Preparing for Tax Year 2024/25: Tips and Tricks

The dawn of a new tax year often brings significant changes. The onset of the 2024/25 tax year is no exception.

Here’s how to navigate the upcoming tax year and make the most of your savings.

1. Getting Started with Tax Filing

If it’s your first time filing taxes, register with HMRC to receive your Unique Taxpayer Reference for future returns.

2. Understanding Your Tax Code

Know your tax code to calculate your income tax accurately. These codes, found on your payslip, are crucial for avoiding overpayments or underpayments.

3. Checking Your Tax Allowances

Capital gains tax allowance is now £3,000, down from £6,000. Consider using ISAs to protect your savings from taxes, with a new allowance of £20,000.

4. Self-Assessment Tax Returns

Self-assessment isn’t just for the self-employed. Anyone with additional income should file taxes. Check your eligibility on the UK Government website.

5. Tax Relief for Couples

Utilize Marriage Allowance to transfer part of your tax allowance to your partner, potentially reducing your tax bill by up to £252.

6. Claiming Child Benefit

Changes in child benefit eligibility raise the income threshold to £60,000, benefiting nearly half a million families.

7. Avoiding Tax Scams

Stay vigilant against tax scams, particularly during the new tax year. Report suspicious activity to HMRC and Action Fraud promptly.

Preparing for the new tax year is crucial for financial stability. By following these tips, you can navigate the changes and optimize your savings effectively.

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.