Thursday, 25 February 2010
Tax and Pensions
Tax and pensions are not exciting news to many of us, but I would like to bring your attention to a few matters concerning the subjects.
Firstly, are you aware you could have paid too much tax this year? The new HMRC computer system has sent the wrong code to thousands of us. Although HMRC has admitted it is aware of the problem, it is mainly leaving it up to individuals affected to contact it to right the situation.
Here are 10 tips from the accountant Smith and Williamson to help you check your PAYE tax code is correct.
There are notable basic changes in the State Pension, particularly in the rise of ages at which it can be claimed.
The 'qualifying years' have also been altered. Currently men normally need 44 and women 39 to receive the full basic state pension. However, if you reach State Pension age on or after 6 April 2010, you will only need 30 qualifying years.
Quite a change. In the past men and women had to work most of their lives to receive a full pension - there was little allowance given for anyone wishing to undertake further education and even less for women who wanted to take a few years off to have a family. That now appears to have been addressed, but the monetary value of the state pension needs to be indexed linked to earnings. For too many years it was not and that caused distress to many pensioners, who were also suffering from Gordon Brown's raid on their well planned pension pots.
Check out your eligibility. It's never too early to know the future.