Don't wait to find out about 4 new tax changes
Plus a last minute ISA checklist and a new LinkedIn group for women.
Hello,
This is the final month of the UK tax year. It is at this time that I:
Top up my ISA with any spare cash to reach the 20k annual max
Check my tax code to see what upcoming changes might mean
Remind myself to continue to keep track of my progress
Tax Changes - will there be more or less money in your pocket?
From April 6th 2023:
The additional-rate income tax threshold will be reduced from £150,000 to £125,140.123.
Before you paid 45% tax if you earned
£150k, now you’ll start paying 45% from
£125k
The basic-rate income tax will be cut from 20% to 19%4.
You will pay 1% less tax on income between £12,571 to £50,270.
The annual exemption for capital gains tax will be reduced from £12,300 to £6,000 for individuals and personal representatives, and from £6,150 to £3,000 for most trustees2.
It will be further reduced to £3,000 from April 2024 for individuals.
People will have to pay more capital gains tax on their profits from selling assets.
The corporation tax rate will increase from 19% to 25% for companies with profits over £250,0002.
Companies will pay higher tax on their profits.
Want to know what the new tax rules mean for you
UK 2023 Income Tax Calculator1: This calculator can help you calculate your salary, PAYE income tax, national insurance, dividends and pension deductions for 2023.
UK Corporation Tax Calculator 20232: This calculator can help you calculate your corporation tax based on your company’s financial year or using the 2023 tax year.
Tax Calculator4: This calculator can help you calculate your take home pay after all income tax deductions have been considered.
What I am:
Reading: 2 books, Range (recommended by a Sponsor) and Measure What Matters
Listening to: How to Take over the world podcast - William Randolph Hearst
Your last minute tax checklist
📅 The current UK Tax Year ends on April 5th at 23:59. Here is your last minute checklist to make the most of your money.
📌The main thing: Take full advantage of your ISA (your tax free savings account) and pension allowance. Why?
📌You pay no tax on investments held in an ISA. A stock and shares ISA will grow your money faster in the long run than a cash ISA.
📌 You pay less taxes for holding more of your money in a pension (SIPP or employee pension) account. The government rewards you for investing long term.
✅ Quick Checklist:
1️⃣ Check how much of your 2022/23 ISA allowance you have left. Your allowance is max £20k individually or £40k as a couple.
2️⃣ Check how much of your 2022/23 pension allowance you have left. Your allowance is max £40k individually or £80k as a couple. If you have more than £40k, you can use up leftover limits from the past 3 years.
3️⃣ Consider your children’s investments. If you have a Junior ISA (JISA) you can put in £9k per tax year per child. Since this account is not accessible till age 18, a stocks and share JISA will typically generate better returns than a cash JISA
Reading list
How much cash should you hold?
https://lnkd.in/dvWBe7g5
https://lnkd.in/eZjnnw_4
ISA Gender gap research
https://lnkd.in/ewBQyArY...
101 on stocks & shares + funds
https://lnkd.in/ean4N_-a
Quick read on Pensions
https://lnkd.in/ewRrDc8k
Ladies, Let’s connect on LinkedIn
Ladies, WealthSquats is now on LinkedIn. Use this link to get access to the private group and access more content.