Reviewing your pension position is always a good idea before the end of a tax year. As we are approaching the end of the 2015/16 tax year now is a very good time for giving this some thought. Making contributions can preserve personal allowances for anyone whose income is above £100,000. Pension contributions can be made tax free up to certain limits. These limits are as follows:
- 100% of the earnings for the tax year. You cannot claim relief for more than total relevant earnings for the year
- Up to the £40,000 annual allowance; and
- £1.25 million during the individuals lifetime i.e. the lifetime allowance.
Contributions that exceed the above limits can be subject to tax. The annual allowance or any part of the annual allowance that is unused from the previous three tax years may be added to the annual allowance of the current year. If no contributions have been made in the three previous years it may be possible to make a contribution equivalent to four years’ annual allowance provided there are sufficient earnings to cover the contribution. The annual allowance for 2011/12 and 2012/13 was £50,000 and for 2013/14 was £40,000.
Remembering in the Autumn statement the Pension Input Periods (PIPs) were reset to 5th April, now is the time to take advantage.
Given that Budget Day is set at 16 March 2016, which may include immediate changes to tax relief on pension contributions, it is advisable to consider making use of the above allowances before that date.
The Government announced at Autumn Statement 2015 that the current two year temporary reporting relaxation will end as planned on 5 April 2016. The relaxation permitted employers who at 5 April 2014 employed no more than 9 employees, to report their PAYE information for the tax month ‘on or before’ the last payday in the tax month instead of ‘on or before’ each payday. This will align the reporting obligations for micro employers with all other employers who are currently required to report payments ‘on or before’ each payday. As a consequence ‘Late reporting reason code E’ will not be valid from 6 April 2016.
From 1 January 2016, Boyd Coughlan Accountants Ltd is rebranding to Courts Accountancy Services Ltd. We will be trading under the names, Courts Accountancy Services and Courts Accountants.
If you are a client of Boyd Coughlan Accountants, we want you to know that this will be very much business as usual; we will retain the same team and core values, and you will be able to access the same services, in exactly the same way as you do now.
More than just a change of name, we are growing the business with more staff, associates and clients. We will now operating out of the ground floor offices at Investment House.
Due to the rebrand, the Courts Accountancy Services website will be going through some navigational changes, showcasing our wider offering for existing and potential clients.
This is an exciting step forward for the business and these changes are inevitable in building a new-style 21st century accountancy practice that will cater to clients’ needs and help them build a wealthier future.
If you have any questions regarding the rebrand, please do not hesitate to email us at: email@example.com