Our five minute read, Tax Tips for UK doctors and dentists will help you save tax, get you organised with your tax affairs and make you feel at ease that everything is taken care of.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.
Start 2018 off on the right tax footing. It could save you money!
In 2016, the total amount of tax wasted amounted to a staggering £4.6 billion. The main reason is that people were not aware of what they were entitled to claim for and in some instances, it was because people didn’t get around to claiming it.
No one likes to waste money, particularly on paying taxes that they don’t necessarily have to.
Here are three ways that you can save tax in 2018:
Invest in ISA’s
The ISA allowance for the tax year 2017/18 is £20,000. If you haven’t used your full allowance, consider doing it now so you can benefit from the tax advantages.
When choosing where to invest your money, you can choose from the following types of ISA’s: Stocks & Shares ISA, Cash ISA, Lifetime ISA (maximum £4000) and an Innovative Finance ISA. You could also choose to split your investment across these different types of ISA’s as long as you don’t go over £20,000.
Make use of the dividend allowance
In April 2016, a dividend tax allowance was introduced. This means that any dividends you receive from your limited company or from an investment outside of a pension or an ISA, will not incur tax, up to the level of £5,000.
Any dividends over this level, will be taxed at your marginal rate of income tax.
Transfer savings to your spouse
Check your tax position to see if you could benefit from transferring some of your investment income to your spouse. If your spouse doesn’t work or pays tax at a lower rate than you, you could make tax savings by moving savings or shares or the ownership of investment properties over to them.
Before doing this though, please seek guidance from an experienced financial advisor.