The Chancellor, Rishi Sunak, has announced a package to kickstart the economy’s recovery, pledging to “protect, support and create jobs” and get pubs and restaurants “bustling again”. Here is our summary of the main points of today’s mini-budget:

Housing market
Effective immediately, an emergency stamp duty holiday has been unveiled to help revive the property market. Homebuyers will be temporarily exempt from paying the tax for the first £500,000 of any property price, saving them an average of £4,500 and up to £15,000. This will run until the end of March 2021.

Jobs and training
With the furlough scheme ending in October, it was announced that Businesses will be paid a £1,000 job retention bonus for every furloughed worker that is brought back and employed until the end of January 2021.

A new £2bn Kickstart Scheme will create subsidised jobs for unemployed young people and employers will be able to offer a six-month placement for people aged between 16-24.

£111m will be invested to triple the number of traineeships with businesses offered a £1,000 per trainee payment.

For the next six months, the Government will pay businesses up to £2,000 for every new apprentice under 25. It will also pay £1,500 for every new apprentice above 25 hired.

Environment
Homeowners can benefit from £2bn of grants to pay to make their houses more energy efficient. Vouchers worth up to £5,000 will be issued while poorer households could get up to £10,000 to make the upgrades, such as loft and wall insulation.

Up to £40m will be provided for a Green Jobs Challenge Fund to create 5,000 jobs at environmental charities and public authorities.

Hospitality
VAT on food, non-alcoholic drinks, accommodation and attractions has been cut from 20% to 5%.

Every Briton will be given an “eat out to help out” discount. Meals eaten at any participating business Monday to Wednesday in the month of August will be 50% off at up to £10 per head.

Obviously, first and foremost, we want to avoid a second spike in Covid-19 infections but we think that today’s announcement is a welcome boost, both for businesses and the country as a whole.

For more information on today’s budget, please visit: https://www.gov.uk/government/organisations/hm-treasury

This week we hope you are able to enjoy the beautiful weather we’re currently having.  Summer is definitely the time when we all like to unwind and, as lockdown eases, maybe plan a break away.  It’s also a great time to think ahead about how you can have more leisure time in the future. Ensuring your financial matters are in order now may help you feel more relaxed about the future. 

Here are Hamnett Wealth Management’s top 3 financial matters to tackle this summer:

1. Take control of your pension arrangements

Whether you’re looking to set up a pension, save money on annual management charges or to reduce fees on expensive pension plans, make sure you review your current pension arrangements to see whether they are likely to help you achieve your retirement goals.

2. Review your investments

With fast changing global events affecting markets, it is imperative that your portfolio and pensions are strategically invested to profit from uncertainty and protect yourself from market shocks.

3. Question your current financial advisor

Do you know what they are charging you in fees?  Recent press reports have highlighted several cases of people moving their portfolios and pensions from a certain provider because they have been subjected to high fees, poor service and a lack of transparency

If you would like one of our Advisors to review your finances, are unsure of how your portfolio is performing, or want to look at alternate ways to get a good return on your savings and pensions, please call us on 0114 235 3500 for a free initial meeting.  Our office is operating as normal but we can also offer appointments by telephone or Facetime, Microsoft teams & Zoom.

The affect of Covid-19 is still being felt world-wide and financial markets have been volatile, as you would expect in times of uncertainty, with many sectors and funds being adversely impacted.

At Hamnett Wealth Management, our investment philosophy has always been to look to the long term.  We have never attempted to predict the immediate path of the stock markets and we are not about to start now.  Over the last 30 years, we have witnessed several global crises. Each one different from the last. However, what we have learnt from all of them is to keep calm and endure.

There will be those of you who want to ‘do something’ but often the best, and hardest, option is to do nothing. Whilst uncertainty can create anxiety, don’t be tempted to make any rash decisions.  We are in constant contact with the fund management groups and the over-riding sentiment that we are hearing is that Covid-19 will have an impact on all businesses – some more than others.   Therefore we are currently looking at the possibilities and focusing on those companies that can weather this storm and will continue to adjust our portfolios over time.

For help and impartial advice during this time, you could do the following:

Contact the Pension Advisory Service to discuss your situation – www.pensionadvisoryservice.org.uk

If you’re aged 55 or over, you could have a Pension Wise guidance session to fully understand your options – www.pensionwise.gov.uk

Talk with the money guidance experts at the Money Advice Service – www.moneyadviceservice.org.uk

There are plenty of free sites to visit where you can increase your understanding of pensions savings and investments. These sites all offer guidance which should not be misunderstood for advice.

If you would then like to have a chat with an independent financial advisor and get personalised financial advice, please call us on 0114 235 3500 for a free initial meeting.  Our office is operating as normal but we can also offer appointments by telephone or Facetime, Microsoft teams & Zoom.

There can be little doubt that these are uncertain times that will change our lives forever, but as 7IM Chief Investment Officer, Martyn Surguy, highlights: “We are prepared for what markets might throw at us and retain a strong conviction in the investment beliefs that have served us well through time.”

To find out more about 7IM’s views on the current environment and how they are managing your money, please visit: https://www.7im.co.uk/financial-intermediary/news-and-insights/INT-Investment-Update_Q2-2020

At Hamnett Wealth, we are continuing to work from home, hosting client appointments either via the telephone or by a video link. We remain confident that once the pandemic plays out, the markets will respond quickly. It is important to remember that when the financial landscape changes, to not respond would be a missed opportunity. We recommend you seek advice from a professional Independent Financial Adviser to review your investments and ensure that your current financial plan is still working for you.

Please contact us on 0114 235 3500 for a free initial review meeting.

The beginning of a new tax year brings changes to taxes, benefits and the cost of some essentials – and despite Covid-19, this year is no different.

There are many adjustments that will affect the money in your pocket.  Here is a run through of the tax rules and allowances for Isas and pensions at the start of the 2020/2021 tax year:

https://www.moneyobserver.com/news/new-tax-year-20202021-tax-rules-isa-and-pension-allowances

A new tax year is an excellent time to spring clean your financial arrangements.  Here’s our suggested to do list:

1. Maximise your tax-free saving allowances

If you’ve money to save, but haven’t used up your ISA allowance, make sure you take advantage of this tax-free form of investment.  Equally, ensure you’re making the most of allowances on your pension contributions to cut your tax bill.

2. Take control of your pension arrangements

Whether you’re looking to set up a pension, save money on annual management charges or to reduce fees on expensive pension plans, review your current pension arrangements to see if they’re likely to help you achieve your retirement goals.

3. Review your investments

With fast changing world events affecting markets, it‘s imperative that your portfolio and pensions are strategically invested to profit from uncertainty and protect yourself from market shocks.

4. Plan for the future

Safeguard against unexpected future events spoiling your final wishes by setting up a trust alongside your will.  Trusts come in a variety of forms and can help lower potential inheritance tax bills as well as give extra guarantees  that loved ones will be looked after.

Appoint a lasting power of attorney so loved ones can act in accordance with your best interests and wishes as they are now.  There are two different lasting powers of attorney to consider – one to look after your health and the other your finances.

Remember, when the financial landscape changes, to not respond would be a missed opportunity. We recommend you seek advice from a professional Independent Financial Adviser to review your current financial plan  and ensure it is still working for you now and will continue to do so in the future. 

Hamnett Wealth Management are following all the guidance and advice that the Government and Public Health England are giving and the team are now working from home and holding appointments via the telephone or video links.   Please contact us on 0114 235 3500 for a free initial review meeting.

We hope this blog post finds you, your family and friends well, healthy and safe. During this unsettling time, our main priority is keeping our staff, our clients and everyone’s family safe and protected. 

We are following all the guidance and advice that the Government and Public Health England are giving. The whole Hamnett Wealth team are now working from home and managing to hold appointments via the telephone or video links.   

As well as the daily worry of what is happening in the world, we also understand how stressful it can be for our clients when the stock market valuations fall so dramatically in such a short space of time.  That is why we believe that it is imperative to invest across a wide range of different asset classes, thereby reducing the volatility in the event of a downturn.  We also need to accept that there are going to be short term problems in the market.

However, we are confident that once the pandemic plays out,  the markets will respond quickly. The world will certainly look a different place from now on and the Government is looking to ensure that they can look after the nation in the short term.  They have done lots of things to support businesses so far, and yesterday announced a support package for the self-employed.  Full details of all the Government support available can be found at www.businesssupport.gov.uk

It’s important to remember that when the financial landscape changes, to not respond would be a missed opportunity. We recommend you seek advice from a professional Independent Financial Adviser to review your investments and ensure that your current financial plan is still working for you now and will continue to do so in the future. 

Please contact us on 0114 235 3500 for a free initial review meeting which we can do over the telephone or via video link.

Today Rishi Sunak shared the first budget since December’s General Election and his first since taking over as Chancellor from Sajid Javid in February. With the opening of the budget focused on the Coronavirus, we look at the other main points that may impact your finances:

Pensions tax breaks for higher earners are to be made more generous from April. The income threshold at which tax relief on pension contributions starts to shrink will rise from £110,000 to £200,000.

The bank base rate has been cut from 0.75 per cent to 0.25 per cent, reducing borrowing costs to the lowest level in history. This will reduce mortgage repayments for homeowners on tracker and variable-rate mortgages. Fixed rate mortgage repayments will remain the same. Overdraft and credit card lending rates are also set to remain the same.

The national insurance threshold will be raised from £8,632 to £9,500 from next month.

The lifetime limit on entrepreneur relief will be reduced from £10m to £1m.

Annual capital gains tax allowance for individuals will rise from £12,000 to £12,300 in 2020-21. The exemption for trustees will be £6,150.

The amount that families can save into a Junior Isa or child trust fund will more than double in 2020-21, from £4,368 to £9,000.

For more information on todays budget, please visit https://www.gov.uk/government/collections/budget-2020-tax-related-documents

Whenever changes are announced, it can be a good time to review your financial situation. If you’d like to speak with one of our advisers about what this budget might mean for you, please call us on 0114 235 3500.

March 2020 sees the return of Free Wills Month. This event brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple Wills written or updated free of charge by using participating solicitors in selected locations around England, Wales and Scotland.

Wills are an essential part of any financial plan, as they dictate how you wish for your assets to be divided upon your passing.

They are increasingly important if you have dependents who rely on you financially, or if you wish to leave assets to those outside your immediate family. A Will can also be a good way to limit the burden of Inheritance Tax that may be left after you’re gone.

An up to date Will written by a solicitor ensures your wishes are respected. It also avoids difficult decisions and legal complications for your loved ones. Free Wills Month allows you to provide for family and friends and leave a gift to your chosen charities too.

To take part in Free Wills Month please visit https://freewillsmonth.org.uk to register. You will then get access to the details of your local participating law firms.

We know that no matter how large or how modest, everyone has an estate and that you will want to control how it is administered to the people or organisations you care most about. Hamnett Wealth Management offers impartial estate planning advice that can help you plan ahead with confidence in order to minimise the tax burden for your family and loved ones in the future. We can also help you to create the right Trust to protect your assets and help your beneficiaries. Call us now on 0114 235 3500 for a free consultation where we can assess your needs and explain how we can help.

The Guardian recently featured a useful article on how to sort out your pension if you are self-employed.

Most of the UK’s 5 million self-employed workers are not saving for their retirements. Should they take out a long-term savings plan? Do they buy to let? Or continue to invest in their business. The article considers all of the options available.

You can read the article in full here: https://www.theguardian.com/money/2020/jan/11/self-employed-what-to-do-about-pensions

Hamnett Wealth Management offer unbiased expert pension and retirement planning advice. Our professional, qualified Independent Financial Advisers will look at whether your current pension arrangements are likely to help you achieve your retirement goals. If not, we will recommend actions to take and the likely effect of them in order to secure your financial future.

We can also review all of your existing arrangements and look at the performance of the underlying funds, the charges being levied and assess the projected income at your chosen retirement date. Call us now on 0114 235 3500 or email us at: advice@hamnettwealth.com to arrange a free consultation.