We previously notified you that the deadline was approaching for individuals aged 45 to 72 to fill in gaps in their National Insurance Contribution (NIC) history. For those under 45, it will generally not make sense to pay for additional years as you should have sufficient remaining working life to achieve the maximum number of NIC years (although other factors could affect this such as if you have moved overseas). The initial deadline was April 5th 2023, which due to the current overload of government helplines, was subsequently extended to 31st July 2023 and has now been further extended to 5th April 2025 as advisers have been unable to provide the necessary advice.

The new pension tax reforms that were announced in the recent Spring Budget took effect from 6 April 2023. The old £40,000 cap on annual pension contributions has been increased by 50% to £60,000, with effect from 6 April 2023. Tax relief for contributions to pension schemes is given at a taxpayer’s marginal rate of Income Tax and is subject to the increased underlying limits. Taxpayers will continue to be able to carry forward unused annual allowances the last three tax years if they have made pension savings in those years.

If you are aged between 45 and 70 it is important to check that you have, or expect to have, made sufficient National Insurance contributions to qualify for the full State Pension.

 National Insurance (NI) contributions are made in a variety of ways:

• Class 1 contributions are paid by employers and their employees
• Class 2 contributions are fixed weekly amounts paid by self-employed people.
• Class 3 contributions are voluntary NICs paid by people wanting to fill gaps in their contribution record.
• Class 4 contributions are paid by self-employed people on their profits.

Tax planning might not sound like the most exciting way to spend your time, however it could have a significant effect on your finances. As the 2020/21 tax year draws to a close there are multiple considerations for what you can do to utilise your cash before the limitations reset as well as planning ahead for the future.

It is fine to keep working past your State Retirement Age unless your employment is subject to retirement at a compulsory retirement age.

With the new tax year now upon us, any allowances that you used up in full during 2018/19 have been reset and you can now begin using them again.  
 

There are a number of payroll changes coming into effect from April 2019 that employers need to be aware of.
 

2019 is set to be a year of changes for finances, with everything from council tax, state pension payments and inheritance tax set to change. Find out about the changes below and how your finances could be affected.

2019 is set to be a year of changes for finances, with everything from council tax, state pension payments and inheritance tax set to change. Find out about the changes below and how your finances could be affected.

The recently announced proposed increase in Teachers’ Pensions Scheme (TPS) employer contributions from 1 September 2019, has shocked the academy sector. Treasury indications predict a rise to 23.6% - an increase of over 40%. Most schools were expecting a 2% to 3%.
 

The recently announced proposed increase in Teachers’ Pensions Scheme (TPS) employer contributions from 1 September 2019, has shocked the academy sector. Treasury indications predict a rise to 23.6% - an increase of over 40%. Most schools were expecting a 2% to 3%.
 

Most people think the highest rate of income tax in the UK is 45%. But in fact there are two situations where you could be paying much more. 

Most people think the highest rate of income tax in the UK is 45%. But in fact there are two situations where you could be paying much more. 

The current annual pension limit remains at £40,000. In addition, unused relief from the previous three tax years may be utilised once the current £40,000 limit has been used. However, the relief from 2013/14 will lapse on 6 April 2017.

The current annual pension limit remains at £40,000. In addition, unused relief from the previous three tax years may be utilised once the current £40,000 limit has been used. However, the relief from 2013/14 will lapse on 6 April 2017.