Have You Planned For Tax Year End?

The tax year end is fast approaching - if you are a doctor in Bristol - now is the time to start planning to maximise your tax allowances and reliefs. Here is our guide on what you should be doing now.

Make Use Of The Income Tax Personal Allowance

The standard personal allowance is £10,000 - which is basically the amount you can earn before you start paying tax. If you are a doctor with a partner or spouse who pays tax at a lower rate than you can consider moving assets into their name.

In addition, if you are a doctor affected by one or more of the main tax thresholds (higher rate, £100k+ therefore losing your personal allowance, child benefit or the additional rate tax threshold) you could consider making a pension contribution. A gross pension contribution could recover or reduce the loss of personal allowance or child benefit or reduce the tax paid at higher or additional rate. Be mindful of the recent pension caps though.

Make Use Of The Capital Gains Exemption And Any Losses

The capital gains exemption for this tax year is £11,000 meaning that a doctor can realise gains of up to £11,000 this year without paying any tax. If you are a doctor who holds assets (for instance stocks and shares) outside an ISA, you should consider realising the gains, using your capital gains exemption and then consider alternative planning - like for example investing in an ISA or pension.

In addition, if you have losses carried forward from previous tax years, it may be that you can realise even great gains this tax year before onward investing in tax efficient wrappers like ISAs or pensions.

Make Use Of The Inheritance Tax Exemptions

Where inheritance tax could be a potential issue in the future, doctors should consider gifting assets up to their annual exemption of £3,000 (and if not used, this exemption can be carried back to the previous year). This may not seem a significant amount but the £3,000s can build up over the years.

Also consider starting gifting out of normal expenditure - the gifts must be out of income (not capital) and must not effect your standard of living to be effective for inheritance tax planning.

Make Use Of The Pension Allowance

If you are doctor with a non-earning spouse/partner it is still possible to contribute to their pension up to a maximum of £3,600 gross in a tax year and still get £720 in tax relief even if your spouse/partner is a non-tax payer.

Remember the maximum deemed pension contribution per tax year is now £40,000 and this includes your NHS Pension contributions (3 year carry back is available for un-used pension allowances brought forward).

Make Use Of The ISA/JISA Allowance

It is now possible to shelter £15,000 in an ISA in stocks and shares or cash or any combination of the two. If the allowance is missed in the tax year - it is missed for ever. So all doctors should at least consider their ISA allowance for this tax year. 

In addition, the Junior ISA and Child Trust Fund limits are £4,000 per year and give similar tax free investment opportunities.

Consider Investments That Give Tax Relief - Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs)

Investments in VCTs or EISs receive tax relief upfront of 30% subject to maximum investment amounts (currently £1m and £200,000). These investments give an income tax reduction (i.e a refund) and are highly tax efficient.

If you are a doctor in Bristol who now needs to start considering their tax-year end allowances and reliefs - then get in touch for an initial discussion over the options. Call 0117 966 5699 or email richard.higgs@wealthwestmedical.co.uk

 

 

 

 

More News
Can doctors trust the rising market? Monday, July 23, 2018
Quote Mark
  • "We have been very impressed with the personal service, attention to detail and comprehensive evaluation of our financial circumstances. We would certainly appreciate ongoing help and support from Richard over the future." Jason Kendall (Consultant in Accident and Emergency), Southmead Hospital
  • "Richard provides a very convenient and personal service. Richard has good knowledge and has the ability to go through reasoning for any recommendations." Tim Mitchell (GP), Montpelier Health Centre
  • "Richard provides an excellent service, prompt and flexible. Although the level of technical knowledge is impressive, answers to our questions are presented in a straightforward manner, without overwhelming us with information." Mary Gainsborough (Consultant in Paediatrics), Southmead Hospital
  • "Richard gives me an excellent personal service in my own home. His advice and explanations have been excellent. Richard also has excellent technical knowledge – who wouldn’t be happy?" Charles Record (GP), Frome Valley Medical Centre
  • "Richard provides an excellent, personal service. He responds very quickly and attentively to queries and very much keeps me up to date with important matters that affect me - such as the latest changes to pensions, investments and taxation. Recommendations are delivered in a timely, effective manner - usually face to face in my own home." Professor Gianni Angelini (Head of Cardiothoracic Surgery), BRI
  • "It is very convenient for me to be seen at home and Richard is very flexible with timings - especially when unexpected things crop up at the hospital. Meetings are friendly and relaxed with my long-term best interests very much at the heart of discussions." Professor Gianni Angelini (Head of Cardiothoracic Surgery), BRI
  • "We have found it far more reassuring having a local adviser rather than a national firm. We have found the service excellent and Richard answers all the questions we want answering. Richard's technical knowledge is excellent, he has detailed knowledge of pensions." Paul Male and Helen Lewis (GPs), Thornbury Health Centre
  • "The personal touch counts for a lot and the willingness to visit us at home is much appreciated. Richard provides an excellent, friendly, accessible service, not encumbered by jargon or salesmanship." Professor Peter Mathieson (Honorary Professor of Medicine), University of Bristol
  • "I can recommend Richard as providing measured, balanced independent financial advice. He listens very carefully and tailors advice appropriately in a knowledge-based manner. He is very accessible and gives his clients time and clarity in order to make the most sensible decisions for themselves based on the available facts." Andrew Medford (Consultant in Respiratory Medicine), Southmead Hospital
  • "Richard now knows me and understands my financial position. I have complete trust in his advice. The level of service I have experienced is second to none. We have received regular reviews in our own home, speedy and thorough advice to any queries." John Rees (General Practitioner, Specialist in Urology ), Blackwell and Nailsea Medical Group
  • "The advice I have received has dramatically altered my personal protection policies for the better and reduced my personal tax liability." John Rees (General Practitioner, Specialist in Urology ), Blackwell and Nailsea Medical Group
  • "I appreciate Richard's local knowledge and the fact that he is in contact with a lot of local general practitioners which is useful for networking. He is also very knowledgeable about the different pension schemes and their pros and cons." Fiona Hayes (General Practitioner) Bristol University Student Services
  • "I have enjoyed the process of dealing with a local advisor and it has not felt like a box ticking exercise. The service has been excellent. The great flexibility to come to my home at a time suitable to my working day has set this company apart from others I have dealt with in the past. The technical knowledge provided has been expertly tailored to my requirements and financial situation. The manner in which it has been delivered has also been first rate. " Beth Harrison (General Practitioner) Montpellier Health Centre
  • "We have regular meetings with the same adviser who knows our profile and keeps our requirements in mind with the plans he makes. The reviews are simple to organise and are always at a convenient time and location." Mike Bould (Orthopaedic Surgeon) Western General Hospital
  • "The service I have received from Wealth West is excellent! they are more personable and accessible than large firms and are not pushy at all. They also have a very good breadth and depth of knowledge." Billy and Annie Headdon (Anaesthetics and Intensive Care Trainee, General Practitioner) Montpelier Health Centre
  • "My experience of the service has been excellent. I have been able to ask many questions and have received excellent advice on my financial situation. The technical knowledge of Wealth West Medical is excellent. Anyone who can help my investments grow in the current environment clearly knows what they are doing. I would highly recommend Richard and Wealth West Medical." Linda Buczek (General Practice Manager) Bishopston Medical Practice
  • "The technical knowledge of Wealth West Medical is very good. Richard keeps up to date with the changes to the NHS pension scheme and new legislation." Melanie Lockett (Consultant) Southmead Hospital
  • "Wealth West Medical offers a friendly, helpful and efficient service. Richard keeps in touch at regular intervals and has a very good knowledge of pensions and investments." Rachel Brown (General Practitioner) Montpelier Health Centre
  • "Richard comes to my house for meetings and it is nice to see a familiar face. He remembers my details, and advises over the long term. Richard has a detailed understanding of my particular pension plan and has explained this very clearly to me. He has also helped me to manage tax payments for annual allowance and pension protection." Hugh Herzig (Consultant Psychiatrist) Southmead Hospital
  • .