Despite expectations of an election during 2024, Rishi Sunak’s choice to go early on 4 July caught everyone from his party to the pundits by surprise. The six weeks of campaigning saw claim and counter claim around tax policy, the NHS, housing and other key issues which will have fed into voters’ decisions on polling day. Where summer is usually a calmer time in politics, that seems unlikely as a new government takes stock over the next few weeks and sets the direction of travel.
Tax has, of course, featured heavily and regardless of the election outcome, 2024/25 is set to be a challenge for many taxpayers. In the Summer edition of our newsletter, we give readers a nudge to check their tax status. The cumulative effect of tax allowance freezes will push some over a tax-paying threshold, but if you don’t already use the self-assessment reporting portal you will have to check what you owe.
The Labour party had committed to maintaining the State pension triple lock, which goes some way to reassuring those coming up to or in retirement. As we cover in our feature for this edition, the costs of retirement have escalated again. The annual review of the costs of living in retirement from the Pensions and Lifetime Savings Association showed that, in one year, the cost of retirement had increased by over 25% for a couple living outside London to enjoy a minimum level of retirement. So planning your contributions through your pre-retirement years is more crucial than ever.
Our other stories include:
- Don’t fall for scams this summer – Holiday-booking frauds stole £12.3 million from holidaymakers in 2023, but scams are all too commonplace across every financial area.
- The cost of sickness – Long-term sickness rates have risen substantially in 2024, but State provision for those unable to work is very little. Is your income protection enough to see you through a period of inability to work?
- Basis year now means tax year – The shift of the taxation period for self-employed workers and partnerships to align with the tax year will cause some complications and higher payments in the self-assessment process this year and could pull some into higher taxes.
By the next issue of the newsletter, our new government will be getting established, and we may even have seen another Budget. Please do get in touch if we can continue to help or provide you with more information on any of the topics covered.
