How to Pay £0 Tax on a £57,000 Retirement Income
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- čas přidán 27. 06. 2024
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Capital at risk. Past performance is used as a guide only. It is no guarantee of future returns. Different funds and asset classes carry varying levels of risk depending on the geographical region and industry sector. You should make yourself aware of these specific risks prior to investing. Offshore investment bonds are medium to long-term investments and should not be
entered into if you envisage withdrawing your money during the first five years. It can take longer to access funds held in an offshore bond than funds held in your own name, and there may be restrictions on the type of investments you can hold in an offshore bond. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change. We do not provide tax advice. Any examples used in the video are for illustrative purposes only, and you may get less back than the figures shown. This video does not constitute personal advice. We do not take any responsibility for third-party websites and content we may link to from this video.
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00:00 Intro
01:06 Their starting situation
02:37 Where we invested their money
05:25 How we created their income
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What a fantastic and informative video. It is refreshing to see an actual qualified and knowledgable financial advisor on CZcams.
Really good as ever James. Had to concentrate on this one more than usual!
Just like watching a magician at work !! And with a good explanation, too!
James, excellent explanation of the starting savings tax rate thank you. Saved in our watchlist!
Great video James - thank you.
Another tool in the box is holding UK Government Bonds (Gilts) with low coupons in the GIA as they are CGT free. Income is returned as capital gain as they mature.
Thanks had been, been meaning to nail down the taxation order and this was a perfect explanation. Also not really an issue for the professionals, but one of my overriding requirements is to avoid unnecessary paperwork. Especially a tax return, I'll happily trade a little return to avoid having to fill one of those in. To that end, I hold my emergency money in premium bonds as being tax free it also doesn't generate a reporting requirement, if I had that cash anywhere else it would. If I had to complete a tax return no matter what - I would likely deploy that money differently.
Another great video. Please don't go mad with animations in videos, I like the simple format you have now :)
Could you please one day do a video on fixed term annuities, thanks.
Great video, James - I thought I'd sorted out my tax planning but this gives me a few more tools in the box (especially the starting rate for savings). In terms of asset allocation I guess there's one more optimisation tweak, which is to put the higher-growth assets (equities) into the lowest-taxed buckets (ISAs), and the lower growth assets (cash, bonds) into the higher tax buckets (GIA, taxable pension drawdown).
You could choose to do that, especially if you can use the starting rate for the savings band to shelter bond coupons.
However, I would argue that, for DIY investors, keeping things simple is often more important than min-maxing the tax efficiency.
I hope in 16 years time when I retire. Your still working. Wonderful work
Really great video James, thank you
Good video James. Didn't know about Offshore bonds. Alex
Interesting example of methodology to minimise tax most of which I have been following for several years after early retirement without the need for any financial advice.
The reduction of GIA capital gains and dividend allowances was something I could see coming a few years ago, so I maxed out ISA contributions after retiring by moving GIA into ISA for several years.
Offshore bonds are however new to me and perhaps something to consider upon receiving an inheritance.
This was a great video albeit i had to concentrate to follow it. I think the biggest take away was the cavet in the last minute. Had they put more inyo ISAs and pensions they could have made life so much easier for themselves.
The last minute was the most important lesson agreed.....👌
A brilliant video and perfect timing for me as we're soon to retire and will also be selling BTLs.
Another excellent video- and I really like the current content format
I'm glad you found it useful!
I happily was aware of all these methods, I must be learning 😀 thank you
Love the new sponsor :) Good luck with the hire.
As always - excellent!
Glad you found it useful!
Best you've done James, and demonstrates what value a financial adviser gives for a retiree given the complexity of taxation. No mention of funds, best ETF's, asset allocation etc. The more that governments attempt to tax, the more valuable your knowledge
This is really how a couple can pay zero tax on £57,000, not how one person can pay zero tax on that amount.
he says 8 seconds in that its a couple😂
@@nickb2179 Yes, but the title is a bit misleading, maybe the title should be *"How Couples Can Pay £0 Tax on a £57,000 Retirement Income"*
@@caparn100stop being a pedantic bore.
A single person can use a lot of this. It's informative and awesome.
This is CZcams!
Very interesting but I’d still recommend they put 50k each into premium bonds where the income is tax free. Also short term low coupon gilts are a good home for GIA money.
Is there more information on bond coupons and them counting towards a saving allowance tax free up to 1k? I didn't know you had a 1k allowance for them on top of the usual savings interest of 1k. Are they totally seperate?
If there's something I like in the UK's taxation system is its simplicity. So easy to understand and follow all the rules. 🙄
Hi James. Great videos. So glad I found you this year.y family and i look so much better in the future thanks to your guidance.
A quick question, if we were to come into a large sum of money, say £100k, we don’t not need this before retirement in 20 years, would it be wiser to put the whole amount into a single pension and take advantage of the fast compounding effect after 100k? Or should we split the funds 50/50 into both mine and my wife’s pensions?
I appreciate your comments are not advice
Hi Adam, if you split it into two different pensions it should not affect the the rate of compounding. Whose pension you put it into will depend on who gets the most tax relief, the current size of each of your pensions and what other income you each expect to have at retirement.
I have always been an advocate of keeping it simple, throw money at the mortgage and the pension. I know James will be right and tax saving are probably achievable, but I know exactly where I am with no mortgage and everything in a tax efficient pension. Works for me and stress levels are at an all time low.
For the vast majority of people, a simple pension and ISA will suffice. It does not need to be more complicated.
Wondering if you could do a piece on Equity release as part of retirement planning, in the case where inheritance is not an issue is it worth considering to protect pensions and other tax efficient savings for say 5-7 years as I understand it is tax free, would be interested to hear you views on this, I’ve watched a lot of your posts but do not recall you ever mentioning this option
Thank you James. Another great vid.
If someone has a db pension of £7k pa, and no other income, how much savings interest can they receive tax free please? I'm thinking it would be the full £5k.
Thank you.
Showing your value add as a financial planner there. Great video. Could you do a video on all the tax efficient methods for achieving extra income if you are still working?
Although having run two small businesses for 25 years I worked it all out for myself. There is a lot to be said for doing your own company accounts and personal tax planning. You really get to understand all the nooks and crannies of our over complicated tax regime.
there was a sneak unveling of the offshore investment at 5:32 🙂.
Interesting... very complicated. James, how much would it cost for this advice & set-up? On-going fees as well presumably. Thx
curious on this point as well. Compared to a simple self manageable strategy. Though I suppose once you've worked out the ongoing strategy much of this would be self manageable.
Hi James, any chance of covering rolling old pensions into a current work place pension while considering ’protected tax-free cash’, in an old pension and its impact on planning for early retirement? Keep up the great content!
How large is your protected tax free cash?
High quality content. Thank you
I'm glad you found it useful!
Great video, as ever
Thanks 👍
Hi, Have you ever done tax and investment advice videos for dual citizens, who live in a different third country? If not do you fancy doing one ;)
One thing you could have mentioned was low coupon gilts which have tax free capital gains.
That's an option however, it's fiddly to implement in practice without messing up your asset allocation. I would only expect people with large portfolios to try and do this.
And the cost to set up and run???
Whilst this method is best for paying £0 tax, how does it compare vs putting more cash in GIA which likely to earn around 10% income compared with interest on savings?
Does all that tax free income still need to be reported to the tax man? Specifically been wondering lately if I'm earning over £500 dividends from a GIA but less than £12570 and I have no other source of income (except from an ISA), the amount of tax I pay would be zero but do I still need to declare that income?
Is there a limit of the number of times you can take tax free lump sum up to the 25%?
In all fairness your videos are great James. What editing and info graphics software do you use?
Final cut pro and I just make the slides on Canva. Simples.
Great video, James. It seems such a complicated system - how is the average person meant to navigate it?
Fortunately, very few people will ever have a situation as complicated as this.
brilliant video, thanks James. Am I being silly here - could you also withdraw 20K from each ISA per year and replenish the ISA from the GIA every new tax year. Is this bed and ISA
I'm glad you found the video helpful.
Typically it would make more sense to take £40k from the GIA, £20k to spend, and £20k to sub your ISA.
A really interesting and more importantly a very informative video, and I definitely learned met about the starting rate savings band , and an extra 5 k tax free helps a lot
Glad you found it useful!
@@JamesShack what’s not helpful is people impersonating you and dodgy WhatsApp numbers…. Be careful
@@5dils unfortunately CZcams does nothing to prevent them. They are a scourge.
Nice timing!
James is it true that if you only take the tax free element from your SIPP and don’t take income. You can still contribute up to 60k per year in the pension
Interesting video. Never heard of off-shore bonds before.
I'm glad you found it useful.
My wife (61) is unable to pay 1 years NI to be able to receive the full pension from her early years, are any 35 years applicable?
Hi, Have you ever done tax and investment advice videos for dual citizens, who live in a different third country?
I have not, very niche and complicated stuff!
Could you please cover the Starting Rate Savers Band in another video in more detail please?
I’m a director of a Ltd company so have asked my accountant if I can pay my £12,570 salary, then earn £5k in tax free interest in savings, then additional dividends after that upto the £50,270 and pay less tax to get the same income.
Accountant has said I don’t qualify for the Starter Rate Savings Band so I’ve found this confusing as it contradicts your video how I understand it,
Awesome video!
Thanks
From the information you've given, it seems like your accountant is wrong. However, there may be some other factor that you have not mentioned that affects your eligibility.
From the below link:
The starting rate for savings band is £5,000 for 2024/25. The 0% rate applies to as much of the first £5,000 of taxed income (after deducting the personal allowance and blind person’s allowance, if eligible) that is savings income. Dividend income is taxed after savings income and therefore, dividend income will not affect eligibility for the starting rate for savings.
www.mandg.com/wealth/adviser-services/tech-matters/investments-and-taxation/taxation-of-investment-bonds/chargeable-event-gains-bonds#:~:text=The%200%25%20rate%20applies%20to,the%20starting%20rate%20for%20savings.
10:34 ?? 5% need corporate bond to get that, gilts are coming down. Also, they already have 30k in cash so that’s already used up the some savings allowance.
Are dividends from a pension drawdown account taxed when the dividends go into the account or only when you withdraw them?
No tax inside the pension. You're only potentially taxed when you withdraw.
I sacked off SJP as my financial advisor but seeing videos like this makes me think I need to hire James ASAP!! 😂 When is the right time to get advice James? I'm 38 but don't want to miss a trick.
Don’t be lazy. All the information is out there if you go looking! Good decision to dump SJP. The most expensive fund platform of them all, leeching off pensioners that don’t understand they are being robbed blind.
The UK tax system is stupid complicated. Place your bets now on whether Labour will make it simpler or more complex 🤔. We need a system reset.
How is it complicated? Anyone with the internet can search tax allowances, order of taxation and build a planner within a few hours at most
Reform are offering the reset. Search Google for 'Reform UK our contract with you'
America enters the chat
@@manni192 So much easier said than done, you think that everyone has the acumen of a financial expert.
There must be a reason that people dedicate years into becoming accountants and financial planners.
You think a lay person can sort out their financial affairs in a few hours by just having the internet and knowing their tax allowances.
You must also believe in flying pigs and unicorns or you have probably spent your life dealing with these products.
I think it might get simpler, simplification is a potential justification for higher. Merging capital gains into income tax for example
11:41 for equity, aren’t they buying similar but different equity funds to avoid the share matching rules ? E.g. buy ftse developed, sell and replace with msci world and after the time limit buy back? Cycling similar but different products to rebase their CGT ?
Not here specifcially, but you may want to do that if you need to flush our CGT and make use of your (very small) allowance.
When do the couple run out of the £57k a year start to earn less or just state pension?
They don't. As he said, it's sustainable. They can take it forever
Is it best to contribute as much to a workplace pension, SIPP or Stocks & Shares ISA? If you're in your 20s?
It depends...if you are lucky enough to have a generous employer who puts money into your workplace pension, then you should take advantage of this. I worked 20 years for a company which paid 9% of my salary into my workplace pension, provided I put at least 5% in. I made sure to do this and after 20 years I had enough in my pension to be able to take early retirement. 😃 Even if you don't have a generous employer, it's still a good idea to put as much as you can into your pension for the tax relief. The other thing to consider if you're in your 20s is where the pension money is invested. Since you have a long time for money to grow you want to be 100% stocks & shares, not bonds, and ideally global, passive (low cost) funds, not expensive actively managed funds.
The ISA is also good for any "spare" cash since you could withdraw this if needed before retirement age, if you wanted the money for a house or car for example.
And how much does it cost to set up and run an offshore bond Inc advisors fees?
Because of its complexity, you would only set up an offshore bond as part of a full financial plan. What you pay for that depends on the complexity of your situation.
At my company, we do not charge extra for setting up a bond over a GIA, and the ongoing fees are similar.
Was using multiple identities the key to Henry / Harry tax efficiency?
Correct
This is fantastically informative, I have another 25 years at work before i have to worry about how i get to my pension/savings. My question would be: How do I access these different savings accounts and report to HMRC what i have actually 'earned' from them? Do you have to do some form of self assessment during retirement?
Yes, the same self assessment form that I used before retirement. I have income (from my pension) and interest (from savings) in just the same way.
@@TonyWhitley Thanks!
Such a complex tax system that only those with the means to engage a professional can fully benefit from it. And this is why the rich get richer and pay less tax than the average person
10:36 two and five percent of 50k is more than that isn't it? also, can't they just keep the overall portfolio 60/40 but keep proportionally less equities in the GIA's so they stay approximately under the dividends allowance? would there be enough leeway for the bonds interest with no tax? and the assets with less growth potential are taxable so hopefully they should get ploughed into the ISA quicker in future years if they don't grow as much.
Remember it's 2% on £30,000 and 5% on £20,000. 60/40 portfolio.
You could could do all of that but it was beyond the scope of this video.
@@JamesShack ah of course! We'll have to agree to disagree on my suggestion not being in the scope of the video. Paying less tax is the whole point of the video and my suggestion seems like it would help by lowering unsheltered dividends. Unless I got that maths or understanding of the tax wrong too?
is there a typo in 7:23 for Anna's tax free cash? thought it was 356 rather than 365
How on earth did you spot that! Yes, there is; it's supposed to be £356. That's what I have in my spreadsheet, so all the totals use the correct figure of £356.
Great video James, you said that reinvesting £2880 each back into pensions after already taking tax free cash out of a pension is allowed. Is this an actual fact or is it just an assumption that it just doesn't seem to be very much. This pension recycling rule is vague to say the least, I think HMRC like it that way. My understanding is as long as it's not more than you were previously paying in you "should" be OK, is that your thinking. Many Thanks
There is a nice little flow chart here : adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/recycling-of-tax-free-cash/
Excellent question - one that I was about to ask myself. Some additional points: as I understand it, the pension recycling rules are not broken if some of the tax-free lump sum is passed to a spouse/partner to invest in their pension?
@@JamesShackthank you for the link, that is a helpful and concise interpretation of the rules. I do have a couple of further questions however: can the pension contributions also be backdated (as with normal contributions from earned income)? Secondly, I thought I had read that the time limit for pension recycling was two years after the tax-free lump sum was received. Is that correct? The following is also very important: "It is worth noting however that HMRC do not classify income from pension plans as relevant UK earnings, and therefore the individual will need to have relevant UK earnings from another source so they are eligible for tax relief on the re-invested payments.". Therefore, for anyone to make contributions above the £2,880 net (£3,600 gross) permitted without other earned income, there must be some form of additional "relevant UK earnings". I had been considering the possibility of making SIPP contributions from DB schemes or annuity income, potentially up to the £10k MPAA, which was triggered by drawdown during the gap years before other pensions kicked-in, if there is a surplus after I start receiving the state pension but it seems that this is not permitted.
So they made their situation complicated by using buy to let for many years then selling it all and having lots of cash in their 60s.
Ive always managed my own money because of the reluctance to pay annual fees to financial advisors but this video does highlight how much i don't know!
Interested to know what percentages financial advisors charge now days ? Last time i looked into it it was 1% which i thought to expensive over extended long period of time, say 20/30 years
That depends on what you're getting for that 1%.
Also, if you thought you were getting no value from working with a financial adviser, you would not keep working with them for 30 years. That would be madness. You'd stop after 2-3 years.
I frame the risk and reward of working with an adviser here: czcams.com/video/HjzoCCFkJm0/video.htmlsi=KIT1fglettVJdRuV&t=1354
Great video... however, this method works now... law changes all the time, so then what do you do? ...
Adapt. That's why it can be useful to have assets in multiple tax buckets. It helps protect against changes.
@@JamesShack adaptation works well when you are still able... but when you are old and unable... adaptability is no longer adaptable...
That looks like a great deal of faffing about - and the idea of a 60:40 investment is madness, given that both shares and bonds are pretty much going to crash soon (end of this year or the beginning of the next). It is far, far better to be international and keep your money either in tax-free gold coins (i.e. Britanias) or completely out of the country. These complicated tax-free schemes end in tears far too often!
Good video but surprised that you expect 2% dividend yield, seems a little low. A video about offshore bonds would be interesting.
The FTSE ALL World index is currently yielding about 1.5%, so unless you're skewing heavily to dividend stocks, you won't get much more than that.
Great video. Does the non-earning person contributing £2880 to their pension put in £2880 and the uplift to £3600 happens automatically, or do they have to contribute £3600 and then claim back the £720 tax via their tax return?
@Chat___JamesShacK Thanks James, I wasn't 100% sure who that number had popped up from. In the meantime I'd checked on Gov.uk, which said that the pension provider would claim th 20% back automatically.
Somewhere else suggested that it depends on the pension provider, so I'll contact them to check first.
Can you leave your investment in the offshore bond for 20 years then remove all of it tax free? Can you put crypto in this kind of thing?
No. The gain on the bond, if there is any, would be taxable.
Realistically, going forward, how much of this tax-free income will remain after the Labour landslide is in place?
I thought you were taxed at source with pensions? Have you got to claim it back via a tax return or do HMRC give you a tax rebate? 😊
Taxed at source. In practice, when you first draw money from a pension it’s often a nightmare because they put you on an emergency tax code, like when you join a new job. But once your tax code is sorted, it should work itself out so you pay no tax if below £12,570.
Although if say you needed to pay tax on bank interest, HMRC could tax that via your tax code so the amount you get from the pension, which is done via PAYE, is less.
Financial planners like this guy wouldn't like it, but the whole UK pension/tax system is far too complicated. The government should simply say any pension income, from whatever source is simply tax free up to a certain figure, say £35k year.
I do not like having to relearn the rules and amounts every year. I can tell you that.
There's also another potential £1000 tax-free for renting out their driveway whilst they're not there (or renting out the driveway to the lodger...)
As I understand it, you can't use rent a room allowance and the property allowance against the same property.
@@JamesShack My understanding was slightly different in that you can't use the £1,000 property allowance against the income related to the rent a room allowance, so you can't claim £1,000 property allowance *and* £7,500 rent a room allowance against a charge to your boarder of £8,500 for the *furnished room*, but you could claim £7,500 for the furnished room and the £1,000 separately for the driveway as the property allowance. Tried googling it to get some clarity but seems some accountants seem to think it's OK, others don't, and both sets say HMRC agree with them! ;-)
Very interesting. It goes to show that a person would need to be really 'into' this subject, to fully understand it. I have a civil service pension coming my way in 2030 and i will need to consider the best options. For example, i have a 6 year gap in my N.I. record, yet i have a large portfolio of global funds (in an ISA). My point is that if i paid my 6 year deficit, i would be paying into a system that i cant get my hands on until I'm aged 67 (in 11 years) and that pension would die with me (always a risk). The other issue is that my CS pension + state pension would place me into a higher income tax position. Clearly i have some studying to do.
Ha, I see that the scam bot was deleted before I could reply lol
No mention of gilts being CGT exempt…
@JamesShack-HostLine.1 should I give you my bank details now or later?
Hi James. I’ve been retired for a couple of years and benefit from a DB pension. My wife has no employer pension and not worked for several years so we have annually contributed the maximum, £2880, into a self funded pension for her. I have a number of shares I am looking to recycle above and beyond our max’d S&S / cash isa allowances.
My question is, can I sell down shares to start funding a personal pension for myself and get the tax relief on £2880 in the knowledge that I already have income from a DB pension but I am not recycling that income to fund an additional self funded pension?
As I understand it you can put £2880 into your SIPP - your income is from a DB (taxable) supplemented by share sales so I can't see you are breaking any rules re MPPC.
Pension recycling rules only relate to tax-free cash. Good article and flow chart on it here: adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/recycling-of-tax-free-cash/
I would be interested to find out how much the advice would cost to give me the most efficient return on my savings. Why dont advisors ever state how much % they charge for said advice or what fixed fees are applicable. This is what stops me from contacting an advisor. Their fee structure always seems unduly complicated and hidden. Please correct me if I am wrong or being unfair as I would welcome the advice.
It's on the front page of our website (at the bottom) novawm.com/
James, I think you should offer some form of financial advice for people in the early stages. I could really use some specific personal advice at this stage
How early on are we talking?
@@JamesShack I’m 31, got £100k in index funds in ISAs, I don’t pay any tax on income (seafarer). I plan to max out my ISA every year. Mortgage is done in 3 years. Ideally 45-50 range. I don’t have a pension as I’d want access to funds earlier. £20k annually should do it for me adjusted for inflation.
@@lewisscott22 “don’t have a pension.” Are you self employed ?
@@JamesShack correct. Self employed. Not don’t have, just would prefer to access my pension earlier
@@JamesShack hi James, sorry could I get that number notification again?
Be VERY wary of Offshore Bonds...huge fees ..dodgy companies in Malaga Bangkok Dubai etc....never contact anyone recommended in any comments!
Be wary of getting advice in Dubai or anywhere outside the UK; advisers in these countries are not held to the same high standards as those in the UK.
The offshore bond products international advisers offer can have very high fees and be hard to extricate yourself from.
In the UK, although the fees are often comparable with other types of investment accounts, offshore bonds are still a complicated product that should only be used in certain niche situations.
@@JamesShack Thanks James.
James, is there any way to access my SIPP before 57 (I’m currently 47, aware minimum age goes up in 2028). Any way at all to access it early?
You can access a SIPP early but will have to pay a tax rate (55%) that will make it fairly pointless. The only exception to this rule (AFAIK) is if you are diagnosed with a terminal illness and have a limited period of time to live - not an agreeable option!
@@davidbiran4572 thank you very much David. I’ve started adding to my S&S ISA to bridge the gap between stopping work early and drawing my SIPP. I think I’ve enough in it to retire now, just can’t get my hands on it sadly
Maybe the easier solution is to move to somewhere with lower tax or no tax, and full of sunshine. SE Asia, I guess.
Well Thailand is now off that list from this year.
I think I’ll need to come to speak to you in a couple of years james. Retirement creeping up on me.
The Starting rate for savings band is confusing.. I need to do more reading on this.
You get £5k allowance which is reduced for every pound you earn over 12,570 plus 1k basic rate saver allowance if basic rate tax payer
@@manni192There’s not a lot of knowledge on this in general, everyone seems to think they only have £1,000 headroom
Couples, again. What about us singles? 😊
I'm retired but not receiving state pension yet but have topped-up my missing one year voluntary NI. I already do everything listed here but not offshore bonds. What I do instead (with house sale proceeds) is have bonds within GIA which achieve close to the starter rate for savings rate and the additional £1k, but the big player in the GIA is a ladder of very low coupon UK Gilts. UK gilts are CGT free and the interest minimal.
You've missed premium bonds, which are useful as in the UK wins are tax free.
With £50k each you could expect to get around £4k per year (the winning pool is a bit over 4% of the funds).
True, it's not guaranteed... but with that much money, your odds are great, it's statistically very likely. We've attained this rate for the past ~2.5 years. There is also the minute chance of winning a million!
Fun. However with average luck you’re normally better off with a savings account unless a HRTP.
MSE always has great content on this. www.moneysavingexpert.com/savings/premium-bonds/
@@JamesShack Yes...I had £50k of PBs for a year and my return was just over 2%....I've started moving it into ISA / High interest savings now.
Ah! But, then deduct the IFA fees.....
Genius, you’re the dogs b****** james thank you for sharing, not there yet but will give you a call one day! 💪👍
Please do!
You said the money purchase allowance level is £2880 (£3600)
Hasn't it been increased to £8000(£10000) now?
£2880 is the max. amount you can pay into your pension and still get tax relief if you have no income. The £10k MPAA is the max you can pay in if you have an income but you've accessed the tax free cash.
@@stevegeek No 'earned income'
Usually enjoy your videos but this title is very misleading.
The problem I have with not taking all my 25% tax free lump sum from my pension is that 25% is likely to become 20%, then 15% then 10% as Labour performs another pension raid. I doubt the LTA derived limit for that is going to rise anytime soon!
Hi James, tax has to be paid on dividends each year, even if no shares are sold. Have I got that right?
Masterclass video though, possibly your best
Yes that is correct. Glad you enjoyed it!
I think your videos are great, and I'm struggling to understand why you need a video editor.
Save your money and carry on as you are, and with the money you save, seek a financial planner who can help tell you where to invest it 😂
Thanks! It's because these videos take so long to edit! No applications yet, so my decision may have been made for me!
@@JamesShack I wondered if that was the reason why.
In 30 years, I managed my portfolio, including 3 shares of Berkshire Hathaway Class A stock (BRK:A) bought at around $17,000 in the mid-90s. Liquidating some for new Gen. Stocks, I hesitantly invested in NVDA in 2021, alongside BTC and SOL, yielding over 200%. Market insights from YT 'gurus' are lacking, despite my 20 years of experience with Series 6 & 7. Professionals are crucial in investing; unseen market trends require trained eyes. I gained over 350% in semiconductor stocks under my estate planner (FA) through alternative investing, enjoying travel and liquidity perks.
this is inspiring . and your gains are impressive . who is this planner you speak of , and how I reach out?
I am glad i can be of help . like i said My CFA ’Monica Mary Strigle ’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I truly appreciate the share , I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
thanks for the recommendation, I set up a call. I am keen on getting to talk to her particularly. Ldy looks really great though even with the exams and other stuff.
This Monicamary Strigle lady looks great, how soon can I expect feedback. Left a message and arranged a call. Hopefully it gets across to her. Elegant lady.
I don't know where you pensions wizards get this 35 years of qualifying NI contributions to qualify for a full state pension. I had 37 years and was on track to receive £160 per week. I had to buy an additional 5 years of contributions to receive the full amount.
I think it’s bloody marvellous that this couple didn’t pay a penny on that amount of income. I earn just over £100k a year and I would not like to pay a penny in tax - any ideas? It’s just not fair that I have to pay!
Funny! Most people with pensions have already paid tax while they were working, so it's not unreasonable to look for ways to minimize paying more tax.
@@stevegeek that will be the case for the state pension but of course private pensions attract favourable tax reliefs at marginal rates and so I wouldn’t expect tax relief for payments in and tax relief for payments out plus NI savings for some payments in.
@@paulwright9749 A couple of points:
1. Without the tax relief on private pensions even less money would be set aside for the future, and we already have a pension crisis with many not having enough money to stop working.
2. If regular income tax was reduced or eliminated how would state pensions be paid?
Why is paying tax such a bad thing?
You’d have to save more or live off less.
You spend much of your life paying hefty tax to earn that money, it's not great to pay it again. They certainly can end up paying some tax on all amounts over that base figure (utilising all the legal tax avoiding limits as per the video), if they wanted even more money to live on.
But in general yes tax is good. Currently 20% goes to the NHS, 20% goes to people on benefits, and the rest (mostly single digits) goes to stuff like the military & government admin etc. Those are the Tories choices.
James I need to arrange a 1 to 1 meeting with you.
There's a link in the video description where you can find out more.
The word decimated actually comes from the Roman army punishment of a disgraced legion by executing 1 in 10 soldiers. So strictly, if the dividend allowance had been decimated it would have gone from £5,000 to £4,500 😂
Haha when I wrote that in the script I thought, “The sounds kinda right 1/10” but obviously wrong way around!
@@JamesShack unfortunately my Latin doesn't extend to what 9/10 is! If only the government really had stuck to just decimating the dividend allowance we'd all be better off! As always, informative video!