Autumn Leaves and Tax Relief: Why Autumn 2024 is the Perfect Time for Financial Planning in the UK
As the crisp autumn air sweeps across England and the leaves turn golden, it’s not just a change in the season—it’s a reminder that 2024 is winding down. Autumn presents an ideal opportunity to take stock of your financial health and ensure that you’re in the best position as the calendar year closes. Whether you’re a business owner or an individual, here are some UK-specific reasons why autumn 2024 is the perfect time to get your financial affairs in order.
1. Maximising Your 2024 Tax Allowances
In the UK, the tax year runs from April to April, but autumn 2024 is still a crucial time to review your finances. By planning ahead now, you can make the most of tax reliefs and allowances before the end of the year. From topping up ISAs to optimising pension contributions, there’s plenty you can do now to reduce your taxable income.
Tip: Higher and additional rate taxpayers in 2024 should consider pension contributions to take advantage of tax relief while also reducing their overall income tax liability. Similarly, if you’re a business owner, take time to review whether you can make any capital purchases before the end of 2024 to utilise the Annual Investment Allowance (AIA).
2. Getting Ahead of Self-Assessment Deadlines for 2024
For individuals and sole traders who need to submit a self-assessment tax return, January 31st, 2025 might seem far away, but autumn 2024 is a great time to start preparing. By getting your tax return in order now, you’ll avoid the last-minute rush and reduce the risk of penalties for late submission. You can also start setting aside funds for any tax due, giving you more time to budget and plan ahead.
Tip: If you’re unsure about what expenses you can claim or how to optimise your 2024 return, seeking professional advice now can ensure you maximise your deductions while staying compliant with HMRC guidelines.
3. Budgeting for the 2024 Festive Season
The holiday season often brings a wave of extra expenses, whether it’s for Christmas shopping, travel, or entertaining. Autumn 2024 is the perfect time to set a budget for the festive period to avoid overspending. A clear plan for your holiday spending will help you manage your finances more effectively, reducing the likelihood of starting the new year with debt.
For businesses, especially retail and hospitality, the festive season is critical for revenue. Now is the time to ensure your cash flow is ready for any uptick in seasonal demand, and to plan any seasonal promotions, stock levels, and staffing requirements.
4. Preparing for the End of the Financial Quarter in 2024
As autumn progresses, businesses reach the end of the third quarter, making it an ideal time for a financial review. Are your business goals on track? How are your profit margins looking? Reviewing key performance indicators in autumn 2024 gives you time to course-correct if necessary and adjust your strategies before the financial year closes.
Tip: This is also a great time for businesses to take advantage of any tax relief schemes available. In England, small businesses should ensure they are claiming Small Business Rate Relief, while companies engaging in research and development might explore R&D tax credits.
5. Planning for the 2025-26 Tax Year
Although the new tax year in the UK doesn’t begin until April 2025, autumn 2024 is a good time to start thinking ahead. What are your savings goals? Are you making the most of your personal and business allowances? Whether it’s capital gains tax allowances, inheritance tax planning, or simply ensuring you’re contributing enough to your pension, starting these discussions now can save you time and money later.
Tip: Consider revisiting your Will or estate plans to ensure that your assets are structured in the most tax-efficient manner for inheritance tax purposes. If you’re a landlord, it’s also a good time to review your property income and expenses to prepare for any changes in mortgage interest relief.
In Conclusion
Autumn 2024, with its beautiful falling leaves, reminds us of the importance of shedding old habits and preparing for the future. It’s an ideal time to review your financial situation, optimise your tax liabilities, and set yourself up for success in the new year. By taking these steps now, you’ll enjoy a more peaceful end to 2024 and be well-prepared for the challenges and opportunities of the coming tax season.
Call to Action: Need help with your year-end tax planning or preparing your 2024 self-assessment? Contact us today for expert advice tailored to your needs. Let’s make the rest of 2024 as financially fruitful as possible!