I’ve just completed my tax return – pretty good for me – I have managed to complete and send it off a whole month earlier than last year!
I have managed to stay under the taxable dividend threshold for the year, by a few pounds but will have tax to pay on my savings which are over the threshold.
I am now looking at moving my savings into tax-free accounts to stay below the thresholds. With savings rates dropping they are not keeping pace with inflation so need to move them to somewhere that will! More payments into my SIPP I think, although I then cannot access the cash until I reach 55.
I intend to fully utilise my ISA allowance this year now its up to £20k, I phase the money in monthly so doing well and on track.
While I am working – another reason to keep going at the moment – is that I can contribute more into my pension/SIPP, I can contribute up to £40k which gives me space and capacity to move savings/taxable shares into a pension account while I can.
I am trying to hold out in a job until my BTL fixed rate mortgage term lapses so I can re-mortgage – something that’s easier to do while I have a salaried job. I am slowly reducing the mortgage to compensate for the new tax rules which will phase in over the next few years. It will be interesting to see how they have affected my tax treatment this year. I await my final statement.