The Alzheimer’s Society Dementia Friends programme is the biggest ever initiative to change people’s perceptions of dementia. The aim is to transform the way we think, act and talk about the condition.

Eldon recently invited Sheila, a lovely Dementia Friends Champion, to our annual conference as a guest speaker. A Dementia Friends Champion is a trained volunteer who encourages people to learn more about dementia.

Eldon is proud to announce that all colleagues are now Dementia Friends, and that all colleagues have made commitments to help people living with dementia. Commitments include sharing our knowledge and talking more positively about dementia, volunteering, and wearing the Dementia Friends badge to raise awareness.

Colleagues found the session to be incredibly powerful, and felt it enabled us to improve our client skills even further. It is important to us that we are able to work with empathy and understanding, as well as in the most effective way possible with any client who may have symptoms of dementia.

If any of our clients would like to take part in this amazing initiative we would certainly be happy to facilitate a client focused session, or share contact details of Dementia Friends Champions.

The deadline for submission of Self Assessment tax returns for the 2018/19 tax year is approaching and is 31st of January 2020.

It is important that all of our clients to whom this is applicable ensure that tax returns are completed by the deadline. If you believe you should complete a Self Assessment tax return, please take some time to check using the following link.

We would urge our clients to be on time in their submission, as if late, they may then be eligible for late penalty fees. It is down to each individual to ensure their return is completed by the 31st of January.

Professional accountants can help complete the Self Assessment on your behalf but will charge for these services. Alternatively, a Self Assessment form can be completed by the individual using the following link.

Here at Eldon, we work closely with clients to understand their tax obligations and consider these in any financial planning work we do with you. Our effective planning considers ways in which you can be tax efficient with your savings and investment, to have your funds working as efficiently as possible for you.

There are key points in life which may prompt a need to engage with the tax system such as; having children, entering work, saving for or drawing a pension, and helping others who need support. The independent Office of Tax Simplification (OTS) has produced a report which highlights how individual’s engaging with HMRC when these key events occur can lead to a range of complexities.

High Income Child Benefit Charge

When income for an individual or their partner is over £50,000 per year, high income child benefit tax charge applies. This tax charge increases until you effectively receive no child benefit when an individual’s income reaches £60,000 per year.

Some people with salaries higher than £50,000 are not claiming the benefit to avoid the need to tax report. This can have an unintended adverse effect on the individual’s national insurance credits which count towards state pension for the parent, as well as delay the child’s receipt of their national insurance number when they turn 16.

These problems can be avoided, by first making a child benefit claim, but then choosing not to receive payment of it. In addition to causing significant administration, the lack of knowledge has caused people to lose out.

Pension Reliefs and Charges

Pensions and associated tax issues are notoriously complex.

Employers have a choice when providing pensions for their employees between what are known as ‘net pay’ and ‘relief at source’ taxation arrangements. The different mechanisms have different outcomes depending on a number of factors, the most significant being for those whose income is below the personal tax allowance.

As part of their report, the OTS has recommended potentially removing or reducing the difference in outcomes, without making it more complex.

Recently the government has reduced the overall level of tax relief available for pension saving, through the annual allowance and the lifetime allowance. This has added to the complexity and, in certain situations, can lead to disproportionate outcomes.

OTS have recommended to HMRC that clearer guidance is needed, along with a constant review of the allowance levels.

Tax Education

Better levels of awareness and education around the tax system would help avoid some of the problems individuals face.

Schools are offered materials through the Tax Facts programme, but resource pressures mean that young people are not introduced to these concepts at an early age, and therefore do not gain the knowledge they need.

The three areas above are just some of those highlighted by the OTS within their report. In conjunction with other tax experts, here at Eldon, we understand how important it is to give you, our clients, the correct advice regarding your individual tax situation, and how that impacts on your overall financial planning.