The coming weeks are crucial not only for us, as a country, preparing for Brexit but for the end of the tax year, too. Brexit is still uncertain and the results and actions towards them are completely out of our hands. However, although you may feel that it is much the same for your personal finances, it’s not necessarily the case.
It’s coming to the end of the tax year and this means that companies are oftengiving hardworking employees an annual bonus and if that includes you, you should monitor your income. If your overall earnings are over £100,000 you have to pay an effective rate of tax of over 60% on the income between £100,000 and £123,700 due to the gradual withdrawal of your personal allowance. If your overall earnings or “adjusted earnings” are higher still, then you then you can face restrictions as to what you can pay towards your future but a reduction in your pension annual allowance.
This kind of hike in tax can feel like a strain on your finances and the plans that you have for your home and family. Additionally, the restriction on pensions means that for many people, these uncomfortable tax rises can feel inevitable and their results – uncontrollable. However, pensions are potentially still available to you, and, if not, more esoteric investments such as Venture Capital Trusts (VCT) or Enterprise Investment Schemes (EIS) could be the way to maintain your plans for your financial future.
The coming weeks present your opportunity to influence your next tax year and make it work for you.
Although the new tax year is quickly approaching, you still have time to review, amend and reposition your financial standing. By contacting us today, you’re ensuring a healthier financial future that makes your wealth work for you. Our approach will help you take the right steps to guarantee that the money you earn goes towards the life that you work hard to maintain.
Though you may feel you need to brace yourself for the days and weeks ahead, it doesn’t have to be this way. Brexit may be out of our hands but the way we manage and maintain our finances isn’t. We can work closely and efficiently with you to create a healthier financial picture, just in time for a new tax year.
If you'd like to find out more on how to enter a new tax year in a more informed position, get in touch with us today.
Strathclyde Sirens and Murphy Wealth team up to look after your financial health
We are working with Strathclyde Sirens, Scotland’s only semi-professional netball team, to create toolkits and share valuable advice in order to help the population look after their financial health during this uncertain time.