🚨8 Tax Mistakes That Could Cost You £1,000s—Fix Now!

If you love giving away your hard earned money to the taxman, then feel free to click away. But if you rather keep more of what you earn and stop overpaying thousands in taxes, then stay with me because this video could literally save you a fortune. It could save you thousands of pounds in taxes in the next few days. Now, the tax day ends on April 5th and once that deadline passes, and it starts with break you didn't use, they are gone forever. I've seen doctors and healthcare professionals lose thousands, 5,000, 10,000, even more simply because they weren't aware of tax saving opportunities. So today we're covering eight, eight of the biggest tax trap that I've seen doctors and healthcare professionals fall into every single year and exactly how you can fix them before it's too late. You stick around until the end because I will also share a bonus tax hack that has helped hundreds of medics reclaimed thousands in overpaid taxes. Now, I've seen thousands of doctors and professionals in our money wise doctor community fix simple tax mistakes and reclaim thousands in overpaid taxes. But I've also seen the other side. People losing out just because they didn't take action in time. Here are some real life examples from members of our Moneywise Doctor community. Number one, Dr. NK, NHS consultant, saved over £13,000 by just restructuring her pension contributions. Again, there was Dr. Uche, very cerebral NHS GP, claimed nearly £10,000 in tax relief that he never knew even existed. And of course, the affable Dr. Root, who is a psychiatric doctor, sent us this amazing message last year. Thank you moneywise doctor. I've claimed nearly £9,000 in tax relief. That sound like music to my ears. But not everyone wins. For instance, one doctor, Dr. Soma, lost out over £5,000 because she saved her deposit for her home in a regular account instead of a lifetime Isa. And by the time she found out, she was already buying her first house and was now over 40. So moral of the story, you either take action now or you leave money on the table. Let's get right into it. Now, before we dive in, do me a quick favor. If you're really serious about learning how to build your financial freedom, save on taxes, keep more of what you earn. Hit that like button and smash the subscribe button. So YouTube knows to send you more of my content. It takes a second and it really helps out the channel. Plus it tells me you're really serious about keeping more of what you earn. Should we take a second and just do it? I'll do it with you as well, there you go. Done. Awesome. Now let's jump right in. And before we crack on, in case we haven't met, I'm Dr. Andy. I'm an investor and the former salary GP. NHS GP. I'm the founder of Money Wise Doctor, a platform that has helped thousands of doctors make smarter financial decisions. Now, after years of overpaying tax, I decided to take tax efficiency more serious. And that helped me, including my investing, to achieve financial freedom. I relieved my nine to five three years ago. But this video is not about me, it's about you. Most people don't realize how much tax they're overpaying until it's too late. And once a Pro5 comes and goes, there's no going back. A quick disclaimer. I'm not a financial advisor or tax accountant. I'm just a doctor, an investor who spent years figuring out how to legally keep more Y and make my money work harder than me. So this video is only for educational purposes only. So if you need a lot of advice, you speak to a professional. Now let's get right into these eight tax mistakes that could be costing you thousands. Number one, not checking your tax code. You could be overpaying. Most people never even check their tax code, but this is one simple mistake that could mean you're overpaying tax every simple month. How to fix this? Check your latest payslip or HMRC account online it if your tax code looks wrong. If you're seeing funny codes like do emergency tax codes, contact HMRC or speak to an accountant to get it corrected before April 5th. Example is a pediatric consultant in our community who found out that for six years she was being paid using the wrong task code. And when she corrected it, she got refunded. Several thousands of pounds it pays to check. Number two, not claiming tax relief on professional expenses mean are you claiming back your GMC fees, indemnity insurance, bma, cpd, cost courses, exam fees, work related travel, even replacing equipment. This could add up in several thousands of pounds. Especially when you consider the fact that you can actually claim four years back, including the current taxi. So don't wait till April 5th. Fix it now. If you're not sure how to start, we made a simple step by step guide with PDF you can download with an accompanying video that can help you claim several thousands of bar of pounds back. I've already given an example of doctors who've actually done this. Number three, missing out on your 20k ISA allowance. So as you know, ISA is use it or lose it. It doesn't roll over. If you don't use your 20k tax free allowance by April 5th is gone. Whether it's cash ISA, lifetime ISA stock and shares ISA maximize it if you if you're not sure what to do, you may consider putting your money in the cash ISA until you decide how you want to invest it. And remember the Lifetime ISA. If you're under 40, you can still claim the £1,000 government bonus before the tax year ends, but it's just for your first term or for retirement again. If you want to learn about ISAs, just comment ISAs and I'll share the link. This could save you several thousands of pounds not just in your taxes and pensions have you fallen into the 60% tax trap as a doctor healthcare professional without even knowing? It's crazy. I know you think the highest tax you can pay is 45%, but here how it works. If your income exceeds 100,000 you start to lose your personal tax allowance and by the time you hit about 125,000 you've lost your entire tax allowance. This means you're paying an effective tax rate of 60%. That's not good. You lose a lot of other benefits with it. Now if you if it's something you've never thought about or you're worried you're not sure how to navigate it, you're in luck because I've written a very clear guide with a 10 point checklist that you can use to avoid the 60% tax drop. One of the biggest one is obviously paying more into your pension, but there are nine other steps you can take. Check the link in the description and download it for free. Let me know if it helps. Let's jump right back into the episode. Number four not maximizing pension contributions so pensions are one of the best legal tax shelters in uk. Yeah, most people are not even contributing enough. You have £60,000 annual pension allowance which includes pension from both your workplace or any private pensions you have. And if you contribute more to your pension can drop into a lower tax bracket and reduce your tax bill and also boost your retirement savings with tax free growth. But something to really watch out for. You want to make sure that you're not crossing the 60,000 pounds annual allowance because this could make you land with a penalty. If you're not sure how to start, you can download our free Tip Guide is a self invested personal pension guide that can help you figure out personal private pensions. If it's something that could help you and if you're unsure, speak to a financial advisor. Number five falling into the 60% tax trap. Now I've been speaking about this for over a year now, but if your adjusted net income crosses a certain amount, £100,000, you start losing your tax free allowance of £12,570. That means that for every extra £2 you earn above that 100,000, you lose £1 from your tax free allowance and you'll be paying an effective tax rate of 60% by the time you hit 125140. That's the magic number. You've lost all your tax free allowance and paying an effective rate of 60% again. A few things you can do is to consider reducing your taxable income by making additional pension contributions. I've done a free guide explaining all about how to avoid the 60% tax drop and it's very popular. It's been downloaded by thousands of doctors and healthcare professionals. If you want it, just comment in the comment section and request it and we'll share the link or check the description to download it for free. That can help you through the process. And of course, if you have any questions around how to avoid the 60% tax trap, I'm more than happy to answer them in the comments. Number six Ignoring Capital Gains and Dividend taxes. Now you might not know this, but whenever you buy and sell an asset like a stock crypto, even houses, and you make a profit, you owe the government money. It's called capital gains tax and it's quite sizable. However, there's a CGT allowance which if you make any gains below that amount, there's no tax deal. Unsurprisingly and a bit painful, the CGT allowance has continued to be reduced by the government over the last few days. In fact, over the last few years, in fact it's dropped from £12,300 in 2022 tax year to £3,000 now. So one way to fix that use your ISAs. Use your SIP to sort of like do tax efficient investments. So there's no tax on investment done in the isa. Number seven not planning for inheritance tax. If your estate is worth over 325 000, that's 600k for couples. Your family could lose 40% to inheritance tax. You can fix it. Now you can use gifting allowances and put assets in a trust like something like your life insurance. You can put in a trust to ensure that payouts are not taxed and even consider things like spousal exemptions and of course pension planning. Speak to a competent advisor if you need help in this. Right? If you've Come this far and you're enjoying so far what you've been learning. Feel free to hit the like button and the subscribe button. Now let's go over to the final one, which is number eight. Number eight drum roll. If you've gotten to this point is exceeding the 60k pension allowance. Now if you exceed the pension allowance it can trigger a tax charge and many high earners unknowingly exceed this limit due to pension growth and additional pension contributions. There are a few things you can do. Check your total reward statement to calculate your pension growth. Use your carry forward if you haven't maxed out the past three years allowances. And of course speak to a financial advisor, especially tax expert if you need help. Now if you fix these things before April 5th, this tax base, they can actually help you. So you don't wait till April 5th when it disappears or you might risk leaving money on the table. All right, going to do something. If you want a deep dive into these tax areas, join my tax hack X Ray Challenge for Doctors and Healthcare Professionals. It will be a two hour session where we use a fine tooth comb to go over all the tax areas and more and compare list checklists before April 5th as it's quite an in depth session. We can only accommodate 30 medics to make it effective and to make it useful. So if you want to be offered a place or a slot, you need to act fast and join the rapidly growing waiting list. So if you click the link in the description or comment to join the waiting list, you'll get a link to join the waiting list and of course like and subscribe. If this video has helped you and drop a comment on which mistake you fixed. I'm more than happy for you to share the video as well and I will see you in the challenge.