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New tax year 2019/2020: Tax and personal allowance changes

As the new tax year rolls around, here are the major changes that may hit your pocket from April 6 for the 2019-2020 tax year. 

Income taxes

The personal allowance, or the amount you can earn tax-free before you start paying income tax, will rise by £650 to £12,500. Pensioners won’t receive a higher personal allowance than other age groups.

You will pay basic rate tax (20%) on your taxable income between £12,500 to £50,000. This means you can earn up to £50,000 before you start paying higher rate tax (40 per cent).

Pension cold-calling ban delayed till autumn

A ban on pension cold calling has been delayed until autumn, the government has confirmed.

The Treasury says a consultation is first needed to ensure future legislation is both 'effective and robust'.

This is expected to be published in July to coincide with Economic Secretary to the Treasury, John Glen MP’s speech in parliament laying out the timeline for the Financial Claims and Guidance Bill, which the ban falls under.  

A HM Treasury spokesperson comments: 'We’re committed to introducing a ban on pensions cold calling as quickly as possible.

Investors being misled by ‘Key Information Documents’, says AIC

When it comes to indicating the level of risk inherent in an investment trust and its ‘sister’ open-ended fund, the Key Information Documents (KIDs) introduced at the start of the year are tending to mislead investors.

The Association of Investment Companies (AIC) looked at 56 investment trust KIDs and then compared their Summary Risk Indicators to the equivalent indicators in the Key Investor Information Documents (KIIDs) produced by their sister funds. 

Early-retired urged to review state pension top-up options

Hundreds of thousands of people who have stopped work before state pension age are being encouraged to review their national insurance contribution (NIC) record for 2017/18. The call comes from mutual insurer Royal London, which says people should check whether they can now top up their state pension at heavily subsidised rates.