You can claim tax relief by calling HMRC on 0345 300 3900. £810 million goes unclaimed each year, go get yours. Check out Manual here and get 55% off your first order using my code DTM55. bit.ly/4a13ZVi
Damien, I'm self-employed, with a range of low to high risk investments including SIPP, ISA, crypto, Fundsmith, a property. I've also a LISA I now can't use to purchase a house. My thinking was keep maxing this out each year, because it's £1,000 a year gov top up plus interest. I'm 36, not rich but doing OK. I intend to take LISA out as a lump sum when I'm 60. Do you think my strategy re the LISA is sensible? Some say it's not a good pension, but I aim to use it as part of a mix with SIPP and other investments.
Damian there is not a single pension fund at UK offering ETF of BTC like IBIT (blackrock) at all at UK? How UK people can via pension get exposure to american ETF for BTC or other types? Thanks!!!!
Thanks Damien, do you know if it is too late to apply online for backdating pension relief for TY 19-20, 20-21, 21-22, 22-23? I assume it would have to been included in the 22-23 self assessment? And if it's not done before April 5th then TY 19-20 would be lost? Keep up the good work!
I hired an accountant this year and she identified that my current employer hasn't been doing salary sacrifice. She's submitted a claim to hmrc for me for a £7000 tax rebate! She's applied for rebates for all 7 years I've been working in my current job, not just the 4 years Damien mentions. I'm keeping my fingers crossed
Time limit for a claim to overpayment relief is under Schedule 1AB TMA 1970 The person must make the overpayment relief claim within four years of the end of the relevant tax year or accounting period. So good luck going back 7 years but don't have your hopes too high. The previous "error or mistake" legislation would have enabled you to go back further but the law was changed in 2010.
You'll only get 4. I had a similar situation where I discovered 2 years after I left a job where I'd been hit by this for 5 years because the company changed pension provider and it was no longer salary sacrifice. Despite overpaying tax for 5 years, because of the delay in claiming it, I was only able to get a rebate for 3 of those years. It was only that good because I managed to sort it out just before the tax year ended - a week later would have cost me another year.
Compared to the US we are highly taxed, but compared to most other European nations how taxes are quite low. Note in the US you will have to pay for private health insurance. The problem in the UK is that people want US levels of tax and European levels of services.
Follow the money. Tax is a scam to keep people poor. People with assets have power and the elites won’t allow this. Tax money goes to private companies and banks. All elites are invested in these companies so everyone at the top gets rich and services get worse.
@@mrg8537 yes but US salaries are literally 2x more for skilled workers. We don't get European levels of service We need to come to terms with the fact that the state pension and tripple lock needs to face a review, we are leaving a terrible situation for our descendents.
@@mrg8537I work in the U.S. and have looked at this with my US colleagues. When you take into account State as well as Federal taxes, they don’t pay that much less tax than we do.
I know someone who has worked as a finance consultant in the public services for years. Yes, they need to be better funded, but as much as that, they waste so much money and have very little appetite to change that
Important point for immigrants: as one working in the UK I found myself having the br tax code slapped on by default and therefore overpayed loads of taxes in my first 2 years until I took the time to understand the system. If you are not from the UK, you may overpay!
Great video. If you have no other things to claim, you don’t even need to fill in a self assessment to claim higher rate tax relief on pension contributions if you are PAYE. Just ring HMRC up and let them know the amount you’ve contributed in the tax year and they’ll sort it on the phone and send a refund for the additional relief. Your tax code will be changed to reflect the saving going forward. Much easier than submitting a tax return for just claiming this relief. I’ve done it a few times. Just remember to contact them again if you change the payments in subsequent years.
Pombal is more a case of you find out why the smart guy who ran portfolio sold something that did well afterward when he retired, you thought I can handle this myself and so you bought the asset back for even higher cost and then found out why he sold it in the first place.
10:30 *every single year* for at least the last 15 years HMRC have sent me a letter saying "you paid too little tax last year, we need to reclaim it, here's your new tax code". Every year! And I have NEVER had any income that isn't PAYE. I don't understand how they keep getting it wrong - every single year - and always such that I have to pay more. But I don't know enough to challenge it.
Do you maybe get benefits from work that aren’t patrolled eg medical insurance? If your employer doesn’t tax them at source then it reports them to HMRC after the end of each tax year and HMRC adjusts your tax code to collect the tax on them
@@simonallum5328 that is a part of it (though I haven't had private medical in every job), but I understand and expect that. The code HMRC assign me is different every year and apparently unrelated to the value of the medical - and has happened even in years when I didn't have medical cover. They just keep saying "you underpaid last year by X, your new code is Y" and the value they pick for X appears to be completely random every time. Last year, for example, they said I owed £307 for medical insurance (OK) and another £146 "for that year" (why???) resulting in a tax code of 1211LX. This year I owe £307 for medical insurance (OK) and £317 for an underpayment from last year (why???) for a tax code of 1194L. It doesn't seem to make any sense, it isn't consistent, I can't get an explanation from anyone more detailed than "you just owe us more", and things like this happen every year.
Someone has to pay for all those benefit scroungers who simply don't want to bother their arses working, there's plenty of them and the government doesn't care as long as they don't go on to the unemployment figures.
@@RightDenied What about the ones i see on a daily basis on the streets or pubs with booze in their nose, no disabilities and capable to work? The poor is one thing, not wanting to work as the system gave them free cash, is another thing.
What! I had no idea. And you make a great point when you say pension providers should inform clients about this. It's more money for the clients and for them at the end of the day
Mostly agree with what you said about changing the start date of the financial year, but shifting it to the 1st April would make a lot of sense. That way things like monthly interest payments could be simply summed together to work out an annual total.
That would help a lot. My employer has definitely screwed up in the past and done things like deducting tax for 5 days of benefits that they shouldn't have. Having the tax year aligned with the calendar months people are paid would help prevent a lot of mistakes and need for prorating
I kept saying I'll do it, and saying I'll do it... and I finally opened a lisa with Dodl. Thank you Damien - up there with the legends!! So much info and value in 15 minutes here ❤
Recently lost both parents, so pretty much had to create a will. Dealing with my Father's estate and a 2004 will, which was mostly fine but had some curious choices meant I also created a word doc, stored with the will explaining why and what and some extra help on how to deal with things. Not legally binding, but I think it's VERY useful to have. Being able to talk beyond the Grave I think will also be nice & useful.
Wills can be changed by the beneficiaries as long as they all agree, it's called a Deed of Variation - but if one of the beneficiaries does not agree to the change then it cannot be done. Also, one thing to watch out for is when leaving something to a named person in a will because if that person has died before you, then that gift is null and void, it does not go to their partner or their children or nearest relative unless you so specify.
@@steve6375 Oh I know all about Deeds of variation - We did one with my fathers will, due to him dying under 2yrs of my Gran and thus passed her estate down to his children, avoiding double IHT However we couldn't pass things to his estraged wife as that would have been tax evasion! My will is on percertages, so things would shuffle in some cases where a secondary benificeray isn't named.
Would love a video with some advice specifically for the self-employed, especially regarding pensions. I feel that there’s a lot of apathy and poor financial planning around because so many of us feel like we’re out on our own. Thanks for your great channel Damien!
The next govt best increase the tax free allowance to £15k the poorest have been hit so hard and increasing minimum wage is just increasing inflation (which I think the govt deliberately wants a wage price spiral).
Perhaps the rise in personal allowance will miraculously align when the number of pensioners suddenly finding they are tax payers, even when only in receipt of their State Pension, causes a political problem.
Went through the questionarie on the hair loss product. It's important to point out that in the last question they make you accept that it is an *unlicensed product*.
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency and stocks, through the assistance of my discretionary fund manager
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional
Isn't she the same Mrs Nancy Williams Laplace that my neighbors are talking about, she has to be a perfect expect for people to talk about her so well.
So if I understand this correctly, the bed and breakfast rule is: Exiting a position thinking you can just pop back in at anytime then getting stuck outside while getting wrecked Should be called The Brexit Rule then 💀
I just checked on the HMRC website. I thought I had probably overpaid a bit. I appear to have overpaid by over 6 grand! I'm getting that back (and reinvesting it), pronto. Silly me.
I have never taken advantage of my CGT allowance, I could have been using that to invest in funds in the 23/24 tax year, taken the money out before the end of the 23/24 tax year, let it rest in my bank account for a couple of days and use it to kick start my 24/25 ISA.
Personally, I am in favour of shifting the tax year to the calendar year. In Thailand, where I live, the tax year is January thru’ December, and dealing with 2 non-aligned tax years is a pain.
I think you may have covered this in the comments, but you DO NOT HAVE TO DO SELF ASSESSMENT. You can call or use the webchat if you are a PAYE employee and have paid less than £10k into your pension.
Nice one for clearing that all up.. i still thought we was allowed 12,300 cgt allowance.. how this countries ran is beyond a joke they try get every little tax out of someone as possible
Only tax the working class. The Uber rich get away with it. Duke of Westminster paid no inheritance tax on 8 billion. Zero, nada. But your parents house that has shot up in price and is now worth £££ could see you having to stump up 40% of some of it. Nice eh.
The dividend allowance at £500 and CGT on £3000. Seems like a tax on the MCs as usual. The rich dont get involved in these small fry things, they've got limited companies paying low tax and stuff offshored.
Most of us (Workplace pension ) will get the net pay method pension relief so contributions are deducted before tax - no need to complete hmrc docs. I’m not salary sacrifice, just workplace pension that deducts pension before tax.
Thank you for your content Damien. Please please can you do an updated video on REITs investments and your views and recommendations. I trust your opinions. Thanks. 😊
Not related to the financial year but people should double check their student loan payments after the tax year, they usually claim more than they should and owe a few hundred at least usually, can claim back from upto 5 years i believe
And if anyone is likely to need pre-retirement benefits access (Universal Credit), LISAs, like normal ISAs, will count for capital - and potentially disqualify access to UC - whereas pensions do not.
@@geeman4041 what if you are couple with kids in an area where a 3 bed house is on average more than 450k? you have saved for years to get a deposit. Do they not deserve the same support? It isn’t all single people looking to buy terraced houses that are first time buyers anymore.
@@geeman4041 £450k in 2017 (when set) has an inflation value of £575k today, and house prices have risen an average 30%. London is especially hit hard as first-time homes in 80%+ of the boroughs exceed £450k. Of course, some people share your view, but given how quickly it has lost its value compared to previous, while retaining its punishing charge to withdraw prior to 60, there are also arguments to adjust the LISA rules.
Great video Damien and I’ve been advising colleagues at work to call HMRC to claim their extra 20% on pension contributions and people just don’t realise this.
I really wish I had known about the CGT allowance deductions earlier, but I wasn't following the budget so closely 3 years ago. 12k down to 3k allowance is a huge change. I would like to sell some shares to put towards a deposit, but now I find myself in the firing line for CGT. I appreciate its a privileged position to be in, but I have no house, no car etc and I'm just trying to get together a house deposit, I'm no millionaire. Its disappointing that the government wants to tax me twice after I already paid full tax on the money before investing it, and chose to act responsibly and made sacrifices to invest it in the first place.
Where did you invest it? If in an S&S ISA, no CGT anyway. (If not... why not? No judgement from me because I don't know everything either, but that's what ISAs are for).
@@BittermanAndy Employee Share Purchase Plan a while ago. Indeed - I use ISA for everything else. With the benefit of hindsight I would have been withdrawing from the ESPP each year to max out the allowance and feeding back into my ISA, which I have not been able to max out most years.
I believe the slashing in CGT allowance will have also caught out people running things like Bare Trusts for grandkids. Plenty will fall foul of it, sadly.
Great Video. Hey, Desmond, don't, stress the hair, if your eyesight goes a bit too, there is nothing sexier than a bald head and seriously stylish glasses. 😉 (I might be wrong on that though. )
I've crossed the £50k threshhold for the first time (accidently), been reluctant to do it because I have to start paying child benefit back at roughly 20% of my earnings between £50k - £60k, essentially making my tax and national insurance something like 65% for earnings in that bracket... as far as I understand
You can pay into a personal pension to reduce your income back down below the £50k threshold. You'd need to do that by 5th April if you want it to count for the current tax year. Next tax year the threshold is £60k, as @tomabbott9639 said.
Keeping on top of your tax code is important but it's difficult when your income is variable, e.g. if you get a bonus or restricted stock unit vesting events and these amounts can be variable. I always seem to either end up underpaying or overpaying tax by the end of the FY due to shifts income and HMRC adjusts my tax code for a few months thinking I'm going to be earning that amount forever. I've just given up now and wait for the refund in the self assessment.
Good Morning Damien, Great Content as always, the straight talking, well presented facts are always great to watch. I know ill probably speak for a lot of people when i ask this, but could you do a detailed video surrounding your first subject. Im self employed and dont really know the ins and outs of allowances for sipps etc and would be helped with a more indepth "how to" style guide. Happy easter, dont eat to many eggs, keep up the great work, thanks
I was really hoping that T212 would allow me to pass my investments onto my children in the future. Seems they don't have any plans for that. Not sure if they ever will
Great video, any chance you could do a video on using General investment accounts then using Bed and ISA to top up your ISA each year. What tax’s apply or if this is a good way to invest on top of the £20k. Thanks
I'm in the 40% tax band - I dont understand the first claim of this video - do I need to be in a salary sacrifice scheme to do this? i'M in the auto enrolment of my pension
As Damian mentioned at some point in this video, I am in the exact situation where my tax code has been reduced this year in order for HMRC to collect some tax that I owe. The amount my personal allowance has been reduced by is £6000 because I owed £2400. As I understand it, if my personal allowance is reduced by £6000 then this £6000 is added to the amount that I pay the 20% basic rate on. So instead of paying the basic rate of 20% on £37430 (£50000 - £12570), I am taxed 20% basic rate on £43430. This is not correct though, as I am being taxed 40% on the £6000 in order for HMRC to collect the £2400 I owe. My tax code has been reduced from 1044L to 444L. Basically I’m just trying to understand where am I making the mistake and how does the tax calculation actually work when the personal allowance is reduced. Thanks a lot to whoever takes the time to read and try to explain this to me.
Bed and Breakfast ISA suggestion - Lunar Landing Savings, given you can sell and rebuy in the ISA within 30 days, the Moon's Cycle is 28 days. I would consider moving the money from Earth (GIA) to the Moon (the ISA), given no Government owns the Moon, you saved your money to somewhere they cannot get at it! 😂 As Buzz Aldrin once said, that is one small step for man, one giant leap for the government to not touch your money!
As always, this is a really good video and insightful. But let's address the elephant in the room. What happened to Cobweb? He hasn't made an appearance in ages.
Can anyone offer any advice. I’m now a higher tax payer. I’m 38 and 39 later this month. I have an ok pension but want to add more. Should I pay £200 into my pension as BRASS (AVCs) Or should I diversify and open a LISA. Put the £200 into that and have a separate pot when I turn 60. Am I correct to believe anything into my workplace pension would save me 40% tax and anything I put into a LISA topped up with 25%. Is it as simple as going with the higher % 🤷♂️
I see the option to use the past three years of unused pension allowance on the HMRC website. I think that you misspoke at 2:08 when you say four years.
@damientalksmoney just wanted to say a big thank you. As a higher rate tax payer, after watching your video, I contacted HMRC and managed to claim higher rate tax relief on my pension. I had no idea this existed until watching you . Two days later I got a healthy tax rebate of £560. Thanks once again 👍🏼 😊
You can claim tax relief by calling HMRC on 0345 300 3900. £810 million goes unclaimed each year, go get yours.
Check out Manual here and get 55% off your first order using my code DTM55. bit.ly/4a13ZVi
Damien, I'm self-employed, with a range of low to high risk investments including SIPP, ISA, crypto, Fundsmith, a property. I've also a LISA I now can't use to purchase a house. My thinking was keep maxing this out each year, because it's £1,000 a year gov top up plus interest. I'm 36, not rich but doing OK. I intend to take LISA out as a lump sum when I'm 60. Do you think my strategy re the LISA is sensible? Some say it's not a good pension, but I aim to use it as part of a mix with SIPP and other investments.
Damian there is not a single pension fund at UK offering ETF of BTC like IBIT (blackrock) at all at UK? How UK people can via pension get exposure to american ETF for BTC or other types? Thanks!!!!
Thanks Damien, do you know if it is too late to apply online for backdating pension relief for TY 19-20, 20-21, 21-22, 22-23? I assume it would have to been included in the 22-23 self assessment? And if it's not done before April 5th then TY 19-20 would be lost? Keep up the good work!
@@honeypablo74you don’t have to complete the SA just call them and see what they can do for you, the rule is 4 years I believe
@@wild_black_bear you can’t at the min mate.
I hired an accountant this year and she identified that my current employer hasn't been doing salary sacrifice. She's submitted a claim to hmrc for me for a £7000 tax rebate! She's applied for rebates for all 7 years I've been working in my current job, not just the 4 years Damien mentions. I'm keeping my fingers crossed
Time limit for a claim to overpayment relief is under Schedule 1AB TMA 1970
The person must make the overpayment relief claim within four years of the end of the relevant tax year or accounting period.
So good luck going back 7 years but don't have your hopes too high. The previous "error or mistake" legislation would have enabled you to go back further but the law was changed in 2010.
You'll only get 4. I had a similar situation where I discovered 2 years after I left a job where I'd been hit by this for 5 years because the company changed pension provider and it was no longer salary sacrifice. Despite overpaying tax for 5 years, because of the delay in claiming it, I was only able to get a rebate for 3 of those years. It was only that good because I managed to sort it out just before the tax year ended - a week later would have cost me another year.
4 is better than nothing I hope others see your comment and are inspired to check
We get taxed so much in the UK but our public services are awful. I've never had a satisfactory answer as to why this is.
Compared to the US we are highly taxed, but compared to most other European nations how taxes are quite low. Note in the US you will have to pay for private health insurance.
The problem in the UK is that people want US levels of tax and European levels of services.
Follow the money. Tax is a scam to keep people poor. People with assets have power and the elites won’t allow this.
Tax money goes to private companies and banks. All elites are invested in these companies so everyone at the top gets rich and services get worse.
@@mrg8537 yes but US salaries are literally 2x more for skilled workers.
We don't get European levels of service
We need to come to terms with the fact that the state pension and tripple lock needs to face a review, we are leaving a terrible situation for our descendents.
@@mrg8537I work in the U.S. and have looked at this with my US colleagues. When you take into account State as well as Federal taxes, they don’t pay that much less tax than we do.
I know someone who has worked as a finance consultant in the public services for years. Yes, they need to be better funded, but as much as that, they waste so much money and have very little appetite to change that
Important point for immigrants: as one working in the UK I found myself having the br tax code slapped on by default and therefore overpayed loads of taxes in my first 2 years until I took the time to understand the system. If you are not from the UK, you may overpay!
Great video. If you have no other things to claim, you don’t even need to fill in a self assessment to claim higher rate tax relief on pension contributions if you are PAYE. Just ring HMRC up and let them know the amount you’ve contributed in the tax year and they’ll sort it on the phone and send a refund for the additional relief. Your tax code will be changed to reflect the saving going forward. Much easier than submitting a tax return for just claiming this relief. I’ve done it a few times. Just remember to contact them again if you change the payments in subsequent years.
You can also claim pension tax relief by calling the HMRC helpline. There’s no need to complete a self assessment unless you already do so.
I have added their phone number to the pinned comment above thanks for this.
If anyone answers before you retire and they actually know what they are talking about and they don’t fell you porkies just to get you off the phone.
Same with charity donations if you're a higher rate taxpayer, or a lower rate taxpayer who has non-GiftAided donations.
Do we need to do this before April 5th?
Good luck getting through to HMRC’s phone, though
The Paul Pogba tax.
Where you sell something, rebuy it, and it ends up going all wrong when you thought you were being clever.
🤣🤣🤣🤣
Pombal is more a case of you find out why the smart guy who ran portfolio sold something that did well afterward when he retired, you thought I can handle this myself and so you bought the asset back for even higher cost and then found out why he sold it in the first place.
Except Pogba was not sold, he left for nothing, bought back for £89m and everything gone wrong after that 😅
@akosiamarillo oh god I didn't realise he managed to run out his contract, he wasn't really on my radar back in 2012.
You are the front runner for the prize here Tom. Once the video has been up for a week I will close the competition
206 with a body kit, now that takes me back! Great video again mate thanks
I dub the new bed and breakfasting as... "morning glory." Thank you Liam and Noel ❤
10:30 *every single year* for at least the last 15 years HMRC have sent me a letter saying "you paid too little tax last year, we need to reclaim it, here's your new tax code". Every year! And I have NEVER had any income that isn't PAYE. I don't understand how they keep getting it wrong - every single year - and always such that I have to pay more. But I don't know enough to challenge it.
Think of yourself as a 'chosen one' 😊
@@adrianl5899 oh... good? 🤣
Do you maybe get benefits from work that aren’t patrolled eg medical insurance? If your employer doesn’t tax them at source then it reports them to HMRC after the end of each tax year and HMRC adjusts your tax code to collect the tax on them
@@simonallum5328 that is a part of it (though I haven't had private medical in every job), but I understand and expect that. The code HMRC assign me is different every year and apparently unrelated to the value of the medical - and has happened even in years when I didn't have medical cover. They just keep saying "you underpaid last year by X, your new code is Y" and the value they pick for X appears to be completely random every time.
Last year, for example, they said I owed £307 for medical insurance (OK) and another £146 "for that year" (why???) resulting in a tax code of 1211LX. This year I owe £307 for medical insurance (OK) and £317 for an underpayment from last year (why???) for a tax code of 1194L. It doesn't seem to make any sense, it isn't consistent, I can't get an explanation from anyone more detailed than "you just owe us more", and things like this happen every year.
Might be savings interest over your p/a, Happens to me a lot.
The UK middle class is brutally overtaxed
Someone has to pay for all those benefit scroungers who simply don't want to bother their arses working, there's plenty of them and the government doesn't care as long as they don't go on to the unemployment figures.
60%…. Jeremy Hunt needs to go
Don't worry wait till Labour gets in you ain't seen nothing yet
@@kw8757if you're still blaming the poor for the issues plaguing our country you haven't been paying attention.
@@RightDenied What about the ones i see on a daily basis on the streets or pubs with booze in their nose, no disabilities and capable to work?
The poor is one thing, not wanting to work as the system gave them free cash, is another thing.
What! I had no idea. And you make a great point when you say pension providers should inform clients about this. It's more money for the clients and for them at the end of the day
Mostly agree with what you said about changing the start date of the financial year, but shifting it to the 1st April would make a lot of sense. That way things like monthly interest payments could be simply summed together to work out an annual total.
That would help a lot. My employer has definitely screwed up in the past and done things like deducting tax for 5 days of benefits that they shouldn't have. Having the tax year aligned with the calendar months people are paid would help prevent a lot of mistakes and need for prorating
'Duck and Dive'. Duck out, then Dive back in.
I kept saying I'll do it, and saying I'll do it... and I finally opened a lisa with Dodl. Thank you Damien - up there with the legends!! So much info and value in 15 minutes here ❤
The Truss tax, looks good on paper, but then the reality hits and no one can save you from it.
I don't wear one, so i'm OK 🙂
Recently lost both parents, so pretty much had to create a will. Dealing with my Father's estate and a 2004 will, which was mostly fine but had some curious choices meant I also created a word doc, stored with the will explaining why and what and some extra help on how to deal with things. Not legally binding, but I think it's VERY useful to have. Being able to talk beyond the Grave I think will also be nice & useful.
Wills can be changed by the beneficiaries as long as they all agree, it's called a Deed of Variation - but if one of the beneficiaries does not agree to the change then it cannot be done. Also, one thing to watch out for is when leaving something to a named person in a will because if that person has died before you, then that gift is null and void, it does not go to their partner or their children or nearest relative unless you so specify.
@@steve6375 Oh I know all about Deeds of variation - We did one with my fathers will, due to him dying under 2yrs of my Gran and thus passed her estate down to his children, avoiding double IHT
However we couldn't pass things to his estraged wife as that would have been tax evasion!
My will is on percertages, so things would shuffle in some cases where a secondary benificeray isn't named.
Not only your loved ones, but all your subscribers know you as a legend!
A vid on that trust or trust options and how to set them up, costs (10 year fee????) would be great
Would love a video with some advice specifically for the self-employed, especially regarding pensions. I feel that there’s a lot of apathy and poor financial planning around because so many of us feel like we’re out on our own. Thanks for your great channel Damien!
How about a video on wills and financial implications?Cos maybe the 60% of 55 plussers who view might appreciate it
I used my LISA to buy a flat last year and I'm about to open another one as an additional pension fund.
The next govt best increase the tax free allowance to £15k the poorest have been hit so hard and increasing minimum wage is just increasing inflation (which I think the govt deliberately wants a wage price spiral).
Perhaps the rise in personal allowance will miraculously align when the number of pensioners suddenly finding they are tax payers, even when only in receipt of their State Pension, causes a political problem.
@@adrianl5899possibly but the majority of pensioners are mortgage free home owners. This pandering to the older generations is ruining this country.
@@Loundsify Politicians pander to those who vote, and always have done, regardless of sense in a big picture.
@@adrianl5899Tories know their voters are 50+
You are an absolute legend my friend!
Went through the questionarie on the hair loss product. It's important to point out that in the last question they make you accept that it is an *unlicensed product*.
Yep I took my 6000 capital gains profit this year and brought back 606 of the 610shares in my isa.
I know nothing about trading /investment and I'm keen on getting started. What are some strategies to get started with?
Well, I picked the challenge to put my finances in order. Then I invested in cryptocurrency and stocks, through the assistance of my discretionary fund manager
Mrs Nancy Williams Laplace
Yeah that's right I think it's right to invest with professional at least it saves the trauma of too much loses
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional
Isn't she the same Mrs Nancy Williams Laplace that my neighbors are talking about, she has to be a perfect expect for people to talk about her so well.
After almost a decade working. I finally know what all the tax codes mean.
Same, after 20 years of working in the UK I was none the wiser!
Glad I can help!
@@boothie15o😊
There is also a K tax code if you’re repaying an underpayment and are higher tax rate (I think)
So if I understand this correctly, the bed and breakfast rule is:
Exiting a position thinking you can just pop back in at anytime then getting stuck outside while getting wrecked
Should be called The Brexit Rule then 💀
There's so much information here. Have to watch it twice to digest. And 1000% worth a share so everyone's aware.
Excellent content, Damien, not only are you producing quantity, you're also producing quality.
Ty for releasing this video now! Completely forgot about my sodding LISA allowance!
Very recently subscribed, I never leave comments but I have to say, I love your humour and style of content, find your videos very informative!
You'd be even more of a legend in that 206 with 4x exhausts though.
Your advice is priceless thank you.
Not only do you have to make sure your investments beat inflation, they also need to net you more than the prevailing tax rates 😩
I just checked on the HMRC website. I thought I had probably overpaid a bit. I appear to have overpaid by over 6 grand! I'm getting that back (and reinvesting it), pronto. Silly me.
Drinks are on you👍
I have never taken advantage of my CGT allowance, I could have been using that to invest in funds in the 23/24 tax year, taken the money out before the end of the 23/24 tax year, let it rest in my bank account for a couple of days and use it to kick start my 24/25 ISA.
Personally, I am in favour of shifting the tax year to the calendar year. In Thailand, where I live, the tax year is January thru’ December, and dealing with 2 non-aligned tax years is a pain.
You mention leaving things in a trust in the end, can you cover his that's done please?
Bed and breakfasting should be known as "the hangover" -
You go out for the evening but in the morning you wish you'd stayed in.
I think you may have covered this in the comments, but you DO NOT HAVE TO DO SELF ASSESSMENT. You can call or use the webchat if you are a PAYE employee and have paid less than £10k into your pension.
The annual pension allowance across your example family of 4 is £127,200 not 120,000.
You’re already a legend 🙌🏻
Thank you. My sons will be grateful too. ❤
You forgot about giving from you own income as long as it doesn't affect your standard of living
THANK YOU! I’ve been trying to this information for the last couple of months and I couldn’t find it.
Nice one for clearing that all up.. i still thought we was allowed 12,300 cgt allowance.. how this countries ran is beyond a joke they try get every little tax out of someone as possible
Only tax the working class. The Uber rich get away with it. Duke of Westminster paid no inheritance tax on 8 billion. Zero, nada. But your parents house that has shot up in price and is now worth £££ could see you having to stump up 40% of some of it. Nice eh.
I've been putting off the Will for too long, where do I start? Any simple step by step guides would be much appreciated 🙏🏼
Possibly the biggest single financial planning event of your life.
How about taking paid, professional advice tailored to your exact circumstances?
Cheers Damo - always a pleasure, bud
Happy Easter 🥚🙏🏻❤
I claimed my pension money back today! Thanks!
YES! Love this thanks for letting me know.
The dividend allowance at £500 and CGT on £3000. Seems like a tax on the MCs as usual. The rich dont get involved in these small fry things, they've got limited companies paying low tax and stuff offshored.
Most of us (Workplace pension ) will get the net pay method pension relief so contributions are deducted before tax - no need to complete hmrc docs. I’m not salary sacrifice, just workplace pension that deducts pension before tax.
The most common workplace pension is NEST. And that's Tax Relief At Source, not Net Pay.
Thank you for your content Damien. Please please can you do an updated video on REITs investments and your views and recommendations. I trust your opinions. Thanks. 😊
Not related to the financial year but people should double check their student loan payments after the tax year, they usually claim more than they should and owe a few hundred at least usually, can claim back from upto 5 years i believe
Something like 'tax loss harvesting' but utilising free allowance before it expires.
Bed and Spouse is also another CGT helper, but doing that is not straight forward from my basic understanding. Maybe you could help explain it?
Great tips. Where can we find the interview with Tom Morgan?
What great Information Thank you. Im still digesting it..
My first job involved payroll so i caught on what tax codes were about pretty quick & when/how to get it changed.
Good to point out the LISA becomes USELESS if what you’re looking to buy is over £450k
You can also use them to invest for retirement. But yes the property cap needs increasing.
And if anyone is likely to need pre-retirement benefits access (Universal Credit), LISAs, like normal ISAs, will count for capital - and potentially disqualify access to UC - whereas pensions do not.
Would you really need the government add on if you were first time buying at 450k.?? It’s set at this figure for a reason.
@@geeman4041 what if you are couple with kids in an area where a 3 bed house is on average more than 450k? you have saved for years to get a deposit. Do they not deserve the same support?
It isn’t all single people looking to buy terraced houses that are first time buyers anymore.
@@geeman4041 £450k in 2017 (when set) has an inflation value of £575k today, and house prices have risen an average 30%. London is especially hit hard as first-time homes in 80%+ of the boroughs exceed £450k. Of course, some people share your view, but given how quickly it has lost its value compared to previous, while retaining its punishing charge to withdraw prior to 60, there are also arguments to adjust the LISA rules.
You are an absolute Legend!!
The WAM tax rule
Wait
A
Month
Great video Damien and I’ve been advising colleagues at work to call HMRC to claim their extra 20% on pension contributions and people just don’t realise this.
Yeah it is 810million a year unclaimed! Pension providers should be telling their customers it is a joke..
@@DamienTalksMoney to be fair, employers that run pension schemes should also provide the information which would help the most.
I really wish I had known about the CGT allowance deductions earlier, but I wasn't following the budget so closely 3 years ago. 12k down to 3k allowance is a huge change. I would like to sell some shares to put towards a deposit, but now I find myself in the firing line for CGT. I appreciate its a privileged position to be in, but I have no house, no car etc and I'm just trying to get together a house deposit, I'm no millionaire. Its disappointing that the government wants to tax me twice after I already paid full tax on the money before investing it, and chose to act responsibly and made sacrifices to invest it in the first place.
Where did you invest it? If in an S&S ISA, no CGT anyway. (If not... why not? No judgement from me because I don't know everything either, but that's what ISAs are for).
@@BittermanAndy Employee Share Purchase Plan a while ago. Indeed - I use ISA for everything else.
With the benefit of hindsight I would have been withdrawing from the ESPP each year to max out the allowance and feeding back into my ISA, which I have not been able to max out most years.
@@zerotree1310 Ahhhhh, I see... yeah, that's a bummer.
I believe the slashing in CGT allowance will have also caught out people running things like Bare Trusts for grandkids. Plenty will fall foul of it, sadly.
Great Video.
Hey, Desmond, don't, stress the hair, if your eyesight goes a bit too, there is nothing sexier than a bald head and seriously stylish glasses. 😉
(I might be wrong on that though. )
Alternative names for bed and breakfasting:
Lay then slay.
Or
Dump then pump.
I've crossed the £50k threshhold for the first time (accidently), been reluctant to do it because I have to start paying child benefit back at roughly 20% of my earnings between £50k - £60k, essentially making my tax and national insurance something like 65% for earnings in that bracket... as far as I understand
From this April the threshold is now £60k before paying any child benefit back 🙌
You can pay into a personal pension to reduce your income back down below the £50k threshold. You'd need to do that by 5th April if you want it to count for the current tax year. Next tax year the threshold is £60k, as @tomabbott9639 said.
Keeping on top of your tax code is important but it's difficult when your income is variable, e.g. if you get a bonus or restricted stock unit vesting events and these amounts can be variable. I always seem to either end up underpaying or overpaying tax by the end of the FY due to shifts income and HMRC adjusts my tax code for a few months thinking I'm going to be earning that amount forever. I've just given up now and wait for the refund in the self assessment.
Good Morning Damien, Great Content as always, the straight talking, well presented facts are always great to watch. I know ill probably speak for a lot of people when i ask this, but could you do a detailed video surrounding your first subject. Im self employed and dont really know the ins and outs of allowances for sipps etc and would be helped with a more indepth "how to" style guide.
Happy easter, dont eat to many eggs, keep up the great work, thanks
I was really hoping that T212 would allow me to pass my investments onto my children in the future.
Seems they don't have any plans for that. Not sure if they ever will
Great video, any chance you could do a video on using General investment accounts then using Bed and ISA to top up your ISA each year. What tax’s apply or if this is a good way to invest on top of the £20k. Thanks
Wills sorted ISA maxed out for 23-24 and ISA's planned for 24-25 for me and the Mrs will mean no tax on savings this coming year
Hangover tax
Brilliant vid damo very helpful,could call it thrusting = in and out and in and out 😂😂
Thanks Damien. You are a Legend. 😉
I'm in the 40% tax band - I dont understand the first claim of this video - do I need to be in a salary sacrifice scheme to do this? i'M in the auto enrolment of my pension
The crypto trick should be called: Crypto Retraction Alternate Position. "Hey, Damien just crapped on HMRC"
You're a star. Thank you.
Should be called dip dabbing. A special ode to retrieving that sweet sherbet over and over
There's always hard to talk about the Gregorian calendar 😉
As Damian mentioned at some point in this video, I am in the exact situation where my tax code has been reduced this year in order for HMRC to collect some tax that I owe. The amount my personal allowance has been reduced by is £6000 because I owed £2400.
As I understand it, if my personal allowance is reduced by £6000 then this £6000 is added to the amount that I pay the 20% basic rate on. So instead of paying the basic rate of 20% on £37430 (£50000 - £12570), I am taxed 20% basic rate on £43430. This is not correct though, as I am being taxed 40% on the £6000 in order for HMRC to collect the £2400 I owe.
My tax code has been reduced from 1044L to 444L.
Basically I’m just trying to understand where am I making the mistake and how does the tax calculation actually work when the personal allowance is reduced.
Thanks a lot to whoever takes the time to read and try to explain this to me.
Bed and Breakfast ISA suggestion - Lunar Landing Savings, given you can sell and rebuy in the ISA within 30 days, the Moon's Cycle is 28 days. I would consider moving the money from Earth (GIA) to the Moon (the ISA), given no Government owns the Moon, you saved your money to somewhere they cannot get at it! 😂 As Buzz Aldrin once said, that is one small step for man, one giant leap for the government to not touch your money!
Yay, shout to Toby!
Hi Damien Please could you share a link to the discussion about gifting you mentioned in the video. Thank you
Hey Damo do you have any spreadsheets or software recomendations to calculate CGT?
Excellent blurb 👍👍
As always, this is a really good video and insightful. But let's address the elephant in the room. What happened to Cobweb? He hasn't made an appearance in ages.
Great video, so helpful, thanks 👍🏻
As an employer I’m going to check this! Is ‘relief at source’ contributions covering this?
I believe relief at source does yes, but i am unsure
THE NEW NAME FOR THE BED AND BREAKFAST: The the self-catering airbnb tax ;)
5:15 Instead of bed and breakfasting, how about tax gain harvesting? That's what I'd call it.
Can anyone offer any advice.
I’m now a higher tax payer.
I’m 38 and 39 later this month.
I have an ok pension but want to add more.
Should I pay £200 into my pension as BRASS (AVCs)
Or should I diversify and open a LISA. Put the £200 into that and have a separate pot when I turn 60.
Am I correct to believe anything into my workplace pension would save me 40% tax and anything I put into a LISA topped up with 25%.
Is it as simple as going with the higher % 🤷♂️
What about a pension when you are self employed
great video as always, could you do a video on wills?
I see the option to use the past three years of unused pension allowance on the HMRC website. I think that you misspoke at 2:08 when you say four years.
You may be thinking of the carry forward rules, whereas Damien is referring to getting unclaimed tax relief via the backdating rules.
@@adrianl5899 You are right. Thanks for the clarification.
@damientalksmoney just wanted to say a big thank you. As a higher rate tax payer, after watching your video, I contacted HMRC and managed to claim higher rate tax relief on my pension. I had no idea this existed until watching you . Two days later I got a healthy tax rebate of £560. Thanks once again 👍🏼 😊
YES!!! I love this. Thank you for letting me know and that more than pays you back for listening to me yap on for years haha
Also you get to do that every year now!
Man City Cooking The Books Tax
If you think Bed & Breakfasting is an awful name, wait until you find out about it's younger, legal brother - Bed & ISAing
It’s not “if I die” it’s when I die
My friends, Elon and Zuckers, disagree!