Hot Topics
Posted on 18th March 2008
Income Tax Changes April 2008 - Their effect on Pension Contributions.
Last year's budget saw the Chancellor announce a reduction in income tax from 22% to 20% effective from 6 April 2008. In this short article, Roger Sheldon of Lucas Fettes & Partners (Financial Services) takes a closer look at the effect on pension contributions.
As income tax drops from 22-20%, the tax relief given by the Government will mirror this reduction from that date onwards. This applies to both personal pensions and stakeholder schemes.
How are employers affected?
Operators of group schemes need to ensure that contributions deducted from March salaries have been sent to the insurer before 6 April 2008. This is because the change in the amount of tax relief relates to the date on which the contribution is made and not the period to which the contribution relates.
How are policyholders affected?
If you have applied to make a gross contribution of - say - £100 per month, you will find that the net contribution will increase automatically from £78 to £80 for payments made by direct debit or deductions from salary from 6 April 2008. However, if you have applied to make a net contribution of - say - £100, you will find that this will remain unaltered and the gross contribution applied to your policy will decrease from £128.21 to £125.
How is payroll affected?
It is also important that the company's payroll department (or their payroll provider) must remember that deductions from salary which are paid to the insurance company on or after 6 April 2008 must be increased from 78% to 80% of the gross amount (except for schemes where the contribution is expressed as a net amount).
Higher rate tax
If you pay income tax at the higher rate of 40% you are eligible to claim further tax relief on the balance between the basic rate and higher rate. To get the additional relief you should contact your Inspector of Taxes - your employer will have contact details if you are not sure where to go.
Help from Lucas Fettes
Roger Sheldon has extensive experience advising employers and trustees on all types of pension arrangements. Based in the new Lucas Fettes office in Haywards Heath, he can be contacted on 01444 884700 or visit www.lucasfettes.co.uk.
Posted on 25th April 2007
The planning reform agenda - In 2001 the current government published the Planning Green Paper, Planning Delivering a Fundamental Change, and subsequently committed itself to an ambitious reform of the land use planning system. Link
Timetable announced for implementation of Companies Act. Link
Acas Regional Briefing Events On Flexible Working For Carer's Of Adults Plus New Employers Information Pack http://www.dti.gov.uk/employment/workandfamilies/flexible-working/page38821.html
Posted on 20th March 2007
Dealing with cancer at Work - Cancer is now recognised as a disability under the DDA. This paper provides advice and guidance on how to deal with cancer and cancer-related issues in the workplace. It is produced as a result of a collaboration between Cancer backup, the CIPD, and the Working with Cancer (WwC) group. http://www.cipd.co.uk/subjects/health/general/_cncrwrkg.htm?IsSrchRes=1
Health and Safety in Agriculture - Agriculture has one of the worst fatal accident and occupational ill health records of any major employment sector. http://www.hse.gov.uk/agriculture/hsagriculture.htm
Economic Policy - As part of its Budget submission, the Institute of Directors (IoD) is warning the Government that U.K. economic policy now stands at a ‘fork in the road' and we now face a clear choice.
http://press.iod.com/newsdetails.aspx?ref=266&m=2&mi=62&ms=
Protection for your loan repayments - Eastern Daily Press, 24th February 2007.
Comments by Frances Goldspink, Consultant, Lucas Fettes & Partners (Financial Services) Ltd.
Posted 12th February
New Construction (Design and Management) Regulations Revisions to the Construction (Design and Management) (CDM) Regulations (1994) (CDM 94) are expected to come in to force in April 2007. Visit: http://www.hse.gov.uk/construction/cdm.htm
New compensation limited announced. The annual increase in compensation limits for claims in the Employment Tribunal (effective from 1st February 2007) has been announced. Link Companies' details on websites and in electronic communications Under new regulations that came into force on 1 January 2007, the longstanding statutory requirement for companies to state certain particulars on their stationery and other hardcopy documents has been extended to websites and various electronic communications. Link Posted: 4th January 2007
The Waste Electrical and Electronic Equipment Directive (WEEE Directive) aims to minimise the impact of electrical and electronic goods on the environment, by increasing re-use and recycling and reducing the amount of WEEE going to landfill. The UK Regulations implementing the WEEE Directive were laid before Parliament on 12 December 2006 and enter into force on 2 January 2007. Non-Statutory Guidance will be available in the New Year. For further information visit: http://www.dti.gov.uk/innovation/sustainability/weee/page30269.html
Smoking Ban Summer 07 - The Publican and Club Mirror publications, together with the industrys clean-air initiative AIR, are launching a new project aimed at taking the licensed trade through the transition to the summer smoking ban as smoothly as possible. For further information visit: http://www.thepublican.com/section.asp?navcode=222
Control of Substances Hazardous to Health - COSHH - Using chemicals or other hazardous substances at work can put people's health at risk. So the law requires employers to control exposure to hazardous substances to prevent ill health. For further information visit: http://www.hse.gov.uk/coshh/index.htm