Podcast Summary
Exploring Unconventional Opportunities on LinkedIn and Tax Relief Investments: LinkedIn is a rich source for passive job candidates, while tax relief investments like EIS offer income tax breaks and potential inheritance tax relief, with unconventional investment ideas such as crematoria or dustbin vans.
LinkedIn is a valuable resource for finding professional candidates that may not be actively looking for new jobs. With over 70% of LinkedIn users not visiting other leading job sites, businesses risk missing out on potential hires if they don't utilize LinkedIn for their job postings. On a different note, tax relief investments continue to offer unusual opportunities for the wealthy. Although the government has cracked down on some tax avoidance schemes, legitimate tax reliefs like the Enterprise Investment Scheme (EIS) remain. EIS incentivizes investment in early-stage businesses, offering income tax breaks and potential inheritance tax relief. Unusual investment ideas under EIS include starting up a crematoria or leasing out dustbin vans. The government has tightened the rules around qualifying businesses for EIS, making these unconventional investments even more intriguing.
Tax incentivized investment industry focusing on new areas: The tax incentivized investment industry is evolving, offering products like self-storage and business property relief to investors, providing regular income and inheritance tax mitigation. However, the suitability for average investors and HMRC's stance on these high-risk schemes remain unclear.
The tax incentivized investment industry continues to evolve, focusing on areas like self-storage and business property relief products, despite some reliefs being revoked. For instance, TriplePoint Leasing, which leases vehicles to municipal authorities, offers investors a regular income and inheritance tax mitigation through business property relief. However, the suitability of these high-risk products for average private investors and the stance of HMRC remain questions. While these products may seem low-risk due to their reliance on existing legislation, HMRC's stance is that any scheme with a primary focus on tax avoidance will not be eligible for the intended reliefs. The industry and HMRC are in ongoing dialogue to clarify the boundaries.
Ensure tax relief-inspired products have advanced assurance from the revenue: Investing in tax relief-inspired products requires caution. Seek advanced assurance, consider fees, and maintain awareness to avoid potential financial losses.
When considering investing in tax relief-inspired products, it's crucial to ensure they come with advanced assurance from the revenue. Without this, potential investors should be wary. These products often come with high fees, reminiscent of traditional hedge fund structures, which some argue are justifiable due to the industry's complexities. However, cynics suggest consumers are dazzled by potential tax savings and overlook the actual costs. The financial services sector, including banks and insurers, profits from consumer inertia, as many forget to renew or renegotiate deals, leading to potential financial losses. Therefore, it's essential to approach such investments with transparency, seeking independent advice, and maintaining awareness of important dates and expiry periods.
Stay informed and proactive to avoid financial surprises with mortgages and insurance: Be vigilant about mortgage and insurance deals, shop around, gather documents, and allow ample time for remortgaging or renewals to avoid unexpected costs.
Consumers need to be vigilant about their financial products, particularly mortgages and insurance, to avoid being rolled over into more expensive rates or deals. Many people have been caught off guard by unexpected mortgage payments after their initial deal ended, leading them to apply for a new mortgage and potentially face higher rates. The same goes for insurance products, where automatic renewals can lead to unexpected price increases. To avoid this, consumers should gather all necessary documents, shop around for better deals, and be proactive in cancelling old policies. The cheapest mortgages and insurance policies may come with high arrangement fees or short terms, which can lead to more costs down the line. It's essential to allow ample time for the remortgaging or renewal process and to carefully review all documents to understand any changes in pricing. By staying informed and taking action, consumers can save themselves from unwanted financial surprises.
Unexpected insurance premium increases due to new industry tax: Britons are relying more on property for retirement, but it's crucial to consider the long-term sustainability and ensure pension plans are up-to-date.
Individuals may be in for a surprise when receiving their insurance renewals this year, as insurers could use the new industry tax as a reason to increase premiums without clear communication. Meanwhile, data from the Office of National Statistics reveals that an increasing number of Britons are relying on property rather than pensions for retirement. While property has seen significant growth, particularly in London, it's essential to consider the long-term sustainability of relying solely on property investments and ensure that pension plans are up-to-date. The love affair with property continues, but it's crucial to remember that property prices can't keep rising forever and that pensions offer stability and control over retirement income. If you're missing out on a workplace pension, consider the potential benefits and factors such as employer contributions and tax relief.
Half of the Population Unable to Contribute to a Pension: Despite the importance of having a pension for the future, half of the population cannot contribute due to various reasons. This highlights the need for potential changes to make the pension system more accessible.
The ONS survey revealed that half of the population (50%) is unable to contribute to a pension due to various reasons such as unemployment, being a student, or insufficient income. This is a concerning trend, as highlighted by Francis O'Grady, the secretary general of the Trades Union Congress, who emphasized the importance of having a pension for the future. The pension issue underscores the need for potential changes in the pension system to make it more accessible to a larger population. The FT's wealth correspondent, Hugo Greenhalgh, also shared insights on other financial matters, including the ousting of Daniel Godfrey, the former head of the Investment Association, and the potential value of rare books. The FT Money Show offers a wide range of financial news and insights for its audience.
