Take a long view on planning

With the tax year end and the Budget  both behind us, you might think that the financial planning season is now closed until next March. If you do, think again. 

Financial planning is not something that can — or should — be restricted to just a single month. The April Budget proved that planning can be as necessary at the beginning of the tax year as at the end of it.

For example, if you are likely to be subject to the new rules phasing out the personal allowance for incomes of £100,000 and over from next tax year, the sooner you start to plan for that, the more scope there is to mitigate its effects. For instance if: 

•Your family circumstances change. An addition to the family may require a review of your life and health protection and a revision to your will. 

•Your employment conditions alter. A change of employment will normally be accompanied by a change of benefits. Your private provision may need to change to accommodate any benefit differences. 

•You increase or change your borrowings. Ideally, any new borrowings should be protected with appropriate life and health cover. 

•Your financial circumstances are due to change, eg because of an inheritance, redundancy or imminent retirement. 

An annual review is best suited to looking at how your existing plans have performed over the past year. For any interim changes, delay is probably best avoided. If you wait until your next annual review or until close to the end of the tax year, you and your finances could suffer. 

If you think that your financial planning warrants a summer review, for whatever reason, do contact us now and not wait until March 2010. 

The value of tax reliefs depends on your individual circumstances and may be subject to change in the future.