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Technical articles

Dividend v salary v pension revisited

21 June 2017
In this third and concluding article in the series we look at more examples in the dividend v salary debate and then two final examples, involving a lump sum, which includes a pension.

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The impact of the extended GAD tables

21 June 2017
From the date  that the changes to the capped drawdown GAD tables where announced in January it was unclear at what point they would n ...

Using trusts to gift property

08 June 2017
According to the latest estimates, HMRC's inheritance tax receipts are to be about £4,637m for 2015-16, which is an increase of 22% from 20 ...

Are you thinking about all of the risks?

08 June 2017
One of the first discussions many planners have with new clients will be one that focuses on their views about risk. In many cases, this di ...

Diversity is key for the new build market

06 June 2017
Prior to Legal & General New Build Club launching into the market three years ago, the industry was dominated by just two lenders.  ...

Meeting the needs of an ageing population »
With ONS figures predicting that one in three babies born in 2013 will reach their 100th birthday, considerations around how the mortgage industry and its regulators should evolve to meet the needs of an ageing population will remain a long-term policy priority.
Changing face of pension planning »
Since the pension freedoms there has been a great deal of discussion about consumers cashing in their pensions as soon as possible after age 55 and living on the bread line through retirement. This may well be the case for those with smaller pots, but those that have saved significant amounts both in and outside their pensions will be looking at their pension pots in different ways such as an IHT vehicle. This will clearly mean that the conversations held with advisers will be changing. It won't necessarily be about how and when they access their funds, but more about what other assets to rely on to preserve their pension benefits for future generations. This will mean advising clients for longer on their pensions as it may no longer be secured by way of an annuity at some point before death. In addition, moving pensions from secure income in a defined benefit schemes are appealing to those wanting to preserve funds beyond their death.
Dividend v salary v pension revisited »
In this second article we examine, with examples, a few typical situations that put some numbers behind the general consideration of the relative position of dividends or salary as the most effective means of withdrawing money from a company for shareholding directors.  But before doing so we would point out that since the first article was written, the Finance (No2) Bill 2017 received Royal Assent.  One of the clauses in the Bill that was omitted from the Act was the one to reduce the dividend allowance from £5,000 to £2,000 with effect from tax year 2018/19.  We must wait until after the June General Election to see whether the new government will legislate for the reduction.
Are pilot trusts dead and buried? »
It has been suggested that, following the introduction of the rules on same-day additions to existing settlements in the Finance Act 2015, there is no longer room for pilot trusts in estate planning. Is this really the case? Is IHT planning using the Rysaffe principle still viable?
Mortgage qualifications a must for advisers »
The Society's recent survey found 61% of members supported a standalone lifetime mortgage qualification for pensions and investment advisers so they could sell such products without having full mortgage qualifications.
Tax efficient savings »
Many times we hear "my property is my pension" where people are talking about their home or buy to let portfolio but by combining property and pensions more tax efficiency could be achieved.
Dividend v salary v pension revisited »
Considering the options and tax consequences for funds derived from profits is only really relevant in relation to owner/managers of private limited companies.  Profits derived by the self-employed are assessed to tax on the sole trader no matter how those profits are spent.  The same is true for partners and members of a LLP - they are taxed on their share of profits whether it is drawn or not.
Technology providers to continue evolution in mortgage advice »
The recent announcement that Equifax have teamed up with Castlight in order to provide a real-time affordability platform, provides further evidence that technology providers will not rest on their laurels in their bid to provide advisers with the best possible tools to do their jobs.
Conveyancers must think digitally to succeed in 2017 »
These are unpredictable times for the property market with forecasts changing from joyfully optimistic to the polar opposite within what feels like the blink of an eye, but there is one thing I am sure of - the future of conveyancing is online.
2017 Spring Budget - The pension changes »
Following on from our previous article looking at the non-pensions Budget changes, this article looks at the main pensions changes, as announced.
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