The government proposed pension reforms in the March 2014 budget to change the current rules in significant ways to encourage people to consider their choices and actively think about funding their retirement.
Please note that the following information is a guide only, for more detailed information and the options available to you, you should speak to your financial adviser or pension provider.
Pension Options before April 2015:
Drawdown - There is a risk to this kind of pension as you are able to draw funds as you want them, but if you draw too much your pension fund could run out. There are many different schemes available under the drawdown scheme, all with different options, so it is important to shop around. The new rules will still be applied to this kind of scheme.
Annuity - An annuity can be purchased which would provide an income for life, but you should be aware that buying an Annuity is a final decision that cannot be changed. And you would not be able to take advantage of the new rules.
Small Funds - If you have a small pension fund and are over 60 and the total of your pension funds are less than £30k, or individual fund less than 10k , you could draw it as a lump sum rather than using it to provide income.
Pension Options after April 2015.
Drawdown - As above, this is the most flexible type of scheme available.
Annuity - As above, to provide an income for life, but normally without the option to change at a later date.
Taxed Lump Sum - From the age of 55 you would have the option to take the rest of your pension as a lump sum, which would be taxed as an income. However, you should consider your current tax position to avoid paying higher rate tax.
Self assessment tax returns
The penalty system for late submissions of self assessment tax returns has changed, please click here to go to the HMRC website for more information.
Companies House accounts filing penalties
Companies House have increased the penalties for late submissions of accounts. The new penalty takes effect on accounting periods beginning on or after 6th April 2008. The new penalties are as follows:
Double Penalties
The amounts set out above will be doubled if both the current and previous accounts have been filed late. The penalties will only be doubled if the late accounting periods are successive.
Companies House Filing Deadlines
For accounting periods beginning 6th April 2008 onwards the filing deadlines have been reduced from 10 months after the year end to 9 months i.e. If the company's accounting period ends 30th April 2008, it is due at Companies House no later than 31st January 2009.
Tax enquiry fee protection service
As you may be aware HM revenue and Customs have been putting more resources into pursuing more tax enquiries over the past few years.
Enquiries can be complex and therefore responding to HMRC can be time consuming and consequently expensive to you. We now offer an insurance policy which covers our fees should you be unfortunate enough to be subject to a tax enquiry by HMRC.
The policy does notcover any tax liability that may arise as a result of a tax enquiry!
This service is only available to clients of Geoffrey Beech & Co.
HMRC campaigns
Occasionally HMRC run campaigns to provide the opportunity for people to voluntarily get their tax affairs into order and disclose various incomes. This usually carries the benefit of lower penalties than if HMRC came to inspect your records and found discrepancies. You can get more information on current and upcoming campaigns here.
