Another ISA option came into play last November when the Government announced that Tax-free savings accounts for children, known as Junior ISAs, would become available from providers for the first time. Experienced Independent Financial Advisors Enable of Bishops’s Stortford know how important it is to maximise your ISA options as part of your financial planning and tax efficiency. We all have worries at the moment about what kind of financial future our children are going to have to face. Junior ISA’s might provide some comfort.
About six million children are estimated to be eligible for the products, which cannot be cashed until they have reached the age of 18. The idea is that this option has been created for children who didn't qualify for a Child Trust Fund account which had included a voucher from the government to help kick-start the savings habit for families with children.
The Junior ISA allows you to invest up to £3,600 in the current tax year in a cash or stocks and shares Junior ISA, or a combination of both. Family or friends can pay money into a child's Junior Isa, run by banks, building societies and investment groups but only the child will be able to access the money and only from their 18th birthday.
If you have family and friends who what to play a part in investing for your child’s future Enable have many years of experience at maximising families tax efficiency and can help you formulate the best ISA savings plan for junior’s future.
Tuesday, 24 January 2012
New rules for ISA’s
Enable like most reputable Independent Financial Advisors know ISA’s are a vital part of personal financial planning. It is important to keep on top of any changes that occur and make sure that ISA’s are working for you. At the end of last year the government introduced new rules for investors whose ISA savings are lost in the collapse of a financial firm making it possible for them to be able to refill their annual allowance.
Under the old rules, any funds lost if the provider folded would have been considered part of the annual input. In a statement to MPs, Mark Hoban, Financial Secretary to the Treasury, said that the new plans allowed savers who have lost their cash Isa to save the equivalent amount, in the same year, in a new account with another provider and that they gave an investor the opportunity to reinvest any compensation paid out if a stocks and shares ISA is affected by a financial firm's collapse.
This permitted investors with ISAs directly affected for example by the collapse of Lehman Brothers to reinstate the same level of investment, irrespective of whether compensation had been paid.
"[The changes] will enable investors whose ISAs are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings," Mr Hoban said. "They also demonstrate the government's commitment to ensure that the Isa remains a secure, accessible and tax-advantaged saving product."Enable IFA’s of Bishop’s Stortford are happy to help you maximise your ISA’s investments as part of your financial portfolio.
Under the old rules, any funds lost if the provider folded would have been considered part of the annual input. In a statement to MPs, Mark Hoban, Financial Secretary to the Treasury, said that the new plans allowed savers who have lost their cash Isa to save the equivalent amount, in the same year, in a new account with another provider and that they gave an investor the opportunity to reinvest any compensation paid out if a stocks and shares ISA is affected by a financial firm's collapse.
This permitted investors with ISAs directly affected for example by the collapse of Lehman Brothers to reinstate the same level of investment, irrespective of whether compensation had been paid.
"[The changes] will enable investors whose ISAs are affected by the failure or default of a financial firm to continue to benefit from tax-advantaged savings," Mr Hoban said. "They also demonstrate the government's commitment to ensure that the Isa remains a secure, accessible and tax-advantaged saving product."Enable IFA’s of Bishop’s Stortford are happy to help you maximise your ISA’s investments as part of your financial portfolio.
Making the most of your ISA...
With the New Year resolutions a bit more realistic it’s time to look to the rest of the year and having a plan for your finances is the best way to make them work for you even in the toughest of times. At Enable our IFA’s can help you make realistic plans to maximise your savings and investments.
ISA’s are an invaluable part of any savings portfolio as they help you maximise your tax efficiency. Enable are happy to talk you through the basics and find the best options for you.
ISA stands for ‘Individual Savings Account'. ISAs allow you to get the income and returns from you savings and investments without having to pay any income or capital gains taxes. There are two types of ISA - cash ISAs and Stocks & shares ISAs. Investment products such as authorised unit trusts, can be held in the Stocks & shares ISA. Cash ISA is where you save in a cash deposit account.
Stocks & shares ISAs are a medium (at least 5 years) to long term (over 10 years) investment.
The maximum cash ISA investment allowance is £5,340. The maximum you can invest in a stocks & shares is £10,680 per tax year (less any amount you save in a cash ISA).Cash ISAs are available to all UK residents aged 16 or over. Stocks & shares ISAs are available to all UK residents aged 18 or over. You are only allowed to contribute to one cash and/or one stocks and shares ISA per tax year.
ISA’s are an invaluable part of any savings portfolio as they help you maximise your tax efficiency. Enable are happy to talk you through the basics and find the best options for you.
ISA stands for ‘Individual Savings Account'. ISAs allow you to get the income and returns from you savings and investments without having to pay any income or capital gains taxes. There are two types of ISA - cash ISAs and Stocks & shares ISAs. Investment products such as authorised unit trusts, can be held in the Stocks & shares ISA. Cash ISA is where you save in a cash deposit account.
Stocks & shares ISAs are a medium (at least 5 years) to long term (over 10 years) investment.
The maximum cash ISA investment allowance is £5,340. The maximum you can invest in a stocks & shares is £10,680 per tax year (less any amount you save in a cash ISA).Cash ISAs are available to all UK residents aged 16 or over. Stocks & shares ISAs are available to all UK residents aged 18 or over. You are only allowed to contribute to one cash and/or one stocks and shares ISA per tax year.
Tuesday, 17 January 2012
Mike Cooke to cycle 5 countries in 5 days, to raise money for Isabel Hospice
In a fit of madness I have decided to join the Isabel Hospice team and cycle 5 Counties in 5 days (500miles!!).
The event is taking place from the 12th to the 17th of June 2012 in which time you will be able to witness a middle aged, balding, overweight me, passing through the UK,France,Belgium,Germany and ending in Holland.
Please help me on my way and in turn help a great local Charity by sponsoring my efforts, thank you in advance, just visit my just giving page to make a donation http://www.justgiving.com/5in5MikeCooke
The event is taking place from the 12th to the 17th of June 2012 in which time you will be able to witness a middle aged, balding, overweight me, passing through the UK,France,Belgium,Germany and ending in Holland.
Please help me on my way and in turn help a great local Charity by sponsoring my efforts, thank you in advance, just visit my just giving page to make a donation http://www.justgiving.com/5in5MikeCooke
Tax Advisors must be up to speed...
Experienced IFA’s like Enable of Bishop’s Stortford know how important it is to be fully up to speed about tax advice. Revenue and Customs (HMRC) have announced new plans for tackling suspected tax fraud using civil powers. HMRC will offer some people suspected of tax fraud the opportunity to enter into a contract to disclose that fraud in exchange for a guarantee that they will not face criminal prosecution.
Gary Ashford, Head of Tax Investigations at RSM Tenon, has welcomed the new facility, saying:
“This is a positive development. HMRC’s proposals would potentially provide greater clarity to those who have deliberately got their tax wrong and now want to engage with the taxman to regularise their affairs..”
“This new facility will start to be used from 31 January. We are likely to see a flurry of big tax investigations starting then. Those pursued under the CDF can expect to have to pay the tax owed, interest and substantial penalties…..With HMRC targeting a five-fold increase in criminal prosecutions for evasion, the consequences of not clearing up tax irregularities could be grave.”
“The new procedures also raise the bar for tax advisers. Those seeking to advise clients in this area really will have to be sure they have the necessary skills and experience. There will be risks for client and adviser alike if these procedures are not followed properly – we are, after all, working in an area where criminal offences are being alleged.”
Independent Financial Advisors know tax efficiency is part of good financial management but it must operate within the law.
Gary Ashford, Head of Tax Investigations at RSM Tenon, has welcomed the new facility, saying:
“This is a positive development. HMRC’s proposals would potentially provide greater clarity to those who have deliberately got their tax wrong and now want to engage with the taxman to regularise their affairs..”
“This new facility will start to be used from 31 January. We are likely to see a flurry of big tax investigations starting then. Those pursued under the CDF can expect to have to pay the tax owed, interest and substantial penalties…..With HMRC targeting a five-fold increase in criminal prosecutions for evasion, the consequences of not clearing up tax irregularities could be grave.”
“The new procedures also raise the bar for tax advisers. Those seeking to advise clients in this area really will have to be sure they have the necessary skills and experience. There will be risks for client and adviser alike if these procedures are not followed properly – we are, after all, working in an area where criminal offences are being alleged.”
Independent Financial Advisors know tax efficiency is part of good financial management but it must operate within the law.
Returns on the new tax unit have caused much debate...
There has been much debate at Enable IFA’s of Bishop’s Stortford about the expected revenues of the new tax unit some say they will be a relatively small share of the £7bn a year that HMRC is due to raise by closing the tax gap by 2014-15. The tax gap was estimated to be £35bn in 2009-10, with individuals accounting for 11 per cent of it, according to official figures.
The HMRC say the new unit did not involve new recruitment. The new unit also draws on expertise from across Revenue & Customs, including those who deal with corporate entities, residence and domicile issues and trusts and estates. Revenue & Customs said it would use sophisticated data mining techniques on publicly available information to identify individuals who own property abroad. It would then use risk assessment tools to identify people who did not appear able legitimately to afford the property, as well as those who did not appear to be declaring the correct income and gains from the property.
The issue of how rich individuals and corporations are taxed is politically charged. George Osborne, has justified his austerity plan on the basis that the burden would be fairly shared across society. The government views cracking down on evasion as an effective way of raising revenues and increasing the fairness of the tax system. Making sure your tax efficiency is above board and up-to-date is vital for effective money management something experience IFA’s Enable work with all the time.
The HMRC say the new unit did not involve new recruitment. The new unit also draws on expertise from across Revenue & Customs, including those who deal with corporate entities, residence and domicile issues and trusts and estates. Revenue & Customs said it would use sophisticated data mining techniques on publicly available information to identify individuals who own property abroad. It would then use risk assessment tools to identify people who did not appear able legitimately to afford the property, as well as those who did not appear to be declaring the correct income and gains from the property.
The issue of how rich individuals and corporations are taxed is politically charged. George Osborne, has justified his austerity plan on the basis that the burden would be fairly shared across society. The government views cracking down on evasion as an effective way of raising revenues and increasing the fairness of the tax system. Making sure your tax efficiency is above board and up-to-date is vital for effective money management something experience IFA’s Enable work with all the time.
Taxing the rich - do you declare earnings from overseas property?
Whether the rich should pay more tax is a debatable political issue but Enable, Independent Financial Advisors of many years experience note that The Revenue are targeting the wealthy and have started with Owners of overseas property first. A 200-strong team of investigators has been set up to identify wealthy tax evaders, Revenue & Customs declared this at the end of last year when it unveiled a new “affluent” unit, which will focus on the tax affairs of those earning more than £150,000.
Commodity traders are said to be the Revenue’s next target, and holders of offshore accounts will come under scrutiny later next year. The tax affairs of the very wealthiest 5,000 individuals, with at least £20m in assets, are handled by a specialist group that generated an extra £86m of revenues in 2009-10 and £162m in 2010-11.
Danny Alexander announced the launch of the unit which will deal with the 350,000 richest people, at the Liberal Democrat conference in September when he said “the small minority who don’t pay what they owe” would be found and made to pay their fair share. David Gauke, financial secretary to the Treasury, said the new unit was expected to raise £560m in the next few years, adding: “The government is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years in the last spending review. This new team is part of that investment.”
Making sure you are tax efficient is part of good financial management expert advice from experience IFA like Enable of Bishop’s Stortford is always best.
Commodity traders are said to be the Revenue’s next target, and holders of offshore accounts will come under scrutiny later next year. The tax affairs of the very wealthiest 5,000 individuals, with at least £20m in assets, are handled by a specialist group that generated an extra £86m of revenues in 2009-10 and £162m in 2010-11.
Danny Alexander announced the launch of the unit which will deal with the 350,000 richest people, at the Liberal Democrat conference in September when he said “the small minority who don’t pay what they owe” would be found and made to pay their fair share. David Gauke, financial secretary to the Treasury, said the new unit was expected to raise £560m in the next few years, adding: “The government is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years in the last spending review. This new team is part of that investment.”
Making sure you are tax efficient is part of good financial management expert advice from experience IFA like Enable of Bishop’s Stortford is always best.
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