What is the difference between life insurance and life assurance?

What is life assurance?

If you're thinking about taking out life cover, then that’s a really important question. Our guide will help you make sense of the tricky subject of life insurance.

Life assurance, often known as a whole of life policy, is a type of insurance that continues indefinitely and pays out a lump sum once a policyholder dies (assuming they’ve met their monthly premiums).

Your premium tends to be higher for this type of life insurance because a provider expects to make a pay out at some point.

Life assurance vs life insurance

Once you’ve thought about a plan, it’s time to decide if a life assurance policy is for you. It’s worth being aware that over 50s life insurance can sometimes cover life assurance.

The term ‘assurance’ means that you’re guaranteed to be paid out upon death and typically ‘whole of life’ insurance is the main assurance product.

To help you manage what is a complex subject, our life insurance consultant can help you work out how much life cover you might need at your age.

Contact us for a no obligation consultation and let us help choose the right plan for you.

How To Do a VAT Return

A VAT return is a tax form you file to show how much VAT you are due to pay HMRC. Your VAT return should contain your total sales and purchases for the period, the amount of VAT you owe and the amount you can reclaim, and what your VAT refund is.

You’ll have to submit a VAT refund even if you don’t have any VAT to pay or reclaim.

Calculating VAT

In a nutshell: the VAT return calculates the amount of VAT due on sales (called your output VAT), minus the amount of VAT you can reclaim on purchases (called your input VAT).

The resulting figure is the amount you pay. If the amount you reclaim is higher than the amount due, then you’ll get a VAT refund.

How to do VAT returns

The rules and regulations surrounding VAT returns can be quite complicated. For a full overview, you can read the government’s VAT Guide.

The essentials that you need to be aware about are:

There are different rates of VAT, including standard (20%), reduced (5%) and zero rate (0%)
You can’t always reclaim VAT on purchases, for example for client entertaining, car purchase, or non-business use

There are severe penalties for errors, including penalties of 15% for undeclared errors.

Let us take the headache out of VAT submissions and contact us for a free consultation on 02920 641 098

How To Pass Assets To Your Children

During lockdown, families have focused on getting their financial affairs in order as they put plans in place to pass down wealth to their children and grandchildren.

Many people will have had an estate planning strategy in place for some time, but the unprecedented effects of the Covid-19 pandemic mean priorities and financial situations have changed for many families.

Financial advisers report that parents and grandparents are increasingly looking at ways of helping their children and grandchildren.

Younger generations, who stand to be hit hardest by the crisis, may need to call on the Bank of Mum and Dad for financial support — although parents will need to evaluate how any cash calls could impact their own retirement plans in the wake of market movements.

Are you revisiting your plans due to fear of future tax rises that the UK government could bring in to cover the cost of the pandemic measures?

Give our expert Tony Arcopinto a call to see how he can assist you. Call now on 029 2064 1098 or email tony@orgservices.co.uk

Furloughed, Unemployed, Stuck in Lockdown? Now's The Time To Face Your Finances

It’s easy to hide from money woes, especially when you have had a wage cut. But with the economy looking so uncertain, now is the time to get organised.

The coronavirus crisis has had a massive impact on people’s finances. For some households, the lockdown has led to a huge drop in income and little prospect of more money coming in any time soon.

Others have been more fortunate and are still earning their salary, but are unable to spend it on the things they would normally buy. But even if you are in the fortunate position of having earned as normal through the crisis, you probably have one eye on the future.

Reduce your spending on essentials.

Some of the things you would do in normal times to save money are not an option now, such as visiting several shops to get the best price for food. The easiest way to cut costs is to trade down to a budget supermarket, or from brands to own brands and essential ranges.

Think about how you can improve the income side of the equation. If there are things you have paid for and are not able to use – if, for example, you had a holiday booked or have a season ticket for traveling to work – ask for a refund.

We offer a variety of services and solutions to help ease the burden on your finances. Give our office a call on 029 2064 1098 and speak to our head consultant Tony Arcopinto, for a complimentary, confidential consultation and let’s help you get your finances back on track today.

31 million taxpayers to get April tax cut

• 31 million people to benefit from a tax cut, as National Insurance contributions thresholds to rise to £9,500 per year.

• A typical employee will pay around £104 less in 2020-21.

• Changes underline government’s commitments to ensure that work pays and put more money into the pockets of hard-working people.

A typical employee will save around £104 in 2020-21, while self-employed people, who pay a lower rate, will have £78 cut from their bill.

The government is today setting out the National Insurance thresholds for 2020-21, with the level at which taxpayers start to pay NICs rising by more than 10 per cent to £9,500 per year for both employed and self-employed people.

Chancellor of the Exchequer Sajid Javid said:

We’re determined to do what we promised and put more money into the pockets of ordinary hard-working people. That’s why we’re starting this government as we mean to go on, by cutting their bills.

We want everyone to feel that they can contribute to the new chapter we are opening for the economy and our country, because under this Government work will always pay.

The government is committed to keeping tax low to ensure people keep more of what they earn. Ministers have pledged that the rates of income tax, National Insurance and VAT will not rise, and the government has set out an ambition to raise the National Insurance thresholds to £12,500, putting almost £500 a year into people’s pockets.

All the other thresholds for 2020-21 will rise with inflation, except for the upper NICs thresholds which will remain frozen at £50,000, as announced at Budget 2018.

The government is setting out all of the National Insurance contributions thresholds now to ensure individuals can, as promised, benefit from April 2020.

The threshold changes will not affect low earners’ entitlement to contributory benefits such as the State Pension, with the Lower Earnings Limit and Small Profits Threshold, above which individuals start building entitlement to contributory benefits, rising with the CPI measure of inflation.

Since 2010 the personal allowance, the level at which people start paying income tax, has risen from £6,475 to £12,500, an increase of over 90% in less than a decade.

The typical basic rate taxpayer now pays over £1,200 less income tax compared to 2010-11.

In addition to increasing the NICs threshold the Government will also end the freeze to working age benefits, which has been in place since 2016. From April 2020 the majority of working-age benefits will be uprated in line with inflation.

Source: https://www.gov.uk/government/news/31-million-taxpayers-to-get-april-tax-cut