ACCOUNTANT EXPLAINS: How to Pay Less Tax

[@nischa]

➡ Get a free share worth up to £100 by using NISCHA at checkout or visit: nischa.me/trading212 👉🏽 My Intentional Spending Tracker (free) - nischa.me/intentionalspendingtracker

[@jagsfanrick]

Darn, country not supported(USA). What do you think of Stash?

[@guye94]

Show us your stocksportfolio Nischa in an upcoming vid. Already a long time Trading212 user.

[@mozaman9005]

Would be good to get a video to help increase confidence in investing...what approaches etc...

[@madhurisapfico]

Thank you Nischa for a very helpful video. Can you please also make a video about how you set up a Company to add KZbin earnings? Which category your company has been registered?

[@BattleofYT]

Thanks nischa

[@kooliecurlz93]

I think apart of what has been making your channel grow so rapidly lately is not only because of your wonderful content but also I’ve noticed that KZbin is lacking of European/ UK financial creators that know what they are talking about and make their content engaging at the same time. I am grateful because usually when searching on here it’s a lot of US based content which isn’t very helpful a lot of the time (personally)

[@mozaman9005]

Spot on couldn't have said it better!!

[@piman6211]

Correct, we need more switched on UK voices.

[@yvonnedollface]

agreee!!!!

[@itspatriciajuane]

Spot on!!!

[@mrexpress8002]

@@itspatriciajuane yes 100%

[@iamnickthegeek]

Excellent video. Just a small point to clarify for anyone in the UK, you don't need to be a legal "Company" (e.g. Limited) to deduct business expenses before paying tax, you can absolutely do this as a "Sole Trader."

[@renatatrencanska3942]

Thank you Nick for clarifying, I was just wondering exactly that.

[@unboxing4319]

Sole traders are liable for 40 and 45% tax rate. Employees of ltd aka director can set up 1257L and dividends, bringing down rates to anything from 8 to 39.35%

[@susieherbert-light7133]

@@unboxing4319do you have to pay 25% corporation tax before paying dividends?

[@rlc2978]

But it FAR more limited

[@unboxing4319]

@@rlc2978 pun intended?

[@roselinededua]

Please make a dedicated video for self-employed tax payment! Thank you 💕

[@lupitahaussmann]

You speak so eloquently and have quickly become a finance role model. I'm looking forward to learning more! THANKS!

[@rambo8084]

Putting aside the whole content aspect of this video, your delivery of content is absolutely to perfection. Clear, straightforward and precise. The professionalism, politeness and with clear vocals, without any emotional bias towards your content is incredible. I believe these factors is what keeps viewers engaged in your videos through till the end. Keep up this method and your channel will grow rapidly for sure.

[@mikegregory8353]

I’m hooked. Advice as to what you do when your ‘side hustle’ Ltd company business account starts accumulating money and it’s just sat there and growing when you’ve taken your tax free dividend. .

[@TTO2023]

Totally agree very easy to follow but need more advice on how to save tax and investments like stocks I find are just abousivei invested in couple of companies and they sold there shares and I lost money in all of them and I was forced to sell

[@nischa]

This is so kind, thank you!

[@ceeh5610]

Totally Agree, there should be a Television or Film contract for someone as talented as yourself.

[@brentjackson4151]

This is what we are taught to do as accountants

[@jf1341]

Probably the best 8 min 41 secs I've spent on KZbin. Thank you! 🙏

[@JasonR184]

I wanted to watch the full video before commenting and I am seriously blown away. I recently paid for a course to learn this and this single video is so much better than that entire course! Nischa, very well done and thank you so much.

[@nischa]

so so glad to read this, thank you

[@knowledgeseeker5499]

Totally agree and she is giving good advice to helping others. We should all have learned this lesson from schools

[@brettm6016]

you paid for a course to learn basic tax information you can find on google? huh?

[@Jackrobert28]

@@nischa Is an umbrella corporation a good thing to use as a consultant ? I am doing a CFA 1 test trying to get into Finance in the UK, would it help me get my foot into the back office ? Thanks.

[@mattheww6167]

Excellent video so much information explained clearly, many thanks. In the future I'm going to be selling a property that I currently let out which did cover the mortgage sadly it doesn't and I had to extend the term which wasn't ideal. Any videos on capital gains tax would be greatly appreciated. Many thanks

[@filmwork1]

This explanation is way more easier to understand than the ones i've had with my accountant for 14 years. (Love the new graphics btw).

[@KevinTalbotTV]

great overview. Taxes in this country are getting bad, thinking of moving to the isle of man, could you do a video on that? How to set up the new company, how long you have to stay there to get the tax benefit etc.

[@FaizanShaikh-pp1kg]

Which country?

[@benz.]

@@FaizanShaikh-pp1kg I'd confidently assume he is referring to the UK 🇬🇧

[@pokethebear242]

isle man dead, but yh moving if healthy good

[@Rapha187]

Why do Americans always think they can just move to another country? You can’t! You need a visa (thru spouse or high end investments). Emigration is a long and hard process.

[@benz.]

@@Rapha187 Well... he's not American. The Isle of Man and the UK have good reciprocal agreements regarding living, visiting and working in the respective jurisdictions. It's much easier than moving from the UK to elsewhere, so I don't see the issue.

[@sitapatel573]

Great informative video! Would love a Video on UK pension relief - and a breakdown of how the 20% / 40% / 45% income tax brackets impact tax relief please

[@elviraeiduka2955]

The quality of your content is amazing, thank you for this useful information! ❤ Could you dive deeper into taxes for small business owners: what can generally be written off as expenses, what to look out for in a tax advisor, when to start looking for an accountant (at what stage of the business) and maybe the average charge rate of tax advisors and long term accountants. Keep up the good work, Nischa ✨

[@Ac3eeey]

You’re the hero we all need in this world. ❤️ Please talk about property tax and offshore accounts when you get the chance. 👏🏾

[@irisdanagher]

Think she needs to get Nadhim Zahawi as a guest speaker for that video. 🤔

[@dietitian.kelseythomas]

I agree! Would love to learn about offshore accounts

[@mpink8907]

I’d love to learn about offshore accounts too!

[@ironore8853]

You’re Subs growth is super impressive. I think what people like is your honesty, transparency and helpful content. Too many on YT are trying too hard.

[@Dumbled0resArmy]

Hi Nischa, Can you make a video around setting up a company and the benefits and drawbacks of each company structure (LTD, LLP, ect)

[@sb-fc6uj]

Yes I agree, I am currently self employed and I seem to remember another option was LTD company but as I don't earn very much as its part time work I chose self employed. Is that what you meant when you referred to 'individual' and 'company' in this video? I am in the UK

[@solmontano6689]

Would love to hear about setting up offshore accounts/ companies in tax havens. And ways they can be used to minimise earned income in the UK and Canada. Cheers! 🙂🙂

[@lisannewinter6122]

Hi Nischa! Thank you for this video, it has been very helpful. I would love to see a video on 1) how to set up your company structure to save on tax & what is the best way to pay yourself through that structure 2) how to find a financial advisor, what to look out for and what the typical costs are. Again, love your video's. 😇

[@tzc9309]

@@The_MoneyGuru pretty sure there are more tax benefits to setting up a limited company if done correctly though so do your research before making a decision - the money guru you sound like you work for hmrc rather than giving out good advice 😂

[@tzc9309]

@@The_MoneyGuru Im sure you know 😂

[@laurenherbert7652]

Nischa I’ve been so inspired and motivated by your content. I discovered your channel in the last month and there’s already been a marked improvement with my finances/attitude towards my spending/earning already. You’re a fantastic teacher. Keep up the great work! Xx

[@vickipedia3253]

I agree

[@parismozzy5388]

Yes totally agree 😃Nischa is fantastic! So happy we’ve found her x

[@nischa]

So happy to read this, thank you Lauren! Xx

[@NikolasMartine01]

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

[@Monday_media]

Nischa, you've done it again. This is dope. You lil life saver. Make this a series 👌🏾🙌🏾

[@Gemstonetarot]

As a UK Ltd company director is it still a good idea to take money out of the business account and put it into savings account? I want to build up an emergency savings fund but I realise that as soon as I take it out of the business account it attracts 8.5% dividend tax.

[@margueritestrydom5807]

This is amazing. I love your practical advice and the fact that you are showing people in Europe/ the UK what they can do. Please cover more Tax content and I would LOVE to see videos on offshore accounts and how to set up a company online as you mentioned in the video. Thank you for all your videos!

[@SPxDaxBoSS]

I originally started watching your videos cause i was interested in the content of your work, but honestly, more so in the attractiveness of your accent and the more obvious physical attraction... great smile!!! Anyway, I've seen about 5 videos now, back to back, and aside from the accent that makes me want to hear you talk all day and watch you smile in between every sentence i got to say you make absolute sense and are so helpful with the information you share i have learned a multitude of things on just the 5 videos ive watched thus far. Honestly ive shared 3 of the five videos and im binge watching every video i can from your channel. Cheers!

[@juniorolajide213]

Videos about offshore accounts and energy efficient cars will be great!! Loving the content so far, especially the fact that you're UK based.

[@alphadanger2223]

6:30 I think you should clarify that for S&S ISA accounts you can pull out your money at anytime and any profits are tax free also, not just when you retire incase people are confused versus a pension

[@nischa]

^correct, thanks for adding it here

[@Anabella122]

Hi Nischa, I have recently come across your channel and I just want to say what great job you are doing. I love your style and your way of explaining financial concepts which is so easy to understand. And it's great that you are also in the U.K, as I am, as your information feels much more relevant. So glad I found your channel and thank you for the invaluable financial education :)

[@nischa]

Thank you so much Anabella

[@FilmBooth]

Your channel is flying :) everyone keeps telling me about you, amazing work Nischa

[@electricbelletrist6810]

Would definitely love to see a video on savings for energy efficient cars please. Such a comprehensive & approachable introduction to tax- thank you!

[@kevingomez9835]

Yo! Came across this video on my lunch break. What a blessing! Thanks for the knowledge, much appreciated! 🙌

[@shadowr6348]

Just found your channel. As a Uk expat in the US, I realized when I came out here how financially illiterate we are in the Uk, we tend to give up our autonomy and expect our companies, HMRC and the Govt to make decisions for us, whereas here in the us, you are on your own. It is nice to hear a Brit KZbinr offering education, so thank you.

[@HenrijchLermont888]

Nischa, very happy to meet you! Thank you for this video, it's a powerful teaching 🌹🙂

[@jacquelineblackmore-allen1576]

I love your channel Nischa! So succint, relevant, and easy to understand. I've only been watching for a couple of weeks but I am really inspired! Forgive me if you have already covered these, but I would love to see videos on the following: - What to prioritise with respect to savings, investments, etc, when starting at an older age (e.g., 40+), would the priority list be different to when someone is, say, 25-30? Is there anything that should be avoided or prioritised? - Investing pre-IPO (e.g., crowdfunding for start-ups) vs buying shares in public entities. Thanks in advance and keep up the good work!

[@bonwatcher]

It is amazing to me how many people in the U.S. do NOT understand how to come up with the effective tax rate one pays. So many people think if they are in the 40% tax bracket they are paying 40% of their adjusted gross income. Thank you for explaining that concept, I hope more people will understand how tax brackets work. 👏

[@Thejohnmullen]

I’d loved to learn about the offshore accounts.

[@jamieburnip4201]

Hi Nischa, should I be opening an invest account or a ISA on trading 212? Really keen on giving it a go!

[@davegenders2490]

A video on setting up an offshore (tax free) account would be very useful and very interesting, Nischa.

[@jshott726]

Thank you for such informative, clear and accessible content Nisha! Id love to hear more about tax efficient ways of buying energy efficient cars. Thank you

[@rusaliagumerova33chingizhan]

You are truly professional and very kind, intelligent, honest and I enjoy all your videos. The knowledge that you share with public is very concise, we need more videos from British Professionals, educating us lot on many aspects. Taxation code and method must be applied in a way that should benefit the working class, so thank you Nisha for sharing this information with us. Wish you all the best in your career and personal life.

[@SaintOrCinema]

More of your amazing wisdom in tax please! 🤩 especially legal and ethical offshore accounts X

[@a.y.o694]

Thank you. Please do one on how to set up a coming, offshore accounts etc.

[@Jaymy580]

Having worked for a UK pension provider it is scary how many people don't know some of the basic things to do to better themselves. I am no expert and would love to know more. The offshore accounts, property tax and energy efficient car savings would be great to know more about.

[@midwestbd7144]

In the US you can also put money into a HSA which is tax deductible and can be used to buy a large variety of medical products from band aids to medical bills.

[@Maya-ln1os]

Yes...please make a video about how everyday working people can set up off shore accounts.

[@MohammadNohman]

More of this please. Much needed information especially in this day and age. Thank you

[@patc2515]

Really excellent content. I look forward to seeing more of your videos about the various things you mentioned at the end. All of it, lol.. Really well done, nicely spoken, thoroughly presented, super informative. Thank you for sharing this information! You've definitely earned my subscription! I'm sure this channel will hit the million subs club very quickly!

[@ti3857]

I wish we had someone as knowledgeable as you for those of us in the U.S.

[@kima6474]

No frickin way! Nischa, are you really at 225k subs already? HUGE Congrats 🥳 ; it’s well deserved. Okay, lemme dive into this video now. Thank you for all the great info you share. I always learn something from your videos, it’s not always the same regurgitated stuff everyone talks about. Even if it’s not something new, you always manage to put your own spin to it. I appreciate you❤️

[@nischa]

I appreciate you and comments like this!!

[@tanyar.5587]

I am so eternally grateful for your explanation on tax brackets. This is mind-blowing! I've been through an economics at uni in the UK but it's never been explained as flawlessly as you do. Thank you once again! I am a big fan of your channel now. Keep it up! I'll be looking out for your content.

[@Sandy83]

I know nothing about finance but happy to learn that I am already doing a few good things like salary sacrifice (although i just got laid off last week) & filling my ISA/LISA. This is really great content, super happy to have found your channel!

[@justanothergirl5]

Hey Nischa.. please do dive into the other ways you briefly mentioned at the end of the video that can help save money on taxes. Can’t wait. Congratulations on the 200k plus subs. You’re the first finance channel that I’m legit following and watching. ✌🏼

[@josephjoestar995]

I’m pretty familiar with the whole ltd and expenses method, but 100% of my income is through PAYE. I earn just shy of 6 figures as a data engineer but I get taxed like a donkey, what are my options if my income is taxed before it even reaches my bank account? Will visiting a tax accountant be of any use? Thanks!

[@maaia]

Just opened a trading account 🎉I almost 100% of the time never sign up to software being promoted / sponsored on YT videos but you deserve the referral fee! So glad to have discovered your content today ❤

[@potatochipping4761]

Thank you for sharing your knowledge- it's invaluable! As a single mum, I've always been afraid to invest but didn't know where to start mainly because of the financial jargon. Thank you for making the information not sound like a complete mystery- it's so freeing to finally know there are ways to keep more of my hard earned money!

[@ping7979]

Pension contributions are often taken after tax. In which case you automatically get 20% topped up. However, a lot of people don't realise that if you are a higher rate tax payer, you are entitled to receive a further 20% but you have to claim it back in your tax return or by writing to HMRC. You can back date it several years too.

[@nida1990]

Nischa, can you please make a video showing how to set up a company in the UK? I am clueless as to where to start - I want to start my own tutoring/consultancy business as a side hustle apart from being a teacher. You are honestly a God sent

[@allborosnyc4544]

Nischa, great explanation on taxes. Here's my issue- I live in NY, USA and my wife and I contribute to a tax deductible 401K retirement account. We deduct property/school tax (max 10K allowed), deduct mortgage interest and deduct charity contributions. The Standard deduction is 25K for married couples filing jointly. So, we lower the taxable income by 35K (retirement contributions) & the federal tax bracket stays the same and the 35K pension contribution hardly made a beneficial difference. Plus, the standard deduction is 25K so we can't deduct the property taxes or mortgage interest. Charity contributions and my 2 children barely make a credit or deduction difference. Taxes are insane!

[@mooremoneymakin]

Great overview of the basics, looking forward to part 2!

[@aymenelmardi7788]

Thank you for taking the time to make this video . Really Helpful crazy world " Because you have a passion for finance & accouting, we get free advice"

[@fadifadi174]

Good video! Looking forward to part 2. Also your views on thr property market given the higher rates will be really appreciated

[@ShiloKingston]

Thank you for such informative, clear and accessible content Nisha! Id love to hear more about tax efficient ways of buying energy efficient cars. Thank you

[@chrissyr6388]

Nischa! That was so helpful! In California our taxes are so dang high, I’m looking to find avenues to keep more money in my pocket🤭 Would you be able to break down what you can wright off for small businesses? Even perhaps you tube side business?

[@LordAstrowaffle]

Yes please a video on offshore, and what sort of expenses you can feasibly deduct if you have your own company

[@ThaiLemongrass2020]

You are so very good at this. I am a Thai who is loving and living in the UK. I have just understood the UK tax ladder from your video. You have a new fan now. I hope I watch more of your useful videos xx

[@potatochipping4761]

keen to see content on setting up an offshore account and how to buy an energy efficient car. Thank you!

[@alexandraparri]

Thanks for a great video, Nischa! Can you please make a video about the tax benefits of setting up a trust and what kind of income/assets you can add in the trust? Also more content around properties would be a plus! Thank you :)

[@ummishaaq3273]

Yes please, a vid on the offshore options would be great! I would love to understand the processes

[@ms_tangarello]

Hi Nischa, recent subscriber and am starting a habit of watching your videos once per week. Your videos are always top notch and feels amazing to keep learning more ways to financial freedom :)

[@irisdanagher]

If you are a higher-rate taxpayer, you could reclaim an additional 20% tax on your pension contributions, for a total of 40% tax relief. This is one of the biggest benefits of saving into a pension - getting tax reliefs on everything you pay in. This is for net deduction pension not the salary sacrifice pension that Nischa describes as it is done automatically in this scenario.

[@keithlacey]

Off shore account video please :)

[@marssb6056]

Looking forward to the next videos on setting up offshore accounts, property tax and stamp duty…all 3 much needed

[@ihaziqhabib]

Amazing video Nischa, would love to know about your career journey 😊

[@Rhino11111111]

This channel has exploded and rightfully so!

[@loupaws5153]

I'd love to hear about offshore accounts. The tax hikes coming in the UK are ridiculous and unfair.

[@darrenmooruthv2]

Excellent, very clear and concise, especially for the UK. Would love to hear about setting up offshore accounts, property tax, stamp duty and absolutely on energy efficient cars. Wishing that I knew this stuff before I purchased my EV car. Looking forward to seeing more of your content. Thanks Nischa.

[@marquise5265]

Niiiiissschaaaa! Thank you so much for this! I'm about to quit my job and "fly solo" professionally and tax-wise, so I need to learn as much as I can about registering as sole trader or maybe setting up a company. Doing it in the Uk or maybe somewhere abroad where the tax rate is lower (Bulgaria 10%). I've contacted a few people on Fiverr, but their advice was incredibly basic and not very helpful. Could you go more in depth with this topic or maybe recommend someone? 🙏🙏

[@absolutebensmith]

I've always found it astonishing that people don't realise that 40% tax only applies over a certain amount

[@JoseLuisGuillenLopez]

Another thing that you can do for reduce taxes as an expense is if you are the house owner from the currently house that you are running your business. You as a company should pay a rent and also, as an owner you need to create other management business. But remember : The Ranger Rover cannot be declared as a business vehicle ; )

[@browbarella7139]

Off-shore accounts? YES PLEASE!! Your videos are awesome!! Thank you lovely Nischa!

[@bitobesttoday]

Off shore accounts video please!

[@guygreen2082]

Yes please here too.

[@You.Tube.Account]

What a lovely KZbin channel to watch. Two videos in and i learned so much!

[@jimipet]

You can withdraw any time from your stocks and shares ISA without losing any tax. You dont have to be retired for that.

[@ellie_sarabellum]

This was so informative, thank you! I'd love to learn more strategies and information about offshore accounts. You make accounting so much fun, much love!

[@Brocky-ji6ue]

Pls keep doing more on this topic . Love your videos

[@lolitashaniel2342]

I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green. I'm 47, and earn nothing less $150k per year, but nothing to show for it yet

[@willreidy5851]

Great video Nischa - no messing around, straight to the point & you come across well. Thanks

[@shiran0211]

Hi Nischa, thank you so much for another great video. Do you think you could make a video is Ltd company vs self employment (tax implication, other differences, pros and cons for certain scenarios?) I would like to understand the benefits and implications on each in more detail for someone who wants to start their side business. Thank you!!!

[@Jonnyicey]

Would love to see a video of the tax differences of PAYE, sole trader and ltd company

[@thetifosimsc5231]

Would love to see that video for energy efficient cars please Nischa. Great channel, great advice and now off to download 212.

[@Ken-zs9ur]

Kids should learn your content at school. Thank you for the great content

[@nickd1638]

Don't know if you already have done a video mentioning this, but, what can be offset when you purchase a buy-to-let property via a ltd company?

[@RajSingh-tn5oy]

Hiya love the videos. Pls make a video with pros and cons of off shore acct and energy efficient cars. Keep up the good work

[@WhoCaresWhatIThink]

Amazing insight. I’m going to have to start taking notes. You’re very clear and easy to understand, thank you

[@MrOwen-vn1tn]

Nischa, Great video. You explain everything well. a good speaker with a nice voice.

[@M.J.R83]

I’d love to learn about the process of opening offshore accounts as you mention it’s easy for anybody to do? Please do a video on this if you could that would be very informative. 🙏

[@marlenec1600]

Thanks Nischa. The first video of yours that I’ve watched was about the 9 habits keeping me poor and one advise you gave was to save 10% of my monthly salary as soon as I get my pay check. It made great sense. That way I have money saved right away before all expenses are deducted. I’ve started doing that. Thanks.

[@milkiways1]

In the US, the progressive tax is applicable only to federal income tax. You must pay other fixed-rate taxes (FICA, Medicare, and State) and additional Medicare tax based on the income bracket. This tax rate also dictates the rate on the supplementary allowances (e.g., performance bonus, living, lease, etc.). Income brackets also disqualify one from receiving affordable housing and discount on groceries. So, net income can significantly dip if we are near the intersection of two income brackets.

[@jimmyzheng3377]

GREAT, can you do a video about energy saving cars on tax free savings on these cars as mentioned on this video please?

[@dominicjohnson4066]

Had no idea you can get a pension linked mortgage! Mind blown. Could you do a video covering that?? Love the video

[@ardeq]

Could you make a playlist with all the videos where you talk about how to save money on taxes please 🙏 great one btw🙂

[@mnnaqs]

Thanks Nischa your the best really appreciated... thank you for listening