Wednesday, 1 April 2015

Pension Pot Tax Warning

With the new changes regarding Pension Pot Withdrawals that come into force on the 6th of April many people are thinking of cashing their funds in and spending the cash. I am writing this to warn Thanet Residents
of the pitfalls as I see them.
1) You put money into your pension to help financially in retirement. If you draw that cash and in doing so you become liable to huge taxation on it. That was the Chancellors main reason for changing the rules, he wants your pensions to stimulate the economy and get lots of tax in the process. He is not Cinderella he is the tax man who lives in number 11 Downing Street. You have already paid tax on your earnings, if you withdraw large sums of cash you get taxed again and when you go out and buy your new car or whatever you crave you will pay VAT. Lots of tax for the chancellor. As I said he aint Cinders.

Mind out for the Dick Turpins Highway men through to the core
2) Unscrupulous financial dealings, there are lots  of wolfs in sheeps clothing out there. Already this week we have seen dodgy dealings in selling names and addresses of people holding pension pots. Cold callers may sound plausible  enough they may sell they grandmother to get you to say yes, they earn on results so they will be nice but its your cash they are after. Today the Prudential are warning of the pit falls that are out there and saying the tax man is expecting huge demands. Read more from the Pru heee.

Prudentialsounds emergency tax warning on pension pot withdrawals

The writing is on the wall and its a jungle out there TAKE CARE. 

Further warnings from the Guardian Pension Section

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