Newsletter 99

SCOTTISH INCOME TAX RATES AND SCOTTISH BUDGET

From April 2016, the Scottish Parliament will have the power to set its own rate of income tax to fund spending by the Scottish government - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

SCOTTISH INCOME TAX RATES AND SCOTTISH BUDGET

From April 2016, the Scottish Parliament will have the power to set its own rate of income tax to fund spending by the Scottish government - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

We would like to wish all our Clients, Friends and Colleagues

Season's Greetings

&

a Prosperous New Year

- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

Headlines from our latest newsletter.  Please click on any of the links below for more information :

SCOTTISH INCOME TAX RATES AND SCOTTISH BUDGET

From April 2016, the Scottish Parliament will have the power to set its own rate of income tax to fund spending by the Scottish government - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Scottish

AUTUMN STATEMENT 2015 - KEY ANNOUNCEMENTS FOR PARENTS

A number of changes to tax credits and Universal Credit were announced in the July Budget but the Chancellor has scrapped some of the changes following a defeat of the proposals by the House of Lords - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Parents

AUTUMN STATEMENT 2015 - KEY ANNOUNCEMENTS FOR EMPLOYERS AND COMPANY CAR DRIVERS

The scale of charges for working out the taxable benefit for an employee who has use of an employer provided car are now announced well in advance - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Cars

AUTUMN STATEMENT 2015 - KEY ANNOUNCEMENTS FOR BUY TO LET LANDLORDS AND THOSE WITH SECOND HOMES

Higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016 - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Landlords

ADVISORY FUEL RATES

New company car advisory fuel rates have been published which took effect from 1 December 2015 - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Advisory

‘PAYROLLING' BENEFITS IN KIND

From April 2016 the government is introducing a voluntary framework to allow employers to payroll most employee benefits in kind (benefits) rather than report them at the end of the tax year on a form P11D - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Payrolling

GUIDANCE ON USE OF ZERO HOURS CONTRACTS

The government has published guidance for employers on the use of zero hours contracts - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Guidance

DEADLINE FOR FINAL IR35 PAYMENTS AND RETURNS

The ‘IR35’ rules are designed to prevent the avoidance of tax and national insurance contributions (NIC) through the use of personal service companies and partnerships - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

We would like to wish all our Clients, Friends and Colleagues

Season's Greetings

&

a Prosperous New Year

- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

We would like to wish all our Clients, Friends and Colleagues

Season's Greetings

&

a Prosperous New Year

- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

We would like to wish all our Clients, Friends and Colleagues

Season's Greetings

&

a Prosperous New Year

- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-99#Deadline

Looking forward to the new flat-rate State Pension?

To ask any question about the new flat-rate State Pension scheme seems to suggest a straightforward answer. Everyone will get the same amount won’t they?

The answer to the latter question is no. The amount you will get will depend upon a number of factors including:

how many qualifying years you have on your National Insurance (NI) record

how many years you have built up an entitlement to the additional State Pension under the current system

how many years you may have been paying lower NI contributions because you have been in a salary-related workplace pension scheme or you received NI rebates which went into a personal pension plan.Either of these scenarios had the effect of 'contracting out' a person from full entitlement under the State Pension scheme.

The new State Pension scheme applies to everyone who reaches State Pension age on or after 6 April 2016. The full State Pension has been set at £155.65. People who have no contribution record under the current system will have to obtain 35 qualifying years of NI credits on their record to give them the flat-rate amount.

However, for individuals who have already built up an NI record (which is nearly everyone reading this article) there are transitional provisions which take into account the NI record accrued up to 5 April 2016. This is a very reasonable complication to have in moving to the new system. Otherwise, people who have accrued a substantial entitlement under the current system of basic and additional State Pension would be treated very differently depending on whether they reach State Pension Age on the 5 April 2016 (and thus receive a pension under the current system) or on the 6 April 2016 (and therefore receive a pension under the new system).

Under the transitional provisions, your NI record before 6 April 2016 is used to calculate your ‘starting amount’ for the new system at 6 April 2016. Your starting amount will be the higher of either:

the amount you would get under the current State Pension rules (which includes basic State Pension and additional State Pension)

the amount you would get if the new State Pension had been in place at the start of your working life.

For many of those reaching State Pension age in the near future, the transitional provisions offer the best of the current and new systems. Employees who have built up a significant entitlement to the additional State Pension will retain their entitlement. People who have been self-employed for most of their working lives may have little or no entitlement to the additional State Pension and thus will benefit from the new State Pension rules.