Archive for the ‘Uncategorized’ Category

Self-employed facing pensions timebomb

Posted on: November 3rd, 2014 by nwp_admin No Comments

The UK’s ever growing army of self-employed workers are walking into a pensions nightmare if they don’t take action to address the problems soon, according to the Daily Telegraph.

Recent figures from the Office for Budget Responsibility show there are now 4.5 million UK individuals who are self-employed, with the number growing rapidly in the years following the Credit Crunch which hit in 2008.

Those workers missed out on the auto-enrolment reforms which have seen millions of employees starting pension savings for the first time and, due to low pay or lack of information, are not contributing to a pension scheme from their self employed earnings.

Research by the Prudential estimates that self-employed people who miss out on a lifetime of employer contributions forgo an average of £91,500 in company pension scheme contributions.

Almost a third (29pc) said they expected to be entirely reliant on the basic state pension when they retired.

However, there are things the self-employed can do to avoid these pension pitfalls. These include using forgotten tax relief to start your pension, buying your business premises through your pension, carry forward unused annual allowances and employing your spouse to boost their pension savings.

Contact Nexus Wealth Planning today for advice and assistance on any of these issues.

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Alarm at HMRC bank account powers

Posted on: May 9th, 2014 by nwp_admin No Comments

A committee of MPs has raised concerns at proposed new powers to allow HMRC to take payment directly from individuals’ bank accounts.

The Treasury Select Committee fear that the new tax collection powers, put forward in George Osborne’s recent Budget, could leave thousands of people open to error and fraud.

In a statement, the committee said: “This policy is highly dependent on HMRC’s ability accurately to determine which taxpayers owe money and what amounts they owe, an ability not always demonstrated in the past.”

“Incorrectly collecting money will result in serious detriment to taxpayers. The government must consider safeguards, in addition to those set out in the consultation document, to ensure that HMRC cannot act erroneously with impunity. These might include the award of damages in addition to compensation, and disciplinary action in cases of abuse of the power.”

It added: “The ability directly to have access to millions of taxpayers’ bank accounts raises concerns about the risk of fraud and error, and this should also be covered by the consultation.”

Around 17,000 a year people could be affected by the new tax collection powers, which are expected to raise around £100m a year.

The Treasury insists there are sufficient safeguards as HMRC will only be able to remove the money after four ignored requests for the tax, the money due is more than £1,000 and only if there is £5,000 in the account afterwards.

More on this story:-
BBC News
The Guardian

The Telegraph