Don't let your heating bills get you down

Once winter has set in the seemingly unstoppable rise of our heating bill becomes a harsh reality. Of course we do what we can, we put on another jumper and wear thermal underwear, but British winters can bite hard, and often such small measures are mere drops in an icy ocean. But we mustn't allow heating bills to get us down, let's do what we can to drive down costs whilst keeping nice and warm.

Cheap, easy fixes

There are plenty of simple, easy measures we can take that will make a positive difference to our bills. Start off by turning down the heating thermostat at home. It is estimated that savings of up to three per cent can be achieved with each degree it is lowered. Small adjustments to the ambient temperature will be unnoticeable, so this is a great way to start off the savings. If the house is empty during the day whilst residents are at work, turn down the heating, and by doing the same at night when everyone is asleep, cost savings can really build.

Other easy, cost free tips to try include minimising the use of kitchen and bathroom extractor fans. Not only do they eat power, they rapidly push warm air out of the house. If there are rooms that don't get used, switch off the heating in there to save money. Old, unused fireplaces can look attractive but they are terrible for sucking out warm air and sending it up the chimney. Install a chimney balloon to insulate the chimney and keep precious heat in the room.

Doors and windows

These are one of the problem areas for heat loss and the more that can be done to insulate and minimise draughts, the lower the heating bill will be. Of course, doors and windows need to be opened, but when they are closed, they should be airtight. Invest in insulating solutions like expanding foam and draught excluder strips to keep out the cold air. Older houses can be hard to insulate and really benefit from shutters to give an extra thick layer of protection. Not only do wooden shutters help keep the temperature up, they give extra privacy and security whilst looking stylish. Fitting made to measure solid shutters on awkward shaped, draughty windows can really change cold spots in the house to places of warmth and comfort.

Other bill bashing tips

Be proactive about finding the best energy supplier. There are better deals out there but it is not in the energy company's interests for them to be easy to find or understand. Gone are the days when we used to stick with one energy supplier forever, now we can shop around, negotiate and play suppliers off against each other. Sometimes it's possible to find deals which lock in to a competitive tariff for a couple of years – this type of offer can be very attractive as it gives protection from imminent price hikes.

Keeping warm in the winter can be quite a challenge, but putting all of the above suggestions into practice guarantees savings on the heating bill. So don't let the winter heating bills get you down, turn the tables and let's get them down.

Tax advice for your SME

Keeping records in order

Small businesses are likely targets of the HMRCs push, at the behest of the government, to bump up tax revenues by an extra £7 billion annually. Since SMEs are accountable for about half of the tax gap, HMRC taskforces have been appointed to scrutinize SME business records.

A visit from the “tax man” doesn’t require an invitation. New legislation authorizes HMRC inspectors to arrive at any time unannounced and obliges small business owners to facilitate the investigation. Businesses that cannot justify their tax position with up-to-date, accurate records are subject to penalties under the new regime. To avoid facing potential unpleasantness, such as penalties and interest, securing reliable advice to ensure all records are tidy is a wise investment.

Tax simplification for SMEs presents challenges

These legislative changes have altered the way in which SMEs have to meet their tax obligations. Though the HMRC has framed these changes as improvements through simplification for the SME taxpayer, systemic changes have a tendency to cause confusion. SMEs with employees are charged with adjusting to a radically different system initiated in 2013, in which payment data for staff are submitted each pay period online rather than annually. The costs and logistics for SMEs of implementing this real-time information (RTI) system into their operations is uncertain, creating anxiety about its potential impact on SMEs. Small businesses that do not comply with RTI in a timely manner will face penalties.

Many of the UKs roughly 4.6 million SMEs struggle with their taxes. Specialist lenders to SMEs are noting sharp leaps in applications for credit to cover their tax bills. The HMRC may not show leniency in allowing extra time to pay, and appeals are not available. As SMEs navigate their way through the new regime implemented by the HMRC, they may find the route to tax simplification rocky. Some businesses may consider restructuring their businesses to maximize the potential and minimize the potential for loss resulting from these changes.

Tax planning advice

Help is available for owners of SMEs who dread not only the 31st of January but the ever-present, looming threat of an impromptu visit from the HMRC investigator. Seeking the wise counsel of a tax planning advice specialist is a step that can save SME owners money in penalties and interests. An initial consultation with an experienced tax professional may be absolutely free, a reasonable fee for peace of mind. Services tax consultants provide include HMRC defence, as well as complex planning, international tax, and disclosure issues.

Tax planners help SME owners determine whether they should organize their businesses as limited liability companies by clearly explaining the pros and cons and helping owners evaluate commercial risk. They can also help SME owners evaluate insurance issues. Additionally, consulting with a tax advisor may reveal several expenses that can be claimed.

SME owners under HMRC investigation may wish to seek out a specialist in this area, perhaps an expert with previous experience as an HMRC investigator. This specialist can assist with penalties, discovery/jeopardy assessments, and appeals, among other components of mounting a successful defence.

Keep Your Finances Safe Online

Shopping online has become second nature to many of us. It’s so easy to purchase things at the click of a mouse these days – music, clothes, holidays…the possibilities are endless online. Some websites will require you to input your card details every time, whereas others will save your payment information for future use. Amazon in particular has a ‘one-click’ payment system, where you can save your details and buy things quickly and efficiently. As useful as this may be, it can be much harder to keep track of your spending this way. Ease of payment aside, it’s the security of your payment details that you should be considering when purchasing things online.

Check Your Password

Of course, it goes without saying to use secure passwords. Something that you may think is the most un-guessable word in the world could be obvious to those who know you well enough, so always try to add in numbers, capital letters and symbols to make it harder to guess. Never choose things which are easy to find out, like your mother’s maiden name, the name of your pet or your favourite band. These details can be found out by people who don’t even know you with very little investigation indeed.

Keep Up To Date

The more up to date the programs your computer uses are, the safer you’ll be online. This is because new technologies are harder for hackers to get around. The older the anti-virus software you have, and the older your browser version, the more likely it is that hackers have found their way around the security features. New technology is there to protect us and to ensure that we’re working safely and as efficiently as possible.

Stay Secure

To ensure you’re even more secure, you should always buy things online when you’ve got a secure internet connection. This means that, if you’re using Wi-Fi in a coffee shop or are on a connection where other people can connect, you may not be as safe as when you’re connected to a locked and password protected internet source. If you’re entering details into a shared computer, then always check that your entries are not saved, as the next person could, in theory, use your details to buy things from your account.

Shop Where You Have Trust

Never shop online on sites which you don’t feel comfortable. If there is no padlock symbol on your browser telling you that it’s secure, and if the web address doesn’t start with https:// on the payment page at least, then your details may not be used securely. Always double check that you’re on the website you want to be on too. Many scams involve creating sites which look exactly the same as mainstream, well-known shopping sites, and taking your money once you’ve entered your card details.

Use a Credit Card

If you shop online regularly, then it may be worth using a credit card, and paying off the balance from your current account. This would ensure that, should your details be stolen, you’d be protected under Section 75 and none of your linked accounts could be compromised.

How to Avoid Being Ripped Off When Buying a New Car

Buying a car is a big ticket item. You need to make sure you get the best vehicle possible for your needs and within your budget. This can be difficult when in the presence of a very convincing and very determined car salesman, who may have his commission payment as his best interest. It is absolutely vital that you do your homework and that you do it thoroughly. Research, research, research!

Check out all the features that each car offers against the price. Sometimes buying a more expensive car with more features will actually give you the best value for money. What will you use the car for? Are you looking for a small city runabout that is easy to park and has excellent fuel economy? Or do you want to the car to serve a dual purpose, like being able to go on and off road so you can takethe family for camping holidays? Is comfort important to you? What about space and a roomy boot?

Be really clear on what your needs are and then set about finding cars that fit the bill. That way you won’t end up driving home a convertible sports car when you really needed the room of Land Rover’s luxury SUV. That may be an extreme example, but the truth is you can be pushed into an impulse purchase that does not meet your needs, especially at the hands of a professional salesperson.

Decide on the Car you want Beforehand

By all means visit car dealerships to find out everything you can about various makes and models, but be sure you know exactly which car you want before you buy. Think about size; how many passengers you will have? If you don’t have many a small car will be much cheaper to run. Fuel economy should play an important role in your decision. Safety too will be a big consideration; check for things like the number of airbags, reversing cameras and sensors.

Accessories

Accessories can greatly increase driving pleasure, but be clear on what accessories you really need. Don’t be swayed by a whole host of features that you will not use. Check out accessory packages carefully; find out what is included and decide whether you really need it all. Unwanted accessories can bump up the price considerably and while they sound good when being recited to you in an impressive list, you may never use them.

Interest on Finance

If you are financing your purchase this is a very important consideration. Check out payment plans thoroughly. Find the most competitive interest rate you can. Watch for loan fees and other fine print obligations. Pay attention! You will usually get better interest rates at a bank or building society.

Insurance

Many car dealers will try to sell you insurance with your car. Remember, for them it is all about commission payments, so be prepared. Do your research beforehand and know the best priced insurance you can get independently. And if they can’t match it or better it, say no.

How Credit Scores Work and Why They Matter Now More than Ever

Like it or not, a credit score is the language of lending approval for the consumer and for small businesses. It provides a standardized way that lenders can quickly evaluate and filter out loan applicants for all types of credit products ranging from revolving lines of credit to mortgages, and its not going away any time soon. In fact, credit scores are now expanding in their use beyond just financial tools as well. Here's an introduction to get you familiar with the concept.

Background

For decades, credit scores have followed the FICO model, a mathematical model developed by the Fair Isaac Corporation. The formula gives different points to different types of loans based on a variety of factors, including how they have been handled by the consumer, the rate of successful payment, the age of the loan, the amount of credit still available from existing lenders, and other negative factors such as foreclosure or bankruptcy if present. All of these elements add up to a total which represent a person’s raw credit score. Lenders then decide which point level is desired, which is acceptable, and which “don’t make the cut” and should be rejected.

Use and Application

Credit scores have long been used to evaluate borrowers in a way that provides a solid defense against accusations of discrimination. Instead of having to prove the bank did it’s research to objectively provide loans, lenders can simply sit back and put the burden on the consumer for not keeping his score high enough.

However, credit scores are now being found elsewhere as well. Because a the score is a symbol of a person’s ability to manage his finances, which requires discipline and often leads to financial success, people are beginning to put weight on scores as a way to evaluate someone's character, especially when deciding if a person should be trusted with responsibility. Areas where credit scores are being seen as a gauge include:

• Rentals and leases – Landlords and property management companies frequently believe there’s a direct correlation between a credit score and how reliable a tenant will be in paying rent timely. As a result, scores are often being used for tenancy approvals.

• Security clearances – Those who can’t manage their finances well can be seen as a potential risk for blackmailing and temptation to disclose data or products for easy money.

• Hiring – Companies have long known application forms and interviews don’t tell very much about a job candidate. However, credit scores can often signal a disciplined, reliable person versus a poor candidate that shouldn’t be hired.

Improving a Personal Score

The best ways to improve a personal credit score are usually controllable. They involve making debt payments in a timely manner or, even better, paying off debt completely. Multiple accounts should also be streamlined to the oldest, largest accounts, with a preference for collateralized debt versus open-ended revolving lines of credit (i.e. credit cards). This shows long-term stability and successful debt management, which scores better. Consumers should also regularly vet their credit history to find and remove any mistakes which can negatively score downward.

A credit score doesn't have to be a thing feared, but it does take work to maintain and monitor. A consumer who understands this fact gains an upper hand on the scoring system, understanding how to use it.

Considering Equity Release Schemes to serve your purpose

Equity release policies are a series of schemes designed to free money from the ownership of a house in order to spend it on repairs or renovations, weddings, holidays, the clearance of personal debts, or, in many cases, used by retired individuals to provide them with a reliable source of income. However, equity release schemes are a serious financial commitment and should be considered very carefully.

Forms of equity release lifetime mortgages available vary greatly, from lump-sum loans, drawdown packages, interest repayment loans and enhanced lifetime mortgages covering those with lower than average life expectancies due to illness. The range can be complicated, which means it is usually recommended to compare equity release schemes before deciding. Professional advisors will charge a fee for their services, whilst good quality online calculators are available to compare the range of equity release schemes and their features. These calculators can be used to decide between plans of a similar nature by assessing their direct correlation to the individual’s circumstances.

Equity release schemes are anticipated as being a lifetime commitment, which means that should a later decision be taken to move house or to use the equity again in another way, there will be restrictions on what actions are possible. Debt will accrue over the duration of the scheme, and, with interest rates so unpredictable, there is a chance that the ultimate cost will be several times the value of the original advance.

The lifetime mortgage is secured against the value of the home, being repaid when the named owner passes away or moves into a long term care establishment. Typically offered with a fixed rate of interest, in contrast to the way conventional mortgages are structured, interest on lifetime mortgages is charged on a sum of money which is increasing, therefore growing the debt. With the lifetime mortgage as equity release, there are no repayments, thus interest charges are added to the debt amount on a regular basis. It is impossible for the overall scale of the debt to exceed the value of the property, due to guarantees from members of the Equity Release Council who have agreed that this cannot happen. Many equity release providers have specific criteria for their customers, including minimum ages, and the percentage of equity in the property which can be released will be dependent on the client’s age. There are also a wide range of minimum loan amounts, and minimum property value required to be considered for equity release.