4 Checklist Points on End of Year Finances

Find out what to do before the end of the financial year is officially here.

12:41 25 March 2013

The financial end of the year usually brings mixed feelings for people depending on the type of tax burden that is expected. Review these four suggestions to help you make the most of your year’s end and begin the next fiscal year headed in the right direction.

 

• Maximize your limits — this refers to accounts such as ISA’s which usually have a limit as far as the amount of money which can be contributed in a year. If you haven’t already set aside the maximum amount, and you have the ability to do it, make sure it gets done quickly.

 

• Check Pension — there are limits imposed on pension contributions, see if you are able to make more contributions, and what you can also realistically expect for the following tax year.

 

• Inheritance tax — the regulations regarding this can change, but there are gift limits so if there’s someone you’d like to help, the financial end of the year is perfect timing, and in the long run gifts reduce the amount your inheritance is worth, thus reducing or potentially eliminating inheritance tax.

 

• Check records — make sure if you have your own business, or do any kind of self-employment activity even if it is in addition to another full-time job, that you keep excellent records. Make sure you have everything you need to fill out your tax return

 

The financial end of the year doesn’t need to be too much of a pain, but a little planning and review certainly goes a long way. Checking these four items on a yearly basis also means that any given year you’ll have a good idea of where your overall finances stand and can make corrections whenever necessary, which is always beneficial.