Lifestyle

While it might seem some way off, preparing for the end of the tax year now can help you make the most of allowances. On 5 April 2022, the current tax year

2022 may only have just started, but now is an excellent time to start thinking about the end of the tax year. Planning now can help you make the most of allowances and reduce how much tax you pay.

The 2021/22 tax year will end on 5 April 2022. This date is when many tax-efficient allowances will reset. In some cases, it will be your last opportunity to use them, although which allowances should form part of your financial plan will depend on your circumstances. Among the allowances that will reset on 5 April 2022 are:

• The ISA allowance, which allows you to save or invest up to £20,000 each tax year tax-efficiently
• The pension Annual Allowance, which is the amount you can tax-efficiently save into a pension each year
• The Dividend Allowance, which is the amount you can receive in dividends each tax year before you will need to pay tax
• The Capital Gains Tax annual exempt amount, which is the amount you can earn in profit when selling certain items before tax is due.

For almost two years, the Covid-19 pandemic has had a significant impact on lives around the world. From health concerns to restricting social gatherings, the pandemic may have led you to question plans you’ve previously set out.

According to a survey conducted by Aviva, almost 6 in 10 people agree that the pandemic has made them question what’s important in life. Furthermore, half have said it has changed their priorities. More than half (53%) of adults in the UK have suspended or cancelled a planned life event during the pandemic, such as buying a new home, getting married, or starting a new business.

For some, the pandemic has provided valuable time to think about what is important to them. 4 in 10 say they now feel like they can take more control of their priorities. However, the same proportion said they feel like they have less control than they did before.

The start of a new year is the perfect time to review your finances. It can help you move towards your goals and feel more secure financially. Taking action to improve your financial wellbeing can support your overall wellbeing now and in the future. Here are seven resolutions you could make to have a positive impact on your finances.

1. Make a budget and keep track of your spending

Setting out a budget can seem dull, but having one that clearly sets out all your expenses and goals can help keep you on the right track. Budgeting doesn’t have to mean cutting back but can help you focus on what’s most important to you. That may mean putting money away for your child’s future or for travelling in a few years. Just as important as setting out a budget is reviewing it regularly.

2.

Sustainability has become a key topic for governments, businesses and communities around the world. If you want to reduce the impact your lifestyle has on the environment, it can be difficult to know where to start. Our latest guide looks at 10 changes you can make to your life to reduce your carbon footprint, limit waste, and support sustainable projects.

Among the steps the guide covers are:

• Making your home more energy-efficient
• Choosing a renewable energy supplier
• Changing your diet
• Investing sustainably
• Offsetting your emissions.

Download 10 ways to lead a more sustainable life to learn more.

If you’d like to discuss making your finances more sustainable, please contact us.

From the State Pension triple lock to the cost of living, Covid-19 is affecting economic figures. As the economy reopens, you may have noticed the price of things has risen. From your grocery shopping to days out, inflation means the cost of living is rising and could reach 4% this year.

A small amount of inflation is often seen as a good thing. Prices gradually rising can encourage demand, but higher levels of inflation can suggest demand is outstripping supply and that the economy is running into difficulties.

The Bank of England carefully monitors inflation and can take steps to keep it in check. It has a target of 2% inflation each year, but the inflation rate for 2021 could be double this.

The pandemic impacts the cost of living

According to the central bank’s latest Monetary Policy Report, inflation is expected to temporarily reach 4% in the near term.

Financial advice is a complex topic and often requires a professional planner to get right. The very idea of seeking it can seem daunting, with many people unsure of where to start or who to go to.

A recent trend has seen an increase in the viewership and production of content on social media that gives various forms of financial advice.

CNBC report that nearly half of teenagers are learning about investing from some form of social media. The trend, which is especially prevalent on TikTok and Instagram, is thought to have been partly linked to the GameStop saga in January 2021.

Since the events in January, the subreddit responsible (r/WallStreetBets) now has a userbase of more than 10 million, more than double what it was at the start of 2021. Investment News report that TikTok videos tagged with “#personalfinance” have accumulated a total of 3.5 billion views.

When you’re making financial decisions, one of the challenges is understanding the impact that it could have on your long-term finances. Not understanding the impact means you’re unsure what you should do, or when you do make a decision, you still won’t have full confidence in it. Financial planning can help you weigh up the short- and long-term implications.

Cashflow modelling is just one of the tools that can help create a plan you can rely on when working with a financial planner. Even if you’ve used cashflow modelling before, you might not be aware of how it works or how it adds value to your plans. Read on to find out.

What is “cashflow modelling”?

Cashflow modelling is used to forecast your financial future. It can help you understand how your wealth and income may change, whether you want to look 5 years ahead, or 30.