ISA and tax band for PAYEs
Options
John123003992
Posts: 3 Newbie
Hello, I am an employee and some of my salary falls into the higher tax band. If I put some of my money into an ISA would this amount go towards reducing my tax band or not? Bear in mind that I do not pay taxes directly but my employer does it for me directly. If that is the case can you direct me to a website where this is explained. Thank you.
0
Comments
-
Not an ISA, a pension would, eg a SIPP. This explains it quite well: http://www.hl.co.uk/pensions/sipp/tax-benefits-of-a-sipp0
-
-
John123003992 wrote: »thank you! so apart from the pension option there is no other way?
The only other way is to give to charity and gift aid it.
Think about it - if your plan was feasible we could all get out wages paid into an ISA, pay no tax and then withdraw it. Don't think HMRC would go for that one!0 -
There are various other ways. Gift aid to your favourite charity, or you can get tax relief through using gift aid to pay for entrance to various places like zoos, national space centre, historical buildings, National Trust/English Heritage membership.
On the investment side I think VCTs give tax relief but not sure how that works.0 -
There are various other ways. Gift aid to your favourite charity, or you can get tax relief through using gift aid to pay for entrance to various places like zoos, national space centre, historical buildings, National Trust/English Heritage membership.
On the investment side I think VCTs give tax relief but not sure how that works.
thank you again both. I wonder if I can ask this question on this post or need to open a new thread but I will try:
Let's say I use the SIPP option and if on top of my salary which fell in the higher band, I also have dividends from my business, will this be taxed at the higher band? Let's assume 10K in dividends at the end of the year for this example.0 -
John123003992 wrote: »Let's say I use the SIPP option and if on top of my salary which fell in the higher band, I also have dividends from my business, will this be taxed at the higher band? Let's assume 10K in dividends at the end of the year for this example.
there are loads of sources explaining that answer, here is one of them
https://www.gov.uk/income-tax-rates/current-rates-and-allowances0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards