Here’s the latest financial news from your local pension advisors at Christina Clegg Financial Planning Services.
- The real cost to people of frozen tax allowance bands has been revealed. Since 2021 6.1 million more people are now paying tax. Including an additional 2.65 million higher rate tax payers and 700,000 additional tax rate payers. 29% of all tax payers are now pensioners.
- In addition, a further 1.2 million people now pay tax on their savings. This could also be set to increase further with rumours that the treasury are considering taxing interest on ISA’s. Not surprising since they are the UK’s favourite savings mechanism with over £57 billion paid into Cash ISA’s last year.
- The Pension Dashboard project continues to move forward. But slowly. Some 70 million pension records have now been connected to the system but that’s still only 85%. No Launch date has been announced yet, but when it does it will make a massive difference to local pension advisors.
- National solicitors firm Hugh James is considering entering the simplified advice market.
- The number of Claims Management Companies (CMC’s) has fallen by over 50% to under 500. That’s since the FCA took over regulation back in 2019. That’s got to be a success story.
- HMRC have arrested two people over a £150 million TikTok tax fraud. Apparently people were persuaded to give up their personal tax details thinking that they might get a tax refund. Please do not send any personal information to anyone in response to a social media advert.
- National Think Tank the Social Market Foundation has come up with a new radical idea for state pensions. That is to allow under 40’s to withdraw a years worth of state pension now, in return for receiving their state pension a year later when they reach retirement age. The idea is to provide a mechanism for younger people to get on the housing ladder or to pay down their debt. The idea is already popular with over 50% of under 40’s saying that they would take advantage of such a scheme.
- GDP fell by 0.1% in April.
- The FCA may have run into trouble over the introduction of Simplified Advice. It seems that most of the Banks might not be able to offer the service to most of their clients because of Data Protection restrictions. The government is now considering new legislation to find away around the regulations.
- Complaints about HMRC have rocketed by 66% over the last 12 months. The complaints involve delays and miscalculations which are costing tax payers time and money to resolve. This is the back drop to the introduction of making tax digital for the self-employed. It doesn’t bode well.
- The FCA have warned that there is a fake FCA website out there using a .org.lc domain name. Please check carefully if you are using the FCA website.
- Over £1.2 billion was stolen by fraudsters in the UK last year. Of hat £200 million was from investment fraud and scams. That’s up 40% of last year. Please be on your guard.
- Romance fraud was £40 million – please don’t fall in love online!
- The you can leave your money to the kids. Apparently 20% of under 40’s aren’t saving for retirement because they believe they will inherit enough from their parents. Let’s hope the parents have had advice from their local pension advisors! Or haven’t spent it.
- Inflation remained steady at 2.8% in April.
- Almost 50% of workers in the UK said they had a second job or other source of income. 80% earned less than £500 a month extra. Only 5% paid their extra earnings into a pension.
- The Bank of England held base rate at 3.75%
- Inheritance Tax receipts rose to £730 million in May, up £30 million on last year.
Get more information.
For more information from your local pension advisors, why not contact Christina today. We offer a free initial meeting to discuss your requirements and explain how our service works. You are under no obligation to use us after that if you don’t want to and we won’t pester you.
So why not call us today on 01282 614444 or e mail us enquiries@ccfps.co.uk or use our contact form online.
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