October 2019 Newsletter : Cylchlythyr Misol Hydref 2019
Observations on the demise of Thomas Cook, a notoriously late payer:
- If you own / run any type of business, never be afraid to walk away from a consistently late payer. Many hotels and businesses are owed millions by Thomas Cook with dire consequences for their businesses – Very late payment is a sure warning sign.
- Always pay by credit card for holidays / big items when possible – you have more protection if things go wrong.
- Do not hoard gift cards and vouchers: those who held Thomas Cook vouchers now have worthless pieces of paper.
More peer to peer lenders and crowdfunded schemes which promised high returns of 6-10% per annum have gone bust losing savers all of their investment. If it looks too good to be true, walk away.
Review your wills regularly. This is especially important for wills made before 2008 which have discretionary trusts. The maximum amount this could cost in additional Inheritance Tax bill is £120,000 (!) for a married couple. Please contact me if you require a will / inheritance tax review.
Tax reliefs for individuals selling their rental homes, which were previously their own homes are being reduced significantly from 6 April 2020 and could lead to extra Capital Gains Tax of over £11,000. If you are contemplating selling do so quickly. Please contact me if you wish to review your potential Capital Gains Tax liabilities.
Ask Huw: A family member has asked me to be a mortgage guarantor, guaranteeing their mortgage payments. Any comments?
Normally guarantees are requested for young professional people with good prospects. Your risk is relatively low as you know how hard your child has studied and what their career / earning prospects are.
However they are sometimes requested for older members of the family who for whatever reason are not in a financially strong position. Here the risk is greater and you may need to show “tough love” and refuse. Better a short argument than a large financial obligation.
If you wish to contact me in complete confidence my details are:
www.huwrobertsaccountant.com 07967 976854