Insights

All Topics
All Months
Reading Time | < 1 min 01 Mar 2016

Scotland Help to Buy scheme launched

Reading Time • < 1 min

A new Help to Buy scheme has launched, providing interest-free equity loans to first-time buyers and people moving home in Scotland.

The Affordable Home Ownership scheme could provide loans of up to 15% on the purchase price of a new home.

Buyers will need a deposit of at least 5% and a mortgage that covers at least another 80%.

The new scheme also introduces price changes on properties each year until the scheme closes. 

For example if you purchase a home before 31 March 2017, you can spend the maximum price of £230,000. The limit then reduces to £200,000 until 2018 and to £175,000 until 2019 (end of scheme).

Mortgages will also be means-tested under the new scheme, at the level of 3.5 times your joint income for those buying with a partner or 4.5 times if you’re purchasing alone.

To apply for Help to Buy Scheme, follow these steps:

  • contact a participating house builder and view a property
  • speak to a financial adviser/agent that administers the scheme
  • request an application from the agent
  • reserve a property and obtain a reservation agreement
  • submit application to agent.

Contact us today to find out more on Help to Buy schemes.

Read full article
Reading Time | < 1 min 29 Feb 2016

Savers underestimating how much they need for retirement

Reading Time • < 1 min

8 out of 10 people are unaware of how much they need to save to achieve their target for retirement, according to research by Seven Investment Management (7IM).

According to research findings, people believe that the comfortable retirement annual income for an individual is £23,400.

The maximum state pension is just over £6,000 a year, so based on retirement income people would need to be saving enough to generate £17,400 a year in retirement.

When asked on how much they need to save for retirement, 1 in 6 people said they were saving enough while 3 out of 10 said they were saving nothing.

More than half said they were anxious about their savings, increasing concerns of the scale of the savings challenges they could face.

7IM reported that the conservative estimate of saving for retirement would be £348,000 – over twice as much as many people estimated. 

7IM co-founder Justin Urquhart Stewart, said: 

“We’re living longer so its inevitable most of us will have to work longer. But if we’re to avoid working till we drop we have 3 options – save more, save longer and take more investment risk. The earlier you address the problem, the less drastic the solution.”

Talk to us today to discuss about your retirement plan.

Read full article
Reading Time | < 1 min 26 Feb 2016

Business broadband review announced

Reading Time • < 1 min

A new review on business broadband has been launched to attempt to improve businesses access to broadband.

This follows from results published by the Digital Economy and Society Index (DESI) which measures the progress of EU countries towards a digital economy based on key policy areas such as connectivity, digital skills, internet use and the ‘digitalisation’ of public services.

The UK scored above the EU average but is lagging behind compared to other countries on digital development.

The review will look to improve the quality and affordability of broadband to businesses, providing more choice and competition which will help drive down prices and services.

The government’s wider plans on superfast broadband have already provided digital speeds to 3.5 million businesses and homes – this is on track to cover 95% of the UK by 2017.

Business secretary Sajid Javid, said:

“Developing new technologies, an extensive digital infrastructure, vibrant competition and consumer choice are all vital for UK businesses and central to the UK being at the forefront of ‘Industry 4.0’”

Contact us today to discuss about your business plan.

Read full article
Reading Time | < 1 min 25 Feb 2016

Investors expect dividend cuts

Reading Time • < 1 min

56% of personal investors are concerned that businesses may cut their dividends, according to research by The Share Centre (SC).

2,000 investors responded to the research which was undertaken shortly before a number of FTSE 100 companies announced that they are planning to cut their dividends income by as much as 75%.

SC found that 70% of investors are looking for income from their savings, either as the principal goal (15%) or in a balanced portfolio alongside growth (55%).

Investors nearing retirement and looking to collect income from their savings have been effected by low interest rates. Cash savings have also delivered little income, leading to investors to use stock markets as an alternative, and riskier, source of revenue.

Richard Stone, chief executive of SC, said:

“As investors turn their attention to ISAs and making the best use of their ISA allowances, with little prospect of returns on cash increasing and with dividends coming under pressure, those seeking income are left with an uncomfortable choice. 

“The danger is that investors, in their quest for income, are tempted by the returns offered by riskier activities such as crowdfunding or peer-to-peer lending.”

Dividend tax changes

For investors, the 10% tax credit will be replaced with a new dividend tax allowance of £5,000 from April 2016. The annual allowance will not reduce total income for tax purposes and will only apply to dividend income.

Income exceeding the annual allowance will be taxed at the following rates:

basic rate – 7.5%

higher rate – 32.5%

additional rate – 38.1%

Talk to us today to discuss your dividend income.

Read full article
Reading Time | 2 mins 24 Feb 2016

Learnings From Leicester City FC’s Success Over The Last 12 Months?

Reading Time • 2 minsBefore the Barclays Premiership battle even started in 2015, most people had already written off Leicester City. By the middle of September however, things were looking up for the Foxes – though of course, it was too early at that stage to make any predictions.
Read full article
Reading Time | < 1 min 24 Feb 2016

Retired household income remains steady

Reading Time • < 1 min

Retired household income was largely unaffected by the economic downturn, according to the Office for National Statistics (ONS).

However, state pension income activity has changed over the last 16 years with retired households now receiving their retirement income from private pensions and annuities

The ONS found that state pension was the largest source of income for retired households until 1999/2000. The proportion of retirement income coming from cash benefits including the state pension decreased from 65% in 1977 to 47% in 2015. Conversely, the proportion coming from private pensions and annuities increased from 45% to 80% between 1977 and 2014/15.

Between 2007/08 and 2014/15, the median income of retired households rose by £1,500 (7.7%) while in contrast, non-retired households income remained at £900 (3.1%) below its level in 2007/08.

Since the economic downturn in 2007/08, incomes of retired households increased in comparison to non-retired households. 

Median income for retired households rose to £21,000 in 2014/15, £1,500 more than in 2007/08. In contrast, income for non-retired households was £2,600 lower in 2012/13 than in 2007/08.

Since 2012/13, the value of income for non-retired households has risen to £28,300, but remains £900 below the economic downturn levels (£29,200).

Talk to us today to discuss your retirement income.

Read full article
Reading Time | < 1 min 23 Feb 2016

Stamp duty tax changes concern for joint buyers

Reading Time • < 1 min

The 3% higher rate stamp duty land tax (SDLT) on second homes and buy-to-lets coming into effect 1 April 2016, could adversely impact parents buying jointly with their children to help them into the housing market.

The Chartered Institute of Taxation (CIOT) commented ahead of the changes that joint buyers who are not replacing their main property will face the 3% charge on the entire price. 

CIOT focused on the higher SDLT rates on additional residential properties sold for more than £40,000. 

Key points were:

  • the increased complexity of the higher rates will fall on landlords who may not have tax expertise
  • imposing higher rates on joint purchases that have a clear social value could be inequitable
  • the valuation of a lease on property interest worth less than £40,000 may present difficulties. 

CIOT have suggested a carve out from the new rates for joint buyers who are parents buying a home for their children.

Brian Slater, chair of the CIOT’s property taxes sub-committee, said: 

“Life is complex and there are many situations where parents want to support their adult children in buying a home. 

“Taking even a small interest (while owning another property) means that the extra three per cent is payable on the whole of the purchase price. This will substantially increase the SDLT bill, but there are cases - like supported living – where it is absolutely right for parents to have an equity interest.”

Contact us today to find out about the upcoming stamp duty changes.

Read full article
Reading Time | < 1 min 22 Feb 2016

Businesses respond to EU reform deal

Reading Time • < 1 min

Business leaders have commented on the Prime Minister’s reform deal on the future of the UK’s relationship with the European Union (EU).

The referendum on Britain’s membership of the EU takes place on 23 June 2016. Key points from the reform deal include:

  • protecting British economic interests and currency
  • protecting businesses from discrimination outside the EU
  • making Europe more competitive for creating jobs and improving financial security
  • business access to trading and finance through the free-trade single market
  • reducing costs of EU red tape for small businesses.

Reaction to the deal 

Carolyn Fairbairn, director general of the Confederation of British Industry, said:

"These reforms protect the UK’s place and influence inside this important market and a renewed focus on EU competitiveness will help British firms succeed in creating jobs and economic growth at home in the years ahead. Firms will particularly welcome a commitment to reduce unnecessary regulation.”

However British Chambers of Commerce director John Longworth questioned the certainty of the deal:

"There is no certainty at this stage whether the deal’s outcomes are legally enforceable and irreversible. What’s more, the deal falls well short of the business expectations we set out nearly a year ago”

Mike Cherry, policy director for the Federation of Small Businesses, said:

“Small firms seek measures to boost cross-border trade and economic growth - the completion of the single market, simplification of VAT, a smarter approach to regulation and protection of the opt-out under the Working Time Directive.”

Talk to us today to discuss about the changes affecting your business.

Read full article
Reading Time | < 1 min 19 Feb 2016

Personal savings allowance difficult to understand

Reading Time • < 1 min

Taxpayers will have difficulty understanding the tax-free savings allowance which is being introduced from 6 April 2016, according to the Low Incomes Tax Reform Group (LITRG).

Basic rate taxpayers will be able to earn up to £1,000 tax-free from savings income or interest, while higher rate taxpayers can earn up to £500.

The group believes that changes will simplify the tax position for people with modest savings income, but how it works with other rates and allowances is complex.

In particular, the changes may prove difficult for those with fluctuating incomes or individuals who fall within the higher rate band for the first time.

Taxpayers may be unaware of the need to check the level of their savings income and understanding the correct tax rate that applies to them. 

People will also need to keep HMRC up to date with changes to the value of their savings or risk financial charges.

Anthony Thomas, LITRG chairman, said:

“The highly complex operation of the savings allowance must be addressed to improve its clarity and avoid people feeling that they face arbitrary and unjust tax bills. A savings allowance that works similarly to the dividend allowance would potentially be much simpler to understand and use and seriously should be considered.

“People should keep an eye on their level of savings income to ensure they do not stray into a different taxable band. They should also continually check data received from HMRC.”

Contact us today to find out more about the personal savings allowance.

Read full article
1 … 92 93 94 95 96 … 340