8th November 2000 - Pension Issues 2000/01

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Garbetts Limited have issued an important letter and briefing document to clients about important pension issues. The letter and a link to the briefing note are set out below:

Pensions 2000 briefing letter: Pension Issues 2000.pdf - 39kb

Text of letter to all clients:

There are a number of important issues on the horizon pension wise, and this letter is intended to brief you on them. If further information is required, then please speak to myself or one of my assistants.

Please note, pensions are a form of regulated investment and, under the Financial Services Act, Garbetts Limited is not authorised to provide investment advice, except as an integral part of other professional accounting and tax services. This means we can advise on the merits of pension investment versus, say, ISAs, but we cannot advise on specific products. Detailed advice can be obtained from an Independent Financial Advisor; if you do not have a link with an IFA we can make a recommendation for you.

There are four pension issues on the horizon, some or all of which you need to be aware of:

Abolition of carry forward/carry back relief from 5 April 2001
	This may impact upon you if you are self employed or employed and not in an employers scheme.
Stakeholder pensions for employers
	This will impact upon you if you employ staff. At present it only applies to employers with 6 or more staff.
Stakeholder pensions for employees
	This is important for you if you are not in an employers pension scheme and have earnings of between £9,000 and £18,500 a year.
IR35: mitigating the cost through pension investment
	If you run a personal service company and are likely to be caught under the IR35 rules, then pension contributions can make a significant tax saving, and you should aim to maximise your contributions before 31 March 2001.

The briefing letter provides more information on pension issues. For more advice, or to be put in contact with an Independent Financial Advisor from our panel, please contact us.

Garbetts Chartered Certified Accountants

E-mail: office@garbetts.com

Arnold House, 2-6 New Road, Brading, Isle of Wight, PO36 0DT.
Telephone: 01983 400350. Facsimile: 01983 404016.