New year, new strategy.

The new year marks the start of new beginnings, so there’s no better time to revisit your personal financial strategy. Drawing up an economic plan with clear, achievable goals can improve your long-term financial health and help protect you and your family against external factors.

Whether you’re putting a personal financial plan together for the first time or you want to revisit your strategy, here are a few personal financial planning tips to help you secure your financial future in 2024.
How to approach your personal financial strategy

Look at your current financial situation
Before embarking on your personal financial planning journey, you’ll need to conduct a thorough analysis of your present situation. The better you understand your circumstances, the easier it will be to plan and budget accordingly.

Working out your net worth or pinning down the value of your assets and liabilities can be a little more challenging for those with more complex financial affairs – for example, if you’re a shareholder in a business or own a large investment portfolio.

In this instance, you may need to consult with a professional adviser to gain an accurate understanding of your financial circumstances.

Using cloud accounting software to track your spending can also make it quicker and easier to conduct a financial health check.

Are your books in order?
Staying on top of your books is vital if you want to understand your finances. By keeping detailed, accurate and up-to-date financial information on file, you’ll find it easier to see where your money is going and what you should focus on in the future.

Set your goals for 2024
Once you know where you stand financially, you can start plotting out the year ahead. Establishing clear and achievable financial goals is crucial for guiding your efforts throughout the year.

Perhaps you want to pay off debt, invest in property, put money aside for your children’s education or build up a rainy day fund. Whatever your ambitions, setting measurable, time-bound objectives can make it easier for you to stay on the road to financial success.

Your budget
A crucial piece of the goal-setting puzzle is your personal budget. Your budget should align with your current circumstances and financial goals. Think about what you’re spending at the moment, how much you’re earning and how much money you need to save to meet your goals.

If you want everything to go to plan, you’ll need to create a realistic personal budget that aligns with both your current circumstances and financial goals. Look at your past financial data to understand how you usually spend money and identify areas to cut down on.

Your tax strategy
Your tax strategy is an important part of your financial plan. By minimising your total liabilities, you can retain more of your hard-earned income to meet your personal goals.

Work with an accountant to devise a tax-efficient plan that ensures you pay the right amount of tax – no more, no less. In the short term, this could include maximising reliefs on your self-assessment tax returns or timing the sale of property correctly to defer your capital gains tax payments.

More long-term tax strategies could include setting up a trust to protect assets or an estate plan that helps you pass your wealth onto the next generation.
Business owners
Entrepreneurs should consider the tax treatment of their business income. Since companies are often taxed at a lower rate than self-employed individuals, incorporating your business may help boost your personal income in certain circumstances.

If you’re the director of a limited company, for example, paying yourself a combination of salary and dividends can help you minimise your personal tax bill.

Your accountant can offer expert advice on these matters, ensuring that you structure your pay in the most tax-efficient way possible.

Important questions to ask yourself
Do you have an emergency fund?
Unforeseen circumstances can disrupt even the best-laid plans. If you fall on hard times, an emergency fund acts as a financial safety net.

The exact amount you’ll need to save will depend on your unique circumstances, but you should aim to put enough money aside to cover a few months’ worth of living expenses. If you can afford to build up a fund, this can save you a lot of stress in the long run.

Do you have any outstanding debt?
If you have any outstanding debts, addressing them should be a priority. The longer you leave bills unpaid, the more interest you’ll accrue.

To create a repayment strategy that will help you to pay off your existing debts, evaluate and organise them based on their urgency and interest rates.

Do you have enough income to achieve your goals?
Personal financial planning isn’t just about scrimping and saving; it’s also about ensuring you have the income you need to achieve your short-term and long-term goals.

In some cases, it may help to explore opportunities to boost your income, such as taking steps to grow your business or expand your investment portfolio.

Although no investment is entirely without risk, diversifying your income streams can help you boost your personal wealth while safeguarding you against financial pitfalls.
Getting your personal financial plan right
The best financial strategies evolve alongside your circumstances and goals. Regularly reviewing your plan ensures it stays relevant and protects your finances as much as possible.

However, constantly adjusting your strategy can be time-consuming and difficult to get right. If you want to get the most out of your plan, you should consider working with finance professionals.

As accountants, we can use our expertise to draw up a cost-effective strategy that helps you achieve your goals and strengthens your personal finances. We can also offer specialist personal tax advice on how to minimise your tax bill so you can retain more of your hard-earned income.

If your circumstances change or new legislation affects your strategy, we’ll help adjust your budget and tax plan accordingly to give you the best chance of success.

With our expertise by your side, you’ll be able to navigate 2024 with confidence and build a stronger, more secure financial future.

Get in touch to discuss your personal financial strategy for 2024.

HMRC has published the latest advisory fuel rates (AFR) for company car users, which applies from the 1st December 2023.

The rates for some petrol engines and all vehicles with diesel engines increased by 1p per mile.

Meanwhile, LPG engine rates for 2000cc plus vehicles fell by 1p, while the advisory electricity rate (AER) for fully electric cars dropped from 10p to 9p per mile.

According to HMRC, hybrid cars will be treated as either petrol or diesel cars for AFR purposes.

The AFR for December 2023 to February 2024 are as follows:

Advisory fuel only mileage rates
Rates per mile
Engine size Petrol LPG
1400cc or smaller 14p 10p
1401cc to 2000cc 16p 12p
Over 2000cc 26p 18p

Engine size Diesel
1600cc or smaller 13pv
1601cc to 2000cc 15p
Over 2000cc 20p

The previous rates, effective September 2023, can be used for up to one month from the date the new rates apply.

These rates are only applicable to employees using company cars to either reimburse them for business travel or when an employee needs to repay the cost of fuel used for private travel. Employers must not use these rates in any other circumstances.

The AFR and AER will be updated again on 1 March 2024.

Contact us about employee benefits-in-kind.

HMRC has announced a major shift in tax procedures, exempting high earners with PAYE income exceeding £150,000 from self-assessment tax returns starting in the 2024/25 tax year.

This change, following the recent threshold increase from £100,000 to £150,000 for 2023/24, is expected to benefit approximately 338,000 taxpayers.

While this move appears to streamline the process, caution is advised. Individuals with additional income, such as dividends, savings interest or rental income, are still obligated to file self-assessment returns.

Furthermore, the Association of Taxation Technicians (ATT) has raised concerns about the reduction in tax returns, potentially increasing penalties and straining HMRC’s customer service.

Jon Stride, vice chair of the ATT technical steering group, said:

“From April, if you have dividend income of more than £500, you will have tax to pay on that income if you’re an employee earning more than the personal allowance.

“Holding a few shares here and there is not unusual, and dividend information is not readily available to HMRC, so taxpayers will need to remember to contact HMRC to declare this type of additional income and arrange to pay tax on it.”

Stride also warned:

“In a time of high interest rates, plenty of employees could find themselves with tax to pay on their savings. At current interest rates, savings of £10,000 which aren’t held in an ISA could easily give rise to a tax liability for a higher rate taxpayer.”

Changes to the dividend allowance also open up risks of tax liability.

ATT said that reducing tax returns would not benefit HMRC, and if anything, it would put more pressure on HMRC’s already stretched customer service staff.

Amend your PAYE codes
PAYE codes can be amended to ensure tax codes are correct, but this requires interaction with HMRC, defeating the goal of reducing calls to HMRC.

Stride voiced concern at the lack of consultation:

“As was the case with the rule change on self-assessment announced in June, there was no consultation of these proposals. We worry the changes may have been introduced primarily as a cost-saving measure without consideration of the wider impacts.”

Talk to us about these changes.

All you need to know to make the right choice.

Running a successful business entails astute financial management, and at the core of this is the crucial decision of how to handle your accounting needs.
Should you bring a full-time, in-house accountant into the fold, or does the more flexible route of outsourcing better suit your business objectives?
In this in-depth exploration, we’ll dissect the pros and cons of each option, providing you with comprehensive insights to empower you in making an informed decision aligned with the unique goals of your business.
Navigating your accounting needs
In the contemporary business landscape, outsourcing financial services has become a prevalent strategy for organisations seeking enhanced efficiency and specialised expertise. Several key factors contribute to the higher rate of outsourcing in the financial sector:
Evolving business dynamics: The dynamic nature of the UK business environment has prompted businesses, particularly in the financial sector, to reassess their operational models. Outsourcing tasks like accounting and bookkeeping offers the flexibility needed to adapt to changing market conditions and regulatory landscapes.
Cost considerations: Cost efficiency remains a primary driver for the outsourcing trend in financial services. By engaging external service providers, organisations can control and reduce their operational costs, allowing for a more streamlined allocation of resources.
Access to specialised skills: Outsourcing financial services provides access to a diverse pool of specialised skills and expertise without the cost of hiring a full-time employee. External partners often bring a wealth of experience, industry-specific knowledge and an outside perspective, contributing to improved service quality.
Technological advancements: The rapid evolution of financial technologies, such as cloud-based accounting, has accelerated the outsourcing trend. Companies seek partners with advanced technological capabilities to stay competitive and leverage the latest innovations without incurring substantial internal development costs.
Regulatory compliance: Navigating the intricate landscape of financial regulations is a complex task. Outsourcing allows businesses to tap into the compliance expertise of external providers, ensuring adherence to evolving regulatory frameworks.
Increased focus on core competencies: By outsourcing financial services, organisations can redirect their focus towards their core competencies. This strategic shift enhances overall business performance as internal teams concentrate on key functions while leaving specialised tasks to external experts.
Outsourcing statistics for the UK show that around 70% of B2B companies outsource key tasks and processes to third parties in order to meet their goals. The most commonly outsourced skills for small businesses include accounting (37%), IT tasks (37%), digital marketing (34%), and human resources and development (28%).

This is largely due to the fact that small businesses often do not have the required skills and proficiency for important business processes such as accounting, which they choose to supplement with virtual and outsourced accounting services.

Other statistics show that up to 28% of companies outsource for payroll tax purposes.

While these figures show that outsourcing accounting tasks is on the rise, is that the right option for you? Let’s look at the advantages and disadvantages of both.

What are the pros and cons of hiring an in-house accountant?
Pros
• Immediate accessibility: A full-time, in-house accountant is readily available for real-time financial support and guidance.
• Deep understanding of business: Training an in-house accountant means they can develop an in-depth understanding of your business, tailoring their approach to your specific needs.
• Direct oversight: Direct supervision allows for tighter control over financial processes and ensures compliance.
• Customised solutions: An in-house accountant can craft bespoke solutions aligned with the intricacies of your business.
• Cultural integration: Seamless integration with the company culture.

Cons
• Less flexibility: Fixed salaries, benefits, and overheads for a dedicated finance professional can become especially burdensome during economic downturns.
• Limited specialisation: While an in-house accountant can build a comprehensive understanding of internal processes, they may lack specialist knowledge or experience in other areas.
• Dependency: Over-reliance on a single individual, posing risks during vacations, sick leave, or staff turnover.
• Recruitment challenges: Although you can tailor the recruitment process to fit your business needs, finding the right talent can be time-consuming, with potential mismatches.

What are the pros and cons of outsourcing accounting?
Pros
• Cost efficiency: Outsourcing allows businesses to pay for specific accounting services instead of a full-time salary, reducing fixed overheads.
• Access to expertise: Working with an outsourced accounting firm can give you access to a diverse talent pool and more specialised skills.
• Scalability: Flexible remote accounting services can scale with your business needs, ensuring you always get the right level of support.
• Focus on your area of expertise: Outsourcing your accounting responsibilities allows the in-house team to concentrate on core business activities and more high-level decision-making.
• Outside perspective: Experts outside of your organisation can provide a valuable outside perspective, helping you see the bigger financial picture more clearly.

Cons
• Communication challenges: While recent technological developments have made it easier than ever to collaborate with your outsourcing partners, communication is often more straightforward with in-house accounting teams.
• Less control: Outsourcing can reduce your workload, but also means relinquishing some control.
• Security concerns: If you outsource your accounting tasks, it’s vital to choose a firm that protects your sensitive data.
Choosing the right type of firm
If you decide to outsource and want to build a successful partnership, choosing the right accountancy firm is crucial.

To ensure a positive outsourcing experience, you should work with an accountancy firm that specialises in supporting businesses like yours.

The right firm will also maintain regular and transparent communication and seamlessly integrate its processes into your day-to-day business operations.

By opting for a tech-savvy firm that understands your business and keeps you updated, you can develop a collaborative and responsive partnership that goes beyond the traditional periodic touchpoints. That way, you’ll receive the support needed for your business to thrive.
Making the right choice
In the ever-changing landscape of the UK business environment, the choice between hiring an in-house accountant or outsourcing accounting services requires careful consideration.

Each option presents its own set of pros and cons, and the right choice depends on your business’s unique needs, financial situation, and long-term goals. Conducting a thorough analysis, considering immediate costs, long-term sustainability and adaptability is imperative.

Whether you opt for the stability of an in-house accountant or the flexibility of outsourcing, the key lies in aligning your accounting strategy with the overarching financial health of your business. The flexibility, expertise and cost-effectiveness outsourcing offers make it the right fit for many modern businesses.

Don’t leave this choice to chance. Come straight to the source and speak to us.

In November, Prime Minister Rishi Sunak hosted a summit at Hampton Court to spotlight foreign firms’ plans to invest £29.5 billion in the UK, signalling confidence in the economy.

Despite recent setbacks like the cancellation of HS2, the attendance of global leaders at the summit and Nissan’s recent £2bn electric car investment in Sunderland highlight ongoing international interest in the UK.

In his Autumn Statement on 22 November, Chancellor Jeremy Hunt introduced several measures to stimulate domestic business investment amid lower growth forecasts. While the policies were met with some criticism, the OECD notes a rise in UK foreign direct investment to $14bn (£11bn) in 2022.

The summit focuses on the UK’s strengths in innovation, “thriving” universities and key sectors like clean energy and technology.

Notable attendees such as Jamie Dimon emphasised the Government’s commitment to growth and foreign direct investment. Ongoing discussions may confirm substantial commitments, including a £10bn investment from IFM Investors and Microsoft’s £2.5bn in AI infrastructure.

While the summit underscored the UK’s appeal, challenges persist, highlighting the need for ongoing efforts to enhance stability and business-friendly policies.

Commenting on the modest economic outlook for the UK, business and trade secretary Kemi Badenoch said the UK is dealing with “the same problems” as many countries around the world, noting the economy was “doing well despite significant headwinds”.

Talk to us about your business.

HMRC has rolled out a new initiative enabling taxpayers to voluntarily disclose unpaid tax on cryptoassets covering exchange tokens, non-fungible tokens, and utility tokens.

The tax authority has initiated contact with selected taxpayers engaged in cryptoasset transactions who may not have fulfilled their tax obligations.

Taxpayers must report transactions incurring capital gains during the 2022/23 or 2023/24 tax years via self-assessment returns or HMRC’s ‘real-time’ capital gains tax service.

To access the facility, users require a government gateway user ID and password, along with specific information for a comprehensive report submission.

Taxpayers must determine the number of years for which they need to declare unpaid tax, contingent on their past adherence to tax obligations regarding cryptoasset income or gains. The disclosure period could potentially span up to 20 years.

In light of these developments, HMRC advises those uncertain about disclosure to seek specialist advice. Further guidance on paying taxes for cryptoassets has been issued separately.

This disclosure facility launch aligns with the UK’s commitment to joining the Cryptoasset Reporting Framework (CARF). The CARF facilitates the automatic exchange of information on crypto exchanges among financial authorities.

Talk to us about your investments.

How will technology impact your business’s financial future?

Constant developments in technologies like AI and cloud accounting are changing the way we do business and manage our finances. It’s a rapidly advancing field that has already changed the way most businesses think about their processes. So what are the benefits of using technology in

business accounting?

Embracing technology can empower you to move your business forward, whether you’re looking for innovative solutions to common accounting problems or you want to dive deeper into your financial reports. But if you want to make the most of tech, you need to know how to use it effectively.

With a wealth of information out there, cutting through the noise and finding exactly what you need can be hard. Having expertise from an accountant, like us, will make all the difference.

In this guide, we’ll discuss how you can use technology to boost productivity, streamline time-consuming processes and future-proof your business finances.

How can I use technology to strengthen my business finances?

Let’s take a look at some of the most common accounting challenges businesses face and how tech can help you overcome them.

The challenge: your clients are paying late

Cashflow is the lifeblood of any business. So if your clients don’t pay their invoices on time, this can have a knock-on effect on your business operations and overall financial health.

Last year, analysis from cloud accounting provider Xero showed that around half of the invoices issued by small businesses were paid late. Over one in ten (12%) of these invoices were still outstanding a month after they were first issued.

If you’re facing this problem in your business, you may struggle to pay your own bills. This can lead to strained relationships with suppliers – and you could even incur costly late-filing penalties from HMRC. So how can

tech help?

The solution: automated invoicing

While there’s no quick fix for late payment culture, using tools like automated invoicing can help minimise the impact on your business.

Automated invoicing allows businesses to schedule client invoices in advance at a specific date and time. This not only saves you time manually issuing invoices yourself, but also encourages prompt payment by getting invoices to your clients as early as possible, and chasing them for payment so you don’t have to.

Depending on your chosen cloud accounting platform, you can also set up automations to chase late-paying clients.

With more invoices paid on time, you’ll find it easier to manage your cashflow and stay on top of your business costs.

An alternative solution could be to set up a direct debit through an online payment processing provider and cut out the chasing time altogether.

The challenge: You spend too much time on accounting tasks

Good financial management calls for accurate, up-to-date business records — but staying on top of your books can be time-consuming. If you and your team spend hours on routine recordkeeping tasks, you may not have time to focus on bigger-picture strategies.

Entering your financial data doesn’t just take up a lot of time — it can also increase the risk of human error in

your accounts.

The solution: Track business transactions automatically

Instead of entering your transactions manually, you could link your business bank account with your accounting software. This allows your software to automatically download your bank transactions so you can easily track your income and expenses.

While this feature has been available on most platforms for some time, it’s still evolving. Thanks to recent developments in AI and machine learning, software can often categorise your business transactions automatically, winning back more time for you to spend on

your business.

Other software solutions can help to automate the record-keeping process by importing bills and receipts, automatically recording the description, tax rate and amount on digital or physical documents.

The challenge: You want to make better business decisions

Effective decision-making requires an in-depth understanding of your firm’s fiscal health. If you want to implement a solid business strategy, you’ll need to do much more than balance your books and meet your obligations.

The solution: Combine technology with accounting expertise

AI-powered accounting tools can take what they learn from your accounts to give you valuable insights about your business’s past, present and future. With technology analysing your real-time data, you can draw up forecasts, budgets and other financial statements to help you make well-informed business decisions.

However, computer-generated reports do have their constraints. Even the more sophisticated accounting tools don’t include external factors like current industry trends and economic conditions in their predictions.

To get a truly accurate picture of your business finances, you’ll need to harness the power of technology and expert accounting insight.

Most cloud accounting providers have an app store with solutions that plug into their software, so it’s easy to find a platform that integrates with the tools you’re already using.

How to make the most of technology

With technology advancing at such a rapid pace, it can be difficult to keep up. The business landscape has shifted significantly in the last few years alone, and it’s likely to change even more as we learn more about AI capabilities.

If you want to future-proof your business, you should embrace technology — but you also need to understand its limitations. As your accountants, we can help you use different financial management tools as effectively as possible.

Easy collaboration

Giving us access to your cloud accounting can make collaboration easier than ever. With us working on your real-time data at the same time, it’ll feel like we’re an extension of your team.

In-depth insights

Automating many of your financial processes can free up more time for us to focus on longer-term strategies. We’ll combine technology with our accounting expertise to give you a deeper understanding of your business finances and help you meet your ambitions.

Tailor-made solutions

No two businesses are the same, so you need to find tech solutions that work for you. Whatever challenges you have, we can give you the support you need to face them with confidence.

Seamless integration

Are you looking for an inventory management system to help you monitor stock levels? Do you want to start using time-tracking software so you can keep an eye on the costs of different projects? We can help you integrate new tools into your existing business processes.

Accounting support

It’s our job to provide support and answer any questions you have – whether you want to know more about your tax liabilities or how to make the most of new accounting tools.

We can help you navigate accounting software with ease. And if we find something that could improve your financial processes or boost your productivity, we’ll let you know.

Get in touch with our team to find out how we can use cloud technology to move your business forward.

Talk to us about cloud technology and your business.

How to plan your finances ahead of retirement.

For many savers, retirement can seem like a far-off or even unattainable goal. But to maximise your chances of retiring comfortably, early planning is essential.

Recent research from Canada Life shows that a worrying number of UK adults are not planning for this key milestone, with 45% of over-55s saying their retirement plans are not detailed, and 19% saying they have no plans in place at all.

One in ten respondents said they’d never thought about planning for retirement – and didn’t intend to do so. But more than a third (35%) of retirees wished they’d planned for their retirement more thoroughly in advance.

As the cost-of-living crisis puts pressure on day-to-day finances, it’s a difficult time to think about saving for the future. But these challenges make it all the more important to carefully consider your finances and plan for the long term.

Here are some tips on how to plan for retirement.

Assess your saving goals

At its most basic, retirement planning from a financial perspective comes down to two key questions: how much do you need to save, and how will you save it? The answers to these can be down to various factors.

What kind of lifestyle do you want?

To start working out how much money you’ll need in retirement, you’ll need to consider your various expenses and the lifestyle you’d like to achieve.

Give careful consideration to factors like holidays and leisure, transport, home maintenance, food and drink, shopping and gifts.

The Pensions and Lifetime Savings Association estimates that a single person would need at least £12,800 a year to afford at least a minimum level across these expenses in retirement.

For a ‘moderate’ lifestyle that offers more financial security and flexibility, you’d need at least £23,300, while a more comfortable lifestyle with some luxuries would require £37,300 a year.

These estimates could vary for couples and different locations in the UK, and you’ll also need to factor in additional costs like medical and social care.

They also assume that you own a home and are no longer renting or paying a mortgage. But with these points in mind, they can provide a useful starting point for your calculations.

When did you start saving?

Another major factor in your retirement plans is how early you start. The sooner you start, the more you can save over time – plus, compounding interest means the money you put in earlier can go further.

For instance, let’s say your investments see returns at 3% above inflation each year. If you put £10,000 into your pension at the age of 21, your investment would be worth £35,000 by the time you turn 65. If you made the same investment at 40, it would be worth around £20,000 instead.

One rule of thumb suggested by some experts is to halve your age, and use that number as a percentage of your annual salary you should save.

So if you start saving into a pension at 20, you might aim to save 10% of your income. If you start at age 30, you’d need to save 15%.

How long will your retirement be?

Generally speaking, the length of your retirement depends on how soon you retire and how long you expect to live.

Remember, life expectancy has increased drastically in the last 50 years, and according to the Office for National Statistics, it’s expected to increase again in the next 50, by approximately 6.6 years for males and 5.5 years for females in England and Wales.

People potentially living longer than before is great news, but it does make it more important to check that your finances will cover that period of time.

Understand your pension

Most people in the UK are entitled to income from the state pension, as well as any workplace or personal pension savings they’ve built up over time.

State pension

The new state pension, which applies to people reaching retirement age (currently 66) on or after 6 April 2016, offers a full amount of £203.85 per week (£10,600.20 per year). But the amount you receive will depend on your National Insurance record.

You can check how much state pension you’re entitled to, when you should get it, and how you might be able to increase it using the Government’s ‘Check your state pension forecast’ tool.

Workplace pension

In the last few years, more people have been saving into a workplace pension scheme following the introduction of auto-enrolment laws.

These require employers to automatically enrol qualifying employees into a workplace pension scheme and make contributions as a percentage of the employee’s salary.

Currently, the minimum total contribution for auto-enrolment pensions is 8% of pensionable earnings.

Employers must pay a minimum of 3%, with employees covering the remaining 5% – although employers can choose to contribute a higher amount.

As an employee, it’s possible to opt out of an auto-enrolment pension scheme, but because you receive a contribution from your employer and benefit from tax relief on those contributions, it’s often a good idea to remain enrolled.

Personal pension

You also have the option to arrange a pension yourself. This can be particularly useful if you’re self-employed and therefore unable to benefit from an employer’s pension scheme.

There are a few different types of pension you could choose from, including stakeholder pensions, which must meet specific Government requirements, or self-invested personal pensions (SIPPs), which allow you to choose your investments.

Whichever you choose, check that your provider is registered with the Financial Conduct Authority, or the Pensions Regulator for stakeholder pensions.

Assess your savings options

Many people choose other methods to save for retirement,  such as individual savings accounts (ISAs). You can make contributions to an ISA up to an annual limit without incurring tax on the growth of your savings – for 2023/24, the limit stands at £20,000.

You can also invest, either in stocks and shares or assets like property. The seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are two very tax-efficient ways to invest, for example – talk to us for more information on these.

Holding investments over a longer period generally gives you a better chance of returns, but as ever, the value of investments can go down as well as up. Before making investment decisions, it’s best to seek out expert advice.

Withdrawing from your pension

When the time comes to access your savings, it’s important to be aware of the tax implications.

From the age of 55, you can usually take up to 25% of your total pension pot as a tax-free lump sum. Withdrawals after this are subject to income tax. You’ll still receive your tax-free personal allowance in retirement, which currently stands at £12,570.

Tax on pension income can be very complicated, and while you have various flexible options for withdrawing your funds, it’s essential to get professional advice to avoid unexpected tax charges.

We can help you to understand the tax implications of retirement and create an effective plan to achieve your savings goals.

Get in touch to talk about retirement planning.

Britain’s economy partially recovered in August, with a marginal growth of 0.2% following a sharp fall in July.

This slow growth has fuelled expectations that the Bank of England’s (BoE) Monetary Policy Committee will vote to maintain its base interest rate at 5.25% next month.

The BoE halted its run of interest rate increases in September following signs of a slowdown.

Earlier this week, the International Monetary Fund predicted that Britain would be the slowest-growing G7 nation in 2024.

While the UK is not currently in recession, weak growth has been a concern, and the economy is likely to be a key issue in next year’s election.

The Office for National Statistics said the economy needed to grow 0.2% in September to avoid reducing in the third quarter of 2023.

Commenting on August’s GDP figures, David Bharier, head of research at the British Chambers of Commerce, said:

“The UK economy is holding up but remains in a precarious state.

“Our research is clear about the issues UK firms are facing — three years of economic shocks, high inflation and interest rates, skills shortages, and trade barriers with the European Union.”

Get in touch about your finances

The number of company insolvencies in September 2023 was 16.5% higher than the same month last year, according to official data published in October by the Insolvency Service.

Corporate insolvencies decreased to a total of 1,967 compared to August’s total of 2,319, but compared to September 2022’s figure of 1,688, they increased by 16.5%.

Nicky Fisher, president of R3, the UK’s insolvency and restructuring trade body, commented on the corporate insolvency statistics:

“September 2023’s corporate insolvency figures are the highest we’ve seen for this month in four years as a combination of economic issues, director fatigue, and the post-COVID insolvency lag which has seen more firms turn to corporate insolvency processes to resolve their financial issues.

“It’s clear that the challenging trading climate is taking its toll on businesses. Firms are operating in a climate where people are cutting back their spending on non-essential items, while at the same time the costs of operating a business remain high – and will only increase as the weather gets colder and the cost of borrowing and servicing existing debts get more expensive.

“Our message to company directors is simple: if you’re worried about your business, seek advice.”

Talk to us about your business.