Keeping up to date with the current taxation system is vital to wealth management and Enable’s IFAs in Bishops Stortford like to make sure they say abreast of any change and work with client and their accountants to get things right. In this year’s Autumn statement it is clear that those who use tax avoidance schemes will be challenged. The Chancellor said that, to tackle tax avoidance, the Government would “strengthen sanctions and deterrents” and will take further action on disguised remuneration tax avoidance schemes.
It is good to see the continued commitment to raising the tax-free personal allowance as it moves to £12,500 adding £1500 onto the tax-free amount we can earn in a year. He also reconfirmed that the threshold for higher-rate tax would move to £50,000. After 2020 it seems these thresholds will rise in line with the consumer prices index. Continuing what was announced in the Budget, Class 2 National Insurance contributions will be abolished in April 2018, which will simplify National Insurance for the self-employed. And the National Insurance threshold for employees and employers will be aligned at £157 a week at no cost to workers.
There had been fears that those who are made redundant would have to pay tax on termination payments but the first £30,000 of termination payments will remain tax-free. But as announced in the last Budget, from April 2018 termination payments over £30,000, which are already subject to income tax, will also be subject to employers’ National Insurance contributions. Subtle changes can have an impact on your financial planning so Enables IFAs are here to talk them through.
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE