Money Matters

ENSURE YOU DON’T LOSE OUT BY REVIEWING YOUR TAX AFFAIRS BEFORE THE TAX YEAR END

The imminent end of the tax year is a time for reviewing your tax planning, says Jamie Norton of Lovewell Blake.

With the end of the tax year just weeks away, now is the time to be considering what you need to do to make sure you are taking advantage of all of the various allowances which are available – and to be aware of what changes are around the corner in April. Perhaps the biggest tax change for the next tax year (2022/23) is the introduction of the Social Care Levy, which will in effect add 1.25% to every employee’s National Insurance bill, and the same to every employer’s NI bill as well. For those in employment there is probably little you can do about the extra burden (although talking to your employer about considering salary sacrifce for extra pension contributions might be one avenue worth pursuing). However, owner-managers of incorporated business who pay themselves in dividends certainly need to think about the timing of any payments. From 5th April, the Social Care Levy will also apply to dividend payments, adding an effective extra 1.25% tax to the rates already paid in such income. Business owners who might be planning to declare a dividend soon need to talk to their advisors about the timing of when these are declared; doing so before the end of the current tax year means they will avoid the new levy, although there are other considerations such as taking your income into a higher tax bracket to be considered as well.

Don’t forget also that there is a Dividend Allowance in the current tax year, which means the frst £2,000 of any dividend income is free of tax even if you have already used up your personal allowance. Other ‘use them or lose them’ allowances include the pension contributions allowances, which broadly permit you to contribute up to £40,000 a year into your pension and beneft from tax relief (provided your contributions don’t exceed your total income). Likewise, everyone can invest up to £20,000 into ISAs each tax year, so if you haven’t yet used up that allowance, you only have a few weeks. For those disposing of assets such as second homes, rental property and shares, any gain is subject to capital gains tax, apart from the frst £12,300 each year. That allowance disappears at the end of each tax year, so if you haven’t yet used this allowance and have assets to dispose of, you need to get a move on. Finally, Christmas may be over, but you can give away a total of £3,000 in gifts in any one tax year without affecting any future inheritance tax liability. Staggering such gifts across two tax years effectively doubles the allowance – but again, timing is key. Jamie Norton is a partner based at Lovewell Blake’s Thetford offce.

Leading up to Christmas was a busy few months for Team TTBC. First John Tom Kerry won the semi fnals of the Junior Development National Amateur Championships in the over 80kg category. John Tom went through to the fnals, losing on a close split decision. Next was Josh Payne, who entered the Youth Development Amateur Championships over 91kg category, winning the quarter fnals, but unfortunately losing the semi fnals. Thirdly we had Roni Dean enter into the open class National Amateur Championships in the 54-57kg category. Roni boxed in the quarter & semi fnals, boxing two tough opponents, earning her place in the fnals. We had a team of around 30 supporters travel to London to cheer her on, with the fght also being aired on BBC Sport. Unfortunately Roni lost on a split decision in the fnals. The positive spin on the loss was that Roni was then invited up to Sheffeld to the English Institute of Sport for a GB boxing assessment. The boxing assessment is held over two four day training camps. Roni attended the frst camp at the beginning of January where she and the other female fnalists were put up for three nights, training 3 sessions per day including open sparring. Roni will complete the next part of the assessment early February and will then receive feedback on whether she has made it to the next stage. Having three boxers compete in high level competitions has been great for our club and our town. The support from the local community has been incredible and we are reminded once again what an amazing town we live in. With upcoming championships around the corner, we hope to be entering more boxers this year. It seems Thetford Town is fnally making waves in amateur boxing.

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Email: help@bailiwickit.com Website: www.bailiwickit.com Clockwise: Roni, John Tom and Josh celebrate Mr G's QP Advert 01.22.qxp_Layout 1 12/01/2022 09:22

success at the National Amateur Championships

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