Tel: +44 (0) 1252 728 598 Fax: +44 (0) 1252 728 652

Email: paul@taxaccountancy.com

www.branstonadams.co.uk

The amount of state pension you will receive upon retirement is based on the number of full tax years during which you have paid national insurance contributions (NICs). These years are called qualifying years. If you will reach state retirement age (currently 65 for men and 60 for women) before 6 April 2010, or are already over that age, you need up to 44 qualifying years (for men) and 39 for women in order to achieve a full state pension. This can be difficult to achieve if you have spent some years in full-time study or caring for children.  In such cases, you may wish to top up your NIC record for some of the missing years to improve the amount of state pension you will receive upon retirement. However, before you make this decision you need to check how many qualifying years you have already accumulated. You can do this by ringing the NI enquiries line on 0845 915 5996.  If you are due

to reach state retirement age after 5 April 2010 you will only require 30 qualifying years to receive the full state pension, so a top-up may not be necessary.

If your 65th birthday (60th for women) falls between 6 April 2008 and 5 April 2015, you have a unique opportunity to top up your NIC record for any six tax years since 1975 where you are missing contributions. You may do this by paying voluntary Class 3 NICs at £12.05 per week. The National Insurance office is responsible for notifying taxpayers when they have not paid enough NICs in a tax year to make it a qualifying year.  However, for the years 1996/97 to 2001/02 the office failed to do this.  Consequently, many people received letters informing

them that their NICs for past years had fallen short.  Despite this, taxpayers who reached retirement age before 24 October 2004 can still top up their NICs for the years between 1996/97 and 2001/02 by 6 April 2010.  Furthermore, contributions may be paid at the rates that applied in those years.

The deadline for paying NICs for missing years is generally six years from the end of the relevant tax year. So if you missed paying contributions in 2003/04 you have until 5 April 2010 to top up that year.  Paying missing NICs for a recent tax year will also allow you to qualify for incapacity benefit or maternity allowance. You may want to provide cover for these allowances even if you already have 30 qualifying years.  Please note, if you reach state pension age on or after 6 April 2010 your entitlement to bereavement allowances will still depend on 44 years (men) or 39 years (women) of contributions. If you qualify for Home Responsibilities Protection, this will help to protect your entitlement to the state pension, and could reduce the number of qualifying years required.

We can help you to decide whether to top up your NICs, and to plan for a more comfortable retirement – please contact us for details.

Tomorrow:  “The Rise and Fall of Furnished Holiday Lettings – New penalty system for incorrect tax”

Chartered Certified Accountants & Savvy Panellists

Suite 2, Victoria House, South Street, Farnham, Surrey. GU9 7QU

Tel: +44 (0) 1252 728 598 Fax: +44 (0) 1252 728 652

Email: paul@taxaccountancy.com

http://www.branstonadams.co.uk

Tomorrow: “Should You Increase Your National Insurance Contributions?”

You can download the newsletter in full by visiting

http://www.branstonadams.co.uk/newsletters.htm

Introduction

Maintaining your existing customer-base is invariably less costly than generating new business. Consider the following low-risk strategies.

Responding to current trends

Researching current trends in the market and observing how your customers and competitors are responding will allow you to adjust your products or services accordingly, and to compile

a clear and consistent marketing message which demonstrates how you can meet the changing needs of customers.

Increasing cross-selling and upselling

Cross-selling and upselling to existing customers are cost-effective ways of increasing revenue. Make sure your customers are aware of the other products and services

you can provide and offer them incentives to increase the volume and range of their existing orders.

Rewarding loyalty

Offering a loyalty scheme for long-standing and valued customers can show your appreciation and help to secure future business. Consider including loyalty vouchers to encourage your customers to try your other products or services; these can be a preferable alternative to cutting prices and will not devalue your business.

Keeping in regular contact

It is important to keep the lines of communication open. You might send a regular newsletter to your top customers, offering useful information and advice while

promoting your services. Contact customers by telephone to discuss how you can help them further, and if appropriate offer to arrange a meeting.

Generating new leads

As well as working to maintain existing customers, businesses must also continue to target prospects. By instigating some low-cost marketing strategies, you could even turn the situation to your advantage by gaining market share from your competitors.

Encouraging referrals and recommendations

Setting up a cross-referral system with your suppliers, an other businesses that complement yours, is an effective way of generating mutually beneficial leads. You can

also use incentives to encourage existing customers to recommend your business.

Networking

Attending conferences, networking events, trade shows or lunches can generate significant new business opportunities. You can improve your success rate by researching the details

of the events beforehand and selecting those which are most likely to generate useful contacts.

Your business website

A well-designed and up-to-date company website provides both prospects and customers with 24-hour access to your products and services, and can be an

effective and low-cost way of generating sales. Make it easy for visitors to find information and place orders, and include your website address on all correspondence.

Electronic marketing

Sending a monthly email update containing news, information and useful tips is another cost-effective way of keeping in regular contact with both customers and prospects, and

reminding them of how you can be of assistance.

Marketing your business in a downturn

During times of economic difficulty, the marketing budget is often one of the first casualties.  However, in a recession it is more important than ever to promote awareness of your

business, protect your existing customer base and to be well-positioned when the economy picks up.  In an economic downturn, it is essential to find ways of securing new and repeat business.  With careful planning you could even improve your business’s prospects in the long-term.

• Introduction & Highlights
• Income Tax and Personal Savings
• Capital Taxes
• Business Tax and Investment Incentives
• Tax and Travel
• Value Added Tax
• Duties
• Penalties Reform
• National Insurance Contributions (NICs)
• Other Measures
• What They Said
• My Key Budget Points
• 2009/10 Tax Calendar

For more information about any of the issues raised in the report, to find out how they affect you and your business or for a copy of the full report, please contact :-

Branston Adams
Suite 2, Victoria House, South Street, Farnham, Surrey. GU9 7QU
Tel: +44 (0) 1252 728 598 Fax: +44 (0) 1252 728 652
Email: paul@taxaccountancy.com
http://www.branstonadams.co.uk

Please note: while most taxation changes take effect from the start of the financial year, or tax year, some may not take effect until 2010 or later.  Where relevant, details of these changes are included in the full report.

We start today with the “Introduction & Highlights”.  Tomorrow’s post will include “Business Tax and Investment Incentives”.

Introduction & Highlights

Chancellor Alistair Darling has unveiled a series of measures aimed at tackling the ‘unprecedented economic crisis’.  As widely anticipated, growth forecasts for 2009 have been revised down, with the economy expected to shrink by 3.5%; while borrowing forecasts have risen sharply to £175 billion.  However, despite the economic gloom, the Chancellor asserted that the economy will recover, forecasting growth of 1.25% next year.

Key announcements include the introduction, from April 2010, of a 50% income tax rate for those earning more than £150,000 a year.  The stamp duty land tax ‘holiday’ for residential properties valued at £175,000 or less willbe extended to the end of 2009.  Measures for businesses include the introduction of a temporary 40% first year allowance and an extension of help for loss-making companies.

The Chancellor allocated £1 billion to tackle climate change, and announced a commitment to cut UK carbon emissions by 34% by 2020.  The introduction of a ‘car scrappage’ scheme was also confirmed, offering £2,000 to people who trade in cars that are over 10 years old.  Meanwhile, fuel duty will rise by 2p a litre from September 2009.

Other measures include an increase in the child element of Child Tax Credit from April 2010; credits towards the basic state pension for grandparents of working age who
care for their grandchildren; and a rise in the annual limit for ISAs to £10,200.

Budget Highlights

• 50% income tax for high earners
• 40% first year capital allowance
• Extension of trade loss carry back rules
• Extension of SDLT ‘holiday’
• Removal of higher rate tax
• Relief on pension contributions

Economic forecasts for 2009/10

• Inflation 1%
• Government spending £608 billion
• Growth -3.5%
• Government receipts £496 billion
• Net Borrowing £175 billion
• Public Sector Year End Net Debt £792 billion