Welsh Tax Rates 2019/20

We are starting to see some information being published about the proposed tax rates changes to those people who are classed as living in Wales.

From April 2019, the Welsh Government will set the rate of income tax for Welsh resident taxpayers but this will continue to be collected by HMRC. This means that people living in Wales could pay a different rate of Income Tax compared to people in other parts of the UK. From April 2019, Welsh resident taxpayers employed or in receipt of a pension will have a tax code beginning with C. Those completing a Self Assessment tax return online will be asked about country of residence on their return.

The UK government will reduce each of the 3 rates of income tax – basic, higher and additional rate – paid by Welsh taxpayers by 10p. The Welsh Government will then decide the 3 Welsh rates of income tax, which will be added to the reduced UK rates. The combination of reduced UK rates plus the Welsh rates will determine the overall rate of income tax paid by Welsh taxpayers.

The personal allowance – the amount people can earn before they start paying tax – will continue to be the same as it is in England, Northern Ireland and Scotland. The point at which people start to pay the higher and additional rates of income tax will stay the same as in England and Northern Ireland.

Based on the information to date, it would appear that the changes above will be applied to PAYE, ie., it will impact on the tax code download, PAYE calculations and submissions to HMRC for RTI.  There is no suggestion at this stage that these changes will also follow through and impact on Relief At Source (RAS).

We will therefore be assessing the changes required to both SIPP~Pro and SSAS~Pro to ensure that we deliver these in our tax year end release for March 2019.  Exact details of the schema changes for RTI have yet to be released – these are usually issued during the last third of the calendar year and we will provide more information when these become available.

Reference Source:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/715475/Employer_Bulletin_June_2018.pdf

https://gov.wales/funding/fiscal-reform/welsh-taxes/income-tax/?lang=en

https://gov.wales/docs/caecd/publications/180608-income-tax-faqs-en.pdf

Delta partners with JHC Systems to integrate SIPP functionality

We have partnered with wealth management fintech firm, JHC Systems (JHC) to offer integrated SIPP functionality to its JHC Figaro (Figaro) clients. The partnership means JHC clients can administer SIPPs cost effectively within Figaro via our leading edge Platinum~Pro technology. Given the recent changes to pension drawdown rules, the partnership will enable the wealth management industry to maintain control of the assets held within client SIPPs.

Our Platinum~Pro technology will administer all SIPP functionality from illustrations, tax reclaims, drawdown, PAYE and regulatory reporting, whilst Figaro will continue to manage all assets and represent all accounts.

John Blackman, CEO of JHC said: “SIPPS are becoming increasingly popular as individuals take advantage of the less restrictive drawdown rules. To enable our clients to manage their SIPPs efficiently on an integrated platform, we’ve partnered with the providers of what we consider to be the best administration platform available. Our clients can continue to control their SIPPs seamlessly within Figaro, enjoying unrivalled flexibility and benefiting from increased efficiencies, enhanced services and most importantly, significantly reduced costs.”

Michael Power, Delta’s CEO added: “It’s never been more important for wealth managers to have control over SIPPs and our work with JHC will empower their clients on this front. Using our new Platinum~Pro technology, Figaro clients can administer SIPPs in much the same way as they would ISAs—and all within the one solution. JHC now has the complete package.”

We are currently working on several opportunities to partner with other platforms, insurers, banks, and pension providers. Platinum~Pro ensures compliance, reduced costs and integrates easily; we provide transformational technology for the lifetime savings market.

Fraser Bircher awarded Customer Service Level 2 Apprentice of the Year 2017 by CWCCT

Fraser Bircher, who works in our Client Support Team has been awarded the Customer Service Level 2 Apprentice of the Year 2017 award by Coventry & Warwickshire Chamber of Commerce Training. He was amongst nine award winners recognised for their outstanding achievements over the past year.

Fraser’s tutor Christine Cusick explained that ‘Fraser was motivated and enthusiastic about learning and would always go above and beyond in his work, carrying out further research to enhance his knowledge. Having observed Fraser he always put the customers’ needs as a high priority, he was patient and empathetic to their needs whilst maintaining a professional image at all times.’

We are delighted to see Fraser’s hard work recognised in this way. This is Delta’s 9th apprenticeship success over the past five years and is further demonstration of our commitment to supporting young people and growing our own talent.

The Autumn Statement

The Autumn Statement 2016

Delta Financial Systems (‘Delta’), the leading pensions and retirement administration technology provider, have summarised the main points from the Autumn Statement.  We have summarised below where we feel that it will impact our solutions, clients and the pensions industry as a whole.

The main Autumn Statement document is available here should you wish to read it.

The highlights are as follows:

  • Money Purchase Annual Allowance.  The plan is to reduce this to £4,000 with effect from 6 April 2017.  This is subject to a consultation period and the document is here. The closing date of the consultation period is 15 February 2017.  Whilst this change is subject to consultation, it is unlikely that it will not be introduced.  This should not require any system changes as it a value in System Parameters.
  • This is the last Autumn Statement.  Going forward there will be an Autumn Budget which will be the main event in terms of setting major changes that would apply for the forthcoming tax year.  This means that the first Autumn Budget will happen in November 2017.  In addition there will be a Spring Statement, the first of which will happen in Spring 2018.  As there is a requirement for a fiscal statement to be published twice a year there will still be some form of Statement or Budget in March 2017.  However this does mean that the more important event in terms of announcements of changes for us going forward will be at this time each year rather than in March.
  • Personal Allowances

The thresholds for April 2017 will be:

Personal Allowance                        £11,500

Higher Rate Allowance                  £45,000

These are already known and are controlled in System Parameters.

  • ISAs

The ISA limit is increasing from £15,240 to £20,000 in April 2017.

There are a few things that don’t directly impact on Delta but are related to what we do.  These are:

  • Pension scams – The government will shortly publish a consultation on options to tackle pension scams, including banning cold calling in relation to pensions, giving firms greater powers to block suspicious transfers and making it harder for scammers to abuse ‘small self-administered schemes’. We don’t believe there to be any immediate changes to this, however this will be reviewed when the consultation paper becomes available, the consultation paper isn’t yet available and there is no anticipated date so we will keep an eye on this.
  • Salary sacrifice – the tax advantages of salary sacrifice arrangements have been removed with the exception of a few areas.  One of these areas is in relation to pensions so these arrangements will continue unchanged.  Our technology allows users to record where contributions are paid as part of a salary sacrifice arrangement – this will continue unchanged.
  • Foreign pensions – The tax treatment of foreign pensions will be more closely aligned with the UK’s domestic pension tax regime by bringing foreign pensions and lump sums fully into tax for UK residents, to the same extent as domestic ones. The government will also close specialist pension schemes for those employed abroad (“section 615” schemes) to new saving, extend from 5 to 10 years the taxing rights over recently emigrated non-UK residents’ foreign lump sum payments from funds that have had UK tax relief, align the tax treatment of funds transferred between registered pension schemes, and update the eligibility criteria for foreign schemes to qualify as overseas pensions schemes for tax purposes.
  • Authorised investment funds: dividend distributions to corporate investors – The government will modernise the rules on the taxation of dividend distributions to corporate investors in a way which allows exempt investors, such as pension funds, to obtain credit for tax paid by authorised investment funds and will publish proposals in draft secondary legislation in early 2017. Again, currently there are no more details than this.  In most cases pension funds cannot reclaim tax on dividends but there are a few exceptions.  We currently allow users to record where tax is reclaimable and it is anticipate this will remain unchanged.

So, subject to the action point above, I believe there are no system changes required which is great news for us. The next 12 months is an exciting time for Delta as we develop Platinum~Pro further, watch out for more updates to see what will be delivered over the coming months.

 

Microsoft Apprentices

Delta in the community, BBC skills show at the NEC

Two of our latest 3 Software apprentices, Joe Barber (left) and Samuel Berry (right) were invited to be a part of the Microsoft stand at the skills show at the NEC in Birmingham, talking to young people about what it’s like to be a Software Developer/Tester using the BBC micro:bit stand (in association with Microsoft) with the hope to inspire them to see this route as a viable career path.

Joe Barber had the following comment:

“The skills show was a fantastic opportunity to help all the young generation decide on what they would like to do in the future. I frequently got asked “How do I start my career in Software Development” and I would reply with my experience of how I got into Software Development, I feel like this is where most people have difficulty starting a career.”

Delta play an active part in the Microsoft ambassador program where former apprentices showcase their careers in a bid to promote apprenticeships, we see this as a way for us to play a part in helping to solve the current shortage of skilled people that we have in the industry and is something we are extremely passionate about having now successfully recruited and converted 9 apprentices across the business (development and support team) in the last 5 years, which is a fantastic 100% apprentice to full time employee rate.

agile

Delta is hosting a Tech Event on Agile estimation, planning and tracking tonight

Tonight we are hosting an event in our Birmingham office on Agile estimation, planning and tracking. The doors will open at 6.30pm and the talks start from 7pm, the event is being lead by Brickell Key Award winner @IanCarrollUK who is a consultant, coach and speaker on all topics related to lean, kanban and agile software development.

We already have over 50 people attending and we look forward to seeing you there!

agile

Delta is hosting a Tech Event on Agile estimation, planning and tracking

Next week we are hosting the event in our Birmingham office on the 12th October, the event will focus on Agile estimation, planning and tracking. The doors will open at 6.30pm and the talks start from 7pm, the event is being lead by Brickell Key Award winner @IanCarrollUK who is a consultant, coach and speaker on all topics related to lean, kanban and agile software development.

We already have over 50 people attending, to avoid disappointment please follow the link to reserve your place: https://www.meetup.com/Lean-Agile-Birmingham/events/234330688/