Pension changes – are you prepared?

With the last budget announcing positive changes for pensioners and savers, do you know how this will affect you? As of 6th April 2015, anyone wishing to access funds from their pension will only have to pay their marginal rate of income tax, as opposed to the previous rate of 55%. Accessing the first 25% of your pension remains tax free.

With the amount you can now draw down as one lump sum, or small pot, also increasing from £2,000 to £10,000, it is becoming even more important to seek professional financial advice. At Howell & Co, we can offer impartial guidance on what’s best for you; whether that’s purchasing an annuity; drawing down funds as and when or in one lump sum.

Personal tax returns – act now!

If you are self-employed, a company director or have property income or capital gains then you must submit a personal tax return and the deadlines are imminent! Paper returns are due by 31st October this year and online returns are due by 31st January 2015.

With the 31st October paper deadline looming, it’s really important to register with HMRC for online filing if you need more time to complete your return. Any online returns filed after the 31st January 2015 deadline will be subject to a late filing penalty, which can be easily avoided if you plan ahead. Howell & Co can offer advice and guidance on your personal tax liability, all relevant deadlines, as well as ensuring you are registered with HMRC.

Please note, if you want any tax due to be collected through the 2015 tax code, then your tax return has to be submitted online earlier, by 31st December 2014.

Are you prepared for flexible working?

The new Flexible Working Regulations came into effect on 30 June 2014 extending the right to request flexible working to all employees who have been employed for 26 weeks, not just those with parental or carer responsibilities. Employers must know what to do should they receive such a request.

Applications must be in writing setting out the type of flexible working arrangement, when the proposed change would start and how the employer might cope with the change to working hours.

Employers have a duty to consider all requests in a reasonable manner. This involves:
– Weighing up the advantages to the employee against any difficulties for the employer
– Arranging a meeting with the employee to discuss the request
– Dealing with requests promptly
– If the request is refused then reasons must be given in writing
– Having an appeals process in place

To refuse a request the employer must base their case on one of the grounds set out in the legislation, such as the burden of extra costs, the detrimental effect on the quality, performance or service of the business or the inability to provide the necessary staff cover.

This legislation applies to all employers so they need to be prepared and know how to react should they receive a request. Please contact us for more information.