March 31, 2011
Filed under: Business Finance — admin @ 9:42 am
This is an advertising feature for Barclays
Even an experienced saver can find the technical language around ISAs and tax-efficient savings daunting. Talk of investment ISAs, plus fixed-term and fixed-rate ISAs is enough to give anyone a headache.
The good news is that once you become familiar with a few key phrases and financial rules, ISAs are quite straightforward. And they remain one of the most tax-efficient ways to save and invest money.
Investment ISAs
Investment ISAs are different to Cash ISAs.
By using an investment ISA (also known as a stocks and shares ISA) you’re putting your money in longer-term investments such as individual shares or bonds – or pooled investments such as open-ended investment funds, life assurance investments or investment trusts. Investment ISAs have the potential to outperform cash savings but there are no guarantees and the value of your investment can go down as well as up.
How much can I invest?
The current ISA limit is £10,200 per tax year, of which up to £5,100 can be saved in cash with one provider. The rest can be invested in an investment ISA with either the same or a different provider, or you can choose to invest the whole £10,200 in a investment ISA without any investment in a cash ISA.
ISA limits will be increased annually in line with the Retail Prices Index. This means that the annual ISA limit will increase to £10,680 (£5,340 in cash) for the next tax year, which starts on 6 April 2011 and ends on 5 April 2012.
If you choose to invest the whole allowance in an investment ISA, this can only be with one provider in any one tax year.
Tax and ISAs
Tax rules for investment ISAs are slightly different to cash ISAs.
Investment ISAs are classed as being “tax-efficient” rather than tax-free, because although you don’t pay capital gains tax and income tax, but the tax credit on dividend income received is not reclaimable.
Eligibility for tax relief within an ISA, and the benefit of this to you, depends on your circumstances, and the rules around ISAs could change in the future.
“Open ended” and fixed-term investments
Open-ended funds do not have a fixed maturity date when you can cash them in, but they are generally designed to be held for the medium to long-term (usually five to ten years. Their value at any particular time will always depend on how well the underlying investments perform, so if this has been poor the value could be less than the original amount invested, irrespective of how long it has been held.
Fixed-term investments are usually designed to be held for five or six years. If you access this money early you could get back less than originally invested.
It’s important to think about your attitude to risk before investing in an investment ISA because the returns are not guaranteed, and you may end up with less money than you originally put in because the value of investments can go down as well as up.
For further information on our best ISA deals, visit www.barclays.co.uk.
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
Barclays is a major global financial services provider engaged in retail banking (bank accounts and instant access savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides commercial loans, online loans, home insurance, life insurance, a mortgage calculator, guides on how to buy shares and other services for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.co.uk.
March 25, 2011
Filed under: Marketing — admin @ 5:20 pm
Watch a special, longer version of the newest Aviva Motor insurance advert here with Paul Whitehouse and his Cuban dancing.
March 24, 2011
Filed under: FSB — Alan @ 3:02 pm
The Financial Services Board (FSB) deputy director of insurance, Jonathan Dixon, reported in Johannesburg, “Customers should be dealt with evenly and we need a protocol established to ensure it is carried out. There will be a shift in how banks interact and relate with their customers, which requires more direct regulating oversight.”
Customers’ base of security in their relationship with banks will be strengthened through the Treating Customers Fairly framework (TCF). This signifies a change in the culture. It is an endless struggle against companies that are constantly seeking to circumvent these measures, though.
“This is an ongoing struggle that we must push through until we achieve the standard of measures that gives customers back their confidence that we are protecting their rights in the relationship with financial institutions.”
Our initial launch into these new areas requires the FSB to shift from a passive to an active methodology. We must take the initiative before the problems compound. That is what the TCF is all about, but it also determines what our actions will be, rather than waiting for something else to happen first.
“Companies must see us enforcing the restrictions when they are tested. The institutions who flaunt fair treatment of their customers must be adequately punished to reduce the chance of repeating it.”
March 23, 2011
Filed under: Small Business News — Alan @ 9:23 pm
BiP Solutions, known for business intelligence, started a revamped Supply National SME Engagement Programme (www.supplytender.co.uk ), targeting start-ups and small businesses, is a free service. The programme is designed to put the business intelligence in the hands of small businesses so they can compete in the public sector procurement marketplace.
Business growth and market presence are enabled by this programme at a time when the small business is concerned with costs. They will be given access to events, news, contract opportunities, and relevant resources for their sector.
There are three sections to the programme. Events is the section that gives booking information for events that will get a business to the point where they are tender ready. The Contract Opportunities section allows businesses to locate opportunities to win contracts in their respective sector. Lastly, the News and Resources section provides the right information to allow the business to adequately prepare itself with best practices and to keep abreast of market developments.
Ron Burges, CEO of BiP, said, “We are happy to launch our newest version of the programme that helps start-ups and small businesses. This provides a service that did not exist. our roster includes 30,000 business, but we are eager to include every start-up and small business in all of the UK.”
Filed under: Uncategorized — Alan @ 3:12 pm
In order to help more small businesses the Invest NI has undergone some radical changes because of recommendations on the Independent Review of Economic Policy as explained by Arlene Foster Enterprise Minister shifting the organisation to a partnership role to boost exports, from its original client based approach.
They will be able to fund more money to businesses that want to move into new markets and those that want to grow. This came at an event hosted by the Federation of Small Businesses (FSB) in Belfast.
Saying that a wider business base will enable Invest NI to do even more and helping the smaller business because when she first starting working in the department many small businesses felt they were not Invest NI clients so they could not get help because of the perception that Invest NI had adopted a hands off approach to small business.
The goal is to make Invest NI a place where one can get the advice and support needed. There will be business and telephone advisory centres established from working with councils and Local Enterprise Authorities to help back up the existing nibusinessinfo.co.uk site.
The belief is that these facilities are going to give many businesses throughout Northern Ireland advice and support needed and in turn will help to give the economy a needed boost. Over the past 12 months startups and SME’s in Belfast had created over 600 jobs and that the Invest NI announcement makes for further importance of the small business.
The minister also mentioned the small businesses were Northern Ireland’s economic backbone and had to be helped so they can further help the country by creating new jobs and boosting the local economies.
March 21, 2011
Filed under: Business Advice — admin @ 9:05 pm
Advertising Feature
Since the launch of the first credit card in 1966, the credit card market in the UK has boomed. There are now dozens of providers offering hundreds of different cards, each suitable for different kinds of customer. The way you use your credit card will determine the type of card that’s best for your needs. Read our top tips for finding a card that is right for you:
‘I’m going to pay off the balance in full every month’: In this case, as most credit card providers offer interest free purchases if you pay your balance in full and on time each month, interest rate charges on purchases shouldn’t occur because you will be paying off the balance straight away. Look for cards that have extra incentives such as loyalty points, cash back or discounts on particular products or services, and start being rewarded for using your card.
‘I won’t be paying off the debt every month’: The interest rate is key here, and the lower the better. Borrowers should try to pay as much of the debt off as possible every month and certainly more than the minimum payment. Even if you are reducing the balance, it’s well worth ensuring you are on the lowest possible rate. It’s not uncommon for some card companies to change their rates, so keep an eye on what you are paying
‘I already have a sizeable sum on my credit card and I’m paying interest on it’: Many credit card providers offer a balance transfer deal where you can transfer an existing balance to a new card and not pay any interest for a specified period of time. There’s usually a fee to do this, typically 3-4% of the balance you are transferring, but this could be significantly cheaper than continuing to pay interest on the balance, helping you to pay back the debt quicker and more cheaply.
You should check with the new provider how payments you make to your card are allocated. Since January 2011, all credit card providers are required to allocate payments to balances attracting the highest interest rate first, helping customers to pay off debt quicker.
‘I’m getting the card for one big purchase’: Some credit cards will offer an interest-free period on new purchases for a certain length of time, which means that if you are making a large purchase you will have the opportunity to repay the debt at no cost over a few months. However, if you don’t think you’ll pay off the debt in full by the end of the interest-free period, then the interest rate after the incentive period ends will become important.
‘I’m a frequent traveller’: If you regularly carry out transactions abroad, look for a card that has an incentive to reduce the costs associated with using your card abroad. Many credit cards levy a foreign exchange fee for transactions made overseas. Some charge cash advance fees too, so it will cost you even more if you use a cash machine in a different country. There are some, however that don’t charge a fee for either – although the interest rate for cash withdrawals may be higher – and some, even if they do have an annual fee, will also provide you and your family with worldwide travel insurance.
March 19, 2011
Filed under: General — Alan @ 6:58 am
The driving force in the economic recovery in the UK will be the SME sector says Cisco in a published research report and that it is important for the 2012 Olympics to kick start the UK economy.
The Business Heroes Barometer, published by the networking giant, says that the opportunities that will come from the Games have been recognized by over 40% of the small businesses in the UK and an almost equal percentage know the key role the Games will play in helping the economy in London and beyond.
The worry of a double-dip recession may have been scotched after the report found that sales had increased in the last 12 months in 44% of the SMEs according to David Critchley, the Cisco UK and Ireland SME director. Adding it shows a testament to their role as the kick starter of the economy by having almost half of the SMEs show an increase in sales when there was talk of nothing but negativity.
IT and network infrastructure in 2011 were planned by 55% of firms in the survey with video conferencing interesting 35% and 25% interested in changing to a cloud environment with 72% planning technology investing.
March 18, 2011
Filed under: General — Alan @ 5:33 pm
Take One Small Step is Barclay’s annual competition where wannabee entrepreneurs and small businesses have the chance to win £50,000 each by presenting and bringing to fruition Britain’s best business ideas. A shortlist of 27 business ideas representing nine different regions, with three from each region will be made and the details will be available on takeonesmallstep.co.uk
There will be nine winners of £50,000 to be used in their business along with mentoring and business advice from Barclays and the public will be able to vote for who the want. Louise Hall and Claire Heafford, of The Papered Parlour, won £50,000 for their South London craft and design studio, last year.
In order to offer craft workshops from dressmaking to photography and provide space for artists the two opened the business in May 2009 and they said that by winning the contest they were able to take their business to the next level and promote our profile. The competition is a celebration of people with passion and ambition with a great business idea.
March 15, 2011
Filed under: FSB — Alan @ 3:35 am
The Federation of Small Businesses (FSB) states the Government need to give added assistance to small business owners and the self-employed. The FSB has requested the coalition Government to reduce business red tape and proposes that tax breaks be offered to small, expanding enterprises willing to employ more staff.
John Walker, national Chairman of the FSB commented that he believed that the Government, through the tax system, should support the self-employed and encourage those with aspirations to be self-employed. During this time when tax breaks are not substantial and are scarce, careful tax breaks should be directed towards those wishing to expand and employ or hire more staff.
He emphasised that accurate and correct taxation is to be paid by all businesses, but HM Revenue and Customs must appreciate, with the extensive taxation book the UK holds, infrequent errors will occur in small businesses, the majority not having Finance Departments. Smaller firms do not have the understanding and skill in bookkeeping and therefore should be given added assistance to keep their files up to date.
March 14, 2011
Filed under: Employees — Alan @ 3:37 am
In an attempt to help small businesses manage well being and mental health of their workforce, Mind and the Federation of Small Businesses (FSB) are teaming together to publish guidance. Over 15% of British workers annually are affected by conditions like anxiety, stress and depression and the cost to businesses can exceed £26 billion annually.
The published guidance will include show how to make cost effective and some non-bureaucratic adjustments that will help the staffs well being and of course, save money. Since small businesses are flexible for example; over 47% have part time staff, almost 30% have flexible hour staff and 27% have home based staff.
Small firms, those employing less than 49 people represent 99% of all businesses in the UK of which FSB says that the smallest firms, those with 10 or fewer employees, 33% work part time while less than 15% of those in big business only work part time.
The FSB with Mind have adapted the existing guide and have given non-burdensome and common sense advice to small business owners to help manage mental health in the workplace.
Their guidance recommends include; seeing what adjustments may be needed in the workplace by talking to employees, with peer support and regular catch-ups promote a supportive environment help support the role of the employee by initiating an informal mentoring scheme and including the employee, where possible in the planning of the workload.
The guide suggests, even though small business has a great relationship with their employees, ways to increase employee performance, save the business money, all the while increasing productivity this because the small business environment is so flexible and so much like a family unit.
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