Thanks to various tax benefits available in the UK, charitable giving can be a financially savvy decision. Regardless of whether you have philanthropic leanings, just want to pay less tax or prevent yourself from losing your free childcare hours, charitable donations can benefit the donors and charities. Whether you’re a one-off or regular donor or even considering a significant gift, understanding these advantages can help you maximise the impact of your contributions while reducing your tax liability.  Here are 6 useful tips you need to know about charitable giving in the UK. 1. Gift Ai ..read more

Recently, several clients have mentioned trying to dissuade their children from following in their career footsteps. This prompted me to reflect on the pivotal choices we make as young adults. I asked several medical clients: if you had your time again, would you still be a doctor? Interestingly, they all without conferring, said they would be dentists instead. Well, almost all—one wanted to be a fighter pilot, but he’s always had that dream, so he doesn’t count! Let’s examine the two options from a financial perspective, doctor or dentist. We’ll leave the Top Gun aspirations for another day ..read more

The Magnificent Seven, the old western film evokes memories of seven Hollywood greats who saved the day for the downtrodden. But what does an old 60s movie have to do with the stock markets? Well, the film’s strapline was “They fought like 7 hundred’ and this is entirely appropriate when we consider the recently-dubbed-in-their-honour Magnificent 7 company stocks trading on the US stock market. Or if you’re down with the investment kids and know the lingo, The Mag 7. Who are these US behemoths? The Mag 7 comprises Microsoft, Apple, Nvidia, Alphabet (Google), Meta, Amazon and Tesla. Whilst not ..read more

With the recent focus on NHS pension scheme changes, doctors and dentists may still need to catch up on some vital updates to personal pensions. In the ever-evolving landscape of financial planning, a significant change is on the horizon that could reshape many individuals’ approaches to retirement. Starting from April 6th 2028, the ‘normal minimum pension age’ (NMPA) will increase from 55 to 57. Remember, you can normally access your pension by starting to take an income or a tax-free lump sum, or just one of these elements without the other, with most arrangements. This two-year delay in acc ..read more

After months of industrial action, consultants in England have accepted the latest government offer on pay. The new pay structure will reduce the number of pay points from eight to five and shorten the time it takes for a consultant to reach the top of the pay scale by five years. Consequently, consultants will now achieve their maximum basic salary after 14 years in the role. In this article, we will look at how this pay increase will affect annual allowance pension growth.  (Need a quick refresher on what the annual allowance is? Take a look at the end of this article). A gentle reminde ..read more

When the Chancellor announced that the Lifetime Allowance (LTA) was to be abolished on 5 April 20241, many medics were quick to celebrate the removal of a rule that had caused many a pensions headache, as we have outlined previously. However, the elimination of the Lifetime Allowance has caused far-reaching implications for retirees and their beneficiaries. Although touted as a measure to simplify pension rules, eradicating LTA carries downsides leaving other limits in place concerning the tax-free lump sum and the amount payable on death from your pensions. The removal of one allowance has g ..read more

When the Chancellor announced that the Lifetime Allowance (LTA) was to be abolished on 5 April 20241, many medics were quick to celebrate the removal of a rule that had caused many a pensions headache, as we have outlined previously. However, the elimination of the Lifetime Allowance has caused far-reaching implications for retirees and their beneficiaries. Although touted as a measure to simplify pension rules, eradicating LTA carries downsides leaving other limits in place concerning the tax-free lump sum and the amount payable on death from your pensions. The removal of one allowance has g ..read more

Are you a medical professional owed an overpaid tax rebate? Any doctor, dentist or medic affected by the McCloud Remedy may have potentially overpaid annual allowance and lifetime allowance charges. Over 1 million members of the NHS pension scheme will be affected by the Mcloud Remedy. It’s not often I praise the HMRC, but this is one of those rare occasions. The HMRC have launched a calculator to calculate incorrect tax charges if you were affected by the McCloud Remedy. Could you be affected by the McCloud Remedy? The McCloud Remedy will affect anyone with NHS pension scheme service on or b ..read more

Back in 2022, the Department of Health and Social Care proposed changes to the contribution levels for the NHS pension scheme. The second and final phase of these changes is due to go ahead on the 1st of April 2024. In the table below, you can check your new contribution position. Will your contribution levels remain the same, increase or even fall?   NHS pension scheme contribution table Pensionable Salary Range Contribution rates from 01 April, based on actual annual pensionable pay up to £13,259 5.2% £13,260 to £26,831 6.5% £26,832 to £32,691 8.3% £32,692 to £49,078 ..read more

It was not an exciting, surprise-packed budget. However, the budget did bring some good news for many while leaving other areas unmentioned. My top seven ‘headlines’ from this year’s budget are: 1. National Insurance Contributions Class 1 employee national insurance contributions (NICs) are to be cut from 10% to 8% from 6 April 2024. There is a corresponding cut from 8% to 6% in class 4 NICs for the self-employed. If you are employed and earn between £75,000- £100,000 you will be £75 p.a. better off after this change. If you want to check your own position, why not try The Money Saving Expert ..read more