OCTOBER MONTHLY NEWSLETTER – RECAP

ASESA Solutions Ltd - OCTOBER MONTHLY NEWSLETTER – RECAP

October brought a host of important updates on pensions, taxes, wages, and student loans. From retirement planning tips to key deadlines and upcoming changes, here’s your quick roundup to stay ahead and well-prepared this month:

1] Understanding Self-Invested Personal Pensions (SIPPs) SIPPs offer flexible, tax-efficient retirement planning, giving individuals control over contributions and investment choices, either personally or via a provider. Contributions benefit from tax relief, including additional relief for higher-rate taxpayers. Withdrawals can start from age 55 (57 from 2028), with 25% available as tax-free cash. The newsletter also highlighted tax-efficient strategies and flexible options for drawing income or lump sums, showing how SIPPs can be tailored to individual retirement goals.

2] Self-Assessment: Key Deadlines Important Self-Assessment deadlines for the 2024–25 tax year were outlined. First-time filers must register by 5 October. Paper returns are due by 31 October 2025 and online returns by 31 January 2026. Timely payment of liabilities and accurate record-keeping are essential to avoid penalties. The newsletter also reminded taxpayers to gather all relevant income and expense records early to ensure smoother filing and avoid last-minute stress.

3] Update on NMW & NLW – August 2025 Developments The Low Pay Commission (LPC) has been asked to recommend new rates effective from 1 April 2026. The National Living Wage could increase to £12.55–£12.86 per hour, a potential 4.1% rise. Employers should monitor updates, as final rates will be confirmed by the end of October 2025. Additionally, the update emphasised that businesses should start reviewing payroll systems and budget forecasts to accommodate the anticipated changes in wage costs.

4] New Student Loan Plan Type — Plan 5 (Effective April 2026) Plan 5 applies to students who started courses in England from August 2023. Repayments begin from 6 April 2026 for employed borrowers, with a £25,000 threshold and a 9% repayment rate. Employers and payroll systems are preparing for implementation to ensure readiness for the 2026–27 tax year. The newsletter also highlighted that self-employed borrowers will start repayments via Self-Assessment from 6 April 2027, and updated guidance and forms will be available on GOV.UK ahead of the implementation date.