MTTM Podcast Episode 445 – Smart ways to play the NI cuts, how to pay tax on savings interest & money reflections

Listen to Episode 445

On this week's show we discuss how to take advantage of the cuts to national insurance, which came into effect on 6th January, to improve your finances. We then explain why more people will be unaware that they will now have to pay tax on the interest earned on their savings. We explain who is impacted, when they need to pay and how to go about it. Finally, we discuss the importance of reflecting on past money failures and successes.

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Resources:

• The first ever Money to the Masses article
• National Insurance cut: Will you be better off and by how much?
• What is the personal savings allowance (and how you can boost it by £5,000)
• How to fill gaps in your National Insurance record
• MTTM Podcast Episode 304 - Build your black book
• MTTM Podcast Episode 408 - Black book revisited
• Damien's Money MOT

Episode Quiz

Here are five multiple-choice questions to test yourself after listening to this week's episode:

Question 1

In 2010, what was the first ever Money to the Masses article about?
a) Budgeting tips
b) How to get savings interest tax-free
c) Successful Investment strategies
d) How to cut your mortgage

Question 2 
Excluding ISAs & premium bonds, what’s the max a person can theoretically make tax-free from interest on savings?
a) £10,000
b) £12,570
c) £17,570
d) Over £18,000

Question 3
How much is the personal savings allowance for a basic rate taxpayer?
a) £500
b) £1,000
c) £1,500
d) £2,000

Question 4

What can married couples use to increase their tax-free interest on savings?
a) Joint account allowance
b) Marriage allowance
c) Spousal bonus
d) Family tax rate

Question 5
How much annually will someone employed earning £20,000 save due to the national insurance cut?
a) £100
b) £150
c) £200
d) £250

Answers

• Answer 1: b) How to get savings interest tax-free
• Answer 2: d) Over £18,000
• Answer 3: b) £1,000
• Answer 4: b) Marriage allowance
• Answer 5: b) £150