"It will prove invaluable when completing your tax return to consider what you can include that is allowable for tax purposes."
"Certain deductions could be applied now which will serve to reduce profits and any corresponding tax which is an immediate win, but other deductions may be more relevant later on so don’t disregard any expenditure.
"All too often we forget what we have spent, when we spent it and why over the passage of time so keeping clear records is so important and a great way of claiming what you can to reduce your tax burden.”
3. Check if the client is eligible for tax-free childcare
If you have children and pay for nursery, childminding, or wraparound care, you may be eligible for tax-free childcare.
Under this scheme, the government will pay 20% towards your childcare costs up to a maximum of £2,000 per year, per eligible child.
Tax-free childcare is just one of several childcare schemes available – working parents may also be eligible for varying amounts of free childcare and tax credits. It might be useful to make your client aware of this to see if they are eligible.
Matravers said: “It is so important to explore all benefits available via the Government and through your employer when you have children.
Often employers support the Government schemes as part of a flexible benefit package, so do your homework on this, particularly if you are co-parenting and sharing the childcare."
"Entitlement to 30 hours of free childcare a week for eligible young children can assist greatly with a transition back into the workplace for new parents, without the financial worry."
4. Pay into a pension
Most UK taxpayers get tax relief on the money they pay into a pension fund, which means the government tops up payments into a client’s retirement savings pot.
For basic rate taxpayers, the top-up is 20 per cent - HMRC will add £20 for every £80 you pay into a pension fund.
As well as this form of tax relief, saving for retirement can actually cut the annual tax bill for those earning over £100,000 a year.
This is because the personal allowance (the tax-free annual earnings allowance currently set at £12,570) is gradually reduced by £1 for every £2 earned over £100,000.
Pension contributions reduce a client’s taxable income, so if these contributions keep their annual income below £100,000, they will benefit from the maximum level of personal allowance.
Paying more into a pension pot can have implications for child benefit, too. Currently, monthly child benefit payments are gradually reduced if the higher-earning parent receives over £50,000 annually, and by the time the income hits £60,000 any entitlement disappears completely.
