ACCOUNTANT EXPLAINS: How to Pay Less Tax
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- Опубліковано 12 тра 2024
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This is part 1 of a series which I may or may not continue with depending on what your thoughts are! Everything I say is legal with many people already utilising this. I hope you enjoy it Xx
⌚️Timestamps:
00:00 - Introduction
00:25 - Disclaimer
00:45 - How is Income Tax Calculated
02:30 - Pension Contribution
04:20 - Company Structure
06:06 - Non-Taxable Income Stream
08:05 - Final thoughts
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DISCLAIMERS & DISCLOSURES
This content is for education and entertainment purposes only. Nischa does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Nischa is a participant in the Amazon Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Thank you for your support!
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Darn, country not supported(USA). What do you think of Stash?
Show us your stocksportfolio Nischa in an upcoming vid. Already a long time Trading212 user.
Would be good to get a video to help increase confidence in investing...what approaches etc...
Thank you Nischa for a very helpful video. Can you please also make a video about how you set up a Company to add UA-cam earnings? Which category your company has been registered?
Thanks nischa
I think apart of what has been making your channel grow so rapidly lately is not only because of your wonderful content but also I’ve noticed that UA-cam is lacking of European/ UK financial creators that know what they are talking about and make their content engaging at the same time. I am grateful because usually when searching on here it’s a lot of US based content which isn’t very helpful a lot of the time (personally)
Spot on couldn't have said it better!!
Correct, we need more switched on UK voices.
agreee!!!!
Spot on!!!
@@itspatriciajuane yes 100%
Excellent video. Just a small point to clarify for anyone in the UK, you don't need to be a legal "Company" (e.g. Limited) to deduct business expenses before paying tax, you can absolutely do this as a "Sole Trader."
Thank you Nick for clarifying, I was just wondering exactly that.
Sole traders are liable for 40 and 45% tax rate. Employees of ltd aka director can set up 1257L and dividends, bringing down rates to anything from 8 to 39.35%
@@unboxing4319do you have to pay 25% corporation tax before paying dividends?
But it FAR more limited
@@rlc2978 pun intended?
You speak so eloquently and have quickly become a finance role model. I'm looking forward to learning more! THANKS!
Please make a dedicated video for self-employed tax payment! Thank you 💕
Putting aside the whole content aspect of this video, your delivery of content is absolutely to perfection. Clear, straightforward and precise. The professionalism, politeness and with clear vocals, without any emotional bias towards your content is incredible. I believe these factors is what keeps viewers engaged in your videos through till the end. Keep up this method and your channel will grow rapidly for sure.
I’m hooked. Advice as to what you do when your ‘side hustle’ Ltd company business account starts accumulating money and it’s just sat there and growing when you’ve taken your tax free dividend. .
Totally agree very easy to follow but need more advice on how to save tax and investments like stocks I find are just abousivei invested in couple of companies and they sold there shares and I lost money in all of them and I was forced to sell
This is so kind, thank you!
Totally Agree, there should be a Television or Film contract for someone as talented as yourself.
You’re Subs growth is super impressive.
I think what people like is your honesty, transparency and helpful content.
Too many on YT are trying too hard.
You are truly professional and very kind, intelligent, honest and I enjoy all your videos. The knowledge that you share with public is very concise, we need more videos from British Professionals, educating us lot on many aspects. Taxation code and method must be applied in a way that should benefit the working class, so thank you Nisha for sharing this information with us. Wish you all the best in your career and personal life.
Great informative video! Would love a Video on UK pension relief - and a breakdown of how the 20% / 40% / 45% income tax brackets impact tax relief please
I love your channel Nischa! So succint, relevant, and easy to understand. I've only been watching for a couple of weeks but I am really inspired! Forgive me if you have already covered these, but I would love to see videos on the following:
- What to prioritise with respect to savings, investments, etc, when starting at an older age (e.g., 40+), would the priority list be different to when someone is, say, 25-30? Is there anything that should be avoided or prioritised?
- Investing pre-IPO (e.g., crowdfunding for start-ups) vs buying shares in public entities.
Thanks in advance and keep up the good work!
Hi Nischa! Thank you for this video, it has been very helpful. I would love to see a video on 1) how to set up your company structure to save on tax & what is the best way to pay yourself through that structure 2) how to find a financial advisor, what to look out for and what the typical costs are. Again, love your video's. 😇
@@The_MoneyGuru pretty sure there are more tax benefits to setting up a limited company if done correctly though so do your research before making a decision - the money guru you sound like you work for hmrc rather than giving out good advice 😂
@@The_MoneyGuru Im sure you know 😂
Probably the best 8 min 41 secs I've spent on UA-cam. Thank you! 🙏
Yo! Came across this video on my lunch break. What a blessing! Thanks for the knowledge, much appreciated! 🙌
Thank you for such informative, clear and accessible content Nisha! Id love to hear more about tax efficient ways of buying energy efficient cars. Thank you
The quality of your content is amazing, thank you for this useful information! ❤ Could you dive deeper into taxes for small business owners: what can generally be written off as expenses, what to look out for in a tax advisor, when to start looking for an accountant (at what stage of the business) and maybe the average charge rate of tax advisors and long term accountants. Keep up the good work, Nischa ✨
Great video Nischa - no messing around, straight to the point & you come across well. Thanks
I wanted to watch the full video before commenting and I am seriously blown away. I recently paid for a course to learn this and this single video is so much better than that entire course! Nischa, very well done and thank you so much.
so so glad to read this, thank you
Totally agree and she is giving good advice to helping others. We should all have learned this lesson from schools
you paid for a course to learn basic tax information you can find on google? huh?
@@nischa Is an umbrella corporation a good thing to use as a consultant ? I am doing a CFA 1 test trying to get into Finance in the UK, would it help me get my foot into the back office ? Thanks.
Excellent video so much information explained clearly, many thanks. In the future I'm going to be selling a property that I currently let out which did cover the mortgage sadly it doesn't and I had to extend the term which wasn't ideal. Any videos on capital gains tax would be greatly appreciated. Many thanks
Great overview of the basics, looking forward to part 2!
Thank you for sharing your knowledge- it's invaluable! As a single mum, I've always been afraid to invest but didn't know where to start mainly because of the financial jargon. Thank you for making the information not sound like a complete mystery- it's so freeing to finally know there are ways to keep more of my hard earned money!
Amazing video for beginners out there! Best finance-related content on UA-cam, all the youngins are watching you and are inspired😊
Just came across your channel and had to subscribe. Great content and presented in a very user friendly, easy to understand way. Thanks Nischa for the time, effort and sharing your knowledge.
Good video! Looking forward to part 2. Also your views on thr property market given the higher rates will be really appreciated
Hi Nischa, I have recently come across your channel and I just want to say what great job you are doing. I love your style and your way of explaining financial concepts which is so easy to understand. And it's great that you are also in the U.K, as I am, as your information feels much more relevant. So glad I found your channel and thank you for the invaluable financial education :)
Thank you so much Anabella
great video. short, impactful, and straight to the point. Keep up the good work
Really excellent content. I look forward to seeing more of your videos about the various things you mentioned at the end. All of it, lol.. Really well done, nicely spoken, thoroughly presented, super informative. Thank you for sharing this information! You've definitely earned my subscription! I'm sure this channel will hit the million subs club very quickly!
Hi Nischa,
Can you make a video around setting up a company and the benefits and drawbacks of each company structure (LTD, LLP, ect)
Yes I agree, I am currently self employed and I seem to remember another option was LTD company but as I don't earn very much as its part time work I chose self employed. Is that what you meant when you referred to 'individual' and 'company' in this video? I am in the UK
Videos about offshore accounts and energy efficient cars will be great!! Loving the content so far, especially the fact that you're UK based.
More of this please. Much needed information especially in this day and age. Thank you
This explanation is way more easier to understand than the ones i've had with my accountant for 14 years. (Love the new graphics btw).
Nischa, you've done it again. This is dope. You lil life saver. Make this a series 👌🏾🙌🏾
Your way of explaining finance is easy to follow .
Stumbled across your work other day , took ten percent of my wage and also wife’s with the theory - pay yourself 10% into savings .
Have always thought about starting a website - food related but think I will set it up as a company , incase of sponsors .
Thanks so much
First time watcher and have to say really great and informative video.
Currently stuck on a few tax/investment issues and this gave some food for thought!
This is amazing. I love your practical advice and the fact that you are showing people in Europe/ the UK what they can do. Please cover more Tax content and I would LOVE to see videos on offshore accounts and how to set up a company online as you mentioned in the video. Thank you for all your videos!
More of your amazing wisdom in tax please! 🤩 especially legal and ethical offshore accounts X
Watching your amazing videos has become a weekend habit for me!
I’d love to learn more about what I can use my pension towards.
I have been binge watching your videos for about an hour now. I’m going to try some of these and see how it goes.
Thanks for a great video, Nischa! Can you please make a video about the tax benefits of setting up a trust and what kind of income/assets you can add in the trust? Also more content around properties would be a plus! Thank you :)
Hi Nischa, recent subscriber and am starting a habit of watching your videos once per week. Your videos are always top notch and feels amazing to keep learning more ways to financial freedom :)
Nischa, a huge thank you for such informative content. Stuck in a Section 24 nightmare. Good to hear some options. Thank you again for taking the time. Vanessa ❤❤
Thank you for your clear explanations, tips and knowledge. You make things so much clearer for me to understand.
Yes...please make a video about how everyday working people can set up off shore accounts.
You’re the hero we all need in this world. ❤️
Please talk about property tax and offshore accounts when you get the chance. 👏🏾
Think she needs to get Nadhim Zahawi as a guest speaker for that video. 🤔
I agree! Would love to learn about offshore accounts
I’d love to learn about offshore accounts too!
I originally started watching your videos cause i was interested in the content of your work, but honestly, more so in the attractiveness of your accent and the more obvious physical attraction... great smile!!! Anyway, I've seen about 5 videos now, back to back, and aside from the accent that makes me want to hear you talk all day and watch you smile in between every sentence i got to say you make absolute sense and are so helpful with the information you share i have learned a multitude of things on just the 5 videos ive watched thus far. Honestly ive shared 3 of the five videos and im binge watching every video i can from your channel. Cheers!
Thanks Nischa. The first video of yours that I’ve watched was about the 9 habits keeping me poor and one advise you gave was to save 10% of my monthly salary as soon as I get my pay check. It made great sense. That way I have money saved right away before all expenses are deducted. I’ve started doing that. Thanks.
I know nothing about finance but happy to learn that I am already doing a few good things like salary sacrifice (although i just got laid off last week) & filling my ISA/LISA. This is really great content, super happy to have found your channel!
Nischa! That was so helpful! In California our taxes are so dang high, I’m looking to find avenues to keep more money in my pocket🤭
Would you be able to break down what you can wright off for small businesses? Even perhaps you tube side business?
Hi Nischa, this is super useful! Please continue to share more information on the topic of taxes! Thank you 💜💜💜
As a UK Ltd company director is it still a good idea to take money out of the business account and put it into savings account? I want to build up an emergency savings fund but I realise that as soon as I take it out of the business account it attracts 8.5% dividend tax.
6:30 I think you should clarify that for S&S ISA accounts you can pull out your money at anytime and any profits are tax free also, not just when you retire incase people are confused versus a pension
^correct, thanks for adding it here
This was so informative, thank you! I'd love to learn more strategies and information about offshore accounts. You make accounting so much fun, much love!
Hey Nischa.. please do dive into the other ways you briefly mentioned at the end of the video that can help save money on taxes. Can’t wait. Congratulations on the 200k plus subs. You’re the first finance channel that I’m legit following and watching. ✌🏼
Great videos and nice to see advice coming from the UK. You make the dry content really easy to follow and interesting. I hope it continues and good luck with your career.
Nischa I’ve been so inspired and motivated by your content. I discovered your channel in the last month and there’s already been a marked improvement with my finances/attitude towards my spending/earning already. You’re a fantastic teacher. Keep up the great work! Xx
I agree
Yes totally agree 😃Nischa is fantastic! So happy we’ve found her x
So happy to read this, thank you Lauren! Xx
Would definitely love to see a video on savings for energy efficient cars please. Such a comprehensive & approachable introduction to tax- thank you!
This was amazing and 100% convinced me to get a financial advisor, so glad you made this video many many thanks!
Thank you for taking the time to make this video . Really Helpful
crazy world " Because you have a passion for finance & accouting, we get free advice"
I am an Accountant myself and still I learn few things new from this video. Good video.
Amazing video Nischa, would love to know about your career journey 😊
I’m so pleased UA-cam put you in my algorithm. I look forward after this to watching your other videos. I have a property I rent out, am part time employed and self employed with my own business, so am really keen to look at taxes whilst I grow. Thanks so much 🙂
I subbed 7 minutes into the video. Great content, Nischa! I'm looking forward to all the content you mentioned in this episode's 'Final Thoughts' chapter.
great overview. Taxes in this country are getting bad, thinking of moving to the isle of man, could you do a video on that? How to set up the new company, how long you have to stay there to get the tax benefit etc.
Which country?
@@FaizanShaikh-pp1kg I'd confidently assume he is referring to the UK 🇬🇧
isle man dead, but yh moving if healthy good
Why do Americans always think they can just move to another country? You can’t! You need a visa (thru spouse or high end investments). Emigration is a long and hard process.
@@Rapha187 Well... he's not American. The Isle of Man and the UK have good reciprocal agreements regarding living, visiting and working in the respective jurisdictions. It's much easier than moving from the UK to elsewhere, so I don't see the issue.
A video on setting up an offshore (tax free) account would be very useful and very interesting, Nischa.
This was so helpful as i was literally trying to avoid a payrise for the reason mentioned😅 cnt wait for part 2 ❤
@@The_MoneyGuru 🙌🏽☺️
You are so very good at this. I am a Thai who is loving and living in the UK. I have just understood the UK tax ladder from your video. You have a new fan now. I hope I watch more of your useful videos xx
Off shore account video please :)
Yes please, a vid on the offshore options would be great! I would love to understand the processes
Thank you for sharing your thoughtful content…for
putting it out there with the passion that many of us need and strive for. I'm starting to listen to you
almost every morning. Your voice and words are
calming, clarifying, uplifting and motivating. It feels real and genuine. I am grateful to have your channel as a source for having a better relationship with myself and the world around me
Would love to hear about setting up offshore accounts/ companies in tax havens. And ways they can be used to minimise earned income in the UK and Canada. Cheers! 🙂🙂
No frickin way! Nischa, are you really at 225k subs already? HUGE Congrats 🥳 ; it’s well deserved.
Okay, lemme dive into this video now. Thank you for all the great info you share. I always learn something from your videos, it’s not always the same regurgitated stuff everyone talks about. Even if it’s not something new, you always manage to put your own spin to it. I appreciate you❤️
I appreciate you and comments like this!!
Thanks for this, it's so good to see a video on taxes taking into account the UK tax system, so many on YT are targeted at the US.
Your channel is flying :) everyone keeps telling me about you, amazing work Nischa
I’m pretty familiar with the whole ltd and expenses method, but 100% of my income is through PAYE. I earn just shy of 6 figures as a data engineer but I get taxed like a donkey, what are my options if my income is taxed before it even reaches my bank account? Will visiting a tax accountant be of any use? Thanks!
Having worked for a UK pension provider it is scary how many people don't know some of the basic things to do to better themselves. I am no expert and would love to know more. The offshore accounts, property tax and energy efficient car savings would be great to know more about.
Looking forward to the next videos on setting up offshore accounts, property tax and stamp duty…all 3 much needed
Great video again :) It was a great summary as always
Would be interested to hear the remaining tax-deductions you presented at the end of the video. I am also interested in understanding property investment /property purchases via LTD vs a full-time employee buying it under our respective names please if possible
Hi Nischa, thank you so much for another great video. Do you think you could make a video is Ltd company vs self employment (tax implication, other differences, pros and cons for certain scenarios?) I would like to understand the benefits and implications on each in more detail for someone who wants to start their side business.
Thank you!!!
Just found your channel. As a Uk expat in the US, I realized when I came out here how financially illiterate we are in the Uk, we tend to give up our autonomy and expect our companies, HMRC and the Govt to make decisions for us, whereas here in the us, you are on your own. It is nice to hear a Brit UA-camr offering education, so thank you.
Thank you so much for this video! Extremely important and useful. Weldone 👏
This was much needed thank you, watched your videos on TV and I've been looking for your channel name ever since, silly me 😍
I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green. I'm 47, and earn nothing less $150k per year, but nothing to show for it yet
Off shore accounts video please!
Yes please here too.
Great video! Please do a video on how to setup an offshore account and the benefits. Also, a video on property tax and how to maximise profits from a limited company for property would be great. Thanks!
Excellent video! A couple of things: (1) in the US, in addition to 401K plans, there are also Health Savings Accounts (HSAs) - also great for squirreling away for future for funding healthcare expenses - and who does not have them with aging? :), (2) We are probably really underutilizing our ROTH IRA accounts .... will look into this more (Peter Thiel is a master of doing this, literally putting in billions!), and (3) yeah, I should incorporate my side hustle at some point ....
Nischa, can you please make a video showing how to set up a company in the UK? I am clueless as to where to start - I want to start my own tutoring/consultancy business as a side hustle apart from being a teacher. You are honestly a God sent
Niiiiissschaaaa! Thank you so much for this! I'm about to quit my job and "fly solo" professionally and tax-wise, so I need to learn as much as I can about registering as sole trader or maybe setting up a company. Doing it in the Uk or maybe somewhere abroad where the tax rate is lower (Bulgaria 10%). I've contacted a few people on Fiverr, but their advice was incredibly basic and not very helpful. Could you go more in depth with this topic or maybe recommend someone? 🙏🙏
Looking forward to the next in this Tax series. Please label clearly as episode 2 in the sequence. Thanks for the great series!
Great content. These videos are so easy to understand!
Reducing your tax liability is a smart financial move. It's all about strategic investments and leveraging tax-saving opportunities. I've seen significant benefits by diversifying my portfolio and taking advantage of tax-efficient investment vehicles. It's not about avoiding taxes, but rather optimizing them to maximize your wealth. I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made
I invest across the top markets but not by myself though. i follow the guidelines of Regina Louise Collaro . you might have heard of her.. I can correctly say she's worth her salt as an investment adviser as her diversification skills are top notch, I say this because i see that in her results as my portfolio grows by averages of 5 to 1O% on a monthly basis, unlike i can say for my other inve stm ents which has just been trudging along. my portfolio just mirrors what she place and not just on some particular industries of my choosing. I was able to retire early and gain financial freedom through her help.
Regina Louise Collaro is based in the United States and can work with anybody wherever they stay. If you would like more information on reaching her, you can conduct a search online.
personally, I'm blessed and realizing I'm not the only one working with Regina Louise Collaro. I will consider myself lucky. I've been able to feed and make a living through her advice and great work. For such a person as Regina, I owe her gratitude, support and endless prayers as it is not easy to gain access to such a competent and reliable adviser. Who isn't just wise but has all it takes to handle an investment and is good at what she does.
@@ugojazzy7812I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot .
This was of so much help to me.
I'd love to hear about offshore accounts. The tax hikes coming in the UK are ridiculous and unfair.
I was eagerly waiting for your next video. and here it is... an amazing one that is useful a lot of people like me. Thank you again.
Thank you Cian!
@@nischa I appreciate your effort & time to go through the comments & replying. Thank you again. 🤗
Beautiful descriptions and easy to follow examples! Thank you for this :D
Another thing that you can do for reduce taxes as an expense is if you are the house owner from the currently house that you are running your business. You as a company should pay a rent and also, as an owner you need to create other management business. But remember : The Ranger Rover cannot be declared as a business vehicle ; )
Wow, i am so glad to stumble upon your videos. Looking forward to your future videos. Can you also cover tax implications for having property/assets in countries where you are not a resident but have investments or inheritance.
Well explained!! Great video 👊🙌 big on that investing section 😏
Nischa, great explanation on taxes. Here's my issue- I live in NY, USA and my wife and I contribute to a tax deductible 401K retirement account. We deduct property/school tax (max 10K allowed), deduct mortgage interest and deduct charity contributions. The Standard deduction is 25K for married couples filing jointly. So, we lower the taxable income by 35K (retirement contributions) & the federal tax bracket stays the same and the 35K pension contribution hardly made a beneficial difference. Plus, the standard deduction is 25K so we can't deduct the property taxes or mortgage interest. Charity contributions and my 2 children barely make a credit or deduction difference. Taxes are insane!
Dang i spent my Saturday night doing my hmrc tax return yesterday, no jokes! :P but i'm glad your video is sort of a confirmation for my that i'm on the right path. For the moment i haven't setup a company yet, as i have a mix of employee and self-employed situation at the moment, and 20-21 was fine that way for me. But definitely i am keeping an eye now as i opened a Vanguard account and started a bit of trading on Revolut last year so 21-22 and definitely 22-23 could be a changer. So yeah, well done Nischa, you got yourself a new subscriber here ;)
I’ve just come across your channel. Absolutely love it, just the advice I need x
Hi Nisha that was a really interesting video,. Like your friend I had no idea about the tax brackets that you pay parts of your salary in, so thanks for such a easy to understand introduction to a subject I've always been intimidated by.
We need the other video ideas you mentioned at the end asap please and thank you, love the vids!!!
Hi Nischa, thank you for yet another fantastic video. Full of useful information as always. 😊 Can you make a video on how to set up an offshore company please. PS: it’s nice to see you’ve got a sponsor. One that (from your words) aligns with your values. 😊