How to Avoid Costly Mistakes Before the End of the Financial Year

06 March 2025

As the UK financial year-end approaches on 5 April, ensuring your tax affairs are in order is crucial. Rushing your tax return can lead to errors, missed deductions, and potential penalties. Here are some last-minute tips to help you avoid costly mistakes.

Check Your Tax Deadlines

In the UK, the self-assessment tax return deadline for online filing is 31 January, but the tax year ends on 5 April. If you owe taxes, ensure your payments are up to date to avoid penalties.

Maximise Tax Allowances and Deductions

Take advantage of available allowances before the tax year ends:

Personal allowance (£12,570 for most individuals in 2023/24)
ISA allowance (£20,000 – tax-free savings and investments)
Pension contributions (tax relief on contributions up to £60,000 or 100% of your earnings)
Charitable donations (eligible for Gift Aid, reducing taxable income)

Claim Work-Related Expenses

If you're self-employed or work from home, claim tax-deductible expenses, including:

Business equipment and travel costs
Home office expenses (if working remotely)
Professional memberships and subscriptions

Use Capital Gains Tax Allowances

If you plan to sell assets like property or shares, utilise the capital gains tax-free allowance (£6,000 in 2023/24) before 5 April to minimise liabilities.

File Accurately to Avoid Penalties

Ensure all income, dividends, and relief claims are correctly reported. HMRC penalties for inaccuracies can be costly, so double-check your return or seek professional advice.

Final Thoughts

By acting now, you can optimise your tax position and avoid last-minute stress. If unsure, consult an accountant to ensure compliance and maximise savings before the financial year ends.