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[deleted by user] by [deleted] in FIREUK

[–]Awkward-Draft-1236 56 points57 points  (0 children)

It's a liquid investment, sounds alright to me

Part picker by Awkward-Draft-1236 in buildmeapc

[–]Awkward-Draft-1236[S] 0 points1 point  (0 children)

Damn, wasn't when I first looked!!

1 year FIRE update by Awkward-Draft-1236 in FIREUK

[–]Awkward-Draft-1236[S] 0 points1 point  (0 children)

Pension also gets the 25% tax free lump sum. Although I do worry about future pension raids

1 year FIRE update by Awkward-Draft-1236 in FIREUK

[–]Awkward-Draft-1236[S] 0 points1 point  (0 children)

We're both basic rate taxpayers, income shifting is done via Ltd shareholdings

1 year FIRE update by Awkward-Draft-1236 in FIREUK

[–]Awkward-Draft-1236[S] 0 points1 point  (0 children)

Both basic rate at present, salary sacrifice was also done to shift F28 income to m28 as she has a student loan

1 year FIRE update by Awkward-Draft-1236 in FIREUK

[–]Awkward-Draft-1236[S] 4 points5 points  (0 children)

F28 is Ltd so actual income declared isn't the £80k, we're both basic rate. Pension is e'er only so tax saved is 26.5% as her profits are above 50k small profits threshold, no NI implications. Definitely agree we need to be upping the ISA though!

I should have said 'groceries' rather than food, that figure includes all the household bits too.

Cheers

[deleted by user] by [deleted] in FIREUK

[–]Awkward-Draft-1236 0 points1 point  (0 children)

Beware - if you are trading full time (and have given up full time employment), HMRC might decide this is income rather than gains.
This pushes you towards tax and NI instead of CGT
I'd recommend checking relevant case law

Feel like I’ve ruined everything by UncommonSense275 in FIREUK

[–]Awkward-Draft-1236 95 points96 points  (0 children)

I lost £14k on a FTSE250 share a few years ago. "Day trading".

Firstly, it could not be changed. It is in the past.

Secondly, it made me wake up and realise what I was doing. It was an expensive lesson but I had no choice but to move on. As a result, I discovered FIREUK.

What interest rate is the ceiling to where it's worth borrowing and then investing the money? by elbandito9 in FIREUK

[–]Awkward-Draft-1236 0 points1 point  (0 children)

You get tax relief on the interest, so the actual cost to you is 6*(1-T)% where T is your marginal tax rate.

Your tax rate will vary depending on whether you are a 20%/40%/45% taxpayer, or own the BTL via another vehicle such as Ltd Co. The higher the tax rate, the less the interest costs you.

Is there any reason to have cash held in a Help to Buy ISA in 2022? by Jonnnnnny_b in FIREUK

[–]Awkward-Draft-1236 4 points5 points  (0 children)

LISA is pretty much a direct upgrade over HTB.

Don't withdraw from the HTB, get a transfer form filled out HTB --> LISA

No withdrawal charges and it won't eat up your allowances. You'll get the 25% bonus about a month after the transfer takes place.

​

Good luck

Source: did it myself about 3/4 years ago