Latest news with #DanielHough
Scottish Sun
13 hours ago
- Business
- Scottish Sun
Money expert's five easy tips to boost your finances & where you're wasting cash without realising
WISE UP Money expert's five easy tips to boost your finances & where you're wasting cash without realising AS costs continue to rise, people's understanding of their own money situation is plummetting. Whether someone is earning big bucks or barely scraping by, Scots often have no clue about their real bank balance, according to the experts. 2 Lots of people in Scotland don't have a clue about their finances. Credit: Getty 2 Daniel Hough has some top tips for people needing financial help. Credit: Les Gallagher Studies show that 39 per cent of UK adults don't feel confident in managing money, with three quarters falling below the financial literacy benchmark. Financial planner Daniel Hough, who works for RBC Brewin Dolphin, would love to see a bigger emphasis placed on educating people about the ways money makes the world go round. He said: 'I'm a massive advocate for making sure that there is more education, not just in schools, but even in the workplace. There should be something about understanding tax, doing finances and what a bank account is in the curriculum. 'People need to check their pensions, make sure they've got an understanding of their bank account, understand legal documents and what happens taking on debt, and be more aware generally.' Here the money guru shares his tips for boosting your finances in five areas. DON'T COMPARE The expert said that Scots must focus on their own finances, rather than looking to others. Daniel said: 'We see it so often in someone's lifestyle, that they want to make sure that they're getting the best. Many people drive a nice flashy motor, but their monthly cost is hundreds of pounds. And I effectively refer to it as a mortgage on wheels because you don't own that asset. 'You'll look at a lot of people with designer goods, but many wealthy individuals that we deal with don't buy luxury or designer goods and they are comfortable in what they have. 'You don't want to be comparing yourself to those leading lifestyles that might not be affordable for the average individual.' Record Tax Fraud Tip-Offs, Historic Hovis Brand Sold, & Monzo Ranked Best Bank – Money News Today And he reckons one big convenience is a financial red flag. He says: 'What scared me recently is you can now order a takeaway on Klarna. So even if people don't have the means to pay for it, they will go ahead anyway.' GOING IN, GOING OUT Cash used to be king, but these days people can go days without handling notes or coins. And the pro says this makes it even more vital to be keeping an eye on your accounts. He said: 'In today's world, you have everything as more or less a subscription service. In years gone by, you really just had gas, electric, council tax and a mortgage. Now you have TV, music and gym subscriptions and car payments. SHOCK STATS A MAJOR report revealed that more than half of all children in the UK didn't receive any meaningful financial education. The Money and Pensions Service (MaPS) learned that just 47 per cent benefited from proper lessons. When the survey, based on kids aged seven to 17, was extended across five and six-year-olds, it was estimated that 5.4 million youngsters don't have the money skills they'll need in adulthood. The poll asked if they remembered getting a financial education at school that they considered useful, with only a quarter saying they had. They were also asked if they received regular money from either parents or work, if their parents set rules on it and whether they were given responsibility for spending decisions, with 14 per cent saying yes to all three. Those in Scotland were the most likely to have received some sort of financial education - with 52 per cent followed by Wales at 51 per cent, England with 46 per cent and Northern Ireland, 43 per cent. MaPS has targeted two million more children to get a financial education by 2030, by asking all parents to talk to their children about money and combine it with everyday experiences, such as food shopping, budgeting and wages from a part-time job. 'With the way we bank now, it's obviously all online. When you had your cash in hand, you could absolutely budget everything that you wanted. But when it goes into your current account, you don't really have a very good oversight of it. 'If someone gets paid and all their direct debits come out at once, they might not have a good handle on it. 'Some people don't know what's coming in and out and bury their heads in the sand. And that's dangerous, so you need to be on top of it.' PENSIONS Retirement may seem like years off, but Daniel said you must start planning for your later years now. The expert explained: 'Everyone that goes into work has auto-enrolment, where the absolute minimum is the employee pays five per cent of their salary and the employer pays three per cent. But there are a lot of companies that have better contributions to try to entice members of staff. 'I would always say to never settle for the minimum and to even increase your contributions by one per cent, because realistically you won't notice that leaving your account. ' The younger individuals entering into the job market are probably saving for a mortgage but they won't miss an extra £10 a month. 'I would definitely be advocating for two things, firstly making sure that your pension contributions are comfortable and also having an understanding of where your pension is and what exactly it's invested in.' MAKING YOUR OWN JOB There are an estimated 300,000 people who are self-employed in Scotland, and the expert says it's key that these people clue up on their finances. He said 'I think individuals that are employed tend to have a bit more of a safety blanket in place, so they've got pensions, they might have a share incentive plan, they'll have death in service, they might have a critical illness plan and have the support of sick pay as well if something happens. 'If you go down the self-employed route, you don't have those protections, unless you go out your way to seek them out yourself. 'So particularly for those individuals that have a spouse or children in their lives, it's vital when you are running your own business to look out for all of these things. 'Most individuals who are self-employed don't have this knowledge unless they choose to go out and understand it themselves.' FUTURE While looking after your cash is important, getting your other affairs in order can also impact your financial welfare in the long run. Daniel explained: 'It doesn't just have to be about finances themselves, it also can be about legal documents as well. If you have a spouse or children, I would absolutely recommend getting a will sorted. And if you're an older individual, then definitely get a power of attorney in place as well. 'These are things that are often forgotten about until much later on and sometimes when it's too late. People need to know who to contact when they need help and the implications of missed tax. 'But they also need to know the consequences of incorrect legal documents or having none at all. It's a very slippery path you could be headed down. 'If you do need advice or help for whatever reason, the first point of contact would be Citizens Advice.'
Daily Record
16-06-2025
- Business
- Daily Record
HMRC issues warning as thousands urged to 'withdraw' pension after new rule change
The rule change has prompted many savers to reconsider their withdrawal strategies. Under current rules, once people hit the age of 55, they're entitled to take out 25 per cent of their pot tax-free UK households are currently grappling with soaring living costs and political instability. meaning many are left increasingly tapping into their pension savings ahead of time. It comes as figures from HMRC have revealed that a staggering £2.2billion was withdrawn last year. The data shows a notable rise in activity among those aged 55 to 56, with 120,000 making taxable withdrawals in 2023-24. This equates to an 18 per cent rise over the last five years. Under the existing regulations, individuals can access 25 per cent of their pension pot tax-free once they reach 55, up to a maximum of £268,275. Withdrawals above this limit are taxed as income, as reported by the Mirror. Jason Hollands of Bestinvest weighed in on the situation, noting: "Demographic patterns will be a factor. But other possible influences are a rise in business exits and second property disposals ahead of the election enabling more people to take early retirement." Daniel Hough from RBC Brewin Dolphin, looking at it from a wealth management angle, remarked: "Retirement is lasting longer for people – by accessing their pensions at 55, there will be more pressure on providing a sustainable income throughout retirement, however long it may last." Experts warn of risks as numerous savers tap into pensions before retirement, with Andrew Tricker of Lubbock Fine Wealth Management stating, "The large number of savers withdrawing from their pensions before actually retiring is very concerning. Many of them are withdrawing too much – and too early." Financial specialists caution that savers might overspend to avoid inheritance tax due to new Labour Party regulations. Kate Smith of Aegon said, "The expectation is that those individuals with large estates will access their pensions earlier to avoid inheritance tax, and later life tax planning will become increasingly important." The plans have caused "concern and some confusion" for those nearing retirement, according to Mr Hough. Chancellor Rachel Reeves had announced the end of inheritance tax reliefs on pension savings by 2027, prompting many to reassess their pension drawdown strategies, as Britons can currently pass on pension wealth tax-free. How can I find out how much State Pension I could get? You can get a State Pension forecast online from the Check your State Pension service here. This provides personalised information, including your State Pension age, an estimate of how much State Pension you may get at that point and if you can increase this amount. It also allows you to view your National Insurance contribution history. More information about deferring your State Pension can be found on the website here.
Daily Mirror
16-06-2025
- Business
- Daily Mirror
Thousands urged to 'withdraw' pension cash after new HMRC rule change
The rule change has prompted many savers to reconsider their withdrawal strategies. Under current rules, once people hit the age of 55, they're entitled to take out 25 per cent of their pot tax-free Amidst rising living costs and political uncertainty, UK households are in a rush to dip into their pension pots early, with hundreds of thousands withdrawing a whopping £2.2bn last year. Official HMRC figures have highlighted a significant surge, showing that 120,000 people between the ages of 55 and 56 made taxable withdrawals from their pensions in 2023 - 24, marking an 18 per cent increase over the past five years. Under current rules, once people hit the age of 55, they're entitled to take out 25 per cent of their pension pot tax-free, subject to a ceiling of £268,275. Beyond this threshold, any further withdrawals incur taxation as income. READ MORE: Simple airport duty free trick to bag cheaper beauty and alcohol before arriving Investment expert Jason Hollands from Bestinvest commented on the trend, suggesting: "Demographic patterns will be a factor. But other possible influences are a rise in business exits and second property disposals ahead of the election enabling more people to take early retirement." From the perspective of wealth management, Daniel Hough of RBC Brewin Dolphin pointed out: "Retirement is lasting longer for people – by accessing their pensions at 55, there will be more pressure on providing a sustainable income throughout retirement, however long it may last." Highlighting potential risks associated with this behaviour, Andrew Tricker from Lubbock Fine Wealth Management, who procured the data, saod: "The large number of savers withdrawing from their pensions before actually retiring is very concerning. Many of them are withdrawing too much – and too early." Financial specialists also cautioned that savers might feel impelled to overspend from their pension funds to sidestep inheritance tax charges stemming from new regulations introduced by the Labour Party government. Kate Smith from the pensions outfit Aegon commented: "The expectation is that those individuals with large estates will access their pensions earlier to avoid inheritance tax, and later life tax planning will become increasingly important." Mr Hough expressed that the proposals sparked "concern and some confusion" for those approaching retirement age, reports Birmingham Live. Chancellor Rachel Reeves had previously broadcast the discontinuation of inheritance tax reliefs on pension savings come 2027. At present, Britons are at liberty to bequeath their pension wealth devoid of tax, yet this policy alteration has incited many to revisit their strategies for drawing down their pensions.
Telegraph
27-05-2025
- Business
- Telegraph
Families face shock £2m death tax bills on gifts gone wrong
Thousands of families have been hit with shock tax bills of up to £2m after relatives died less than seven years after making a gift. In the tax year 2021-22, the latest year for which data is available, there were 12,700 gifts made less than seven years before death, at an average value of £157,000. This is down from 13,380 failed gifts the year before, when the average value was slightly less, at £156,000, according to data released by HMRC under Freedom of Information rules. Inheritance tax is paid at 40pc of anything left over a tax-free threshold of £325,000, known as the nil-rate band. But gifts – or 'Partially Exempt Transfers' (PETs) – made more than seven years before death are exempt. However, if the person who made the gift does not survive a further seven years, their family must pay inheritance tax on the value of the gift on top of the rest of the remaining estate. Estimates suggest that the total extra tax paid on the failed gifts could be as high as £800m, but some families will have faced bills of millions. The average value of the top 50 gifts was £5.05m – compared to £3.6m the year before. Tax experts estimated that the largest failed gifts could attract inheritance tax bills as high as £2m. Daniel Hough, financial planner at wealth manager RBC Brewin Dolphin, said: 'The latest failed PETs stats, which show that inheritance tax receipts are on the increase, seem to indicate that many people are leaving it too late to discuss provisions for others. 'Our advice to clients is that once they have secured their own income requirements, they should l ook at options to pass their wealth to the next generation.' Spouses can leave their assets to their partner without triggering a tax bill, but parents cannot pass their estate on to their children tax-free. If a home is included in the estate, an extra £175,000 is given as a ' residence nil-rate band '. It comes ahead of a Labour inheritance tax raid on pensions. Chancellor Rachel Reeves announced at her inaugural Budget last October that from April 2027, leftover pension wealth would be included in an estate for inheritance tax purposes. Mr Hough said that the changes could mean that parents gave away money earlier, reducing the number of failed gifts. He said: 'In terms of the future direction of inheritance tax receipts, although difficult to guess, we could potentially see a reduction from 2025 onwards due to the inclusion of pensions for inheritance tax from April 2027, as more people seek financial advice earlier with their estate planning.' Mike Hodges, partner at tax firm Saffery, said: 'The latest HMRC figures on failed PETs are really quite startling. 'My sense is that with the inheritance tax nil-rate band now frozen until 2030, at which point it will be celebrating its 21 st birthday at this level, people are increasingly looking at what else they can do, and one option is to make lifetime gifts.' A Treasury spokesman said: 'More than 90pc of estates are forecast to have zero inheritance tax liability in the coming years and people can pass on up to £1m without being liable. 'The tax is forecast to raise more than £14bn a year by 2030, money that will help to fix our public services as part of our Plan for Change.'
Yahoo
27-05-2025
- Business
- Yahoo
Families face shock £2m death tax bills on gifts gone wrong
Thousands of families have been hit with shock tax bills of up to £2m after relatives died less than seven years after making a gift. In the tax year 2021-22, the latest year for which data is available, there were 12,700 gifts made less than seven years before death, at an average value of £157,000. This is down from 13,380 failed gifts the year before, when the average value was slightly less, at £156,000, according to data released by HMRC under Freedom of Information rules. Inheritance tax is paid at 40pc of anything left over a tax-free threshold of £325,000, known as the nil-rate band. But gifts – or 'Partially Exempt Transfers' (PETs) – made more than seven years before death are exempt. However, if the person who made the gift does not survive a further seven years, their family must pay inheritance tax on the value of the gift on top of the rest of the remaining estate. Estimates suggest that the total extra tax paid on the failed gifts could be as high as £800m, but some families will have faced bills of millions. The average value of the top 50 gifts was £5.05m – compared to £3.6m the year before. Tax experts estimated that the largest failed gifts could attract inheritance tax bills as high as £2m. Daniel Hough, financial planner at wealth manager RBC Brewin Dolphin, said: 'The latest failed PETs stats, which show that inheritance tax receipts are on the increase, seem to indicate that many people are leaving it too late to discuss provisions for others. 'Our advice to clients is that once they have secured their own income requirements, they should look at options to pass their wealth to the next generation.' Spouses can leave their assets to their partner without triggering a tax bill, but parents cannot pass their estate on to their children tax-free. If a home is included in the estate, an extra £175,000 is given as a 'residence nil-rate band'. It comes ahead of a Labour inheritance tax raid on pensions. Chancellor Rachel Reeves announced at her inaugural Budget last October that from April 2027, leftover pension wealth would be included in an estate for inheritance tax purposes. Mr Hough said that the changes could mean that parents gave away money earlier, reducing the number of failed gifts. He said: 'In terms of the future direction of inheritance tax receipts, although difficult to guess, we could potentially see a reduction from 2025 onwards due to the inclusion of pensions for inheritance tax from April 2027, as more people seek financial advice earlier with their estate planning.' Mike Hodges, partner at tax firm Saffery, said: 'The latest HMRC figures on failed PETs are really quite startling. 'My sense is that with the inheritance tax nil-rate band now frozen until 2030, at which point it will be celebrating its 21st birthday at this level, people are increasingly looking at what else they can do, and one option is to make lifetime gifts.' A Treasury spokesman said: 'More than 90pc of estates are forecast to have zero inheritance tax liability in the coming years and people can pass on up to £1m without being liable. 'The tax is forecast to raise more than £14bn a year by 2030, money that will help to fix our public services as part of our Plan for Change.'
