May 15th, 2024 | Andrew Hagger | News

12 COMMON HIRE CAR PITFALLS IN 2024

          –  HOW TO AVOID THEM & SAVE MONEY

iCarhireinsurance.com, a leading supplier of car hire excess insurance, has compiled a checklist to save money and avoid car hire pitfalls in 2024:

1. Book Early But Look for Last Minute Deals – Book early to get the hire car you want and at a good price, but make sure to use a company that offers free cancellation. A week before departure it may be worthwhile checking for better deals.

Also, shop around using a price comparison service or car hire broker, e.g., for a week’s summer hire in Crete* Europcar is quoting £312 rental fee, while Avis and Budget are quoting over £500.

2. Don’t Hire from the Main Airport / Railway Station – Compare the cost of hiring from the main transport hubs, i.e., the airport or railway station with the same company a short distance away, as the savings might be worth the taxi fare.

3. Shop Around for Excess Protection Cover. We found you could save around £150 – If a hire car is damaged or stolen, the hirer is responsible for the excess amount, which can be as high as £1,800*.

Buying excess protection cover in advance from a standalone provider, like iCarhireinsurance.com, is normally considerably cheaper and usually offers more comprehensive cover.

For example, a week’s summer hire (27 July to 3 Aug 2024) costs from £33.15** for a week’s protection from iCarhireinsurance.com and includes damage, theft, and tyre and windscreen cover. This is over five times cheaper than buying from the rental companies which, according to a survey of car hire costs*, charge, on average, £154 for excess protection cover and £23 for tyre and windscreen excess protection cover for a week – a total of £177. For those who use hire care more than once a year, an annual policy from iCarhireinsurance can offer even better value from just £41.99**.

4. Avoid Buying Extras From the Rental Desk and You Could Save Around £195* – Otherwise expect to pay, on average, £56 for an extra driver*, £72 for a sat nav and £67 for a child’s car seat costs £67 – a total of £195*.

5. Use a Credit Card for Booking and to cover the excess – Use a credit card to gain Section 75 protection under the Consumer Credit Act. This means the credit card provider will protect purchases over £100 (and less than £30,000) and you could get your money back if there is a problem.

Also, if you buy excess protection insurance in advance from a specialist insurance provider, and not the rental company, a credit card will be required by the rental company to cover the excess amount during the rental as debit cards are not usually accepted. If a claim is made, this is paid initially by the hirer on the credit card and is then reimbursed by the insurance company.

6. Read The Small Print to Avoid Any Unpleasant Surprises – Always read the agreement document thoroughly to make sure you are not agreeing to an upgrade or paying for the rental company’s excess protection cover if you don’t want it.

7. Check the Fuel Policy – Know the fuel policy before you drive away. If you need to return it with a full tank, make sure you do, as the penalties can be expensive. Keep the receipt from the petrol company as evidence.

8. Mileage Restrictions – If you are planning a driving holiday check for mileage restrictions to avoid getting caught out.

9. Take Photographic Evidence of Existing Damage – One in three (34%) hire car drivers*** found damage on a hire car which was not highlighted on the checkout sheet. To avoid unfair damage charges, check the vehicle thoroughly at pick-up and return and take dated photos or video proof.

iCarhireinsurance.com’s free travel app for travellers, called ‘iCarhire’, helps you to take and store photographs which can be easily accessed and used as evidence in the event of a dispute.

10. How to Complain – Go to the rental company within fourteen days with a complaint. If a satisfactory outcome is not reached, complaints can be directed to the BVRLA in the UK whose members, including Hertz, Enterprise, Avis, Budget, Europcar and Sixt, are expected to adhere to its mandatory Codes of Conduct. An alternative is to contact the European Car Rental Conciliation Service (ECRCS), which offers a free service to help with unresolved complaints, but the rental must be with a company that has signed up, i.e., Europcar, Enterprise, AVIS, Budget, Maggiore, Hertz, Thrifty, Dollar, Alamo, National, Firefly and Sixt.

11. Running Late – Always stay in touch with the car hire company and ensure they are aware of your travel details, as car hire bookings can be cancelled if travellers are late.

12. Clean the Car – Anecdotally there are increasing reports of car hirers being fined for returning dirty cars. Try to keep the car in as clean a state as possible and take away rubbish and excess dirt.

Ben Wooltorton, from iCarhireinsurance.com, said: “Cost-conscious travellers should approach hiring a car exactly as they do other aspects of their holiday planning to ensure they get the best deal. To make your money go further, shop around for the best prices and don’t waste money on extras at the rental desk including items like sat navs and child car seats, that could have been brought from home, or bought in advance. Also, consider buying excess protection cover before your trip from a specialist insurance provider, like iCarhireinsurance.com.”

May 7th, 2024 | Andrew Hagger | News

New research has calculated that drivers in England and Wales spend at least £84.4 million on speeding fines every year. This highlights that the nation’s motorists are losing a fortune due to reckless driving, which could be avoided by being more cautious on the roads.[1]

This estimate is based on the minimum speeding penalty of £100, and Home Office figures on the number of fines paid in 2022. However, as more severe offences can result in bigger fines, the true figure that was paid is likely even larger than this.

Based on the study, produced by Go.Compare Car Insurance, £10.2 million of the country’s annual speeding bill is made up by drivers in Greater London. The Metropolitan Police received payment for over 100,000 fines in 2022, enough to pay for more than 300 police cars.[2]

Other police force areas estimated to have paid the most in fines include Avon and Somerset, and West Yorkshire. Avon and Somerset Police will have received a minimum of £4.9 million, while West Yorkshire Police took payment for 44,600 fines across the year, equivalent to at least £4.46 million.

West Yorkshire and Greater London also ranked among the areas with the highest volume of speed cameras in the country in 2022, according to a separate study by GoShorty.[3]

The comparison site warned drivers that receiving a fine can also impact their car insurance premiums. Motorists have to tell their provider when they receive a penalty and could be faced with a £121 increase in their price as a result.[4]

Those with no offences on their policy pay a median of £390 for comprehensive cover, compared to £511 for those with a speeding violation. This increases by another £153 for those with multiple offences on their policy, resulting in a median of £664.

Go.Compare says that over 97,000 policies bought through their site last year included a speeding offence – a 1.71% increase on the year prior. However, this is still a 4% decline from 2020, when the number was over 101,000. Drivers in London (4,047), Bristol (1,637) and Birmingham (1,369) admitted to the most speeding penalties on their policies.[5]

Tom Banks, a car insurance expert at Go.Compare, said: “Speeding is one of the biggest safety risks on the road, so it’s appropriate that the penalties surrounding it are so strict. Getting caught can have a serious impact on your wallet, as you’ll suffer a fine and the knock-on effect of higher insurance prices.

“With this in mind, it’s shocking to see that so many drivers are still taking the risk, with a collective fortune being lost as a result. Millions are being chucked down the drain due to exceeding speed limits, so it’s clear that many motorists need to exercise more caution when travelling.

“If you ever see other motorists driving dangerously, you should report them to the police as soon as it’s safe to do so by pulling over and dialling 999. It’s also important to avoid straying over the limit yourself so that you don’t put the safety of yourself and others at risk.”

More figures on the UK’s speeding hotspots can be found on Go.Compare’s website.

April 30th, 2024 | Andrew Hagger | News

ecent research by Hodge reveals the dream of getting married can come with a hefty price tag, reaching more than £20,000.

Hodge dived into the averages of how much each part of a wedding costs, revealing that food and the honeymoon were the two most expensive parts.

Average cost of getting married

When it comes to wedding attire, couples spare no expense to look their best on their special day. According to Hodge’s research, the average cost of wedding outfits in the UK is substantial.

For instance, the engagement ring alone sets couples back around £1,948 on average, surpassing even the cost of the bride’s dress, which averages £1,500. But, the wedding bands cost substantially less, on average couples only spend £1,000 for both rings.

Meanwhile, grooms tend to spend less on their attire, with an average expenditure of £900 per suit. However, when factoring in the costs of bridesmaids’ dresses at approximately £80 each and groomsmen’s suits at around £150, outfit expenses can quickly accumulate, totalling up to £3,500 based on a party of five bridesmaids and five groomsmen. ²

Some like to make a grand entrance on their big day, arriving in classic cars, limousines, or even romantic horse-drawn carriages. However, these luxuries come with a price tag, with the average cost of wedding transportation in the UK amounting to around £700.

Depending on the number of guests you have this can be the most expensive part of the wedding, for example, if you were to feed 150 people, this could cost you up to £6,000.

The Maldives, Amalfi Coast, Thailand, Greece and Bali are some of the most popular honeymoon destinations. However, it turns out that couples spent on average £4,329 on their honeymoon³, which is more than £3,500, on average, more than a week away for a couple in summer.⁴

Wedding Planner, Emma Segal at The Bijou Studio shares tips on how to have the wedding of dreams on a smaller budget.

1. Don’t succumb to the pressure of thinking that you have to have everything that a wedding is ‘supposed’ to have in order to make it special. It’s your wedding so do it YOUR way. Decide on your priorities, likes and dislikes and stick to them. Doing a smaller number of things well, rather than trying to stretch your budget to do ‘everything’ will be more impactful.
2. Think seasonal, and where possible local, when it comes to flowers and food (and as many of your suppliers as possible). For example, peonies might be your favourite flower but importing them from the other side of the world for your Autumn wedding is not going to keep you on budget! Not only are seasonal choices more sustainable, they will be more cost-effective, too.
3. Plan your wedding so items can be repurposed throughout the day. For example, if you want a large floral backdrop for your ceremony, work with your florist to design it in such a way that it becomes something else. Maybe it can be tweaked to be a fun photo booth or DJ backdrop, or maybe the flowers are then used to decorate the dining tables.
4. If you genuinely enjoy being crafty and creative, then there are so many things you could make yourself to add a personal touch to your wedding – stationery such as menus and name places is always a good one. I would, however, strongly advise against doing anything on the day of the wedding itself – no amount of money-saving is worth stressing yourself out on the day or day before. I’ve seen brides that have decided to make their own cakes or do their own flowers and it has never ended well…!
5. Be selective with your guestlist. When you work out the per-head cost of your guests, you realise how expensive it really is! Do you honestly want to spend that amount inviting your old neighbours or colleagues who you haven’t seen for a few years? Possibly not…

If you have a couple of years to plan your nuptials, you might want to consider opening an ISA where you can earn interest on your savings, with the average interest rate sitting at 4.52%.

April 22nd, 2024 | Andrew Hagger | News

Understanding stamp duty, also known as Stamp Duty Land Tax (SDLT), is crucial when budgeting for your house purchase.

This tax applies to most property purchases in England and Northern Ireland (different rules apply in Scotland and Wales), and it can be a significant cost on top of the purchase price. It applies to purchase of all kinds of properties including new build homes and older structures.

Some exceptions apply depending on your purchasing status, however, so understanding your obligations is key.

What is stamp duty?

Stamp duty is a tax levied by the UK government on property purchases above a certain threshold. It’s a tiered system, meaning you pay a different rate of tax depending on how much the property costs. The more expensive the property, the higher the overall amount of stamp duty you’ll pay.

How is it calculated?

The current stamp duty rates can be found on the HMRC website. These rates are for residential properties in England and Northern Ireland. There are different rates for additional properties, buy-to-let investments, and commercial properties.

For residential properties, there are currently no stamp duty charges for the first £250,000 of the purchase price. Above this threshold, tax is applied in slices. For example, on a property costing £300,000, you would pay 0% tax on the first £250,000 and 5% tax on the remaining £50,000 (£2,500).

There are also some additional considerations if you’re already a homeowner and buying an additional property (such as a buy-to-let investment). You’ll pay a higher rate of stamp duty from the very first pound.

What are the exceptions?

There are a few exceptions to stamp duty:

• Properties under £250,000: As mentioned earlier, there’s currently no stamp duty charge on the first £250,000 of a residential property purchase.
• First-time buyer relief: First-time buyers won’t pay any stamp duty on the first £425,000 of the purchase price.
• Shared ownership: You may not have to pay stamp duty on shared ownership purchases, depending on the share you’re buying.
• Inheriting property: If you inherit a property, you generally won’t pay stamp duty, although there may be inheritance tax implications.

It’s always best to consult with a solicitor to determine if any exemptions apply to your specific situation.

When do I pay stamp duty?

You typically have 14 days after the completion of your property purchase to file a stamp duty land tax return and pay any tax due. Your solicitor or conveyancer will usually handle this process for you, calculating the amount owed and submitting the return to HMRC on your behalf.

Missing the 14-day deadline could result in penalties and interest charges.

The bottom line

Understanding stamp duty is an essential part of planning your house purchase finances. By familiarising yourself with the rates, exemptions, and deadlines, you can ensure a smooth and financially sound buying experience. You’ll also benefit from additional clarity on any equity or ongoing budget you will have to use on renovating your property.

April 22nd, 2024 | Andrew Hagger | News

Looking to increase profitability for your bar or pub?

Amid the cost-of-living crisis, predicting demand can feel almost impossible. Whether you run a gourmet gastropub or an independent tapas bar, it’s worth knowing about some of the most effective ways to guarantee a consistent revenue stream. We’ve outlined five of our top picks below.

Spot cost-saving opportunities

Reduced expenses can lead to increased revenue, so it’s worth being prudent.

Basic energy-efficiency improvements could make a surprising difference to overall running costs. Try to choose energy-saving LED bulbs for the accent lighting used in your pub; not only is LED lighting cheaper to buy and run but it lasts much longer than halogen options.

Automatic lighting is recommended for the customer toilets, which need not be illuminated when not in use. As for your products, try to audit regularly and remove any stock that doesn’t sell as often as you’d like.

Set up promotions

From one-off discounts to special offers on certain days, incentivising your customers could pay dividends. From happy hour to 2-for-1 burger Thursdays, you should carefully construe offers in line with customer preferences and local demand.

Increasingly, top pubs and restaurants are using dynamic pricing to capitalise on peak periods and maximise revenues. If you plan to put higher prices in place on weekends and Fridays, it could be worth strategically planning your promotions so that your team still benefits from the price hikes.

Advertise!

To get people into your pub, they need to know it’s there!

You don’t have to spend much money to advertise effectively. Leverage the power of social media to raise awareness of your brand and get people into your pub. Whether your focus is on customer retention or welcoming new faces, make sure to put time and effort into your online marketing strategies.

On channels like Facebook and Instagram for Business, you can promote your pub and get more people through the doors. From running competitions to providing menu updates – with irresistible photographic evidence – you’ll get your work into the public eye.

Revise your menu

If you serve food, it could be time to revisit your menu and refresh some of your offerings in line with current demand. Small plates are trendy and could also make your menu more accessible for those struggling with their budget amid the cost-of-living crisis.

Customers seeking a gastropub experience often favour smaller menus with select dishes. Pay close attention to the quality and origins of the food you serve.

Using locally sourced ingredients bolsters your relationship with suppliers, opening further opportunities for local and regional trade. If you do find yourself engaging with new suppliers, you might find it a good time to review your pub insurance needs so that you’re ready for unforeseen circumstances.

Boost your reviews

Finally, in the digital age, it’s crucial to remember that reviews are integral to your success.

Ensure that your business has an easily recognisable profile on popular review platforms like Tripadvisor and Google Maps. Its location should also be geographically accurate to make sure that your customers can find you without hassle!

At the end of each customer meal, politely asking for online feedback could increase your chances of building a positive review portfolio. For those who check reviews, your rating could be the most influential factor in the final decision between your business and that of a competitor.

April 19th, 2024 | Andrew Hagger | News

What is the gender pay gap?

A regular feature in the news, the gender pay gap is the average difference in wages for working men and women. In most scenarios, women are found to be paid less per hour than men.

Since 2017, companies with more than 250 employees have been legally obligated to report their gender pay gap data and publish this on their websites in areas that are easily accessible.

Organisations sometimes factor in considerations such as education, experience and job title to calculate a figure known as the ‘adjusted gender pay gap’. Although this usually reduces the percentage difference, more often than not it reveals ingrained gender bias and suggests that women are paid less than men in the same roles.

What causes the gender pay gap?

Under the 2010 Equality Act, employers are legally obligated to pay men and women equally for work of the same value. So, why is there a difference in average remuneration based on sex?

• Child-related career breaks

Women are far more likely to have child-related career breaks which slows their professional progression.

• More unpaid work

On average, women do more unpaid work such as housework and childcare than men. This limits how much time they can commit to a job and, as a result, often involves them working part-time.

• Fewer female managers

Across the board, there are fewer female managers. To add insult to injury,  women in senior positions tend to earn significantly less than their male counterparts.

• Overrepresentation in low-paying sectors

Although the number of women in high-paying sectors such as science and technology is increasing, there is a disproportionate number of women in low-paying sectors like care and education.

The latest statistics

According to the Office for National Statistics (ONS), the gender pay gap in the UK was 7.7% for full-time employees in 2023. Among all employees (including part-time workers), the percentage difference was almost double at 14.3%.

The gender pay gap among full-time employees is higher everywhere in England from Liverpool to London when compared to Wales, Scotland and Northern Ireland.

When compared to previous data, the latest figures show that the gap is slowly closing. However, there are still clear cases of hiring bias, unfair structuring and workarounds that allow businesses to forgo fair pay for women in senior positions.

How to reduce your gender pay gap

Closing the gender pay gap in your business might take time, but there are several measures you can take to minimise it.

Begin by hiring help such as a professional bookkeeper for business advice relating to your salaries and a solicitor to check that you’re compliant with the 2010 Equality Act. This will ensure you’re adhering to basic standards and help you to identify areas where there may be misconduct.

You can also look into restructuring your business to include more women in senior positions. Giving the option of extended paternity leave is also a great way to ensure that childcare responsibilities can be split evenly between women and men committed to maintaining full-time careers.

April 16th, 2024 | Andrew Hagger | News

Santander has launched a prize draw for new and existing customers investing through the Santander Investment Hub, with customers who invest at least £1,000 able to win back their investment up to a maximum of £20,000. Three lucky winners will be selected monthly across April, May and June 2024.

To qualify for entry into the prize draw, new and existing Santander Investment Hub customers¹ must invest at least £1,000, in April, May or June 2024, as a lump sum or by regular Direct Debit into a new or existing Santander Investment Hub account. The investment can be into our Stocks and Shares ISA or Investment Account. Eligible customers will be automatically entered into the prize draw and the monthly winner will be randomly selected and notified by phone or email. ² 

Alexia Kilby, Head of Wealth Propositions at Santander UK, commented: “This latest exciting prize draw is yet another reason to seize the moment and make the most of this financial year by investing in our Stocks and Shares ISA or opening one with Santander.  Whether customers are new to investing or already have a healthy investment pot, our intuitive Investment Hub makes investing simple and straightforward.”

Customers can choose to invest online through the Investment Hub by making their own investment decisions; using Santander’s Digital Investment Adviser; or by arranging an appointment with one of the bank’s advisers (eligibility criteria apply). Customers can pick from over 850 investments funds from across the market, including a range of responsible and sustainable funds.

In addition, Santander offers a Savings and Investments Calculator which enables potential investors to see comparative predicted returns on their money for savings or investment options and the relative risks of both.

April 15th, 2024 | Andrew Hagger | News

Struggling to push through to payday? If so, you’re not alone. Thousands of workers across the UK are searching for additional streams of income and taking on second jobs. Amid the cost-of-living crisis, it’s worth holding onto your cash wherever possible.

Whether you’re working towards a savings goal, or you just need more cash, it’s worth learning some of the best tips and tricks to make your money go further.

5 ways to make your monthly pay last longer

1. Keep track of your spending

Firstly, it’s important to keep an eye on your outgoings and incomings too.

Using an online banking app like Monzo or Starling could give you real-time updates, spending reports and even notifications when you use your debit card either in person or online. If there’s anything that simplifies the process for you, take advantage of it!

Old-fashioned methods are just as effective. Keeping hold of your receipts or jotting down your spending in a notepad or calendar could give you a very useful visual understanding of where your money goes each month. From there, you can spot opportunities to save.

2. Save, if you can

Saving every month is a luxury in the cost-of-living crisis, but there are ways to make the process easier. Whether you open an easy-access savings account or opt for fixed rate bonds instead, simply opening a dedicated account could motivate you to kickstart the savings habit.

If you’ve got some wiggle room within your budget, it’s worth trying to save. It doesn’t matter how small you start out: over time, every effort you make will soon add up. You might be surprised by how much you could save in just a few months.

3. Think about investing

If you already have some money saved, it could be worth investing some to accumulate greater capital over time. Investing for the first time might feel daunting, especially if you’re not familiar with typical trading websites, strategies, and technical terms.

By using an accessible online trading platform, you could start stock trading at your own pace. There’s no set amount of money needed to start trading, since costs vary depending on the total value of investments required. These are decided by the brokerages, but could include stocks, bonds, cash, or partnership interests.

4. Unsubscribe

Next, if you’ve had that gym membership that you don’t use, it’s time to cancel it and make better use of your money. Likewise, if you’ve got a streaming subscription that you don’t use, it might be time to let go.

There’s no shame in purging your neglected subscriptions – and it’s certain that you could be better off after doing so. Try to limit unnecessary financial commitments or rolling monthly commitments, especially if you’re pressured by someone else.

5. Pay off your debt

Lastly, it’s never worth ignoring your debt when you’re trying to get through the month. Outstanding payments will only add more pressure to your budget and a weight on your shoulders too. Without that burden, you can focus on your current spending and future goals.

Talk to your bank or get in touch with a financial advisor if you’re struggling with debt. The sooner you can get things back under control, the sooner you can start making your monthly pay last longer.

April 8th, 2024 | Andrew Hagger | News

In 2023, millions of UK adults have been the target of fraudulent activity, with scams costing Brits a whopping £580m within the first six months of the year.

With an increase in fraudulent conduct across the country, it’s important for consumers to be vigilant at all times to avoid losing money.

This is specifically true when it comes to taking out car insurance. As the value of motors continues to rise, the higher price tags are fuelling fraudsters to trick people with alluring, budget-friendly scams.

Johnathan Such, head of sales at vehicle finance company First Response Finance, said: “From predatory lending schemes to identity theft, fraudsters are always coming up with new ways and tactics to gain money illicitly.

“No matter how financially savvy you are, anyone can fall victim to scammers, especially with the current cost of living crisis causing even the most sensible of judgements to slip.

“But with a few tips in mind, such as doing your research and verifying the legitimacy of car finance providers, you can ensure you’re always as wary and alert as can be.”

So, what are the red flags to watch out for when securing vehicle financing, and how can you prevent unwanted surprises?

Unrealistic offers

Unrealistic offers, including very low interest rates and lenient approval terms, should always raise alarm bells. Does a loan offer sound too good to be true? Then, unfortunately, it probably is.

Fraudsters might tempt you with an appealing offer that – at first glance – sounds way more affordable or convenient than those provided by reputable lenders. This is an easy tactic to lure consumers in, as you’ll be presented with a pocket-friendly solution that hides unsustainable terms and secret fees.

Top tip: “One of the best ways to avoid falling into the trap of unrealistic offers is to do plenty of research beforehand and compare your options,” Such explained. “In fact, having a broader idea of what reputable lenders in the car finance market are offering will allow you to identify plans that don’t look too legitimate.

“Also, if you are considering a very advantageous offer, getting the lender to put everything in writing is crucial. If the lender has honest intentions, they will have no trouble outlining the plan’s specifics on paper, eliminating the risk of fraudulent surprises in the long run.

“If they hesitate or are very vague in their wording, don’t commit to anything – it’s best to simply walk away.”

Upfront fees

Generally speaking, reliable lenders don’t ask for upfront fees when you take out car finance. If they do, they might have a policy that grants you a full refund should you decide to cancel the arrangement within a specific timeframe.

Scammers might ask for advance fees to cover loan and insurance costs without even bothering with credit checks or loan approval schemes.

In this scenario, you can expect to lose the money and never hear back from the illicit provider. And if they ask for your credit card details, it could even lead to more serious problems.

Top tip: If you’re asked to pay a sum of money to access your car finance loan, always read the small print before sending over any funds.

Should a reliable lender require an upfront fee to ‘unlock’ your loan, they’ll be very transparent about the charges, providing you with a detailed breakdown explaining their purpose.

If you still don’t feel comfortable making the payment or can’t cover the expenses yet, it’s completely fine. Just browse for other lenders that better suit your needs.

Rushing you into making a decision

Another common fraudulent tactic is to pressurise customers into making a rushed, impulsive decision.

For example, scammers might emphasise that they’re providing you with a time-sensitive, exclusive offer that needs to be accepted as soon as possible, forcing you to commit to their fraudulent proposal.

Reputable lenders, instead, will take a slower approach. They’ll provide you with plenty of time to review the agreement and encourage you to ask any questions you may have. They’ll also carry out some checks before finalising the deal, so be cautious when a lender tries to rush you into making a decision.

Top tip: “Buying a car and taking out a loan to cover the expenses is a significant commitment,” Such said. “Legitimate lenders understand that and would never put pressure on their customers to commit to a deal until they are happy and comfortable.

“So, if you feel like you’re being pressurised into accepting an offer, try to keep a cool head and take a step back. If you’ve not been given the time to review all the options and paperwork, then there might be something that’s not quite right.”

Unlicensed lender

Taking out a car loan from an unlicensed lender can be extremely risky. In fact, as opposed to licensed loan providers, they aren’t subject to specific regulations that protect the customer’s interests, increasing the risk of fraud.

Unlicensed lenders are freer to carry out their illicit operations, whether that’s disappearing with upfront fees or stealing your personal information, which can lead to identity theft. So, what can you do to prevent this?

Top tip: To check if a lender is reliable, visit the Financial Conduct Authority’s (FCA) website. Legitimate lenders are registered with the FCA and can be searched for here.

It’s also wise to do your own research and check out customer reviews online so that you have all the information you need to choose the right lender.

April 2nd, 2024 | Andrew Hagger | News

As we head into the new tax year, and with lots of new changes coming from 6^th April, it’s important to stay clued up on how to make your money work as hard as possible.

From making sure you’re maximising available allowances to having your financial plans in order, David Murray, Financial Planning Expert at abrdn, shares his top tips on how to manage your money and make adjustments for the end of the tax year.

1. Get to know your spending and saving habits

First things first, be clear about what you’re looking for financially in the new tax year. Setting financial goals might seem a bit daunting but having a rough idea of what you’re saving for will mean it is more likely to happen. This doesn’t have to be your whole life plan written out – just some goals in mind to work towards and aim for.

A good budget is the cornerstone of any strong financial practice – understanding exactly where your money is going is essential when it comes to successful saving and can also help map out any debt repayments you may have.

There are many free money management apps you can download onto your phone that could be a convenient and powerful way to track your saving and spending habits and think about money in the right way. Alternatively, some banks provide useful online tools to keep tabs on your spending, so it’s worth seeing what your bank offers.

2. Make the most of your ISA allowances – before the new tax year

ISAs are one of the most tax-efficient ways you can save and invest as there’s no income tax, personal tax on dividends or capital gains tax to pay on any investment growth, interest you earn or money you take from it.

Currently you can save up to £20,000 in ISA products completely tax free in any tax year – meaning they are a very tax-efficient option for your savings and investments. While savers have been able to open and contribute to multiple ISAs in one tax year, they’ve never been able to do so through more than one of the same type of ISA.

But from 6^th April 2024, the new tax year, ISAs will become a bit more flexible. This includes the ability to be able to open and contribute to more than one of the same type of ISA. So, you could open and contribute to two stocks and shares ISA offered by different providers in the same tax year, for example. This wasn’t allowed before.

The annual allowance – which works on a ‘use it or lose it’ basis – will remain unchanged at £20,000 across all of the ISA products. So, if you’ve not invested more than £20,000 into an ISA in the last 12 months, or you’ve not opened or used one at all, you’re at risk of missing out on the tax-free benefits they bring. If you’re able to put some money away into savings before 6^th April this year, it’s a good idea to save into ISAs. After 6^th April, the new tax year starts, and the £20,000 tax-free limit begins again.

Whether it be a Cash ISA for an emergency fund, a Lifetime ISA which could help you save for your first home (and save for retirement), or a Stocks & Shares ISA for slightly longer-term goals, there are various options to choose from.

Also, if you want to save for your children or grandchildren, they get their own Junior ISA allowance of £9,000 in addition to the £20,000 allowance you’ll have. So a family of four could shelter up to £58,000 of their savings and investments each year from the taxman.

And keep an eye out for more announcements on the brand new UK ISA. While we’re yet to find out how this will work in practice, this will offer an extra £5,000 tax-free allowance each year alongside the usual tax advantages of an ISA to give savers a further boost.

3. Don’t forget about your pension

Your pension is a tax-efficient way to save for your future thanks to the tax relief you receive on any of the contributions you make to it. It’s also a good way to reduce your taxable income, and you may even be able to benefit from matching contributions from your employer.

You can normally contribute as much as you earn each tax year into your pension, up to the annual allowance of £60,000, and benefit from tax relief on your contributions.

The way tax relief is applied depends on the type of pension scheme you’re in and how you make payments. In a lot of workplace schemes, your employer deducts your pension contributions from your salary before tax is collected – known as salary sacrifice.

So there’s no need for you to claim tax relief yourself. But in other schemes you may need to claim the tax relief from HM Revenue and Customs. If you’re not sure how your pension plan works, speak to your employer, your provider, or a financial planner.

As of 6th April 2024, there will no longer be a maximum amount of pension savings that you can build up over your lifetime. The limit, known as the Lifetime Allowance (LTA), is currently £1,073,100. Any excess was previously taxed at a maximum of 55% but from the new tax year this will no longer be the case.

4. Get to grips with new changes to the CGT allowance

Don’t forget about your capital gains tax (CGT) allowance and how this will change. CGT is paid on any gains you make when you sell an asset – for example, if you make a profit when you sell a second property or investments that aren’t held in an ISA or pension.

However, you have an annual CGT ‘exempt allowance’ within which no tax is due. The government has announced that the CGT annual exempt amount will reduce from £6,000 to £3,000 from 6^th April 2024.

If you’re affected by the change at the turn of the tax year, you might consider holding any investments within a tax-efficient option, like a stocks and shares ISA or your pension, so that the value can grow without attracting CGT. Tax planning can be complex and in a world of shrinking allowances, knowing all the allowances and reliefs you could make use of and the best way to do that, can be easier with specialist advice.

Remember too that how much income tax you pay in each tax year depends on how much of your income is above your Personal Allowance and how much of your income falls within each tax band.

5. Stay ahead of the game!

It’s very easy to fall into the trap of not prioritising taking control of your finances and tax planning.

However, it’s worth considering how you, and your finances, might benefit from being an early bird in the new tax year. For example, you may achieve better outcomes if you feed money into a Stocks & Shares ISA gradually over the course of the year, than if you fill it fully just before tax year end.

And if you’re at all unsure about what you should be doing, get support from a financial adviser.