Savings & Investments
Individual Savings Accounts (ISA’s)
As title states, only applies to Individuals, not businesses
...
Savings & Investments
Stocks and shares ISA – long term savings plan
Should be undertaken for 5 years or if stopped earl...
Income Tax
Personal Allowance trap
 As is well known, there is a nasty tax trap by reference

to the gradual withdrawal ...
Pensions
Still very tax efficient
Tax relief when contributions made
Tax free growth prior to retirement
25% tax free ...
How to earn over £40K with no tax
Tax Planning
Pay small salary of £640 per month – provides for full

credit towards St...
Should I Incorporate?
Sole Trader
Profits
Income Tax

7,884
Class 4 Nat.Insurance
Class 2 Nat. Insurance
Total Incom...
Should I Incorporate?
 Limited Company – 1 Director
 Profits
 Salary
 Taxable Profits
 Corporation Tax @ 20%
 Availa...
Free holidays !!!
Would you like a FREE HOLIDAY courtesy of The Chancellor of

the Exchequer?
1 week in Tenerife for a f...
Nursery Voucher Scheme
Childcare vouchers can save many parents with kids aged up

to 15 over £1,000 a year on childcare....
Nursery Voucher Scheme
Basic rate tax payers (and higher/top rate payers who joined

before 5 April 2011 as long as they ...
Nursery Voucher Scheme
From 6 Apr 2011 new joiners paying higher or top rate tax had

their allowance dropped so that all...
Nursery Voucher Scheme
Used for :
Nurseries
Childminders
Play Schools
Pre-Schools
Créches
Nannies
Au Pairs
Nursery Voucher Scheme
Before and After School Clubs
Holiday Clubs/Camps
Play Schemes
Private Schools
Reception Class...
Nursery Voucher Scheme
The number of children you have doesn't impact this, the

limits are the same whether you've one c...
Nursery Voucher Scheme
Admin is relatively simple – Just obtain a pack from one

of the companies who will do it for you ...
Tax Savings for all
Questions
Robert Ellis – Principal
Peter Way-Rider – Tax Manager
Tel 01244 343504 www.ellis-uk.com info@ellis-uk.com
Check out our 'Top Tax Tips' presentation by Ellis & Co Chartered Accountants and Business Advisers
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Check out our 'Top Tax Tips' presentation by Ellis & Co Chartered Accountants and Business Advisers

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Check out our 'Top Tax Tips' presentation by Ellis & Co Chartered Accountants and Business Advisers

  1. 1. Savings & Investments Individual Savings Accounts (ISA’s) As title states, only applies to Individuals, not businesses Cash Isa – current maximum £ 5760 p.a. Stocks and shares Isa – current maximum £11520 p.a. No tax to pay on either the Income or Growth
  2. 2. Savings & Investments Stocks and shares ISA – long term savings plan Should be undertaken for 5 years or if stopped earlier then balance left for the remaining period to obtain best chance for growth Huge number of funds – cheapest are usually trackers which tend to outperform most “managed funds”
  3. 3. Income Tax Personal Allowance trap  As is well known, there is a nasty tax trap by reference to the gradual withdrawal of the personal allowance if taxable income exceeds £100,000.This is via a reduction of £1 of allowance for every £2 of excess taxable income. Effective tax rate in this band is 60% If possible, structure your income so it falls less than £100K. If more than £100K consider a lump sum pension
  4. 4. Pensions Still very tax efficient Tax relief when contributions made Tax free growth prior to retirement 25% tax free pot on retirement Income drawdown facility enables you to be as tax efficient as possible Start now before it is too late – Auto enrolment starts soon
  5. 5. How to earn over £40K with no tax Tax Planning Pay small salary of £640 per month – provides for full credit towards State Pension Pay dividends of £30300 to cover Basic Rate Threshold Total Income will be £41450 – No Personal Tax or National Insurance Husband and wife who own their own company can take £82900 without any tax or NI. Corporation tax will have been paid on profits but only at 20%
  6. 6. Should I Incorporate? Sole Trader Profits Income Tax 7,884 Class 4 Nat.Insurance Class 2 Nat. Insurance Total Income £45,000 £ £ 3,189 £ 138 £33,789
  7. 7. Should I Incorporate?  Limited Company – 1 Director  Profits  Salary  Taxable Profits  Corporation Tax @ 20%  Available for dividends  Add back Salary  Total Income  Extra Income from Incorporation 3,747 £45,000 £ 7,680 £37,320 £ 7,464 £29,856 £ 7,680 £37,536 £
  8. 8. Free holidays !!! Would you like a FREE HOLIDAY courtesy of The Chancellor of the Exchequer? 1 week in Tenerife for a family of 2 adults and 2 children with Thomson Holidays at 4* Hotel £1655 (Riu Arecas Hotel Costa Adeje)
  9. 9. Nursery Voucher Scheme Childcare vouchers can save many parents with kids aged up to 15 over £1,000 a year on childcare. Frustratingly it is only available via employers, but many large and small companies take part. The key is they enable you to pay for childcare out of your PRE-TAX and National Insurance income. While this doesn’t sound much, the benefit is huge.
  10. 10. Nursery Voucher Scheme Basic rate tax payers (and higher/top rate payers who joined before 5 April 2011 as long as they don't take a break from the childcare voucher scheme of more than 12 months) can pay for up to £243 of childcare with vouchers each month (£55/week). This is PER PARENT so two working parents could get £486 a month of vouchers.
  11. 11. Nursery Voucher Scheme From 6 Apr 2011 new joiners paying higher or top rate tax had their allowance dropped so that all tax payers have roughly the same maximum tax gain. From April 2013 the limits are: Basic (20%) Taxpayer. £55/week vouchers, max annual gain £930. Higher (40%) Taxpayer. £28/week voucher, max annual gain £630. Top (45%) Taxpayer. £25/week voucher, max annual gain £590.
  12. 12. Nursery Voucher Scheme Used for : Nurseries Childminders Play Schools Pre-Schools Créches Nannies Au Pairs
  13. 13. Nursery Voucher Scheme Before and After School Clubs Holiday Clubs/Camps Play Schemes Private Schools Reception Classes and out of school care at Independent Schools
  14. 14. Nursery Voucher Scheme The number of children you have doesn't impact this, the limits are the same whether you've one child or an entire Brady Bunch. Vouchers aren't specific to each child and have a long expiry date, so if you know you're going to have higher childcare costs during the holidays collect vouchers in advance.  Also many providers will let you backdate vouchers up to six months, although your child must be born for you to be able to sign up. Check your individual provider's procedures first.
  15. 15. Nursery Voucher Scheme Admin is relatively simple – Just obtain a pack from one of the companies who will do it for you (for a fee of course) and away you go!!
  16. 16. Tax Savings for all Questions
  17. 17. Robert Ellis – Principal Peter Way-Rider – Tax Manager Tel 01244 343504 www.ellis-uk.com info@ellis-uk.com

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