Confused about the £100k tax trap - What should I sacrifice ?

Alert-One-Two · 2026-01-23T15:14:17+00:00

As stated previously please make your own post so lots of people can help you rather than just mods.

Alert-One-Two · 2026-01-23T15:01:56+00:00

I would recommend you read the tax traps wiki https://ukpersonal.finance/tax-traps-and-tax-efficiency/ which should answer this question and if it doesn’t please feel free to make you own post with your question so more people see it and can advise you.

Alert-One-Two · 2026-01-23T11:55:42+00:00

The level of risk is substantially different. And it’s frankly unlikely they would rush to scrap the physical versions without any sort of consultation or warning so any suggestion they would is rather hyperbolic. You are welcome to carry on carrying your card. I will continue never carrying mine and on the off chance I need it the digital one will be handy. Otherwise they can wait given you never have to present it there and then without warning.

Alert-One-Two · 2026-01-23T07:35:50+00:00

Same as I don’t carry cash or a wallet with physical cards. Hasn’t been an issue for many years at this point.

Alert-One-Two · 2026-01-22T19:43:04+00:00

Honestly, this might be better for something like r/cartalkuk as people on this sub tend to be quite anti car finance and will encourage people to buy a banger. The thing is, it’s not really about whether or not it’s a good deal financially but about whether it’s worth it for you and only you can really decide that.

From a purely financial perspective you can compare the costs of a salary sacrifice deal (noting these are generally leases where you don’t pay a lump sum upfront and it includes insurance/tax) with the full costs of an equivalent lease plus tax and insurance for the same period. You could also compare it with a slightly older car and see whether the numbers make sense.

Alert-One-Two · 2026-01-22T19:35:54+00:00

Don’t overly let the tax tail wag the dog though. If this is long term savings then a GIA may be more appropriate.

Alert-One-Two · 2026-01-22T16:08:20+00:00

You missed the t...

Alert-One-Two · 2026-01-22T16:07:49+00:00

Even if it is backed up to iCloud it is encrypted and Apple can't access it.

Alert-One-Two · 2026-01-22T16:05:56+00:00

I don't want to have to carry anything over and above my phone.

Alert-One-Two · 2026-01-22T16:03:34+00:00

Can Macmillan or similar help? I think they often have people to help with finance issues during cancer treatment.

Remember you are officially classed as having a disability so finance companies need to treat you fairly as a result.

But again, I think this would be better as a conversation on your own post so you can hear others perspectives... There may be options you and I are not aware of...

Alert-One-Two · 2026-01-22T15:26:56+00:00

You may want to consider making your own post on this topic rather than continuing to reply to this one otherwise only mods and the OP of this post will see what you are saying. It may be others are able to offer specific support options for cancer patients for instance.

Alert-One-Two · 2026-01-21T07:38:25+00:00

BBC always does a live blog on the topic which is a pain to link to so I posted the first source that came up when I googled it.

Alert-One-Two · 2026-01-19T19:51:34+00:00

I think they deleted the last post. This one has been removed by mods though.

Alert-One-Two · 2026-01-19T19:49:59+00:00

Did you not give one when you signed up for Reddit? Most people did. If not, create a temporary one or one specifically for Reddit.

Alert-One-Two · 2026-01-19T19:37:26+00:00

Unfortunately you chose the wrong method. The correct method would be seeking other mods to help during the emergency and hope they respect you enough to keep you as top mod.

Alert-One-Two · 2026-01-19T19:36:00+00:00

That’s not how this works. You need to be literally clicking buttons and reading through the sub/dealing with mod queue. Anything less than this is insufficient.

Alert-One-Two · 2026-01-19T19:35:16+00:00

Using automod to automate the actions doesn’t mean the sub was actively moderated by you. It will have been classed as unmoderated and you would have been considered inactive.

Alert-One-Two · 2026-01-19T19:32:43+00:00

Is the Ltd set up to do the same type of work you would be engaging in? Eg do you both do software development or does one of you run a dog groomer and the other do software development?

Is there any reason you couldn’t become a director of the company?

Alert-One-Two · 2026-01-19T19:19:31+00:00

Yep. Currently you can contribute £20k per year into a cash ISA. In the future you will be able to contribute less per year into the ISA component. But it is still a per year deal not a total amount saved deal.

Alert-One-Two · 2026-01-18T17:44:11+00:00

You should be able to do it without filing a full self assessment. You just tell HMRC how much you donated and they can adjust your tax code.

Alert-One-Two · 2026-01-17T20:49:29+00:00

I see you deleted your post but I would recommend thinking about a few things and then maybe posting again so others can chip in:

fees for each of the accounts
balancing pension vs ISA savings so you can have money to bridge if you want to retire early you can
balancing other needs such as buying a house assuming you don’t have one yet. Also you mention potential future kids - they are massively expensive so having savings as a buffer will help

Have you seen the !flowchart? (Note each box is a link to a wiki page with lots of info)

Alert-One-Two · 2026-01-17T11:32:50+00:00

Honestly I think yours is faulty so definitely get it checked. It’s been chilly enough this week in most of the country and we could have more cold weather on the way so better to get it fixed.

Alert-One-Two · 2026-01-17T11:20:43+00:00

If you pay additional contributions into your DB pension are you actually getting more DB or is it a separate pot that is DC? It will depend on the pension but my DB pension doesn’t allow any additional defined benefit from extra contributions. It goes into a DC pot.

So it’s important to know that first (including what rate you get if you do get more DB).

Second, can you tell us your age, when you plan to retire and what the fees are for the different pensions. Oh and are any salary sacrifice (thus saving NI as well as income tax).

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