One of the more interesting facts that I’ve discovered in the 18 months since I became a part-time Finance Director with Assured is that if you find an issue with one client, then invariably you’ll find it at another. And the issue can be a relatively straight forward one.
I read the other day that the coalition are considering plans to cut higher rate pension tax relief. That is to say limit relief to 20%. That reminded me of an issue I have found at a couple of clients I have worked with as FD.
The circumstances were the same in each case. The Company calculated income tax on their employees earnings BEFORE any pension contributions. The pension provider then claimed back the 20% tax from the Government and grossed up the pension pot accordingly. Fine. However, the Higher rate tax payers were not aware they could claim back another 20%.
Rather than wait for their tax returns, I drafted a letter to HMRC claiming back the relief for this AND earlier years and had their tax coding notices changed accordingly. Job done.
If you think this could apply to you or you need help with any financial management issues, call me now on 07817 676371 or e-mail me at assuredfd.co.uk.