Tax planning in 2024

Jamie Richards, Director, Technology & Innovation Lead, KPMG

With 2023 behind us, the dust has now settled on the Autumn Statement published by the Chancellor back in November last year, and all eyes look to the future.

But with the tax return deadline of 31 January swiftly approaching, and the new tax year just around the corner on 6th April, we thought it would be useful to recap the key changes announced in the Autumn Statement 2023 and highlight some actions that might warrant some consideration over the coming weeks and months.

Autumn Statement Recap

On 22nd November 2023, Chancellor of the Exchequer Jeremy Hunt delivered the Autumn Statement, outlining the government’s economic plans for the United Kingdom. Whilst there were perhaps fewer major announcements than one might have expected based on the advanced press speculation (and with key focuses seemingly being stability and an easing of tax administration), there were nevertheless some important changes from a personal tax perspective:

The importance of managing your tax return correctly

If last year is anything to go by, then there’s a 50:50 chance that you might still have the submission of your tax return on your new year ‘to do’ list – as almost 50% of taxpayers didn’t file their tax return until January last year, with 800,000 people leaving it right to the last minute and filing on 31 January, and some 600,000 individuals missing the deadline altogether.

So, if you’re feeling virtuous right now, you can kick-back but, if you’re in the 50% of people with your UK tax return still requiring attention, then read on to ensure you avoid some of the common pitfalls and mistakes.

After payment is 30 days late

5% of tax outstanding

5 months after above charge
(6 months late)

A further 5% of
tax outstanding

6 months after above charge
(12 months late)

A further 5% of
tax outstanding

Tax year-end consideration

Whilst we’re still only in January, the end of the tax year (5 April) will soon be upon us. And with this in mind, it’s important to take some time to consider actions that should be taken before the year is out. By taking advantage of certain allowances, reliefs, and exemptions, you can potentially reduce your tax liability and maximize your savings. Here are some key considerations to keep in mind as you plan for the end of the tax year.

Closing thoughts

Whilst it might not be top of your ‘to do’ list, the start of the new year is a perfect time to be thinking about tax. And with a general election on the slate for 2024 and the uncertain political future (and uncertain tax environment) that brings, making sure your being proactive in managing your personal tax affairs, and putting yourself on the best possible footing for the future is of key importance.

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.