Reap benefits of being organised

Why saving earlier in the tax year will pay off later

- WARREN SHUTE

The new tax year began on April 6 so this is the perfect time to make the most of your money – and tax breaks.

How much we can earn without paying income tax has remained the same for the 2022/23 at £12,570.

Earn over £12,570 and we pay 20% income tax on the next £37,700 we receive (that figure has also remained the same this year), and after that it is 40% on income up to £150,000. Above that, income is taxed at 45%.

In addition to income tax, we also have to pay national insurance (tax) on our earnings.

There is no national insurance payable on the first £9,880 we make (increased by £312 this year, saving us up to £41.34pa), then we pay 13.25% (an increase from 12%) up to £50,270 (which remains the same) and then 3.25% on income above that.