February 26th, 2010
With 2010/11 income tax codes landing on doormats at the moment, anyone with total earnings of £100,000 plus could be forgiven for thinking that less is certainly not more…
As we have reported previously on this site, anyone with total earnings (including rental & investment income) will see their income tax personal allowance reduced by £1 for every £2 earned over the threshold, meaning that it will disappear once earnings reach £112,950. This creates a marginal rate of tax on the band of income £100,0000 - 112,950 of 60% resulting in an additional income tax bill of £2,590 where the entire allowance is removed.
The good news is that there are prudent financial planning decisions which can be taken to reclaim this valuable allowance. If you or your organisation would like to learn more, please get in touch.
Whilst we’re dishing out the good news, please don’t forget that for anyone with earnings of £130,000 or more (including in any one of the previous 3 tax years - this figure includes the taxable element of redundancy payments) there could be restrictions placed on the amount of money which can be invested by them or their employer into pension arrangements from 6th April 2010 (for anyone earning £150,000 plus) or 9th December 2010 (£130,000 plus) without creating an income tax-charge. Again, for full details please speak to EBS.
Posted in business, individuals |
December 14th, 2009
In its annual survey of 50 of the largest occupational pension schemes in the UK, the Occupational Pensioners’ Alliance (OPA) has called on The Pensions Regulator (TPR) to take action preventing Finance Directors, or employees reporting to Finance Directors, serving as pension scheme trustees.
Referring to current TPR guidance on conflicts of interest, the report states that “OPA believes that Finance Directors should be disqualified altogether from being scheme trustees…and urges the Regulator to intervene.”
For a copy of the full report visit: http://www.opalliance.org.uk/docs/2009survey.pdf
Posted in business |
December 14th, 2009
David Norgrove, chair of The Pensions Regulator has called for greater scrutiny of trustees offering incentives to employees who transfer their accrued benefits away from final salary or defined benefit schemes.
Speaking at the NAPF Conference, he said: ”Trustees should start from the presumption that such exercises and transfers are not in member’s interests. If a company is willing to encourage the transfer, the company’s gain is likely to be the member’s loss.”
EBS has a specialist adviser, Steve Randall, qualified to provide advice on the suitability of any occupational pension scheme transfers. David Norgrove’s speech does not refer to transfers of stakeholder or personal pensions.
For a full copy of the speech visit: href=”http://www.thepensionsregulator.gov.uk/mediaCentre/pressReleases/pn09-20.aspx”>http://www.thepensionsregulator.gov.uk/mediaCentre/pressReleases/pn09-20.aspx
Posted in business |
December 14th, 2009
14th December: For the third successive month, one of the companies participating in the tender process to administer the Government’s proposed National Pensions Savings Scheme (due to be launched in 2012) has withdrawn. Great-West Retirement Services (December), Logica UK (November) and ATP (October) have all withdrawn as the delays imposed by the Government make the proposition look less attractive.
Commentators are already suggesting that whilst auto-enrolment of all employees into a pension scheme will still happen from 2012, it would be more cost-effective for the Government to achieve this utilising either State pensions (which the Government is not too keen on) or the private sector, via group stakeholder or personal pension arrangements.
For details of the latest proposals and how they will affect you, click here for our single page summary.
Posted in business |
