Tax Savings advice

tax saving advice UK

tax saving advice UK oxon accountancy

tax saving advice UK Oxfordshire, Abingdon, London, Oxford, England, Swindon, Didcot, Reading, Southampton, Bristol, Slough, Birmingham

Are you paying too much tax – we can help you save taxes

There are various allowances and reliefs available which can help minimise tax liabilities arising on earnings, profits of trade or gains when you sell chargeable assets, but understanding what they are and which ones you are entitled to can be a daunting task.

Although HM Revenue & Customs have helplines available to assist taxpayers, staff members are not able to provide advice on how to organise your affairs in order to minimise the amount of tax you pay. If you are looking to make tax savings but do not want to attempt to interpret detailed tax legislation, you should seek professional advice. We offer all clients tax planning reviews and try to ensure that our clients only pay as much tax as they are legally obliged to and no more!

Whatever your tax planning needs we will endeavour to find a tax saving scheme to suit your circumstances so make sure you contact us, especially as there may be more specific tax planning tips and tax advice available for your business sector.

SAVING FOR YOUR RETIREMENT tax saving advice UK

Some taxpayers may not receive a bill for payments on account this month, and face paying a higher bill in January 2020.

All of us dream of the day we can retire, saying goodbye to the alarm clock and commute, illing our days with sun-soaked beach holidays, leisurely rounds of golf, or cruising the world. As delightful as that sounds, the days when people can retire at a certain date set by their employer or by the state are long gone for most people. That is a bitter pill to swallow for some baby boomers, many of whom face remaining in some form of employment until well into their 60s and 70s. Almost half a million people over the age of 70 were in full or part-time work at the end of March 2019, according to the Oice for National Statistics (ONS). This represents a rising year-on-year trend, and a 135% increase on the number of septuagenarians who remained in employment back in 2009. For younger generations, retirement increasingly feels like a pipe dream given suppressed wage growth and high living costs. However, effective retirement strategies can at least help you identify how much you will need to retire, when you can expect to retire, and how long your money will last.

HOW MUCH IS NEEDED TO RETIRE?

How much you need to fund a comfortable retirement largely depends on your living costs and your lifestyle choices.Most retirees need less to live on in retirement. They’ve typically paid off the mortgage, their children have lown the nest, and they no longer need to commute to work. Various experts reckon between £23,000 and £27,000 a year is needed to fund a comfortable retirement, although that’s based on living costs in 2019. Consumer group Which? estimates that around £18,000 a year is required for retired couples to cover the absolute essentials, such as utility bills, food, and transport costs. According to Scottish Widows, three in ive Britons are saving 12% of their salary which may be enough to fund a comfortable retirement. But they will need to save more into a pension if they want to enjoy regular holidays or expensive hobbies.

WAYS TO SAVE FOR RETIREMENT

Most people’s pension pots are made up of three pensions: the workplace pension, the state pension, and any personal pensions they may hold. The number of people saving into a workplace pension through auto-enrolment passed 10 million in February 2019. Employers with staff who are over the age of 22, and earning more than £10,000 a year, are legally obliged to put at least 3% into an eligible employee’s workplace pension. The employee has to divert a minimum of 5% of their qualifying earnings into their workplace pension, although they can put more in if they choose. In years gone by, people would retire as soon as they could start claiming their state pension, and rely on it to cover the cost of living. That’s no longer the case for most people. The state pension is made up from your national insurance contributions (NICs), and the whole system has experienced significant change in recent years. Under the new state pension, which was launched in 2016, 35
complete years of NICs are required to receive the full weekly amount of £168.60 in 2019/20. What you receive from the new state pension will rise annually by whichever is the higher of inlation, earnings growth or 2.5%. Personal pensions are an especially good idea if you are self-employed and do not have the option to pay into a workplace pension. If you are in full-time employment, personal pensions can also be used to supplement other pensions if your inancial circumstances allow. More 

Phone: 01235 250011
Fax: 01235 250022
28 The Quadrant, The Science Park Barton Lane, Abingdon, OX14 3YS

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