As part of our integral ongoing client relationship, we’re keen to post out a hard copy of the this year’s Autumn budget report. The most important aspect of financial planning is keeping an eye on your investment but also government changes.
We all know how the government likes to change the goal post, especially when it comes to pensions. Not too far in the future, the current age to unlock your pension benefits is age 55, which in April 2028 will be raised to age 57. Extra planning will be needed to be taken into consideration regarding this Government change.
Personally, I wanted to understand how The Chancellor will pass on the fee for the Covid pandemic. He has increased National insurance, income and dividends by 1.25% effective from April 2022.
ISA and JISA remain the same, having £9,000 annual limit to save for your children each year tax free is a real benefit.
For business, he has increased the Corporation tax for profits over £250,000.00 from 19% to 25%. So if you have a business and profits over this amount, you will need to pay £40,000 into a pension to reduce your overall profit.
Overall the Autumn budget hasn’t made many changes – a couple of tweaks to help pay for the pandemic. If you have surplus cash, it might be worth asking your employer to increase your salary sacrifice pension contributions, this way you’ll save paying an extra 1.25% on some of your earnings.
Inflation is going to be a large issue for 2022, we’ll probably see the Bank of England increase the base rate. So make sure you fix your mortgage and review your cash savings.
