Senior Citizen Fixed Deposit

4 Ways to Get Ready for Retirement in Your 60s

The right investment done at the right time can benefit you in the later period. From the time we start earning, we try to make our life easier by fulfilling the basic needs of life like buying a house, a regular transit vehicle and other important expenses. In the pursuit of chasing all this, we forget to take the necessary measures that might keep our retirement life balanced. The most common problem people face during their retirement period is the shortage of funds, and a shortage of funds at this point of life can be very daunting. Hence, it is important that you take necessary measures to keep yourself ready for your retirement. Continue Reading

Basic Rate Tax and Other Income Tax Rates in the United Kingdom

Understanding basic rate tax and income taxes in general is important to maintaining your financial health. Knowing how much of your income you are going to be required to put towards your taxes each year is essential in making important financial decisions.

Basic rate tax and other income tax rates are discussed in greater detail below. The information discussed applies to England, Scotland, Wales, and Northern Ireland online trademark registration  Get online trademark registration. Registered trademark in India with ebizfiling. We offers brand trademark registration India, TM Registration. Apply online for Trademark Registration Services in India with 100% Money back guarantee. Call us at +91 8262 990 990, Email at info@ebizfiling.com

Taxable Income

Right off the bat, it is important to clarify the difference between taxable income and total income. Though the two are similar, they are not the same.

All taxpayers in the United Kingdom are given a specific amount of tax-free income. This is often known of as a personal allowance. In addition to a personal allowance, some UK citizens receive additional allowances and other forms of tax reliefs.

Because sorting between taxable income and total income can be complex and challenging, it is recommended by many that you have a financial advisor or financial planner help sort things out for you. Investing in such an expert’s advice and knowledge might cost a little up front but it could save you loads of money and time down the road in the long-run.

BasicRateTax

The most common type of income tax in the United Kingdom is basic rate tax. The cutoff amount for income is £32,010.

Higher Rate Tax

Those that make more than £32,010 in taxable income are required to pay a higher rate on their taxes. This rate is currently set at 40 percent. The higher rate of 40 percent is paid on any income over the £32,010 mark. Income below that is still taxed at the basic rate. The higher rate tax applies to taxable income of up to £150,000 in a single year.

Additional Rate Tax

The United Kingdom’s additional rate tax only applies to those with a taxable income of more than £150,000 per year. If you make more than this, you will have to pay an additional 45 percent on however much you made above this level. Additional rate tax is the highest rate of tax in the UK.

Starting Rate for Savings

Of particular note, especially for those with low incomes, is the starting rate for savings. This is a special tax break provided to those with low incomes. It makes it so that some or all of your income from savings is only taxed at 10 percent.

In the United Kingdom, low income means that you make less money than your personal allowance plus an extra £2,790.

Taxes, income, and income taxes can all be very confusing subjects. Yet they are essential to your financial health. For these reasons, it is important to have a thorough, if basic, understanding of them. Knowing what rate you will be paying on your taxes will help you make sure your finances run smoothly.

Luckily, there is a plethora of additional information on basic tax rates and other income tax rates available online. Educate yourself on this and tax season will be all the easier to cope with.

applying for a Home Loan

Benefits for Women applying for a Home Loan

Around a decade ago, it was unusual for women to take a decision pertaining to finance. Most of the women even the working ones were heavily reliant on men when it came to financial investments such as insurance, investment and taxation. The only form of investment in which women actively used to take part was buying gold. However, the investment landscape has changed in recent years. Back to back initiatives taken by the ruling governments to encourage women to invest in financial sectors has paid off.

More women are inclined towards investing and making the decision independently. The situation has changed considerably, and women nowadays are open to taking risks and investing in not just financial market but real estate market as well. To encourage it even further, financial institutions are offering exclusive benefits to women to enhance their involvement. Among the benefits that are being offered to women, here are several outlining ones:

Rate of Interest:

When applying for a Home Loan, the rate of interest is considered to be one of the most pivotal factors. The interest rate differs from lender to lender, and almost every lender is providing benefits to borrowers who are women. Most of the financial institutions provide a discount of 0.05% interest to benefit women Home Loan borrower. The percentage might look pretty small, however, when it is compared to the bigger picture, it plays a significant role. The cost of the property is quite high, and even a number such as 0.05% makes a massive difference. Due of the lower interest rate, the EMI will be less and so will the financial burden when it comes to monthly repayment.

Concessions:

Every transaction related to property requires an investor to pay Stamp Duty charges to the State Government. It is one of the money components which differ from state to state. The amount that has to be paid is decided by the State Government. Government initiatives that help and encourage women investors include charging lower stamp duty rate when she opts to buy property as a sole borrower. The rate of interest that is charged by the government is 1-2% lower than the usual Stamp Duty rate. Apart from that, even if co-borrowing is opted for, discounts can still be availed.

Smooth Loan:

The loan process is same for both male and female applicants. It is a fixed process which involves the applicant to check eligibility and clear it. Once that is done, then he/she can avail a Home Loan. To ensure that this process passes smoothly, the borrower has to submit all the essential documents and identity proofs. Apart from this, a satisfactory credit score is essential. One thing which is noteworthy is that the ratio of women applications getting rejected is way less than men. It is mainly because women are more successful in repaying the Home Loans as compared to male counterparts.

Digitization:

The process of digitisation of financial services has made borrowing a Home Loan quite comfortable. The online service helps women to apply for a Home Loan as per their convenience. Thus, the process is no longer physically daunting.

Tax Benefits:

A woman, Home Loan applicant, can avail tax deduction of INR 2 lakhs. As per the Budget 2017, a woman borrower can claim a tax deduction on interest earned. Apart from that, if a Home Loan is co-borrowed between the married couple, then both of them can enjoy tax benefits on Home Loan. Opting for co-borrowing is a wise choice as it helps to share the burden of debt.

These are few of the factors that a woman Home Loan buyer shall consider to make the most out of it.