PM promises there will be no VAT increase if Tories are in power

In a move that surprised the other political parties, Prime Minister David Cameron announced that there will be no rise in VAT if the Conservatives are re-elected.Continue reading→

Red tape and bullying from big firms continue to affect SMEs

A poll by the Forum of Private Business (FPB) has said the growth of UK SMEs is being undermined by spiralling costs of doing business, suffocating red tape and bullying tactics from big companies.Continue reading→

The first £1,000 of peer-to-peer earnings will be tax free

Following the announcement of the 2015 Budget, the new tax-free savings allowance will also apply to peer-to-peer lending and earnings.

The Government has confirmed that from April 2016 the first £1,000 of peer-to-peer earnings for many workers will not be subjected to tax, though a £500 restriction will be in place for higher rate taxpayers.

Top-rate taxpayers are ineligible and will still incur the typical 45 per cent tax rate on all their earnings.

At the Budget announcement, Chancellor George Osborne made it clear that non-Isa cash savings would benefit from tax relief; however, it was not clear as to whether or not the reforms would include lending transactions between peers, where investors lend money to numerous individuals through a funding platform.

Zopa, a leading authority in the sector, says it pays an annual return of 5.1 per cent on loans lasting up to five years, with interest paid as and when borrowers repay their loans.

With such a high interest rate available, peer-to-peer lending outperforms returns on cash savings products offered by most banks and building societies’ savings accounts.

Furthermore, peer-to-peer lending does not involve the same conditions as savings or current accounts such as a minimum deposit or account fees being charged.

According to Zopa, because the majority of people usually put approximately £6,000 in peer-to-peer, the type of lending has essentially become tax-free for many savers.

However, if a peer-to-peer lender also earns interest at their bank or building society, this will also count as part of their tax-free allowance.

Open Europe thinktank tells UKIP that EU departure would cost UK economy £56bn

A leading thinktank – Open Europe – has delivered a warning to the UK Independence Party (UKIP), stating that Britain could lose 2.23 per cent of its GDP by 2030 (approximately £56bn) if it leaves the EU and the attached benefits of the single market.Continue reading→

A confident start to 2015 for small businesses, according to the FSB

Small businesses have had a confident start to 2015, according to the first quarter results from the Federation of Small Businesses’ (FSB) Small Business Index.Continue reading→

The 2015 Budget and how it affects the UK

Chancellor George Osborne’s sixth and final Budget of this Parliament highlighted Britain’s impressive growth following the recession, as well as the rise in employment and falling debt.Continue reading→

Annual tax forms to be replaced with digital accounts.

The end of the annual tax form will be announced by George Osborne today as he promises to bring in digital tax accounts for all individuals and small businesses.Continue reading→

Tories plan inheritance tax break for all properties worth up to £1mn

Homeowners with properties worth up to a value of £1mn would be able to pass them on to their children without them incurring any inheritance tax, if plans drawn up by George Osborne are implemented.Continue reading→

New penalties for “hard core” tax dodgers set to be announced in 2015 Budget

A clampdown on tax avoidance and evasion is expected as part of the 2015 Budget, with George Osborne increasing efforts to force the wealthy to pay what they owe.Continue reading→

Is your heartbeat the key to secure banking?

Can you imagine being able to get into your bank account simply by using your heartbeat to prove you are who you say you are?

The Halifax is trying out new technology which allows the customer to access the banking app on their mobile phone without putting in any codes, but by checking their unique heartbeat pattern for security.

The technology, known as a Nymi Band, uses Bluetooth to pair with a companion app for Windows, Mac, iOS and Android. It has been developed by Canadian firm Bionym.

In order to work it first has to record a person’s ECG to the band and link itself to the app. ECG data is captured when the customer wears the band on one wrist and touches a sensor on the top of the band with their opposite finger.

Halifax said the technology would only work if the band was on the account holder’s wrist, with the band also only detectable by the device it was originally paired with.

“In a world passwords and pin numbers, the Nymi Band will allow you to wirelessly prove that you are you to the world around you,” Bionym claims.

The technology has already been tested by the Royal Bank of Canada. 250 bank staff and customers used the wristband to login to their online banking.

It could have countless applications, experts say, including giving workers access to offices or to unlock and start cars. It is also predicted to appeal to governments who could use it to secure border posts, public transport and other facilities.

It could also be used to control numerous electronic devices around households from alarm systems to TVs.