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i.m.bookkeeping

info@imbookkeeping.co.uk

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Opening hours:

Monday - Friday

8:00 - 16:00

Weekend and bank holiday closed

Saving tips

Please note we are offering general guidance only for our saving tips. If you would like to invest we are refer you to our Investment partners.

What is a Personal Pension?

A Personal Pension is a tax-efficient savings scheme used to build an income in retirement. You can usually invest up to 100% of your income up to the £40,000 pension annual allowance, so if you earn £35,000 this tax year, you can put it all into your pension. Please refer the section below in connection with the tax relief that is available on personal contributions.

There is also a lifetime allowance for pensions, which is currently £1 million. This is the maximum amount that can be held in your pensions at retirement.

Importantly, the age at which you can cash in your pension is currently 55.

You’ll, have a lot of freedom over how you can withdraw and spend your pension. You can:

  • Take the whole amount with 25% tax-free and 75% taxed as income
  • Take 25% tax-free and draw the rest as income over time
  • Take no lump sum, but a regular income with 25% tax-free 

If you would like more information please do not hesitate to contact us.

WHAT IS A STOCKS & SHARES ISA?

ISA: INTSANT SAVINGS ACCOUNT

A Stocks & Shares ISA is a tax-efficient savings scheme that allows you to invest up to £20,000 in the 2017/18 tax year. Using up your allowance each year can significantly boost your investments and save you tax when compared with other saving and investment products.

You can open a Stocks & Shares ISA if you are a UK resident aged 18 or over.

Please do not hesitate to contact us if you need more information.

WHAT IS A GENERAL INVESTMENT ACCOUNT?

A General Investment Account is similar to an ISA, but without the tax-efficient treatment of your money. You pay Income and Capital Gains Tax on the money in your investment account, based on your personal tax circumstances. We’ll send you a personal tax report each year to help you fill in your tax return.

If you’re a basic-rate taxpayer, the dividends you receive from holdings in a GIA have a non-refundable tax credit, which satisfies your income tax liability in full. If you’re a higher or additional-rate taxpayer, you may be liable at a higher rate.

Withdrawals from GIAs my be liable for Capital Gains Tax, although you have an annual capital gains allowance of £11,300 in the 2017/18 tax year.

You can open a GIA if you are a UK resident aged 18 or over.