The top five personal finance implications from the Spring Budget by Kreston Reeves

To help understand the first Budget from Chancellor Philip Hammond, Bryan Elkins, Partner and Head of Taxation details the five key implications for personal finances.

National insurance changes

National Insurance contributions (NIC) for the self-employed are set to increase with Class 4 NIC rising from 9% in 2017/18 to 10% in 2018/19 and to 11% a year later. Although Class 2 NIC will be abolished from 2018/19 this will only save £146 per year. Self-employed individuals with profits of £40,000 will be paying an additional £319 of Class 4 NIC in 2018/19 and £638 in 2019/20.

Childcare

A new tax-free childcare scheme giving a contribution of up to £2,000 per child (up to the age of 12) towards childcare costs was confirmed. The scheme gives basic rate tax relief on payments made into an on-line account. For every £800 paid in by claimants the government will add a further £200 up to a maximum of £2,000 per child.

The scheme is open to all working parents except where one earns more than £100,000. In addition, free childcare for three and four year olds will be extended to 30 hours per week with effect from September.

Social Care & NHS

An additional £2 billion will be made available to Local Authorities (of which half will be in 2017/18 year) to fund care packages and care services. In addition, targeted measures will be introduced to assist those authorities facing the greatest challenge. The objective is to facilitate transfer from hospitals to social care services to free up much needed hospital beds. A further £100 million will go to the NHS to invest in A&E departments to fund more on-site GP triage facilities.

Allowances

The new dividend tax-free allowance of £5,000 is to be reduced to £2,000 from 6 April 2018. The personal allowance is to be increased by more than inflation, increasing it by £500 to £11,500.

Education

The government confirmed it will invest £320m to help fund 140 free schools in addition to the 500 previously announced. 30 of these schools will open by September 2020. In addition, a new T Level will focus on technical qualifications, replacing some 13,000 vocational qualifications with a system graded like A levels.

Click here to read more from Kreston Reeves

Sir Robert Woodard Academy Annual Dance Showcase

Local artists spring forward with their first exhibitions

Bright colours and bold shapes are on view at Colonnade House from a trio of artists who have just put the finishing touches to their first public exhibitions.

Recent graduates from Northbrook College, Shelley Bock (ceramics) and Jennifer Churchward (painting) are showing their work together in the main gallery. They have looked at this show as an opportunity to further explore their creativity and launch themselves into the professional world of fine art.

Jennifer’s work is primarily about colour, texture and the aesthetics of chance. She says:

‘My paintings are essentially abstract by definition, however the viewer may detect a connection with the landscape genre through my choice of colours.’

Shelley’s work explores the changing natural environment, and the delicate balance between man and nature.

She says:

‘The techniques I employ involve ceramics, glass, printmaking and photography. Outcomes using these chosen processes and materials are unpredictable, often with a high element of risk.’

There is an opportunity to find out more about their work as both artists will be taking turns at invigilating the exhibition.

Jane Inglefield is a self-taught artist who is compelled to paint. Her work is inviting, uplifting and vibrant. Drawn to depict both sea and landscape, Jane predominantly works in oil, utilising a variety of painted textures to guide the viewer around her work.

Jane says:

‘Generally, I like to use bright uplifting colours that have clarity. This exhibition is a celebration of the beautiful natural world all around… I like to make all the colours ‘sing’ together & enjoy the play of ever changing light on water, especially the layers of colour on the horizon line. The sheer abundance, generosity & diversity of nature inspire me constantly with a desire to paint & create.’

Jane Inglefield’s work, including a selection of cards can been seen in the Studio Gallery.

The way that Colonnade House is flourishing as a creative hub in the heart of Worthing is delighting Cllr Dr Heather Mercer, Worthing Borough Council’s Executive Member for Customer Services. She says:

“These artists bring very different approaches to their practice. I’m pleased to see how well the space in Colonnade House is working for them and their exhibitions are a testament to the creative teaching at Northbrook College, Sussex.

“Colonnade House is quickly becoming known on the South Coast as a platform for interesting new work to emerge and be seen by the public - testament to a great location, a fabulous building and a clear focus on supporting arts in the town.”

Both exhibitions are open Tuesday - Saturday 10-5pm until 18th March.

Links:

http://colonnadehouse.co.uk/event/nature-inspired-jennifer-churchward-shelley-bock/

http://colonnadehouse.co.uk/event/new-horizons-jane-inglefield/

For more information contact clare.halstead@adur-worthing.gov.uk / 01903 221142

Colonnade House is Worthing’s creative hub and is managed through a partnership between Worthing Borough Council and Adur and Worthing Trust

National Minimum Wage and National Living Wage

National Minimum Wage

The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice.

The National Living Wage

The Government's National Living Wage was introduced on 1 April 2016 for all working people aged 25 and over, and is currently set at £7.20 per hour. In April 2017 it will go up to £7.50. The current National Minimum Wage for those under the age of 25 still applies.

Key points

• Most workers over school leaving age will be entitled to receive the NMW.
• The NMW /NLW rate is reviewed annually by the Low Pay Commission.
• HM Revenue & Customs (HRMC) can take employers to court for not paying the NMW/NLW.
• There are a number of exemptions to those who receive the NMW/NLW. These do not relate to the size of the business, sector, job or region.
• The compulsory National Living Wage is the national rate set for people aged 25 and over.

Rates of pay

It is important to note that these rates, which came into force 1 October 2016, apply to pay reference periods beginning on or after that date.

The rates from 1 October 2016 are:

• £7.20 per hour - 25 yrs old and over
• £6.95 per hour - 21-24 yrs old
• £5.55 per hour 18-20 yrs old
• £4 per hour - 16-17 yrs old
• £3.40 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

The rate will then change every April starting April 2017. The rates from 1 April 2017 will be:

• £7.50 per hour - 25 yrs old and over
• £7.05 per hour - 21-24 yrs old
• £5.60 per hour - 18-20 yrs old
• £4.05 per hour - 16-17 yrs old
• £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

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The business advantages of becoming dementia friendly

Dementia affects every workplace, but things are looking brighter in Worthing, where local businesses are recognising this issue and signing up to the Worthing Dementia Action Alliance to support the town in becoming a Dementia Friendly Community. 

The Worthing Dementia Action Alliance is holding a Dementia Friendly Community event for businesses on 28^th March 2017, Worthing Leisure Centre, Shaftesbury Avenue, Worthing from 5.30pm with buffet and networking. Businesses and organisations of all sizes are welcome to attend, and more details can be found be visiting www.dementiafriendlyworthing.org

Local businesses leading the way include Bennett Griffin, Southdown Leisure, Barclays Bank, Relative matters, Hanover Housing, Breathing Spaces and Fine Marketing, who are all supporting their community through different action plans.

Local charities and providers, Guild Care, Alzheimer’s Society, Coastal West Sussex Mind, Crossroads, St Barnabas Hospital and Darlington Court Care Home, are all members as are St Lawrence Surgery, Offington Park Methodist Church; Worthing Library and West Sussex County Council. Two of the town’s largest employers, Worthing & Adur District Council and the Stagecoach Bus Company, are currently formulating their action plans.

‘This will have an enormous impact on people who live and work in the town,’ said Julia Johnson. ‘Making a positive change through offering staff Dementia Friends information sessions (all free and delivered by volunteers), will reduce the stigma and provide a workplace culture where people can talk openly about the disease. With 1 in 9 working people caring for someone older, ill or disabled, dementia is frequently a hidden issue in the workplace.’

With over 14,000 people living with dementia along the densely populated coastal strip from Shoreham to Chichester, who, daily use shops, public houses, restaurants, hairdressers, public transport, banks, theatres, to name but a few, it would be particularly helpful for staff, to have a greater knowledge and understanding of dementia to enable them to offer a little extra support and empathy with their purchases.

More details visit www.dementiafriendlyworthing.org/dementia-friendly-business or email info@dementiafriendlyworthing.org

'What I've Learned From My First Year As A Freelance Virtual Assistant' - Monica Rossi, MoGio'VA

This February marked exactly one year since I started MoGio'VA. Twelve whole months since I made the decision to take the plunge and become a freelance virtual assistant. It’s been an interesting journey so far, with as many downs as ups but I love everything about my business and, with lots of exciting things planned for 2017, I am looking forward to what the future will bring.

So, as Mogio’VA celebrates its 1st birthday, I thought it would be a good idea to write a blog post on the things I have learned in my first year of business. Hopefully it will give you a little insight in to the world of MoGio’VA and who knows, if you are just starting out on your freelance journey, it might give you some inspiration.

There is no such thing as a 9-5, and I love it!

For the first few months of MoGio’VA, I found myself replicating the 9-5 office environment, taking half an hour for lunch and then getting straight back to it. This worked for the short term, but the nature of being a virtual assistant means that clients will often call late in the day with a job that is required for the next day. There were also days where, if I wasn’t at my desk working, I was at a networking event or meeting with a client to discuss a new project. When this happened, I would find myself working in the evening to ‘make up’ the hours.

Now I have embraced the freelance way of life and am much more flexible in my working hours. I set myself a schedule that works around my client’s needs each week and stick to it. There may be days when I work 8+ hour days if several deadlines come in at once but there will also be days when I can finish early, pick my daughter up from school or catch up with a friend. My clients know I will get their projects finished on time and I know that I can choose the best hours for me to complete the work.

Lesson learnt: Rethink your working hours and be flexible

I do not know everything

With over 20 years experience in roles in a variety of diverse and challenging positions in global organisations, I thought I knew most things about running a business. However, I now realise that working for yourself and working for someone else are two very different things.

Admin, bookkeeping, research, liaising between international commercial businesses and translation services are all second nature to me. I have tackled them in each of my roles, and find that most of my days are now spent working on these tasks for clients who don’t enjoy it quite as much as I do! However, in each of my previous roles there was (usually) just one system and one process to learn. These days I find myself juggling client work with watching YouTube tutorials, reading business blogs and taking online courses to update my skills and knowledge on the latest technology and tools available to me to help my clients. It’s a good job I love technology!

One of the biggest challenges I faced was embracing the marketing and promotion of my business and in particular, using social media to attract clients. I have personal profiles on Facebook and LinkedIn, and have built and published my own website - but the thought of Twitter, business pages, paid adverts, organic reach, and everything in between, caused my head to spin. So I took several social media courses and read lots of blogs to make sure I understood the basics but I felt this still wasn’t enough so I decided I should practice what I preach and ask for help. I now outsource a portion of my social media management and marketing to a specialist in this field, which means I have more time to spend on client projects, plus I’m learning a thing or two in the process!

Lesson learnt: Never think you know everything, learning and improving your skills will always benefit you and your business

Freelancers still need contracts

Maybe it’s a legacy from when I worked in large corporations, but I have always made sure I send my terms and conditions to a prospective client, and then set out a more detailed breakdown of the work to be carried out in the written contract - which I make sure is signed before commencing work.

Far too many freelancers get exposed by not having a legally-binding contract document. In the past, I have been caught out by clients sending casual email requests such as ‘Monica, can you just look over this email’ ‘Or ‘What does this paragraph translate to in English’ and because I love the work I do I can find I have spent an hour working on something I feel I can’t bill for.

Detailing the work to be completed in a signed contract is so important. It sets out the nature of the project, what is included in the initial fee - and more importantly, what is not included - as well as setting out what the additional charges will be for supplementary work. It ensures both parties are happy with the finer details of the project.

Lesson learnt: Value yourself, get a contract and don’t work for free.

What’s next for MoGio’VA?

I’ve really enjoyed my first year as a freelance virtual assistant. I have met lots of new people, learned new skills and had fun in the process. It has been hard work, but I’m glad I made the decision to start up on my own.

Find out more about Monica and her virtual assistant services here

Merger between City College and Northbrook College Update

This is a short update on the progress made by City College Brighton & Hove and Northbrook College Sussex since the public consultation on merger in the autumn. 

The Boards of both colleges have now resolved to merge and remain on-track to establish the new organisation, Greater Brighton Metropolitan College, on the 1st of April. The Board and Executive team of GBMet are now in place in shadow form and are steering a comprehensive programme of work to bring the two colleges together. 

There will be more details to follow next week.

Investment Solutions – Market Commentary – March 2017

Real Assets

Tangible asset classes are favoured at this time, perhaps like never before. Before we say why let us expand upon what is, or was, a tangible asset. This is an asset of finite and definite nature, such as equity outstanding (otherwise known as share capital), property/land and fixed interest - such as gilts and bonds, as well as cash. So if these are tangible what is, historically, an intangible asset? Well according to the investment website Investopdeia, an intangible asset is not physical in nature, including items such as patents, business methodologies, trademarks, as well as goodwill and brand recognition.

However, times are a changing as they say and right now some of the once tangible assets are moving towards the intangible - creating greater demand for the more tangible asset classes.

So what’s hot and what’s not?

Let us begin with examining Equities or the share capital of a company. The Board of a Company cannot issue more shares whenever it suits them. A dilution levy or rights issue must be ratified by the shareholders, as the issuance of more shares impacts directly upon the returns of the existing equity holders. Making share capital (equities) limited and defined in nature and therefore very tangible.

Commodities can be manipulated to some degree as we have seen in recent months with the production of oil limited by OPEC; moreover mining corporates can increase or decrece their operations to amend the supply of raw materials. But when markets are fearful gold and other precious metals are in demand - Why?

Well again these are finite assets, in other words tangible, and the supply can only be manipulated in relatively modest numbers. This explains why the most popular stock traded on one of our preferred investment platforms (Investcentre) during the Brexit dip was iShares Physical Gold ‘Exchange Traded Fund’. Probably the most tangible investment available (not a Carlsberg advert!).

Turning to Property, both residential and commercial, this is another form of a tangible asset class. Whilst there will always be price fluctuations due to supply and demand the land itself cannot be manipulated. Therefore, unless there is significant alteration to countries demographic, the price has an inherent value (despite government tax policies). More people + finite amount of land is the equation - “God isn’t making any more Land” is a favoured sales quote of US realtors. Once again a tangible investment class - that partly explains why property remains such a popular and successful long-term investment.

So how about Fixed Interest and Cash?

Well is this is traditionally where the ‘safe’ money has been placed. Those looking for a secure haven went in to cash - aware (or not) that inflation would erode the real value over time. And those looking for a bit higher return sought Gilts - Government debt, or Corporate bonds - company debt (with varying degrees of risk depending of the state of the companies balance sheet). Together Gilts and Bonds are the asset class known as 'fixed interest'. Historically a Lower to Medium risk portfolio would have held anything up to 80% in fixed interest - now it is likely to be less than half that amount. Why?

Why are our lower risk asset allocations now holding so little fixed interest? This is directly due to an increasing intangibility of this asset class with central banks and the credit crisis the direct cause. Essentially central banks have been removing the tangible asset element of fixed interests when they embarked upon the now infamous 'quantitative easing', or printing money. How can an asset be tangible when you're able to create more whenever you need it?

For example if you could dig gold from your garden when needed some, this would be brilliant for helping you budget. If on the other hand your neighbour and his neighbour and so on could do the same, what would happen to the value of your gold? It would lose its tangibility and the price would fall.

And this is what has happened with fixed interest and to some extent cash, since central banks began printing money (by buying back government debt). The once stable assets classes have become the areas for concern due to central banks policies, interest rate increases and higher inflation. This is why we have less fixed interest and cash in our portfolios now than at anytime we can remember. Low risk is the new high risk. This is why we believe that (despite the historically high prices) equities, commodities and property remain the assets classes of choice, both now and for the foreseeable future.

The value of investments can fall as well as rise and past performance is not a guide to the future. This publication is for guidance only and is not a recommendation of any investment or financial promotion.

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