Job stuff and taxation things.

[weeksy]

So to be a higher rate taxpayer you need to have (taxable) earnings over £50,270 in a tax year, I.e. 6 April to 5 April. If you've earned over that already then hat's off to you and any more work will be taxed at 40%. If not, you will be paying tax at 40% once you have full tax year taxable earnings of over £50,270.

Note that NI is different - that is actually calculated on a pay packet basis.

Well i've not yet, but by the time i get canned from here i certainly will have.

Hence my question and the associated answers. Which is good as it means i've got until at least April off

Maybe forever, maybe not.....

[Count Steer]

A thorough, but clear, look at what the 2027 ISA changes are.

Tax on interest paid on cash held in S&S ISAs - designed to stop people using the S&S as an extension of a cash ISA. Otherwise all tax free as usual (apart from the tax you probably paid on earning the money that you put in there).


https://www.fidelity.co.uk/markets-insi ... 7-kSWOhVL8

[Dodgy69]

I didn’t know you could keep cash in a s&s isa. I'd imagine most folk who have opened these shouldn't be affected too much.

[Count Steer]

I didn’t know you could keep cash in a s&s isa. I'd imagine most folk who have opened these shouldn't be affected too much.

Yes, basically, you stick up to £20k in there and use it as an investment pot, buying/selling shares and funds so cash goes in and out of the cash account part of it. Same as a normal trading account - mine didn't used to pay interest on the cash account until recently and it's not a high % anyway.

(I think there may have been some constraints regarding interest payment - I know that BG looked at paying interest if your energy account was in surplus but canned the idea when they found that it meant they they would have to comply with banking legislation ie become a bank. Shame - it would be nice if utilities were actually forced to pay interest on your cash at the going rate).

As for how much tax people will pay, it'll be peanuts - if people took the mickey and stuck £20k in, didn't buy any shares etc and got eg 2% they'd pay £88 tax for the year*.

* Most trading accounts will cost more than that in fees. My maths may need checking.