Child benefit: Why the changes could mean you pay tax at 65%

Child benefit: Why the changes could mean you pay tax at 65%Child benefit is means tested from today, with households, where one person earns above £60,000, losing the benefit completely and a partial withdrawal where there is one earner with income of between £50,000 and £60,000. HMRC has predicted that over one million families will be affected with around 700,000 losing their child benefit completely. The average cost to a family is expected to be around £1,300 per year; ...

Retirement: Are you “sleepwalking” into retirement?

Are you sleepwalking into retirement_iStockPhotoA new survey has highlighted just how many people in their 50’s are failing to plan for their retirement. The joint report, by the National Association of Pension Funds (NAPF) and the Institute for Fiscal Studies (IFS) found that a staggering 60% of people, who are still in work, have not yet thought about how long they will be retired for or how they will finance this period of their life....

Everything you need to know about the “Granny Tax”

Up until lunchtime last Wednesday the term “Granny Tax” had rarely if ever been used, now everyone seems to have an opinion about it. “Granny Tax” was quickly trending on Twitter and with headlines like “Pensioners robbed”, “The great granny tax grab” and “Robbed”, there was no doubt what the newspapers thought. But what is the “Granny Tax”? How will it affect you? How much will it cost you? Read on to answer all these questions and more. What has changed? The changes were made to the age related Personal Allowance, which is the amount an individual can earn before paying tax....

Budget 2012 Reaction: More people dragged into Higher Rate Tax

Research has shown that even people of “relatively modest salaries” will be dragged into higher rate tax as a result of this week’s Budget. The Institute for Fiscal Studies (IFS) has predicted that as many as five million people could be paying higher rate tax, at 40%, by 2014; by contrast last year 3.7 million people paid tax at the upper rates. In the Budget George Osborne also announced the end of age related allowances for those people over 65. The IFS said the “granny tax”, as it has quickly been dubbed, would cost pensioners approximately 0.25% of the annual income in ...