Corporation Tax hike: Here are the essentials business owners need to know

The rate of Corporation Tax your business pays may have changed for the 2023/24 tax year. It could affect your profit margins and long-term plans, so it’s crucial you understand what the new rates could mean for your business.

After a series of announcements and U-turns in 2022, you may not be fully aware of the changes to Corporation Tax.

Last year, former chancellor Kwasi Kwarteng said he was reversing a planned Corporation Tax hike, and would, instead, be slashing the rate. Like many changes announced in the mini-Budget, this was quickly backtracked. With Rishi Sunak as prime minister, the previously announced rise in Corporation Tax went ahead at the start of the 2023/24 tax year.

So, what do the changes mean for businesses?

Corporation Tax rises to 25% for some businesses

While Corporation Tax has increased for the 2023/24 tax year, it isn’t something that will affect all businesses.

5 essential money lessons that could improve your child’s financial independence

Between 12 and 16 June, Young Enterprise runs a national campaign across primary and secondary schools with the aim to give children the skills and knowledge necessary to understand finances to thrive in later life.

Taking place every year since 2009, My Money Week has already taught hundreds of thousands of young people how to budget, save wisely, and manage credit card debt.

My Money Week is the perfect time to teach your children about money and improve their financial literacy.

So, please continue reading to discover five helpful lessons that could improve your children’s financial independence and ensure they’re prepared for anything life throws their way.

1. How to manage their money online

These days, most banking is done digitally, so there’s a good chance that the current generation will primarily manage their finances online.

5 inaccurate expert predictions that prove why you shouldn’t try to time the market

When you look at investment performance with the benefit of hindsight, you may think you could predict how markets will move. Yet, markets are unpredictable and expert forecasts prove how difficult timing the market is.

Every investor has heard the advice “buy low, sell high”. So, it can be tempting to try and guess how investments will perform in the short term to make the most of your money. But history shows us that trying to time the market is impossible.

Even experts who have far more resources at their disposal sometimes get it wrong, so trying to predict the market and economy could mean you miss out. Here are five examples of when expert predictions completely missed their mark.

1. 1929: The market has reached a “permanently high plateau”

Irving Fisher is considered one of America’s greatest mathematical economists.

The FTSE 100 reached an all-time high despite recession fears

Despite concerns the UK will face a recession in 2023, the FTSE 100 hit a record high in February. Read on to find out what influenced the market and the valuable lesson investors can take from the news.

The FTSE 100 is an index comprised of the 100 largest companies listed on the London Stock Exchange. On 3 February 2023, the index hit a new high of 7,906.39 and exceeded a record set almost four years ago in May 2018. Just days later the FTSE 100 surpassed the magic 8,000 barrier, setting another new record.

After a difficult few years, due to the Covid-19 pandemic and war in Ukraine, it was good news for investors.

But the timing may seem a little strange. After all, pick up a newspaper and you’ll find stories about the cost of living crisis, high inflation, and the risk of the UK falling into a recession this year.

Soaring inflation drives up retirement costs by almost 20% in just a year

High inflation means retirees could need to increase their budget by almost 20% to maintain the same lifestyle, research suggests. If you’re drawing an income from your pension, it’s vital you understand whether withdrawing more is sustainable.

The UK experienced high inflation throughout much of 2022, and inflation remains above the Bank of England’s target of 2%. This has stretched many household budgets, but retirees may find it more difficult to weather a period of high inflation.

As your income may not increase, or you deplete assets more quickly, you could face more financial uncertainty later in life.

A retired couple needs an annual income of £34,000 for a “moderate” lifestyle

The Pensions and Lifetime Savings Association (PLSA) has updated its Retirement Living Standards to reflect recent high inflation. It found that some retirees will need to increase their budget by 19% just to maintain the same standard of living they enjoyed at the start of 2022.

4 valuable ways a financial planner can help you tackle “overwhelming” pension information

Do you find pension information confusing? You’re not alone; 50% of people in the UK describe the information they receive about their pension as “overwhelming”, according to a Standard Life study.

Fortunately, there are places where you can seek guidance or advice. The survey found 83% of people think financial advisers offer useful support.

If you’re not sure if your pension is on the right track, a financial planner could help put your mind at ease. Here are four reasons why.

1. A financial planner can cut through jargon

Pension information can be filled with jargon that makes it difficult to understand exactly what it is saying.

From “annuities” to the “Tapered Annual Allowance”, a financial planner could help you cut through confusing terms and take the time to explain what they mean and, more importantly, whether they’re relevant to you.

Identity theft: Discover 5 useful tips to protect yourself as cases double

A survey from Nationwide suggests that many people aren’t being as diligent at guarding their personal information as they should be, despite the number of identity theft cases doubling between 2021 and 2022.

The poll found that 11% of women and 23% of men have had their identities stolen. Falling victim to identity fraud could cost you money, and affect your credit score and finance options, and it can go unnoticed for years.

Identity theft happens when criminals access enough of your personal information, such as your name, date of birth, and address, to impersonate you. With the details, they may borrow money in your name or take over your accounts.

Scammers could also use these details to trick you into believing you’re speaking to a trusted organisation, such as your bank, to encourage you to make payments or provide further information.

4 reasons you may want to boost your ISA before the tax year ends

You have until 5 April 2023 to make the most of your ISA allowance for the current tax year. If you want to boost your savings or investments, adding more to your ISA could make sense.

For the 2022/23 tax year, you can add up to £20,000 to adult ISAs. The allowance is for each individual. So, if you’re planning with a partner, you should consider making use of both of your allowances.

ISAs are a popular way to save and invest. According to government statistics, around 12 million adult ISAs were subscribed to during the 2020/21 tax year. In total, the cash value of ISAs stood at around £687 billion.

If you’ve yet to make use of your ISA allowance for the 2022/23 tax year, here are four reasons you should review your deposits.

1. You could access a higher rate of interest with a Cash ISA

If you’re building up your savings, using a Cash ISA could mean you benefit from a higher interest rate when compared to regular savings accounts.

How to set out goals to achieve success in 2023

What do you want to achieve in 2023? From improving your fitness to learning a new skill to support your career goals, setting out what you want to achieve this year can help you lead the life you want.

While many people set a new year resolution, many are forgotten about and overlooked within a matter of weeks. So, what can you do to be successful this year? Here are six practical tips that could help.

1. Choose goals that will add value to your life

Rather than simply choosing a common goal, really spend some time thinking about how you’d like to change your life.

Focusing on the value that goals could add can provide the motivation you need to stick to your plan. It also means the steps you are taking could improve other areas of your life and boost your wellbeing.

61% of Brits feel stressed about later-life planning. Here are 5 things you can do to boost your confidence

The majority of Brits feel stressed about planning their retirement, a survey from Aviva finds. While later-life planning can seem complex, taking control of your goals and pension during your working life can mean you feel more confident.

The survey found that 61% of Brits feel stressed when they think about retirement planning. Unsurprisingly, given the current economic uncertainty, money is a big concern. The research found:

  • 71% of people worry about whether they have enough money set aside for retirement to do all the things they want to do.
  • 65% are concerned about how long their pension will last.
  • 59% are unsure if they are paying enough into a pension.

If you’re worried about your retirement, here are five steps you can take.

1. Understand how your pension will grow during your working life

The research found that younger generations are the most concerned about retirement.

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