Pension contributions Law question

Pension contributions

It is important for tax purposes to distinguish between payments into:

  1. An occupational pension scheme runs by an employer
  2. A personal pension scheme

Occupational scheme – The employer takes the pension contributions from pay before deducting tax. The employee pays tax on what’s left. So whether tax is paid at basic, higher or additional rate full relief is given straightaway.

Personal scheme – Pension contributions will be paid from earnings that have already been taxed. The pension provider therefore claims tax back from the government at the basic rate of 20 per cent. In practice, this means that for every £80 paid into the pension, £100 ends up in the pension pot.

Claiming higher rate relief – If your tax is paid at a higher rate, the difference is adjusted through the self-assessment scheme – effectively the tax “bands” are adjusted

Non tax payers  – If you don’t pay tax you can still pay into a personal pension scheme and benefit from basic rate tax relief (20 per cent) on the first £2,880 a year you put in. In practice this means that if you pay £2,880 the government will top up your contribution to make it £3,600. There is no tax relief for contributions above this amount.

Limits on tax relief – You can save as much as you like into any number and type of registered pension schemes and get tax relief on contributions of up to 100 per cent of your earnings (salary and other earned income) each year, provided you paid the contribution before age 75.  But the amount you save each year toward a pension from which you benefit from tax relief is subject to an ‘annual allowance’.  These figures are taken from the accounts of Mobile mechanic London. The annual allowance for the tax year 2013-14 is £50,000. Payments made above this limit will be subject to a tax charge.

You can carry forward any unused annual allowance from the last three tax years to the current tax year so you might not have to pay the annual allowance charge.

The tax charged on excess payments will be calculated at the taxpayer’s marginal rate of tax.

Administration – For many taxpayers who are in full time employment, with no other sources of income – or indeed capital gains – tax is collected through the PAYE system and the taxpayer does not actually come in contact with HMRC at all.

SA – Income which is not taxed at source is subject to the self-assessment system. As the name implies this system lays the responsibility for ensuring that the tax is paid on the taxpayer himself.

Investment and property income

L3 Investment and property income

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Banks and Building Societies will collect tax at 20% from interest, leaving the taxpayer to receive interest net. Interest received from NSB investment

Accounts and direct saver accounts is paid gross, as is interest on gilt-edged securities

 

ISA – ISAs are tax favoured savings and investment accounts. You can use them to save cash, or invest in stocks and shares. The maximum you can put in to an ISA is £11,520 in the tax year 2013-14, up to £5,760 of which can be saved in cash

 

You don’t pay any tax on the interest or dividends you receive from an ISA and any profits from investments are free of Capital Gains Tax. But this does mean that you can’t use losses on ISA investments to reduce Capital Gains Tax on profits from investments outside the ISA.

Junior ISA – Junior ISAs are new long-term tax favoured savings accounts especially for children. From 1 November 2011 they are available to any child under 18, living in the UK, who does not have a Child Trust Fund (CTF) account. Like ISAs, you can use them to save cash or invest in stocks and shares. You can save up to £3,720 in the tax year 2013-14 into a Junior ISA and you won’t pay any tax on the interest or dividends.

Property Income – Rents receivable on lets in the UK

  • Lease premiums (short leases <50yr)
  • Rents from fixed caravans/moored houseboats

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Partnership agreement pt.2

TEN                No partner shall without the express consent of the other partners do any of the following acts:

(a)        draw, accept or endorse any bill of exchange or promissory note, or contract any debt, on account of the partnership or in any manner pledge its credit or employ its funds, except in the normal course of its business;

(b)       lend money to, or give credit to or have dealings on behalf of the partnership with any person, firm or company whom the other partners have forbidden him to lend to or give credit to or have dealings with respectively;

(c)        release, compromise or compound any debt owing to or any claim of the partnership;

(d)       take any steps by way of management, control or conduct of the partnership business which are not in accordance with the policy laid down by the partnership;

(e)        on behalf of the partnership, guarantee payment of or discharge any sum or claim, other than by way of undertaking given in the normal course of business of the partnership;

(f)        whether on behalf of the partnership or as an individual, become cautioner for grant any guarantee or security for any person, firm or company;

(g)       as an individual, enter into any speculative transactions other than by way of investment of his own free capital exclusive of any capital belonging to him in the business of the partnership;

(h)       knowingly do or permit anything to be done whereby the partnership property may be subjected to diligence of any kind;

(i)        assign or charge his share and interest in the partnership or any part thereof.

If any partner shall act in any way contrary to the provisions of this clause he shall indemnify the partnership for any loss resulting therefrom.

ELEVEN         If any party shall:

(a)        become apparently insolvent or enter into any competition or arrangement for the benefit of his creditors generally,

(b)       do any act prohibited by Clause Nine hereof;

(c)        grossly neglect the business of the partnership;

(d)       act in such a way as to bring his name or the reputation of the partnership into dispute;

(e)        act in any respect contrary to the provisions of this contract or to good faith between partners.

Then, in any of these events, the other partners may expel the partner concerned with effect from such date as shall be specified in a written notice given by or on behalf of such other partners to the partner concerned who shall be deemed to have ceased to be a partner on such date.

 

PARTNERSHIP AGREEMENT

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PARTNERSHIP AGREEMENT

 

between

 

Maggie Jones (hereinafter called “the First Party”)

 

and

 

Campbell Jamieson (hereinafter called “the Second Party”)

WHEREAS the Parties hereto have agreed to carry on business together in partnership as Jones & Jamieson Associates THEREFORE the Parties AGREE:-

ONE                The Parties shall carry on the business of an advertising agency in partnership under the firm name of Jones & Jamieson Associates                                               and/or elsewhere as may be agreed.

TWO               The partnership shall commence on 21st March 2014 and subject to the provisions hereof, shall continue thereafter until dissolved by written notice of THREE (3) years given by any partner to the other partners.

THREE           The capital of the partnership shall be such sums contributed by the partners in such proportions as may be agreed by the partners from time to time and the respective contributions of the partners to capital shall be credited in the books and accounts of the partnership.  Each partner shall maintain at credit of his capital account at least such sum as the partners shall mutually agree so that the total at credit of the capital accounts of the partners shall be adequate for the efficient conduct of the business.   Interest shall be payable on the sums standing to the credit of the capital account of each partner at the end of each year at the rate of TWO AND A HALF PERCENT (2.5%) above Bank of England base rate per cent per annum or such other rate as shall be mutually agreed from time to time but shall be calculated and become payable only upon completion of the annual accounts of the partnership.   Interest on capital shall be credited to the capital account of the partners before the profit for the year is ascertained.

FOUR             The First Party shall be entitled to SIXTY PERCENT (60%) of the profit of the partnership and shall bear SIXTY PERCENT (60%) of any losses, and the Second Party will be entitled to FORTY PERCENT (40%) of the profit of the partnership and shall bear FORTY PERCENT (40%) of any losses after the allocation of partners salaries which will be agreed annually and may vary from year to year.  The partners shall be entitled to draw in anticipation of profits such amounts and at such times as the partners may mutually agree.

FIVE               Proper books shall be kept in which all financial transactions of the partnership shall be entered and the books shall be brought to a balance on the 31st January in each year.  A Balance Sheet as at that date with Profit and Loss Accounts for the period to that date shall be prepared and audited by Findlay & Company, Chartered Accountants, 11 Dudhope Terrace, Dundee, or such other Accountants as the partners may from time to time agree.   Copies of the audited Balance Sheet and Accounts shall be furnished to each partner as soon as practicable and the principal copy thereof shall be submitted for signature by each of the partners and, when so signed shall be conclusive.   If the Balance Sheet and Accounts are not signed by any partner within a period of three months after being submitted to him they shall be deemed to have been approved by such partner unless written objections to them have been stated by him within the said period.    Failing agreement among the partners such objections shall be disposed of by an independent accountant to be mutually agreed by the partners or in the absence of such agreement, to be nominated by the arbiter aftermentioned; the accountants shall have power to employ any professional services which he may deem necessary for determination of the dispute.   The decision of such independent accountants shall be conclusive and they shall have power to sign the Balance Sheet and Accounts with any amendments they shall consider proper.   The Balance Sheet and Accounts may be challenged within three months after signature by the partners or independent accountant or arbiter as the case may be, on the ground of any palpable error or omission but subject to the rectification thereof shall remain final and binding on all concerned.   In any Balance Sheet no sums shall be placed on the value of goodwill.

 

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Dumble v Electoral Registration Officer for the Borders 1980 SLT (Sh Ct) 60

Dumble v Electoral Registration Officer for the Borders 1980 SLT (Sh Ct) 60

  1. Summarise and explain briefly the continuing significance of the above case in relation to the issue of entitlement to vote. The legislation argued over in this case has since been reformed but assess the relevance of its interpretation to the equivalent provisions of the 1983 Act.
  1. Apply the legal interpretation illustrated authoritatively in the above case to solving the fictional problem below.
  1. Restrict each part of your answer to a maximum of 500 words and a minimum of 350.

To understand the significance and relevance to the provisions of the 1983 act it must be noted what the act states:

The Representation of the People Act 1949, s. 1 (as amended by the Representation of the People Act 1969, Sched. 2, para 1 enacts inter alia:

“(1) … the persons entitled to vote as electors at a parliamentary election in any constituency shall be those who— (a) are resident there on the qualifying date”.

In the case of Dumble v Electoral Registration Officer for the Borders 1980 SLT (Sh Ct) 60

The name Malone appeared in the register of electors for a certain political party in that constituency and had used the address he had in that constituency as a base for the political career he had. Thomas Dumble had appealed from a decision of the electoral registration officer outlawing an opposition to the existence of the name Gerald Malone, located at the address in the register of elections – Kirkland’s Lodge, Ancrum. In the constituency of Roxburgh, Selkirk and Pebbles. The objection arose from Mr Malone resided at 17 Mirrlees drive, Glasgow, not Kirkland’s lodge on the qualifying date. Mr M is the parliamentary elector for this constituency and the agent for liberal candidate as he resides at 2 Gala lane, Galashiels.

It is fair to say that Mr Malone is a member of the political party he is a prospective parliamentary candidate and used the address due to his political career however the principle address was located in another constituency which would have been more convenient for his profession. It was held, that the appeal was refused on the grounds that the court considered the fact that there was a possibility of a person having a qualifying address in multiple constituencies, also having two careers which are very important to him which required separate constituencies should appear in separate constituencies; The appeal was rejected.

The parliament have foreseen events like this as mentioned in the case above this is why case is significant in regards to the issue of voting as there are many people who live in more than one home due to personal reasons or work commitments. It was decided that Mr Malone qualifies for registration at both addresses and the fact he may have to travel is impartial to the decision.

386 words

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constitutional conventions

This will clarify why constitutional conventions are unwritten source of the UK’s constitution and whether they still remain significant today.

We do not have a single authoritative document identifying the principle institutions of the state and the powers held by each; and even where a system has a constitution in this sense; it never offers a complete description of that systems constitutional law. It is not correct, however, to say that the British constitution is “unwritten”. Our constitution is the aggregate of several sources, some written, some not; some legal in character, others non-legal in the sense of not being judicially enforceable or of deriving rather from the realms of legal and political theory 1

Constitution is based on conventions and that in turn those conventions are rules which play a vital role in the constitution although they are not enforced by rules of law. For Dicey, the central significance of constitutional conventions was that they prescribed the manner in which the prerogatives of power the crown (or of ministers or servants of the crown) fell to be excercised.2

Constitutional conventions hold no legal authority and can also be changed. Conventions are always emerging, crystallising and dissolving, and it is sometimes questionable whether a convention has been broken or has simply been changed 3 Constitutional conventions are far from permanent. This is due to the fact it is not created and bound by law. The conventions do not require formal repeal as citizens can simply avoid observing them. As time goes on the constitutional conventions will change along with it too. Dicey had identified two types of constitutional rule.

The one set of rules are in the strictest sense “laws”, since they are rules (whether derived from statue or… the common law) enforced by the courts. The other set of rules consists of conventions, understandings, habits or practises which, though they may regulate the conduct of…officials, are not in reality laws at all since they are not enforced by the courts”4 If there happened to be a disagreement between a convention and the legal rule, the court will always uphold the legal rule. Dicey distinguishes laws from conventions based on whether they can be imposed by the courts not on the level of their status.

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Public law basics

Library/Research Exercise

How the Civil Service is run is shown in the Act of Constitutional Reform Governance 2010. Why the service is important and significant is because it helps run the operation of the government in the UK. The service aids the government with implementing policies and creating services for the public. Ministers have a member of the civil service accountable to them and following that chain of command the Minister is consecutively accountable to the Parliament. Civil servants will participate in a fair and open competition and based on their Merits they will be selected and then obliged to work hard and remain dedicated. The servants will have to make an obligation to the service and to follow their standards of conduct. Their core values are as follows:

Honesty is being truthful. It involves being frank with the work produced and the facts that are found. When an issue has risen it must be corrected and resources should be used only for only legitimate beneficial purposes not for however, personal gain or even interest. When being honest it’s important to never mislead members of the Parliament or become subjective by pressures externally by acting dishonestly.

Objectively is carefully constructing information for guidance and making decisions based solely on thorough examination of evidence found. It involves providing information and also advice to ministers. It will be based on the evidence found and efficiently constructed with options and facts. It does not involve disregarding solid facts of evidence or withholding them for members of parliament.

Impartiality is the final core value taken from the service code. In order to do this a servant will act only according to the case merits and will treat all members of the government equally no matter what party they are from. This involves following and performing duties which is fair for everyone. personal political agendas must not be used to influence judgements. Servants must remain composed, unbiased and level headed.

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