete control of the distribution of your assets.
Before doing so, we recommend that you speak to a tax specialist, like ourselves at Thomas Nock Martin, to understand the efficiency of your plans which may not coincide with statutory intestacy rules and regulations.
Tax Planning Services At Thomas Nock Martin
By actioning the above in your tax planning this year, you’ll see an increased return in your savings. In addition, you will feel a sense of security for you and those close to you. If you need advice on how to get the most from your tax plan in 2022, get in touch with our specialist tax accountants today on 01384 261300.
As leading chartered accountants in Brierley Hill, we have the knowledge and expertise to guide and advise you on the latest tax planning recommendations, ensuring you’re always vigilant on best practices for your livelihood. If you found this blog useful, why not take a look at: Owing Tax To HMRC? Tax Collection Is Back