he financial facts of living with HIV |
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This Fact Sheet is designed to explain the financial opportunities and obstacles you may experience when living with HIV.
This is a long article - please feel free to download it and read it at your leisure.
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http://www.gayfinance.info/living-with-hiv/living-with-hiv.htm
PDF version 
Savers over 50 will have the chance to top up tax-free savings in Individual Savings Accounts (Isas) from October.
The annual limit will go up from £7,200 to £10,200 from 6 October for those over 50 years old and for everyone else from April 2010.
The cash limit in the overall allowance will rise from £3,600 to £5,100. The remainder can be invested in shares.
There are about 18 million Isa account holders in the UK, with five million using the full allowance each year.
Changing times
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 This is not a case of tinkering around the edges  Christine Ross, Savings and investments expert
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Isas were introduced 10 years ago by then-chancellor Gordon Brown in an attempt to encourage UK residents to get into the savings habit.
Some BBC
website readers have already been asking about the changes and how it would affect them.
The current limit is £7,200, with a maximum cash investment of £3,600. This will go up to £10,200, with half of this as a cash investment - costing the Treasury a total of £60m by 2011-12.
The move has been welcomed by savings and investments expert Christine Ross who told the BBC that this was a bold move.
"This is not a case of tinkering around the edges. For a lot of people a great deal of their savings will now fall outside of the tax net," she said.
But the benefit to savers will be relatively limited if interest rates fail to rise from their current low levels, according to David Black of Defaqto.
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BUDGET 2009
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At the best interest rates being offered at present, the increase gives additional tax-free interest of £54.15, he said.
Brian Morris, head of savings at the Building Societies Association (BSA), said there was some breathing space for the providers of Isas to administer the changes.
"We will be checking with our members that six months is sufficient," he said.
"The increase in the limit is very welcome and something that we lobbied for. However, we would have preferred for this all come into force in one go."
Individual Savings Accounts (ISAs)
With an ISA you can save up to £7,200 each year and not pay UK tax on the income you receive from your investment.
This factsheet describes the types of ISA you can have and how much you can save each tax year. A tax year runs from 6 April to 5 April the following year.
Types of ISA - Cash or Stocks and Shares
An ISA can be made up of an investment in cash, or investments like stocks and shares or insurance. Individual savers are able to invest in two separate ISAs in any one tax year: one cash ISA and one stocks and shares ISA.
ISA Managers
All ISA managers, such as banks and building societies, must be authorised by the Financial Services Authority (FSA). If they are authorised, they will then have to be approved by HM Revenue & Customs (HMRC).
Using an authorised firm (or authorised person) means that you will have access to available complaints procedures, the Financial Ombudsman Scheme and the Financial Services Compensation Scheme if things go wrong.
Approval does not mean that HMRC can guarantee
- the ISA manager’s performance, or
- that the investment will produce a satisfactory return.
Investment limits
For cash ISAs, an individual can invest up to £3,600 a year, and can only invest with one provider in any one tax year.
For stocks and shares ISAs, an individual can invest up to £7,200 a year, and can only invest with one provider in any one tax year.
If an individual wants to invest in both a cash ISA and a stocks and shares ISA in the same tax year, the separate limits for each type of ISA still apply, but the individual cannot invest more than £7,200 in total. The individual’s cash ISA and stocks and shares ISA can be with either the same or with different providers.
Example
An individual saves £1,200 in a cash ISA at the beginning of the tax year. In the same tax year they could save another £6,000 in ISAs. This could be up to another £2,400 in the same cash ISA and the remainder of the £6000 in a stocks and shares ISA, or up to £6,000 in a stocks and shares ISA.
Transferring an ISA
You can transfer your cash ISA to another ISA manager, either into another cash ISA or into a stocks and shares ISA.
You can transfer your stocks and shares ISA to another ISA manager, but only into another stocks and shares ISA. You cannot transfer a stocks and shares ISA into a cash ISA.
You are able to transfer some or all of the money saved in previous tax years without affecting your annual ISA investment allowance.
Getting advice
If you have any questions about the tax rules for ISAs
- call our ISA Helpline on 0845 604 1701 (Monday -Thursday 8.30-5.00, Friday 8.30-4.30).
Please have the information about your ISA available when you call.
Where to get an ISA
You can get an ISA by going to an ISA manager. These include
- banks and building societies
- National Savings and Investments
- financial advisers
- some supermarkets and retailers.
Authorised ISA managers
To find out if an ISA manager is authorised by the FSA
- phone their Consumer Helpline on 0845 606 1234
Tax benefits of ISAs
- No tax payable on the income you receive from your ISA savings and investments.
- No tax payable on capital gains arising on your investments.
- You can take your money out at any time (but some types have a notice period).
- You do not have to tell us about income and capital gains from ISA savings and investments.
Example 1
An individual has a total of £9,000 saved in cash ISAs from previous tax years. They plan to invest their full current year ISA annual investment allowance of £7,200 in a stocks and shares ISA. In the same tax year they could also transfer some or all of the £9,000 held in cash ISAs in to any stocks and shares ISA(s).
You are also able to transfer money saved in the current tax year. Such transfers must be the whole amount saved in that tax year in that ISA up to the day of the transfer. Once the money is transferred, it is treated as if it had been invested directly into the new ISA in that tax year. You are then still able to save up to the full remaining balance of your £7,200 annual ISA investment allowance in that tax year, including up to £3,600 in a cash ISA.
Example 2
An individual saves £3,600 in a cash ISA at the beginning of a tax year. They could transfer the whole £3,600 to a stocks and shares ISA. The individual could then still save up to another £3,600 into their ISAs, either in the same stocks and shares ISA, in a cash ISA or in a combination of both.
Your ISA must be transferred directly between your existing ISA manager and the new one. Ask the new ISA manager to arrange the transfer. Check the terms and conditions with your ISA manager to find out if you will be charged for transferring.
You cannot arrange a transfer yourself by closing the first ISA and paying the money to another ISA manager.
Duplication
Remember you cannot invest in more than one cash ISA, or more than one stocks and shares ISA in the same tax year.
Mistakes do happen. If you do invest in more than one ISA of the same type in a tax year, the second ISA will not be tax-advantaged.
If this has happened call our ISA helpline. Have the details of your ISA accounts to hand when you call.
Moving abroad
You can only subscribe to an ISA if you are resident and ordinarily resident in the UK for tax purposes. Overseas residents are not eligible to apply for an ISA. If you are unsure about this, call our Centre for Non-Residents on
- 0845 070 0040 (UK) or
- 44 151 210 2222 (from abroad).
If you cease to be a UK resident while you already have an ISA open, you will no longer be able to put money into it. However, you will still be able to keep your ISA open and you will still be entitled to the tax benefits on investments held in the ISA. If you then return to be UK resident and ordinarily resident, you can start putting money in again.
Crown employees overseas
If you are a crown employee, such as a diplomat or a member of the armed forces, and you are working overseas and paid by the Government, you are entitled to open an ISA. You can continue to invest in your ISA while you are overseas.
This also applies to your husband, wife or civil partner.
Financial Services Authority
The Financial Services Authority (FSA) is the independent watchdog set up by the government to regulate financial services and protect your rights.
The FSA publish a booklet called The FSA Guide to Financial Advice. You can get it
- • by calling the FSA Consumer Helpline on 0845 606 1234, or
• online at http://www.moneymadeclear.fsa.gov.uk/pdfs/financial_advice.pdf
Complaints about ISAs
The Financial Ombudsman service helps to settle individual disputes between consumers and financial firms. Their service is free.
To find out more information
• call their Helpline on 0845 080 1800
• email complaint.info@financial-ombudsman.org.uk, or
• visit www.financial-ombudsman.org.uk
http://www.hmrc.gov.uk/leaflets/isa-factsheet.htm
Savers will be able to put up to £10,200 a year into tax-free individual savings accounts (Isas) as a result of this week's budget – with the over-50s allowed to take advantage of the increased allowances from October.
Since Labour launched Isas in 1999 it has only increased the allowances once. Until now, savers over the age of 18 could invest £3,600 in a cash savings account and the same amount in shares and stockmarket funds.
Isas are attractive because, unlike normal savings accounts, all interest is paid tax free. They make particular sense when interest rates are more attractive, and to higher-rate taxpayers – those earning roughly £43,000-plus.
This week's changes will mean up to £5,100 in cash can be invested, and the same amount in a shares account.
Only the over-50s will benefit this tax year – they will be allowed to make use of the extra allowance from 6 October, while for younger savers the new allowances kick in next April.
The Treasury said the move would benefit around 5 million savers who currently use their full Isa allowance. Around 18 million people hold an Isa account – past or present.
Although savings specialists have long been calling for an increase in allowances, some were unimpressed with the chancellor's response.
"An extra £1,500 from 6 October on a cash Isa paying 3% will give extra income of £22.50 over the rest of the tax year, meaning a tax saving of just £9 for a 40% taxpayer," says Carolyn Steppler, associate partner in personal tax at KPMG in the UK.
Although the interest rates on Isas are at an all-time low, it is still possible to get 3.56%. NatWest, Barclays, HSBC and Marks & Spencer all offer cash Isas paying in excess of 3%.
The account paying 3.56% is offered by Manchester Building Society – where this writer has just moved his allowance. Its Premier Isa 45 has the best rate, and, crucially, allows users to transfer in balances held with other providers. The only downside is that savers have to give 45 days notice to access their savings and requires you to fill in paper forms. If you are after speed and ease, M&S's 3.1% is best.
NatWest should be avoided unless you are an existing customer – for some reason it makes opening a Isa account as hard as it can; you are required to open a non-Isa account as well, and make appointments to see someone at a branch. I gave up.
Michelle Slade, savings analyst at Moneyfacts.co.uk, says: "The over-50s will receive an extra £5.34 this tax year should they top up with the additional £1,500 in October, compared with investing that amount at the same rate in a standard savings account. Anyone not in the top-paying account will receive much less benefit, with those in an average paying account getting just £2.91 in additional interest."
The cash Isa's appeal has soared since the credit crunch. In December a 17% annual rise in cash Isa savings, to £163bn, was the biggest since 2003-04.
http://www.guardian.co.uk/money/2009/apr/25/isa-allowance-savings
Many older Britons remain unclear on upcoming changes to ISA rules, Saga has warned.
A study from the savings account provider shows that only 5% of over-50s know exactly what the rule changes, which come into force on October 6th, will entail.
Meanwhile, 41% know that the savings limit is increasing, but cannot say by how much.
Under reforms announced in April's Budget, the tax-free cash ISA threshold will increase from £3,600 to £5,100 next month for everyone who was born on or before April 5th 1960.
All other age groups will then be able to gain access to this increased allowance from April 2010.
Commenting on the study, Andrew Goodsell, chief executive of Saga Group, said: "ISAs are a vital savings vehicle but clearly more needs to be done to ensure people make the most of the benefits available."
He added that over-50s should "take a closer look at their savings and investments and to research the ISAs available to them".
Saga's study also showed that only 38% of older Britons know how much the current ISA limit is.
This includes 29% of 50 to 54-year-olds and 42% of 60 to 64-year-olds.
http://www.compareandsave.com/news/Elderly-unsure-of-ISA-allowance-changes/
The Conservatives have announced plans to make millions of men now in their fifties work for an extra year before they receive their state pension.
Shadow chancellor George Osborne will raise the state pension age from 65 to 66 from 2016 if the Tories win the next election, to help tackle UK debts.
He has also not ruled out a rise in pension age for women towards 66.
The government has already announced plans to raise the state pension age to 66 but between 2024 and 2026.
Bringing the move forward would mean many more people than previously expected, particularly those aged between 49 and 59, having to work a year longer before qualifying for a state pension.
Conservative Party sources say the change would save £13bn a year from the budget deficit, about 0.75% of GDP each year.
Long-term saving
Under the government's existing plans, the state pension age will rise gradually from 65 to 68 between 2024 to 2046.
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It is surprising that the Labour chancellor chose to make this announcement - which affects hundreds of thousands of people - in the middle of a Conservative Party conference Tory spokesman
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This was designed to help pay for restoring the link between pensions and earnings which both Labour and the Conservatives are committed to introducing before the end of the next Parliament.
Mr Osborne will announce the pension plan in a speech to his party in Manchester later.
Mr Osborne is expected to say the rise in the retirement age will be "how we can afford increasing the basic state pension for all".
He will go on to describe it as "one of those trade-offs any honest government has to confront".
The government is currently intending to equalise the state pension age for women, so that it rises from 60 to 65 from 2010 to 2020.
The Tories said how this would link into their new policy was "up for review" - but they did not rule out that women could see their pension age rise towards 66 from around 2016.
Senior Tory sources said the change was designed to lock in a sustainable and long-term saving into the public finances.
They acknowledged that the decision could prove unpopular with some but they said they were being deliberately upfront about a tough decision that would make credible savings in the long term.
Shadow secretary for work and pensions, Theresa May, told BBC Two's Newsnight that the UK's "ageing population" made it necessary to look "at what point it is appropriate for people to be receiving their state pension".
She added: "I'm afraid there are some tough choices to be made."
'Surprising'
Mr Osborne is under pressure to demonstrate that he has a fully-worked out plan to deal with Britain's record debts - and pay for some of the measures announced this week to deal with unemployment.
But his big speech looks in danger of being overshadowed by Chancellor Alistair Darling's announcement of a pay freeze for 750,000 senior and middle-ranking civil servants, sparking Tory anger.
A Tory spokesman said Mr Darling's announcement, on Monday evening, shows that "the Conservative Party is setting the terms of the political debate on the economy".
He added: "It is surprising that the Labour chancellor chose to make this announcement - which affects hundreds of thousands of people - in the middle of a Conservative Party conference.
"People will question his motives. Tomorrow (Tuesday) George Osborne will set out an overall approach to deal with Labour's debt crisis".
But Labour sources insisted they were not trying to scupper Mr Osborne's speech, saying public sector pay was simply the first issue in Mr Darling's in-tray after he returned from the Labour conference and a series of foreign engagements.
http://news.bbc.co.uk/1/hi/uk_politics/8291835.stm
A change enabling millions of savers aged over 50 to increase the amount deposited in a tax-free Individual Savings Account (Isa) has come in.
The amount people can save in an Isa has now risen from £7,200 to £10,200, of which half can be saved in cash and half in stocks and shares.
The new limit, which was announced in this year's Budget, is for anyone born on or before 5 April 1960.
For everyone else, the limit will rise from 6 April 2010.
"I am determined to help savers, because while low interest rates have helped millions of homeowners, I also know that they have hit those who rely on their savings to get by," said Chancellor Alistair Darling.
Change
Isas were introduced 10 years ago by then-chancellor Gordon Brown in an attempt to encourage UK residents to get into the savings habit.
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The new rules...present investors with a bigger Isa opportunity than ever before Rob Fisher, Fidelity International
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Now there are about 19 million Isa account holders in the UK, with five million using the full allowance each year.
Investors can open one cash Isa and one stocks and shares Isa each year and various providers are offering different options for those aged 50 and over to top up their existing Isas.
Some will allow a top-up to variable-rate Isas, but not to fixed-rate products. Others will allow fixed-rate top-ups because the change is considered an "exceptional circumstance".
Other providers will allow people to open a parallel extra Isa, where they can save up to the extra £1,500 cash allowance, but the interest rate will be set at the level offered on the day - not the level offered earlier in the year.
"Isas have been around for several years now, and while they are widely understood, we believe some lingering perceptions remain that quite simply stop some investors taking advantage of the benefits that are theirs for the taking," said Rob Fisher, head of personal investments at Fidelity International.
"The new rules coming into effect now, and the subsequent changes which are set to happen at the start of the new tax year, present investors with a bigger Isa opportunity than ever before."
http://news.bbc.co.uk/1/hi/business/8291242.stm
Tax codes
Tax codes - the basics
What your tax code means and how it's worked out, understanding emergency tax codes and changes that can affect your tax code
Understanding your PAYE Coding Notice
Why you are sent a PAYE Coding Notice form P2, common entries explained and what to do if you think there's a mistake
Common PAYE Coding Notice entries explained
The most common entries on a PAYE coding notice, and how they are used
Company benefits in your tax code
Understanding company benefits in your tax code and PAYE Coding Notice
Emergency tax codes
You might be put on an emergency tax code. How it works, what to do to get off it and information on tax refunds
Pensions, state benefits and your tax code
Checking and understanding your tax code if you get a pension and/or state benefits
Expense payments in your tax code
Understanding expenses payments in your tax code and PAYE Coding Notice
How underpayments of tax affect your tax code
How your underpaid tax is collected through your tax code and what to do if you think a mistake has been made
Other income taxed through your tax code
How and when other income is taxed through your tax code, such as rental or savings income
What to do if your tax code is wrong
Who to contact about your tax code if you think it's wrong, and how to get your tax corrected
If you have more than one tax code
How to check you're paying the right tax if you have several tax codes
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTa...
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