As the new tax year begins, it’s an ideal time to assess your finances and plan for the year ahead. Whether you’re saving for a specific goal or simply want to improve your overall financial health, there are several steps you can take to set yourself up for success.

Here are some key financial planning tips to help:

• Review Your Budget. Take some time to look at your income and expenses from the previous year and see where you can make adjustments…. it’s time to cut back on unnecessary expenses! Consider using a budgeting app on your phone or a simple spreadsheet to help you track your expenses and stay on top of your financial goals.

• Set Financial Goals. These could include reducing debt, increase your savings or building up an ‘emergency fund’. Whatever your goals may be, make them specific, measurable, and achievable. This will help you stay motivated and focused throughout the year.

• Maximise ISA Contributions. For the 2023/2024 tax year, the annual ISA allowance is £20,000. If you’re not able to contribute the maximum, aim to increase your contributions if you can afford it.

• Review Your Pension Contributions. Make sure you’re contributing enough to meet your retirement goals. The annual pensions allowance is now £60,000 for 2023/24 but this could be higher if you have unused allowances from previous years (subject to earnings).

• Tax Planning. Make sure you’re taking advantage of any tax deductions or credits that apply to your situation. This could include deductions for charitable donations or claiming for higher rate tax relief on pension contributions. The latter is particularly relevant if you are a higher rate taxpayer and making pension contributions via PAYE, as higher rate tax relief is not automatically paid.

The new tax year is an excellent time to assess your finances and plan for the year ahead. Financial planning is an ongoing process, so make sure to check in regularly throughout the year and make adjustments as needed.

What Next?

If you would like to discuss your situation please feel free to contact Charlotte Elgar or your existing Financial Planner at CBW Financial Planning Limited.