ARE YOU MAKING THE MOST OF YOUR PERSONAL TAX AND SAVINGS ALLOWANCES??

5 April 2018 is fast approaching; this is the last day you can claim your tax-free allowances in the 2017/18 tax year. Here is a summary of the main ones:

Personal Allowance – £11,500 – the amount you can earn before you pay income tax (not including additional rate taxpayers).

Marriage Allowance – if earnings are below £11,500, you can transfer 10% of your personal allowance to your partner, saving them tax of £230. You can also claim for earlier years.

ISA Allowance – no tax to pay at any time – £20,000. The Junior ISA (any child under 18) is £4,128.

Lifetime ISA – part of the annual ISA allowance and designed to help and encourage young adults to save for their first home , 18-40 year olds can invest up to £4,000 per year (until they are 50) and the government will add a 25% bonus (maximum £1,000 per year).

Help to Buy ISA – Another home-buying incentive, the government will top up your savings by 25% (up to £3,000) when you purchase a property.

Personal Savings Allowance – savers can earn interest tax-free up to £1,000 (£500 for higher rate taxpayers)

Dividend Allowance – £5,000 but set to reduce to £2,000 from April 2018.

Personal Pensions – £40,000 can be invested tax-free (unused allowance can be carried forward for up to 3 years).