Personal finance and financial education channel from a Chartered Financial Planner. Discussing pensions, investments, saving and personal finance. This channel is here to help cut through the noise and help make better decisions.
I can be reached at: info@principlespersonalfinance.co.uk
PLEASE NOTE, this channel provides information on general financial planning and should NEVER been seen as advice. The information provided in these videos have been compiled from sources believed to be reliable and current, but accuracy should be placed in the context of the underlying assumptions. No investment decisions should be made solely based on the information in any of these videos. Please seek advice specific to you and with any investing, your capital is at risk.
Sir I am studying for ACCA as a first step of shifting from Engineering that I have done earlier. I aim to work as an Accountant/Financial Consultant in independent capacity. Your content really helps. Thank you
great video and i get the carry forward but does this mean you could just pay in the 100k into a pension, get all the tax relief added, then have to pit this on your self assessment of would you have to tell your platform about the fact you are using carry forward ?
Hi, an individual would have to have relevant earnings up to £100k in a tax year in that example. Or fall under 'wholly and exclusively' rules if the contribution is made via a limited company. A claim does not need to be made to use carry forward, however, an individual should always keep records in the case of enquiry/audit from HMRC. Pension planning can be complex, the statements provided above are currently accurate information but may not apply to your unique circumstances or lack important detail. So please do seek advice specific to you before taking any action.
There is no black hole 🤣It’s all Bovine droppings 🤣🤣🤣The government owns the Bank of England. They have all the money they need, without taxation. My opinion is, or they are illiterate or they are creating austerity. Sad🤬 People look after number one and your family. Love and Respect 👊🏻😎💥
Very interesting predictions. Based on your more likely (>50% probability) predictions how much in total would they raise as I am not sure you get to £22B.
They've introduced more complexity.. which is never a good thing imo. At the moment the rules probably benefit most people within about 5 years of pension access age, but the longer the TFLS cap is held in place the bigger the fiscal drag will become. I suspect that - eventually - it will be more commonplace than you imagine that people are making pension contributions to get tax relief at basic rate, only to be taxed at higher rate on a chunk of their drawn income. There are probably edge cases of this happening at the moment, but give it 10 years or so and I think more and more standard rate tax payers will be on target to blow past the old LTA limit
Is it true that in order to contribute towards a pension, a person has to earn over £10,000 per year ? I have a 25 year old son who has autism. At the risk of being pessimistic, and assuming that he may never be able to hold down any meaningful paid employment, if it’s affordable to me, am I allowed to start up and contribute towards a pension on his behalf ? If I was able to do anything like this, do you know if it would affect any benefits that he was entitled to from the government, ( when he reaches retirement age ) eg. Disability Living Allowance “DLA “ or housing benefit ? If I’m not allowed to contribute to a pension for him, would an ISA be anywhere near as good over a long number of years and do you know if any money in an ISA would still affect any benefits he was entitled to , if it would, does that mean that an ISA would need to be in someone else’s name ? I appreciate that this might not be your line of expertise, but any guidance would be very much appreciated.
If they change the pension relief. It'll be the nail in the coffin for me. My wife and I are in our early 30s and both healthcare professionals. Aus or NZ are the places to go.
Surely any increases in council tax will only benefit local authorities finances? They in turn, depending on their political bias can spend this extra cash in whatever way they wish. How would this help central government finances in reducing the national debt deficit wherein lies this huge black hole?
The freemason 22 Master builder niumber. 22 all the time . 22 people on the BAYSIAN yacht BULL5 hit. NO taxes need to rise becaue countries are not limited to making money in money out crap.. They jsut PRINT what they need .. LOOK AT THE USA debt Yet they still trade.. COME ON WAKE UP.
I honestly have no idea on this one so wouldn't want to take a stab at it. Could make the case either way. I'd say of the taxes, it's one that could get targeted in anti-forestalling measures but generally changes should get applied in the following tax year. We'll have to wait and see!
@@PrinciplesPersonalFinance going to be difficult anti-forestalling considering many are crystallising their p&l before this october budget just based on the rumours.
There is no black hole in the public finances. Reeves is economically illiterate. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eo-cgUtD9Lw.htmlsi=DwqaIx4-SQBggYj6
Where is the daily money we are saving from Brexit, that was millions per day, oh are we still throwing money to them, like we do to some other countries
Many pension contributions are made after National Insurance (NI) has already been deducted. Therefore, the likelihood of applying NI deductions again to pension withdrawals is virtually zero, as this would mean the same money is taxed twice by the same tax.
That's not true. That only refers to an individual's relief at source contributions. Both salary sacrifice and net pay can escape this. As-well as NI on employer contributions.
@@PrinciplesPersonalFinance NI is only avoided when Salary Sacrifice (SS) is used. Many employers do not implement SS and it cannot be used on any contributions that would lower the employee's salary below the National Minimum Wage (NMW). So it is impossible for any employee on the NMW to avoid NI payments on their pension contributions.
If the government alters the 40% tax relief on pension contributions, many people may opt for early retirement, which is something the government likely wants to avoid. A more effective approach might be to reduce certain benefits. For example, lowering the benefits for asylum seekers to a level slightly below what they receive in France could potentially decrease the number of asylum seekers, helping to save some of the £8 billion currently spent on their care.
The idea that you can just set it and forget it doesn’t seem to hold up, especially with how unpredictable the market has been. It feels like there’s more to it than just sticking to a formula.
Exactly. I’ve been contributing to my retirement accounts for years, and while they’ve grown, I’m starting to question if it’s really enough. There’s so much more to retirement planning than just investing in a couple of mutual funds.
Exactly. I’ve been contributing to my retirement accounts for years, and while they’ve grown, I’m starting to question if it’s really enough. There’s so much more to retirement planning than just investing in a couple of mutual funds.
That’s a good point. I think a lot of us were led to believe that as long as we did the basics-max out our 401(k)s, maybe put some money in an IRA-we’d be set for retirement. But with inflation, healthcare costs, and market volatility, it’s clear that’s not the full picture.
And don’t forget about how often the rules change. Tax laws, Social Security, Medicare-it’s hard to keep up, and it can really throw a wrench in your plans if you’re not careful.
Council tax is a tricky one. Show me where I can live in a family house near me for less than £700k and I’ll gladly move there and pocket a fortune that way.
Thank you for logically laying out the various factors that should be considered. I especially like not being told you have some mystical magical system you need to sell.
every one talking about a 22billion hole.......not one of those showing how or why there is 22b hole....fabrication to blame or justification to increase taxes for what real reason ?????
My age 72yr old I worked long hours for 50yr years on low pay as a joiner on building sites retired now last winter I was sitting at home freezing holding a hot water bottle frightened to put the heating on this winter I thinking about putting a post about illegal Immigrants so I get sent to prison at least I will be warm and get 3 meals a day no bills to pay it's the only chance I have to see a doctor it a win win OAP from Scotland 🏴
The governments claims are just gaslighting. Successive governments have caused every single financial problem they claim exists. It's beyond being fixed by the ineffectual, indoctrinated, clueless, midwit fools who make up our governments.
That's a good point about IHT outside of a DC pension wrapper. Labour are almost certainly going to remove the IHT tax break, making it more sensible to remove the 25% tax free portion & use it to pay off a mortgage or reinvest in an ISA. Assuming the 25% tax free status doesn't also get taxed!
The recommended income levels that people need for retirement are misleading. Yes they have a list of likely expenses, but someone who owns their property outright is going to need less than the same person who continues to rent. Many people will not have earned these figures p.a. in their working lives. There used to be a rule of thumb that you need 2/3rds of your net pre retirement income in retirement.
Ive a btl ,that ive had for 10 years ,next April iam going to move into , i need it valued for CGT, i know it needs a new kitchen ,new bathroom, it needs a new chipboard floor and a bit of damp sorted, ,say this work comes to 35 k , Can i knock 35 k of the valuation for CGT without doing the work at that time ,
Here is how it works; raise taxes, blame predecessor, spend loads of money to gain favour, drop taxes get re-elected. It’s all a game, people just don’t know they are the players.
1. Capital gains tax 2. Inheritance tax 3. Fuel duty & introduction of pay per mile 4. Car tax 5. Council tax & scrapping the 25% single occupancy discount 6. Ulez type tarrifs across all cities and large towns
feeling disoriented since I recently turned 56 and lost my job. With 425,000 saved for early retirement at 60, 10,000 in an HSA, and a property that could potentially generate an extra 200,000 in income, what passive income opportunities do I have?
I’m confused about whether to combine all my investment accounts into one. If I decide to do this, how should I go about it, and will there be any consequences I should be aware of? I also intend to sell my property, which could add an extra 200K overtime. Should I consolidate everything into one investment account, or diversify across several sectors?
These are important questions for a financial planner. I connected with mine at a NYSE summit, and with her help, my wife and I reallocated our 1.7M portfolio between a traditional IRA and a brokerage account. She’s been executing trades with our consent and has managed to recoup twice our crisis losses. We’re holding and cautiously navigating the market
Appreciate your work. Retired teacher pension in England London Scotland £50000 per year yes Thomas it high it public sector pensions goes to 6 million people in Britain Thomas Awesome. Teacher, Lecturer retires at 55 or 60 yes. They wealthy middle class Thomas.
Retired teachers get nowhere near the figure you’re mentioning . Majority of them will be on the 1/80th scheme meaning a teacher with 20 years service would get a quarter of their annual salary per annum.
Also they can break another promise and simply put the income tax up and or vat because of the black hole Simple to do and no complaints for five years After that who knows😅
