Retirement and pensions

The pension and annuity rules are changing. The need to plan for the future has not.

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Pension changes

Starting in 2014 there have been a whole raft of changes affecting the taxation of pensions and the access to those funds.

Qualifying for a state pension

The government has changed the age rules for qualification for the state pension. Currently the state pension age is between 60 and 65 for women and 65 for men. The changes mean that retirement age for women will be equalised with that for men at 65 by 2018 and both will increase to 66 from 2020, to 67 from 2026/28 and to 68 by the mid 2030s.

Planning for retirement

For many people their retirement plans have been devastated by various falls in stock markets, low annuity rates and the lack of growth in the buy-to-let marketplace. How will the removal of the requirement to buy an annuity affect you? Many may question what chance there is of a 'comfortable retirement'?

Pension premiums

There are limits that may be contributed to a registered pension scheme without incurring a tax charge. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600.

Pension contributions and tax relief

There are limits on how much can be invested in a pension scheme before a tax charge is payable.

Pension credit

Details of pension credits for the current year.

Stakeholder pensions

Stakeholder pension schemes are low-cost pensions meant for people without existing private pension arrangements. They were originally targeted at people who earn more than £10,000 a year and who cannot join an occupational pension scheme. They have, however, turned out to have much broader appeal.

State pension deferral

State pension deferral is the right to defer entitlement to the state pension. In return for deferring a lump sum accrues with interest added to the deferred entitlement at a rate normally of 2% over bank base rate. Therefore the deferral claim cannot accurately be evaluated in advance. Examples of the potential lump sum entitlement are shown in our tax rates.

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
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  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee of £120 plus VAT per month.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com.

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