We’ll show you which products are the most tax efficient so you can make the most of your savings and investments, and minimise how much tax you pay.
All of the capital gains, interest, and dividend income from ISAs are completely tax free.
You cannot contribute more than £20,000 to your ISAs, but you can split this allowance between multiple types of ISAs (cash, stocks, etc.) so you can diversify and reduce your risk.
Investing in a private pension gives you many tax advantages:
Use this pension tax relief calculator to see how much tax relief you can get.
HMRC will basically give you back the tax that you paid on the income that you used for your pension contribution.
In your case you earned £49,000.00 and contributed £1,000.00 to your pension.
You get £250.00
Your pension provider will automatically get this for you and add it to your pension pot.
Your pension pot will now be worth £1,250.00.
You can pay up to £2,880 each tax year into your child’s pension and HMRC will automatically add 25% to this as a tax relief.
When your child turns 18 they simply become the owner of the pension.
The Enterprise Investment Scheme is an incentive set up by UK government to encourage individuals to invest up in small businesses.
It offers quite a few tax reliefs to investors:
You can invest up to £1,000,000 per tax year.
SEIS is almost identical to EIS, except for two things:
A Venture Capital Trust (VCT) is basically a special kind of investment fund:
VCTs can also help you save on tax:
Unlike EIS/SEIS, if your VCT investments make a loss, you can’t use this to reduce your CGT bill from other investments.
The first £1,000 (or £500 if you’re a higher rate taxpayer) that you earn from interest from savings accounts or P2P lending platforms are tax-free.
If you want to invest in stocks but you’ve reached your ISA allowance, choosing shares of companies that you will hold on to for a long time and which will pay dividends yearly might be a better idea.
The first £2,000 you make from dividends is tax-free.
You can use this dividend tax calculator to see how much tax you need to pay on the rest.
Tax on dividends is calculated pretty much the same way as tax on any other income.
The biggest difference is the tax rates – instead of the usual 20%, 40%, 45% (depending on your tax band), you’ll be taxed at 7.5%, 32.5%, and 38.1%.
The numbers look strange but the reason is simple: the company paying you those dividends already paid corporate tax, so in the end it should work out to a similar tax rate.
This is mostly relevant if you own your company and trying to decide what is the best way to pay yourself: dividends or salary. Keep in mind that for salary you also need to pay National Insurance.
In your case you earned £3,000.00 in dividends and £29,000.00 in other income (this can be salary, rent, etc.).
You don’t pay income tax on the first £12,500.00 that you make in other income (this excludes dividends).
You pay 20% on the first £16,500.00 after the personal allowance.
You don’t pay any dividend tax on the first £2,000.00 you make in dividends.
You pay 7.5% on the next £1,000.00
Call HMRC on 0300 200 3300 so they can change your tax code – you’ll pay the dividend tax through your salary or pension.
If you normally file a tax return, you can also pay dividend tax through it.
You don’t have to pay Capital Gains Tax on:
Also, if you make a loss when you sell an asset, you might be able to deduct this from other capital gains and reduce your CGT bill.
Get your self assessment prepared for you online by certified accountants for £119
Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.
You can talk to one of our tax assistants at any time during the process when you have any questions.
We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.
Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.
We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.
We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.
Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.
UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.
Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.
TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.
At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.