[H1]Hitchin Nub News is delighted to provide a platform for expert financial commentary through our innovative partnership with Lyndhurst Financial Management.[H1]

Lyndhurst support our coverage of the local community by being our headline sponsor - click on the banner above for more.

Founded in 1992 operating from Harpenden and having acquired an office in Hitchin in 2015, the firm has supported the local community for many years.

They value the contribution their staff make to helping Hitchin, Harpenden and the surrounding areas such a thriving place to live and work.

So, read on for the latest from their highly-respected development director Geoff Newman.

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"If you fail to plan, you are planning to fail"

I'll admit it, I like to plan in advance. As Benjamin Franklin said 'If you fail to plan, you are planning to fail' so when Hicks & Co, accountants in Hitchin and Harpenden informed me that I still needed to complete a tax return for the last financial year I was horrified that I had forgotten to plan for that.

However, with their expert assistance I managed to make the January 31 deadline and avoid any potential fines.

And so, as another tax year end approaches, it's important to finalise your 2021/22 tax planning to reduce your obligations wherever possible.

The current tax year started on 6 April 2021 and ends on 5 April 2022.

Reviewing your tax affairs now will enable you to make the most of any allowable deductions and strategies available to minimise or mitigate a potential tax burden.

[H2]So here are some tips to help you get ahead on managing your tax affairs:[H2]

Check your PAYE tax code:

It's important to check your tax code. Your tax code is based on the amount of tax you should be paying and the amount you can earn before tax applies.

The tax code is the identifier that tells your employer how much tax should be deducted from your salary each time you get paid.

If you have multiple employers or pension providers, you may get more than one tax code. If you're on the wrong one, you could be paying HM Revenue & Customs (HMRC) more than you ought to be.

Transfer part of your personal allowance:

Married couples and registered civil partners are permitted to share 10% of their personal allowance between them.

The unused allowance of one partner can be used by the other, meaning an overall combined tax saving.

The amount you can transfer is £1,260 for 2021/22 and a transfer is not permitted if the recipient partner pays tax at a rate higher than the basic rate of 20%.

Contribute up to £9,000 into your child's Junior ISA:

The fund builds up free of tax on investment income and capital gains until your child reaches age 18, when the funds can either be withdrawn or rolled over into an adult ISA.

Relatives and friends can also contribute to your child's Junior ISA, as long as the £9,000 limit for 2021/22 is not breached.

Utilise any capital losses:

If you realise capital gains and losses in the same tax year, the losses are offset against the gains before the capital gains tax exempt amount (£12,300 in 2021-22) is deducted.

Capital losses will be wasted if gains would otherwise be covered by your exempt amount.

Consider postponing a sale that will generate a loss until the following tax year or, alternatively, realise more gains in the current year.

Maximise pension contributions:

Pension contributions can reduce your tax liability by increasing the tax thresholds.

The annual allowance for 2021/22 is £40,000. To avoid an annual allowance tax charge, the pension contributions made by yourself, and by your employer on your behalf, must be covered by your available annual allowance.

If you haven't used all your allowance in the last three tax years, it might be possible to pay more into your pension plan by 'carrying forward' whatever allowance is left to make the most of the tax relief on offer, though bear in mind the amount is still capped at 100% of your earnings.

Use the IHT marriage exemption:

If your son or daughter is about to marry, you and your spouse can each give them £5,000 in consideration of the marriage, and the gift will be free of Inheritance Tax.

The marriage exemption can also be combined with your £3,000 a year Inheritance Tax exemption to allow you to make larger exempt gifts.

You can make an Inheritance Tax-free gift of £2,500 for a grandchild's wedding. Registered civil partnerships attract the same exemptions.

LOOKING FOR TAX PLANNING ADVICE?

Few of us can claim to be experts in everything, which is why it's important to enlist the help of a financial professional – especially when it's about something as important as our tax. Don't "fail to