Wealth management company raises funds to support Families at children’s hospice

Children’s Hospice South West (CHSW), with two City-Centre shops was delighted to receive funds of over £5700 presented by Wealth Management Company, Brewin Dolphin, Exeter office.  The money will go towards the general care budget and could fund the food bill at the Barnstaple hospice, Little Bridge House, for six weeks.

Photograph taken in Kitchen of Littlebridge House - Jon Crompton Divisional Director Brewin Dolphin Exeter Office / Naomi Dymond Corporate Partnerships Fundraiser for Little Bridge House, Children's Hospice South West / Rhiannon Cox - Administration Manager, Brewin Dolphin Exeter Office

Children’s Hospice South West helps and support children and their families who are living with life-limiting or life-threatening conditions: every day is dedicated to making the most of every moment. Because life is unpredictable, the charity is there day and night, all year long - whenever they are needed.

Brewin Dolphin’s Exeter Office chose CHSW as their ‘Charity of the Year 2014’, and the funds were raised from a number of events and activities organised throughout the year.

Jon Crompton, Divisional Director - Brewin Dolphin Exeter said: “We were proud and delighted to support CHSW as our Charity of the Year for 2014.  It’s a very worthy and deserving cause and it has been a fun year of events for both the team and our associates who helped us to fundraise.  It is wonderful to think that the monies we have raised over 12 months could help to feed the families at Little Bridge House for six weeks and will make a real difference for the charity.”

Children’s Hospice South West has three hospices based in North Devon, Bristol and Cornwall offering tailor-made family-friendly facilities.  The charity is dedicated to making the most of short and precious lives, providing the best possible hospice care for life-limited children and their families in the South West.  CHSW delivers a range of services including short breaks, specialist play, music therapy, activities for siblings, palliative and emergency care, end of life care, and bereavement support.

Naomi Dymond, Corporate Partnerships Fundraiser – CHSW says: “We were absolutely thrilled to be chosen by Brewin Dolphin’s Exeter office as their Charity of the Year and it has been fantastic to have their support.  Everyone got fully involved and we have thoroughly enjoyed following the team’s many fundraising activities throughout the year.  On behalf of all the children and families who receive our special care, we would like to thank everyone at Brewin Dolphin Exeter for an incredible year of fundraising.  We rely almost entirely on voluntary donations and without the commitment and generosity of businesses like Brewin Dolphin, we simply couldn’t continue to be there for the life-limited children and families who need us the most.”

Brewin Dolphin's Views and Forecasts for 2015

Tim Walker Head of Brewin Dolphin in Exeter said “We anticipate a significant year in 2015 – the unpredictable election and talk from all sides about more devolution will give us much to consider and be sure any changes will advantage our clients and our business here in Exeter.  Whilst we are impressed with the Government’s reform of savings to date, now is perhaps the time for some stability as too many short term changes to long term savings plans, can dent the confidence that savers need to invest for their futures.”

Tim Walker Head of Office and Divisonal Director at Brewin Dolphin in Exeter

David Nicol, Chief Executive of Brewin Dolphin said, “2015 sees the curtain open on the most uncertain political landscape in living memory - and there is very little idea of how this drama will play out. In this context, Brewin Dolphin is doing all it can to grow and protect its clients' wealth so that they will be in the best possible position to withstand whatever politicians deliver. The biggest challenge to our industry is to ensure that savers can benefit from the veritable savings revolution that starts on Flexiday in April and for the years to come.”

Stephen Ford, Head of Investment Management said, “We already know that the financial services industry begins this year with one of its biggest challenges yet. Wide ranging and huge changes to pension rules mean that financial advice will be of more importance than ever, and with questions remaining about how simplified advice will be implemented there has never been a more important time for this industry to make its voice heard.  Collectively we have to ensure that everyone understands the significance of these changes and that the State won’t be able to support us all to the same extent in future – and so savers need to make good decisions in increasingly complex areas. Brewin Dolphin is responding to these needs by reshaping our proposition to ensure we provide advice on the right products and have the expertise to do the best for our customers.”

Guy Foster, Head of Research said, “We have below consensus expectations for global growth next year as we see a combination of policies which is unhelpful for growth. Growth is clearly still very weak in a number of major economies while some others are seeing their growth faltering. The response still comes only from central banks, not from governments. We see an increasing number of economies lowering interest rates and potentially employing unconventional measures in 2015. In many cases, however, we are concerned that these measures won’t be significant in stimulating borrowing because underlying demand remains tepid. In fact the aggressive targeting of inflation at all costs risks being net contractionary force, a form of beggar they neighbour policy of competitive devaluation.

From an investor perspective the conditions remain benign. Away from policy errors, we are seeing a synchronous expansion in employment across the majority of major economies and at the same time falling input costs are going to help margins and disposable incomes. As a result we expect to see weaker growth, and consequently weak revenue growth but reasonable earnings with modest downgrades.

Policymakers trying to fight inflation is a recipe for continued strength in the bond markets and continued valuation expansion as all invested assets re-rate upwards. We see this combination helping the FTSE to a level of 7000 which would represent a capital gain of 11% from Friday’s closing price of 6,300. Added to which we expect shares to yield some 3%, more than bonds and instant access bank accounts which gives a total return of 14% but recognises the increased threat to some dividends.

In the UK we see the election as being unusually troublesome for markets. In general political risk is exaggerated and fears of a Labour victory or a hung parliament have not resulted in trauma for markets. We project that the Conservative will be the largest party in parliament although it will be close. More importantly, however, we don’t believe the Conservatives or Labour have the scope to achieve a majority together or with their current coalition partners, as such a confidence and supply arrangement looks likely which has scope to weigh particularly on the pound. Gilts would likely remain well-bid in that scenario although it might weigh on risk appetite in the equity market to a modest extent.

Interest rates will not rise in the UK until after the election and, given the MPC’s tendency to change monetary when the Bank of England’s inflation report is issued, August looks to be the first available opportunity. There remains, however, real doubt over whether this will prove possible. We believe the MPC would like to prevent consumers from becoming hooked on low interest rates. One rate increase is likely to be the worst the UK should fear in 2015 and, if headline inflation remains weak, even that will be difficult to achieve.

Rates are likely to rise in the United States at the Federal Reserve’s June 17^th announcement. Again the pace will be modest and as New York Fed Chief William Dudley remarked the market’s reaction will determine what happens thereafter. This looks like another year of headwinds for emerging markets and strong bond markets with reasonable potential for equity markets in general.”

Nick Fitzgerald, Head of Financial Planning said “2015 will also be momentous for financial planning. First, it is essential that all pension providers are ready for Flexiday in April and second, we expect there will be two more signals from the Chancellor of sweeteners to come if he is re-elected.

Firstly, that the individual Inheritance tax threshold will be increased to £500,000 (£1m per couple) and as the threshold for Higher Rate Tax will rise to £50,000 by the end of the decade, the top rate of tax will actually reduce from 45% to 40%, corroborating many studies that reducing the topline of tax, actually increases the Exchequer’s tax take.

We predict the journey to introduce both measures will begin next year and be concluded by the end of the next Parliament 2020.

However, we do expect that such incentives may be offset by reduced or even flattening of pension tax reliefs – so invest now while stocks last.”

Research predictions for 2015: 
Brewin Dolphin's Stock and Fund Picks for the New Year
Brewin Dolphin’s predictions for commodities in the New Year

Disclaimers
The value of investments can fall and you may get back less than you invested.
No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact us.
Past performance is not a guide to future performance.
Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change.
If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset.
The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

Brewin Dolphin’s Charity Investment Services Grows

Brewin Dolphin one of the UK’s leading Wealth Managers, with an office in Exeter is delighted that the popularity of its investment services for charities continues to grow, seeing their ranking rise to 7^th largest charity investment manager in the UK in this years’ edition of the Annual Charity Fund Management Survey. 

Richard Pike, Charities Investment Manager at Brewin Dolphin in Exeter

Brewin Dolphin have charity specialists in every region, the firm manages a large number of charity portfolios, as charities seek specialist advice and portfolio management with their specific objectives, personally delivered by the team managing their funds.

Richard Pike, Charities Investment Manager at Brewin Dolphin in Exeter said, “We are really pleased to have risen further up the league table of charity managers to 7^th place, up from 11^th place 5 years ago.  The market conditions of recent years have required charity investors to consider the role of their investments and their policies carefully and we have worked hard to provide an appropriate portfolio solution for our charity clients in the South West.”

https://www.brewin.co.uk/offices/exeter

Brewin Dolphin Exeter's Autumn Statement – “Go For Growth”

Ahead of the autumn statement next Wednesday, Brewin Dolphin urges the Chancellor to focus upon growth, which includes creating a new Business EIS, pushing up the JISA allowance and an end to tinkering with pensions.

Tim Walker - Divisional Director and Head of Office, Brewin Dolphin Exeter

“Britain needs to be allowed to grow,” says Simon Blowey, Divisional Director of Financial Planning. “By softening HMRC’s stance on legitimate tax planning, allowing the pension system to settle down a bit so that savers can trust it and creating and supporting schemes that encourage taxpayer investment in British business, we believe the government can help it to do so.”

Tim Walker Head of Brewin Dolphin in Exeter, said: “The majority of our wish list would be a huge Christmas present for British families, much of which would cost the Chancellor very little. Let’s hope he listens before next week’s statement.”

Simon Blowey, Divisional Director Financial Planning at Brewin Dolphin, details his ideas for growth:

Surety on pensions:

“The welcome and revolutionary changes to pensions need time to bed in, be properly understood and simply communicated to savers – especially those nearing retirement who face some bewildering choices,” he said. “Let’s see some assurances from the government that there are no further big changes on the horizon.”

A less aggressive attitude from HMRC:

“A general anti-abuse rule has been established, but there is a danger that HMRC is still treating statutory reliefs such as EIS, VCT and BPRA planning with suspicion and this has investors running scared,” he said. "The Treasury needs to encourage, rather than hinder or frighten investors in such areas, and focus upon the wider public benefits as the underlying investments encourage huge economic generation.”

An increase in the Inheritance Tax threshold:

“With a nil rate band (NRB) increase of less than £100k in the last 15 years, 1 in 20 households are caught by IHT. By 2019 – now only four years away, it is predicted to be 1 in 10 households – scarcely the rich minority the tax was meant to hit. We would like to see the inheritance tax NRB raised to £500k per individual.”

Increasing the JISA allowance to £15,000:

“The current JISA allowance of £4,000 a year is far too low to encourage real saving for university fees,” Blowey said. “Increase the JISA allowance to match the NISA. This will encourage parents to really save for their children’s future – when this cash will be much needed.

A continuation of reliefs aimed at new business growth including:

A Business EIS

“A scheme similar to the individual EIS scheme would free up nearly half a £trillion in cash sitting on big company balance sheets and encourage investment in smaller companies. Such a scheme would bring invaluable knowledge and experience from within big business, as well as the cash investment,” he said. “The Centre for Entrepreneurs wants to promote corporate venturing by creating incentives for large firms to draw on their combined £488bn of capital for investment in SMEs.”

A rise in the VCT threshold:

“An increase in the VCT threshold from £200k to £500k would further encourage ‘investment in growth’ in smaller companies, so that UK Plc can re-energise economic growth.”

An extension of the SEIS scheme:

“With the successful Seed Enterprise Investment Schemes scheduled to come to an end in 2015, we would welcome a 5 year extension to tie-in with the next Parliament, avoiding political uncertainty. We would like to see an increase to the individual investor limit to £150k and company raised investment to £250k, demonstrating The Treasury’s support for entrepreneurial start-ups.”

More business-friendly measures:

“We would like to see the creation of a ‘Silicon Roundabout’ broad brush of business-friendly measures, to continue supporting the organically growing UK technology and science entrepreneurs. This would cement the UK’s position of global importance alongside the US’s Silicon Valley, attracting high value jobs to this growing sector.”

Other Brewin Dolphin experts suggest the following changes.

Stephen Williams, Divisional Director UK Equity Research suggests the following measure to ease the property market for new entrants:

 “We’d like to see the Chancellor radically reform stamp duty. It should be paid on the sale of a house, rather than the purchase, making it easier for first-time buyers to find sufficient money to buy a house and capped for the over-65s, to allow them to downsize more easily - which would in turn free up homes for struggling families.”

Ian Armstrong, oil and gas research expert wants to see changes in the tax position in the North Sea.

“The North Sea has been a political football and the Chancellor has made numerous changes to appease the Scots (as well as increase the Treasury’s coffers) so it is about time that he sorted out an attractive medium / long term tax regime,” he said.

“The larger producing fields, which get fewer special investment incentives, are hit with higher corporation tax than other UK companies (30% versus 24%) in addition to Petroleum Revenue Tax. This means they are effectively paying 81% marginal tax; making the North Sea one of the least attractive operating areas in the world.”

“A fuel price escalator should be re-instated to plug the gap in falling tax revenue from the North Sea if the Brent price falls to $75.

While Nik Stanojevic, Divisional Director UK Equity Research suggests the following possibilities for the Utilities sector:

“Looking ahead to the Autumn statement, investors would be keen to see any change of emphasis away from affordability toward security of supply and enough investment in new power generation to ensure that power cuts do not occur. National Grid, who is the UK’s electricity system operator, predicts that the reserve margin (excluding special supply / demand capacity payments) will fall from an already tight 4.1% this winter to around 2% next winter. The reserve margin is a measure of the system’s ability to deal with peak demand on the darkest coldest day – most utilities consider above 5% as comfortable.”

“However, given the popularity of the Miliband election promise, investors may be disappointed.”

Wealth Managment Company Helps With 130th Anniversary Celebrations For Local Rugby Football Club

Exeter-based Wealth Management Company Brewin Dolphin, organised a special coaching session by two Exeter Chiefs players with the Sidmouth Rugby Football Club which is celebrating its 130^th anniversary. 

Photographs by Bruce Thomas of Image Creation - Terry O'Brien (Rugby Secretary of Sidmouth RFC) / Richard Kirk (Match and Player Analyst at Sidmouth RFC)  / Dan Goddard (Chairman of Rugby at Sidmouth RFC) / Bob Smith (Coach) / Phil Dollman (Center/Full-back, Exeter Chief) / Sean Priestly (Assistant Director, Brewin Dolphin Exeter) / Ben Moon (Prop, Exeter Chief) / Mark Seward (Sales and Marketing Director at Sidmouth RFC) / / Bob Baugh (Second Team Manager at Sidmouth RFC) / Mark Beavis (Head Coach of Sidmouth RFC) / Phil Bye (Coach at Sidmouth RFC)

Founded in 1884, Sidmouth RFC is playing this season in the Western Counties West League.   Brewin Dolphin organised the visit by Chiefs first team players Phil Dollman and Ben Moon to the club’s home ground to help prepare the Sidmouth Chiefs train for their league game against Tavistock Away.

Sean Priestley Assistant Director, Brewin Dolphin Exeter said: “As a national company with local offices, Brewin Dolphin believes in supporting the communities it is a part of.  The various sporting clubs based in Sidmouth do a fantastic job to both foster and develop local sporting ability, mainly through the efforts of their members on a voluntary basis.  Over the last few years, the Exeter office has been providing on-going support and sponsorship to a number of these clubs in Sidmouth, including football, rugby and cricket.  We are delighted, therefore, to arrange this unique opportunity to help celebrate this momentous milestone for the local club. Exeter Chiefs is the West Country’s premier rugby club and it’s a great way to help raise the profile of Sidmouth Rugby as well as offer a rare chance for the squad to be coached by professional players.  I particularly want to thank Chris Bentley and Tony Walker of Exeter Chiefs for supporting us on this and Phil and Ben for fully engaging with the team.”

A former Wales Under-18 International, Dollman (29) began his club rugby with Bedwas before switching to the Newport-Gwent Dragons and then the Chiefs in 2009. Signed by the Chiefs to bolster their Championship challenge, he immediately helped them earn promotion to the Premiership in his first season at the club. A Chiefs legend in the making; Phil, an integral member of the squad from the championship days has been unfortunate to have not been recognised at the international level following solid performances year on year. Welsh by birth, Phil has adopted Devon as a second home and has played in the first team backline in every position barring scrum half. Famous for his dazzling footwork and pinpoint passing accuracy he is always one of the first names on the Chiefs team sheet.  Phil played his 100 league game against the Wasps and has scored 16 tries in 131 games in total for the club. 

Team-mate Ben Moon (25) and Cullompton’s favourite son played for the England's under 16's, under 18's and the 20's. He was part of the Ivybridge Rugby Academy which is where he was signed by Exeter Chiefs, and he also was a junior at the Cullompton Rugby Club.  Ben made his Chiefs debut at home to Sedgley Park in 2008.  Since that time he has established himself as a regular face in and around the Exeter first team.

The Colts joined the Sidmouth RFC first team in two separate training sessions with the Exeter Chiefs.  Ben Moon focused on scrummage and line out with the forwards, whilst Phil who has just agreed a new two-year deal with the Aviva Premiership club, concentrated on strike moves with the backs.

Phil Dollman (Exeter Chief) / Sean Priestly (Associate Director Brewin Dolphin) / Ben Moon (Exeter Chief) with the Sidmouth Rugby Football Club

Chris Bentley – Corporate Sales at Exeter Chiefs said: “It’s great for the guys to get out and do a bit of work for local clubs and we’re really pleased for the support from Brewin Dolphin in putting this all together. With a young team and new coaching set up at Sidmouth still settling in we hope that Phil and Ben may have a few pointers to give the team a winning edge in the weeks to come. With big games to focus on at Exeter Chiefs later in November against Wasps and Saracens, we hope that a few of the players may make the trip up to Sandy Park to reciprocate the support!”

At the beginning of November, 93 members, guests and sponsors gathered in the clubhouse to celebrate the 130th anniversary of Sidmouth RFC in the company of guest-of-honour Bill Beaumont CBE, chairman of the RFU. Another notable guest was Exeter Chiefs and England back row forward Thomas Waldrom which raised over £2,000 for the clubhouse refurbishment fund.  

Dan Goddard – Chairman of Rugby, Sidmouth RFC. Comments, “It’s great for our club when professional rugby players like Phil and Ben take a coaching session and pass on their experience and expertise to the grass roots of the game. Over the last week there has been a real buzz around the club; and I am sure we will all have a great evening. Following recent good wins by our 1st XV and Colts teams we look forward to their session helping motivate us for our upcoming games.  We are delighted that Brewin Dolphin has organised this special practice with the Exeter Chiefs and given us this opportunity.”

Sidmouth Rugby Football Club is looking for new players and welcomes participants at all levels of experience. Anyone who is interested in joining and playing for a forward thinking club is urged to contact Terry O’Brien on M: 07815757057 or e-mail tobrien@sidmouthrfc.co.uk

www.brewin.co.uk/exeter

Parents in the South bankroll children’s housing costs more than anywhere else Financial pressure mounts on the ‘Bank of Mum and Dad’

7^th October 2014: The ‘Bank of Mum and Dad’ is under unprecedented pressure to bail out dependent children at the expense of parents’ own retirement plans, wealth manager Brewin Dolphin can reveal.

 

Tim Walker Head of Office and Divisonal Director at Brewin Dolphin in Exeter

An exclusive survey, carried out by YouGov on behalf of Brewin Dolphin, shows that the parents of today’s under 18s in the South of England are planning to delay retirement, compromise their lifestyle and dip into their hard earned pension pots and home equity to help out their children and grandchildren.

38% of all parents in the South of England believe that in their lifetime they will have to contribute between £25,000 and £100,000 per child in order to cover home deposits, university fees and other living expenses.

“The Bank of Mum and Dad is facing its own financial crisis across the country,” warned Tim Walker Head of Office and Divisonal Director at Brewin Dolphin in Exeter. “Our planners are finding increasing numbers of anxious help with other areas of their lives. The pressure is such that we’re also seeing the emergence of second generation clients facing demands from their children who cannot get on the property ladder or need financial funding from the ‘Bank of Grandma & Granddad’.”

The pressure on families is far higher than it was even a few years ago, with 40% of parents of today’s under 18s believing that they will have to compromise their lifestyles because of the demands on their children, compared with just 26% of parents with children who have already reached adulthood.

“While many parents are willing to give, it is important that this is not done at the expense of their own retirement planning, particularly given the current uncertainty around annuities and income generation”, Tim Walker adds. “People in their 30s and 40s now will generally not enjoy the pension pots their parents did, and this survey shows a worrying trend towards parents needing to choose between helping their children and sacrificing their retirement savings. It is important to take proper advice and consider the future before signing cheques to your kids, however well intentioned.”

The YouGov Survey showed the following top findings from the South of England:

Financial implications

·       31% of all parents believe that being the ‘Bank of Mum and Dad’ will compromise their lifestyle, and 8% think they will need to downsize their home to release equity

·       18% of all parents believe that they will have to retire later because of a need to help out their children

·       14% of all parents believe that helping out their children financially will reduce the size of their pension pot, fuelling concerns about source of income in retirement following recent regulatory changes

Areas of parental help

Parents who have already given money to their adult children have focused on housing, grandchildren and education, as well as buying their child’s first vehicle.

·       40% of parents in the South of England have needed to assist their children with housing costs, which could be due to rocketing house prices, stringent new mortgage rules and rent increases

·       25% have given money to help bring up the grandchildren, creating a ‘Bank of Grandma & Granddad’

·       A quarter of parents have helped their children with university fees

Younger families under pressure on a national scale

The parents of younger children – currently under 18 – are facing far greater pressure to bankroll their children than those with older children. Their expectation of the support they will need to give is far higher, as is the expected effect on their lifestyles.

·       25% of those with children who are currently under 18 expect to retire later due to financial demands from their children, compared with 10% of those whose children are already over 18

·       11% of parents with children under 18 will need to downsize their home to release equity  to give to their children, compared with 7% of those with children over 18

·       4% of parents with younger children think they will need to take on riskier investments to target higher returns because of the family’s financial burden, compared with 1% of those with older children

Financial Planning Is A Matter For The Head And Not The Heart

Your emotions can seriously hamper your wealth, warns Tim Walker Head of Office and Divisonal Director at Brewin Dolphin in Exeter, who says he sees many clients allowing their heart to rule their head, to their financial detriment.

 

Tim Walker Head of Office and Divisonal Director at Brewin Dolphin in Exeter

“It can be difficult to look at your personal financial circumstances from a purely objective standpoint,” he said. “Emotional attachment to certain assets, fear of upsetting friends and family and even superstition mean that people do not fulfill their financial goals even if the desire is there. It may help to engage a professional adviser who can not only advise you from a legal or tax perspective, but can also ask you testing questions you might not confront otherwise.”

Here are the most common emotional mistakes he sees people make with their money, and how to mitigate them.

Misplaced loyalty
Investors hold onto too many shares or assets in the company they work for, putting many of their eggs in the same basket. Similarly, entrepreneurs who sell their company often retain a large stake because of their emotional attachment to the business. Remember to diversify your assets to spread risk.

Hiding from reality

Many people are guilty of procrastination, especially if they are worried about their financial situation. While it is best to start saving for a pension as early as you can, it’s never too late. Claiming “it’s not worth starting a pension at my age” is not a good enough excuse not to save for your future, particularly given the tax reliefs which come with pension contributions.

Avoiding uncomfortable issues

While many people find it uncomfortable talking about succession planning, to avoid making a will on the grounds of superstition or because it is a bad omen is irrational. It may help to undertake this process with a professional adviser.

Not letting go

It is very easy to hold onto an investment – whether ‘cherished’ inherited assets or a large family home after your children have long fled the nest – for emotional reasons. If you want to pass these assets onto your family, it may make sense to sell up and release cash to facilitate IHT gifting.

Panicking about the future

Many people would like to pass their wealth onto their children, but fear giving away assets in case they can’t afford their living expenses – when clearly they will still have more than enough to live on. Mapping out your inflows and outflows with an adviser, and planning for future expenditures or liabilities, will help you work out exactly how much you need to keep and how much you can give away.

Not fully trusting your spouse with your assets

Some clients fail to make full use of their spouse or partners tax allowances, which is one of the most common mistakes. Often the main earner pays 40% or even 45% tax on their investments when their spouse is a basic or even non-taxpayer. If the assets were transferred to the lower earner, the couple would benefit by using both tax allowances to the full. Trust, it seems, is a valuable commodity!

Britain’s Self-Employed Army Missing Out On Tax Savings

London, 19.8.2014: Ahead of tomorrow’s figures from the Office of National Statistics (ONS) on self-employed workers in the UK, experts at leading wealth manager Brewin Dolphin warn that many are not taking advantage of all the tax allowances they can, particularly those ‘olderpreneurs’ who have become self-employed later in life.

“Being self-employed can be great in terms of flexibility and freedom, but it is a double-edged sword,” said Tim Walker, Head of Brewin Dolphin in Exeter. “Employees who go freelance miss out on employee based benefits such as life and health insurance and pensions, and many do not know how to replace them. By maximising the tax savings from self-employment, Britain’s new army of freelancers can maximise their income and ensure that they are ready to have a happy retirement too. Freelancers shouldn’t have to work ‘til they drop.”

Here are six tips for maximising self-employment income and savings:

1.     Don’t forget your pension

Employers’ contributions to your pension fund abruptly cease when you leave the company, so it is important not to stick your head in the sand over pension payments. “The tax relief on your pension is still valuable, so set up your own pension as soon as you can,” advises Tim Walker. Tax relief for higher-rate taxpayers is 40% on pension contributions.

2.     Keep it in the family

If another member of your family of working age is not using his or her full tax allowance, employing them in the family business could help to save tax. “Their salary would be an allowable expense to you, and would allow them to use the current tax allowance of £10,000. “Admin and bookkeeping are popular ways of employing a spouse or adult child,” says Tim Walker. “Ensure that they are doing enough work to justify the salary you are paying though, otherwise the taxman will take a very dim view.”

3.     Claim all of your expenses

You can offset the cost of running your business against income to reduce your taxable profit.  There are full details here http://www.hmrc.gov.uk/factsheets/expenses-allowances.pdf

4.     Maximise your dividends

If you open a limited company you can pay yourself dividends and salary, and an accountant can help you to set the balance between these two forms of payment at the most beneficial level, so that you do not pay too much National Insurance. “Make sure you understand how this works before paying yourself from your limited company,” counselled Tim Walker.

5.     Don’t get caught out by VAT

 If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £81,000, or you expect it to go over that figure in the next 30 days, you must register for VAT. Not doing so will leave you with fines and a nasty bill from the taxman. “Registering for VAT can be beneficial for tax purposes,” says Tim Walker.

If you are VAT registered, you will have to charge VAT on your goods and services (known as output tax). However, you will also be able to reclaim VAT that you are charged by other businesses. This is known as input tax. As long as your input tax exceeds your output tax in a given period, you will be able to reclaim the difference from HMRC. Note that once you are registered for VAT there are penalties for late filing and payment, as well as significant amounts of paperwork; but failing to register is one of the most common causes of new business failures.

6.    Have an EXIT plan

The aim of most entrepreneurs should be to have an exit plan and selling your business can provide the capital security you need to finally hang up your boots. For those that structure their business properly, up to £10m of Entrepreneurs Relief is available.  This can reduce the CGT liability from 28% to 10% on the sale.