Conradi Morrison & Co specialise in assisting dental practices and dental associates and can advise on financial and accounting matters such as Personal Savings Allowance. From 5 April 2016 (tax year 2016/17) the new Personal Savings Allowance was introduced and tax no longer deducted from savings at source.

The New Personal Savings Allowance allows basic rate tax payers to receive up to £1,000 in savings income before tax is due. Higher rate tax payers get a £500 band and additional tax rate payers have a nil band. The Government expects that this new allowance will take 95% of savings out of the tax system.

Persons moving between basic, higher and additional tax rates will find more savings income will become taxable as it progressively falls outside the PSA. Some taxpayers may be used to receiving a refund of tax deducted at source and so are normally eager to file their tax returns in order to speed up the refund. From April 2016 savings income will normally be received gross and it is likely that for taxpayers with larger interest receipts, tax will be payable.

Some of Conradi Morrison & Co's clients had thought that savings were now outside the tax system but this is not the case. Any interest received over £1,000 or £500 for higher rate tax payers will still have to be declared. It is therefore still beneficial to consider ISAs.

Conradi Morrison & Co would be very glad to meet you and discuss the possibility of tax planning in your business. Call 01322 278188 to arrange a meeting without charge.