State Pension top up increases need attention now!
Monday, March 23rd, 2009As part of any pension planning, it is usually worthwhile checking your state pension (using a BR19 state pension forecast form) to ensure that your records are correct and that you receive the maximum entitlement available to you. If you have a shortfall in benefits, this can usually be topped up with additional contributions to the scheme. This will normally be detailed in any forecast you have received.
The state pension usually offers good value for the benefits it provides, although each individual case should be checked before topping up to ensure value is received. The cost of topping up (via Class 3 NIC’s) is to increase significantly in the new tax year (06/04/09). If you have the opportunity of topping up and plan to do this (and not everyone has), now would be a good time to do this before the cost increases. Some may find that they can only contribute at the new tax years increased rate.
For more information, see the following example link:http://www.thepensionservice.gov.uk/state-pension/basic/faqs.asp
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
Don’t forget your ISAs
Friday, March 6th, 2009Individual Savings Accounts (ISAs)
ISAs are a tax efficient savings schemes designed by the government to encourage people to save for the future.
The current contribution allowances in the tax year are:
- £3,600 into a Cash ISA
- £3,600 into an stocks & shares/investments ISA
Or
- £7,200 into a stocks and shares ISA.
Under the current rules, a person can invest up to a maximum of £7,200 in any tax year (which runs from 06th April to 05th April). This means that you can use your allowance this tax year and early in the new tax year (2009/2010) from the 06th April 2009.
A cash ISA allows savers to put away their money to accrue interest just like it would in an ordinary bank or building society account, but with the advantage of tax efficiency.
A shares ISA allows investment into other assets, such as equities. This is usually higher investment risk, they again offer the opportunity for tax efficient returns.
As with any financial planning, you should keep your ISAs under review. If appropriate, ISAs can be switched or moved between providers if the performance is not as expected.
Don’t forget to use your allowance this year.
Seek independent financial advice before making any changes. These thoughts are for generic guidance only and should not be relied on as specific individual advice.
Churchouse Financial Planning Limited is authorised and regulated by the Financial Services Authority.
