Approaching the End of 2022-23 Tax Year
This year, the last working day of the 2022/23 tax year is Wednesday 5th April.
The next Budget is announced for Wednesday 15th March 2023. It might be prudent to take any end of year tax planning actions prior to this date where possible.
Please note due to the time needed to process along with any associated calculations and paperwork,
the last day we expect to be able to process instructions for payments out will be
Monday 13th March 2023
and the last day we expect to be able to process instructions for pension contributions is
Wednesday 29th March 2023.
Whilst we will do our best, we cannot guarantee to be able to fulfil any requests in the current tax year if we receive a request after these date.
A further note will be released, following the Spring Budget in March, which will contain the exact figures for the tax allowances and bands for 2023/24. Please note this leaves time short to make further contributions.
Individual Savings Accounts (ISAs)
Ensure your 2022/23 ISA allowance has been fully utilised (if appropriate) up to £20,000 (which can be invested in cash if required). Any unused allowance on 5th April 2023 will be lost. If you have made withdrawals in this tax year, in some circumstances you may be able to return these to an ISA before 5th April, without impacting your current year allowance.
Planning using pension contributions
Consider whether there is any scope to review or make further contributions this tax year. For example:
Optimising personal tax relief within your current marginal income tax rate
There are limits to what an individual or their employer may contribute to a pension plan in a tax year.
Carry Forward Calculations
It is possible to look back and consider whether there is any unused Pension Annual Allowance in the 3 previous tax years (2019/20, 2020/21 and 2021/22). As long as you have been a member of a registered pension scheme at some point in each year being carried forward, it doesn’t matter whether or not you made any pension contributions in that tax year.
With the impending tax year end deadlines, it is important you take action as soon as possible. If you have any queries relating to your circumstances or wish to take action, please contact your Prosperis Adviser on 01423 223 640 or email advice@prosperis.co.uk