The temptation to draw a sum of your pension before you hit 55 can be all too much for some. Companies have latched onto the idea of 'early pension release' and those enticed in are losing out on huge sums of money. While this isn't technically illegal, they will often hide the terms and conditions of your withdrawal within the small print of their policies. Here are a few things to look out for:
Tapping into your pension before you turn 55 will result in fees. Pension providers may charge you up to 30% on the total sum you withdraw which is a considerable chunk of money to miss out on. Further to this, the pension provider is then required (by law) to notify HMRC that you have withdrawn money from your account. This will be followed by a hefty 55% tax on the remaining amount you're left with after the previous 30% cost was incurred. Whether you felt you were aware of the potential costs or not, HMRC will require you to pay up. You can offer to pay the money back into your pension fund if you are yet to spend it but under certain circumstances, you will not be allowed to do so.
'I really need my pension before turning 55'
There are 2 exceptions where you may avoid fines:
1) you are severely ill and need to retire early for health reasons.
2) you had previously declared a 'protected retirement date' which brought the date of withdrawal forward. This had to have been created before 06/04/2006. This pension privilege is reserved for those in professions that are unrealistic to be in until the standard retirement age.
In both these cases, your money would be released to your directly from your pension provider.
After the age of 55, you are able to withdraw money from your pension plan whether you are officially retired or not. You can withdraw up to 25% entirely tax-free!
The October 15th US tax deadline is just around the corner. Below we have put together a brief outline of how to get started and avoid the harsh penalties of the IRS’s long arm:
Inspired off of the Jean Royère’s furniture designs we went to see yesterday (pictured above) in the spirit of London Design Week, we have put together a brief guide for our clients on some of the expenses you can claim as a furniture designer.
There are generally much expenses incurred while working as a furniture designer than other freelance professionals. For instance, the cost of raw materials and machinery. Raw materials and any equipment required to assemble the furniture are all claimable against tax, assuming that you are buying both.
If you are based in the UK and your employees are working abroad there are slightly rule surrounding PAYE and NIC depending on where your employees are working and how long you expect them to work there.
A confirmation statement is a form that was introduced to replace the annual return (AR01) in June 2016. The purpose of a annual confirmation statement is to verify important company data registered on Companies House to ensure it is correct and up to date.
As a business owner, you are responsible for ensuring your business is compliant and reaches relevant accounting deadlines. Your business accounting period for Corporation tax is covered by your Company Tax Return.
We have worked with thousands of self-employed Marketing Consultants on their tax returns over the years. Through our years of experience, we have developed an in-depth, expert knowledge of the claimable tax expenses and deductions available to Marketing Consultants.
The HMRC have released figure as a result of a Freedom of Information request that shows a double in reports to the HMRC tax evasion hotline for the 2017-18 tax year.
For the 2017-18 year, a total of 40m695 tax evasion reports can be counted on the hotline. This is a rise by more than double, with tax evasion hotline reports sitting at 20,200 for the previous year.
To celebrate the 100-year monument of women winning the vote, the BBC have introduced the Hear Her campaign. The campaign showcases women’s voices through a mixture of TV, radio and online to mark 100 years since suffrage and the centenary anniversary of women being able to vote in the UK.
If you are married or in a civil partnership you may be able to claim an allowance of £900 against tax as a marriage tax allowance. This is a widely under claimed allowance.
Marriage tax allowance allows couples to transfer up to 10% of their earning between them tax-free.
Payroll is a huge part of running a business. PAYE is the typical method used by employers for payroll.
What is PAYE?
PAYE is the HMRC’s system to collect Income Tax and National Insurance from employment. You are not required to register for PAYE if none of your employees earn over £116 per week, get expenses and benefits, have another job or get a pension.