CF5 Advice

stu1234567

:cool:Thanks guys that's great! Just HRT payer I've yet to get to grips with:(
Argh it's tomorrow- not good!!!!
Mr_H hope ur all prepared, I'm not! Couldn't find those cii past papers but I did buy the case study book& got some other past papers, so fingers crossed that is enough!
Finding two things really hard at the minute- first question because I can't remember that many points about each product. Second quest the portfolio it all seems logical when they explain it but, they read into the case study in a way I never would. Assuming their atr & that they want x amount emergency fund& ignore some points& just don't mention them if they don't suit the case-prime example case study 9- half of monies accessible seems to have been ignored! They put it in ns&i certs since when are the accessible?!
Oh well better get on with the revision, last day-woo hoo!
Good luck mr_h!!

stu1234567

Aegis wrote: »

Relief at source:

Contribution is paid net of basic rate tax. The basic rate tax is then reclaimed by the pension provider and paid directly into the policy. Higher rate tax relief is claimed back from HMRC by the contributor.

Net Pay:

Contribution is paid gross from salary, no reliefs need to be claimed.

Hi just wondered does the net pay one mean they change your tax code?and the relief at source on mean they add the amount to ur basic rate band? Does it make a difference? thanks

kinglewis

Hi just wondered does the net pay one mean they change your tax code?and the relief at source on mean they add the amount to ur basic rate band? Does it make a difference? thanks

There is no change to your tax code. Your tax code determines your tax free amount and therefore how much you should be taxed. Pensions are generally not taxable therefore removed from the calculation when you make contributions.

Net pay : Pension is deducted before tax is even considered (gross pay)... then the remaining amount is taxed at either 20 or 40%. (Likely to be a final salary / company pension scheme). The remaining 'taxable' amount can then have a tax code which reflects what tax free amount your should have.

Relief at source : Each payment that you make to your pension is 'grossed up' to add on the tax that you have already paid on your payslip. So a £80 contribution becomes £100 instantly (which has then paid you your tax back as a basic rate tax payer). As a higher rate tax payer you could then go to HMRC and ask for another £20 back... which is then giving you relief at 40% on your £100 gross contribution! Because ultimately.. the £100 contribution ends up costing you £60.

Hope that makes sense.. a little bit!

jem16

stu1234567 wrote: »

Hi just wondered does the net pay one mean they change your tax code?and the relief at source on mean they add the amount to ur basic rate band? Does it make a difference? thanks

Net pay would not involve a tax code change as the pension contribution comes off before tax is deducted.

RAS could involve a tax code change as this is one way that HMRC can facilitate the extra 20% tax relief due for higher rate tax payers. The tax code change has the effect of increasing the 20% rate band.

stu1234567

Well it's all over, thanks for the tax info it came up! As for the rest of it, probably a rather nice paper considering sum of the stuff I was revising! but still room for error!
Soooooo glad it's over, just 3&1/2 weeks wait now! Thanks for ur help

Tom32y

Hi,
Ive got my CF5 coming up in October and same as everyone else really worrying about this one. Stu did you pass your exam then?

I am going to go over my 2, 3 and 4 books and have several past papers to do. Does anyone know whether in Octobers test whether the questions will include the emergency budget rules or will the exam questions still be based on what is in the books?

Thanks

dunstonh

On the written CII exams there is often a question that covers forthcoming or proposed changes. Although whether they just save those for the level 4 exams or higher I don't know.

Tom32y

Ive heard people talk about case study books that can be brought from CII but i cannot find them on the website, anyone know where they are??

dunstonh

You go to the same webpage that you book the exams and there is a tab for study materials next to the tab for the exam.

Tom32y

Ok under Courseware on the CII website they have

Study Text
elearning course
elearning course with cdrom
examination guide
Winning the brain game

I am looking at the correct page arent I?