How can I reduce my tax owed last year that I realised while doing self assessment now?

dwtdil

I am doing my self assessment for 2019-2020 now before the Dec 31st deadline. While doing so, I realised that I owe tax. Little had I known that in the tax year itself, I would have planned to reduce my tax burden. But I am here now. I've had a few sleepless nights looking at options.  For example, I cannot backdate my pension contributions to reduce my overall taxable income. I believe it was possible 10 years back. Are there any other options?
 Any advice or suggestions from experienced folks here is explicitly solicited  

Dazed_and_C0nfused

Look at the Gift Aid section of the return and read the accompanying notes.  Carefully

And are you referring to December as you want any tax owed for 2019:20 to be collected via your 2021:22 tax code?

sheramber

I think the OP wants a way to reduce his tax due for 2019/20 to nil.

dwtdil

Dazed_and_C0nfused said:

Look at the Gift Aid section of the return and read the accompanying notes.  Carefully

And are you referring to December as you want any tax owed for 2019:20 to be collected via your 2021:22 tax code?

Thanks for your advice. I will consider charity although I would put it in my pension pot or my kids first. And yes, I am doing self assessment for 2019-2020. As I am doing it for the first time, I can apparently have the tax owed be taken off my remaining monthly pay in 2020-2021 if I do it by December 31st.

Dazed_and_C0nfused

Dazed_and_C0nfused said:

Look at the Gift Aid section of the return and read the accompanying notes.  Carefully

And are you referring to December as you want any tax owed for 2019:20 to be collected via your 2021:22 tax code?

Thanks for your advice. I will consider charity although I would put it in my pension pot or my kids first. And yes, I am doing self assessment for 2019-2020. As I am doing it for the first time, I can apparently have the tax owed be taken off my remaining monthly pay in 2020-2021 if I do it by December 31st.

You cannot have the tax collected through your 2020:21 tax code.  That is the current tax year which has nearly finished.

Your only options are pay direct to HMRC by 31 January 2021 or have it included in your 2021:22 tax code.

If you want to go for the tax code option then you must file your return by 30 December 2020, not 31 December.

unholyangel

dwtdil said:

Dazed_and_C0nfused said:

Look at the Gift Aid section of the return and read the accompanying notes.  Carefully

And are you referring to December as you want any tax owed for 2019:20 to be collected via your 2021:22 tax code?

Thanks for your advice. I will consider charity although I would put it in my pension pot or my kids first. And yes, I am doing self assessment for 2019-2020. As I am doing it for the first time, I can apparently have the tax owed be taken off my remaining monthly pay in 2020-2021 if I do it by December 31st.

It's the 30th of December, if you want it included in your code. It also needs to be within PAYE coding limits. Else the coding will fail and it will be due on 31st January.

It is the 21/22 year it will be coded. Not the 20/21 year. 

dwtdil

sheramber said:

I think the OP wants a way to reduce his tax due for 2019/20 to nil.

This is exactly what I wish.

Dazed_and_C0nfused

dwtdil said:

sheramber said:

I think the OP wants a way to reduce his tax due for 2019/20 to nil.

This is exactly what I wish.

I think you need to speak to a guy who may have been born on 25th December for that.  It's beyond our capabilities!

MDMD

Dazed_and_C0nfused said:

Look at the Gift Aid section of the return and read the accompanying notes.  Carefully

And don’t press submit until you do or
it will be too late!

Jeremy535897

Dazed_and_C0nfused said:

dwtdil said:

sheramber said:

I think the OP wants a way to reduce his tax due for 2019/20 to nil.

This is exactly what I wish.

I think you need to speak to a guy who may have been born on 25th December for that.  It's beyond our capabilities!

In theory it's easy: start a new business now and buy capital assets, creating a loss to carry back. For a general discussion on trading loss uses, see https://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowances/what-if-i-make-loss

Never allow the tax tail to wag the commercial dog, though.

swam

I am doing my self assessment for 2019-2020 now before the Dec 31st deadline. While doing so, I realised that I owe tax. Little had I known that in the tax year itself, I would have planned to reduce my tax burden. But I am here now. I've had a few sleepless nights looking at options.  For example, I cannot backdate my pension contributions to reduce my overall taxable income. I believe it was possible 10 years back. Are there any other options?
 Any advice or suggestions from experienced folks here is explicitly solicited  

Hi, did you manage to do anything about it ? We do have exactly the same problem? Please let me know if is still posible to put money on the pension pot to reduce tax from 2019/20. Thank you