With winter behind us and spring on its way, you might want to think about getting out in the garden or doing some spring cleaning around the house. But there are monetary considerations to take into account too. Here are the finances to check before the tax year ends.
Finances To Check Before The Tax Year Ends – Married Couples
While some may believe that getting married is more expensive, there are financial advantages to getting married.
The Marriage Allowance allows you to transfer a portion of your personal tax allowance to your husband, wife, or civil partner, potentially saving you hundreds of pounds per year.
As a lower earner, you must earn less than £11,500 each year, and you can save up to £230 in taxes over the length of the tax year (April to April).
The scheme began in April 2015, and once you’ve registered, you won’t have to do so again each year.
If you’ve forgotten to file a claim, you can have it backdated to April 5, 2015.
Savings
Every month, everyone should aim to save a little money. Whether it’s for a rainy day fund, a major vacation, or a goal you haven’t decided on yet.
Instead of putting your money in a low-interest savings account (my bank pays me a paltry 0.2 percent interest, so you can assume I don’t bother!) invest it. Make certain you’re taking advantage of a good deal.
You can obtain significant returns on your money by saving in an ISA, and you can save tax-free. Each tax year, you can shift your funds (much like you could switch your energy provider or vehicle insurance for a better deal).
Finances To Check Before The Tax Year Ends – Tax Allowances
Each tax year, you are given a tax-free Personal Allowance. You won’t have to pay tax on £11,500 under normal circumstances (though it will be higher if you claim Marriage Allowance – see tip above).
Your Personal Allowance assigns you a tax code that your employer will use to figure out how much tax you owe. If you only have one job, you should use the 1150L tax code. This will appear on your payslip as well as in your HMRC personal tax account.
If you’ve changed employment, you may have been placed on emergency tax (your tax code will end with a W1, M1, or X), or if you have two jobs, your tax code may be different.
Children
Don’t forget about your children while you’re taking advantage of your tax-free ISA investments. Junior ISAs work in the same way as regular ISAs, allowing under-18s to save tax-free up to £4,260. (April 2018-19).
Anyone can contribute to the account, not only the child or the parents. If your child’s grandparents, aunts, uncles, or third-removed cousins gift cash for a birthday, they might instead transfer the money to their Junior ISA to help save for their future.
Dealing With Bills
Bills tend to rise around this time of year, so you’ll need to look into adjusting your council tax payments (because when doesn’t it?!) Check to see if your cell phone cost has increased in line with inflation, and see if your power bill has increased due to the colder winter months.
Rewrite your budget, making sure to include all of your incomings and outgoings.
Examine your bank statement for direct debits and standing orders to ensure you’re not paying for a subscription you’re no longer receiving, and make sure everything is in order.
