We have written previously about how employees exchanging part of their salary and/or bonus for increased pension contributions has become common. We explained how this can be far more attractive than the employee making a direct pension contribution on his/her own behalf. Attractions of salary sacrifice Contributions paid out of an employee’s after-tax pay are
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The social care announcement on 7 September 2021 increased both national insurance (NICs) and dividend tax from 2022/23. In addition, the March Budget revised corporation tax rates from 2023/24. The combined effect of these announcements might shift the decision of whether to take a dividend or not from your business. We have looked at some examples to see where these shifts might have taken
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Why the £86k social care cap won’t save you from selling your home The Telegraph reports on how older people still risk losing their homes and spending hundreds of thousands of pounds on care, despite the Government’s new plan to save pensioners from devastating costs. You can find our coverage of this here. Inheritances will
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To begin with, it is worth a quick reminder of the current social care position in England: (Wales, N. Ireland and, in particular Scotland, have their own variations on the theme): There is a £23,250 capital means test ceiling, above which all care costs must be met by the individual: the self-funding route. For those with wealth between
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Investors eye labour market inflation risks This opinion piece in the Financial Times speculates on how inflation may bring the recent good run on the markets to an end. It is penned by John Redwood who is writing from the non-biased position of being chief global strategist of a firm that charges fees for investment
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Morningstar has published updated research as part of its annual Mind The Gap study on how much of market returns US investors get. The headline is those investors get 1.7% less than they should. What is the reason behind the difference? The explanation the report gives for this is that the investors mistime their buys
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