News

Financial Focus now available to download

19 February 2009

The first part of the year has seen inclement weather following on inclement economic news. Along with the snow came the lowest ever Bank of England base rate, announced after the newsletter had gone to print. While heads of governments gathered to discuss how to manage the financial crisis, individuals have been struggling with their own concerns. The current climate makes considered financial advice even more crucial as you think about future changes to income tax, your pension and how to maximise savings or investment income. We’ve highlighted some of the important areas to consider.

Make a move on interest rates

The lowest interest rates on record means that those looking for income from deposits have seen significant cuts in their returns. If your priority is income, there are other ways to obtain yields beyond the current level.

Think ahead on income tax planning

Among the announcements in the Chancellor’s Pre-Budget Report in November were proposed changes to income tax and national insurance contributions over the next three years. You might want to consider their effects in your year end tax planning.

Another round on pensions

Another Pensions Act has gone through parliament that marks the last phase of the reforms instigated with the Turner Report in 2005. The most significant element of the Act is the advent of personal accounts, due to come into force from 2012, which will affect all employers and employees.

Income shifting legislation delayed

Proposed legislation by the government to crack down on ‘income shifting’ between couples who are shareholder-directors in their companies has been postponed. So you should be able to take dividends for the next tax year at least and save tax.

Back to work with new allowance

The new Employment and Support Allowance (ESA) replaced Incapacity Benefit in October and focuses on getting individuals back to work. If you don’t have existing income protection, you might want to review your situation.

And of course there are lots more topical articles that should be of interest. We hope you enjoy the newsletter.