Q. I am buying a property with my girlfriend. We are intending to share the mortgage but I am putting up the deposit which is 20% of the purchase price. What is the situation if we split up?
A. This is an area which has been the subject of some legal cases recently, and whilst I am not a legal expert, my understanding is that the situation depends on the details of the particular case. However, it is possible to ensure everyone knows where they stand in advance by drawing up a co-habitation agreement before you proceed with the purchase. Whilst this may seem like an additional cost, it can save significant amounts in future legal disputes. You need to consult a lawyer who can prepare an agreement for you.
Q. I have more than one employment. I am paid a good salary and package from my main employment and act only part time to a second firm. The second firm are deducting National Insurance contributions and in total I think am paying more than I should be. Is there anything I can do about this?
A. You may be able to ‘defer’ some of your contributions to prevent an overpayment if you expect to pay contributions on weekly earnings of at least £805 in one job or £946 in two jobs throughout the tax year. To apply you can either complete form CA72A Application for deferment of payment of Class 1 National Insurance contributions, or write to: HM Revenue & Customs, National Insurance Contributions & Employer Office, Deferment Services, Longbenton, Newcastle upon Tyne, NE98 1ZZ
Q. I have been looking at my annual pension statement which is a personal pension that both me and my employer contribute into. A few years ago most of it was invested in an equity fund but I have noticed that most of the money has gradually been switched into a gilt fund. Originally I had intended to retire next year but this is now not practical so I will have to continue to work for probably another few years. I wonder if as a result I should look to make any changes to how my fund is invested as the now very small amount left in the equity fund has performed much better than the much larger amount in the gilt fund?
A. It sounds as if you are invested in a lifestyle pension fund which is designed to gradually switch the pension fund from equities that are potentially higher risk, but potentially higher return, into gilts which are government securities that are considered to be lower risk but lower return. The idea is to try and reduce the risk of your fund falling sharply as you approach your selected retirement age in the event of a stockmarket crash. This strategy works well if you retire on or about your original planned retirement date. If, as in your case, your retirement plans have changed, it would be prudent to review your investment strategy. If there is a pension scheme adviser nominated by your employer, you should consult them, or failing that take advice from an Independent Financial Adviser.
If you have a question you would like Trevor to answer, please email it to: yourmoney@rwpfg.co.uk or post it to Your Money, Rutherford Wilkinson Ltd, Northumbria House, 21-23 Brenkley Way, Blezard Business Park, Newcastle upon Tyne, NE13 6DS.
0191 217 3340
