Mark N.’s Post

Tax hazards for savers 🤯 Tax is undoubtedly important, as it pays for essential services in our society such as schools and the NHS. There are, however, useful allowances which can be used to ensure you are not paying more tax than you need to.   Unwrapped money outside of an ISA or Pension could be subject to certain taxes. For example, in 2023, ISA's and Pension's saved Brits approximately 23 billion in taxes on their savings and investments.   A few years ago, interest rates were far lower than what we are currently experiencing, so you would receive far less interest on cash held in savings accounts. For example, if your bank were offering 0.5% interest in 2021, you would need £200,000 in the account to receive a level of interest that passes your personal savings allowance as a basic rate taxpayer. Higher rate taxpayers would have needed £100,000 📉   This year, we would have seen interest rates at least 10x higher than these figures. This means that even savings of £20,000 and £10,000 would leave basic / higher rate taxpayers susceptible to taxes on their savings 🤕   Additional rate taxpayers don’t even get a personal savings allowance, and the reduced additional rate threshold means more people are going to pay tax on ALL the interest they earn.   ISAs will be a suitable solution to this issue, as any interest earned within the wrapper is not susceptible to tax. Using your ISA allowance for this tax year may impact how much of your savings you can 'safeguard' from this tax liability 🔐 #tax #saving #finance

We will see a huge spike in the number of people paying tax on savings in 2024. This article explains how much tax you could pay and what you can do to reduce your HMRC bill.

We will see a huge spike in the number of people paying tax on savings in 2024. This article explains how much tax you could pay and what you can do to reduce your HMRC bill.

A rather rowdy Spring Budget today!! Here are some key points - 👶🏻 The Child Benefit High Income tax charge is being reformed so this will be based on household income rather than the income of each parent. This will change from April 2026. In the meantime from April 2024, the threshold will be raised to £60k, with a higher taper from £60k to £80k. 📉 The non-domiciled tax regime is to be abolished and replaced by a ‘fairer’ system meaning no tax on foreign income and gains for the first four years of UK tax residency for new arrivals. However, after four years they would have to pay the same taxes as a UK resident. 👨🏼💻 National Insurance cuts to take effect from 6th April 2024 – Employees NI will drop again to 8% from 10% and Self-Employed NI from 8% to 6%. 💡 The VAT registration threshold will increase from £85k to £90k.   🏠 The Capital Gains Tax rate on residential property for higher-rate tax payers will be decreased from 28% to 24% for disposals made on or after 6th April 2024. 🌞The Furnished Holiday Let Regime will be abolished meaning they will lose some of the tax advantages associated with a trading status including loss of Business Asset Disposal relief, increasing Capital gains from 10% to 24% & the ability to offset losses against total income. What are your thoughts on these key changes and how will they affect you?

According to the Financial Times almost 50% of people in the UK don't understand how personal tax works. In the UK income tax and national insurance is tiered Personal Allowance: £0 - £12,570 - Tax Rate: 0% - Everyone gets this tax-free allowance, meaning you don’t pay any tax on the first £12,570 of your income. Basic Rate: £12,571 - £50,270 - Tax Rate: 28% - Income within this band is taxed at 20%. National insurance taxed at 8%. Higher Rate: £50,271 - £125,140 - Tax Rate: 42% - Once your income exceeds £50,270, the amount above this is taxed at 40% up to £125,140. National insurance is paid at 2%. Between £100,000 - £125,140 -The Personal Allowance reduces if your income is over £100,000. For every £2 you earn above £100,000, your Personal Allowance reduces by £1, effectively creating a marginal tax rate of 62% in this band. when you include national insurance. Additional Rate: Over £125,140 - Tax Rate: 47% - For those earning over £125,140, any income above this threshold is taxed at 45%. and National insurance at 2%. Source: FT UK public struggles to understand tax. GOV UK tax rates and NI rates #UKTax #NationalInsurance #TaxPlanning #PersonalFinance

We will see a huge spike in the number of people paying tax on savings in 2024. This article explains how much tax you could pay and what you can do to reduce your HMRC bill.

We will see a huge spike in the number of people paying tax on savings in 2024. This article explains how much tax you could pay and what you can do to reduce your HMRC bill.

📢 Attention all taxpayers in Australia! Understanding your tax return in 2024 is crucial. Some taxpayers may receive a bill instead of a refund this year. 🧾 Stay informed to manage your finances effectively. 💼 #TaxReturn #FinancialPlanning #FortisAP

When do you need to declare the interest earned on savings? Interest rates rising have been good news for savers. Yet, it also means you could be liable for tax on the interest you earn. Read our blog, linked below, to find out what allowances you may make use of and how to pay the tax due.

Sneaky tax rises? It’s not guaranteed, as of course each of them could make changes in the ongoing budgets… but fiscal drag is a sort of “stealth tax” that could lead to you paying more tax even if the rates of taxation don’t change. So, the question is… what can you do to reduce your tax, given that you’re likely to pay more whoever wins, well there are a couple of easy places to start: 1️⃣ Use a Personal Pension When you pay into a Personal Pension, either regularly or as a lump sum, you get tax relief at your highest rate. Here’s a couple of examples; £400pm into a Personal Pension would give you; 👉🏻 £100pm in tax relief as a 20% tax payer 👉🏻 £200pm in tax relief as a 40% tax payer 👉🏻 £225pm in tax relief as a 45% tax payer £30,000 lump sum into a Personal Pension would give you; 👉🏻 £7,500 in tax relief as a 20% tax payer 👉🏻 £15,000 in tax relief as a 40% tax payer 👉🏻 £16,875 in tax relief as a 45% tax payer 2️⃣ Use your ISA allowance Returns from savings and investments can become liable to tax, either income tax or capital gains tax depending on what you have. Making sure you’re utilising ISAs will mean all money invested will get tax free growth. Of course, like all financial decisions, getting some advice will help you to get it right for you and your circumstances. #generalelection #moneytipsuk #financialgoals #financialplanning #tax #taxrelief