6 April 2021 marks the new 2021 tax year and hopefully you will by now have recovered from your Tax New Year’s Eve celebrations!
There has not been huge cause to celebrate this year, although there are some changes to tax allowances you should be aware of.
From 6 April 2021 …
You can earn another £70 without paying tax. That gives you an extra £14 a year. Wow!
You can earn an extra £200 without paying higher rate tax. That’s worth another £40 a year. Outstanding!
Many Directors pay themselves £732 per month, which is the maximum possible amount at which the Tax and National Insurance bill is zero.
This increases to £737 per month from today, another £60 a year. Fabulous!
(by the way at this salary, you qualify for the benefits of National Insurance, even though you don’t physically pay anything, another free gift from HMRC).
So we are all a lot richer now.
Do you feel wealthier?
How will you spend all this extra money?
Here’s how an accountant celebrates this windfall with champagne:
A man of many talents