I have spent much of this week reading about the latest developments in the pensions forestalling legislation (do I need to add the word "fiasco" or is that a tautology?) The debates in Committee seem to have lasted for about two thirds of a day and not really moved the Government on - skimming to the end of a substantial printout most amendments seem to have been eventually withdrawn. (Yes, sorry planet I printed it to read on a plane. Then promptly dozed off.) The House of Lords Economic affairs Committee didn't make much of it, and I was struck repeatedly by the thought that this is an awful lot of effort to go to, chasing how much tax??
The HoL Committee seemed to think the yield was zero - maybe because lots of people won't do something so no tax will be raised.... The Government (or was it HMRC) says that the introduction of additional complexity isn't much of a problem because "hardly anyone will be affected", so we're doing this WHY? If hardly anyone is affected, how much would it cost to leave it alone? There were 230,000 earning more than £150,000 the last time anyone counted (a couple of years ago). So chop a few off for redundancies and no bonuses in the banking sector. Then subtract the retired on massive pensions - that excludes a certain FG and probably a few others. Now subtract everyone on post A day enhanced protection - got to be quite a few at this level (surely they're not now earning £50 a week?). Knock off those who don't believe in pensions (or don't any more after Equitable Life) and those already contributing at least £245,000 a year. How many left. About 10 I suspect.
Please tell me that someone did a cost / benefit analysis before embarking on this little game. Surely it's not to give people something to do over the summer?
Rebecca trained in London with Kidsons and, on qualifying, spent some time as Chief Accountant of a manufacturing company. She now has her own small practice in Gloucestershire that comprises of owner managed businesses and small companies.
She also lectures extensively for a range of professional bodies, accountancy firms,...