Page 4 - Budget Newsletter - March 2023
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12 Quick Tax Tips
1. Don’t waste your (or your partner’s) £12,570 personal allowance.
2. Don’t forget the personal savings allowance (PSA), reducing tax on interest earned.
3. Don’t ignore the dividend allowance, a saving tax of up to 39.35% on £1,000 of dividends in
2023/24.
4. Don’t dismiss NICs – they are really a tax at up to 25.8%.
5. Think marginal tax rates – the system now creates 60% (and higher) marginal rates.
6. ISAs should be your first port of call for investments and then deposits.
7. Even if you’re eligible for a Lifetime ISA (LISA), you still might find a pension is a better choice.
8. Tax on capital gains is usually lower and paid later than tax on investment income.
9. Trusts can save inheritance tax (IHT), but suffer the highest rates of CGT and income tax.
10. File your tax return on time to avoid penalties and the taxman’s attention.
11. If you are entitled to a company car, going hybrid or electric could slash your tax bill.
12. Don’t assume HMRC won’t find out: evasion is always illegal.
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