Business advice

The actuarial data shows that few people survive to consume their pension pot to depletion level zero. That means the pension fund retains your unused pot and even aftre paying out for a 50% spouse pension, there is still money left in the pot after the second death.
The message therefore would be to consider taking your 25% sum tax free in favour of reduced pension today and invest that cash wisely with equities for capital growth (as equities have hit a real ,low point which is always the best point to buy them), some investment grade fixed term bonds, gilts (underwritten by Government) and a spread of cash holdings to create a diversified portfolio. Consider the use of a discretionary wealth management service (though check the fees (typically annually around 1.5% - 2.25% of funds) that will manage the stocks and pickings on a discretionary basis - either as shares purchased for you such as offered by DeVere Chase or as collective investment unit trusts. The data shows that markets WILL recover over the long-medium term (at least a 5 year horizon, preferably a 10 year horizon). Sadly too many people bail out of shares at stock markets fall and buy when the stock markets are high and rising very rapidly (just ripe for levelling off for a dramatic fall). Don't invest in equities if you need the cash in the 5 year period (and I'm not talking about penny shares or buying 250,000 shares today at £10 and selling in the 48 hours at £10.50 (bed and breakfast).
Use up your ISA allowance by putting the shares into a S&S ISA wrapper so that returns and cash are free from CGT and Income Tax. Your discretionary wealth manager can do this for you. Initially you ill take a hit from charges for investment. But the markets will pick up - history bears it out.

cheshiremaserati said:

The actuarial data shows that few people survive to consume their pension pot to depletion level zero. That means the pension fund retains your unused pot and even aftre paying out for a 50% spouse pension, there is still money left in the pot after the second death.
The message therefore would be to consider taking your 25% sum tax free in favour of reduced pension today and invest that cash wisely with equities for capital growth (as equities have hit a real ,low point which is always the best point to buy them), some investment grade fixed term bonds, gilts (underwritten by Government) and a spread of cash holdings to create a diversified portfolio. Consider the use of a discretionary wealth management service (though check the fees (typically annually around 1.5% - 2.25% of funds) that will manage the stocks and pickings on a discretionary basis - either as shares purchased for you such as offered by DeVere Chase or as collective investment unit trusts. The data shows that markets WILL recover over the long-medium term (at least a 5 year horizon, preferably a 10 year horizon). Sadly too many people bail out of shares at stock markets fall and buy when the stock markets are high and rising very rapidly (just ripe for levelling off for a dramatic fall). Don't invest in equities if you need the cash in the 5 year period (and I'm not talking about penny shares or buying 250,000 shares today at £10 and selling in the 48 hours at £10.50 (bed and breakfast).
Use up your ISA allowance by putting the shares into a S&S ISA wrapper so that returns and cash are free from CGT and Income Tax. Your discretionary wealth manager can do this for you. Initially you ill take a hit from charges for investment. But the markets will pick up - history bears it out.

Click to expand...

Thanks Cheshire. I am currently using a discretionary wealth management service and I'm not planning on bailing out for at least a couple of years. Hopefully I will see enough recovery to last me and my family until I am properly old.

Then that 25% tax free lump sum from your pension pot can be handed to the discretionary wealth manager for capital growth - this is the right time for investment for capital growth as shares are so low.

conaero said:

Garage, been going under 12 months so another FO from the government!

Thanks for repaying my loyalty!

Click to expand...

A friend left work at the start of the year to start his own business (working outside) and was doing really well but now he's stuck. Hope the Gov can help business like yours out Matt.

My business has been running for a while, I wasn't paying myself anything as I was working (employed) at the time and most of the income from the business was going back in to buy equipment and products with some going to charity, Therefore I don't have a massive profit margin - take it I will also be stuck with nothing.

This is all great that the Gov are helping but after all this is over, who is going to pay the bill or are all these payments some type of tax loan ?

There is no such thing as free loan. After this is all over the loans that the UK government have taken must be paid back - and printing money (quantitative easing) has to be accounted for in the economy. By logic, taxes will have to rise to pay off these bail-out measure. Corporation Tax? Inheritance Tax? NICs? Direct Income Tax. There will be a levelling of the playing field for the self-employed and the employed (Rishi Sunak already highlighted that anomaly in treating self employed the same as PAYE employees). That is a BIG hint that self employment NICs and tax treatment is likely to be aligned to PAYE terms. Otherwise why mention it?

Both direct and indirect taxes will rise? Remember pre-Margaret Thatcher? What was the basic rate of income tax then? And inflation? I remember mortgage interest rates of 17% with LTV of maximum 90% subject to 2.5 times salary or 3.0 times joint salaries. We may even see a Tory Government consider hypothecated taxation for the NHS to ensure capacity and appropriate funding (people and accountants have swung to and fro on this one). Corporates will likely question decisions to off-shore manufacturing to China and elsewhere - what if there was another pandemic with lockdown of flights. Many airlines will be insolvent, save for a handful that the Government may bail-out.

This pandemic has taught us one thing - that infections can be highly contagious and bring countries and continents to a grinding halt and kill many people at a stroke as well as economically and socially kill countries. Viruses mutate, a vaccine for Covid-19 may not be enough if there is a surge of a mutation (like there is with flu). Perhaps Governments that allow wet markets must shut down all such operations wherever they are in the world (Cambodia, Vietnam, Indonesia etc). Some might even claim that China must pay for economic damage inflicted on other countries - the virus started from the wet market where civets were piled on top of pangolins were piled on top of rabbits, were piled on top of bats and each of them urinating and cr&apping on those below in the cages with cross-zoonotic transmission (that is a fancy word for cross animal transfer). Then a guy crudely slaughters the live animal throwing splatter of the animals body fluids and blood in an aerosol that is inhaled by him and customers walking around. They go home and infect others. Those infected individuals (with and without symptoms) then become tourists and spread it outside of China and the chain of infection grows and grows.

https://www.dailyexaminer.com.au/news/chinas-wet-markets-should-be-banned/3983469/

https://www.foxnews.com/world/what-are-the-wet-markets-coronavirus

I'm with you Matt, Dave and the others. Stuck in this a4se crack the clever govt have created. It does leave a slight bitter taste if I'm honest.

We will fight like we always do to keep our businesses alive and well. We will try to keep all staff/contractors employed in the medium to long term. We will continue to toe the line and collect the HMRC VAT, pay our current corporation taxes, pay all the correct paye contributions, pay all the correct income taxes.

We will continue to listen to what the govt have told us about CV and adhere to their social distancing advice and further lock down measures.

We will continue to try to work silly hours when required, do that little bit extra, take some chances, try to innovate, try to grow, try to employ. Take all the risk that we do. Exposure to bad debt when nothing is done and rogue businesses, entrepreneurs and sharks are allowed to fail with seemingly no punishment or reverberations.

It is a little disincentivising to say the least. At a time when we need hard working, creative, entrepreneurial, experienced resources we are deciding to punish much of this. It doesn't really make a lot of sense.

All your Amazon's and Tesco's that pay little tax and certainly not their fair share you let be. You didn't punish the banks when they failed.....you rewarded. You don't punish the people like Philip Green that just use and abuse the system and people then just steamroller anyone who gets in their way. These people have no respect for others or the system.

Yes, it does seemingly hit a slightly raw nerve. It makes you wonder why we toe the line when this is how you are rewarded.

One thing we are now focusing on the most is credit control. Making sure we get in all or as much money out there owed as possible. Also to make sure all credit control is as tight as it can be. It is all well and good conducting work but it needs to be paid else you might be better offer staying in bed.

This is my concern for many business as cash-flow tightens. Many weren't in a good shape in the first place. They certainly won't be after this crisis has ended. The next worry then is are businesses in a good to be able to return and function as they were in good time.

I don't currently subscribe to this thought but I have spoken to a few that fear....what if we have over egged this and most of the country have it or have had it. Maybe the damage we have caused is greater than the damage the virus has caused. As I say this is not my train of thought and that of others but it does make you wonder. Without the luxury of accurate data it is really tough to get a gauge on this.

Surely between Apple, Google, Facebook, the Chinese, the US and the Russians they must know everything there is to know about everything on this planet!

doodlebug said:

I am not eligible for any government funding because I retired at the end of February. At the same time my SIPP took a massive hit when the stock markets crashed, as did everyone else's except Wattie's.

It is not financially prudent to take any of the 25% tax-free lump sum or draw-down until the markets recover somewhat, and luckily I haven't really got anything to spend it on. I'm not old enough to claim state pension and I still owe HMRC quite a few large ones from my last 2 year's incomes. If it wasn't for getting a temporary contract helping with the design of Dyson's all-singing ventilator, I too would be up poo creek without an oar.

PS Matt. Don't worry about me being able to pay for the car when you are finally able to get around to it. I have a special secret squirrel reserve for that.

Click to expand...

cheshiremaserati said:

Then that 25% tax free lump sum from your pension pot can be handed to the discretionary wealth manager for capital growth - this is the right time for investment for capital growth as shares are so low.

Click to expand...

They’ll probably go lower.

cheshiremaserati said:

The actuarial data shows that few people survive to consume their pension pot to depletion level zero. That means the pension fund retains your unused pot and even aftre paying out for a 50% spouse pension, there is still money left in the pot after the second death.
The message therefore would be to consider taking your 25% sum tax free in favour of reduced pension today and invest that cash wisely with equities for capital growth (as equities have hit a real ,low point which is always the best point to buy them), some investment grade fixed term bonds, gilts (underwritten by Government) and a spread of cash holdings to create a diverspified portfolio. Consider the use of a discretionary wealth management service (though check the fees (typically annually around 1.5% - 2.25% of funds) that will manage the stocks and pickings on a discretionary basis - either as shares purchased for you such as offered by DeVere Chase or as collective investment unit trusts. The data shows that markets WILL recover over the long-medium term (at least a 5 year horizon, preferably a 10 year horizon). Sadly too many people bail out of shares at stock markets fall and buy when the stock markets are high and rising very rapidly (just ripe for levelling off for a dramatic fall). Don't invest in equities if you need the cash in the 5 year period (and I'm not talking about penny shares or buying 250,000 shares today at £10 and selling in the 48 hours at £10.50 (bed and breakfast).
Use up your ISA allowance by putting the shares into a S&S ISA wrapper so that returns and cash are free from CGT and Income Tax. Your discretionary wealth manager can do this for you. Initially you ill take a hit from charges for investment. But the markets will pick up - history bears it out.

Click to expand...

I’m in the strip the pension cash out as soon as possible camp.

I’m also in the 99% of ifa’s/ discretionary fund managers are fecking useless camp and they’ve just proved it once again by subjecting your pension to massive losses.......that were so obvious to see it was total incompetence and frankly inexcusable. You can class bankers, hedge fund managers, analysts and economists in on this too- just been caught once again with their trousers down.
Experts, my ar5e.

Dont get me started on DeVeres either.

Get clued up and do it yourself. They are virtually all useless and the quicker you realise that the better off you’ll be.

If you invest in equities you are relying on the Ponzi scheme continuing. It may not. Recovery may never happen after this shambles. Data is irrelevant, it’s all manipulated, hence the Trillions, which isn’t stimulus by the way, but more cash flow that the Ponzi schemes requires, as it was running out.

Ask yourself what sort of % return you need and what return did they get you?
How much risk are you prepared to take to get that?

doodlebug said:

I am not eligible for any government funding because I retired at the end of February. At the same time my SIPP took a massive hit when the stock markets crashed, as did everyone else's except Wattie's.

It is not financially prudent to take any of the 25% tax-free lump sum or draw-down until the markets recover somewhat, and luckily I haven't really got anything to spend it on. I'm not old enough to claim state pension and I still owe HMRC quite a few large ones from my last 2 year's incomes. If it wasn't for getting a temporary contract helping with the design of Dyson's all-singing ventilator, I too would be up poo creek without an oar.

PS Matt. Don't worry about me being able to pay for the car when you are finally able to get around to it. I have a special secret squirrel reserve for that.

Click to expand...

Yup, mines doing rather well.
+21.6% this year so far.....and will rocket higher with all the inflation that is about to be unleashed by the time the whole corporate and individual world along with his dog has been bailed out.

GeoffCapes said:

So let me get this right. As I don't get paid via PAYE, I get nothing.
If I had say in one year out of 3 where I earned over 50k, I get nothing.
If I don't rent a building or property, I get nothing. What about renting a serviced office?

However, over the last 3 years I've paid 6 figures in VAT, Corporation Tax, Income Tax through my Limited company, yet I get nothing.

Sounds fair then.

Click to expand...

Well, here's an interesting turn up for the books. As I'm in a Serviced Office, part of my rent is to cover my business rates.
This in turn means that I can apply for the £10,000 small business grant.

Might be worth @conaero & @rockits (and anyone else) to contact your local council to do the same.
All councils have a very simple on line application to fill out and it only takes 5 minutes.

This is the blurb I was sent, which makes for interesting reading. And hence my application.

Small Business Grants Fund and Retail, Hospitality and Leisure Grant Fund

The Council are planning to make Small Business Grants (£10k) and Retail, Hospitality and Leisure Grants (£10k and £25k)
payments as soon as possible. The Council is currently waiting finalisation of our required system upgrade from our software provider to enable these payments to be made, which they are now in the final stages of testing.

An application form will need to be submitted to apply for these grants to ensure the Council meets government requirements to make the relevant payments. Standard business information will need to be collected and the form to do this is currently being finalised and will be released shortly. We have identified those that may be entitled to this relief and you will be notified soon of how to apply for this grant.

Extended Retail, Hospitality and Leisure Discount 2020/2021 and Nursery Discount 2020/2021

The Council is waiting for final details from our software provider to upgrade our systems to enable the 100% discount to be applied to businesses that we have identified as being entitled to the above reliefs.

In the meantime, direct debits have been cancelled and payment will not be requested from bank accounts for this category of business. As soon as possible accounts will be updated and Business Rate demands will be issued confirming the relief has been applied to accounts with a nil liability for 2020/21.

Kind regards

Good share.

Yes, my business qualifies as well.

We don't pay any rates as we get small business relief and Govt advice it says your local council will write to you when the details of the scheme have been finalised. Also just seen on their (Dacorum Burgh Council) website:
Small business grant

The Government will be giving us funding to provide this one-off grant of £10,000.

If we think you qualify for this grant, we have sent you a letter telling you what you need to do to receive it. We have sent the letter to the address you have given us to send your business rates bill.

At the moment, we expect to pay the grant within a week of you providing the information we need.

If you haven’t received your letter by Friday 3 April 2020, please check back here for more information.

Please do not contact our customer service or business rates teams for more information about this grant, as they do not have any more details than are on this page.

Our day to day office is now a detached building in my garden so not sure I would qualify. We closed bo the offices down we had in Potters Bar and Hitchin a year or so ago. We never paid business rates anyway and qualified for 100% rate relief for both as one company was at one office and one company at the other office.

Great share though and may benefit some just not us I don't think.

In essence though isn't it just paying for your rent for an office you currently aren't and can't use?

rockits said:

Our day to day office is now a detached building in my garden so not sure I would qualify. We closed bo the offices down we had in Potters Bar and Hitchin a year or so ago. We never paid business rates anyway and qualified for 100% rate relief for both as one company was at one office and one company at the other office.

Great share though and may benefit some just not us I don't think.

In essence though isn't it just paying for your rent for an office you currently aren't and can't use?

Click to expand...

I did wonder if you worked from home Dean. I would imagine that you wouldn't qualify then.

DaveT said:

Good share.

Yes, my business qualifies as well.

We don't pay any rates as we get small business relief and Govt advice it says your local council will write to you when the details of the scheme have been finalised. Also just seen on their (Dacorum Burgh Council) website:
Small business grant

The Government will be giving us funding to provide this one-off grant of £10,000.

If we think you qualify for this grant, we have sent you a letter telling you what you need to do to receive it. We have sent the letter to the address you have given us to send your business rates bill.

At the moment, we expect to pay the grant within a week of you providing the information we need.

If you haven’t received your letter by Friday 3 April 2020, please check back here for more information.

Please do not contact our customer service or business rates teams for more information about this grant, as they do not have any more details than are on this page.

Click to expand...

Excellent!

Wattie said:

I’m in the strip the pension cash out as soon as possible camp.

I’m also in the 99% of ifa’s/ discretionary fund managers are fecking useless camp and they’ve just proved it once again by subjecting your pension to massive losses.......that were so obvious to see it was total incompetence and frankly inexcusable. You can class bankers, hedge fund managers, analysts and economists in on this too- just been caught once again with their trousers down.
Experts, my ar5e.

Dont get me started on DeVeres either.

Get clued up and do it yourself. They are virtually all useless and the quicker you realise that the better off you’ll be.

If you invest in equities you are relying on the Ponzi scheme continuing. It may not. Recovery may never happen after this shambles. Data is irrelevant, it’s all manipulated, hence the Trillions, which isn’t stimulus by the way, but more cash flow that the Ponzi schemes requires, as it was running out.

Ask yourself what sort of % return you need and what return did they get you?
How much risk are you prepared to take to get that?

Click to expand...

Very simple.
Sack your IFA, discretionary manager, hedge fund guy, expert, chase d vere tw4t etc etc.
Buy this from whatever source you can and quickly.

DaveT said:

Good share.

Yes, my business qualifies as well.

We don't pay any rates as we get small business relief and Govt advice it says your local council will write to you when the details of the scheme have been finalised. Also just seen on their (Dacorum Burgh Council) website:
Small business grant

The Government will be giving us funding to provide this one-off grant of £10,000.

If we think you qualify for this grant, we have sent you a letter telling you what you need to do to receive it. We have sent the letter to the address you have given us to send your business rates bill.

At the moment, we expect to pay the grant within a week of you providing the information we need.

If you haven’t received your letter by Friday 3 April 2020, please check back here for more information.

Please do not contact our customer service or business rates teams for more information about this grant, as they do not have any more details than are on this page.

Click to expand...

My wifes Hair Salon with her business partner qualifies for the £10k small business grant. I'm not sure I heard/read correctly the recent statement, from a Welsh Minister, that appeared to say their £10k was for small businesses up to 9 employees. There appeared to be larger grants for businesses with 10 up to 250 employees. Couldnt tell how much more but am thinking of towing the salon over the bridge from here in Bristol to Wales . Unfortunately it's a well run profitable salon and means neither my wife or her partner (self employed) can claim any personal support. All employees (18) are furloughed so will be getting 80% but the owners will get nothing.

Rees2301 said:

My wifes Hair Salon with her business partner qualifies for the £10k small business grant. I'm not sure I heard/read correctly the recent statement, from a Welsh Minister, that appeared to say their £10k was for small businesses up to 9 employees. There appeared to be larger grants for businesses with 10 up to 250 employees. Couldnt tell how much more but am thinking of towing the salon over the bridge from here in Bristol to Wales . Unfortunately it's a well run profitable salon and means neither my wife or her partner (self employed) can claim any personal support. All employees (18) are furloughed so will be getting 80% but the owners will get nothing.

Click to expand...

The staff get their 80% your wife and business partner share the 10k.
Although obviously the bills still have to be paid....

GeoffCapes said:

The staff get their 80% your wife and business partner share the 10k.
Although obviously the bills still have to be paid....

Click to expand...

Yes that’s the plan although with the bills to be covered and zero incoming it won’t last too long. It was the disparity between England and Wales that I found strange.

Rees2301 said:

Yes that’s the plan although with the bills to be covered and zero incoming it won’t last too long. It was the disparity between England and Wales that I found strange.

Click to expand...

That's devolution of power for you.