Do you make payments for expenses or provide benefits?

Do you make payments for expenses or provide benefits to employees/directors?

 

Then by law you need to complete and submit a P11d form to HMRC for each employee that has received the benefits and a P11d(b) to summarise the class 1A NIC due by 6th July 2015 to avoid any penalties.

 

The forms are required to disclose the value of any expenses and benefits that have been paid during the year to employees/directors, or their family or household.

 

The most common examples include:

– Reimbursed expenses

– Employment benefits – gym memberships/health insurance

– Business entertainment and travel expenses

– Company car and fuel benefits

– Directors’ beneficial loans

 

Some of these benefits will result in a Class 1A NIC charge to the company, if there is any Class 1A NIC to be paid, this needs to be paid by 19th July.

 

Completing the annual return of benefits and expenses form P11d carries many risks. A late or incorrect submission or failure to submit can result in hefty penalties and perhaps even result in a HMRC PAYE compliance review.

 

So make sure you note everything on the form and submit it by the deadline date.

 

If you require any assistance or have any queries then please get in touch – I can be contacted on:

saral@clayshawthomas.com or by ringing 01656 867167.

5 QUESTIONS TO ASK YOURSELF ABOUT PLANNING YOUR FINANCES

 

  1. What are you trying to achieve from your planning, both in business and in life?

Perhaps a happy and fulfilling retirement, buying a holiday home abroad, protecting your family/business or ensuring your estate passes to the next generation efficiently.

 

  1. Are you on track to achieve your goals?

You may be contributing to a pension, have a couple of old protection policies and be topping up your Cash ISA each year, but do you know what the end result of this will look like? Are you contributing enough? Or too much? Do your protection policies cover the right things and for the right amounts?

 

  1. What is stopping you from achieving your goals; or, what could stop you from achieving them?

How long would your savings last if anything were to happen to you or another member of your family? Does your business rely on a handful of key staff members that generate income/new business?

 

  1. Are you planning efficiently?

We are able to help you make the most of the current legislation, in order to make sure that you keep more of what you earn or make it work harder for you . Furthermore, in retirement we are able to develop a bespoke tax efficient income strategy to meet your needs.

 

  1. Are you making the most out of your business?

You could enhance your planning by using your business to fund things like your pension and some of your protection policies; this could save you more tax than you might think.

 

If you would like to talk to one of our team about your finances and creating a financial plan, please get in touch. Contact details can be found on our Meet the Team page or by contacting us via  info@cstwealth.co.uk or 01656 867167.

 

This article is for information only and does not constitute financial advice. Please contact your usual adviser at CST Wealth Management Ltd if you have any questions relating to your own personal circumstances or if you would like to make an appointment to discuss your financial plan. Contact details can be found on our Meet the Team page or by contacting us via  info@cstwealth.co.uk or 01656 867167.

The Financial Conduct Authority does not regulate tax advice.

CST Wealth is the trading name of CST Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority.

PENSION FREEDOM OR PENSION HEADACHE?

The media has provided a constant flow of news about the new pension income freedoms. If you haven’t heard, everyone at retirement age is now entitled to draw as much or as little from their pension as they like. The popular concern in the press is that people will go and withdraw everything and buy a house, or buy a car; we on the other hand believe that those who have worked hard to build a fund will spend their pension wisely. However, it might not be as easy as you think to access your funds and many pension providers have not updated their schemes to allow all of these new rules.

  • Have you checked if your pension will offer flexible income?
  • Will they be able to tailor an income strategy to meet your needs?
  • Have you nominated a beneficiary for your pension in case you were to die?
  • Did you know that some providers will only pay a cash lump sum to your beneficiary on your death, potentially causing a tax charge rather than the pension being passed on to your beneficiary as a pension?

Many of our clients are now asking us to conduct pension reviews for them to ensure that their pension will offer them the best possible retirement. Speak to us today to find out more.

This article is for information only and does not constitute financial advice. Please contact your usual adviser at CST Wealth Management Ltd if you have any questions relating to your own personal circumstances or if you would like to make an appointment to discuss your financial plan. Contact details can be found on our Meet the Team page or by contacting us via  info@cstwealth.co.uk or 01656 867167.

The Financial Conduct Authority does not regulate tax advice.

CST Wealth is the trading name of CST Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority.

 

How Much Income Will I Need in Retirement?

Everyone’s idea of what income is needed to provide you with an ‘acceptable standard of living’ in retirement is different. In addition, no estimate remains the same for long as prices and the cost of living change year-on-year. However here, drawing upon published material from Standard Life and the Joseph Rowntree Foundation (JRF), we look at some estimates and invite you to look at how your hopes and expectations for quality ‘Golden Years’ in your retirement, stack up.

The Rowntree Foundation figures, from surveying members of the public, suggest that the income needed for a single retired person to gain an ‘acceptable standard of living’ is £9,500 p.a. (the basic State Pension currently provides around £5,880 p.a.). What expenditure the JRF believes should be part of your ‘acceptable standard of living’, beyond paying for food, energy and shelter etc, includes:

  • Buying birthday presents.
  • One week’s holiday in the UK per year.
  • Six day trips per year-on-year.
  • Enough to buy alcohol and visit the cinema.
  • To have a mobile phone, a DVD player and a fridge-freezer.
  • JRF also assumes within its calculations that any mortgage debt will have been paid off.
  • What the JRF £9,500 calculation does not allow for, includes:
  • A car – assuming the use of public transport.
  • The cost of internet access and paid for TV films or sports channels.
  • A dishwasher.
  • Cigarettes.
  • An assumption that less than £20 p.c.m will be spent on eating out.For your ‘Golden Years’ in retirement
  • The JRF survey calculations ran several ‘add-on’ calculations to their survey, as well as providing information suggesting that retired people living as a couple needed £13,700 p.a, compared to the £9,500 p.a for a single person.
Add to basic £9,500 p.a your choices… Estimated cost p.a Income after tax, now needed p.a
Add two weeks holiday each year Add £2,875.00 £12,375.00
Add four weeks in the sun each winter Add £5,500.00 £15,000.00
Add a car with a five yearly upgrade Add £7,462.50 £16,962.50
Add annual Health Club membership Add £750.00 £10,250.00
Add a concert, play or show once a month Add £1,500.00 £11,000.00
Add a weekly dinner or drinks with friends Add £2,250.00 £11,750.00
Add shopping trips for you and the family Add £1,875.00 £11,375.00
Add home improvements Add £3,750.00  £13,250.00

If your ‘acceptable standard of living’ for your Golden Years includes all of the above, then the JRF calculations tell you that you will need a personal disposable annual income of £35,462.50! Will your pension pot, pension entitlement and savings deliver your ideal Golden Years experience? If not, then it is not too late, but the time to start planning and saving may well be now!

 

Sources: www.jrf.org.uk; www.standardlife.co.uk (Published data and commentary: January 2015)

 

This article is for information only and does not constitute financial advice. Please contact your usual adviser at CST Wealth Management Ltd if you have any questions relating to your own personal circumstances or if you would like to make an appointment to discuss your financial plan. Contact details can be found on our Meet the Team page or by contacting us via  info@cstwealth.co.uk or 01656 867167.

The Financial Conduct Authority does not regulate tax advice.

CST Wealth is the trading name of CST Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority.

 

 

Retirement planning – sit back and enjoy life

Planning ahead for your retirement will leave you feeling less stressed and be able to enjoy the years you are still working. Read our Top 10 Tips.

 

1. Think about how long you might live

It’s something most of us don’t want to think about or indeed don’t. But when you think about it, it makes sense. To help us, Government data from the Office for National Statistics suggests that the average man will live 18.2 years after the age of 65 and the average woman 20.7 years.

Planning for our retirement years is crucial not to underestimate how long you might be around for or you could end up spending your pension savings too quickly.

 

2. Don’t pay more tax than you have to

You may be thinking about making the most of new pension freedoms by withdrawing a lump sum from your pension. It would be worth considering whether you might be better off taking an income in stages to use tax bands effectively. Withdrawing the whole amount could mean you pay the top tax rates.

 

3. Make the most of tax-free cash

You can withdraw up to 25pc of your pension once you reach the age of 55 entirely tax-free. There will be tax to pay on any amount you withdraw over this limit.

 

4. Look at the charges you are paying on your pension

If you are considering transferring your pension to a scheme with lower charges, check first whether you will have to pay any exit fees. The more you pay in charges the less remains in your pension pot.

 

5. Find out how much state pension you might be entitled to

The state pension alone certainly will not provide you with a prosperous retirement, but it can boost your income every month.

You can get an estimate of how much state pension you might be entitled to at www.gov.uk/state-pension-statement

It’s important to know that you can increase your state pension by deferring it.

 

6. Check your pension investments

Don’t just pile money into your pension without knowing exactly where it is being invested. You should regularly review these investments so that they stay in line with your risk profile and objectives.

 

7. Track down old pensions

Most of us will have worked for a number of employers over the years and it can be easy to lose track of old pensions. You can find old pensions through the Pension Tracing Service.

 

8. Review other savings and investments

If you have got savings and investments, make sure they are working as hard as possible for you. Compare rates paid on your savings accounts with those offered by alternative providers and move your money if higher returns are available elsewhere.

 

9. Do you have any other income

Do you have any income from other sources such as consultancy jobs, part-time work or rental income from property?

 

10. Seek professional advice

Retirement planning can be confusing and with the law changing it can seem like a monstrous task. Getting independent financial advice will be one of the best decisions you make.

 

We can help you maximise the pot you get in your retirement by helping you plan effectively.

 

Your initial consultation is free of charge. You have nothing to lose so get in touch today. I can be contacted on gwyn@cstwealth.co.uk or 01656 867187.

 

This article is for information only and does not constitute financial advice. Please contact your usual adviser at CST Wealth Management Ltd if you have any questions relating to your own personal circumstances or if you would like to make an appointment to discuss your financial plan. Contact details can be found on our Meet the Team page or by contacting us via  info@cstwealth.co.uk or 01656 867167.

The Financial Conduct Authority does not regulate tax advice.

CST Wealth is the trading name of CST Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority.