As mentioned in our newsletter last week.. Please see below some of the ways you can save your tax benefits.
- Husband and wife partnerships should possibly, where appropriate, share their allocation of profits, so that each has a profit share not greater than £50,000!
- Do similar planning regarding Loss Claiming options, Timing of expenditure, Claiming capital allowances etc., etc!!
If you’re in this situation, please talk to us and we can assist you. We suspect that many taxpayers will find it very difficult to understand how this rather convoluted new income tax charge will apply to them. We are told that the charge will be collected via PAYE or self assessment. If collected by PAYE it is hard to see how the adjusted net income will be accurately calculated by HMRC before the end of the tax year.
An individual needs sufficient qualifying years in paying National Insurance contributions to qualify for the full state pension.
A mother who is at home, looking after children, is eligible for credits towards her NIC history i.e. Home Responsibilities Protection.
A year of qualifying for HRP means a qualifying NIC year towards the state pension. One of the criteria of qualifying for HRP is that she is claiming child benefit. Accordingly, the new child benefit rules could have a negative impact on this (if she has disclaimed child benefit), and so indirectly affect her state pension entitlement.