Oxford News
Surprise HMRC bills as pension rises hit Personal Allowance
The issue comes down to the frozen personal allowance, which remains stuck at £12,570. As the state pension increases each year, it takes up more of that tax free limit.
That leaves less room for any extra income. Even a small private pension or part time earnings could now push some retirees over the threshold and into paying tax for the first time.
Experts warn this “stealth tax” effect is catching more people than expected, as rising incomes collide with frozen thresholds.
Tim Grimsditch, Managing Director at Unbiased, said the increase in the state pension is creating a problem for many people.
“For millions of retirees, the latest increase in the state pension is a double-edged sword.
“While the ‘triple lock’ is doing its job by protecting the value of pensions against inflation, the government’s decision to keep the personal tax allowance frozen at £12,570 is creating a ‘stealth tax’ trap.
“As the state pension rises to meet the cost of living, it is consuming more and more of that tax-free buffer. For many, this means that even a modest private pension or a small amount of part-time work could now result in an unexpected tax bill.
“If you’re unsure, seek help from a professional financial adviser who can help clarify your position, reduce uncertainty, and plan with greater confidence.”
At the same time, savers and workers are being warned they could miss out on up to £1,500 by not using key tax-free allowances before the deadline.
Here are four allowances to check now.
ISA allowance
You can save up to £20,000 per year in an ISA without paying tax on interest, dividends or capital gains.
- Covers Cash ISAs, Stocks and Shares ISAs or a mix
- Returns are completely tax free
- Allowance resets on April 6
For example, £20,000 saved at 5 percent interest could earn £1,000 tax free.
Capital Gains Tax allowance
You can make up to £3,000 in profit from selling assets tax free.
- Applies to shares, crypto and second properties
- Not applicable to your main home
- Tax applies above the threshold
Rates above the allowance are 18 percent for basic rate taxpayers and 24 percent for higher rate taxpayers.
Dividend allowance
If you own shares, you can earn up to £500 in dividends tax free each year.
- Applies to income from investments
- Tax rates depend on your income band
- Allowance has been reduced significantly in recent years
Even small portfolios can exceed this limit, leading to unexpected tax.
Personal savings allowance
You can earn interest on savings tax free depending on your income.
- Basic rate taxpayers get £1,000
- Higher rate taxpayers get £500
- Additional rate taxpayers get no allowance
However, rising interest rates mean more people are now exceeding these limits.
Why more people are paying tax on savings
Frozen thresholds and higher interest rates are pulling more savers into paying tax, a process known as fiscal drag.
For example, £20,000 saved at 4.58 percent earns around £916 in interest each year.
This exceeds the £500 allowance for higher rate taxpayers.
Similar savings in an ISA would be tax free.
Research shows over a third of people have never heard of the personal savings allowance, while billions have been paid in tax unnecessarily over the past decade.
Recommended reading:
What to do before April 5
With the tax year ending soon, acting now could protect your savings and reduce your tax bill.
- Use your full ISA allowance before it resets
- Review savings and investments for unused allowances
- Consider moving savings into tax efficient accounts
- Check if rising income could push you into paying more tax
Financial experts say taking action now can help avoid unexpected bills and make your money work harder.
Oxford News
Britain’s smartest teen gets Oxford University place with 23 A-levels
Mahnoor Cheema, 18, has an IQ of 161 – higher than Stephen Hawking and Albert Einstein – and received an unconditional offer to study medicine at the University of Oxford.
After sitting 34 GCSEs, Ms Cheema, who attended Henrietta Barnett School in north-west London, decided she wanted to study 31 A-levels.
But she settled on doing less, after worries from teachers that she was taking on too much.
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Mahnoor Cheema (Image: SWNS)
She completed four A* in her first two months at the sixth form, and this week learned she had achieved A*s in law and history as well as grades in French and physics, according to the Mail Online.
The teen studied psychology, sociology, law, business, accounting, economics, Latin, German, computer science, film studies, politics, classical civilisation, maths, further maths, geography and media studies, physics, chemistry, biology, English literature, film studies, French, statistics and accounting.
She says she has no regrets and would be “bored and understimulated” if she only did the standard three A-levels – and said burnout is “a choice”.
Speaking previously, the grammar school pupil, from Slough, Berkshire, said: “Absorbing content and analysing and evaluating things comes naturally to me.
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Mahnoor Cheema (Image: SWNS)
“I’m busy, but I don’t take on so much that it’ll cause me stress or pressure – I try to do everything within my capabilities.
“I have loads of interests; that’s why I wanted to do so many subjects – it doesn’t take that much time or effort.
“I think if you have the capability to do more, it should be explored – I would be bored doing only three subjects over two years.
“Burnout is a big thing for some people, but I’m just motivated and driven, and it doesn’t affect me.
“I see burnout as a choice – it’s not burnout if you enjoy what you’re doing.”
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Ms Cheema was born in the UK before moving to Lahore, Pakistan with her parents in 2010.
Her family then moved back to the UK in 2016, and mum Tayyaba Cheema, 44, a full-time mum with a master’s in economics, said Ms Cheema was “quite different” from a young age.
By the age of six, Ms Cheema had read all seven Harry Potter books, and, by 11, had learned the entire Oxford English Dictionary “by heart”.
Ms Cheema, who dreams of doing a TED talk one day, said last year: “I just read the book and it goes into my head.
“I don’t really take notes – I find them to be a waste of time. I don’t think my memory is photographic, but it’s good.”
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Mahnoor Cheema with her parents in their house in Slough (Image: SWNS)
Her favourite subjects were maths and sciences.
Speaking previously, she said: “The main enjoyment for me is studying the subject and the rich knowledge – the exam is just the qualification.
“A big misconception is I’m just an exam robot, but loads of the subjects I do require analysis too.
“For film studies, I have to create a film, edit, write the script. And with English you have to develop your own critical stance.”
READ MORE: Hollywood film director who went to Oxford University dies aged 61
Ms Cheema has an unusual sleep routine, going to bed for three hours after school, getting up at 7pm, and going back to bed at 2am, she said previously.
Tayyaba creates a study timetable for Ms Cheema to keep her on track, making sure she makes time to see friends, travel and enjoy hobbies.
But Tayyaba said there is “no pressure” from her or her husband, Usman Cheema, 49, a barrister, for Ms Cheema to do anything more than what she wants to.
Tayyaba said: “I have given her the choice, I just say ‘whatever you do in life, do it the best you can’.”
Oxford News
Clarkson, May and Hammond in Grand Tour U-turn and return to show
Jeremy Clarkson, James May and Richard Hammond are set to return to Prime Video’s The Grand Tour, according to The Sun.
The three stars, known for presenting BBC’s Top Gear, will join YouTubers Thomas Holland and James Engelsman in series seven, which will debut on September 4.
Jeremy Clarkson, James May and Richard Hammond to make cameo in The Grand Tour reboot as they pass the baton to the new presenting trio (Image: PA)
The petrol enthusiasts are expected to help ensure the show’s reboot gets off to a smooth and welcoming start, according to co-creator and TV producer Andy Wilman.
Mr Wilman, who is also executive producer of Clarkson’s Farm, told The Sun that the guys will do cameos as they “pass that baton on”.
This will be the first time in almost two years the Top Gear originals, who went their own ways professionally, will be seen together, after the final Grand Tour episode aired on September 13, 2024.
Oxford News
Strictly Come Dancing judge opens up on police investigation
The 61-year-old dancer was on holiday in Madrid when he claims to have been stabbed, had jewellery stolen and strip searched for drugs on his way out of Spain.
Speaking on the Judgemental podcast, which he hosts with fellow Strictly judge Anton Du Beke, Mr Revel Horwood said: “I went on holiday in Madrid and got stabbed, that was nice, and it was stinking hot.
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“My jewellery was stolen as well, they ripped my necklace off my neck and gave me a big burn mark…
“It was a razor blade… I was slashed… (in the) stomach coming home from a club, it was probably two o’clock in the morning, but that’s sort of normal, you go out for dinner at 10 or 11.
“But I remember I was dancing at the Lido in Paris, and we went to Madrid for a holiday, so that ended up pretty bad.
“And then when I got back, I got strip-searched. I hadn’t shaved, so I did look a bit of a wreck, I’d been stabbed, I had burn marks all around my neck from where I was, like, attacked.
“And then the French strip searched me down to literally nothing…. they were looking for drugs.”
Revel Horwood went on to say that disaster also struck during a trip to Mombasa in Kenya, where he found out his hotel had burned down when he arrived at the airport.
He added: “I remember flying to Mombasa in Kenya. It was all fabulous, I thought, ‘oh yeah, I’m going on safari, that’s going to be nice’.
“Got out there, arrived, all the hotels and everything were paid for in advance, they’re giving us a like a bus from the airport to the hotel, and they said on arrival, ‘your hotel has burnt down’…
“The hotel was burnt down, and no one bothered to tell us until we actually arrived.
“Anyway, they found us another one, they just shoved us in there, (and) I went on, you know, a very romantic cruise down the River Nile…
“Then the next day we all had to go to the airport and leave all the crews, and one by one, when we’re standing in the queue at the airport, people just were falling to the ground, literally dropping, like boom.”
He went on to say that the sickness was later revealed to be salmonella poisoning from “off chicken” those on the trip had eaten the night before.
Mr Revel Horwood has several links to Oxford, having visited The Jolly Farmers multiple times during his Annie run, earning praise from the owner as being very “charming”.
He has also starred as Miss Hannigan in the production of Annie in April 2023, and directed/choreographed Now That’s What I Call a Musical, slated for March 2025 at the New Theatre.
The new series of Strictly will air on BBC One and iPlayer this September.
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