Business owners who fail to pay their employees the National Minimum Wage (NMW) are coming under increased scrutiny from HM Revenue & Customs (HMRC), with a number of directors being struck off recently for not doing so. Continue reading Paying the correct amount
The Government’s state pension top-up scheme allows individuals to increase what they will eventually get in their state pension by up to 30 per cent through ‘filling in’ National Insurance contributions (NICs). Continue reading How to increase the state pension
Millions of students and graduates face a massive 33 per cent increase in the interest rates they pay on tuition fees and maintenance loans, as they will pay based on the retail prices index (RPI) plus 3 per cent. Continue reading Student loan interest set to rise
The Government has failed to meet its 7 May deadline to review the state pension age, which had been enshrined in the 2014 Pensions Act, meaning that millions of older people have no idea when they can expect to retire. Continue reading State pension age still not revealed
HM Revenue & Customs (HMRC) has extended the deadline for its consultation on the current practise and tax rules on employee expenses and the future of the practice to 10 July. Continue reading Employee expenses consultation
As employers will be aware, from 6 April the basic Personal Allowance changed to £11,500 and the basic rate limit changed to £33,500. This means that the new threshold, or starting point for Pay As You Earn (PAYE) is £221 per week or £958 per month. Continue reading Which tax codes to use
Recent research has found that, although younger women are more in control of their investments than older women, the gender gap still prevails and, globally, women as a whole are 15 per cent less likely to invest than men. Continue reading Older women least likely to invest
Over the past 30 years, UK employees have donated more than £1.3bn to charity direct from their pay through the country’s first and largest payroll giving scheme, the Charities Aid Foundation’s (CAF) Give As You Earn. Continue reading Payroll giving via CAF tops £1bn
At the same time as a new government initiative is launched that allows pension savers to withdraw tax-free cash from their pension pot to pay for financial advice, official figures show that the UK’s savings ratio fell to its lowest level in the last quarter of 2016 since the early 1960s.
According to the Office for National Statistics (ONS), the ratio, which measures the outgoings and incoming that affect households, fell partly because of changes in insurance and pension values. However, it was also part of a wider trend, which has seen the ratio fall since mid-2015, as consumer spending outstripped growth in disposable incomes and, according to the Bank of England, the ratio will fall further in the next three years because of weaker incomes.
However, for those who have managed to save a decent amount, the decision about what to do with the cash is so important that the Government is keen to ensure that they are “supported in making good financial decisions”.
The new pension advice allowance will therefore allow pension savers to withdraw a maximum of £500 tax-free, up to three times across three different tax years, to contribute towards the cost of financial advice.
This will save a basic rate taxpayer £100 and a higher rate taxpayer £200 each time they draw the amount out and is in addition to the 25 per cent tax-free lump sump that individuals can take once they are 55.
The allowance is available at any age in a bid to allow savers to plan ahead for retirement and, crucially, to engage with their retirement planning early, and does not need to be for advice on pensions but could be for any form of saving that will benefit them in retirement.
A number of changes have come in at the start of the new tax year that employers need to know about, from an increase in the Personal Tax Allowance to the Apprenticeship Levy. Continue reading Changes from new tax year