Mercer & Hole’s Business blog - Financial Services

Workplace pension law has changed and all employers will be expected to place members of staff who meet certain criteria into a qualifying pension scheme and make contributions. Employers are required by law to automatically enrol all eligible employees into a workplace pension and make a contribution to it. Employers will be given a date by which they must auto enrol their employees – known as a ‘staging date’ – which is determined by the number of employees under a PAYE reference as at 1 April 2012. Should employers have more than one PAYE reference the earliest date will be...

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The latest Finance Bill comprises of three volumes, with 227 clauses and 38 Schedules.  The explanatory notes to the Bill are available on the Treasury website (www.hm-treasury.gov.uk/) and comprise a further 508 pages.  This is the largest Finance Bill in UK history. Somehow that doesn’t sound simple! ...

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Junior ISAs became available with effect from 1 November 2011. Parents can now open a Junior ISA account for their children, who are under 19, UK resident and do not have a Child Trust Fund. The annual contribution limit for Junior ISAs is set at £3,600. To ensure that children with Child Trust Funds are not disadvantaged, that savings limit has increased to £3,600. Funds in a Junior ISA will be locked in until age 18 and can then roll over into an adult ISA. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this...

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A new scheme 'The Mortgage Verification Scheme' is being introduced.  HMRC will be paid to check whether mortgage applicants’ details match their tax declarations with a view to helping lenders cut down on mortgage fraud. The mortgage industry is concerned about the level of fraud, where income figures are inflated to increase borrowings. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552. Email Cathy Corns ...

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With effect from 9 August 2011, HMRC’s bank accounts have changed. Any payments after 9 August that are directed to the old Bank of England accounts will automatically be rejected.  This will inevitably result in a delay in payment and probably lead to late payment penalties and interest if your payment does not reach the correct account by the payment due date. To ensure that your payment is credited correctly, it is essential that you use the correct bank account information. You can seek further guidance on the HMRC's...

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The government has now issued its consultation on pension contributions and tax relief with a view to simplification of the current rules. Currently an annual limit of £255,000 is permitted for all contributions, personal and corporate. There may though be tax issues for contributions over £20,000 depending on income levels and employment history. The proposal is to reduce the annual permitted contribution level to a blanket level between £30,000 and £45,000. At present for contributions in excess of £255,000 tax relief is recovered at 40% or 50%. With a reduced limit of up to £45,000 the proposal is to apply a tailored...

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As the end of the tax year approaches there are many issues to consider when it comes to pension planning. It is important to remember that although the end of the tax year may be 5 April, some providers will have deadlines prior to this. Therefore I would encourage you to complete your planning and contributions by the 31 March 2010. Pensions – paying in The key points to note are as follows: For those with earnings over £130,000 (don’t forget this includes everything – dividends, bank interest, rental income etc) ensure your special annual allowance contribution of £20,000 is paid ...

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Employers and employees need to watch out for the new provisions on pension contributions tax trap when negotiating redundancy arrangements, if (broadly) taxable income exceeds £130,000. Once the £130,000 limit is reached then any sacrifice for pension contributions could result in an unexpected tax bill. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552.  ...

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Budget. Review your income and outgoings by listing your direct debits and see where you are losing out. Look at comparison sites such as www.uswitch.com and  www.moneysupermarket.com to see if you can get a better deal or renegotiate with your current provider. This goes for utilities, your banking, gym membership, mobile contracts, broadband, TV etc.  Review your mortgage. This is likely to be your largest expense. Can you save on your current bank? Are there penalties for moving? If you are on a tracker rate, are you saving some of that...

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Some clients aged over 55 may wish to draw their tax free cash sum from their pension plans - maybe for a one-off expense. However, they might not need any regular taxable income - they might still have employment income sufficient for day-to-day living, could be are taxpayers and do not want to pay tax on any pension income. Pension plans generally provide the entitlement to a tax free cash sum of 25% of fund value when the benefits are drawn. Usually, if the tax free cash sum is drawn directly from the pension plan that the benefits are currently held under,...

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