News

Is it time to tidy up your finances this spring? With spring in the air and the 2021/22 financial year just a month old, there’s no better time to take stock of your financial arrangements and see how they’re working for you. Of course, you can check your direct debits or standing orders and cancel any you no longer use. You can switch energy providers or even share your Netflix account.

Earn returns while making an impact. Most people invest because they want their money to grow – to prepare for the future, to save up for a major purchase, or to provide a comfortable lifestyle for their family. That might seem at odds with the idea of putting your money towards a good cause, and creating change in the wider world, but it doesn’t have to be. With ethical investing, you can do both.

Cryptoasset investors have received further clarity on the tax treatment of their unregulated investments from HMRC. Bitcoin is by far the most well-known cryptoasset, although there are more than 1,000 others in existence. Last month, the value of one Bitcoin soared past $60,000 (roughly £43,383) for the first time after some high-profile companies adopted it as a payment method.

How will the measures affect your finances? More than usual seemed to be at stake for last month’s Budget: we waited with trepidation for further news on the eye-watering economic costs of the pandemic, while still coming to terms with the human cost.

Guarding against accidental inheritance. Soaring house prices around the UK over the last 20 years mean it’s possible to leave a substantial windfall to the people or causes closest to our hearts.

The Treasury expects inheritance tax receipts to soar by almost £1 billion by 2025/26, following the decision to freeze two key thresholds in last month’s Budget. The nil-rate band will continue at £325,000, while the residence nil-rate band remains at £175,000 until April 2026.

Elgin firm, Watson & Campbell, have joined forces with Lossiemouth’s Campbell & McConnachie Ltd, following the retirement of director, Wille Watson, after more than 40 years in the business.  Watson & Campbell have closed their Elgin office. Scott Campbell is now based at the Shore Street premises, serving clients both virtually and face to face where necessary, trading as Campbell & McConnachie Ltd.

How much will you receive in 2021/22? At just £175.20 a week in 2020/21 – or £9,110.40 a year – the full new state pension might not be enough for most people to retire on, but it is an important element to consider when planning for your retirement.

And might it be a problem for you in 2021? We’ve all had enough on our plates over the last 12 months, without having to worry about things like inflation. But a surprise jump in December 2020 caused speculation as to whether it might surge when we properly come out of lockdown.

OTS proposal could trigger a spike in pension tax relief bills. Higher-rate taxpayers who save into personal pensions and fail to claim extra tax relief could soon have it handed to them automatically under a new proposal.

The number of people seeking to divorce their spouses boomed last year, with many couples forced to spend long amounts of time with their partners during various coronavirus restrictions. Indeed, those googling Citizens’ Advice divorce guidance increased sharply since last April, during the first national lockdown, and rose by 25% year-on-year in September 2020.

Pensions have come a long way in the last 20 years. Innovative products like stakeholder pensions have reduced costs, auto-enrolment has increased accessibility, and self-invested personal pensions (SIPPs) have boosted investment choice.