Tag: Financial Planning

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Maximizing Tax-Free Savings with Individual Savings Accounts (ISAs)

Introduction With rising interest rates and the impact of stealth taxation, many individuals are finding themselves paying taxes on their savings income for the first time. Individual Savings Accounts (ISAs) present an excellent opportunity to shield investment income from taxation. Offered by various financial institutions, including banks, building societies, stockbrokers, and crowdfunding platforms, ISAs are

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Exploring Tax Efficiency: Benefits in Kind vs. Salary and Dividends

Introduction Historically, the most tax-efficient way for sole directors/owners to withdraw money from their company has been through a mix of salary (up to the employer’s secondary National Insurance Contributions (NIC) limit) and dividends. However, changes since July 2022 have introduced scenarios where taking benefits in kind (BIK) could offer a more favorable alternative. This

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Will paying voluntary NICs boost your pension?

To qualify for a full state pension, you need 35 qualifying years. You can earn these through paying National Insurance contributions or being awarded National Insurance credits. Suppose you will not have sufficient qualifying years for a full state pension when you reach state pension age. In that case, you can ‘buy’ additional qualifying years

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