Tax efficient investments ahead of the tax year end


With the end of the tax year looming there is still time to save tax for 2018/19.

  • Make full use of your ISA allowance – ISAs can offer a useful tax free way to save, whether this is for your children’s future, a first home or another purpose. Individuals may invest up to a limit of £20,000 for the 2018/19 tax year. Savers have until 5 April 2019 to make their 2018/19 ISA investment.

  • Pensions provide significant planning opportunities. The annual allowance (AA) which is the maximum you can contribute to a pension and still get tax relief, is generally £40,000. Exceeding this can result in an AA clawback charge. However, in many circumstances you may have unused AA from the three previous tax years which can be used in 2018/19, providing the means of making a significant contribution without incurring a charge. Please contact us for advice specific to your circumstances.

These are only a couple of options that you may wish to consider as part of your tax planning strategy. Contact us for more information.

Internet links: GOV.UK ISAs Pensions Advisory Service AA

Pensions auto enrolment contributions to rise


Minimum pension contributions are set to increase from 6 April 2019:

Duration Employer minimum (%) Total minimum contribution (%)
Current contributions 2 5
6 April 2019 onwards 3 8

The Pensions Regulator has produced guidance for employers on dealing with the increase including a letter template to advise employees of the change.  

Contact us if you would like help with auto enrolment.

Internet link: TPR increases

Start date looming for Making Tax Digital for VAT


The Financial Secretary to the Treasury, Mel Stride, has made a statement to the House of Commons setting out HMRC’s progress on delivery of Making Tax Digital (MTD). He confirmed there would be no further delays in implementation.

For most businesses, compliance with the regulations is mandated for VAT return periods beginning on or after 1 April 2019. However, MTD for VAT for some ‘more complex’ businesses has been deferred until 1 October 2019. This deferral applies to trusts; not for profit organisations not set up as companies; VAT divisions; VAT groups; public sector entities such as government departments and NHS Trusts, which have to provide additional information on their VAT return; local authorities; public corporations; traders based overseas; those required to make payments on account; annual accounting scheme users.

Contact us for help and advice on MTD for VAT.

Internet links: Hansard debate MTD

Protect your pension pots


The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees’.

Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.

Pension scam victims lost an average of £91,000 to criminals in 2018, according to Financial Conduct Authority (FCA) research. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.

The Insolvency Service has urged savers to be wary of calls that come out of the blue; seek financial advice before altering their pension arrangements or making investments; and not be pressured into making decisions about their pension.

Consumer Minister Kelly Tolhurst said:

‘If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.

‘The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.’

Internet link: GOV.UK news

Protect your pension pots


The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees’.

Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.

Pension scam victims lost an average of £91,000 to criminals in 2018, according to Financial Conduct Authority (FCA) research. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.

The Insolvency Service has urged savers to be wary of calls that come out of the blue; seek financial advice before altering their pension arrangements or making investments; and not be pressured into making decisions about their pension.

Consumer Minister Kelly Tolhurst said:

‘If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.

‘The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.’

Internet link: GOV.UK news