Tax does not just involve payments, but it also involves a person using the allowances that are available to them within a tax year. This includes saving into a pension or using an ISA as a vehicle to progress returns, whether this be through cash or investments. Regardless of what method Britons choose, taking pre-emptive action ahead of tax year end deadlines can be a sensible decision.
“If you have got a £20,000 ISA allowance for argument’s sake, or a £40,000 pension allowance, and if you have the money and can afford it, you really should be doing it now.
“Why wait? Why wait 12 months and potentially lose one year’s worth of return.
“Assuming you get a five percent return on a £20,000 ISA, that’s £1,000, so it really is an early bird saver for doing it at the beginning of the tax year, and you should be doing it as soon as possible.
“People who are savvy should be getting on and doing this, rather than waiting until the end of the tax year.”
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