Osbourne's tax relief changes in the March budget

EdSwippet

The Police Superintendent’s Association of England and Wales apparently believes that police officers should be given a special lifetime allowance protection regime, above and beyond the FP16 that will be offered to the rest of us:

http://www.policesupers.com/wp-content/uploads/2015/05/Letter-to-HMRC-April-2015-re-LTA-protection.pdf

"In view of the disproportionate and unfair impact upon our members that will result from this reduction in LTA, we contend that a new form of protection is required that is made available to police officers, other than simply replicating either Fixed Protection or Individual Protection 2014."

Hmmm.

kidmugsy

EdSwippet wrote: »

The Police Superintendent’s Association of England and Wales apparently believes that police officers should be given a special lifetime allowance protection regime, above and beyond the FP16 that will be offered to the rest of us

Cheeky !!!!!!s: who do they think they are? Judges?

BobQ

So if a 40% tax payer has their employers contribution added to their salary and the same contribution gets (say) 25 % tax relief which is then taxed at 25% when drawn....... how many will opt out of the pension? Or will the employer's contribution only exist if used to invest in the employer's pension scheme? Or could the employee invest it in another pension or an ISA?

They are really determined to make it as complicated as possible!

RickyB2000

It will also make.self assessment more complex if.they don't wait.until the new tax year - pension contributions to 16th March, pension contributions after 16 March. 5 April feels more appropriate as it means.people don't get another years worth of contributions if they do want to rush it through but things are a but simplier for.everyone.

gadgetmind

BobQ wrote: »

They are really determined to make it as complicated as possible!

It reminds me of when the Special Annual Allowance came in part way through the tax year. Working out whether you'd gone past the threshold and would be taxed on pension contributions was rather difficult.

And let's not make bones about it, restricting tax relief is another word for taxing pension contributions. People will see deductions, people will go into higher brackets, and people will have to write cheques.

Other people will see their contributions boosted thanks to the magic money tree aka robbing Peter to pay Paul.

Triumph13

My bet is on a change from either 5 April 2016 or 2017, probably the latter if major payroll changes are needed, but with anti-forestalling legislation effective from the budget day modelled pretty well exactly on the 2009 rules ie no increases of contribution rates. It's a bet I'm taking up by opening a separate private pension and banging in the maximum for 40% relief before budget day. I agonised long and hard on this one as a) I lose out on salary sacrifice NI savings on this, and b) if he goes for a further reduction in LTA I may be stuffed, but I think the balance of probabilities this time around is very clearly in favour of a reduction in tax relief % and/or a big reduction in the annual allowance - hopefully coupled with a scrapping of the LTA for DC schemes.

Rich2808

RickyB2000 wrote: »

It will also make.self assessment more complex if.they don't wait.until the new tax year - pension contributions to 16th March, pension contributions after 16 March. 5 April feels more appropriate as it means.people don't get another years worth of contributions if they do want to rush it through but things are a but simplier for.everyone.

Given how these apparent plans have been trailed in the media for weeks I would have thought most people who would be affected by the changes would be aware of them and be taking appropriate plans before 16 March.

How much realistically are people affected by the change going to put in between 17 March and 6 April - those who could would have done so before hand. And it's really too late to alter salary payments for employees for the tax year.

They gave the buy to let landlords months notice of the impending tax changes - given this is going to be as unpopular in middle England I would assume there would be a change from 6 Aprils with possibly transitional limits until then.

Oh for the old days when if the Chancellor and his team leaked budget plans before the day they resigned!

kidmugsy

Triumph13 wrote: »

no increases of contribution rates.

Happy the man who last year made a big contribution!

RickyB2000

Exactly.

I was actually thinking about adjusted salary calculations. If £1000 of pension.contribution to 16th March reduces my salary by £1000 for.things like personal allowance and child benefit claw back, what does my £1000 pension contribution after 16th March do? How do I report this to the taxman?

Can't see it from immediate effect personally.

michaels

I would be very happy to be allowed to contribute the same next year as this.

However an annual cap of say 20k going forward could be extremely costly to me because of the child benefit thang, similarly everything being counted initially as pay followed by a reclaim of only 25% which I think is not that unlikely.

Edit: To be on the safe side I am going to see if my month contribution for March could happen prior to the 16th