Last week the Home Secretary, Priti Patel announced a new points-based immigration system as part of the post-Brexit reform. This will bring an end to the free movement of labour and will come into play from the 1st January 2021 but this could lead to a shortage of staff in the social care sector which foreign workers currently make up a sixth of.
If you are planning on passing wealth on to children or grandchildren you might be asking yourself how can I pay less inheritance tax? A bit of careful planning could mean more ends up in the hands of your loved ones.
Working out how much money might be spent in retirement was a concern that 52% of survey respondents had. So some forward budgeting seems to make sense.
After all, you may have plans to spend some of your retirement on such things as spending more time with family members or travelling for holidays.
The taxation system seemed to present a problem as well, with 54% of survey respondents concerned about “managing the tax implications of withdrawing from multiple accounts”. Sometimes referred to as the “income batting order”.
The economic impact of the Coronavirus has been mixed thus far, but we believe it will have long-reaching, knock-on effects to the greater Asian region. It is thought that the People’s Bank of China (PBoC) are likely to provide liquidity, to ease funding conditions in Chinese money markets in an effort to tackle downside risk posed by the virus and that further measures to support the economy could follow.
People tend to have some varied views about the subject of Inheritance Tax and about how bothered they are about trying to reduce the amount due on their estate by undertaking Inheritance Tax Planning.
Either they feel that it is a horrible tax that deprives the next generations of hard-earned money and wants to do everything possible to mitigate or avoid (avoidance is legal, its evasion that isn’t!) paying the tax.
Or they might take a more relaxed view along the lines of, “my children are going to inherit far more than I ever did even after the tax has been paid.”
This latter group are sometimes described as people who like HMRC more than they do their kids! After all, inheritance tax on death has a rate of 40%, and that means two children inheriting will only get 30% each!
The ineffectiveness of monetary policy to bolster further economic growth has led many market participants advocating a pivot to fiscal policy to pick up the slack. Governments in the UK and Europe seem to be gradually moving to take advantage of low interest rates for infrastructure spending. In addition, left wing economic policy is coming more into fashion around the globe, Bernie Sanders is leading the polls in the democratic primaries and over the weekend the Irish electorate returned Sinn Fein as the largest party in a general election. We continue closely to monitor policy makers preferences for economic stimulus and how markets will react.
Are you paying the right amount of income tax each year?
Paying too little tax is a huge problem, which will inevitably result in HM Revenue & Customs launching an investigation. But paying too much tax is a problem also.
According to a new Freedom of Information Request, submitted by insurer Royal London, around 460,000 people chased HMRC for refunds on their overpaid tax in the 2018/19 tax year. As a result, Royal London is urging taxpayers to double-check their payments, to find out if they have overpaid tax. Reasons for paying too much income tax include changing jobs in the year or changes to taxable benefits.
Today we could have written about the United Kingdom no longer being part of the European Union, as Friday saw us exit, but without any clarity around the trade relationship for the future.
This is the start of the long journey towards clarity around how we will interact with Europe going forward.
We could have written about Mark Carney’s last Monetary Policy Committee as governor of the Bank of England.
What options are available for people who retire without enough savings?
You might continue working. Delaying retirement by working longer gives you the option to save more, and means your savings don’t need to stretch quite as far when you eventually retire.
Alternatively, you could reassess your lifestyle and spend less in later life. Cutting back on expenditure in retirement isn’t always the answer, as some expenses are unavoidable.
but what does the research say people are doing?
The World Health Organisation have called for emergency action in China following 830 confirmed cases with 41 deaths reported so far. The Chinese city of Wuhan, home to some 11 million people has been inundated with new patients seeking treatment.