Latest news with #HollyMead
The Sun
6 days ago
- Business
- The Sun
20 stocks to buy TODAY that investment experts are banking on to make them rich this year – and 5 to avoid
KNOWING where to invest your cash is difficult as there are thousands of companies to choose from. That's why Holly Mead, a financial journalist with 14 years' experience, spoke to investing experts to reveal the top 20 stocks they are banking on to make them rich this year - and the five to avoid. 27 Choosing individual stocks can be riskier than an investment fund, where an expert manager picks for you, usually spreading your cash across dozens of companies they think will do well. This helps to spread your risk as your eggs are not all in one basket. But putting a small portion of your money in individual shares can be exciting - and profitable, if you pick the right ones. You should always do your research first and be prepared to invest for at least three to five years - and remember there could be ups and downs along the way. Just because a stock has done well recently, there is no guarantee it will continue to do so. Similarly, stocks that have fallen are not always to be avoided, as long as you think they could bounce back. You should always make sure you have enough - around three months' salary - in cash savings that you can access, before you start thinking about investing. We asked experts about the stocks they are banking on to make them rich while explaining why and what a £50 investment five years ago would equal now. But it's worth bearing in mind that it's the future performance that will determine how much your cash could increase by. The 20 stocks to buy Investment experts have revealed their top stock picks they hope will make them rich this year. Airbus 27 Airbus makes some of the world's biggest passenger aeroplanes. Appetite for travel remains strong and the company has an 'enormous orderbook that provides a long runway for growth', says Derren Nathan, head of equity analysis at Hargreaves Lansdown. However, potential obstacles include supply chain issues and trade tariffs. Shares are up 33% over the past year, and £50 invested five years ago would have grown to £127.50. Amadeus 27 A booking platform for the hotel and airline industries, Amadeus has been investing in its business to gain an edge over its rivals, says Marcel Stötzel, co-portfolio manager of the Fidelity European Fund. The company, headquartered in Madrid, reported a 12.3% increase in profit to €727 million in the first half of the year. Shares are up 27.4% over one year, and £50 invested five years ago would have grown to about £79. What are the risks? BEFORE you start investing, you need to understand the risks. The return you make will depend on how much you invest and where. As we have seen recently, the stock market can dramatically fall. The American stock market recently saw its biggest drop since the start of the Covid pandemic after US President Donald Trump announced plans to introduce punitive tariffs on goods imported to the US from other countries. The UK's own stock market, the FTSE 100, fell by more than 10 per cent after the news. You must be prepared to lose it all - so only invest money you can afford to sacrifice. You need to be willing to invest cash for at least five years to mitigate any dips and allow your money to recover. If you can't afford to lock up your money for this long, investing may not be right for you. It's usually better to drip feed money into your investments instead of putting down a big chunk of money in one go. ASML 27 European company ASML specialises in semiconductor manufacturing equipment, making it 'virtually indispensable to the global chip industry', says Chris Beauchamp, chief market analyst at IG. The firm is an industry leader and has a substantial pipeline of orders from customers well into the future, he says, with demand for chips showing no signs of slowing. Shares are down 19% over the past year, but £50 invested five years ago would have grown to £93.20. Barclays 27 Falling interest rates and a struggling UK economy can impact banks' profits, but Ed Smith, co-chief investment officer of Rathbones Investment Management, thinks Barclays offers the best combination of profitability and share price valuation of all UK banks. 'Barclays has been on a tear lately, and its one-year performance is almost double the Magnificent Seven," he says. "It reported strong results in the first half of the year, with a substantial increase in profitability." Magnificent Seven refers to the seven largest tech companies, which are: Alphabet (parent company of Google), Amazon, Apple, Meta Platforms (parent company of Facebook and Instagram), Microsoft, Nvidia, and Elon Musk's Tesla. Shares in Barclays are up 75% over the past year, and £50 invested five years ago would have grown to £174. Constellation Energy Constellation is the largest nuclear operator in the US and Lale Akoner, global market analyst at eToro, thinks the company will benefit from the changing way that energy is produced and consumed. 'It stands out as a critical player in meeting America's rising power demand, especially from AI-driven data centres,' she says. 'The company is already cutting deals with major tech giants to keep their server farms running, securing profitable, multi-year contracts.' Shares are up 86.5% over the past year. Over five years, a £50 investment would have grown to £444. Croda 27 A speciality chemicals firm that has struggled in recent years, and lately because of trade tariffs worries. Croda makes ingredients used in everything from deodorants and shower gel to agricultural products and paints. But Derren Nathan says concerns have been 'overplayed' and now could be a good time to buy shares in a 'quality business with a focused strategy'. Shares are down 32% over the past year, and £50 invested five years ago would have fallen to £22.50. Diageo 27 Drinks companies like Diageo soared during Covid, when more people were drinking at home, but sales have since tailed off, particularly as younger generations are drinking less. But Russ Mould, investment director at AJ Bell, likes Diageo's stable of established brands, which include Guinness, Bailey's and Smirnoff. Although with the hunt for a new CEO underway, and the chance of a takeover, it could be a bumpy ride, he warns. Shares are down almost 18% over one year. £50 invested five years ago would now be worth £38. Formerly known as GlaxoSmithKline, this is one of the world's biggest pharmaceutical companies. Michael Field, strategist at Morningstar, says the firm has been in the doghouse with investors for a while, but thinks its strong pipeline of new drugs should see sales grow. It's also a reliable dividend payer (where the company returns a share of profits to investors), which is appealing to many. Shares are down 8.8% over the past year, and £50 invested five years ago would be worth about £44 today. Hikma Pharmaceutical 27 Shares in this global leader in medicines are down a quarter from their all-time high four years ago because of concerns about regulation in America, where Hikma generates about two thirds of its business. But the firm is on track to grow its sales, says Russ Mould, and develop new medicines, potentially in the popular anti-obesity drug market. Shares are up 5% over the past year, but if you'd invested £50 five years ago, you'd be down to £39.85. Informa 27 This FTSE 100 company provides businesses with services such as content, research and specialist events. As well as providing large exhibitions, Giles Parkinson, head of equities at TrinityBridge, likes that the company has also adapted to the online age. Shares are up 9.6% over the past year. Over five years, a £50 investment would have grown to £110.50 'People think you're rich if you invest, but that's not true' MARTHA Burns gradually turned an initial £100 investment into the stock market into a healthy £2,200 sized pot in two years. She was inspired after watching YouTube videos about how to get started investing, and dipped her toes into the world of investing in June 2023. 'I have always saved and made sure I had enough for a rainy day, but I wanted my money to grow,' she said. Martha, 39, who lives in Bermondsey, London, opened an account with investment firm Vanguard and set up a direct debit to invest £100 a month. She chose the Vanguard US Equity Index fund, which tracks more than 3,500 American companies. It would have grown a £1,000 investment to £2,172 over five years. 'I wanted to invest in America because it is the most important economy in the world. I knew it had performed well and believe it will continue to do so,' said Martha, a comedian. She selected Vanguard after reading positive reviews about the company and seeing it had low fees. It charges £4 a month for a Stocks and Shares Isa plus her fund fee of 0.1 per cent. She plans to leave her money invested for at least 20 years and hopes she will be able to invest more in the future. In less than two years, Martha's pot has grown to more than £2,200. 'The moment you mention that you invest, people assume you are secretly loaded, but that is not the case. "You can start with a small amount and it is easier than you think,' said Martha. Kering 27 If you can't afford your own Gucci handbag, you could buy shares in the firm that makes them. Luxury goods companies have struggled in recent years, but Michael Field thinks there that Kering shares could improve as demand for its products picks up. Its other brands include Yves Saint Laurent and Balenciaga. Shares are down 19% over the past year, and £50 invested five years ago would be worth £21.50 today. Kone 27 Based in Finland, Kone manufactures lifts, including for major sites such as London Underground, the Shard and the CITIC tower in Beijing. Its maintenance arm delivers most of the profits, says Marcel Stötzel, with Kone responsible for about 1.7 million lifts across the globe. 'This maintenance business is regulated, providing greater stability and visibility of returns over time across different macroeconomic scenarios,' he adds. Shares are up 16% over one year. Over five years, a £50 investment would have fallen to £38. Legal and General 27 L&G is one of the UK's leading workplace pensions and annuities companies - areas set to grow as more people save more money for retirement. Russ Mould likes that the stock pays a reliable dividend and says shares could rise under the leadership of Anotnio Simoes, who took over as CEO last year. Shares are up 18% over one year. £50 invested five years ago would now be worth £56.45. London Stock Exchange Group 27 The company behind the infrastructure for the UK's stock market, LSEG is a world leader in financial data and technology. Derren Nathan thinks it is 'well placed to benefit from growing trends around the electronification of trading' in the long-term. Shares are up 3.9% over the past year. A £50 investment five years ago would have grown to about £57. Meta 27 A recent quarterly update from the Facebook owner showed sales were up 22% and profits by 38%, as the firm continues to launch new tools and embrace artificial intelligence. 'Revenue and earnings momentum remained strong, with robust top-line and margin growth,' says Smith. 'That update highlighted why we continue to like this stock.' Shares are up 54% over one year. If you had invested £50 five years ago, you'd now have about £142. Microsoft 27 Microsoft is embedded as the go-to operating system for millions of computers across the world. Now its expansion into artificial intelligence is providing opportunities for further growth. Giles Parkinson says its 'entrenched incumbency' as a software provider makes it a solid choice. Shares are up 32% over the past year, and £50 invested five years ago would now be worth £124. NextEra Energy 27 This company supplies renewable energy across America, and its rapid expansion in wind, solar and battery storage makes it well positioned for the energy transition, says Chris Beauchamp. He calls it a 'standout pick' in the utilities space, which also pays a reliable dividend. Shares are down 7.5% over the past year. £50 invested five years ago would be worth £49.50. Rheinmetall 27 Defence company Rheinmetall makes everything from weapons and ammunition to armoured vehicles and training systems. Based in Germany, its shares have had 'an amazing run over the last year or two', says Michael Field, but could rise further as European governments look to plough more cash into defence. Shares have soared 262% in the past year. £50 invested five years ago would be worth a massive £1,097. S&U 27 This specialist lender, which focuses on property bridging loans and car finance, has seen three consecutive years of falling annual profits. Higher interest rates, a rise in defaults and regulatory pressures are concerns. But the recent Supreme Court ruling on car finance could lift a cloud and tempt investors back to the stock, says Russ Mould. Shares are up 2.6% over the past year. £50 invested five years ago would today be worth about £61. Snowflake Snowflake is a cloud-based data warehouse that helps companies manage their data and run their AI models. 'After a quiet patch earlier this year, businesses are spending on AI again and we see Snowflake as a key player,' says Lale Akoner. She thinks investors should look beyond the big household AI names to software companies that help companies build and deploy their AI tools. Shares are up 79% over the past year. £50 invested five years ago would have fallen to £43. The five stocks to avoid Here are the five stocks and shares that aren't worth investing in. Arm Holdings 27 Europe's answer to Nvidia, the world's biggest chip-maker, Michael Field believes the shares are only worth half of what they currently trade for. 'The company is also very dependent on China for sales, which represents a material risk,' he says. Shares are up 21% over the past year, and £50 invested five years ago would be worth £113 today - maybe time to take some of those profits. Air France-KLM 27 The big legacy airlines have a reputation for better service, but Michael Field thinks low-cost competitors could chip away at their market share. Air France-KLM operates the national carriers for France and the Netherlands. 'After a strong run, we believe these shares are now expensive,' he says. Shares are up 62% over one year. If you'd invested £50 five years ago, you'd now have about £32.50. Burberry 27 The fashion brand known for its iconic check has been one of the worst performers on the FTSE 350 in recent years. Chris Beauchamp says: 'Burberry was caught between weak demand in key Asian markets, particularly China, and heightened competition globally.' With retail spending still in the doldrums and profit margins under pressure, he is not confident things will improve. Shares are up 82% over the past year, but £50 invested five years ago would be now be worth £48.50 Chevron 27 Giles Parkinson is pessimistic about the oil price, and thinks there is too much supply for current demand. This could impact companies in the energy sector, which could see profits hit. However, he adds that firms such as Chevron tend to be 'defensive', meaning they do well at times of economic turmoil, so could recover if there were a global recession. Shares are up 7.8% over the past year. £50 invested five years ago would now be worth about £89. Gamestop Gamestop is a US retailer selling video games and electronics. It rose to fame in the Covid lockdown as a so-called meme stock, with share price surges based 'more on hype than performance', says Lale Akoner. She says revenues have continued to shrink since then and profits remain elusive. 'With no strong turnaround plan and ongoing leadership uncertainty, it's more of a meme-fuelled rollercoaster than a long-term investment,' she adds. Shares are up 6.2% over one year. A £50 investment would have grown to £1,086 over five years. Three things to always remember when investing Ben Kumar, head of equity strategy at the wealth manager 7IM, says: 1. There is no right way to invest "We all have different views on things, and that's true in investing too. "The key is to be clear on your reasons for investing: that could be because you like the company's ethos, you know about the sector, or because it pays a dividend." 2. You will get things wrong "Even the best investors make bad choices. "What's important is how you behave after that happens - keep calm, take stock, do your research, and try to decide whether it will recover and you should stick it out, or whether it's time to cut your losses. 3. Enjoy it "Stock investing is risky, but that is also what makes it exciting. "There is a real buzz about having the chance to own a piece of a business that is doing well."
The Sun
04-08-2025
- Business
- The Sun
Ten legal ways to pay less tax including the saving method that's free and easy – and our tips could save YOU £1,000s
NO ONE likes handing over their hard-earned money to the taxman - but could you be giving away too much? You don't need to be rich to cut your tax bill as there are plenty of tricks to reduce how much you pay now, regardless of your income. Top money journalist Holly Mead explains how. 4 4 We all know tax evasion is a crime, but there are many legal ways to keep more of your well-earned money. If you are an average earner with an income of less than £50,270 then you could save £2,700 a year with our tips. Or if you're lucky enough to earn more than this, then our tricks can save you £2,912 annually on cars and childcare. Plus, if you've been lucky in love, then you could make use of a little-known loophole to save £252. Read on to find out ten ways you can cut your tax bill NOW as we share our top tips to get started. Average earners Become a savvy saver Many people don't realise they may need to pay tax on the interest they earn from their savings. Basic rate taxpayers get an annual savings allowance of £1,000, but if you earn more interest than that, you'll pay your usual rate of income tax on it. That means someone with £20,000 in savings earning 5% interest would reach the limit. Meanwhile, for higher-rate taxpayers, the allowance drops to £500. But lower earners get a £5,000 allowance, called the starting rate for savings, so if one person in your household earns below £12,570, then you should take advantage of this. At that rate, you could have a massive £100,000 in savings before you'd bust the limit. Avoiding paying 20% tax on that extra £4,000 of savings could save you £800. For every £1 you earn above £12,570, you lose £1 of this extra savings allowance. Meanwhile, the allowance disappears completely once you earn £17,570. How much do I have to give the taxman? EVERYONE in the UK has a personal allowance, which means they can earn £12,570 each tax year before paying any income tax. The tax year runs from April 6 to April 5. You pay income tax at 20% on any money that you earn between £12,571 and £50,270. This is known as the basic rate. On earnings between £50,271 and £125,140 you pay 40%, which is called the higher rate. Meanwhile, the additional tax band is currently fixed at £125,140, beyond which any earnings are taxed at 45%. The tax applies to your salary and any income you earn on savings and investments (unless they are in an Isa) or from a buy-to-let property. Income tax bands are frozen until April 2028 but wages have continued to rise, which means you are probably paying more tax than you used to. This could get even worse, with tax rises expected to come in the Autumn Budget. A higher tax bill coupled with a rising cost of living means even less money in your pocket. That's why it is important to make sure you are using all of the legitimate loopholes that can help you pay less tax. Sarah Pennells, head of financial capability at Royal London, said: 'Ultimately, tax can be confusing. Our research found that 37% of people had received higher tax bills than they had expected in the past.' 'Being aware of the different cliff edges, tax charges and allowances is important. Small changes could make a big difference.' Laura Suter, director of personal finance at AJ Bell, said: 'This trick is particularly handy for couples where one has a low income, but as a household they have a decent amount in savings.' Potential saving: £800 Get a flatmate If you have a spare room at home, you can earn up to £7,500 a year by renting it out without paying any tax. For a basic rate taxpayer, that would mean a saving of £1,500 on that income. Meanwhile, a higher-rate taxpayer would save a whopping £3,000. The government's rent-a-room scheme is designed to encourage people to rent out spare space, increasing the number of rooms available for those who need them. The room needs to be fully furnished to qualify, and you don't need to own your home to use this tax break. If you are renting, then check your rental agreement before you look for a tenant. If you earn more than £7,500 from renting in a year, you need to declare it on a self-assessment tax return. Bear in mind that this allowance is per household, not per individual, so if you're in a couple, you effectively get £3,750 each. Potential saving: £1,500 I've saved thousands with a five minute trick MUM-OF-TWO Karen Simpson has saved thousands of pounds by boosting her pension contributions to reduce her tax bill. The 43-year-old, from Inverness, said paying more into her pension has helped her to avoid tipping into the 40% higher-rate income tax bracket. The busy mum said that doing this has saved her thousands of pounds in tax. Karen, who runs tutoring company My Primary and Secondary Tutor, said: 'A few years ago, I didn't even have a pension and now I'm paying between £18,000 and £25,000 into it each year." Although increasing her pension contributions means Karen has less money now, she said she doesn't need the extra income right away. As a result, she's happy to lock the cash away in her self-invested personal pension until she can access it when she is 55. Karen said: "When you're self-employed, you need to save as much of your money as you can and look for the loopholes. "Otherwise, it feels like they want more from you at every turn." Karen has maxed out her £20,000 Isa allowance this year after hearing rumours that it could be cut in the Autumn Budget. She has also cut her tax bill by donating to charity, selling items on eBay and Facebook Marketplace. Meanwhile, when she was on maternity leave, she made use of the marriage allowance. Karen said: 'As soon as you hit the 40% income tax bracket, it feels as though you're giving your money away. "Taking these steps makes a significant difference.' Start a side hustle If you have a hobby or side business, you can make extra income tax-free. Everyone gets a trading allowance, which lets them earn up to £1,000 from a side hustle without paying any tax. This could be from tutoring, selling arts and crafts or dog-sitting. On top of this, you also get a property allowance of £1,000 for income earned from your home, including renting out your driveway or garage. Maxing out both allowances would save you £400 in tax on the extra income. Potential saving: £400 Higher earners Give yourself a pay cut Just got a pay rise? Congratulations! But if your new salary means you are now a higher-rate taxpayer, you might want to reduce your pay. This is because you'll pay 40% tax on every £1 earned above £50,270. Meanwhile, parents earning above £60,000 face an added blow because they start to lose their child benefit. If you can afford to, putting more money into your pension can help in both of these cases. For example, if you earned £55,000, you would pay 40% tax on £4,730 of that, giving you a take-home pay of £42,457 a year (assuming no deductions), and a total income tax bill of £9,432. Instead, if you put that £4,730 into a pension, you would have take-home pay of £39,619 and pay £7,540 income tax. Although your take-home pay is £2,838 lower, you'll have saved £1,892 in tax. Plus, by doing this, you've put thousands of pounds into a pension which can grow over time and help give you a comfortable retirement. If that £4,730 grew at 6% a year, after ten years it could be worth £8,606. Robert Salter, director at the accountancy Blick Rothenberg, says: 'Topping up your pension is a prime way to potentially reduce your tax bill and, equally importantly, save for retirement.' Potential saving: £1,892 Make work pay Salary sacrifice is where you agree to a lower salary in exchange for certain workplace benefits. This can help workers on the cusp of the 40% income tax band bring their salary back into the lower tax band. Cycle-to-work schemes are one option, says Chris Etherington, a private client partner at accountancy RSM UK. This is where you purchase a bike through your employer. The purchase is considered 'gross', meaning before tax, so you effectively save the tax on the cost of the bike. How do I check my tax code? YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app. To log in, visit If you have one, you can also check it on a "Tax Code Notice" letter from HMRC. Bear in mind that you might need your Government Gateway ID and password to hand to log in. But if you don't have this you can use your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) A payslip from the last three months or a P60 from your employer for the last tax year Details of a tax credit claim if you have made one Details from a self assessment tax return (in the last two years) if you made one Information held on your credit record if you have one (such as loans, credit cards or mortgages) With the electric car scheme, some employers let you lease an electric vehicle (EV) through the company, so you don't pay tax on the monthly payment. For example, if the lease was £300 a month, a basic rate taxpayer would save £60 in tax on it. 'Cycle to work schemes can be an effective, albeit modest, way to reduce commuting costs and your taxable income,' says Etherington. 'Electric car schemes offer significant savings on income tax and make EVs more accessible to middle earners.' Potential saving: £720 (on a £300 monthly lease) Make your money work for you Around 822,000 savings accounts are set to earn more than £1,000 in interest this year, according to Paragon Bank. This means a surprise tax bill could be on the way for these savers. The easiest way to avoid paying tax on your savings is with an Isa. You can put up to £20,000 a year into these accounts and any gains you make are tax-free. A basic rate taxpayer with savings of £25,000 earning 5%, would make £1,250 in interest and pay tax on £250 of this - £50. A higher rate payer would pay 40% tax on £750 of this interest - a tax bill of £300. But if you put the money into an Isa there would be no tax bill. Andrew Wright, head of savings at Paragon Bank, said: 'Many savers have had a great return on their savings but could ultimately breach their personal savings allowance as a result. "Review your accounts and make the most of other products such as cash Isas.' Potential saving: £300 Married couples Team up with your spouse If one of you earns less than £12,570 a year and the other earns less than £50,270, you can take advantage of the marriage allowance. This lets the lower earner transfer 10% of their £12,570 personal allowance to their spouse - which works out at £1,260. Do I need to pay tax on my side hustle income? MANY people feeling strapped for cash are boosting their bank balance with a side hustle. The good news is, there are plenty of simple ways to earn some additional income - but you need to know the rules. When you're employed the company you work for takes the tax from your earnings and pays HMRC so you don't have to. But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves. Stephen Moor, head of employment at law firm Ashfords, said: "Caution should be taken if you're earning an additional income, as this is likely to be taxable. "The side hustle could be treated as taxable trading income, which can include providing services or selling products." You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you'll usually need to pay tax. Stephen added: "You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax. "The applicable tax bands and the amount of tax you need to pay will depend on your income." If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe - plus extra fees on top. This effectively boosts your spouse's personal allowance to £13,830, and so saves them £252 in tax a year. Good news if you've not heard this tip before: you can backdate it by four years and potentially save £1,008. An estimated 2million people who are eligible for this tax break are not claiming it - check if you qualify using the government's calculator: Potential saving: £252 Save money on childcare Families can claim up to £2,000 from the government to help with childcare costs through a lesser-known savings scheme. You can put up to £500 into a tax-free childcare account every three months, and for every £8 you pay in, the government will add £2. The cash can be used to pay your nursery or childminder. To claim, both parents must be working and earn at least the minimum wage for a minimum of 16 hours a week. You have until the September after your child turns 11 to claim and spend the money. Those with a disabled child can claim up to £4,000 a year, and have until they are 16 to claim it. Potential saving: £2,000 (or £4,000 for parents of disabled children) Split the bill Sharing your savings and other assets could half your tax bill. For example, if you have savings in a joint account then each person's savings allowance is applied before tax is paid - even if one person didn't contribute any of the savings. That means you can earn £2,000 in interest tax-free, rather than the usual £1,000, as long as you are both basic rate taxpayers. Robert Salter says: 'If a bank savings account is in both partners' names, the interest is taxable on a 50/50 basis. If one person pays tax or a higher rate of tax, and the other doesn't, it may be better to have the savings in the name of the lower-earning spouse.' This also works if you own a buy-to-let property. If the property is in both partner's names then you share the tax you owe on the rental income, and could reduce your bill by having it in the lower earning spouse's name. This is also useful when you sell the property as you can use each person's annual capital gains tax (CGT) allowance on any profits before paying tax. Currently, individuals get a CGT allowance of £3,000 a year, and after that you pay 18% tax (or 24% for higher rate payers). For example, if you bought a property for £150,000 and sold it for £200,000, you would need to pay tax on the £50,000 profit. After deducting the £3,000 CGT allowance, that would mean paying 18% tax on £47,000, which is £8,460. But if the property were held in two people's names, you would subtract each person's CGT allowance. You would pay 18% on £44,000, which would mean your tax bill is £7,920.
Scottish Sun
04-08-2025
- Business
- Scottish Sun
Ten legal ways to pay less tax including the saving method that's free and easy – and our tips could save YOU £1,000s
Karen Simpson used a five-minute trick to shave thousands of pounds off her tax bill. Plus, how a little-known loophole could save you £250 TAXING TIMES Ten legal ways to pay less tax including the saving method that's free and easy – and our tips could save YOU £1,000s NO ONE likes handing over their hard-earned money to the taxman - but could you be giving away too much? You don't need to be rich to cut your tax bill as there are plenty of tricks to reduce how much you pay now, regardless of your income. Top money journalist Holly Mead explains how. Advertisement 4 We reveal how you can legally pay less tax and keep more of your earnings Credit: Getty 4 Starting a side hustle could help you to pay less tax by using a key loophole Credit: Getty 4 Plus if you are married then you could save money through a tax perk Credit: Alamy 4 We all know tax evasion is a crime, but there are many legal ways to keep more of your well-earned money. Advertisement If you are an average earner with an income of less than £50,270 then you could save £2,700 a year with our tips. Or if you're lucky enough to earn more than this, then our tricks can save you £2,912 annually on cars and childcare. Plus, if you've been lucky in love, then you could make use of a little-known loophole to save £252. Read on to find out ten ways you can cut your tax bill NOW as we share our top tips to get started. Average earners Become a savvy saver Many people don't realise they may need to pay tax on the interest they earn from their savings. Advertisement Basic rate taxpayers get an annual savings allowance of £1,000, but if you earn more interest than that, you'll pay your usual rate of income tax on it. That means someone with £20,000 in savings earning 5% interest would reach the limit. Meanwhile, for higher-rate taxpayers, the allowance drops to £500. But lower earners get a £5,000 allowance, called the starting rate for savings, so if one person in your household earns below £12,570, then you should take advantage of this. At that rate, you could have a massive £100,000 in savings before you'd bust the limit. Advertisement Avoiding paying 20% tax on that extra £4,000 of savings could save you £800. For every £1 you earn above £12,570, you lose £1 of this extra savings allowance. Meanwhile, the allowance disappears completely once you earn £17,570. How much do I have to give the taxman? EVERYONE in the UK has a personal allowance, which means they can earn £12,570 each tax year before paying any income tax. The tax year runs from April 6 to April 5. You pay income tax at 20% on any money that you earn between £12,571 and £50,270. This is known as the basic rate. On earnings between £50,271 and £125,140 you pay 40%, which is called the higher rate. Meanwhile, the additional tax band is currently fixed at £125,140, beyond which any earnings are taxed at 45%. The tax applies to your salary and any income you earn on savings and investments (unless they are in an Isa) or from a buy-to-let property. Income tax bands are frozen until April 2028 but wages have continued to rise, which means you are probably paying more tax than you used to. This could get even worse, with tax rises expected to come in the Autumn Budget. A higher tax bill coupled with a rising cost of living means even less money in your pocket. That's why it is important to make sure you are using all of the legitimate loopholes that can help you pay less tax. Sarah Pennells, head of financial capability at Royal London, said: 'Ultimately, tax can be confusing. Our research found that 37% of people had received higher tax bills than they had expected in the past.' 'Being aware of the different cliff edges, tax charges and allowances is important. Small changes could make a big difference.' Laura Suter, director of personal finance at AJ Bell, said: 'This trick is particularly handy for couples where one has a low income, but as a household they have a decent amount in savings.' Potential saving: £800 Advertisement Get a flatmate If you have a spare room at home, you can earn up to £7,500 a year by renting it out without paying any tax. For a basic rate taxpayer, that would mean a saving of £1,500 on that income. Meanwhile, a higher-rate taxpayer would save a whopping £3,000. The government's rent-a-room scheme is designed to encourage people to rent out spare space, increasing the number of rooms available for those who need them. The room needs to be fully furnished to qualify, and you don't need to own your home to use this tax break. Advertisement If you are renting, then check your rental agreement before you look for a tenant. If you earn more than £7,500 from renting in a year, you need to declare it on a self-assessment tax return. Bear in mind that this allowance is per household, not per individual, so if you're in a couple, you effectively get £3,750 each. Potential saving: £1,500 I've saved thousands with a five minute trick MUM-OF-TWO Karen Simpson has saved thousands of pounds by boosting her pension contributions to reduce her tax bill. The 43-year-old, from Inverness, said paying more into her pension has helped her to avoid tipping into the 40% higher-rate income tax bracket. The busy mum said that doing this has saved her thousands of pounds in tax. Karen, who runs tutoring company My Primary and Secondary Tutor, said: 'A few years ago, I didn't even have a pension and now I'm paying between £18,000 and £25,000 into it each year." Although increasing her pension contributions means Karen has less money now, she said she doesn't need the extra income right away. As a result, she's happy to lock the cash away in her self-invested personal pension until she can access it when she is 55. Karen said: "When you're self-employed, you need to save as much of your money as you can and look for the loopholes. "Otherwise, it feels like they want more from you at every turn." Karen has maxed out her £20,000 Isa allowance this year after hearing rumours that it could be cut in the Autumn Budget. She has also cut her tax bill by donating to charity, selling items on eBay and Facebook Marketplace. Meanwhile, when she was on maternity leave, she made use of the marriage allowance. Karen said: 'As soon as you hit the 40% income tax bracket, it feels as though you're giving your money away. "Taking these steps makes a significant difference.' Start a side hustle If you have a hobby or side business, you can make extra income tax-free. Advertisement Everyone gets a trading allowance, which lets them earn up to £1,000 from a side hustle without paying any tax. This could be from tutoring, selling arts and crafts or dog-sitting. On top of this, you also get a property allowance of £1,000 for income earned from your home, including renting out your driveway or garage. Maxing out both allowances would save you £400 in tax on the extra income. Potential saving: £400 Advertisement Higher earners Give yourself a pay cut Just got a pay rise? Congratulations! But if your new salary means you are now a higher-rate taxpayer, you might want to reduce your pay. This is because you'll pay 40% tax on every £1 earned above £50,270. Meanwhile, parents earning above £60,000 face an added blow because they start to lose their child benefit. If you can afford to, putting more money into your pension can help in both of these cases. Advertisement For example, if you earned £55,000, you would pay 40% tax on £4,730 of that, giving you a take-home pay of £42,457 a year (assuming no deductions), and a total income tax bill of £9,432. Instead, if you put that £4,730 into a pension, you would have take-home pay of £39,619 and pay £7,540 income tax. Although your take-home pay is £2,838 lower, you'll have saved £1,892 in tax. Plus, by doing this, you've put thousands of pounds into a pension which can grow over time and help give you a comfortable retirement. If that £4,730 grew at 6% a year, after ten years it could be worth £8,606. Advertisement Robert Salter, director at the accountancy Blick Rothenberg, says: 'Topping up your pension is a prime way to potentially reduce your tax bill and, equally importantly, save for retirement.' Potential saving: £1,892 Make work pay Salary sacrifice is where you agree to a lower salary in exchange for certain workplace benefits. This can help workers on the cusp of the 40% income tax band bring their salary back into the lower tax band. Cycle-to-work schemes are one option, says Chris Etherington, a private client partner at accountancy RSM UK. Advertisement This is where you purchase a bike through your employer. The purchase is considered 'gross', meaning before tax, so you effectively save the tax on the cost of the bike. How do I check my tax code? YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app. To log in, visit If you have one, you can also check it on a "Tax Code Notice" letter from HMRC. Bear in mind that you might need your Government Gateway ID and password to hand to log in. But if you don't have this you can use your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) A payslip from the last three months or a P60 from your employer for the last tax year Details of a tax credit claim if you have made one Details from a self assessment tax return (in the last two years) if you made one Information held on your credit record if you have one (such as loans, credit cards or mortgages) With the electric car scheme, some employers let you lease an electric vehicle (EV) through the company, so you don't pay tax on the monthly payment. For example, if the lease was £300 a month, a basic rate taxpayer would save £60 in tax on it. 'Cycle to work schemes can be an effective, albeit modest, way to reduce commuting costs and your taxable income,' says Etherington. Advertisement 'Electric car schemes offer significant savings on income tax and make EVs more accessible to middle earners.' Potential saving: £720 (on a £300 monthly lease) Make your money work for you Around 822,000 savings accounts are set to earn more than £1,000 in interest this year, according to Paragon Bank. This means a surprise tax bill could be on the way for these savers. The easiest way to avoid paying tax on your savings is with an Isa. Advertisement You can put up to £20,000 a year into these accounts and any gains you make are tax-free. A basic rate taxpayer with savings of £25,000 earning 5%, would make £1,250 in interest and pay tax on £250 of this - £50. A higher rate payer would pay 40% tax on £750 of this interest - a tax bill of £300. But if you put the money into an Isa there would be no tax bill. Andrew Wright, head of savings at Paragon Bank, said: 'Many savers have had a great return on their savings but could ultimately breach their personal savings allowance as a result. Advertisement "Review your accounts and make the most of other products such as cash Isas.' Potential saving: £300 Married couples Team up with your spouse If one of you earns less than £12,570 a year and the other earns less than £50,270, you can take advantage of the marriage allowance. This lets the lower earner transfer 10% of their £12,570 personal allowance to their spouse - which works out at £1,260. Do I need to pay tax on my side hustle income? MANY people feeling strapped for cash are boosting their bank balance with a side hustle. The good news is, there are plenty of simple ways to earn some additional income - but you need to know the rules. When you're employed the company you work for takes the tax from your earnings and pays HMRC so you don't have to. But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves. Stephen Moor, head of employment at law firm Ashfords, said: "Caution should be taken if you're earning an additional income, as this is likely to be taxable. "The side hustle could be treated as taxable trading income, which can include providing services or selling products." You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you'll usually need to pay tax. Stephen added: "You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax. "The applicable tax bands and the amount of tax you need to pay will depend on your income." If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe - plus extra fees on top. This effectively boosts your spouse's personal allowance to £13,830, and so saves them £252 in tax a year. Advertisement Good news if you've not heard this tip before: you can backdate it by four years and potentially save £1,008. An estimated 2million people who are eligible for this tax break are not claiming it - check if you qualify using the government's calculator: Potential saving: £252 Save money on childcare Families can claim up to £2,000 from the government to help with childcare costs through a lesser-known savings scheme. You can put up to £500 into a tax-free childcare account every three months, and for every £8 you pay in, the government will add £2. Advertisement The cash can be used to pay your nursery or childminder. To claim, both parents must be working and earn at least the minimum wage for a minimum of 16 hours a week. You have until the September after your child turns 11 to claim and spend the money. Those with a disabled child can claim up to £4,000 a year, and have until they are 16 to claim it. Potential saving: £2,000 (or £4,000 for parents of disabled children) Advertisement Split the bill Sharing your savings and other assets could half your tax bill. For example, if you have savings in a joint account then each person's savings allowance is applied before tax is paid - even if one person didn't contribute any of the savings. That means you can earn £2,000 in interest tax-free, rather than the usual £1,000, as long as you are both basic rate taxpayers. Robert Salter says: 'If a bank savings account is in both partners' names, the interest is taxable on a 50/50 basis. If one person pays tax or a higher rate of tax, and the other doesn't, it may be better to have the savings in the name of the lower-earning spouse.' Advertisement This also works if you own a buy-to-let property. If the property is in both partner's names then you share the tax you owe on the rental income, and could reduce your bill by having it in the lower earning spouse's name. This is also useful when you sell the property as you can use each person's annual capital gains tax (CGT) allowance on any profits before paying tax. Currently, individuals get a CGT allowance of £3,000 a year, and after that you pay 18% tax (or 24% for higher rate payers). For example, if you bought a property for £150,000 and sold it for £200,000, you would need to pay tax on the £50,000 profit. Advertisement After deducting the £3,000 CGT allowance, that would mean paying 18% tax on £47,000, which is £8,460. But if the property were held in two people's names, you would subtract each person's CGT allowance. You would pay 18% on £44,000, which would mean your tax bill is £7,920. Potential saving: £540 on the property sale Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Advertisement Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Scottish Sun
21-07-2025
- Business
- Scottish Sun
Share price tips! How to turn £25 into £12,609 – three stocks to invest in NOW
Sun reader Megan Norman reveals how she managed to grow her savings by 18 per cent in just four years by savvy investing CASH COW Share price tips! How to turn £25 into £12,609 – three stocks to invest in NOW Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) INVESTING isn't just for the super wealthy, you can start with as little as a quid - and buying shares is a good place to start. Investing pro Holly Mead, who has 14 years' experience, exclusively reveals her tips with Sun readers below - and shares how you could grow your pot from £25 to £12,609 in 20 years. 6 Investing can be a great way of boosting your savings - but beware of the risks and do your research Credit: Shutterstock Editorial 6 Investing expert Holly Mead has top tips for dipping into the stock market Credit: The Times Investing in the wrong companies could see you lose your hard-earned cash - but the right ones could see your savings soar. The first thing to do is to check if you have enough money to start. Experts say you should have three to six months' worth of wages in a savings account you can access before you begin investing. You can start with just £1, but how much you can make depends on how much you invest and where. If you invested £25 into the FTSE 100, which is the collective name for the 100 largest UK companies by value, you could turn £25 into £4,465 after 10 years, assuming that your investment grew at a rate of 5 per cent a year after charges. Over 20 years, that pot would grow to £12,609. Picking the right companies to invest in is therefore really important. So how do you do it? Here, Holly explains. What type of investor are you? New investors often choose a ready-made fund, which is where an expert does the hard work and chooses a mix of assets to invest in, including company shares, bonds, property and gold. This can be a lower-risk way of investing, because your money is spread across lots of different investments. But many people like the idea of choosing for themselves where their money goes. This can feel more exciting, and means you know you are backing businesses you really believe in. So if you want to pick your own businesses to invest in, start by opening a stocks and shares Isa. You can invest up to £20,000 each tax year in these accounts and any gains you make are tax-free. Many investing apps let you open an account with £25 or less. Read reviews and check the fees you will be charged before selecting an app. For example, NatWest charges a fee of 0.55% of the value of your investment. That works out at 55p for every £100 of your investments. In comparison, Barclays charges a 0.25% fee, which works out at 25p for every £100 you invest. Some offer free research or 'best buy' lists of funds and stocks they expect to do well, which can help narrow down your choices. Be a bookworm before investing Research the companies you are considering backing. Use sites like Investegate to read the latest reports and accounts. Look at a company's 'fundamentals' - which means checking things like whether it is profitable, if sales and customer numbers are growing, and making sure it doesn't have too much debt. Have a solid reason for investing - maybe the company has developed cutting-edge technology or is a leader in its industry - don't just invest because everyone else is. Choosing something you know can be a good starting point. Maybe you are a loyal customer because you believe it is better than any of its competitors, or you know a lot about a certain sector because you work in that industry - this extra knowledge can help you make more informed choices. Once you have picked, it's as simple as selecting the stock and choosing the amount you want to invest. You can usually invest a one-off sum, or set up a regular investing plan where you put in a set amount each month. What are the risks? BEFORE you start investing, you need to understand the risks. The return you make will depend on how much you invest and where. As we have seen recently, the stock market can dramatically fall. The American stock market saw its biggest drop since the start of the Covid pandemic after US President Donald Trump announced plans to introduce punitive tariffs on goods imported to the US from other countries. The UK's own stock market, the FTSE 100, fell by more than 10 per cent after the news. You must be prepared to lose it all - so only invest money you can afford to lose. You need to be willing to invest cash for at least five years to mitigate any dips and allow your money to recover. If you can't afford to lock up your money for this long, investing may not be right for you. It's usually better to drip feed money into your investments instead of putting down a big chunk of money in one go. Three stocks to consider right now Marks & Spencer 6 A huge cyberattack hit M&S in April, but the British stalwart still has plenty going for it. In its latest results, M&S reported pre-tax profits were up 22% to £875 million in the year to March. It is undergoing a transformation plan, which includes overhauling its clothing division and expanding its food stores. Tom Stevenson, investment director at Fidelity International, says the stock was the fourth most-bought by Fidelity users in April. He said: 'The continued popularity of M&S, even after a widely publicised cyberattack, highlights investor confidence in its long-term prospects.' The share price is up 250 per cent over five years, currently trading at 339p. Three things to always remember when investing Ben Kumar, head of equity strategy at the wealth manager, 7IM, says: 1. There is no right way to invest "We all have different views on things, and that's true in investing too. "The key is to be clear on your reasons for investing: that could be because you like the company's ethos, you know about the sector, or because it pays a dividend." 2. You will get things wrong "Even the best investors make bad choices. "What's important is how you behave after that happens - keep calm, take stock, do your research, and try to decide whether it will recover and you should stick it out, or whether it's time to cut your losses. 3. Enjoy it "Stock investing is risky, but that is also what makes it exciting. "There is a real buzz about having the chance to own a piece of a business that is doing well." Crowdstrike 6 Tech stocks can be exciting, but make sure they're not just the latest fad. Lale Akoner, global market analyst at eToro, says: 'Companies in software, cloud, and digital infrastructure enjoy steady income and strong demand from businesses investing in AI and digital upgrades.' If the M&S cyberattack taught investors anything, it's that security is key for businesses. Akoner points to Crowdstrike, a US-based cybersecurity firm, as one option. '[It] could offer consistent long-term growth without any exposure to tariffs or currency volatility," he says. Crowdstrike shares dropped last year after a faulty upgrade for customers, but its latest results reported that sales were up 20% to $1.1 billion. Shares have risen 27.5% over the past year to $505, and are up 389% over five years. Bear in mind that exchange rates can affect your returns when investing in overseas stocks. Legal & General 6 Insurance companies might not sound as exciting, but they should be a steady choice as their services are always needed, says Akoner. This makes the earnings of these businesses predictable and reliable. Legal & General is one of the UK's biggest insurers, founded in 1836. In its latest financial results, the firm said operating profit had increased by 6% to more than £1.6billion, helped by record sales of annuities (a type of financial product that pays an income in retirement). L&G shares are up 19% over the past year to 250p, and it also pays a dividend (when a company gives out some of its profits to investors), which can boost your returns. And one to avoid Nike 6 From collaborations with sporting legends such as Michael Jordan and Serena Williams, and the rise of the ath-leisure fashion trend, Nike looked to have it all. But Kumar thinks the brand is now being left behind by companies focusing on high-performance sports gear like the running shoe specialists Hoka and On. In its latest results, Nike said sales were down 9% at $11.6 billion. Shares have dropped 35 per cent over the past year to $76.37 and Kumar thinks they could fall further. He said: 'Nike's sales are expected to fall 10% this year, and its earnings are expected to fall by nearly 50%. For investors, it's a case of: don't do it.'
The Sun
21-07-2025
- Business
- The Sun
Share price tips! How to turn £25 into £12,609 – three stocks to invest in NOW
INVESTING isn't just for the super wealthy, you can start with as little as a quid - and buying shares is a good place to start. Investing pro Holly Mead, who has 14 years' experience, exclusively reveals her tips with Sun readers below - and shares how you could grow your pot from £25 to £12,609 in 20 years. 6 Investing in the wrong companies could see you lose your hard-earned cash - but the right ones could see your savings soar. The first thing to do is to check if you have enough money to start. Experts say you should have three to six months' worth of wages in a savings account you can access before you begin investing. You can start with just £1, but how much you can make depends on how much you invest and where. If you invested £25 into the FTSE 100, which is the collective name for the 100 largest UK companies by value, you could turn £25 into £4,465 after 10 years, assuming that your investment grew at a rate of 5 per cent a year after charges. Over 20 years, that pot would grow to £12,609. Picking the right companies to invest in is therefore really important. So how do you do it? Here, Holly explains. What type of investor are you? New investors often choose a ready-made fund, which is where an expert does the hard work and chooses a mix of assets to invest in, including company shares, bonds, property and gold. This can be a lower-risk way of investing, because your money is spread across lots of different investments. But many people like the idea of choosing for themselves where their money goes. This can feel more exciting, and means you know you are backing businesses you really believe in. So if you want to pick your own businesses to invest in, start by opening a stocks and shares Isa. You can invest up to £20,000 each tax year in these accounts and any gains you make are tax-free. Many investing apps let you open an account with £25 or less. Read reviews and check the fees you will be charged before selecting an app. For example, NatWest charges a fee of 0.55% of the value of your investment. That works out at 55p for every £100 of your investments. In comparison, Barclays charges a 0.25% fee, which works out at 25p for every £100 you invest. Some offer free research or 'best buy' lists of funds and stocks they expect to do well, which can help narrow down your choices. Be a bookworm before investing Research the companies you are considering backing. Use sites like Investegate to read the latest reports and accounts. Look at a company's 'fundamentals' - which means checking things like whether it is profitable, if sales and customer numbers are growing, and making sure it doesn't have too much debt. Have a solid reason for investing - maybe the company has developed cutting-edge technology or is a leader in its industry - don't just invest because everyone else is. Choosing something you know can be a good starting point. Maybe you are a loyal customer because you believe it is better than any of its competitors, or you know a lot about a certain sector because you work in that industry - this extra knowledge can help you make more informed choices. Once you have picked, it's as simple as selecting the stock and choosing the amount you want to invest. You can usually invest a one-off sum, or set up a regular investing plan where you put in a set amount each month. What are the risks? BEFORE you start investing, you need to understand the risks. The return you make will depend on how much you invest and where. As we have seen recently, the stock market can dramatically fall. The American stock market saw its biggest drop since the start of the Covid pandemic after US President Donald Trump announced plans to introduce punitive tariffs on goods imported to the US from other countries. The UK's own stock market, the FTSE 100, fell by more than 10 per cent after the news. You must be prepared to lose it all - so only invest money you can afford to lose. You need to be willing to invest cash for at least five years to mitigate any dips and allow your money to recover. If you can't afford to lock up your money for this long, investing may not be right for you. It's usually better to drip feed money into your investments instead of putting down a big chunk of money in one go. Marks & Spencer 6 A huge cyberattack hit M&S in April, but the British stalwart still has plenty going for it. In its latest results, M&S reported pre-tax profits were up 22% to £875 million in the year to March. It is undergoing a transformation plan, which includes overhauling its clothing division and expanding its food stores. Tom Stevenson, investment director at Fidelity International, says the stock was the fourth most-bought by Fidelity users in April. He said: 'The continued popularity of M&S, even after a widely publicised cyberattack, highlights investor confidence in its long-term prospects.' The share price is up 250 per cent over five years, currently trading at 339p. Three things to always remember when investing Ben Kumar, head of equity strategy at the wealth manager, 7IM, says: 1. There is no right way to invest "We all have different views on things, and that's true in investing too. "The key is to be clear on your reasons for investing: that could be because you like the company's ethos, you know about the sector, or because it pays a dividend." 2. You will get things wrong "Even the best investors make bad choices. "What's important is how you behave after that happens - keep calm, take stock, do your research, and try to decide whether it will recover and you should stick it out, or whether it's time to cut your losses. 3. Enjoy it "Stock investing is risky, but that is also what makes it exciting. "There is a real buzz about having the chance to own a piece of a business that is doing well." Crowdstrike 6 Tech stocks can be exciting, but make sure they're not just the latest fad. Lale Akoner, global market analyst at eToro, says: 'Companies in software, cloud, and digital infrastructure enjoy steady income and strong demand from businesses investing in AI and digital upgrades.' If the M&S cyberattack taught investors anything, it's that security is key for businesses. Akoner points to Crowdstrike, a US-based cybersecurity firm, as one option. '[It] could offer consistent long-term growth without any exposure to tariffs or currency volatility," he says. Crowdstrike shares dropped last year after a faulty upgrade for customers, but its latest results reported that sales were up 20% to $1.1 billion. Shares have risen 27.5% over the past year to $505, and are up 389% over five years. Bear in mind that exchange rates can affect your returns when investing in overseas stocks. Legal & General 6 Insurance companies might not sound as exciting, but they should be a steady choice as their services are always needed, says Akoner. This makes the earnings of these businesses predictable and reliable. Legal & General is one of the UK's biggest insurers, founded in 1836. In its latest financial results, the firm said operating profit had increased by 6% to more than £1.6billion, helped by record sales of annuities (a type of financial product that pays an income in retirement). L&G shares are up 19% over the past year to 250p, and it also pays a dividend (when a company gives out some of its profits to investors), which can boost your returns. And one to avoid Nike 6 From collaborations with sporting legends such as Michael Jordan and Serena Williams, and the rise of the ath-leisure fashion trend, Nike looked to have it all. But Kumar thinks the brand is now being left behind by companies focusing on high-performance sports gear like the running shoe specialists Hoka and On. In its latest results, Nike said sales were down 9% at $11.6 billion. Shares have dropped 35 per cent over the past year to $76.37 and Kumar thinks they could fall further. He said: 'Nike's sales are expected to fall 10% this year, and its earnings are expected to fall by nearly 50%. For investors, it's a case of: don't do it.' 'My trick to investing that you can do too' MEGAN Norman has boosted her savings to £69,000 in four years by investing in tech companies and fat jab manufacturers. She set up an account in 2021 with the trading platform Etoro and tried to focus on picking companies that she believed would stand the test of time. Her pot has grown 18 per cent in just three months, since US president Donald Trump announced his global trade tariffs. Now, £69,000 is sitting in her account. Even if Megan did not invest any more money, if her £69,000 pot grew at 5% a year, in 10 years she could have almost £114,000. 'I was attracted to the idea of making large sums of money very quickly by investing in things like oil and crypto, but I soon realised that was not for me,' says Megan, 30, who lives in Bedfordshire. 'Rather than a 'get rich quick' approach, I look for areas that are strong and that I believe in. I want companies that have been around for a while, have good financials, and whose services will always be in demand,' she says. Megan, who works as an aesthetics practitioner and administers botox, trades fairly regularly and currently has five stocks in her portfolio, including the chipmaker ASML, the bitcoin mining company CleanSpark and the cyber security firm Crowdstrike. One of her best investments has been Novo Nordisk, which she bought as weight loss drugs started to gain popularity. Megan used Investopedia to build her basic knowledge of investing, and now uses websites like Finviz and Tradingview to research companies, as well as the tools on the Etoro app. 'Investing has been great for me - it's built my confidence and given me a sense of belief in myself,' says Megan. 'For anyone considering starting, I would say, you need to understand that your money is at risk and be ok with that. But I really believe that time in the market, not timing the market, is what works.'
