Category Archives: Pensions

Tax Alert 16th April 2019 – Tax-Free Childcare + State Pension and Child Benefit


Tax Alert 16th April 2019 –

Tax-Free Childcare + State Pension and Child Benefit

TAX ALERT

A REMINDER TO RE-CONFIRM YOUR CLAIM TO TAX-FREE CHILDCARE

Tax-Free Childcare – quarterly reconfirmation process

Tax-Free Childcare is a government scheme that helps working parents, including the self-employed and company employees, with their childcare costs.

If eligible, claimants could get up to £2,000 per child, per year to spend on qualifying childcare.

RECONFIRM YOUR CLAIM

To continue to get Tax-Free Childcare, parents must check and reconfirm their details with HMRC every three months. Whilst HMRC say they will send a reminder when they need to do this; it is the parent’s responsibility to reconfirm on time.

Reconfirmation is simple and quick to do, but some parents are still failing to complete this process correctly or on time.

REMINDER

This is a reminder to parents to reconfirm their eligibility to ensure that they keep getting Tax-Free Childcare.

  • To reconfirm successfully, claimants need to:
  • click on ‘Reconfirmation’ in your childcare account(s)
  • click on the ‘continue’ button to see ‘Your reconfirmation summary’ (this shows the details you gave when you applied or last reconfirmed)
  • check their details are correct and are expected to remain the same for the next three months
  • read the ‘Declaration’ then click the ‘Accept and send’ button.

Your reconfirmation will be successfully filed when you see the ‘Thank you’ screen.

You will also receive a secure message in your childcare account about their eligibility.

CHECK

You can check your reconfirmation date at any time in your childcare account(s).

DON’T MISS OUT

Make sure that you are not missing out on Tax-Free Childcare.

CLAIM CHILD BENEFIT AND PROTECT YOUR STATE PENSION ENTITLEMENT

Making a claim to Child Benefit can help protect entitlement to the State Pension.

Child Benefit is a universal benefit payable to families as a contribution towards the cost of raising a child or children.

It is paid to a person who is responsible for a child under 16 (or under 20 and in approved education or training).

The weekly rate is £20.70 for the first child and £13.70 for each additional child. In addition to the payments, until the child is 12 years old a Child Benefit award also provides National Insurance Credits to the person who made the claim.

These National Insurance Credits can help protect entitlement to the State Pension.

Only one person can claim Child Benefit for a child.

For couples with one partner not working or paying National Insurance contributions, making the claim in their name will help protect their State Pension.

Even where the working partner claims Child Benefit, there is scope to transfer the National Insurance Credits and change who gets Child Benefit to protect the non-working parents State Pension.

If you receive Child Benefit payments, and you or your partner’s income is over £50,000, you may have to pay the High Income Child Benefit Charge.

The charge increases gradually by 1% for every £100 of income over £50,000.

At £60,000 the charge is equal to 100% of the Child Benefit entitlement.

However, you may claim Child Benefit and choose not to receive the payments, which means you will not have to pay the charge but still receive the associated National Insurance Credits and protect your State Pension.

If you have any queries regarding your tax affairs, contact Paul Southward.

Paul Southward


Key Guides January 2019


Key Guides January 2019

KEY GUIDES JANUARY 2019

Updated Key Guides now available

We are delighted to make available to you our updated and freshly designed Key Guides.  There are eleven updated Key Guides publications, covering a wide range of topics that we hope you will find interesting.

Each guide offers you an essential introduction to a key topic of financial planning, covering the latest developments announced in the 2018 Budget, and coming in to effect in April with the new tax year.

With key headline announcements coming into effect in April, such as the personal allowance increasing ahead of schedule, it is just as important as ever to make sure you are getting the latest advice. With the new tax year bringing deadlines for key allowances, you should make sure you’re making the most of the opportunities available to you.

Our updated Key Guides include: –

  • The 2018 Budget: With changes announced to the personal allowance, income tax thresholds, capital gains tax, property transaction taxes and more, our full set of guides covers the latest tax situation.
  • Updated planning points: Our handy pop-out tips have been updated across the range, helping you to ask the right questions about your financial planning.

The Key Guides are designed to give an insight into each topic covered and highlight some of the more important issues.  If you need any further information on any of the topics covered, contact Paul Southward or your usual KSK contact.

The download to each of the updated Key Guides can be found here: –

INVESTING TAX EFFICIENTLY

Key Guide – Investing Tax Efficiently

MAKING TAX DIGITAL

Contact: Paul Southward direct for the latest news and updates on preparing your business for Making Tax Digital

PENSION TAX PLANNING FOR HIGH EARNERS

Key Guide – Pension Tax Planning

MAKING THE MOST OF FRINGE BENEFITS

Key Guide – Fringe Benefits

STARTING AND SELLING A BUSINESS

Key Guide – Starting and Selling a Business

STRATEGIES FOR A HIGH TAX ENVIRONMENT

Key Guide – Strategies for a High Tax Environment

TAX ALLOWANCES FOR BUSINESS INVESTMENT

Key Guide – Tax Allowances for Business Investment

COMPANIES – TAX EFFICIENT PROFIT EXTRACTION

Key Guide – Accessing your Company Profits

TAXATION OF PROPERTY

Key Guide – Taxation of Property

WORKING THROUGH PERSONAL SERVICE COMPANIES

Key Guide – Personal Service Companies

ESTATE PLANNING FOR YOU AND YOUR FAMILY

KEY Guide – Estate Planning

If you have any difficulties accessing the Key Guides or have any queries, contact Paul Southward.

Paul Southward

Paul Southward


Updated Key Guides published 23rd August 2018


Updated Key Guides published 23rd August 2018

UPDATED KEY GUIDES

Whilst most of us bask in the hottest summer for over half a century, the government is busy running consultations and trying to prepare for what Brexit will eventually mean. But that is no reason for us not to be busy, whilst we await the announcements of the Budget, and the result of the negotiations.

The latest update for our Key Guides series brings you fully revised guides giving you essential explanations of key topics across business, tax and retirement planning. We understand how confusing it can be to get a clear understanding of how complex rules and reliefs affect you, so our guides will give you everything you need to get started in one place.

Our current update includes new examples, tables, graphics and case studies throughout, to make each topic as accessible and easy to get to grips with as possible. The new range will give you real world examples of complex rules and calculations, including fresh advice on inheritance planning and gifts.

Investing tax-efficiently

  •  New example on timing of CGT gains and losses
  •  Added reference to the OTS review of savings and investment income tax

 Making Tax Digital

  • Updates on latest timetable announcements from HMRC
  • Updated section on MTD pilot schemes
  • Restructured to focus on VAT and preparing for MTD

Pensions tax planning for high earners

  • New clarification and example on tax on pension withdrawals
  • New example on SIPP borrowing for property investment
  • Clarification on income tax relief on contributions in Scotland

Starting and selling a business

  • New tables covering:
  • Business financing options
  • Advantages and disadvantages to limited company structure
  • Payment options on sale of a business
  • Loan notes
  • VAT treatment of going concerns

Strategies for a high-tax environment

  • New example highlighting differing CGT rates between residential property and other assets
  • New graphic on maximum tax-free income allowances
  • Updated OBR forecasts

Working through personal service companies

  • New table summarising tax deadlines for deemed salary under IR35 rules
  • Restructuring of ‘Tax planning and pitfalls’ section
  • Summaries of recent IR35 rulings
  • New section on consultation on IR35 rules in the private sector

Estate planning

  • New example on the application of lifetime gifts and gifts from normal income

The latest Key Guides can be downloaded here:-

Tax Planning for High Earners

Tax Planning for High Earners

Estate Planning

Estate Planning

Making the most of Fringe Benefits

Making the most of Fringe Benefits

Strategies for a High Tax Environment

Strategies for a High Tax Environment

Investing Tax Efficiently

Investing Tax Efficiently

Making Tax Digital

Making Tax Digital

Personal Service Companies

Personal Service Companies

Starting and Selling a Business

Starting and Selling a Business

For more information contact Paul Southward or your usual KSK contact.

Paul Southward