YOUR TIME IS PRECIOUS DON?T WASTE IT.

Remember time spent with an accountant is an investment. So, how do you want to spend yours?

Flexible pension payments hit record high

The number of individuals accessing flexible pension payments has increased by 20% in Q3 2017.

HMRC's quarterly flexible payments from pensions bulletin shows around 198,000 savers used pension freedoms to access their pension early - up from 158,000 in Q3 2016.

Around 435,000 payments were made in Q3 2017 - a record high since the taxman began recording data following the introduction of pension freedoms in April 2015.

The freedoms allow over-55s to take their entire pension pot as a lump sum, with the first 25% tax-free and the rest taxed as if it were income.

The total amount of flexible pension payments made in Q3 2017 also represented a 34% increase on the same quarter last year, rising from 324,000.

While the pension freedoms have benefitted thousands of individuals 2 years on from its launch, the Work and Pensions Select Committee launched an inquiry last month to see if they are working.

Under current rules, savers seeking to withdraw a lump sum from their pension pot are usually taxed on an emergency code which can result in a substantial overpayment.

Steve Webb, director of policy at Royal London, said:

"The way in which pension withdrawals are taxed is little short of a scandal.

"It cannot be right that HMRC can knowingly overtax people to the tune of £100 million per year."

Contact us to discuss pension freedoms.