1 Check your tax code:

Contact the Inland Revenue and ensure you are using the correct tax code for your individual circumstances – being on the incorrect code can prove costly – in terms of time and money.

2 Income tax

If one half of a married couple or civil partnership is a higher-rate tax payer and liable to pay tax at 40 per cent, it may be worth “income shifting” or transferring assets to the lower-rate tax payer to reduce the tax burden.

I.e: If a married couple have £100,000 in a savings account in the higher taxpayer’s name earning two per cent interest, this would be subject to 40 per cent tax, which would result in a bill of £800. If the savings were transferred to the basic-rate tax payer this would reduce the bill to £400.

By transferring these to the spouse earning less, the couple is making use of their personal allowance – which is currently £7,475 per year. However, there cannot be any arrangement that the higher tax payer will continue to benefit from an asset given away, therefore advice could prove beneficial before taking action.

3 Individual Savings Accounts (ISAs)

Individual Savings Accounts (ISAs) are tax-efficient and come in two forms: cash ISAs and stocks & shares ISAs. Cash ISAs are tax-efficient savings accounts on which interest is paid, whereas stocks & shares ISAs, invest in assets such as investment trusts – which mean the value of an investment can both rise and fall.

Currently you can invest up to £5,340 each year into a Cash ISA and the interest you earn is free from tax and does not need to be declared on a tax return. With a stocks and shares ISA you can invest up to £10,680 each year (although whatever you invest into a cash ISA must be deductedfrom this allowance). ISAs are particularly beneficial for a higher-rate tax payer looking to reduce their tax liability.

4 Capital Gains Tax

You can currently make a capital gain of up to £10,600 this 2011/12 tax year without paying capital gains tax.

If you have already reached your personal capital gains tax allowance and you’re married or within a civil partnership, assets can be transferred to your partner free from tax. Upon selling the asset(s) their allowance will then be used additionally to offset any gain.

Any losses incurred – either this year or last – can also be used to offset a gain. Any losses, which have not been used, can be carried forward. (However, you must inform HMRC within five years from 31^st January after the tax year in which you incurred the loss.)

“If you are married or in a civil partnership, you can also use your partner’s capital gains allowance”

5 Inheritance tax (IHT)

Firstly work out the overall value of your assets combined – including your house, savings and investments – to provide an estimate of what you may end up leaving to your loved ones.

The current 2011/12 personal Inheritance tax allowance is £325,000 – so if the total value of your asset portfolio is higher than this value, you are likely to incur an inheritance tax bill. There are methods to mitigate IHT liability, including the £3,000 annual gift allowance, small gifts allowance and trust options. Please see our full article on inheritance tax for further details.

6 Pensions

Pension contributions are subject to income tax relief – therefore a 20 per cent tax payer will pay £80 for a £100 contribution; a 40 per cent tax payer will pay £60 for the same contribution and a 50 per cent taxpayer will pay just £50 – making them particularly attractive to high-end earners.

If you belong to a company pension scheme you can invest up to your annual earnings, up to a limit of £50,000. A higher-rate tax payer can reduce their overall tax bill by deducting the additional higher-rate tax.

It could also prove beneficial to make pension contributions through your employer by salary sacrifice; an arrangement where you forego part of your salary to receive a non-cash benefit. Pension contributions via this method receive tax relief at source and incur no National Insurance – meaning your employer may “top-up” your contributions with the National Insurance savings they subsequently receive.

HMRC receives billions of pounds through our tax payments each year – this demonstrates how important it is to make provisions to protect our assets – which could see us keeping more of our money.

For further in-depth information, or for more details on how we can help you save tax, please make an appointment with us today.

Some forms of Inheritance Tax Planning are not regulated by the Financial Services Authority

The value of your investment can fall as well as rise and you may get back less than the amount you have invested. Levels, bases and reliefs of taxation are subject to change and their value depends on the individual circumstances of the investor. The Financial Services Authority does not regulate taxation and trust advice.

The collapse of such prestigious names as Johnson Matthey Bankers [http://www.time.com/time/magazine/article/0,9171,1715136,00.html] in 1984, BCCI in 1991 and Barings in 1995 all show that nothing can be taken for granted. Lehman Brothers was a global financial services firm before it went bankrupt in 2008.

And of course, no one on this side of the pond is likely to be unaware of what happened to Northern Rock [http://news.bbc.co.uk/1/hi/business/7086473.stm] a year earlier. A run on the bank, the first in the UK for 150 years, created a real possibility that it would collapse, with dire consequences for its depositors. In the BBC report above, one lady had £780,000 on a 30-day account she was unable to access, and could only watch in horror as the events unfolded. Without doubt, she was not alone in that situation.

There is something called the Financial Services Compensation Scheme [http://www.fscs.org.uk/] which covers authorised companies in the UK. However, it would have been of limited use to the depositor with £780,000 in Northern Rock; only the first £85,000 is guaranteed.

This story shows the wisdom of not having all your investment eggs in one basket. Of course, it has to be said that bank collapses, though spectacular, are rare in the Western world. But there are many other reasons to diversify, as James Caan [http://www.stopswimming.com/7-reasons-you-need-to-diversify-your-savings/] and others have pointed out.

At Welbeck [http://www.welbeckgroup.co.uk/our-services/consulting], we’re also great believers in diversifying savings and investments. As financial advisers and wealth management professionals, we can also point you in the direction of a range of attractive, tax-advantageous and sometimes little known investments.

If you’d like to get the benefit of our expertise and experience, talk to us today.

Here are our first five footsteps in obtaining life insurance:

1. Start early: Usually the younger you purchase life insurance, the cheaper the premium – should you purchase a guaranteed policy, which typically remains the same premium throughout the term. When you purchase life insurance at a younger age, you are generally considered a lower risk, so payments are usually less. You could consider an indexed-linked policy, which keeps track of inflation –otherwise the true value of your payout could be reduced over time.
2. Take care of your health: If you lead a healthy lifestyle, usually life insurance premiums are lower – again, you are considered less of a risk to insurance companies. It is thought smoking can have a dramatic affect on your overall premium,therefore by quitting; you could significantly reduce your payments.
3. Consider separate policies: Should you and your partner have children together, it may be worth considering singular life insurance policies rather than a joint policy. Although the cost may beslightly higher, it means each person is insured and you would therefore receive two payouts, rather than just the one payout from a joint policy upon the death of the first person. This can offer more security to your dependents, should both of you die within a close proximity.
4. Consider a trust:If you believe your estate may be subject to Inheritance Tax upon your death, then consider investing your life insurance into a trust.This ensures that should you die, the money is not taken by the taxman but is paid out to your chosen beneficiary or beneficiaries.
5. Tell the truth: When purchasing a life insurance policy, it is vital you tell the truth. An insurer can conduct checks and should they discover you have stated facts deemed to be untrue; for instance, claiming to be a non-smoker when in fact you are,they may decide not to pay out.

This calculator will help highlight how close to your target you are with regard to establishing a decent pension.

It will only provide a very general picture and we strongly recommend that we conduct a proper audit of your position in which we will assess all of your current arangements and make suitable recommendations. That said if you enter all the information correctly and it suggests that you need to save £300pm, and you are only saving £50 then it is fair to say that some additional planning will be needed .Click here

So why come to Welbeck?

* Our expert advisers can provide advice on a range of products from financial investments to pensions, life assurance and mortgages. We are regulated by the Financial Services Authority (FSA), which provides you with the assurance in the advice you receive.

* All of our advisers have attained the necessary qualifications in order to provide you with the right advice for your individual circumstances.

* We scan ‘the whole of the market’, and search as many companies as possible so we can offer you the very best haven for your money.

* We promise to act ‘in your best interests’ and direct you accordingly.

* We ensure we completely understand your financial circumstances and requirements in order to tailor-make a product package to best suit you.

* We aim to provide you with complete confidence that your financial affairs are managed carefully and professionally to achieve your financial goals.

* We offer a truly bespoke service so we can help you create an investment portfolio that will work as hard as possible to suit you and your financial aspirations.

* We will demonstrate why a particular product may be recommended to you and prove how it may suit your circumstances, so you will always make an informed decision.

* We will provide you with continual support and advice throughout the lifetime of your investment choices.

* We are a one-stop shop for all your financial needs and requirements – from life and critical illness insurance, savings and investments, family and asset protection, mortgages, pensions and inheritance tax planning, to name but a few.

We will advise you independently and accordingly to your circumstances, so please speak with one of our expert advisers here at Welbeck about your financial needs today…we are here to help you!

NS&I have introduced new issues of its savings certificates including inflation-beating savings certificates and fixed interest saving certificates. However, they will only be available to savers signing up for a five-year term. From a conventional savings account, a basic rate taxpayer would currently need a 5 per cent return to avoid any bite from inflation, but the index-linked certificates have promised to not only match inflation, but to also add 0.5 per cent on top, they are tax free and you can invest up to a total of £15,000 – which could see them in high demand from savers alike.

The five-year fix:
These certificates have proposed to pay a rate of 2.25 per cent; a basic rate tax payer would need to achieve a rate of 2.81 per cent and a higher tax payer would need a rate of 3.75 per cent on other saving products to achieve the same return because these have the added advantage of being tax-free. Fixing your savings does however, come with extra risk ; you will not be able to readily access your cash and if the base rate rises during your fixed term, you could lose out.

Although, fixing your savings may appeal if you are keen to maximize the interest you can earn, within an ISA for example. Because of the high level of inflation this is a difficult time for savers – especially pensioners who may have previously relied on the extra interest as a source of income – therefore these tax-free certificates could prove popular to those looking to grow their capital – even by a minimal amount.

Self assessment is exactly that; an assessment of your tax which is filed online or via a paper return. It is important to decide whether you need to file a tax return as there are deadlines and should HM Revenue and Customs (HMRC) receive your tax return late penalties and interest charges may occur

On the whole the majority of the population do not need to file a return as they already pay all of their tax due on earnings or pensions through PAYE (Pay As You Earn). However, should you have more complicated tax affairs, or receive an income from several sources, the likelihood is you will need to complete one. You will need to complete one if you are self employed, a trustee, a Company Director or receive a foreign income. Should you decide you need to file a return, firstly you will need to register for self assessment. A letter will then usually be sent to you in April of each year or a notice (should you file online) informing you of your need to complete a return. If you still haven’t received your letter or notice, you must contact your tax office urgently to avoid any penalty or charges. If you send a paper return it must reach HMRC by midnight 31st October 2011. (The only exception being is if you receive your letter after 31st October 2011, in this instance, you will have 90 days from the date you receive your notice).If you file online, it must reach HMRC by midnight 31st January 2012. (The only exception being is if you receive your notice after 31st July 2011, in this instance, you will have 90 days from the date you receive the notice.)    If you miss your deadline, a fixed penalty of £100 will apply automatically and you will pay more in interest the longer you delay, so act quickly. You must also gather all the necessary information to ensure you fill out your return correctly as any inaccuracies in your return may cause HMRC to reject your return which may cause you to miss the deadline. Also ensure you sign and date your return as this, although simple, is often another reason a return may be rejected. Upon submitting your return, you must keep all of the related records for a particular period of time, depending on your circumstances – in case HMRC decide to check your return.

If you file:
• On or before 31st January 2012: records usually need to be kept for a further year from this deadline date. Unless a check has already commenced, in which case, records will need to be kept until further notice from HMRC.
• After 31st January 2012: records need to be kept for 15 months after the date you submitted your return – whether via paper return or an online return. Again, if a check has already commenced, you will need to keep records until further notice from HMRC.
For Landlords or those running a business, records need to be kept for five years from the 31st January 2012, regardless of filing a paper or online return. If you do not keep adequate records for the required period, again, you may incur a penalty. Therefore it may be advisable to keep a copy of any applicable record relating to a return and of the return itself for future reference. It is essential to understand the importance of self assessment and
submit all the required details to HMRC relating to your circumstances.

We’re here to make your money work harder for you, simplify your wealth management portfolio and give you outstanding professional advice. We cut through the swathes of endless financial speak, and use straightforward language instead of jargon.

We don’t do off the peg planning. Instead, we’ll produce a strategy that’s tailored to your needs. We’ll look at every aspect of your finances – and ensure that whatever we recommend continues to be relevant throughout your life.

More Info:-Welbeck

The study suggested there is a current lack of trust in the pension system since their investment return decreased because of low interest rates caused by the global recession. Many feel the current pension system is far too complicated which in turn deters them from saving enough, or indeed, at all.

However, due to the increase in life expectancy, saving adequately for retirement has never seemed more important. The automatic enrolment into workplace pension schemes starting next year is hoped to encourage more employees to save towards their pensions – although this will not encourage everyone, many employees will not meet the minimum income criteria for the automatic enrolment – there is also the fear that those that do, may “opt-out”, disregarding the possibility of a poor standard of life in retirement.

The study declared that over the past ten years the proportion of employees, whether male or female, saving into a pension, has fallen substantially and it suggested employees would only start to save in to a pension if there was an overhaul of the current pension systems; making them concise and clearer to understand whilst also delivering a better deal.

This report, which will be presented to the Pensions Minister, has highlighted the need to create a far greater, more dependable pension system in order to encourage employees to save. Times have changed and a radical reform seems essential to prevent many millions of our population living their retirement in poverty.

More info:- Welbeckgroup