January 2022 Newsletter | Cylchlythyr Misol Ionawr 2022
Happy New Year / Blwyddyn Newydd Dda! Here are some financial matters to ponder at the start of the New Year:
- Do you have a clear, up to date will? Huw can draft your will and check your inheritance tax position. He will then work with a local bilingual solicitor who will conclude matters via Zoom without you needing to visit any solicitor’s office.
- If you need a Power of Attorney for yourself or an elderly relative, please contact Huw.
- Consider fixing your mortgage as interest rates are predicted to increase this year.
- Check your bank account to cancel obsolete direct debits / standing orders.
- New insurance pricing rules mean that renewal prices should no longer be higher than new customer prices. Check your renewal quote is reasonable by using price comparison sites.
Following the new Covid-19 restrictions, the Welsh Government have launched a number of grants via their Economic Resilience Fund. Although the fund is mainly targeted at businesses who pay business rates, a discretionary fund will be delivered by local authorities to freelancers (£500 available) and to businesses that employ people but who do not pay business rates (£2,000 available).
Full details can be found here
HMRC have reported a surge in self-assessment scams ahead of the 31 January tax return deadline. If you are unsure as to whether you have HMRC's correct bank details, check with your accountant or check HMRC's bank details at:
https://www.gov.uk/pay-self-assessment-tax-bill/bank-details
An individual who does not complete tax returns surprisingly received 3 tax assessments from HMRC recently, showing significant sums of underpaid tax from a few years ago. HMRC owe a duty of care to individuals to publish assessments in a reasonable time period. If HMRC are slow in processing information, it is possible to issue an appeal under Extra Statutory Concession A19. If you or an elderly relative receive unexpected demands from HMRC, please contact us to arrange an appeal.
Ask Huw & Aled: I have read online that many celebrities have reduced their inheritance tax (IHT) exposure by using various tax planning strategies. Can you tell me a little about the different options available?
In our new series on IHT planning strategies adopted by famous figures, we start with the former Labour politician, Tony Benn. His family executed a 'Deed of Variation' to alter the terms of his will after he died. This process can be useful if an initial beneficiary may decide to "skip a generation" and pass some or all of their inheritance to the next generation or to gift their inheritance to charity. The initial beneficiary’s estate is then lower when they eventually pass away, reducing future inheritance tax.
