Wise Monkey Financial Coaching
Some people are good savers. Regardless of how much they earn they always seem to have money set aside for special occasions and rainy days. Others, even when they have a good income, seem to be permanently broke and waiting for the next pay cheque. You probably recognise which you are.
A new study has found that more and more people have an account or credit card hidden from their partner. Money secrets can be just as harmful to a relationship as cheating. Interesting article by Anna Maxted about financial infidelity in The Times, with commentary from Simonne Gnessen.
While December is a month of splurging, January is typically associated with cutting back – whether that’s on food, alcohol, or spending.
If one aim this year is to improve your financial situation, increasing income is just as important as reducing spending. One area often overlooked is finding ways to claim everything you’re entitled to. This is especially important if you’re one of more than 10 million people completing their self-assessment tax return ahead of the 31 January deadline.
Self-assessment
Self-assessment is a system used by HMRC to collect tax. If you’re an employee, tax is usually collected automatically from your monthly salary and shows up on your payslip. But if you’re self employed, or have additional sources of income such as savings interest or rental income, you have to declare your income to HMRC and offset against that any expenses that attract tax relief. The more tax relievable expenses, the less tax you have to pay, which means more money in your pocket.
So when you’re completing your tax return it pays to make sure you’re claiming all the tax relief you’re entitled to.