The UK paid a whopping £788.8 billion in taxes in 2022 to 2023, an increase of 10.2 per cent from the year before.

As well as income tax, that figure also includes inheritance tax, dividend tax and capital gains tax.

No-one wants to pay more tax than necessary. But with busy lives and hectic schedules, there are rarely enough hours in the day to navigate the complexities of the UK tax system.

Ensuring assets are structured in a tax-efficient manner is the best way to avoid paying more than the fair share of tax.

Some potential moves to consider include:

ISA allowances

There’s no UK income tax or capital gains tax on investments inside an ISA so they’re one of the most tax-efficient ways to save. Options include Cash ISA, Stocks and Shares ISA and Innovative Finance ISA.

Adults living in the UK can invest up to £20,000 in ISAs in the 2023/24 tax year. Those with children can invest up to £9,000 on their behalf in a Junior ISA (JISA) which has the same tax benefits as an adult ISA.

Consider putting more into a pension

Adding money to a pension is one of the most tax-efficient ways to bolster long-term financial security and can also reduce the amount of income tax paid.

This is because personal pension contributions lower ‘adjusted net income’ which HMRC uses to work out tax bills.

Don’t forget, that the money will be locked away in a pension until the age of 55, or 57 from April 2028.

Divide assets

A higher-rate taxpayer may be well-advised to transfer taxable savings and investments into their spouse’s name if they earn less.

Tax allowances effectively double for those who are married or in a civil partnership. If both open an ISA, that is a potential combined £40,000 protected from income tax and capital gains tax each year.

Speak to an expert

Remember that tax laws can change and what works best for each individual situation may vary.

Regularly reviewing your financial situation with a tax professional can ensure tax savings are tailored to specific circumstances.

Get in touch to find out how we can help.

Businesses need to be prepared for changes to the way Companies House operates when the Economic Crime and Corporate Transparency Bill comes into force.

As part of the package of reform, all small companies, including micro-entities, will be required to file their profit and loss accounts.

The Government expects the changes to “improve transparency” and help tackle economic crime by making more financial information available to the public and enforcement agencies.

‘Change not expected to be overly burdensome’

A Government spokesman said: “Having key information such as turnover and profit or loss available on the public register will help creditors and consumers make better-informed decisions.

“It will also improve the value of the information on the register for users.

“The lack of detail in small and micro-accounts has made it impossible to confirm eligibility to file under a specific regime and claim audit exemptions.

“It has also made it difficult for lenders and creditors to determine the creditworthiness of small businesses. This can deter them from offering finance which hinders small business growth.

“As small and micro-entity companies are already required to file a copy of their annual accounts to HMRC, we do not anticipate this change to be overly burdensome.”

Other accounts-related changes

Other changes to filing accounts will include the removal of a paper-filing option for most companies and the requirement for a company relying on an audit exemption to provide an additional statement by the directors on the balance sheet and limiting the number of times a company can shorten its annual reporting period.

The detail and format of the profit and loss account filings will be set out in secondary legislation. This is currently being developed in consultation with business and accountancy groups.

Companies House is expected to charge higher fees when it is granted new powers.

The Economic Crime and Corporate Transparency (ECCT) Bill is already making its way through Parliament.

This legislation will change the role and purpose of Companies House to make it a more active gatekeeper over company creation. This would include new powers to check, remove or decline information submitted to, or already on, the register.

Other measures include:

• Providing Companies House with more effective investigation and enforcement powers;
• Introducing better cross-checking of data with other public and private sector bodies; and
• Enhancing the protection of personal information provided to Companies House to protect individuals from fraud and other harms.

Companies House is “ready to take action”, the Government says, and is looking at different workstreams to make sure it is ready to implement many of the measures.

Fees currently ‘much lower than global average’

There’s a clear expectation that the fees will increase after the Bill achieves royal assent.

The Government statement said: “Companies House fees are much lower than the global average and have not changed since 2016. Many believe our fees are too low.

“Our new powers will help improve the reliability of the data on our registers and tackle economic crime, which will drive confidence in the UK economy and benefit companies and society as a whole.

“We’ll be operating in a completely different way in the future with major changes needed for our systems, processes and the skillsets of our people.

“Increasing our fees will enable us to operate effectively within our new powers and deliver outcomes, making sure we continue to recover the costs of the services we deliver.”

What this means for companies

Nothing will change until the ECCT Bill receives royal assent.

Changes to fee values need to go through a robust process, including final sign-off from HM Treasury and ministers.

State Pensions are expected to rise by 8.5 per cent in April 2024 in line with rocketing wage growth.

The Triple Lock policy means the increase in the State Pension is set at the highest of average earnings, inflation or 2.5 per cent.

The latest statistics from the ONS recorded growth of average earnings – total pay including bonuses – at 8.5 per cent between May and July. As inflation is unlikely to be higher, the State Pension is therefore expected to rise in line with average earnings.

Annual rise of more than £900 for some

Basing the Triple Lock on these figures would see the new State Pension rise from £203.85 to £221.20 per week. The basic State Pension would increase from £156.20 to £169.50 per week.

The expected hike will follow on from the record 10.1 per cent increase rolled out in April 2023.

‘Headache for the Government’

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “We always thought inflation would be the key factor when it came to the Triple Lock, but soaring wages look set to outstrip it, with annual wage growth of 8.5 per cent.

“This has the potential of delivering a bumper state pension increase next year.

“Inflation has proved unpredictable and could rise again ahead of next month, but with it currently standing at 6.8 per cent it would need to be a truly enormous rise to outstrip what we are seeing here.”

The sustainability of the Triple Lock is under scrutiny due to the cost it poses to taxpayers. Research from the Institute of Fiscal Studies found that maintaining the Triple Lock could add as much as £45bn to the welfare bill by 2050.

Ms Morrissey said: “Such an increase will be welcomed by pensioners, who have gone through difficult times this year as the cost of living continues to lay waste to our finances.

“However, it will continue to be a headache for the UK Government who need to battle the ever-spiralling cost of the State Pension bill.”

Need advice about pensions? We can help.

Rules on hidden online fees, known as drip pricing, will be tightened to boost transparency for stretched families.

The Government is proposing a crackdown on extra charges such as booking or processing fees in products ranging from train tickets and concerts to food deliveries.

It comes after research confirmed drip pricing – where the price paid at checkout is higher than originally advertised due to extra fees – is widespread.

It reportedly occurs in more than half of providers in the entertainment (54 per cent) and hospitality (56 per cent) industries, and almost three quarters across transport and communication (72 per cent) sectors.

In total, this costs UK consumers £1.6 billion online each year.

New consultations have been launched by the Government, with proposals to help consumers during the cost-of-living crisis.

As well as targeting hidden fees, two other consultations will seek views on measures to weed out fake reviews as well as confusing shelf labelling in supermarkets.

‘Crucial safety net for consumers’

Minister for Enterprise, Markets and Small Business, Kevin Hollinrake, said: “From the shelves of supermarkets to digital trolleys, modern-day shopping provides a great wealth of choice.

“But fake reviews and hidden fees can make those choices increasingly confusing and leaves customers unsure about what product is right for them.

“We’ll be listening to industry to ensure these new regulations work for businesses too and don’t generate unnecessary burdens, while at the same time providing a crucial safety net for consumers and their cash.”

Stamping out purchase and sales of fake reviews

Regarding fake reviews, the Government said its ambition is to ensure customers and traders benefit from reviews that represent a genuine experience, while stamping out the purchase and sales of fake ones

Rocio Concha, Which? Director of Policy and Advocacy, said: “Our research shows that fake reviews jeopardise consumer trust and are harmful to honest businesses that don’t purchase or incentivise people to post positive reviews.”

The consultation follows recommendations from the Competition and Markets Authority to tighten the rules on how everyday items are priced on supermarket shelves as well as its own work to tackle fake reviews.

One in five people have reduced their pension contributions or stopped saving for retirement altogether due to cost-of-living pressures.

As household budgets continue to tighten, new research suggests 14 per cent of people have stopped paying into their pensions while eight per cent have cut their contributions.

Men are more likely to have taken the action than women, as well as wealthier people. And younger people are more likely to have done so than older workers.

Meanwhile, 62 per cent say they have not changed their approach to pension contributions.

Pension cutbacks are ‘no surprise’

Helen Morrisey, head of retirement at Hargreaves Lansdown which carried out the study of around 2,000 adults, said the actions are “understandable”.

“Rising prices have made balancing budgets a real struggle and it’s no surprise that, after making all the cuts they can elsewhere, people are turning their attention to their pensions,” she said.

“Such actions are understandable – keeping up pension contributions is extremely important but, given the enormous pressures our finances have been under for such a sustained period of time, it makes sense if people are prioritising the here and now.”

Rebuild as soon as possible

It is vital that people resume their pension contributions as soon as they are financially able to, she said.

“The most important thing is to make sure that, when things get better, that you resume your pension contributions as soon as you can.

“Make a note in your diary at a regular interval to remind you to assess whether you can afford to restart, otherwise it may be something you don’t get round to doing.”

Ms Morrissey added that other ways to rebuild a pension after a break is to make sure to increase contributions if you receive a pay rise or get a new job.

She said: “Doing it straightaway means you don't get used to having the extra cash.

"It's also worth checking whether your employer operates a matching system where they will boost their contribution to your pension if you increase yours. This can really help you rebuild your pension planning after a difficult time.”

Need advice about saving for retirement? We can help.

Moving from job to job and starting a new pension each time can present a headache when the time arrives to think about retiring.

Few of us can recall every pension provider we have ever had and unless you have carefully filed all the relevant paperwork, you will need help tracking them all down.

But there is no need to panic. The Government website can help you track down lost pensions.

What it won’t do is tell you whether you have a pension or its value, but it will assist in finding the details.

To use the service, you just need to remember who your employer was at the time and it will provide contact details of the pension providers for you to get in touch.

It can also help locate personal pension providers.

Plan for the future

Although there is a state pension, many of us choose to invest in a further pension through work to help save for retirement to enhance your financial security in later years.

One of the significant advantages of a workplace pension is that your employer is typically required to contribute to it. This "employer contribution" is essentially free money added to your retirement savings, which can significantly boost your pension fund over time.

Contributions to a workplace pension often come with tax benefits. The money you contribute is typically taken from your pre-tax income, meaning you receive tax relief on those contributions. This can make a significant difference in the overall value of your pension fund.

Workplace pensions often operate on an automatic enrolment basis. This means that if you're eligible, you'll be automatically enrolled in the pension scheme, making it easier to save for retirement without having to take active steps.

Get a better return

As workplace pensions are often managed by professional pension providers or fund managers who have experience in optimising investments for long-term growth, this expertise can potentially lead to better returns on your investments compared to managing your retirement savings on your own.

It's important to note that the specifics of workplace pensions can vary, and regulations may change over time. It's advisable to seek personalised financial advice to understand how a workplace pension fits into your overall retirement planning and financial situation.

To start looking for a lost pension visit https://www.gov.uk/find-pension-contact-details

Let us help. Talk to us about your pension concerns.

1 September 2023 – Due date for corporation tax due for the year ended 30 November 2022.

19 September 2023 – PAYE and NIC deductions due for month ended 5 September 2023. (If you pay your tax electronically the due date is 22 September 2023)

19 September 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2023.

19 September 2023 – CIS tax deducted for the month ended 5 September 2023 is payable by today.

1 October 2023 – Due date for Corporation Tax due for the year ended 31 December 2022.

19 October 2023 – PAYE and NIC deductions due for month ended 5 October 2023. (If you pay your tax electronically the due date is 22 October 2023.)

19 October 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2023.

19 October 2023 – CIS tax deducted for the month ended 5 October 2023 is payable by today.

31 October 2023 – Latest date you can file a paper version of your 2022-23 self-assessment tax return.

There are two types of National Insurance contributions (NICs) payable by most self-employed people. These are known as Class 2 NICs and Class 4 NICs.

Class 2 NICs are paid by all self-employed taxpayers unless they earn under the Small Profits Threshold (SPT), currently £6,725, which remove the necessity to pay NICs. Class 2 NICs are currently payable at a flat weekly rate of £3.45 for the 2023-24 tax year. Class 2 NICs count towards payments such as the basic State Pension, the employment and support allowance, maternity allowance and bereavement benefits.

In addition, most self-employed people are also required to pay Class 4 NICs. The self-employed are required to pay Class 4 NICs (as well as to Class 2 NICs) if their profits are £12,570 or more a year. Class 4 NIC rates for the tax year 2023-24 are 9% for chargeable profits between £12,570 and £50,270 plus 2% on any profits over £50,270.

There is also a specific list of jobs where class 2 NICs are not payable. These are:

• examiners, moderators, invigilators and people who set exam questions;
• people who run businesses involving land or property;
• ministers of religion who do not receive a salary or stipend; and
• people who make investments for themselves or others – but not as a business and without getting a fee or commission.

If you fall within any of these categories, it may be beneficial to get a State Pension forecast and examine whether to make voluntary Class 2 NICs to make up missing years.

You can usually claim tax relief for your private pension contributions. There is an annual allowance for tax relief on pensions of £60,000 for the current 2023-24 tax year. The annual allowance was £40,000 in 2022-23.

There is a three year carry forward rule that allows you to carry forward any unused amount of your annual allowance from the last three tax years if you have made pension savings in those years. There also used to also be a lifetime limit for tax relief on pension contributions but this was removed with effect from 6 April 2023.

You can qualify for tax relief on private pension contributions amounting to 100% of your annual earnings, subject to the overriding limits. Tax relief is paid on pension contributions at the highest rate of Income Tax paid by the contributor.

This means that if you are:

• A basic rate taxpayer you get 20% pension tax relief.
• A higher rate taxpayer you can claim 40% pension tax relief.
• An additional rate taxpayer you can claim 45% pension tax relief.

The first 20% of tax relief is usually applied by your employer with no further action required if you are a basic-rate taxpayer. If you are a higher rate or additional rate taxpayer, you can claim back any further reliefs on your Self-Assessment tax return.

The above applies for claiming tax relief in England, Wales or Northern Ireland. There are regional differences if you are resident for Income Tax in Scotland.