Latest figures affecting pension tax advice.

Pension-tax-advice
Pension-tax-advice

Article by Phil

Quilter have received the latest tax figures from HMRC from their latest Freedom of Information request. They make interesting reading and may help to clarify pension tax advice.

Following the last budget in autumn, the current Conservative government has now the got the dubious honour of creating the tax highest burden in history. By not moving income tax bands, the government has created an increase in fiscal drag which pulls more people into higher tax bands.

By 2027, HMRC forecasts that 1.1 million people will be pulled into the higher tax bracket. That starts at £50,271 up to £150,000 in salary. In addition a further 300,000 people will be pulled into the additional tax band which starts at salaries over £150,000. The current higher rate of tax is 40% and the additional rate is 45%. So, under the Conservatives a further 1.4 million people will be paying the highest rates of tax. Not surprising then that the richest 10% are now paying 53% of all the tax collected.

With the effects of inflation, the increased tax rates means that those affected are not likely to see any increase in their spending power over the next four years. Despite their salaries increasing, because of the tax rises.

That doesn’t look like it will create much incentive for people to join the ranks of middle and senior management.

The self employed won’t fare any better either. Corporation  Tax is set to rise form it’s current rate of 19% up to 25% from this April. That’s an increase of 31%. Again, hardly an incentivise to invest in growth.

Quilter have calculated that over the next four years someone on £50,000 will pay an extra £6,434 in tax. Their suggestion is that pension tax advice might be to pay more into a pension in order to offset the contributions and pay less tax.

That might help, but it looks like high taxes are here to stay unless the next government does something about it.

Pension-taz-advice-from-Christina-Clegg-and-Adele-Cowgill

The Importance of Asset Allocation and Diversification

Christina Clegg Financial Planning Services explain the importance of managing your asset portfolio.

Searching for "pension tax advice near me" , we offer practical and relevant solutions to help you meet your financial objectives. Why not find out how we can help, call us on 01282 614444 or drop us an e mail to enquiries@ccfps.co.uk

Awards and Accreditations

Pension Transfer Gold Standard
Investment-Planner
Financial Vulnerability Taskforce
VF 23
Vouched For 2022
Vouched For 2021
Vouched For 2020
Vouched For 2019
Vouched For 2018
Vouched For 2017
Vouched For 2016
Vouched For 2015
Vouched For 2014

We’ve only been clients for a couple of months, but we both feel that we have made the right decision. After first meeting Adele she put our minds at rest.

Mr & Mrs P

Adele was very easy to like from the moment we met her. She always arrives on time, and she has changed our lives in as much as showing us how to enjoy our money more.

Mrs W

Adele was wonderful! She explained everything and made us feel at ease at all times. It was wonderful to deal with her.

Mr & Mrs C