Category Archives : Tax Advise

Will be putting articles on how you could reduce your your tax liability here. Use the contact us form if you have any specific questions.

ISA 2021/2022 – Invest £20,000 Tax Free

Happy new tax year!   Well, I know what you are thinking, happy and tax should never be used in the same sentence! But in this case I can be forgiven for doing so. The start of the new tax year brings with it the opportunity to invest an amount up to £20,000 completely tax free using an Investment Savings Account. If that doesn’t get you excited, I don’t know what will!   The easiest way to describe an Investment Savings Account or an ISA for short is as a legalised tax heaven for the average person like you and I. When you invest via an ISA, you are able […]

Selling Coca Cola From My ISA and Moving It To My SIPP Portfolio – US Stocks Dividend Withholding Tax

Coca Cola is a never sell stock. It is one of those businesses that has been around for 100 years and will be around for 100 more. The soft drinks industry doesn’t change fast. My grandad drank Coke, so did my dad and so do I. I am sure my kids and grand kids will do too. They are not many companies with the heritage, resilience and staying power of coca cola and that is why it is one of the companies on my stock list; a list of the greatest companies in the world that can be held for year and years and will compound your money nicely over […]

An Easy Explanation Of The Progressive Tax System – A Parable

Suppose that once a week, ten men go out for beer and the bill for all ten comes to £100. If they paid their bill the way we pay our taxes, it would go something like this…   The first four men (the poorest) would pay nothing. 
The fifth would pay £1.
 The sixth would pay £3.
 The seventh would pay £7. 
The eighth would pay £12. 
The ninth would pay £18.
 And the tenth man (the richest) would pay £59.   So, that’s what they decided to do.   The ten men drank in the bar every week and seemed quite happy with the arrangement until, one day, the […]

What Date Should You Complete Your Self Assessment Tax Return By?

Taxes. Not many people like to pay them. But it is a regulatory requirement for every individual who earns income to pay tax on it. After all, tax is the price you pay for living in a civilised society. Every year, self employed individuals – as well as any person earning money outside their job – needs to fill out a Self Assessment (SA) Tax return. This SA return covers the amount of money you owed over a 12 month period, from 6 April of one year to 5 April of the next. So for the tax year 2017/2018, you need to include all taxable items (monies earnt) between 6 […]

Do You Pay Tax On Accumulation Fund Units

One often questions I get asked a lot is ‘do you pay tax on accumulation funds?’ The simple answer is yes, you need to pay tax on accumulation funds if they are held outside an ISA or SIPP (Pension) wrapper. You will need to pay income tax on any distributions and capital gains tax on any capital appreciation. What are Accumulation Funds Accumulation funds are funds whose income is automatically reinvested in the fund. An accumulation unit is designed to offer you growth in the fund rather than income, so any income generated will be reinvested within the fund. Income funds on the other hand distribute any interest or dividend […]

Corporations Don’t Pay Corporate Tax – Individual Consumers Do

Having worked in the finance department of a multinational organisation,I assumed that it was common knowledge that individuals as opposed to companies foot the bill for Corporation Tax. But judging by my social media accounts over the past weeks, it seems that most of the public fail to realise this. I have heard arguments that increasing corporation tax will benefit society as companies will have to pay more. Yes, the government will collect higher taxes from a higher corporation tax but the ones who be paying this higher bill is people like you and I as opposed to companies. To put it in the simplest of terms, any company that […]

Take These Steps To Enjoy A Tax-Free Retirement

The thought of being hit with hefty taxes when you enter you reach retirement is a bitter pill to swallow. But there are ways to legally reduce taxes in your golden years. You can actually generate a six figure tax free income if you start planning early and make use of the tax wrappers and allowances that are available. Here are a 5 steps to consider if you want to have a tax-free retirement. Step 1: Personal Allowance The first allowance to make use of is the Personal Allowance. Anyone earning less than £100,000 a year can earn £11,500 tax-free. In essence this means that the first £11,500 you receive […]

Warren Buffet on Consequences of Trump Tax Policies – Will Lower Taxes Increase Profits?

Ever since Donald Trump got elected as the president of the United States, there has been constant chatter in the corporate world about the US reducing its corporation tax rate. President Trump wants to reduce the corporation tax rate in the US to 15%. This is music to Wall Streets  ears  as it would mean more money flowing in to the pockets of investors. As a result of reduced taxes, stocks have began to price in more profits by rallying higher. But the question is, does a reduction in taxes  lead to increased profits or does it lead to lower prices for consumers? That may seem like a silly question […]

Transferring My Pension Between Providers – Options, Charges, Length of Time, SIPP 2

One of my new years resolutions has been to give my finances a spring clean. I started by looking at my pensions and found that one of my old stakeholder pensions was charging too high a fee. As readers of this site know, fees are a huge drag on performance and can cost you tens of thousands over time. I thus decided to move this all pension into a lower cost Self Investment Personal Plan (SIPP). In this post, I detail what options people have when transferring pensions, the process of transferring a pension, how long it takes and what assets you can invest in. Old Stakeholder Pension – Scottish […]

Easy Step By Step Guide For Completing Your Self Assessment Tax Return Online

With tax season upon us and the online deadline of 31st January for Self Assessment (SA) returns quickly looming, this seems a good time do a post on how to complete and SA return. Many people who need to submit an SA return and normally left confused about how to go about doing it online. This post will show you how to set up your Self Assessment Tax return Online as well as give key details as to how to actually fill out your SA return. It is important to remember that the deadline of 31 January 2017 is for the 6 April 15 – 6 April 2016 tax year. […]