Sarah Bradford outlines some tax planning opportunities as the 2020/21 tax year draws to a close.
The tax year 2020/21 comes to an end on 5 April 2021. As the year-end approaches, it is time for clients to take stock and undertake some year-end tax planning.
While all the usual reviews should be undertaken, the impact of the Covid-19 pandemic brings additional considerations into the mix.
Don’t waste the personal allowance
The personal allowance for 2020/21 is set at £12,500, and it is a case of ‘use it or lose it’. If it looks likely that income for the year will fall below the level of the personal allowance, there are a number of options that can be considered to preserve the allowance, such as increasing income or delaying expenditure. In a family company scenario, so long as there
