It’s a New Tax Year. So, What’s New Is that…
If your non-investment income is < £10,600, the first £5,000 of savings income is taxed at 0%!
If you earn > £15,600 from a job, from self-employment, of pension or rental income, this may be of little relevance to you.
If, however, you are a company owner and draw a low wage to keep out of national insurance, this could be very good news indeed.
Now, there probably aren’t that many business owners with £5,000 savings income. A lot will invest their savings into the company. If this is you, then why not consider the company paying interest on any sums on director’s loan account? The company can get a corporation tax relief, and with proper planning this can be a one-sided tax transaction with no personal income tax payable in your hands.