Tag Archives : Income Tax


Gift Relief on Shares in a Business – Capital Gains Tax

Individuals have a number of reliefs from Capital Gains Tax. Some of the reliefs include Roll-Over relief, Incorporation Relief, Gift Relief and Entrepreneurs relief. The different reliefs have different conditions that need to be met attached to them so you will need to look at these first in order to determine if you are entitled to any of the above mentioned reliefs. The different reliefs also have different implications to your liability and a brief description of each of the reliefs is given below: Roll Over Relief – defers tax on chargeable gains when a person disposes of a qualifying business asset and buys another. Incorporation Relief – Applies when […]


How To Reduce Your Tax Bill! (An easy to read guide for different situations)

  Many people are now rushing to complete their Self Assessment and pay their tax liability by 31 January. Whilst paying tax may seem like a burden to most, it has to be done to ensure public services get the funding it needs. But to help you pay the correct amount of tax and not pay any more than you should do (unlike many), here is a list of ways to legally reduce your tax bill. Whilst some of the ways listed below can be implemented quickly and help you save tax immediately, others are more longer term and you can think about doing them for the next tax year […]


What is Income Tax and What exactly do you need to pay it on? 2

What is Income Tax? Income tax, as its name suggests, is a tax on income. It is charged on the: Income of UK resident individuals arising anywhere in the world. ( So if you are a UK resident and earn some money in France, you need to pay income tax in the UK) Income from non-UK resident individuals arising from a source in the UK. (So if you come from abroad, you need to pay tax on any income you earn whilst in the UK) Income of trustees who are UK resident. For the above, you can see that residential status is integral to knowing whether or not you pay […]


Are You Claiming All The Tax Exemptions You Are Entitled To ? Earn £45, 990 Tax Free! 1

The autumn statement which was announced last month has brought about changes to the tax system. Some taxes have gone up whilst others have fallen down. Most of these tax changes will begin to take effect from next April (beginning of tax year). The question on most peoples minds is how to save the most money possible. This article will aim to show steps you can take in order have a tax ‘free’ income of £45, 990; in theory at least! 1)  Personal Allowance = £10, 500. The personal allowance threshold has increased from £10, 000 to £10, 500 meaning that you are able to earn up to £10, 500 […]


National Insurance Contributions (NIC) : What are the different classes of NICs and which should you pay?

Individuals have to pay NICs in addition to income tax on income earned above a certain limit. NI contributions are payable as they will build up your entitlement to certain social security benefits. You will need to pay NIC if you are over the age of 16 and you are: self-employed or employed and your earnings are above a certain level. You stop paying NICs when you reach state pension age. Below is a list of the main classes of NICS and their Principle characteristics. Class 1 Primary Contributions: Paid by Employee. Paid on percentage of earnings above a certain amount. Stop at state pension age or at the end […]


Tax on Dividends in Different Countries and Why This Affects You!

You may think that the tax rate in other countries doesn’t affect you, but you couldn’t be more wrong. In this modern globalized world, corporation tax rates and systems of various countries will have differing effects on your investment portfolios. Nearly all people, both living in the U.K and abroad, have their investments and pensions spread across a number of different countries and thus it is important to get a basic understanding of the differing tax systems. Tax systems have a very important role to play in a company deciding on whether to pay-out dividends or not. As you will see, certain tax systems encourage dividend pay-outs whilst other discourage […]


What are Capital Gains? and Why You May Be Paying Too Much Tax! 6

Did you know that you could earn up to £26,000 from your investment income without paying a penny of tax! (or £36, 000 if you include your personal allowance of £10,000). If you didn’t, read on to find out more. Most people know that you can make tax free investments of up to £15,000 a year by making use of your ISA allowance. But what most people don’t know is that you can earn a further £11, 000 under Capital Gains before you need to start paying tax. Most people don’t know what capital gains are and this article will aid in expelling exactly what a Capital Cain is. What […]


What the 2014 Autumn Statement means for you? 1

With the Autumn Statement coming out this past Wednesday, I thought this would be a great time to summarize the different taxes changes that will affect you. Personal Tax Personal Tax Allowances 2015-2016 From 6 April 2015 the Income Tax personal allowance will increase from £10,000 to £10,600.This essentially means that you will be £120 better off. The basic rate limit will be £31,785 so the higher rate threshold above which individuals pay Income Tax at 40% will be increased to £42,385. National Insurance Contributions – Employer contributions From April 2016 employer National Insurance Contributions up to the upper earnings limit for apprentices aged under 25 will be abolished. National Insurance […]


Know your Taxes!

As this is the first tax related post on this site, we here at Money Grower thought it best to give an introduction on the various types of taxes you will be paying throughout your life. The list is not comprehensive as we chose to focus on the most common taxes. Only a brief introduction is given in this post and we have the intention of delving further into each tax in the future to see how you could legally reduce your tax liability. At the most basic level, there are 3 variations of taxes. Namely, Direct taxes, Indirect Taxes and Environmental Taxes. All the most common taxes you know […]