With the arrival of April’s payslips in people’s pockets, the recent rise in National Insurance will be clear to see.
As of this month, individuals and businesses will pay an extra 1.25p in the pound. The Government says the increase will help fund the health and social care system.
Alongside this, prices and inflation are soaring, meaning more people are now reassessing their finances.
As the National Insurance rise kicks in, personal tax planning is more important than ever, so here are some suggestions for getting your taxes in order so you can keep more of your hard-earned cash.
There are a wide range of tax-efficient investment options, which can help to reduce your liabilities.
Are you using, or have you considered, options such as ISAs which includes Help to Buy ISAs, Stocks and Shares ISAs and Child ISAs.
You may also want to explore Venture Capital Trust investment, community investments and social enterprise investments.
Bonds such as for Life Assurance and offshore bonds, could also be useful options to explore.
Exchange your salary for benefits
You may wish to consider exchanging part of your salary for payments into an approved share scheme or additional pension contributions. This will help to take you below the £100,000 threshold.
Inter-spouse transfers are also a useful way for individuals, whose annual income is between £100,001 and £125,000 this is an ideal way of reducing your tax liabilities.
Look out for tax refunds
It is worth checking that you are not paying more tax than is necessary. For example, if you have noticed your tax code has changed, contact HMRC immediately to find out why.
If you have recently changed job, or moved into self-employment, you may be overpaying your tax. Again, double-check that HMRC has your up-to-date information.
To keep your affairs in order and minimise your tax bill, get in touch with our expert team today.