The beginning of a new tax year brings changes to taxes, benefits and the cost of some essentials – and despite Covid-19, this year is no different.
There are many adjustments that will affect the money in your pocket. Here is a run through of the tax rules and allowances for Isas and pensions at the start of the 2020/2021 tax year:
A new tax year is an excellent time to spring clean your financial arrangements. Here’s our suggested to do list:
1. Maximise your tax-free saving allowances
If you’ve money to save, but haven’t used up your ISA allowance, make sure you take advantage of this tax-free form of investment. Equally, ensure you’re making the most of allowances on your pension contributions to cut your tax bill.
2. Take control of your pension arrangements
Whether you’re looking to set up a pension, save money on annual management charges or to reduce fees on expensive pension plans, review your current pension arrangements to see if they’re likely to help you achieve your retirement goals.
3. Review your investments
With fast changing world events affecting markets, it‘s imperative that your portfolio and pensions are strategically invested to profit from uncertainty and protect yourself from market shocks.
4. Plan for the future
Safeguard against unexpected future events spoiling your final wishes by setting up a trust alongside your will. Trusts come in a variety of forms and can help lower potential inheritance tax bills as well as give extra guarantees that loved ones will be looked after.
Appoint a lasting power of attorney so loved ones can act in accordance with your best interests and wishes as they are now. There are two different lasting powers of attorney to consider – one to look after your health and the other your finances.
Remember, when the financial landscape changes, to not respond would be a missed opportunity. We recommend you seek advice from a professional Independent Financial Adviser to review your current financial plan and ensure it is still working for you now and will continue to do so in the future.
Hamnett Wealth Management are following all the guidance and advice that the Government and Public Health England are giving and the team are now working from home and holding appointments via the telephone or video links. Please contact us on 0114 235 3500 for a free initial review meeting.