As the old saying goes, if a job’s worth doing, it’s worth doing well. This is why companies look to find the best candidates for any given position, be it entry-level or senior management and also why they look to hold on to good workers. Obviously there is a monetary element to worker retention, but there are other ways to increase the odds of your staff staying with you. One of these elements is the aspect of health and happiness in the workplace. Ill health can force early retirement Recent research by the TUC showed that ill health forces up to 12% of workers to retire up to 5 years before their planned retirement date. The research highlighted the potential challenges involved in raising the state retirement age in response to extended life-spans. In simple terms, we may be living longer but that does not necessarily mean that we are able to go on working for longer. Whether or not it is feasible for any given individual to go on working into their late 60s and 70s depends on a number of factors. Some of these involve circumstances beyond an employer’s control, such as their family-health history, but others can be influenced by the workplace. Employers will already be aware of health-and-safety legislation and their legal obligation to keep their employees from being unreasonably exposed to harm at work, but there are many more steps employers of all sizes can take to promote healthy living on the part of their employees. This cannot only help them to make the most of older people in the workplace, but can also help to reduce disruptive absences due to sickness. Appreciate ergonomics and use them wherever possible Repetitive strain injury is a risk in any occupation where people repeatedly undertake a habitual action. In these days it is often associated with office workers using keyboards and mice, but it actually occurs across a variety of occupations “housemaid’s knee”, and “tennis-player’s elbow” are examples of this, even card dealers can get RSI from the recurring actions involved in dealing cards. Take a look at what your company does and how it does it to help to avoid these kinds of injuries. The growing-bigger problem It’s unlikely to come as a surprise to anyone that people in the UK are growing bigger and it’s not necessarily healthy. While the fundamental reason for this is that people are consuming more calories than they need for their lifestyle, the reasons why this is the case may vary. Employees may not know about healthy eating, in which case fun, work-place based events to educate them may make a difference. Alternatively, it may be an issue with time pressure, in which case there may be steps you as an employer can take to help them and thereby to help yourself. For example, you may find you need to wean people off a culture of working through lunch and into one of taking a break to eat properly and rest their minds. You may also need to encourage people to leave at the end of a standard work day, instead of working extensive overtime on a regular basis (even if it is paid). This may mean taking on more staff or outsourcing work to agencies or freelancers or automating it. The cost of this needs to be seen in the context of avoiding losing an employee and having to go through the recruitment process again, with all the disruption that can cause. Exercise is about more than just weight Possibly the most obvious reason for exercising is that it helps people to keep their weight down, but it can have other benefits too, for example team or club sports can have a social element. Even when budget is too tight for subsidised gym membership or other perks, there may be ways you can help. For example you could participate in the government’s cycle-to-work scheme.

There are winners and losers in every change and this also holds true for changing currency values. In the most basic terms, a weak pound means that you need more pounds to buy other currencies and less of another currency to buy pounds. An effect of this is that in practical terms, it costs more to buy in goods from overseas and less for people overseas to buy goods from the UK. As with many aspects of life, however, in the real world the situation can be a bit more complicated. Let’s take a look at how a lower pound can impact the high street in ways which may be less than obvious. House prices and the high street The UK housing market is core fodder for the press and can easily make headlines in the main body of popular newspapers rather than simply being relegated to the financial section. The weakness of the pound is almost guaranteed to have an impact on the housing market, although precisely what that overall impact will be is still unclear. The lower cost of doing business in the UK may attract international buyers and investors, but it may also make life more challenging for those looking to move abroad, who need to be able to finance a property purchase there. It may also influence how many international construction workers and tradespeople work in Britain. If house prices show signs of rising, then this may increase consumer optimism, but it may also mean that first-time buyers and those looking for bigger property may start to channel their disposable income into building up a deposit rather than using it for consumer spending. If house prices fall, it may drive some home owners into negative equity, for which they may try to compensate (or be obliged to compensate); thereby reducing the income they have available for consumer spending. On the plus side, however, lower house prices are great news for first-time buyers (and tend to be good news for those trading down), who could then use their disposable income on house-related consumer purchases (new appliances, furniture, décor etc.). Holiday prices and the high street Low fuel prices may be good news for the aviation industry, but a weak pound makes foreign holidays more expensive as it raises the effective price for everything from accommodation to food and entertainment. While the obvious candidates to feel the pain of this are travel-related companies such as travel agents and airlines, this could also have a trickle-down effect on other businesses. For example, holidays abroad can entail the purchase of new luggage, clothes and toiletries and may involve spending at airport stores. If foreign holidays become too expensive for the average consumer, they may choose to save their money instead, which could have a negative impact on the high street, alternatively they might choose to spend their money in other ways, in which case the high street might even benefit. Employment and the high street Employment is a major factor in whether or not people have disposable income to spend on the high street. A weak pound can make UK exports more attractive, although exporters will still have to account for the cost of buying in materials from overseas. A weak pound can also make the UK a more attractive prospect for investors when compared to lower-wage economies. At the same time, it can make imports more expensive and leave some retailers with a decision as to how much of the price increase they can absorb and how much they can, or want to pass on. If there is high employment, retailers may opt to absorb the price increases and compensate for the weak pound with higher demand. If, however, employment is weak, then retailers may have little choice but to pass the cost on to those who can still afford to pay it.

In principle, interest rates and inflation act a bit like a child’s see-saw. When interest rates go up, people are encouraged to save rather than spend. This reduces demand, which encourages suppliers to lower their prices, which results in lower inflation. When interest rates go down, the reverse happens. That, at least, is the general theory. Of course, in the real world, many other factors can come into play. For example, if there is a bad harvest, then the price of the affected crop is very likely to go up regardless of what happens with interest rates. Inflation and the economy While the idea of continually-increasing prices may seem like bad news, it’s actually fundamental to a healthy economy. In essence it acts as a “call-to-action” to consumers, preventing them from waiting for prices to drop further. An example of how this works in practice can be seen in the stock market. When a company is experiencing steady growth, consumers are happy to buy its shares in the expectation that they will see a return on their investment. When a company’s stock price begins to drop, existing investors may try to sell their shares to mitigate their own losses, while potential investors sit on the sidelines to see how far the price will drop. At its most extreme, this sort of behaviour can lead to the classic “boom and bust” cycle. Interest rates and asset prices Interest rates can influence asset prices, including house prices. When interest rates go down, the cost of borrowing typically becomes cheaper. Up until relatively recently, this had the potential consequence of allowing consumers to take out larger mortgages, meaning that they were able to buy more expensive properties. Hence lower interest rates had the potential to feed into the demand for property and therefore to increase house prices. In recent times, however, the mortgage market review has tightened up the mortgage-lending market. Specifically it has forced lenders to look very closely at the likelihood of borrowers being able to manage a mortgage over the long term. This includes considering factors such as the potential for higher interest rates and the potential for borrowers to experience a reduction in income (or even a temporary loss of income). In principle, this could mean that, going forward, the level of interest rates at any given moment has, at most, limited influence on the housing market. At this point, however, it is still rather early to draw definite conclusions about this. The Bank of England and the Monetary Policy Balancing Act One of the Bank of England’s responsibilities is to try to ensure that the UK experiences steady economic growth. Specifically, the Bank of England Monetary Policy Committee aims to ensure that the UK experiences continual inflation of exactly 2%, neither more nor less. Of course, even Olympic archers miss the absolute centre of the target some of the time and hence it is considered acceptable for inflation to be between 1% and 3%, if, however, it is any lower or higher than this, then the governor of the Bank of England has to write an open letter to the Chancellor of the Exchequer to explain why this has happened and what the Bank of England proposes to do about it. Over recent years, a sluggish economy has seen interest rates kept very low. Because of this, there is a case for arguing that, realistically, there is only one way for interest rates to go and that is up. While this may be true over the very long term, it is entirely possible that the Bank of England will hold fast to its current low-interest-rate policy until there are very clear and consistent signs of growth in the UK economy.

We hate to be the ones to say it, but now probably really is a good time to start watching your pennies in readiness for Christmas. We know it’s in December but for those who are paid monthly it’s 4 or 5 pay packets away (depending on exactly when you get paid). Looked at from that perspective, it makes sense to start saving now, even though (hopefully) it’ll be some time before the carols start playing. To help you get started, here are 6 really obvious ways to save money. Cull regular expenses you only use occasionally (or never). Gym memberships are the obvious example of this. While pay-as-you-go rates can work out more expensive for those who go to the gym several times a week, for those who go less often, they can actually work out cheaper, plus there are lots of other ways to exercise both indoors and outdoors, without the need to pay regular fees – even for those who live in shared accommodation and studios. Subscriptions are another category to check, magazines, online entertainment sites, food parcels, if you’re not getting full use out of them, then unsubscribe. Eat more home-cooked food Eating out can be fun, but meals out, take-aways and ready-meals all cost more than food prepared at home. Even buying ready-to-use ingredients such as jars of pasta sauce generally costs more than buying the ingredients and making them yourself. We appreciate that if you don’t like cooking it can be a chore to come in tired after work and then have to make yourself something for dinner and then prepare a packed lunch for the next day (or do it in the morning when you’d rather be in bed) but you can break yourself in gently. Even if you start by only cooking at the weekends, freezing a couple of portions and making one packed lunch for Monday, you’ll still be starting to save the pennies and as you get better at cooking and managing shopping, you may find you can do more than you thought. Learn to ignore food packaging and to look at ingredients instead Premium food brands with high-quality, attractive packaging may indeed be worth the extra money – or they may not. A look at the ingredients should give you a good idea as to whether or not the higher price is justified. For basic items you may well find that supermarket own brands and such like are every bit as good as their more expensive counterparts. Use up what you have before you buy the same or a similar item If you have a drawer full of T-shirts, you don’t actually need any more no matter how good they look or what a good price they are. If you’re a (paper) notebook lover and you already have a stack of them, you don’t need any more, even if they’re on special offer. Basically if you already have a stock of something, whatever it is, use it up first before you buy any more. Be suspicious of special offers Some special offers can be very good value, but some simply tempt us to spend money on items we would otherwise have ignored. It doesn’t matter how cheap something is or what a good discount it is, if you don’t really want it and won’t actually use it or are only using it because you’ve bought it, then it’s probably a waste of money. Learn to love pre-loved New may be nice but pre-loved can be much more prudent financially speaking. In particular, if you know you don’t actually need to very latest model of phone/tablet/other consumer electronics item, then you can potentially make meaningful savings by going for a refurbished “last generation” item.

At this point in time, the economy seems to be dominated by one word “Brexit”. While the whole country is waiting to see what exactly will happen when, it’s difficult to make any sort of predictions for the future, so instead we’re focussing on the present with our 10-minute guide to the economy. The housing market A mortgage is a long-term commitment and as such both the lender and the borrower need to feel confident that the latter will be able to keep up with the repayments over the long term. Jitters over potential job losses, particularly in the banking sector and fears that falling demand (due to reduced immigration and/or the repatriation of current immigrants) are unhelpful for the mortgage market and therefore unhelpful for the housing market. The financial sector For better or for worse the FIRE (Finance, Insurance and Real Estate) sector plays a key role in the UK economy. At the moment, it is an open question whether or not the financial services sector will hold on to its coveted passports, which enable them to sell their products and services throughout the entirety of the common market. It is also an open question as to whether or not they will continue to be able to process transactions in Euro from the UK. Some banks, such as Lloyds, have already announced job losses in the UK, although it is unclear whether or not this is directly (or even indirectly) connected to the issues surrounding the Brexit. Online banking and the move to digital payment methods (such as Visa, MasterCard and PayPal) has reduced the need for customers to visit branches, while demographic movements can see formerly busy branches losing customers to other locations. The Bank of England (interest rates). The Bank of England has made it clear that it will do everything it can to keep the good ship UK PLC on a steady course, even if it is through uncharted waters. The BoE essentially has two key weapons at its disposal, the option of making low-priced (or even free) credit available to banks (which, in theory should be passed on to businesses and other consumers) and interest rates. Its challenge is to provide enough stimulus to keep the economy moving without providing so much that investors get nervous about the state of the UK economy, which could lead to the UK having its credit rating downgraded, thereby making it more expensive for the UK itself to service debt. At the moment, the BoE is essentially feeling its way through a new situation along with everyone else and only time will tell how well it will manage its task. The retail sector The big news in the retail sector has arguably been the demise of BHS, however given the history behind that company’s woes it would be very difficult to pin this on Brexit. Likewise Marks and Spencer’s clothing arm saw dismal sales in the first quarter of 2016, prior to the result of the referendum and it remains to be seen how well Marks and Spencer will address the issues which led to this. The issue facing the retail sector is, of course, that it relies on consumers spending money, which means that it relies on consumers having money to spend. If consumers are uncertain about their job prospects, then it is entirely possible that they will rein in their spending, which, of course, hits retailers who specialise (or generate significant income) from discretionary purchases. For this reason, any weakness in the pound is bad news for companies which rely on imported goods (or on imported materials to make goods at home) as this increases the effective price, which means that vendors have a choice between cutting into their own margins (if they have room to do so) or passing the cost onto consumers and accepting that this may make them less attractive.

Although it may not seem like it at first, interest rates really are interesting. High rates are great news for savers but bad news for borrowers and vice versa. Regardless of whether you’re a saver or a borrower, it’s important to understand 4 key points about interest rates. For savers interest rates are in a race against inflation Life is often a balancing act between conflicting goals and possibilities. In financial terms, this generally boils down to risk versus reward and/or cost versus benefit. Higher-risk investments can offer the possibility of great returns but, pretty much by definition, there is also the possibility of losing your initial investment. Cash savings can be viewed as safe in the sense that there is a relatively low risk of the saver losing their deposit, but if inflation (the cost of living) outpaces interest rates (the return on investment), savers can find their nest egg losing its value in real terms. This can be particularly challenging for older people on fixed incomes (pensioners) who do not necessarily have the long-term investment horizon of the younger generation but who do have a need for a reliable source of income to maintain themselves. The interest rates available to consumers may be completely different to central-bank rates About once a month, the press reports on the activities of the Monetary Policy Committee of the Bank of England, which sets the Bank of England’s interest rates. These are the rates charged (or paid) to banks which borrow from or deposit with the Bank of England. These rates may then feed through into consumer products such as savings accounts, mortgages and credit cards, some of which track this base rate. Some products, however, are fixed-rate and hence are unaffected any changes to the interest rates set by the Bank of England for the life of the fixed-rate deal. The key point to understand is that the interest rates offered to consumers are influenced by a number of factors as well as the base rate. Some of these are generic, such as what the banks think of the economy in general. Some, however, are specific to each individual, such as their credit history. Then, of course, there is the simple fact that banks need to pay their own bills and make a profit for their shareholders. The same product can have different interest rates, applied in different ways Credit cards in particular can charge different interest rates for purchases and cash advances (this is in addition to any fees they charge on cash withdrawals). In addition to this, the interest levied on purchases may be applied after a grace period, whereas the interest levied on cash withdrawals may be applied straight away, even if it is only actually charged when the monthly statement is created. If you would like to check this then it should be make clear in your terms and conditions, although you may find it easier just to send a message to your lender’s customer-service team to put the question to them directly. Interest can be simple or compound With simple interest, the interest payments are calculated purely on the basis of the initial sum deposited or lent. So, for example, if you deposit £100 then the interest you receive will always be based on that initial £100. With compound interest, however, interest is calculated on a rolling basis. Hence for example, if, after the first year you had received a total of £10 in interest payments, your next year’s interest payment would be calculated on the whole £110 rather than just the £100 you initially deposited. This is great news for savers but, of course, terrible news for borrowers and is part of the reason why those who take out high-interest credit can wind up paying more in interest than they borrowed to begin with.

It was the result which took the bookmakers by surprise. Maybe it would have been different if the weather had been dry and sunny in the South East of England. Since you can’t run history twice, we’ll never know. What we do know is that the UK as a whole voted to leave the EU, so let’s look at what that means in practical terms for those seeking to take care of their finances. Impact on the Pound The pound dropped in the run up to the referendum, but began to climb again as polls indicated that the Remain camp had secured a significant lead. Notwithstanding this, the news carried stories of panicked travellers queuing to secure their holiday funds before a potential Brexit saw a drop in the value of the pound. Brexit is now confirmed and it is only to be expected that, in the short term at least, it will have an impact in the value of the pound. A drop in the value of the pound is, of course, bad news for holidaymakers (and the companies which serve them) and it’s bad news for those who depend on imports. On the other hand, it makes the UK a cheaper holiday destination for people from overseas and it’s great news for exporters. Impact on Business as a Whole Obviously any impact to the pound could have a knock on impact to UK-based companies. Those that benefit from a strong pound could be hurt by a fall, whereas those who aim to attract custom from overseas could benefit from it. Access to the EU’s single market is a more interesting issue. The Remain campaign touted it as one of the major benefits of membership. The Leave campaign, however, pointed out that trade is (or should be) a two-way street and that countries which set up trade barriers against UK exports can expect to have their own exports treated the same way. How this works out in practice remains to be seen. It also remains to be seen what impact this will have on the highly-controversial TTIP(The Transatlantic Trade and Investment Partnership). In the short term, it is highly likely that there will be a drop (or at least volatility) in the stock market; this could open up a window of opportunity for investors to find bargains amongst companies with solid fundamentals, which have simply been caught up in economic turbulence. Impact on the Financial-Services Sector At the moment UK financial institutions can operate across the EU under one licence (or passport), whether or not they retain this ability depends on a number of factors. If the UK moves, more-or-less seamlessly into the EEA/EFTA then it could feasibly be business as usual. If not then the UK would have to negotiate specific agreements with its former EU partners. Given the strength of the UK’s financial-services sector and the fact that European rivals would presumably love the opportunity to take over business from them, then this might prove trickier than negotiating trade agreements. Impact on the Housing Market If the UK’s population drops then it seems a reasonable assumption that the demand for housing (to buy or to rent) will also drop and since prices in a free-market economy are a function of supply and demand, it therefore follows that prices for accommodation will also drop. As is so often the case in life, there are winners and losers in this situation. While sellers and landlords may regret the reduced demand, the plight of “generation rent” and “would-be first-time buyers” has been a constant source of news topics and any fall in house prices (or rental prices) would presumably be welcomed by them. As with all changes, it makes sense to not make rash decisions based on yesterday’s vote but to take a view on what’s happening and keep an open mind. There will be initial fallout – for instance the drop in the pound but over the next few weeks the dust will clear and ways to move forward will become clear.

On 23rd June, the UK will go to the polls to decide whether or not to remain as part of the EU. At this time the end result would appear to be anybody’s guess. If there is a Brexit, what impact could it have on commercial property investment? Demand might be severely impacted Immigration is undoubtedly one of the hot topics in the Brexit debate. On the one hand there are a number of EU immigrants currently living in the UK, who could potentially (but not definitely) find themselves being required to leave if the UK chooses to exit the EU. On the other hand there are a number of UK nationals living in the EU, who could potentially (but not definitely) be obliged to return home if the UK chooses to exit the EU. From a property-investment perspective, the worst-case scenario would be the EU immigrants being forced to leave without the UK nationals being obliged to return. While this would seem unlikely on the face of it, it could not be completely ruled out since many of the UK nationals living abroad are retirees, who are not competing in the local job market. There could be a flood of property on the market If EU immigrants are obliged to leave the UK then those who are housed in rental property will need to terminate their rental contracts. EU immigrants who are owner-occupiers may choose to sell their property or they may choose to hold onto it and become landlords themselves. This, in and of itself, may not necessarily be bad news. A short-term glut of supply could become a buying opportunity, although it’s always worth remembering that there is a difference between low-priced and a bargain. Investors always need to be looking for quality property with the right features rather than just grabbing properties which are “priced to sell”. There could be a shock to lending Mortgage lending is at the core of the housing market and even those who have sufficient funds to operate purely out of their own funds can find themselves being affected by it. In simple terms, the more relaxed lenders feel, the more likely it is that there will be competition for the best properties since it will be easier for people to buy them with the help of mortgages. Conversely the more anxious lenders feel, the easier it is for cash buyers to build their own portfolios without competition from people who need mortgages. Also, when it is difficult to get a mortgage, people are more likely to rent, if only because they are unable to buy, which creates further demand for rental property. A Brexit could trigger a second independence referendum in Scotland During the independence referendum in 2014, much was made of the fact that an independent Scotland could not consider itself guaranteed membership of the EU. While it is unclear what impact (if any) this ultimately had on people’s voting choices, however many pro-independence commentators in Scotland have argued that it was such an important plank of the “No” campaign that a vote for Brexit should trigger a second referendum in Scotland, particularly if the majority of the people in Scotland vote to remain in the EU, but are, effectively, over-ruled since England has a much more substantial population. This could raise a whole new set of questions relating to a potential new relationship between Scotland and England, which, as a minimum, could create uncertainty in the property market, at least in the short term. As always, however, it’s important to remember that property investment is a long-term game and issues which create short-term volatility or other challenges are generally resolved over time.

The reality of the potential Brexit is that nobody can know what it will mean in practice until it happens (if it happens). In some ways, the result of the referendum may have very little result on financial planning. Regardless of whether or not the result of the vote is to leave or to stay, mortgages will still need to be paid, retirement savings organised and healthcare managed. There are, however, some, perhaps unexpected, ways in which a Brexit could impact your finances, particularly if you travel in Europe. These issues may make little to no difference in terms of the overall economic debate since many of the issues raised will apply equally to people from the EU travelling to or otherwise working with the UK, but they may impact on the finances of particular individuals. 1 - Payment for visas At the moment the EU is technically a superstate without borders. If there is a Brexit then countries may require UK citizens to have visas to pass through their borders. Of course, these visas may be issued for free or for a nominal charge, however UK citizens would still need to be aware of the requirements for them and the need to check for them might impact on transport arrangements, e.g. the requirement to arrive at international train stations in time for checks to be undertaken. 2 – Roaming charges for mobiles/tablets In a similar vein to borderless travel, the EU has regulated charges for travellers who roamed between networks within its borders. This regulation applies to calls, texts and data and essentially aims to minimise the impact of moving across national borders. If the UK were to leave the EU then travellers could find themselves in the same situation as when travelling outside the EU at the moment. 3 – Increased cost for goods from the EU/delivering goods to the EU The EU is a free-trade area, which means that individuals and businesses can send goods (and services) across intra-regional borders without any customs duties being paid. If the UK leaves this free-trade zone then the buying and selling of goods across national borders may become subject to customs charges. In addition to the fees themselves, this may cause the shipment of physical goods to take longer and become more burdensome to the sender and/or recipient, as they may need to manage customs declarations. There may also be the complication of dealing with different sets of legal systems, rather than having one set of pan-EU rules, which, again, may add to costs. 4 – Increased cost for travel insurance At this point, travellers within the EU can access local healthcare services on the same basis as local residents. All that is required for this is an EHIC card (European Health Insurance Card). This reduces the potential liability for travel insurance companies. Again, if the UK withdraws from the EU, it may cease to be possible for travellers to make use of this system which could have an impact on the cost of travel insurance. 5 – Increased cost for using payment cards within the EU Financial institutions which issue payment cards such as Visa and Mastercard, set their own fees and charges, which reflect the costs they pay themselves. At the moment, even though the UK is outside of the Eurozone, it is part of the EU itself and therefore banking and other financial services work on the same free-market basis as other goods and services. In the event of a Brexit, this may mean increased costs for UK financial institutions when they do business in the EU, including when their payment card holders use their cards in EU countries and this may result in higher charges for using cards overseas.

Budget 2016 is now upon us and we can finally see the main budgetary issues for the year ahead. Here are the key points which could affect personal finances. 1 – A New Sugar Tax “Sin” taxes are nothing new with taxes on alcohol and cigarettes having been in place for years. The latest food item to go on the tax “naughty list” is sugary drinks. To be introduced in about two years, there will be two bands depending on the level of sugar in the drink. In England and Wales, the money raised will be used to provide increased funding for sport at primary-school level. The devolved governments in Scotland and NI will decide themselves how the funds raised in their respective jurisdictions will be spent. 2 – Smokers Also Feel the Pinch With a 2% increase on the price of cigarettes and 3% on the price of rolling tobacco, smoking has just become an even more expensive habit. Alcohol however escapes tax increases with freezes across the board on the duty payable on beer, wine and spirits. While the purported aim of this freeze is to help pubs, those who like a tipple of any sort. 3 - Fuel Duty Stays Frozen It has been several years since fuel duty was last raised and so the continuation of the freeze was hardly a surprise. While the biggest beneficiaries are, of course, the heaviest users of fuel, such as transport companies, fuel costs feed into the everyday expenses of people in the street too. Leaving aside the cost of motoring, fuel costs affect how much it costs to transport staple items such as food from A to B and therefore how much is costs in shops. 4 – Sharing Just Got More Attractive There are now two separate allowances (of £1K each) for micropreneurs engaged in trading and/or earning income from property, meaning that individuals could potentially make up to £2K tax-free income from occasional activities such as trading on eBay or letting out driveway space. Of course, these activities would still be subject to all relevant regulations and any local-authority restrictions. It should be noted that the definition of trading is essentially the provision of goods or services, which extends beyond simply running an online micro-business. It could, for example, feasibly cover more traditional business types such as hostess parties and other forms of direct sales. It could also make it possible for those with hobbies to earn some income from their handiwork, e.g. by opening up an etsy shop. 5 – Class 2 NICS Are Mixed At current time, the self-employed are required to pay Class 2 NICS on profits of £5,965 or over and Class 4 NICS on profits of £8,060 or over. As of April 2018, Class 2 NICS will be abolished and Class 4 NICS will be reformed, although the shape of the reform has yet to be made public. This again could be of assistance to those who have an “extra” or “side” income such as those who have a self-employed job in addition to a main job or those who only earn a small amount e.g. by working a small business alongside childcare commitments. 6 – A Premium Tax on Insurers Whether or not this is good news may depend largely on where you live. A premium tax on insurance companies will be used to pay for new flood defences and the improvement of existing ones in England. If insurance companies choose to pass on this cost to customers in the form of higher premiums, then those outside of flood-prone areas will essentially find themselves paying higher insurance costs to protect those in higher-risk areas.

A relevant life plan is an in case of death in service insurance scheme for an employee paid for by the employer.  It is designed to pay out a lump sum should the employee die or be diagnosed with a terminal illness. Should a small business be looking for new high level staff it can be offered as part of a benefits package. It is best suited to Directors wishing to provide their own individual ‘death in service’ benefits without having to take out a scheme for all employees and high-earning employees who’s ‘death in service’ does not form part of their ‘lifetime allowance’ (£1.25 million 2014/15) This scheme is not suited to sole traders or where this is no employee-employer relationship. Tax Benefits The policy has tax benefits for both sides:- Employer benefits: corporation tax relief (so long as the premiums are wholly and exclusively for the purposes of the business); and no National Insurance contributions to pay on the policy payments paid to fund the Relevant Life policy.Employee benefits: no National Insurance contributions to pay on the policy payments paid to fund the Relevant Life policy; the policy payments won’t be taxed as a benefit in kind; and policy payments and benefits don’t count towards annual or lifetime pension allowances.(source https://www.aegon.co.uk/advisers/protection/relevant-life.html) Rules There are a number of rules to qualify as a single person relevant life policy. The policy must only provide a lump sum benefit on death payable before the age of 75. The plan must solely pay out on death and have no serious or critical illness cover included. The plan must not have a surrender value. Any benefit payable from the policy must only be payable to an individual or a charity. The main purpose of the relevant life policy should not be for the avoidance of tax. How much cover can you have? The sum assured with a relevant life policy is similar to that of a death in service package and it is also based on a multiple of reimbursement. For a company director the definition of remuneration is based on salary plus dividends plus bonuses etc. These multiples can vary from provider to provider and depend on the age of the director being insured. Trustees The Relevant Life policy requires the employer to provide a trust for the benefit of the employee’s family. This will help to complete all legal requirements for a Relevant Life policy and also in most cases, it should help to alleviate inheritance tax. How to Get Insured You can obtain a relevant life policy from most UK insurers, however there is no set premium or cover. All things will be taken into consideration such as your occupation, general health and the lifestyle that you lead and these may affect how much an insurer will charge and the terms of the policy. It makes a lot of sense to seek specialist advice when considering relevant life insurance.. An advisor will be able to recommend the best value cover for your specific circumstances and go through the savings you can make when compared to personal cover.

According to the latest research under-40s could face a 148% rise in the cost of retirement living, over-45s also need to be prepared for financial shocks that could change their retirement plans. monthly retirement spending to rise from £1,183 to £2,930 by 2050 (For pensioners who do not rely on state pension) 42% of over-45s have not planned for financial set-backs in retirement Research by Royal London has revealed that today’s 35 year-olds need to have saved at least £666,000 by age 65 in order to secure the same standard of living as today’s pensioners. This is indeed a wake up call created by estimates predicting a 148% increase in retirement living costs by 2050. The research also found that today’s 30-40 year-olds have an average pension pot of £14,000. This represents a significant shortfall on the monthly income that will just cover the basic £1,715 cost of ‘essentials’ (such as transport, housing, food and energy) in 2050. But it’s not all bad news... Despite the above, there is good news, as the research also suggests the younger generation are no worse at planning for their future than those entering retirement today. It states that, 67% of 18-40 year-olds asked said they were saving for retirement (only slightly lower than the 68% of 65-75 year-olds who said they have a pension in place). The younger age group also displayed an awareness of the likely shortfall they could face at retirement, unless they up their pension savings. 57% of those in their 30s, and 51% of those aged 18-29, said they expect to work part-time after they ‘retire’ to supplement their retirement income, while 40% of under-40s predicted that the state pension will be a thing of the past by 2050. ‘Exposed generation’ risks retirement shocks Many current pension savers over 45 could be facing unexpected news in retirement as they too are underprepared. The most commonly-cited potential retirement ‘shocks’ among the over-45s included: Unexpected healthcare costs High inflation rates A stock market crash Falling house prices ‘Bailing out’ children When asked, it became clear that far from being oblivious to the risks 85% of those questioned were indeed worried about increased risks to their retirement dreams in the wake of this year’s pensions reforms. So what can you do about it? You can’t predict the future – but you can prepare for the unexpected. By building a personalised financial plan, and reviewing it regularly, you can take control of your future and give yourself a better chance of enjoying a happy and prosperous retirement that is able to withstand unexpected surprises.