Welby Associates

Tax code warning as Chancellor hikes late filing charges

HMRC is urging both workers and retirees to double-check their tax codes at the start of the tax year to avoid potential issues.

Spring Statement 2025: What it means for your finances

Chancellor Rachel Reeves has delivered her Spring Statement, outlining the UK’s latest economic and spending priorities against a backdrop of tightening fiscal constraints.

Spring Statement 2025

This Spring Statement was always intended to be a fiscal non-event. Chancellor Rachel Reeves had promised that there would only be one major economic event each year and last October’s controversial budget was most definitely intended to be it.

Quick explainer: What is Bed & ISA, and can I use it to save on tax?

If you’re a UK investor looking to make the most of your Individual Savings Account (ISA), you might have come across the term 'Bed & ISA'.

Is it worth topping up your state pension?

The deadline for making up missed national insurance contributions dating back to 2006 is coming up, but is it worth your while?

Three quarters of pensioners to pay income tax by 2032

Around 10 million pensioners – or three quarters of all retirees – will be paying income tax by 2032 according to a report from financial services consultancy LCP.

Inheritance tax essentials guide

Inheritance tax (IHT) is one of the most important considerations for anyone with a significant estate they wish to pass on.

Is the Chancellor about to axe cash ISAs?

The Chancellor has been urged to slash the tax breaks available on cash ISAs in a bid to boost the economy and support London’s dwindling stock market.

What is the Consumer Price Index (CPI)?

As the Office for National Statistics (ONS) has just announced that inflation, as measured by the Consumer Price Index (CPI), rose once again by 3% in the 12 months to January 2025, we thought it would be useful to take a look at exactly how the CPI works and what it does.

One in 42 UK homes now worth over £1 million raising inheritance tax liability fears

One in every 42 homes – more than 700,000 – in the UK is now worth more than £1 million, according to new research from estate agency Savills.

March Market Commentary

The FTSE 100 hit another record high in February, and both the UK and the Eurozone fared surprisingly well in the face of Trump's tariff threats.

Unemployment rises unexpectedly – what it means for the UK economy

HMRC vows to end decade-long pension overtaxation controversy

Last minute end of tax year checklist

February Market Commentary

Could Trump’s trade tariffs hit your wallet?

Why Simplifying ISAs Makes so Much Sense

Keir Starmer Pushes Regulators to Unlock UK Economic Growth

Prime Minister Keir Starmer has written to more than 10 major UK regulators to challenge them to unleash growth in the UK economy.

The Year Ahead For Personal Finances

As a New Year arrives, so do new challenges, opportunities and changes to keep in mind. Here is a guide to what to expect and other aspects to consider.

One in Four Using Investments to Help Family and Friends

A survey of over 1500 investors by AJ Bell in December showed that a quarter of those surveyed had either already withdrawn money to help financially support family or friends (15%) or were thinking about it (a further 10%).

Most Popular New Year’s Resolutions for 2025

As we enter 2025, many people will be setting New Year’s resolutions. How serious they take them, and how long they last, depend on each persons will and motivation but many surveys report familiar themes.

January Market Commentary

A New Year gives us the chance to look forward. We can expect more change in 2025 for personal finances, with a new Labour budget laid out and a returning President in the US.

Tax Returns for Christmas?

HMRC data shows that 24,828 people brought in the new year by submitting their self-assessment tax returns on January 1st.

Is Giving Money Away an IHT Planning Option?

Labour’s new policy on inheritance tax means that more estates could pay inheritance tax (IHT) in future. Whilst there are plenty of legitimate ways to reduce an IHT liability, there’s one which we often forget despite it being very simple. That’s giving money to your loved ones. Although gifting is simple, and might be something you already do without thinking, there are a few rules you should be aware of.

Estate Planning and Blended Families

Blended families are formed when two people live together with children from previous relationships. They are increasingly common in the UK, and can work extremely well. However it is worth considering the estate planning implications.

Is Trump the Christmas Grinch?

With Christmas looming and President Elect, Donald Trump, promising the introduction of greater trade tariffs, the toy manufacturing industry is in a rush to move away from Chinese factories.

December Market Commentary

The US election provided another definitive moment in what has been a politically charged year. With many countries holding elections in 2024, analysts have been second guessing what markets will do for some time. Whether Trump is popular outside the US is debatable, but his election victory was convincing and markets have responded positively so far.

Is Marriage a Budget Winner?

Marriage might be an unlikely winner from Chancellor Rachel Reeves' controversial first budget. Whilst there have been no changes to inheritance tax allowances, more assets, most notably unspent pension funds on death, will be included in estates for inheritance tax purposes in future.

Premium Bond Rates Cut in December

Whilst the interest rate cuts is generally pitched as positive news for the economy, it's worth remembering its not so great for savers in cash or savings bonds.

Estate Planning and The Budget

The headlines will focus on the government’s decision to charge inheritance tax on any unused pension funds or death benefits. This is only part of the story, and there are a number of changes in the budget which makes a review of potential inheritance tax liabilities more important than ever. These measures are forecast to bring in over £2.2 bn in tax by 2030.

November Market Commentary

Labour's first budget for 14 years dominated the headlines, but with a US election in early November and constant attention paid to inflation figures, corporate results and interest cuts around the world, there was plenty of other financial news throughout October.

Investing and The Budget

After all the noise and drama of the recent Budget, it is worth noting that the allowances and reliefs available for the core investment products that our clients use remain in place.

How Much Tax Does the Premier League Generate

A study by EY based on 21/22 tax year showed that Premier League players and staff contributed £1.7bn in tax, with the Premier League and its clubs combined contributing £4.2bn in total during the year.

Rates Cut Again

The Bank of England cut interest rates by 0.25% to 4.75% on Thursday 7th November, in a widely expected move. It was an 8-1 vote in favour.

Business Owners and The Budget

The increase in employer NI will come as a blow to most small and medium sized businesses, and even the OBR believe that it will change employer behaviour to the extent that the £25bn tax revenue forecast is likely to shrink considerably once employers cut back on wages and recruitment, which will ultimately have an impact on the economy and other taxes such as VAT through reduced spending.

Bank of England Sticks as Fed Twists

As expected the Fed cut US interest rates in September, with a 0.5% reduction which brings the rate down to a range of 4.75-5%. For the first time since 2005 it was not a unanimous decision as one committee member dissented.

UK Job Market May Be Stagnating

Competition for jobs in the UK has reached its highest level in three years, with more than two jobseekers per vacancy, according to new research from jobs site Adzuna. The report reveals a 0.5% drop in advertised vacancies, with 857,000 roles available in August, down from July. This indicates a potential stagnation in the UK jobs market.

£1.4bn In Forgotten Child Trust Fund Money

The Government has released data showing that a huge £1.4bn is currently sat unclaimed and unused in Child Trust Funds (CTFs).

AI Bill Blocked By California Governor

California Governor Gavin Newsom has vetoed a landmark artificial intelligence (AI) safety bill, which faced significant opposition from major technology firms. The bill would have introduced some of the first AI regulations in the United States, including safety testing and the inclusion of a "kill switch" to deactivate advanced AI systems in the event they posed a threat.

October Market Commentary

The Fed cut interest rates in September which, despite the Bank of England holding at 5%, is now expected to be the direction of travel for much of the developed world as it returns to some form of financial normality into 2025. China's financial stimulus was another big story in September, as it was their biggest intervention since Covid, and markets responded favourably, especially in Asia.

Energy Price Cap Rises 1st October

The energy price cap rises by 10% from 1st October. Many people have been submitting meter readings and some are switching to fixed tariffs ahead of the change.

What is GDP and How is it Calculated?

Gross Domestic Product (GDP) is a key economic indicator that measures the total monetary value of all goods and services produced within a country’s borders over a specific period, typically a quarter or a year. Every government in every country wants to drive growth in GDP, as it generates greater revenue for public spending without having to increase taxes. Without growth their options are to cut or freeze spending on public services, increase taxes or increase debt.

Property v Pension

Investing in property as a retirement strategy has become popular, particularly after the post-financial crisis housing boom, driven by low interest rates and government incentives. Many who ventured into buy-to-let investments instead of traditional pensions benefited from a period of cheap mortgages and rocketing house prices. However, the outlook for buy-to-let may not be as promising, and those considering this path should reassess their options carefully.

School Fees Hit With VAT from January 2025

Private schools will lose their special status from January 2025 and have to add VAT to their fees from that date, Labour have confirmed.

Rents Rises Slow Down But Problems Persist

Data provided exclusively by Zoopla to the BBC in August suggest that the rental market has cooled in 2024, with rent rises at their slowest rate for three years, but rents continue to rise.

Gloomy Starmer: Budget is “Going to Be Painful”

Speaking in the Downing Street ‘rose garden’, made famous during the pandemic for lockdown parties and ‘that’ Dominic Cummings interview, Keir Starmer delivered a sobering speech on 27th August that sets the tone for the budget at the end of October.

September Market Commentary

As inflation cools and interest rates look likely to come down over time, the world is expecting a gradual return to economic normality in the second half of 2024. However, it’s never quite that straightforward. Changes in government around the world create temporary blips as we wait to see if policy will change with personnel, and global markets are still heavily exposed to US tech stocks which have delivered inconsistent result in recent months leading to a little more turbulence of late.

August Market Commentary

July 2024 was a big month for politics with the UK election decided and some major twists and turns in both the US and France. The Bank of England have cut rates, the Fed kept the rates at the same level but there is an increasing expectation that they will cut them in September. The Bank of Japan put rates up.

Markets Anticipate A Rate Cut

With the Bank of England due to make a decision on rates on Thursday this week, market data analytics business LSEG believes that investment markets are pricing in on a 60% chance of a rate cut now, with more confidence of a rate cut by September and an expectation of two cuts by the end of the year.

What Information Should You Collect For Your Tax Return?

For a tax return, particularly for those with complex financial affairs, having comprehensive and accurate data is crucial. Here is a list of the most important information and documents you will need.

Why A Power of Attorney Makes Sense

A power of attorney (POA) allows you to appoint someone you trust to make decisions on your behalf if you become unable to do so. It is a really important piece of financial planning, as it should provide continuity in the event that you are unable to make important decisions. We’ve summarised below the key reasons for creating a POA and the main types available.

US Tech Stocks Create Active Manager Headache

When it comes to pure performance there has been a flight to passive investment funds in recent years. Investment Association data shows that since the start of 2022 retail investors have invested £37 billion into tracker funds, and have withdrawn a staggering £89 billion from active funds. However this isn’t just down to bad stock selection.

Mastering The Art Of Budgeting

Times have been unusually tough for a lot of people in recent years. Even people with a decent income have been squeezed by inflation. For them, the process of budgeting extends beyond mere expense tracking. It’s about strategically managing resources to sustain and grow wealth, aligning spending with values, and preparing for future financial goals. Here’s a guide to help you navigate the essentials of budgeting effectively.

What is Currency Hedging?

Currency hedging is a financial strategy used to reduce or eliminate the risk of losing money due to fluctuations in exchange rates. This strategy is particularly relevant for funds with investments across different countries with transactions in various currencies. The basic concept involves using financial instruments such as forward contracts, options, and futures to lock in exchange rates for the purchase or sale of currencies at a future date. By doing so, you can protect the value of your international investments against adverse currency movements.

Philanthropy as an Investment in the UK

In recent years, the landscape of philanthropy in the United Kingdom has undergone a significant transformation. Traditionally viewed as an act of charity or goodwill, philanthropy is increasingly being recognised as a strategic investment with the potential for meaningful social impact. This shift reflects a growing awareness among individuals and institutions of the power they hold to effect positive change in society through targeted giving. In this article, we will explore the factors driving the growth of philanthropy as an investment in the UK and its implications for the future.

Tax Implications of Gifting

Gifting is the act of giving money (or a ‘chattel’) to someone for nothing in return. It’s common for people to do this occasionally for family members, but there there are specific tax rules to remember, especially concerning inheritance tax (IHT). Here are some key points to consider...

Pensions and Politics

Pensions have been a big topic in UK politics for some time, nevermore so than in an election year. That’s no surprise to us given their crucial role in the financial security of millions of citizens, but not everyone is as interested and engaged in pensions as we are! Here’s a quick summary of why pensions have been at the forefront of UK politics in recent years.

What is A Safe Withdrawal Rate?

The concept of a “safe withdrawal rate” is a common ‘rule of thumb’ in retirement planning, used to determine how much you can withdraw from your retirement savings each year without running out of money. The safe withdrawal rate helps retirees manage the risk of outliving their assets, balancing the need for current income against the preservation of capital over the long term. Here’s a breakdown of the concept and its application.

July Market Commentary

June 2024 was a big month for global financial markets, marked by significant volatility and key economic developments. The interplay of geopolitical tensions, economic data releases and central bank policies shaped market sentiments across various regions.

The New Era of Pension Allowances: Understanding the End of the Lifetime Allowance

The recent abolition of the Lifetime Allowance (LTA) for pensions marks a significant shift in retirement planning and wealth management in the UK. This move, set to reshape how individuals approach their pension savings, ushers in new rules and opportunities for affluent investors.

How Do Higher Rate Earners Claim Pension Tax Relief?

As a higher rate earner in the UK, you can claim additional tax relief on your pension contributions. We are here to help you claim it, but here’s a reminder about how it’s done.

Is the UK stock market in crisis?

Cambridge-based tech company Raspberry Pi recently confirmed that it plans to list on the London stock market alongside Chinese fast fashion brand Shein, who are considering floating on the London Stock Exchange instead of New York, following issues with US lawmakers. That’s great news, you might think, but Bloomberg, for example, has reported that the number of London-listed companies has shrunk by a quarter over the past decade.

Why you should get to grips with your finances

We’re all busy people and our spare time is very precious to us. So it’s no surprise that many of us are neglecting vital life admin and instead spending time on – how shall we put it? – less important pursuits. According to research by Moneybox, UK adults spend an average of 48 minutes a week scrolling through social media platforms and 39 minutes a week playing video games.

Fiscal Drag Means HMRC Tax Haul Outpaces Inflation

It’s never been more important to use all of your your tax allowances. As the election campaigning ramps up we will hear more and more about tax cuts to in votes, but the latest data from HMRC shows that their total revenues from tax receipts and National Insurance Contributions were £827.7bn from April 2023 to March 2024, up £39.1bn on the previous year.

June Market Commentary

The global financial markets continue to grapple with a complex mix of geopolitical tensions, inflationary pressures, and evolving central bank policies. The past year has seen significant shifts in market dynamics, with varying impacts across different regions.

How to choose a financial adviser

Finding the right financial adviser for you is crucial if you’re to achieve your financial and lifestyle goals.So what factors should you be considering when making this decision?

Why you should speak to an independent financial adviser

Trying to understand every aspect of your finances can be daunting, overwhelming and sometimes just plain baffling. When you want to get to grips with the finer points of everything from ISAs and mortgages to pensions and investments, where do you start?

Should I buy an annuity with my pension?

A pension annuity is a financial product you can buy with your retirement savings to turn them into a guaranteed income stream for life. Although there are other ways you can access your pension pot, an annuity offers the security of knowing exactly how much money you’ll get each month, regardless of how long you live. So how does it work?

How do you decide when to retire?

As you move through your working life, it’s easy to get a rosy picture of retirement and dream of the day when you finally step away from the office. But how do you work out when that day should actually be? Well, there’s no simple answer to this question, as there are so many factors that are unique to you personally.

Will the state pension still exist when you retire?

The beginning of the 2024-25 tax year saw an 8.5 per cent increase in the state pension – in other words, an extra £900 a year for pensioners. That’s great news for the current crop of retirees, but what about upcoming generations? Well, many younger adults aren’t confident that they’ll receive any state pension at all in later life.

May Market Commentary

For several months now, we’ve been noting that while growth remains slow across much of the globe, the worst of the inflation crisis seems to have passed. But while cautious optimism is growing, the global economy is by no means exactly where investors, businesses, consumers and policymakers want it to be just yet. As always, let’s take a closer look at key markets around the world and examine the state of play over the last month.

April Market Commentary

Although many of the world’s major economies have struggled to achieve strong growth in recent months, there is a sense that some key markets are starting to turn a corner.

How ISA rules are changing in 2024-25

Individual savings accounts, or ISAs, are a hugely popular and tax-efficient way to save and invest money. However, savers should be aware that the rules on ISAs are changing in the 2024-25 tax year. The changes have been described by consumer group Which? as “the biggest shake-up to tax-free savings in 15 years”, so let’s take a look at what’s new.

Number of inheritance disputes has doubled in the last decade

More and more people are finding themselves in legal disputes with loved ones over inheritances, new figures have revealed. According to the Ministry of Justice, 80 inheritance disputes went in front of judges in 2012. However, this figure had risen to 145 by 2017, and in 2021/22, it stood at 195 – more than double the number recorded a decade earlier.

When will interest rates come down?

The Bank of England raised interest rates 14 times between December 2021 and August 2023, as part of an effort to tackle soaring inflation. The debate has now turned from how high interest rates will go, but to how quickly they will come down, especially as they’re currently at a 16-year high.

Brits becoming more confident about their financial situation

We’ve been through a difficult period in the last few years, to say the least. Thanks to factors ranging from the Covid-19 pandemic to Liz Truss’s catastrophic Mini-Budget, along with soaring interest rates and inflation rising to a 40-year high, people in the UK have been put under unprecedented and sustained financial pressure.

Would you open a British ISA?

Jeremy Hunt’s Spring Budget was a rather unflashy affair, with no big headline-grabbing, rabbit-out-of-the-hat moment. This was a surprise when you consider that we’re in a general election year, but it does explain why the reaction to the entire fiscal event was rather muted and why the Budget hasn’t moved the dial politically. But there was one announcement that made some people sit up and take note – the introduction of a £5,000 “British ISA” tax allowance.

Do you know how much income you’ll need in retirement?

We all want to look forward to a happy and fulfilling retirement, but that doesn’t happen by itself. It’s the result of careful planning and making the right decisions throughout your working life, so you can have the financial means to enjoy the lifestyle you want and deserve.

What a technical recession means for your money

The economy shrank by 0.3 per cent in the final three months of last year, following a fall of 0.1 per cent in the previous quarter. That means that the UK fell into a technical recession in the second half of 2023. So what does this mean for you, your finances and your efforts to plan for the future?

What is loud budgeting?

Money can often be something of a taboo subject, so many of us stay tight-lipped even if we’re desperate to say something. But a new trend, termed “loud budgeting”, suggests that attitudes could be changing.

March Market Commentary

It’s been a mixed picture across the globe in the last few weeks. Many of the world’s major economies have continued to see minimal growth in recent months, while the UK and Japan have slipped into recession.

Why you should increase your pension contributions before the tax year ends

The end of the tax year is fast approaching, so you should be using the next few weeks to prepare and make sure you’re not paying more tax than you have to. One of the best ways to do this is to maximise your pension contributions.

Use your Capital Gains Tax allowance before it halves

The 2023/24 tax year is coming to an end on April 5th, so you don’t have long left to use your various allowances – in particular your Capital Gains Tax allowance.

February Market Commentary

While growth has been stagnant across much of the globe in recent months, various sets of figures have suggested that the corner is finally being turned. For example, inflation is falling, and many analysts believe central banks around the world will start cutting interest rates in the near future.

Why investors should hold their nerve ahead of big political year

This year is a massive year politically, with elections taking place on both sides of the Atlantic during 2024. The prospect of a new government and the run-up to an election brings with it considerable uncertainty. So what does that mean for you and your money over the next 12 months?

Financial fraudsters targeting victims with AI scams

The methods used by financial scammers change constantly, as they use ever-more sophisticated technology and tactics to defraud innocent people. It’s perhaps no surprise, therefore, that they have turned to artificial intelligence to create scams that are frighteningly hard to detect.

Do you overspend to keep up with friends and family?

If there’s one thing that’s sure to put your financial plans and spending discipline at risk, it’s the fear of missing out. So how much are we actually spending on keeping up with the Joneses? Well, more than you might think.

Why now is the time to increase your pension contributions

Securing a comfortable retirement depends on sensible and disciplined financial planning, so you have the means to enjoy the lifestyle you desire in later life. So why should you step up your pension savings now?

Why you need to review your pension

It’s so easy to set up a pension, set up your contributions and then basically forget about it, safe in the knowledge that your pension pot is growing every month and year. But this approach means you might miss out on opportunities to maximise your income in later life.

How to protect yourself from financial crime

Criminals have many different ways of targeting unsuspecting victims and obtaining their hard-earned cash. So what can you do to be more resilient in the face of this ever-evolving threat and make sure your money stays in your pocket?

How to strengthen your business in tough economic times

As a business owner, you’ll be all too familiar with facing tough economic circumstances and market disruptions. How can you make sure that it is set up to withstand the impact of factors well beyond your control?

5 habits that investors should adopt today

Experienced investors know that navigating the market takes time, discipline and plenty of strategic thinking. But what if you’re newly embarking on this journey and expecting quick results?

IHT tax receipts soar – how can you reduce your payments?

Between April and November 2023, HM Revenue & Customs collected £5.2 billion in inheritance tax (IHT) payments. That’s £400 million higher than in the same period last year, according to official figures.

Financial new year’s resolutions for 2024

The beginning of a new year is always a good time to take stock and think about what you want to get out of life. So what realistic steps can you take?

January Market Commentary

As the new year gets underway, there are positive signs that the inflation crisis around the world is finally starting to ease. As always, let’s take a closer look at key markets across the globe to find out how they’ve been performing recently.

How financial advice can improve your mental health

Figures from the Money and Mental Health Policy Institute show that nearly three-quarters of Brits have felt anxious in the last two weeks, with many citing money issues as the cause of their anxiety.

Do you talk with your partner about money?

There’s always been something of a taboo around discussing money, so it’s perhaps little surprise that so many of us are tight-lipped about financial matters with friends and family.

Savers are missing out on free money

What do you do with your monthly earnings when they land? Do you leave all the money sitting in your current account? Or do you invest some elsewhere, so you can make your money work hard for you and maximise your returns?

More people in work using private healthcare

It’s far from controversial to say that the health service is under massive strain – and has been for some time.

December Market Commentary

The ongoing crisis in the Middle East continues to dominate the headlines, although the temporary truce which saw many of the hostages in Gaza released was undoubtedly welcome.

Would you downsize to a smaller property?

When your children have grown up and left home, your house can suddenly feel a lot bigger and emptier. But despite there being many compelling reasons to move to a smaller property, many of us stay put.

Would you welcome a fall in house prices?

After many years of consistent house price inflation, the value of the average property in the UK has started to decline, but does this tell an accurate story?

How to budget for Christmas

Love it or loathe it, Christmas is fast approaching, and for many of us, it’ll be the most expensive time of the year. So how can you make sure your Christmas spending doesn’t tip you into the red?

Why you shouldn’t ignore critical illness cover

It’s easy to make one big mistake – believing that this journey will go smoothly and that you won’t ever get knocked off course. So what would you do if an emergency did arise, such as an unexpected health crisis?

November Market Commentary

As always, we take a closer look at what’s been happening in key markets across the world over the last month.

Holidays remain spending priority, despite financial pressures

High inflation and wider cost of living pressures have forced many of us to re-evaluate our spending and decide what’s really important to us. So it’s interesting to see that holidays are firmly at the top of this list.

Why your mid-30s is the time to start taking your pension seriously

There comes a time when you need to be more proactive in ensuring you get the retirement you want and deserve. For many, that time is when they hit their mid-30s.

What’s the future for cash payments?

With so many payment options available today, from online banking to contactless and mobile payments. So why is cash remaining so popular when so many alternatives are available?

Would you speak with your lender or landlord if you’re struggling?

For many, their mortgages and rents will be among their biggest outgoings, so it would make sense to turn to your lender or landlord if you’re under financial pressure. Sadly, many are apparently reluctant to do so.

Have interest rates finally peaked?

The Bank of England surprised us this month by holding interest rates at 5.25 per cent, bringing to an end a run of 14 consecutive interest rate hikes. So what does this mean for you and your money?

One year on – Where Has The Mini Budget left the Mortgage Market?

It’s one year since Liz Truss and Kwasi Kwarteng’s ill-fated Mini Budget, a £45 billion tax cutting package, paid for by increased public borrowing. So where are we now 12 months down the line?

What would an inheritance tax cut mean for you?

Inheritance tax has long been a controversial levy and the debate over scrapping it completely has been rumbling on for many years. So if inheritance tax were to be scrapped, what would it mean for you?

October Market Commentary

Sluggish growth and high inflation have stubbornly persisted across much of the globe in recent months, and September was no different. As always, let’s take a look at the details…

September Market Commentary

Sluggish economic growth in major economies was again a common theme throughout August. As always, let’s take a closer look at key markets across the world to find out what’s been going on…

When should I update my will?

Simply writing a will isn’t enough, as your circumstances can change dramatically over time. So when should you be thinking about updating this vital document?

Are you confident about repaying your mortgage?

While 36 per cent of borrowers expect there to be some shortfall, the FCA believes the real figure will be around 46 per cent. Nearly half of all borrowers might struggle to repay their mortgage. So what can be done?

Why you need an emergency fund

Life is what happens to you while you’re busy making other plans, as the song goes. An unexpected curveball can still come your way. That’s why it’s always recommended to have an emergency fund in place.

Retiring Abroad: Pros and Cons

The idea of retiring abroad can seem very alluring. So let’s look at both sides of the coin and focus on what you need to think about before taking this momentous step.

Is property still seen as a lucrative investment?

Property has long been regarded as one of the best options for investors looking to gain healthy returns. But is property still seen as a lucrative investment?

August Market Commentary

While progress is being made in some countries, growth remains sluggish and inflation remains high in several key markets, most notably the UK. As always, let’s take a closer look at the details.

What’s putting you off investing?

Investing can be a sensible and effective way of maximising your income and making sure your money is working hard for you. So why don’t more of us do it?

What life skills do you wish you’d learned at school?

For many of us, our school life was defined by exams. It was only once we left education that we realised we didn’t actually possess much of the information and skills we needed to thrive as adults.

What is sustainable investing?

People are more engaged with social and environmental issues than ever before. So what exactly is sustainable investing and what does it mean?

How Taking Control of Your Finances is Good for Your Mental Health

Simply knowing you have a clear view of your finance can give you considerable peace of mind, and let you concentrate on those things that bring you joy rather than fear. So where do you start?

Should I Overpay My Mortgage?

When you’re setting your financial and lifestyle goals, paying off your mortgage is likely to be at or near the top of the list. So it’s reasonable to start thinking about whether you could overpay slightly every month.

Why you should carry out a Financial Review

When you create a financial strategy, you’ll often have medium- to long-term goals in mind. It’s well worth carrying out a financial review periodically, so you can identify where your money is working hard for you.

5 points to consider before retirement

Retirement may seem like some way off, but it pays to start preparing as soon as you can. So what specific areas should you think about, in order to make sure you can afford the type of retirement you want and deserve?

Are you worried about rising mortgage costs?

Many analysts and observers are expecting the Bank of England to continue hiking up interest rates for some time. So what does this mean for you and your mortgage?

Make sure you’re ready for unexpected events

Nobody knows what’s just around the corner, and unforeseen events can occur any day at any time. So how can you make sure you’re prepared for an uncertain future?

Why are landlords leaving the buy-to-let market?

We’re increasingly seeing landlords leaving the market, which in turn is leading to a shortage of rental housing at a time when many people can’t afford to buy a property. So what factors are driving this exodus from the buy-to-let sector?

July Market Commentary

Sluggish growth and high inflation were recurring themes in many major and emerging economies last month. As always, let’s take a closer look at the details.

Are you getting caught in the inheritance tax threshold?

The current inheritance tax threshold is £325,000, so there’s nothing to pay if the value of your estate falls below this amount. Worryingly, this threshold has remained frozen now for more than a decade – despite soaring house price inflation over this period.

Should I be wary of 100% mortgages?

Skipton Building Society recently hit the headlines after announcing that it was offering a deposit-free mortgage, aimed at first-time buyers currently living in rented accommodation.

What are asset classes?

Asset classes are a way of classifying investments into groups. These groups will feature separate individual investments that will behave similarly, but their performance can vary for many reasons.

Stock listing rules shake-up on the way

Just recently, British technology firm Arm chose to list in the US rather than the UK, which led to many expressing concern over whether UK stock markets remain an attractive proposition to businesses post Brexit.

How to make your financial goals achievable

If you speak to a financial adviser, it’s important to have a clear idea of what you want to achieve. Do you want to expand your investment portfolio? Get on the property ladder? Maximise your income in retirement? Pass on a generous inheritance to your loved ones?

June Market Commentary

Economic growth remained subdued at best in many major markets throughout May. As always, let’s take a closer look at the details to find out more about what’s been happening over the last month…

7 Common Investment Mistakes to Avoid

Investing is a great way to increase your wealth and work towards your lifestyle and financial objectives. But it’s by no means a smooth process, and many investors can make mistakes that can ultimately be very costly. So what should you avoid?

Teach your children good financial habits

You want to make sure your finances are in order, so you can provide for your family after you’re gone. But another way to help your loved ones is to instill good financial habits into them early on in life, so they’re in a stronger position to achieve their goals in the future.

Are you confident in making financial decisions?

If you were asked to make big financial decisions, how sure are you that you’d make the right ones. Well, a new study by PwC and YouGov has found that nearly nine in ten people feel confident or very confident in making decisions about their money.

How has high inflation affected retirees?

All of us have felt the pinch as inflation has soared to its highest level in 40 years. The rising cost of living has affected everybody to some extent. But one group that’s being particularly hard hit is retirees.

May Market Commentary

High inflation continued to put the brakes on growth in many major economies throughout April. As always, let’s drill down a bit further and take a closer look at what’s been going on across the globe…

What should you think about before retiring abroad?

Retiring abroad is a common ambition. But moving overseas in later life isn’t quite as simple as just packing your suitcase and jetting off. There are plenty of things you should think about beforehand, so you can be confident you’ll get to enjoy retirement abroad.

High mortgage rates continuing to put pressure on young homeowners

According to the Bank of England, the number of mortgage approvals hit its lowest level since 2009 – excluding Covid lockdowns – during January this year.

Should I be worried about a new banking crisis?

Six leading central banks are boosting the flow of US dollars to keep credit flowing to households and businesses, which have helped to calm nerves on the financial markets to an extent, there is still an air of volatility at the moment, vividly demonstrated in recent European bank share price movements.

Tips for finding the right accountant

Accountants can help you understand complex legal and taxation matters, navigate regulatory changes and provide valuable guidance and support as you seek to grow your business. So it’s crucial that you work with the right person.

What are buy-to-let tenants looking for?

As a buy-to-let investor, you know better than anyone how competitive the marketplace is right now. So what can you do to get ahead of the pack? Well, understanding exactly what tenants want and are searching for can make a big difference.

Can I get a state pension if there are gaps in my National Insurance record?

You might have been off work for several years for a range of reasons. Thankfully, that doesn’t preclude you from being eligible for a state pension in later life, as you can always purchase National Insurance credits to fill any gaps in your record for the previous six years.

April Market Commentary

As ever, we’ll take a look at what’s happened in key markets around the world over the last month, so we can get a clearer picture of what the situation looks like.

Digital pound could be on the way

Almost everything seems to have gone digital in the last few years – and it looks as if the pound could be next. A consultation on creating a digital pound has just been launched by the Treasury and the Bank of England. Households and businesses would be able to use it for everyday payments in-store, online and to friends and family, and access it through a digital wallet on their smartphone or a smartcard. The proposed digital pound would be issued by the Bank of England and would be interchangeable with cash and bank deposits.

Can you afford to retire early?

Early retirement – retiring any time before the state pension age of 66 – is the dream for many. The pandemic focused many people’s minds; making them think about what they want out of life – and for many in a position to make big changes, early retirement was the big one. The House of Lords Economic Affairs Committee has recently been looking into what’s driven an increase in economic inactivity over the last three years, and found that the key factor is 50- to 64-year-olds choosing to retire early.

Confidence Growing Among UK Businesses

The headlines have been full of grim economic news for a while. From talk of imminent recession and staff shortages to higher interest rates and industrial disputes, there’s been plenty of reasons for worry and alarm, not least among business leaders. So it’s interesting to note that, according to the S&P Global CIPS Flash UK composite purchasing managers’ index, many businesses are actually cautiously optimistic about the future.

Are late payments holding back your business?

Late payments have long been a huge issue for small businesses, as many simply don’t have the financial means to go without money they’re owed for any great stretch of time. As a result, the very survival of some businesses is at stake, with the Federation of Small Businesses (FSB) stating that late payments are behind the closure of 50,000 businesses every year. What’s more, according to a recent FSB survey, the situation is deteriorating, as nearly one in three small businesses believe their payment situation has worsened over the last three months.

March Market Commentary

Russia’s invasion of Ukraine in February 2022 had a huge impact on the global economy, pushing up commodity prices, inflation and living costs around the world. Last month saw the first anniversary of the invasion, and amid the renewed displays of solidarity from leaders in the UK, the US and the European Union, was the uncomfortable reminder that this could be a prolonged conflict. Policymakers are therefore having to balance their continued support for Ukraine with minimising the economic fallout, and the effects this will have on households and businesses.

Get ready for the end of the tax year

The end of the tax year is fast approaching and time is running out. So in the weeks ahead of the April 5th deadline, what steps should you be taking to make the most of your money and reduce your tax bill?

February Market Commentary

Savers and investors will not shed many tears for the end of 2022. A year that was beset by inflation and rising interest rates meant only three of the major stock markets we report on made gains in the year.

Why are house prices falling?

Average house prices have been falling steadily for the last few months now. In fact, the latest figures from Halifax show that prices fell by 1.5 per cent in December 2022, taking the average property value to £281,272. What’s more, that was the fourth monthly decline in succession, which is staggering when you think that even a global pandemic failed to stop house prices heading upwards.

Do you feel in control of your finances?

Money worries can have a devastating impact on a person’s life, causing untold stress and heartache day after day. So it’s really important that you’re not left feeling as if your finances are like a runaway juggernaut: out of control.

Take a long-term view of your investments

Investments go up as well as down. It’s one of the most basic principles of investing that we’re told early on in the process. So why do so many of us panic when conditions in the market are less than ideal?

Seats at the Billionaires’ Table

According to Forbes’ ‘Billionaires’ List’ for 2022, the richest person in the world is currently Tesla boss, Elon Musk. Along with Tesla, Musk has co-founded Space X and a tunnelling start-up – the aptly named Boring Company – and is reportedly worth $219bn (£184bn).

Are you tempted to go back to work after retiring?

As the government looks to get the economy firing on all cylinders, Chancellor Jeremy Hunt has been looking at fixing what he described recently as the UK’s “productivity puzzle”.

What is the state pension triple lock?

The Chancellor’s decision to protect the state pension triple lock was one of the most headline-grabbing aspects of the recent Budget. But what exactly is the triple lock and what does it mean?

Could we see a Retail Recovery?

As we all know, interest rates have been steadily rising this year. Higher interest rates equal higher mortgage rates, which means less money for householders to spend. Then came the Autumn Statement. Tax thresholds frozen equals more to pay in taxes equals less to spend in the shops.

Set financial new year’s resolutions for 2023

The new year is almost upon us and we’ll all be setting our resolutions for the next 12 months. Perhaps you want to improve your diet, quit smoking, learn a new skill or hobby, or pick up an old hobby that you’ve let slide over the years. But have you thought about improving your financial habits too?

What is open banking?

It’s a term we’ve heard a lot recently, so let’s take a close look at what open banking actually is, and how many people know about it. Open banking means allowing third-party financial services providers, such as budgeting apps, to access a person’s banking information, like their payment history and previous transactions.

How did Germany end its reliance on Russian energy?

Many readers will remember the disaster at Japan’s Fukushima nuclear plant in March 2011. This was a trigger for Germany to significantly scale back its commitment to nuclear power, with eight reactors permanently shut down in August of that year. At the time, it didn’t seem to be a problem: the gas and oil were flowing from Russia and powering the German economy – widely accepted as the engine which drove the rest of Europe.

January Market Commentary

As 2022 drew to a close, there was a mixed picture worldwide as major economies sought to respond to soaring energy prices, rising living costs and the continuing impact of Russia’s invasion of Ukraine. In our first round-up of the year, we look at where we left off in 2022 all across the world…

Can I get tax relief on pension contributions?

If you’re paying into a pension scheme, you can get tax relief on your contributions, with money that would otherwise be paid in tax going into your pension pot instead.

Why it’s good to talk about money this Christmas

With inflation at its highest level in more than 40 years, and energy and grocery bills continuing to head upwards, many are feeling the pinch – but perhaps even more so now that Christmas is fast approaching. According to a recent poll by PayPal, 58 per cent of Brits are anxious about the cost of living crisis, and 44 per cent are worried about financial pressure over the festive period.

Could professional financial advice help you through the cost of living crisis?

With soaring inflation and rising interest rates, many people are feeling justifiably anxious about making ends meet. That’s partly because the key triggers of the cost of living crisis are beyond our control – so it’s easy to start feeling completely helpless. But there is something you can do – speaking to a regulated, professional financial adviser.

Are you saving enough money?

How much money do you have in your savings account? How long would your head stay above water if you lost your main source of income? These are important questions, particularly as the cost of living crisis bites, but several new studies have revealed that many people have a worryingly small amount of money saved up.

December Market Commentary

War? Soaring energy and food prices? Covid surging in China and people taking to the streets in protest? Worries about a prolonged recession here in the UK? In November, there was plenty for world stock markets to worry about – but, as we will see below, the markets largely shrugged aside the concerns, with some making significant gains. The problems that we have written about for virtually all of this year didn’t go away – but they didn’t get any worse either – and world stock markets seemed to breathe a collective sigh of relief.

The war in Ukraine: What happens next?

It is now more than eight months since the Russian tanks rolled across the Ukraine border in what Vladimir Putin continues to describe as a ‘special military operation’. Putin clearly expected the invasion to be over quickly – as, you suspect, most people in the West did. But eight months on, here we are. Ukraine is fighting back, recapturing territory that has been occupied and most experts now think the war will last well into next year. So what is likely to happen? And what does it mean for us here in the West?

What’s Going to Happen to House Prices in 2023?

The pandemic failed to halt the surge in house prices, and so far, soaring inflation hasn’t done so either. In fact, figures from Rightmove indicate there was a 0.9 per cent increase in average property values in October 2022, taking prices up to a record £371,158. But nevertheless, there are genuine fears among some that a big drop in the market …

How are interest rates and inflation linked?

The Bank of England’s aim is for the country to have low and stable inflation – and it works to a target of two per cent. Changing interest rates are the Bank of England’s mechanism for achieving its inflation target, and in the current climate of high inflation, it believes raising rates is the right approach. Otherwise, it maintains, the problem …

Is Equity Release a Good Idea?

Early last month, City AM had a dramatic headline: ‘Cash-strapped homeowners turn their properties into personal cash machines.’ They reported that equity release was ‘booming’, with homeowners releasing a total of £4.8bn from their homes in 2021. Ten years previously, the amount released was just £790m with only two years out of the ten – …

November Market Commentary

Introduction Where did we leave the soap opera that is British politics? At the end of September, Liz Truss was the Prime Minister, and Kwasi Kwarteng was her Chancellor. As we reported last month, Kwarteng presented his ‘fiscal statement’ on Friday 23rd September. Three weeks later, he was gone and Liz Truss had to endure the most public of humiliations …

What are gilts?

The recent Mini Budget, a £45 billion tax cutting package, paid for by increased public borrowing, led to panic among many investors and a run on Britain’s pension funds. As a result, the Bank of England was forced to step in to stop a collapse by pledging to buy around £65 billion of long-dated gilts. But what exactly are gilts and why do they …

What is ‘Trickle-down’ economics?

All our clients reading this will be aware of the fallout from new Chancellor Kwasi Kwarteng’s recent ‘fiscal event,’ delivered on the morning of September 23rd. The 45p rate of tax was abolished, the planned increase in Corporation Tax quickly followed and National Insurance hikes were reversed. The right-wing think tanks loved it: Nigel Farage …

Are we seeing a new boom in ‘Buy Now, Pay Later?’

Many of our older clients will remember Access and Barclaycard, the first credit cards in the UK. Access was launched by Lloyds, NatWest and Midland Bank (now HSBC) in October 1972. It was marketed as ‘your flexible friend’ – and had another advertising slogan as well: Access ‘takes the waiting out of wanting.’ Credit, tick, the never-never…

Get control of your old pensions

Very few of us have a job for life these days, with many of us moving through numerous roles and businesses as our careers progress. That means you’ll probably have several workplace pensions throughout your working life, and as time passes, it can be easy to lose track of them. You might have moved house since leaving a previous job, and your pension …

How does the falling pound affect me?

The pound went into freefall after Chancellor Kwasi Kwarteng’s Mini Budge, with news of a raft of tax cuts at a time of soaring inflation and rising interest rates sending chills through the markets. For many, talk of financial markets, exchange rates and the value of the currency can seem very remote and abstract. But these things have a big impact …

October Market Commentary

Introduction Speaking to journalists at a lobby briefing in 1964 – when the sterling crisis was raging – Prime Minister Harold Wilson famously said “a week is a long time in politics”. What, then, is a month? Especially a month like September 2022 when enough happened to fill a year’s worth of Bulletins. In the UK, the beginning of the month …