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This week we will tell you a tax saving story.
Mr and Mrs A is a lovely couple. Mr A has a great job that he loves and pays well while Mrs A doesn’t work and takes care of the family.
Mrs A doesn’t need to work because Mr A is a highly paid individual and is a additional rate tax payer i.e. pays tax at 45%.
Mr A is also a keen saver and put aside a decent amount of his monthly income in a savings account which produces an interest income of £10,000 per year. As he is a higher rate tax payer he pays £4500 in taxes which gives him a net interest income of £5,500.
Mr A uses this money and takes the family on a basic holiday.
One day Mr A was browsing through his Facebook and noticed the Taxserve tax tip with a subject of use tax to pay for your holiday. This caught his attention and he decided to contact his accountant before the yearend for a change. The accountant advised him to transfer the savings into an account in Mrs A name and by utilising her personal allowance the whole interest of £10,000 could be received tax free.[/vc_column_text][vc_cta h2=”Are You Looking Our Fees Calculator Please Click Here” h2_font_container=”font_size:20px|color:%23ffffff|line_height:24px” h2_use_theme_fonts=”yes” shape=”square” style=”flat” add_button=”right” btn_title=”Calculate Your Fees” btn_style=”flat” btn_color=”theme_style_2″ btn_align=”right” use_custom_fonts_h2=”true” btn_link=”url:https%3A%2F%2Fwww.taxserve.co.uk%2Fcustom-calculator%2F|title:Custom%20Calculator||” el_class=”third_bg_color” css=”.vc_custom_1594383286890{margin-bottom: 0px !important;padding-top: 10px !important;padding-right: 10px !important;padding-bottom: 10px !important;padding-left: 10px !important;}” h2_link=”url:https%3A%2F%2Fwww.taxserve.co.uk%2Fcustom-calculator%2F|title:Custom%20Calculator||”][/vc_cta][vc_column_text]This means a potential savings of £4500 in taxes.
This year, Mr A took the family on a luxury holiday.
What kind of holiday would you take your family?
Please note: This doesn’t not constitute as tax advice. Professional advice must be sought before any tax planning. The tax planning may differ based on your individual circumstances.[/vc_column_text][/vc_column][vc_column width=”1/3″][stm_sidebar sidebar=”311″][/vc_column][/vc_row]