Our sister company, Phillip Bates & Co chartered accountants is one of the founders of the Neston and District Community Fund.
The Fund, which was launched in 2015, wants to hear from organisations tackling social issues such as youth crime, drug rehabilitation and elderly isolation.
It was set up to specifically support the work of community and voluntary groups in Neston, Little Neston, Parkgate, Burton, Ness, Willaston and Puddington.
Four businesses – Phillip Bates, Clive Watkin Partnership, Rightway and G Tilby Engineering – launched the fund with an initial substantial donation. They followed this up with a further donation in 2016.
A number of grants have so far been given, the most recent one to Healthbox CIC, a not-for-profit organisation committed to delivering lifestyle change programmes in the community.
The grant from the Fund will support the Neston Healthy Families project which works with families with multiple and complex needs. The six-month project supports families who have been identified by primary schools, Plus Dane Housing and Neston Children’s Centre.
Phil Bates, Principal at Phillip Bates & Co, says: “We are proud of the projects we have been able to support since we launched the Neston and District Community Fund almost two years ago, but we know there is so much more to do.
“We particularly want to hear from any group which is helping to tackle deep-seated social issues within our community.”
The fund is administered by Cheshire Community Foundation, which works to match charitable donors with the causes that matter most in Cheshire and Warrington.
If you would like to apply for a grant, please email angela@cheshirecommunityfoundation.org.uk or call Phil Bates on 0151 353 0003.
We’re one of Caldy Cricket Club’s Nifty 50!
/0 Comments/in News /by Sarah LoweWe’re proud to announce our new partnership with Caldy Cricket Club.
The renowned Wirral club, set in National Trust land with stunning views over the Dee Estuary to Wales, is inviting local businesses to become part of its ‘Nifty 50’ scheme.
Nifty 50, so-called to mimic a batsman who raises his bat on reaching 50 runs to acknowledge the support he has received, allows us to work closely with Caldy Cricket Club as well as the wider Caldy Sports Club community, which includes Caldy Rugby Club and Oxton Hockey Club.
Caldy Cricket Club plays in the Liverpool & District League and welcomes teams from across the Wirral, Liverpool and Lancashire to its playing ground, Paton Field.
The club is also affiliated with the Cheshire Cricket Board and regularly hosts age group representative matches.
Caldy Rugby Club, meanwhile, play National League Division 2 and Oxton Hockey Club run senior teams for men and women, with the Men’s 1st team playing in the Men’s Hockey League Conference North.
Alan Mellor said: “We’re delighted to be involved in this fantastic community initiative.
“This partnership represents our commitment to the region and we are very much looking forward to working with Caldy Rugby Club this year.”
Dividend tax blow announced for shareholders and business owners
/0 Comments/in News /by Sarah LoweLast month’s Budget saw the news that business owners who pay themselves in the form of dividends, rather than a salary, will see their tax-free allowance cut from £5,000 to £2,000.
The announcement also affects investors who have portfolios of shares held outside Isas or pensions.
The change will come into effect in April 2018.
Alan Mellor said: “This announcement will come as a blow to shareholders and business owners who are going to be paying more tax.
“Whilst there is not a lot we can do to combat the change, we invite clients to contact us and see what their options are.”
Philip Hammond said investors will benefit from the recently revised increase in the Isa allowance, implemented on April 6th, to £20,000 and a further increase in the tax-free personal allowance to £11,500.
The higher rate income tax threshold has also risen from £43,000 to £45,000.
And although it has since been withdrawn, Alan Mellor said business owners need to stay aware of their tax structures, with the chancellor initially announcing a rise in Class 4 National Insurance contributions for the self-employed.
“It’s on the Government’s radar, so could be revised at any point,” Alan said.
Alan Mellor can be contacted on 0151 353 1066.
Earn more than a £60,000 salary? Make sure you opt out of child allowance
/0 Comments/in News /by Sarah LoweWe all know that, should your or your partner’s individual income exceed £50,000, you must pay a tax charge on your child allowance.
But many people earning a salary of more than £60,000 aren’t claiming child allowance at all, and this could be having a significant impact on their state pension.
As a parent, you have a choice over whether to obtain Child Benefit payments or not, but you should still fill in the claim form because if you don’t, you could lose National Insurance credits, which count towards your state pension.
Filling in the form, and then opting out, also ensures your child is registered to receive a National Insurance number after their 16th birthday.
It costs nothing to fill in the form and will help you and your family further down the line.
Alan Mellor said: “Many people choose not to obtain child allowance at all when they reach a salary of more than £60,000, but it is really important that you fill in the claim form and then opt out to ensure you don’t lose out in the future.”
If this affects you and you would like some help planning your finances, contact Alan and the team on 0151 353 1066.
Have you included a discretionary trust in your will?
/0 Comments/in News /by Sarah LowePhilip Bates & Co Financial Services has issued a stark warning to those who have included a discretionary nil rate band trust in their wills.
Changes introduced by the Government on 6th April means having done so may mean missing out on the new family home allowance.
We will now see the inheritance tax nil-rate band gradually supplemented with the new main resident nil-rate band – and trusts are excluded.
Only residential properties left to a ‘direct descendant’ can qualify for this new family home allowance.
Direct descendants include children, stepchildren, adopted and foster children and grandchildren, but not trusts.
The aim of the policy is to give an additional IHT allowance in addition to the usual £325,000 per person.
So, by the time the changes have been fully implemented in the 2020/21 tax year, a couple will be able to pass on a property worth up to £1 million free of tax.
But it has been suggested that the changes will affect hundreds of thousands of people who have established trusts as a way of limiting inheritance tax liabilities.
Alan Mellor said: “It is impossible to estimate exactly how many people this will affect, but our advice is to seek legal advice on your will without delay.”
Office Administrator Needed
/0 Comments/in News /by Sarah LoweOur long-serving office administrator Sheila Ewing is retiring in July after more than 20 years’ with Phillip Bates Financial Services and, prior to this, our sister business, Phillip Bates & Co.
We are therefore starting to recruit Sheila’s successor. Excellent office administration skills allied to experience in the financial services sector are required for this position.
If you or someone you know would be interested in finding out more about the role, please contact Alan Mellor on 0151 353 1066.
Record rises on FTSE 100
/0 Comments/in News /by Sarah LoweThe last couple of weeks have seen the longest run of daily rises on the FTSE 100.
For 14 consecutive days, the FTSE climbed that little bit further, eventually peaking at 7,338 points.
In total, the FTSE achieved a new record level by the close of business each day from December 28th until Friday 13th January. It eventually dipped at the start of this week as the markets held their breath waiting for the Government’s long awaited statement on what Brexit will mean for the UK.
The previous longest run of consecutive rises was almost ten years ago when the FTSE 100 rose for eight days.
The FTSE 100 owed much of its winning streak this time to the recovery of the banking and mining stocks.
A poor performing sterling – down almost 20% against the dollar since last June’s EU referendum – has helped to make FTSE 100 stocks more attractive.
This is due to the majority of stocks being multinational firms earning money in dollars. These companies then benefit from converting that revenue into pounds.
By Wednesday of this week, the FTSE 100 had fallen slightly to just over 7,200 points, still an impressive position and something unlikely to change in the foreseeable future.
Final Salary Pension Latest
/0 Comments/in News /by Sarah LoweIn our November newsletter, we revealed just how dramatically the value of some final salary pensions have risen since the Brexit vote last summer.
Pressures on some pension schemes had led to some making hugely inflated offers to people to swap future income for a cash lump sum.
We have seen cases where the transfer valuations have gone up by tens of thousands of pounds in just a handful of weeks.
For some individuals this has meant cash sums equivalent to more than 30 times the projected annual income on retirement being offered to final salary (otherwise known as Defined Benefit) pension schemes.
While we are still seeing examples of sky-high valuations, there is no question that the tide is beginning to turn with some valuations falling by as much as 10%.
The sharp rise in transfer valuations has been caused by the dramatic fall in AA-rated corporate bond yields which, in turn, track 15 to 20 year gilt yields.
While the increased valuations may look appealing, anyone considering leaving their final salary scheme should do so only after careful consideration with their financial advisor.
There are a number of issues that need to be taken into account, the first of which should be considering your wider asset base. For example, do you have sufficient secure income from other assets to meet your basic living costs in retirement? Is the lump sum going to meet your future income requirements? What are the tax implications of withdrawing from your final salary pension scheme? What will the financial effects be on any spouse and other dependants?
If you are considering investigating the possibility of cashing in your final salary pension early, we recommend that you speak with Alan Mellor as soon as possible. Alan can be contacted on 0151 353 1066.
Neston Fund appeals for projects
/0 Comments/in News /by Sarah LoweOur sister company, Phillip Bates & Co chartered accountants is one of the founders of the Neston and District Community Fund.
The Fund, which was launched in 2015, wants to hear from organisations tackling social issues such as youth crime, drug rehabilitation and elderly isolation.
It was set up to specifically support the work of community and voluntary groups in Neston, Little Neston, Parkgate, Burton, Ness, Willaston and Puddington.
Four businesses – Phillip Bates, Clive Watkin Partnership, Rightway and G Tilby Engineering – launched the fund with an initial substantial donation. They followed this up with a further donation in 2016.
A number of grants have so far been given, the most recent one to Healthbox CIC, a not-for-profit organisation committed to delivering lifestyle change programmes in the community.
The grant from the Fund will support the Neston Healthy Families project which works with families with multiple and complex needs. The six-month project supports families who have been identified by primary schools, Plus Dane Housing and Neston Children’s Centre.
Phil Bates, Principal at Phillip Bates & Co, says: “We are proud of the projects we have been able to support since we launched the Neston and District Community Fund almost two years ago, but we know there is so much more to do.
“We particularly want to hear from any group which is helping to tackle deep-seated social issues within our community.”
The fund is administered by Cheshire Community Foundation, which works to match charitable donors with the causes that matter most in Cheshire and Warrington.
If you would like to apply for a grant, please email angela@cheshirecommunityfoundation.org.uk or call Phil Bates on 0151 353 0003.
Inheritance Tax changes explained
/0 Comments/in News /by Sarah LoweWe are working closely with a number of our clients ensuring they are able to make the most of important changes to inheritance tax rules announced in the 2015 Budget.
If you own a property worth up to £1million, you can leave it to your children or grandchildren completely free of inheritance tax as from April 2020.
The former Chancellor, George Osborne, raised the IHT threshold from £325,000 per person to £500,000. This enables married couples and civil partners to pass on property of up to £1million without paying any IHT.
IHT is currently levied at a rate of 40% on the value of an estate above the tax-free threshold, which has been frozen at £325,000 per person since 2009.
Under the changes, couples can double the allowance, passing on assets to their children or other relations worth up to £650,000 before a tax charge is triggered.
Alan Mellor says: “We are advising our clients on the implications of the changes which were announced in 2015, but I know from speaking to other people that many people are not fully up to speed with the new thresholds.
“It is important that people plan ahead to get the benefit of the changes which will be phased in over the next couple of years. This applies equally to those who have a property worth over £2million or assets of more than £650,000.”
Alan Mellor can be contacted on 0151 353 1066.
PM spells out Brexit vision
/0 Comments/in News /by Sarah LoweAfter months of uncertainty, Prime Minister Theresa May has finally laid out her vision of post-Brexit Britain.
In a 43-minute speech on Tuesday, Mrs May went into some detail about her 12 negotiating objectives.
The Government made it clear that this will be the Prime Minister’s only statement on the matter before the start of exit talks in March.
The 12 objectives include:
• Britain will no longer be a member of the EU Single Market
• Britain will not seek to be a full member of the Customs Union, which is separate to the Single Market
• Britain to “get control of the number of people coming to Britain from the EU”
• Britain to “take back control” of our laws – with laws made in Britain not the EU
• Britain to guarantee the rights of EU workers in Britain and wants similar protection for British nationals in EU member states
• Britain to continue working with the EU on crime and terrorism matters
• Free movement to continue between Northern Ireland and the Republic of Ireland
• To achieve a smooth transition from EU membership to life outside of the EU with a “phased process of implementation”
• Continuing protection of workers’ rights as set out in EU legislation
• Both Houses of Parliament to vote on any final deal between the UK and the EU “prior to it coming into force”
• The importance of the Brexit deal strengthening “the precious union between the four nations of the UK”.
• Continuing collaboration between British and European science community on “major science, research and technology initiatives”.
Alan Mellor says: “Britain has been waiting more than six months for the Prime Minister to spell out her vision for life after Brexit.
“The reaction from the markets and financial community to Mrs May’s speech was generally very positive. The pound has its best day on the currency markets for almost 20 years.
“Now the Government has the trickier task of delivering on its big objectives.”