Economic growth Signs of slower growth than some had originally expected, amid supply constraints and a Covid-19 resurgence, have led to lower growth forecasts for the United States. Expectations are that the US should reach its pre-pandemic growth trend in the first quarter of 2022, rather than late 2021. Across the euro area, hospitalisations appear to have
In September 2020, annual inflation in the UK was running at 0.5% on the CPI measure and 1.1% using the old RPI yardstick. At the time price rises were the least of our worries. 12 months later and inflation has become a hot topic. The latest (August) figures are 3.2% CPI and 4.8% RPI. The
Those in control of how to extract money from their business broadly have three main options. These are to take out the money either as salary, dividends or by making employer pension contributions. The Health and Social Care Levy and the increase in dividend tax rates both make the extraction of profits via pension contributions
We have written previously about how employees exchanging part of their salary and/or bonus for increased pension contributions has become common. We explained how this can be far more attractive than the employee making a direct pension contribution on his/her own behalf. Attractions of salary sacrifice Contributions paid out of an employee’s after-tax pay are
The social care announcement on 7 September 2021 increased both national insurance (NICs) and dividend tax from 2022/23. In addition, the March Budget revised corporation tax rates from 2023/24. The combined effect of these announcements might shift the decision of whether to take a dividend or not from your business. We have looked at some examples to see where these shifts might have taken
There are a few levels on which maintenance occurs. The start of anything we do is to review the latest research and evidence. We then decide whether we need to make changes to any of our processes. This ensures they prudently reflect the latest thinking. When we say the latest thinking, we do not mean
Your portfolio represents your future. It is only natural to want to check how your investments are doing. How often you need to do this depends on the type of investor you are. Speculators who constantly buy and sell individual stocks will monitor performance frequently, perhaps daily. Those investing for the long term with robust
In today’s markets, bond yields are low and those of high-quality bonds are the lowest. In addition, they could quite feasibly crash too with interest rate rises. So why have bonds in a portfolio? It is quite straightforward. Imagine you only hold equities with a portfolio of £200,000. The economy takes a turn for the
The second quarter of 2021 has seen most major markets continue on an upward path. For once, the UK, as measured by the FTSE 100 was not the laggard, as that prize went to Japan. However, in Q2 the FTSE 100 was still behind the overall global equity performance of 6.8% in sterling terms. This
Since 6 April 2010, the personal allowance is reduced by £1 for every £2 of income above £100,000. Since then, the personal allowance has almost doubled. It was £6,475 in 2010/11 and now stands at £12,570 in the tax year 2021/22. Income at this level is formally taxed at 40%. However, the fact that anyone
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