Happy new tax year! Lockdown has almost finished and freedom is finally on the horizon, as the beer gardens and shops are now open. As we have moved into another new tax year, you could feel the tension rising in the financial world, as people scrambled to get their end of year accounts ready. However, Cathi and Jo are here to calm things down and to shed some light on the new tax year in this month’s episode.
The episode starts off with Cathi and Jo questioning why the 6th April (the start of the new tax year) isn’t celebrated with the same enthusiasm as New Year’s Eve? Jo suggested people should be making their own financial resolutions and writing down personal goals that they want achieve during this new tax year. When you think about it, it’s a brilliant idea for two reasons – one you’re preparing yourself financially for the year ahead, and two, it’s another time to party and drink wine – isn’t that right ladies? The more I listen to this episode, the more I start to think about my personal finances for this new tax year and I think planning out the financial year could really be beneficial for many people – especially with that brand spanking new ISA allowance.
A little further into the episode, Cathi and Jo break down what happens during the tax year. They talk about how tax allowances work and how to calculate your own personal tax. Jo tells us a great story in regards to payslips and let’s say it made me think twice about how I look at my own payslip each month. Cathi later on explains her own cheeky top tip when it comes to checking how much tax you have contributed for the year – listen out for that one! Yes, my eyebrows raised as well because you never know, you could be in for a treat.
The most helpful part of the episode for me was when Cathi and Jo discussed capital gains tax, ISAs and PAYE in different scenarios to help people really understand each one and how they are calculated. They also highlighted the importance of financial self-assessments for self-employed people and declaring what you earn, because no one wants to be in trouble with the tax man since “they will fine you!” Isn’t that right Jo? The ladies ended with a great game which you can all take part in – let’s hope your geography general knowledge is better than Jo’s!
That’s it from me this month, I’m off to enjoy the bank holiday with an ice-cold beverage in a beer garden somewhere. If you have any questions about how to plan for the tax year you can ask us via our socials, just comment on our Instagram or tweet us @thatmintpodcast. Don’t forget to rate, review and subscribe on your podcast channel of choice, and don’t forget share with a friend who might be interested in planning for the next tax year!
Finally, our limited offer of ‘Get 50% off membership for 3 months’ for Audible expires on the 3rd May 2021, so click the link quickly! – Thatmintpodacast.co.uk/audible
That Mint Meanings!
ISA Allowance: It’s a set amount you can put into ISAs (Individual Savings Accounts) each tax year, without paying tax on any money your ISAs make.
Capital Gains Tax: Is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive.