Up to 800,000 pensioners could be paying too much tax on their pension income, says the Telegraph. This is because the wrong tax codes are being used by HMRC, usually because the individual has more than one source of income.
In this case, if the first – say a part-time job – is regarded as the main source of income, the personal income tax allowance is set against that, and then any other sources of income have tax at 20 per cent deducted at source. This is what often happens to withdrawals from personal pension accounts. It’s important to check the codes and tax payments, says the Telegraph: you can’t assume HMRC have got it right.
The end of the triple lock – what will it cost pensioners?
Will the Conservatives abandon the ‘triple lock’ – the promise that the state pension will rise by the highest of one of three measures: wage growth, inflation or 2.5pc? And if they do, what could this cost pensioners? The Telegraph got experts to crunch the numbers and showed that if the state pension had risen only in line with prices since 2010, it would now be £365 a year lower than its current £6,253 level. One pointed out that thanks to changes in the structure of the state pension, it will cost the government £8 billion less a year so it could well afford to keep the triple lock in place.
Smarter ways to meet the school fee bills
Despite average annual fees of £14,100, a record number of children are in private education, says the Telegraph. But the cost pressure means more families can only afford a shorter period of private schooling, with the pupil numbers rising sharply from year 7 (the start of secondary schooling). Save early, says the Telegraph – £200 per month over the first 12 years of a child’s life with a 4 per cent return accumulates a lump sum of £37,000, almost half the fees needed throughout secondary school. And if grandparents face inheritance tax bills, it can make sense for them to make gifts early to pay for the fees.
Tax breaks lure buyers to Portugal
Portugal offers not just great beaches but great tax breaks, says the Telegraph. Its Non Habitual Residents (NHR) scheme is a lifestyle option with tax perks. If you spend at least half the year in Portugal, you become a tax resident there and the fiscal benefits include no tax on your pension or investment income for 10 years. Properties in Portugal’s cities are increasingly sought by foreign buyers.
Financial Advice Bristol
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