Issue #59: What To Do Before The End of March

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The end of the tax year is almost here, and I bet you’re not ready😬

Did you know there’s a bunch of things you should probably (definitely) get sorted before midnight on April 5th?

And unfortunately, the taxman won’t send you a reminder to sort yourself out…

buuuut I will (ya welcome) 😌

SO, let’s not waste any time, and talk about everything that you need to do before the yearly timer runs out.

Before Midnight on April 5th You Must:

🤑 Max Out Your ISA Allowance

Each tax year, you can save or invest up to £20,000 in a Stocks & Shares or Cash ISA completely tax-free. If you have spare cash sitting around, putting it into your ISA ensures your savings or investments grow without being taxed.

Once April 5th passes, your unused allowance is gone - so use it while you can!

💰Pay Into Your Pension

You can contribute up to £60,000 or 100% of your earnings (whichever is lower) into your pension each tax year. Not only does this lower your income tax bill, but it can also help:

• Restore lost personal allowances

• Avoid the Child Benefit Tax Charge

• Give your retirement savings a major boost

If you’re not making the most of your pension contributions, you could be leaving free money on the table.

💸 Boost Your State Pension

If you have gaps in your National Insurance contributions, you have until April 5th to fill in missing years all the way back to 2006. After this date, you’ll only be able to go back six years.

It costs around £800-£900 to buy a missing year, but this could add over £5,500 to your state pension in the long run. If you’re eligible, this is a no-brainer investment in your future.

🧑‍🧑‍🧒‍🧒 Contribute to Your Child’s Junior ISA

If you have kids, don’t forget that they have an ISA allowance too! You can contribute up to £9,000 per tax year into a tax-free Junior ISA, helping to set them up for the future. Even small contributions can grow massively over time.

📈 Use Your Capital Gains Allowance

If you’re selling assets like stocks, property, or other investments, remember that the Capital Gains Tax (CGT) allowance is currently £3,000. If you don’t use it before April 5th, you lose it.

This could be a key strategy to reduce your tax bill when selling investments.

Look, I know - sorting out your finances isn’t exactly a top-tier Friday night activity. And trust me, I’d rather not be the boring one here… I swear I’m more fun than this. 😅

But you know what’s even worse than being bored? Losing money.

Sort it now, thank yourself later, and enjoy the peace of knowing you’ve squeezed every last bit of benefit from this tax year.

On a lighter note, it’s time to answer a question from one of you guys!

Today’s question of the week comes from reader Charlotte who sent us in the following:

Well Charlotte, am I glad you wrote in😅

I hate to be the bearer of bad news but you 100% need to inform your employer of this overpayment.

Unfortunately, the onus is on the employee to admit the overpayment (in writing) and take relevant action depending on what your employer decides.

So send an email, let them know the error, and please don’t spend that money until an agreement has been made!

If you don’t tell them and they find out (which they very easily might) and you refuse to pay, your employer can take you to court over it. That’s something we obviously don’t want. 😂

I hope it all gets resolved for you!

And that’s it for today friends. See you next week 😁

Got a question you’d like answered in next week’s newsletter? Just hit reply! Let me know your question and whether you’d like to stay anonymous.  

^{DISCLAIMER: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.}