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The_Doc

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  1. Any LTA charge is only paid on the amount over the LTA (at the point of crysallisation of that part) and not the whole pension pot. The 55% tax charge only applies if the pension is taken as a one off lump sum. If you take it as income then the charge is 25% and you then pay income tax (which could be 0, 20% or 40% depending on your marginal rate at the time). So the best way to take it is as income, pay LTA charge at 25% plus marginal income tax rate (over several years). If you are ever over the LTA and the BK hits, then that would be the time to crystallise the pension as any LTA char
  2. What the BBC article actually said: "Ministers have defended the decision over the coal mine as a local planning matter, but have stressed that industries such as steel production require coking coal - which would have to be imported if it was not produced in the UK. The mine will produce coking coal - a grade that is used in steel-making. Although 85% of it is destined for export to Europe, government sources hinted that a need for continuing domestic steel production was another reason for not opposing the mine." Whatever the rights / wrongs of that coal mine, at least the BBC
  3. Here is the longer term view https://news.sky.com/story/covid-19-how-mortality-rates-in-2020-compare-with-past-decades-and-centuries-12185275 "So actuaries have devised a measure called age-standardised mortality. This is perhaps the gold standard of mortality measurements - so what happens when one examines 2020 in terms of standardised mortality? Well, according to analysis carried out for Sky News by the Continuous Mortality Investigation of the Institute and Faculty of Actuaries, the deterioration in mortality during 2020 was almost without parallel." And the 2020 death
  4. Your Tax Code is displayed when you logon to the gov gateway. How quickly that gets updated on the website is another matter. Or you could call them to confirm.
  5. There is a way around this tax nightmare. Chris Dando from Burfield Financial Planning says he’s advising his clients to take a small payment first and wait for the tax code to adjust before taking another one. He told the Telegraph: “We are advising people to take a nominal payment. The first payment is taxed on an emergency basis as if it’s a regular payment. So, if we take an initial £100 or even £1 then HMRC will be aware and change the tax code accordingly. “This ensures the correct tax code is used from the first proper payment. The only downside is that it slightly delays
  6. Yep. When you take the UFPLS, you are essentially crystallising just part of it, leaving the rest as is. This will appears as separate "accounts" in HL or wherever you have it (one drawdown account and one uncrystallised SIPP). You can still add to £2880 each year to the uncrystallised SIPP.
  7. Never say never ;-) If you have been working of late (and paying some tax), you will have built up the ability to use your carry over to claim that tax back with the last 3 years excess allowances. Once you do an UFPLS that chance goes. I guess you will still want to make pension contributions of £2880 per year and claim the tax relief (even though you don't pay it). But I am sure you know all that.
  8. Be aware that taking an UFPLS will trigger the MPAA (money purchase annual allowance) so you could only put a maximum of £4000 per year into a pension going forward. As you know, pension contributions are the most tax efficient vehicle, so it may be wise to keep that option open to the max. If you crystallise portions, take the 25% tax free lump sum and leave the rest invested (i.e not actually drawn down), then you don't trigger the MPAA and you can still put an amount into a pension up to your earning limit for that year (or more if you use carry over).
  9. Hat tip to Noallegiance: Year to date... Powerhouse +1219% AFC +308% ITM +590% Ceres +395% I hope you folllowed through on these :-)
  10. An employee on £75K will not get anywhere near £750 per day these days. I have plenty of colleagues who have gone down this route so know what is being paid in Investment Banking. Even in the unlikely event they could get £165K , using company pension contributions, partner salary, (not even making use of carry forward pension annual allowances), the net take home pay of the contractor + partner would be £88K, plus a pension pot of £40K (as opposed to around £52K take homeif the employer was PAYE). HMRC take goes from £23K to £25K, admittedly more in this case. A more realistic £550 per
  11. A similar "scam" is all too prevalent in the private sector too. I worked for an Investment Bank, was made redundant. Within 9 months I was taken back on doing a very similar but slightly different role. I took home more as I became a Limited Liability Company contractor. The bank saved as it paid no Employer NICs or other employee benefits. We both gained. Who lost? HMRC. Or basically the tax payers. Out of my original team of about 10, this happened to 5 of us. It is endemic at least in the banking industry. And that is why IR35 is now happening.
  12. The multiple is 20 times. So a 52.75K pension will hit the current LTA limit of £1055000. Whatever way you put money into a SIPP, you get tax relief at your marginal rate. The key is to ensure you are just a basic rate tax payer when you come to take it. You get the benefit of the tax free lump sum (currently 25%), so you effective tax rate on the pension is 75% of 20% i.e. 15%. So tax relief of 20 or 40 or 45 or 60 on way in with hopefully effectively 15% on way out (plus your personal alllowance of course). All rules are subject to government change!
  13. If you earn over £100K, then pension contributions are a no brainer as you effectively pay 60% tax on income between 100K and 125K. Even if you don't earn over 100K, pensions are more tax efficient than ISAs as you are more likely to be a basic rate tax payer in retirement or if/when you retire early and pensions allow a tax free lump sum (currrently 25%). ISAs are then next in terms of tax efficiency but have have benefit of accessibility (before 55). Create SIPPs for the kids, as others have said, to get your free £720 per kid per year (although they can't access it until 55
  14. 'Interestingly, the GDP of California is greater than the UK, Texas and New York are both greater than Russia. I hadn't seriously considered that any US states would secede, but economics is probably not the limiting factor for some. Its more political. https://en.wikipedia.org/wiki/List_of_sovereign_states_in_Europe_by_GDP_(nominal) https://www.statista.com/statistics/248023/us-gross-domestic-product-gdp-by-state/
  15. From FT. BP and Repsol are onto Jefferies’ “buy” list in a sector review: Oil market fundamentals remain precarious but OPEC+ discipline and US declines should be supportive, and we raise our 2H Brent forecast to $43/bbl. We upgrade BP and REP to Buy and reinstate FP at Buy. Dividend risks are not off the table, but we believe valuation is supportive with the sector FCF yield at 8.3% on our 2021 estimates. Balanced on the precipice. Oil market fundamentals remain precarious and in the near term we believe that oil price risk is skewed to the downside by COVID-19 demand risks and
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