Others Flashcards
7 points
Basic of child benefit
- Tax free payment
- Aimed at helping parents cope with cost of bring up children
- One parent claims childbenefit
- Applies till child is 16 or under 20 if they are in approved education or training
- Child Benefit can be claimed but not elected to be piad iif Higher income child benefit tax charge is an issue
- Claining child benefit allows the individdual claiming to be credited with NIC credits if income is below the LEL
- First child parent is paid £25.60 per week, subsequent child £16.95 per week
Outline the features of the High-Income Child Benefit Charge
- Where there is a parent with adjusted net income over £60,000
- Adjusted net income is total gross income less any personal gross pension and charity contributions
- The incoem either individual recieving child benefit or partner
- Higher income child benefit tax chargeable
- 1% of benefit per £200,00 of adjusted net income above £50000
- Income between £60000 to £80,000 child benefit reduces on a sliding scale
- If parents both earn the same, take the parent with the highest earnings
- Charge equal to child benefits recieved when income is £80,000 or more
6 points
Outline the ways Tom and Sally can maximise their entitlement to child benefit
- Tom and Sally can use their available annual allowance and carry forward to increase their pension contributions, which can be deducted off their income to arrive at adjusted net income
- Tom and Sally can use salary sacrifice to bring down their gross income so that their net adjusted income
- They could increase their contributions to charity which can be deducted off thier income to arrive at adjusted net income
- Which deposit account funds into ISA’s or non income generating investments
- Every £200 reduction income below £80,000 will reduce the tax charge by 1%
- All the above would reduce their adjusted net income to £60,000 and below to negate the charge full
Consumer duty four outcomes
- communications
- product and services
- Customer service
- Pirce and value
Application of Communication, product and services, customer service, price and value
Communication
* Tom and Sally must be given the right information and the right time to make informed decision
* Four major life events
- Sally changing jobs recently, after being in last firm for 12 years and recieved a large salary increase
- Children planning going to university, Amelia in 3 years and Noah in five years. They intend to assist with costs
- Mortgage to pay off and retirement planning to consider.
* Requies wide ranging profession advice which must be communicated in the right way
Product and Services
* Any products recommended to Tom and Sally must be fit for purpose and peform as expected, meet their needs and benefit them
Customer service
* Customer service should meet Tom and Sallys need thorugh their relationship with financial adviser
* Standards defined by FCA as meeitng couples reasonable needs and expectation
Price and Value
* Products must be fit for purpose and represent good value for money
* Couple must be at the heart of thier financial advisers business
* The couple can rightly have a clear and consistent expecatation in relation to the advisers assessment of the vlaue of products and services
Statutory sick pay
- Must be sick four days in a row
- 116.75
- Minimum you must legally be paid if your off work sick
- Not means tested
- Average earnings at least £123 a week
Employment support allowance
- Must be under state pension age
- paid sufficient NIC in last 2 years
- worked as employee or self employed
- 13 weeks to assess claim
- After assessment put in work related activity group if you ablet to go back to work in future
- If not then put in supprt group
- paid every two weeks
