Planning to take money from your pension? Beware of the tax!

Tax problem conceptNew research shows that some people are being hit with surprise tax bills, when they use new rules to take money from their pensions. The report, from Citizens Advice, considered 500 people who had taken money from their pension; 9% had a surprise tax bill, whilst 6% had their benefits affected. Pension Freedom was announced in 2014 and started in April 2015. One of the new rules allows anyone over the age of 55 to take an unlimited amount of money from their pension. People taking advantage of the new ...

OFT to investigate three quick sale firms

Laptop Magnifying glassThe Office of Fair Trading (OFT) has confirmed they are to open investigations into three quick house sale firms, as they believe they are operating unfairly, leading customers to lose thousands. Quick house sale firms, offer to buy the seller’s house for much less than it’s worth. Generally, firms will pay between 10% and 25% less, than the current market value of the property, taking advantage of the seller’s need to sell quickly. Recently, the OFT published a report into the quick ...

Payday borrowers choose not to complain

Payday lenders told to clean up their act 150 pxCitizens Advice has revealed 76% of 665 cases it has seen recently could have been passed to the Financial Ombudsman Service (FOS), with many payday lenders allegedly collected repayments unethically. Examples of poor practice included:    Consumers chased for payments on loans they never took out Consumers “pestered” by phone calls and texts, despite having a repayment plan in place Possible fraud Consumers suffering from financial hardship being treated unfairly Following recent controversy over the tactics employed by some payday lenders, many ...

Wills: 1 in 5 could be faulty and lead to higher Inheritance Tax bills

A new report from the Legal Services Board shows that 20% of all wills could be faulty. The survey of 100 people who needed a will found that 20 contained basic errors and a small percentage were so badly written that they “could not be executed”. The Legal Services Board said: “We found consistent patterns of sloppiness, simple errors and poor communication. This often resulted in an unacceptable service for customers. Too often consumers were subjected to unfair sales practices.” The report also called for the will-writing industry to be more heavily regulated to reduce the number of mistakes in the future....