Director of Juniper a specialist Financial Planning. All views my own and none constitute advice. Above average at a lot of hobbies, not great at any.
Preston, England
Joined December 2011
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1/ Pension and Tax nerds - I was asked by a client this week about deliberately exceeding their annual allowance, by some margin, to recover their Personal Allowance and retain Free Childcare Hours for children
My initial instinct was it wouldn’t work but the more I look into it
4/ What am I missing?
Is the legislation really that stupidly drafted to incentivise deliberately getting an annual allowance charge?
@dontdelay @DanNeidle you’re both significantly smarter than me - what am I missing?
The problem isn’t the Rolex
It’s always being charged Rolex prices but getting anything from a Rolex to Casio
Imagine if government started giving away Rolex watches. Or if they gave teenagers a loan to buy a Rolex if they wanted one.
The symbolic value of a Rolex would drop through the floor. Fundamentally a Rolex is not intrinsically very valuable but it’s symbolically valuable because it signals status or success for the wearer. All of that would go away if the Government made them easy to obtain.
This is what has happened to the university degree. Prior to the 1970s, a university degree was a symbol that you weren’t poor or slow. The only people who could get a university degree were people who had a higher than average IQ from a wealthier than average family.
The degree itself wasn’t intrinsically very valuable, which is why any degree would do. If you had a French Poetry degree it was enough to signal to an employer that you weren’t poor or stupid and you could then enter the workforce at a higher point than most.
Today that signal is lost. The government has made it so anyone can go to university - even if you are a bit thick. It’s also made it so that if you weren’t poor to begin with, you will be by the time you graduate.
Employers are now skeptical about people with degrees. Today top employers are more interested in people who dropped out to start a business, or who took a year off to be a ski instructor, or who set up a YouTube channel. These are better indicators today of your social standing and your intelligence.
Decades ago the government looked at the economic outcomes of graduates and observed that university grads made more money. So in all their wisdom they tried to make everyone a university grad. They failed to realise that it wasn’t the university education that was causing the uplift, it was the symbolic value of what it secretly said about you.
Now that the symbolic value is lost, the value of a university degree is much lower. It’s as if the government has flooded the market with Rolex watches and forced every young person to buy one at retail prices on a loan.
I was today years old 😬
Played his songs at countless weddings and party gigs in my 20s too 🤣🤦♂️
“We have investigations every week where people come in…& I listen to them, & then I challenge them. & then…I can hear they don’t quite understand the paradigm shift I’m talking about, because they’ve not discovered it yet.”
@RestIsPolitics this was wild - gnostic economics!
Who could possibly have seen it coming?
Companies whose business model is owning an inert asset are now worth less than the asset they hold as shareholders realise it costs money to run companies 🤦♂️
on.ft.com/4pvRKqH Crypto hoarders dump tokens as shares tumble
If you think you have a simple answer to a complex problem then you like don’t understand the problem properly
@RachelReevesMP @TorstenBell - has anyone floated the idea of tapering State Pension for those with incomes above £50,000 or £60,000 inline with child benefit.
Mostly impacts those with State funded pensions - NHS, Civil Service etc, already filing tax returns or on PAYE.
In 2018-19 there were 474,000
If all are on the new state pension that’s a £2.5bn - £5bn saving (depending on numbers is tapered)
Might upset a few clients here but they’d probably rather that than further IHT
This IHT on Pension legislation just gets worse and worse the more you delve into it.
This could go down as the worst piece of pensions legislation in history.l and do untold damage to faith in pensions.
The complexity is just unreal!
This would turn property into a trade rather than investment income.
The quid pro quo being Property rental income becomes Pensionable/deductible?
Also - incorporation becomes the obvious mitigation.
@TorstenBell - just scrap the Triple lock - we all know it’s bankrupting us!
