Pension fund members face 70% tax charge
High Court to rule on whether pension schemes are legal
High Court to rule on whether pension schemes are legal
PEOPLE who draw their pensions early might be liable to pay a tax charge of up to 70% following a case to be heard in the High Court this week.
The court will rule on whether schemes that allow individuals to draw up to half their pension out before the age of 55 are in breach of regulations, The Times reports.
The case, to be heard this week, involves a scheme in which members in two pension funds are encouraged to lend the money to one another. This means they are not directly drawing money from their own pension fund.
HM Revenue & Customs regulations state that early access to pensions is not allowed and could be subject to a tax penalty of up to 70%.
The numbers you crunch tell a story. Your expertis...
12yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleAccountants with contractor clients must take practical steps in an attempt to fly under HMRC’s radar Read More...
View articleAre taxpayers aware of their self-assessment obligations before they come to you? In a consultation due to close shortly, HMRC is looking at whether t...
View articleATT technical officer, Emma Rawson, takes a look at HMRC’s new call for evidence which explores potential reforms to how and when individuals with pro...
View articleTax managers warn of complexities in HMRC’s WFH tax allowances Read More...
View articleHMRC has experienced an increase in its revenue due to further investigations in the year 2018/19. Read More...
View articleLast year, HMRC imposed a record £860m in penalties on individual taxpayers, up 24% from £694m in 2017/18, according to accounting group UHY Hacker Yo...
View articleThe Low Income Tax Reform Group believes the government should have included tax initiatives in its plans for disabled people and employment Read More...
View article