Remember remember the 5th of...

April.

Not because it's the celebration of First Contact Day which marks the pivotal day in 2063 when humans first made contact with the Vulcans, but because it's the end of the UK tax year. Slightly less exciting for all you trekkies out there, but important nonetheless.

What is a tax year?

The UK tax year is different from the calendar year. It runs from the 6th April to the 5th April in the following year. So for 2019 / 2020 the tax year started on the 6th April 2019 and finishes on the 5th April 2020.

Why is it so important?

It's important for a whole lot of reasons, especially if you are self employed. It is also the end date on which your annual P60 (a record of the income you have earned and the tax you have paid) is calculated. It is also the the final day on which you can make the most of your personal tax allowances.

Your Multiply plan already takes your ISA and pension allowances into account, but just to recap the  important ones to know are:

1. Individual savings accounts (ISAs). Recently we published a handy guide to the ISA options out there and your allowances. You can read this here. If you have any spare cash lying around (after taking care of your emergency fund) make sure you're using your allowances. It's a top tax-efficient way to save.
2. Pensions contributions. The government tops up your pension contributions in the form of tax relief. But there's a cap. The cap is your gross annual income, or £40,000 - whichever is lower. Saving as much as you can into your pension makes the most of your income now, and also means you'll have more to enjoy after you retire.
3. Capital gains. This is the profit you make on selling or disposing of an asset, like a second home. It currently stands at £12,000 and is expected to rise to £12,300 in the new tax year. It is important to note that all individuals have the allowance, and there is scope for transferring assets between married partners in order to reduce your tax bill.

So what now?

Things are really uncertain out there, and you may be living on your emergency fund, but this is about controlling what you can. Looking after your own financial future has never been more important.

If you can take some time away from the chaos over the coming days, have a look at your allowances and make sure you have made the most of them for the current financial year.

Not sure where to start? Check your plan. Your plan takes your ISA and pension allowances into account, so take your recommendation actions to optimise your money automatically. Keep it up to date and you will always have unbiased, suitable advice at your fingertips.