September 2019 Newsletter : Cylchlythyr Misol Medi 2019
The cost of long term government borrowing is very low. This matters to savers and borrowers and has the following knock on effects:
- Bad news for anyone looking to start an annuity from a private pension – annuity rates are very low at the moment.
- Potentially bad news for savers who do not “Shop around” : there is little incentive for many banks to be competitive with their savings rates.
- Potentially good news for those needing mortgages. However look at the overall package – enticing low rates may have a big arrangement fee.
If you are a higher rate taxpayer and pay into a personal pension / are a member of an employer’s scheme due to automatic enrolment, ensure to claim higher rate tax relief. This can be claimed for up to 4 years and a number of clients have obtained significant rebates.
Beware the mobile phone delivery scam:
- “Delivery driver” unexpectedly turns up with a new phone in your name. You sign / keep it even though you have not ordered it whilst “the paperwork is sorted”.
- Half an hour colleague turns up to collect the phone.
- You end up with the bill for the now disappeared phone!
Tax records need to be kept for 6 years, which means anything older than 6 years (6 April 2013) can be safely shredded.
Ask Huw: How do I find out what I will receive from my state pension?
State pension forecasts can either be obtained online (Google : State pension forecast and follow the gov.uk link) or ring 0800 731 0175.
The current maximum state pension for the newly retired is £168.60 and you need 35 qualifying years to obtain this. Get the forecast some years before retirement in order to correct any possible discrepancies.
If you wish to contact me in complete confidence my details are:
www.huwrobertsaccountant.com 07967 976854