March 25th, 2021 | Andrew Hagger | News

With the roadmap to recovery, the vaccine rollout and the economy slowly re-opening, there is a newfound sense of optimism in the UK after what has been a torrid 12 months. It is thought that SMEs will be critical to the economic recovery over the coming months and years, so what is the best way to support these businesses?

The last 12 months

First, it is worth reflecting on the year gone by which has been devastating for UK businesses and in more ways than one. In 2020, the UK economy shrank by a record 19.8% in the second quarter and many SMEs struggled to survive even with Government support. Despite this, SMEs returned £18 billion to the UK economy over the course of 2020 through community initiatives like cash donations and volunteering. This is impressive, especially when you consider that 22% of SMEs state that they face significant risk of closure in 2020 which means that now the time they need extra support.

Supporting SMEs

Obviously, one of the best ways to help out small businesses is to choose their services over the larger corporations. Many state that SMEs will be the ones driving the economic recovery and there are new opportunities for success in a post-pandemic marketplace, which means that there are also ways to benefit from this in terms of investing.

Investing

Investing in SMEs in 2021 could be an excellent way to support local businesses, help with the economic recovery and make money. There will be many sectors which could flourish over the next year and beyond, including ecommerce, health and fitness and food delivery/mobile food all of which could be worth looking into for anyone looking to invest.

The Enterprise Investment Scheme

For those that like the idea of investing in SMEs, one of the most attractive ways to do this is via the Enterprise Investment Scheme (EIS). The EIS was established by the government in 1994 in a bid to encourage investors to invest in UK startups with the benefit of being able to claim 30% income tax relief on EIS investments up to £1 million.

If your shares are disposed at of a loss, you can get up to 45% loss relief against income or capital gains tax too. There is the potential for substantial returns as you are investing in SMEs at the earliest stage and, as outlined above, 2021 could be a bumper year for small to medium businesses in the UK.

While the effects of the pandemic will be felt for some time in the UK economy, there are now signs of optimism and SMEs could play a major role in the recovery. In addition to supporting small and medium-sized businesses, you could also look to invest which would allow you to support these small businesses and the economy with the potential for substantial returns.

March 24th, 2021 | Andrew Hagger | News

As a motorist, it is important that you appreciate the potential hazards and costs you can face when owning a car  and how to protect against them.

Insurance the obvious and best way to protect your vehicle although there are various types of insurance available that every motorist should familiarise themselves with.

The right product could not only save you money, but also provide peace of mind knowing that you have suitable protection in place.

Car Insurance

The first and most obvious type of insurance is car insurance, which is a legal requirement. There are three different levels of cover available:

• Third-party: Covers damage to others but not yourself
• Third-party, fire and theft: Same as above but with cover for fire damage and theft of the covered vehicle
• Comprehensive: Covers you and other drivers for injury, damage, fire and theft whether or not the accident was your fault

Breakdown Cover

Breakdown cover is an extra to a standard car insurance policy and one which should always be considered.

This type of insurance will cover the costs of the car being towed away and taken to be repaired if you breakdown and as such can save you a lot of money.

Extended Warranty

A new car will come with a manufacturer’s warranty that will cover the costs of any faults or mechanical breakdowns that occur in the first couple of years. When this original cover expires you might want to consider an extended warranty. Vehicles can break down at any time and the cost of repairs can be high, so it may be better to be safe than sorry and extend the original warranty.

GAP Insurance

This is a type of insurance that many motorists are unaware of, but if your vehicle were to be written off in an accident or stolen and never recovered, your comprehensive insurance policy would only pay the current market value of the vehicle.

This could leave you out of pocket by thousands of pounds due to depreciation, but GAP insurance will cover the shortfall between the insurance valuation and the amount originally paid/outstanding on the finance agreement.

It is an optional policy but one which every motorist should consider, as it could save you a serious amount of money, especially for those with brand new cars where depreciation is at its highest in the first few years.

Tyre Insurance

Car tyres can be expensive, and you might find that this is a cost that you face if you find your tyre tread depth approaching the legal minimum of 1.6mm (less than this can result in a fine of up to £2,500).

Tyre insurance covers against the cost of repairs and replacements, which could end up saving you a large amount. Alloy insurance is often bundled in with tyre insurance and offers the same protection for the actual wheels.

Having sufficient protection in place is important because it could save you from unexpected expense, plus it is also gives you peace of mind knowing that you are covered in case anything unexpected happens to your pride and joy.

March 24th, 2021 | Andrew Hagger | News

Nearly one in five (19%) employees aged between 65-74 have delayed their retirement as a result of the pandemic according to new research from Close Brothers. The figure among those aged 55-64 is also hugely worrying with 14% having had to make the same decision.

The report, ‘Expecting the unexpected: a spotlight on preparing for a crisis’, highlights the extent to which the past 12 months have changed the financial plans of employees across the UK. These figures correlate closely with further findings from the report around the number of employees that have an accessible savings pot for emergencies.  A fifth of those employees approaching retirement age (over 65s) admit to not having an accessible savings fund for such an occasion.

Despite this, just 5% of those employees aged 65-74 recognise that they were financially unprepared for the Coronavirus crisis and subsequent lockdown that followed in March 2020. This figure more than triples to 16% among the 55-64 age group.

Looking at all employees, one in five workers in large organisations say explicitly they were financially unprepared for the COVID crisis. Younger workers were also found to be much less prepared than their older co-workers – 24% of those aged 18-34 admitted to being unprepared, the figure was half that (13%) among those aged 55+.

Many employees have been reflecting on what changes can be made to improve their level of financial preparedness and appear to be determined to build back bolder and more resilient. Nearly two in five (38%) in the 65-74 bracket either already have or plan to make changes to their financial preparedness, and 43% of those aged 55-64. This is, however, notably lower than the average which sees three in ten (30%) workers in large organisations having already made some changes to improve their financial preparedness, with a further quarter (26%) are planning on making changes to improve theirs.  Younger workers are much more likely to have made a change or plan to make a change to their financial preparedness, our research finding it to be the case with nearly three quarters of 18-34 year olds.

This is already translating into greater confidence. A third of UK workers are more confident about weathering a fresh financial storm compared to before the pandemic (30%), rising to 33% among 65-74 year old s and 36% among those aged 18-34.

But what is very clear is that, as employers start to come to grips with the shape of their workforce, with the UK tentatively emerging from the third lockdown, there is likely to be a lot of rebuilding to get back to pre-coronavirus levels as well as adjusting to whatever the new world looks like.

Jeanette Makings, Head of Financial Education at Close Brothers comments: “The COVID-19 pandemic risks being a ‘sliding doors’ moment for UK employees and their employers. It has impacted financial health in a multitude of ways, with some suffering hardship, some having to postpone long held plans and others benefitting and adding to savings.

“At the forefront of those best able to help employees improve their financial health are their employers; they are trusted, they can reach large numbers of people via the workplace, they already offer rewards and benefits that can be used to improve financial wellbeing and both employee and  business performance will benefit from improved financial health.

“Understanding employees financial health as a whole, and knowing those that need most help, has to be the starting point to ensure that an inclusive, effective, and targeted financial wellbeing programme is implemented. A single channel, ‘one size fits all’ financial wellbeing approach is likely to fail many.”

March 17th, 2021 | Andrew Hagger | News

New research from Direct Line Travel Insurance reveals that 13.7 million people believe they have to pay for a Global Health Insurance Card (GHIC) – the new replacement for the European Health Insurance Card (EHIC) – despite it being free. With unofficial websites charging around £29 per application, this could mean Brits risk losing up to £451 million collectively if they are misled into paying when applying.

Around a third of Brits (17.5 million people) have an EHIC that is still in date, while a fifth (19 per cent) are not sure when their EHIC expires. With so many unofficial websites out there, many of these people could be at risk of being misled due to a lack of understanding that a GHIC is free.

Additional research by the insurer found that it takes less than 10 seconds to find an unofficial website when searching for ‘GHIC application’ on a search engine² – with five links on the first results page directing you to websites that charge to manage the application process. One website had even paid the search engine’s advertising rates to come at the top of the search.

The most common ‘benefit’ these unofficial websites are using to encourage unwitting people to use their ‘service’ is that they will either fast-track or manage the application process for ease. However, the time it takes for the application is sometimes longer than the stated time for the real NHS website. It is important to know that If you are planning to travel, when the Government restrictions are lifted and travel is allowed, GHIC applications are completely free and can be applied for using the NHS website.

These misleading websites have been around since the inception of the EHIC card, which was also free of charge. In fact, more than 8.5 million people said they paid for their EHIC when they last applied – in monetary terms, this represents an estimated unnecessary £245 million.  Interestingly, it would seem that men were more likely to believe they needed to pay for their EHIC, with 5.5 million men (32 per cent) vs 2.9 million women (17 per cent) paying for the service.

March 10th, 2021 | Andrew Hagger | News

People who quit smoking could save up to £16,000 on their insurance premiums, Royal London has found.

Non-smokers could be eligible for lower rate premiums if they have not smoked tobacco or used any nicotine replacement products including e-cigarettes for 12 months.

No Smoking Day falls on Wednesday 10 March this year. Here are examples of the premium differences between smoker and non-smoker rates. Premiums are based on level single life cover, over a 25 year term for £150,000 sum assured:

A smoker aged 50 would pay nearly triple per month what a non-smoker of the same age would have to pay for the same sum assured, £29.13 compared to £82.48. This highlights how it could pay to quit the habit as, in this example, savings can amount to £16,005 over a 25 year term.

According to the ONS in 2019, 62.5% of the British population aged 16 and above who have ever smoked said they had quit.

Meanwhile smoking increases your risk of developing more than 50 serious health conditions, including cancer and heart, lung and circulatory disorders.

Craig Paterson, Chief Underwriter at Royal London said:

“Giving up smoking can save you thousands of pounds in your life insurance premiums – and that’s on top of the savings made from not buying cigarettes. This No Smoking Day, make the decision that’s best for your health, as well as your wallet.”

If you’re thinking about giving up on No Smoking Day this year you don’t need to go it alone as free support is available from the NHS stop smoking service. The benefits of giving up are worth it in the long run both in terms of your health and your wealth.

March 9th, 2021 | Andrew Hagger | News

What to look for in a forex broker

If you’re one of the growing number of new forex trader, you’ll need to carry out your business through an online brokerage platform in this digital age.

However, choosing a forex broker can be far from straightforward, thanks both to the competitive nature of the market and the risk posed by rogue and fraudulent operators.

In this post, we’ll discuss what you should look for in a forex broker and the factors that distinguish viable from the more questionable operators.

What is Forex and What Role do Brokers Play?

The forex market facilitates the trade and exchange of currency pairs, with this global entity home to hundreds of assets that are categorised as major, minor or exotic pairings.

Such pairs will compare the value of two currencies through a classic numerator / denominator relationship, with the base asset on top and a quote currency on the bottom.

Historically, the market was largely exclusive to established and institutional investors, who would connect to the exchange and request orders through a middleman or ‘broker’.

In the digital age, however, all currency trades and forex orders are now facilitated online, through virtual brokerage platforms that also serve as one-stop shops in which investors can analyse data, automate trades and even diversify across a wide range of markets.

As a result of this, even a high volume of trades can now be organised and executed in real-time, making the market and concepts such as scalping far more accessible to part-time traders.

What to Look for in a Broker?

Before we explore precisely what to look for in a forex broker, it’s important to recognise that not all entities of this type have been created equal.

Even if we set aside rogue operators, forex brokers will vary in a number of ways, from their introductory offers and unique transaction fees to the technical indicators that they use and markets that they offer access to.

When choosing a forex broker, the first thing to ensure is that it’s fully licensed and regulated. In the UK, all brokerage sites should be fully regulated by the Financial Conduct Authority (FCA), and if this accreditation is lacking then you could be placing your capital and personal information at risk.

The next step is to review any published starting bonuses or account offers, before checking out the precise transaction fee model adopted by brokers.

This information can help you to understand the broader value proposition offered by the broker, while potentially affording you some free capital that can subsequently be invested.

Don’t overlook the importance of an accessible customer support service, either, as the presence of efficient and constantly accessible agents can help to resolve financial or technical issues almost as quickly as they occur.

Forex trading is not without risk and it is possible that you could lose some or all the money you invest, so it is only suitable for professional or experienced traders

High Risk Warning: Trading Contracts for Difference (CFDs) on margin carries a high level of risk and may not be suitable for all investors

March 9th, 2021 | Andrew Hagger | News

If you have some surplus funds in your business current account at the moment but don’t want to lock your cash away for 12 months or more in a fixed rate bond, then a business notice savings account may be the answer.

It’s not as flexible as being able to get instant access to your cash, but if you’re prepared to wait between 1 and 3 months to withdraw funds, there are some decent deals on offer – here are four of the best.

Investec Bank 32 day Notice (Issue 4)

Rate – 0.55% AER Variable

• Open and manage online
• Minimum investment £40,000
• Maximum investment £800,000
• Interest paid monthly
• More details

Moneycorp Bank 90 day Notice

Rate – 0.65% AER Variable

• Open and manage online
• Minimum investment £10,000
• Maximum investment £1,000,000
• Interest paid monthly
• More details

Redwood Bank 95 day Notice

Rate – 0.70% AER Variable

• Open and manage online and post
• Minimum investment £10,000
• Maximum investment £1,000,000
• Interest paid monthly or annually
• More details

Close Brothers 95 day Notice (Issue 2)

Rate – 0.60% AER Variable

• Open by post and manage by phone and post
• Minimum investment £25,000
• Maximum investment £1,000,000
• Interest paid half yearly
• More details

March 4th, 2021 | Andrew Hagger | News

American Express has teamed up with skincare brand Kiehl’s, online florist Appleyard Flowers, and hand iced biscuit maker Biscuiteers, to reward eligible Cardmembers on their spending this Mother’s Day.

Available now, Cardmembers can receive cashback when purchasing that special something for their mother. Whether near to, or far from loved ones this year, take advantage of these offers that will give you something back on your spending on gifts this Mother’s Day.

American Express Cardmembers can access the following Amex Offers, by simply saving the offer to their card via the Amex App or online at americanexpress.com/uk/.

KIEHL’S SINCE 1851, GET 15% BACK. Show that you care this year with Kiehl’s skincare products and get 15% back on your purchase, https://www.kiehls.co.uk/.

The offer is available online until 30 March 2021.

Full terms and conditions, and exclusions apply.*

APPLEYARD FLOWERS, GET 15% BACK EVERY TIME. Brighten their day with beautiful blooms from Appleyard Flowers with 15% back every time you make a purchase, https://www.appleyardflowers.com/. The offer is available online until 14 March 2021.
Full terms and conditions, and exclusions apply.*

BISCUITEERS – SPEND £30 OR MORE, GET £5 BACK EVERY TIME. Tuck into a sweet treat this Mother’s Day with Biscuiteers – https://www.biscuiteers.com/ and get £5 statement credit every time you spend £30 or more.

The offer is available online and instore until 30 April 2021.

February 23rd, 2021 | Andrew Hagger | News

New analysis of the top 50 instant access savings accounts for balances of £5,000, commissioned by Investec, reveals that only 26 of the top 50 instant access savings accounts are ‘clean’ and don’t have penalties, restrictions for withdrawing money, or rely on short-term bonuses to inflate returns.  The corresponding figures for the top 20 and 10 instant access savings accounts are 13 and four respectively.

Investec’s research, which was conducted by Andrew Hagger of MoneyComms, reveals that 17 of the top 50 instant access savings accounts limit the number of withdrawals customers can make, and 11 charge interest penalties or reduce the interest rate paid to savers who make more withdrawals than their accounts allow.  Six don’t allow any further withdrawals for the year once the maximum permitted number has been reached, and for three, there are restrictions as to who can open them such as needing to have a current account with the provider.

The analysis also reveals that four of the 50 savings accounts have short-term bonuses.  The average size of the bonus is 0.26% and on average they last for 12 months.  On 30^th October 2020, the corresponding figures were 0.34% and 11.1 months respectively.

The average interest rate for the 50 market leading accounts on 18^th February 2021 was 0.34%, but this drops to 0.32% once the bonuses expire. The corresponding figures in October 2020 were 0.52%and 0.47% respectively.

Samantha Booysen, Head of Digital Savings at Investec, said: “There is a huge number of savings accounts to choose from, but it is just as important to review their terms and conditions as it is the interest rate they are paying.  You need a savings account that not only pays an attractive return, but also allows you to manage your money in the way that you want.”

Andrew Hagger, Founder and Director, MoneyComms, who conducted the research for Investec said: “The easy access savings market has become more confusing in recent years with many providers introducing restrictive terms, limited withdrawals and short-term bonus rates.

“Most savers don’t want to have to worry about a limited number of withdrawals or access penalties, they simply want an account they can pay in to and withdraw from whenever they like – no strings, no sneaky T&C’s, just a plain and simple no nonsense everyday savings account”.

February 18th, 2021 | Andrew Hagger | News

Britons who managed to save money during the pandemic are planning a £36bn spending spree when restrictions ease, according to new research¹.

The study, by ethical savings provider Gatehouse Bank, found more than two-thirds (68 per cent) of people have been able to put money away during the pandemic due to reduced expenditure such as commuting and other travel, as well as an inability to spend as much on leisure activities including eating out and leisure pursuits.

Respondents to the survey, conducted in the run-up to the launch of the bank’s new Green Saver accounts, say they are now looking to spend around a third (35 per cent) of those funds, £1,019 on average, when things return to ‘normal’.

The most popular expenditure will be on holidays, with 11 per cent hoping to travel abroad and one in ten intending to take a vacation in the UK, with home renovation also a popular choice, with 10 per cent planning a major makeover project.

A cautious 14 per cent of the population said they were going to invest their nest egg for the future, despite a backdrop of falling savings rates.

Charles Haresnape, CEO at Gatehouse Bank, said: “With the economy locked down repeatedly for months at a time, more than half the adult population is sitting on extra savings.

“The news that people plan to spend a third of these funds when lockdown ends will be music to the ears of businesses and the Government, who know that an instant injection of consumer spending will be critical for the country’s economic recovery.

“For those looking to put some of those extra savings away for the future, though, the outlook is not so rosy as good savings rates are proving hard to find, so it’s more critical than ever that savers shop around.”