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Another Successful Budget Review Seminar

Posted by Wellden User

We held our Annual Budget Seminar and Business Forum at The Cobham Curve following the 2016 Budget, and once again it was a great success judging by attendee feedback.

Our key note speaker was, Dominic Raab, MP for Esher and Walton, who outlined how measures in the Chancellors Budget would effect local people and businesses. There was also some discussion on the upcoming Euro referendum.

Wellden Turnbull Director Robin John, outlined in some detail the’ ins and outs’ of the Budget, paying particular attention to Entrepreneurs Relief, Liquidation Dividends, Non-Doms, Buy-to-let landlords and Corporation Tax as well highlighting interesting background information about how the Government spends our money!.

The key highlights of Robins presentation are available on You Tube so just CLICK HERE to view.

Julie Sebastianelli from Hurley Partners also presented details about how the Budget could influence Pensions and Investments.

We would like to thank The Cobham Curve for hosting the event, which goes from strength to strength.

UK’s smallest employees need to embrace auto-enrolment

Posted by Wellden User

A recent survey comissioned by the Chartered Institute of Payroll Professionals has found that more than a third of workers reaching the end of their working lives are not planning financially for their retirement.

At a time when auto-enrolment is very much at the forefront of SME owners’ minds, 36 per cent of individuals aged 51-60 admitted to having no pension provision. Meanwhile, two-thirds of 20-24 year-olds surveyed also confessed to having no pension plans, with 30 per cent of all survey respondents fearing that their final pension pot is unlikely to be enough to live on when they do come to retire.

Jane Watford, Payroll Manger said: “I would hope that most people are thinking about their future, but these results show that a great many towards the end of their working lives are not planning for their retirement.

“This should act as a wake-up call for SMEs to look at their automatic enrolment staging date and evaluate the role that payroll plays within their organisations. Auto-enrolment is here to stay and will not go away by ignoring it.

“Small employers should therefore be embracing auto-enrolment and promoting the virtues of it to their staff. After all, the survey revealed that 55 per cent of employees feel saving for the future through payroll is a good idea.”

If you’re confused about what the changes to The Pensions Regulator laws mean for your business, and you require assistance setting-up your automatic enrolment scheme, then please email our Payroll Manager, Jane Watford.

Should you require confidential advice on planning for your retirement, then we are also on-hand to help, so feel free to contact us today.

 

Flat rate state pension causes confusion

Posted by Wellden User

A third of over 50s say they do not have a clear idea about whether they will be better or worse off under the new flat rate state pension, according to Saga.

The insurance provider surveyed 10,010 people aged 50 and over about the introduction of the flat rate pension system in April 2016 and how they feel the changes will affect them. The results show significant confusion about how the new system will work and the effects on people’s standard of living.

The key findings of the survey are:

  • 25% think the new system will be generous
  • 16% think they will definitely receive the new pension
  • 33% think they will definitely not receive it
  • 7% knew how to make extra national insurance top up payments to secure a better pension.

People will be eligible for the new state pension if they are a man born after 6 April 1951 or a woman born after 6 April 1953 who has at least 10 qualifying years on their national insurance record. The government hopes the new system will boost the retirement income of the low-paid and self-employed, who typically fair less well with the current system.

Commenting on the research, Saga’s Paul Green said:

“Our research shows great confusion about changes to the state pension. Whilst there are a minority of people who are savvy who know how to make the most of what is on offer, it should not just be for [sic] savvy few to benefit.

“The government needs to do much more to raise awareness of the ways that people can boost their state pension.”

Get in touch with us today to start making the most of your pension.

Retired households face higher tax bills

Posted by Wellden User

Retired households face an average annual tax bill of £6,500, research by Prudential has found.

Analysis of data from the Office for National Statistics reveals that pensioners pay thousands in direct and indirect taxes each year.

The figures show that the average retired household income rose to £21,800 in the 2012/13 tax year. However, the amount of tax paid by retired households also increased and pensioners are now paying over 30% of their income to the taxman.

In the 2012/13 tax year:

  • the average retired household paid £3,900 in indirect taxes and £2,600 in direct taxes
  • indirect taxes (including VAT and duties) accounted for 60.2% of the average retired household’s tax bill
  • direct taxes (including income tax and council tax) made up 39.8% of the average tax bill
  • VAT was the biggest tax item, accounting for 8.2% of the average tax bill
  • income tax accounted for 7.4% of the average tax bill.

The Treasury estimates that the newly introduced pension freedoms could lead to an increase in tax revenue of £320 million during the 2015-16 tax year and £1.22 billion in 2018-19. The research highlights this as further proof that people approaching retirement need to factor tax into their plans.

Stan Russell, retirement income expert at Prudential, said:

“Retired households make a major contribution to the Exchequer every year whether it is in direct or indirect taxes and clearly it is not possible to avoid all taxes simply because you’ve stopped working. It’s a stark reminder that not all the income you receive in retirement will be yours to spend as you like.

“Irrespective of the new pension rules and their tax implications, the fundamental principles remain true – the best way to secure enough income for a comfortable retirement is to save as much as possible as early as possible in your working life.”

We can help you minimise your tax liability in retirement. Contact us today