Latest news with #financialburden
Times
21-07-2025
- Business
- Times
The obscure rule that lets you bust the Isa allowance
Money worries are a horrible reality after the death of a spouse. But a little-known tax exemption could help ease some of the financial burden by boosting your Isa allowance way above the £20,000 annual limit. Additional permitted subscription (APS) allows a wife, husband or civil partner to inherit an Isa allowance from their partner, offering a popular, and legal, way to beat the taxman after a death. It allows a spouse to benefit from a higher tax-free allowance, even if their partner left the actual assets in the Isa to someone else. Savers have a £20,000 tax-free annual Isa allowance, but an APS can be applied to any new or existing Isa opened by someone whose spouse has died. This gives them an additional tax-free allowance for one year, equal to the value of their partner's Isa when they died. Once a person has died, their accounts become 'continuing Isas', accruing interest or returns on the stock market. This status ends either three years after death, when the administration of the estate is complete or when the Isa is closed — whichever one comes first. For example if your Isa had £10,000 in it when you died and your spouse had already used their full £20,000 limit for the year, they could increase their tax-free allowance for that year to £30,000. If the Isas contained £80,000, the spouse would have an allowance of £100,000 for the year. In many cases, the spouse will inherit the money in the Isa, but even if they don't, they can still claim the tax-free allowance. The time limit for claims is three years after death, or 180 days after the assets were distributed to the surviving spouse or other relatives. • Why the cash Isa shake-up was put on pause Before you can apply, the death must be registered with your spouse's Isa firm and you will have to prove that you were living with them when they died. APS applications should be made to the Isa manager that will ultimately be looking after the funds, so if you plan to move the money that would be your Isa firm, rather than the one that holds your spouse's account. That firm will then claim the APS on your behalf by contacting the other Isa manager to get the final value of the accounts and calculate the tax-free allowance. Not all Isa firms offer APS, however, so check to avoid unnecessary paperwork and stress. Sarah Coles from the investment platform Hargreaves Lansdown said: 'These inherited allowances aren't always well understood, but can be incredibly valuable — potentially protecting tens of thousands of pounds from tax.' Hargreaves Lansdown found that the number of clients inheriting Isas through APS went up a third in the last tax year, compared with 2023-24. It was two-thirds higher than in 2022-23. • My brother is getting a £40k early inheritance. Will I be stung with the tax bill? If you leave stocks and shares Isas to your spouse, all the investments can be transferred, but you have to do it within 180 days of the assets being distributed. Hargreaves Lansdown found that 48 per cent of those who went through the APS process didn't make any changes in the first year to the portfolio they inherited
The Sun
20-07-2025
- Business
- The Sun
Six ways parents can keep costs low during expensive summer holidays through vouchers, clubs and freebies
SUMMER holidays can be a financial nightmare for parents already stretched by the cost of living crisis. Across the UK, families could be spending up to £1,000 more per week once school is out. 2 And if they decide to go abroad, the average cost of a family holiday now tops £3,600. But help is out there – and there are ways to ease the burden, especially if you're on Universal Credit or a low income. Kids eat free deals In England, Wales, Scotland and Northern Ireland, families can make the most of free offers, local council schemes, and low-cost childcare this summer. Many cafes and restaurants run "kids eat free" offers during the holidays, helping to cut the cost of days out. Supermarket chains like Tesco give kids a free meal as long as you buy something from the adult menu. Asda has meals for children at just £1, and you don't need to buy anything else. Restaurant chains like Pizza Express, TGI Fridays, Franco Manca and Bill's also usually have summer deals. These offers are available to all families, not just those on benefits. Free holiday clubs Parents on low incomes can also get support from their local council through the Holiday Activities and Food (HAF) programme. I've saved £15k on trips to Ibiza, Mallorca & Turkey with term time holidays - I'll never stop, fines are a tax on the working class This gives children the chance to join in with sports, music or creative clubs, and includes a nutritious meal every day for free. The support available depends on your council, but generally families with children who receive free school meals are eligible. In some areas, kids can get a place in a holiday club for the equivalent of four hours a day. Check with your local authority to see what's on offer and how to sign up. Vouchers for bills and groceries Another option for help is the Household Support Fund (HSF), which is also run by local councils. This government scheme gives struggling households access to food or energy vouchers, or direct payments. Councils across England have received a share of £742million in funding, which will run until March 2026. Many councils offer vouchers for supermarkets or energy bills, while others send money directly to residents. You usually qualify if you're on a low income, claiming benefits, or classed as vulnerable. Again, contact your council to find out what help is available. There are also handy apps that can help reduce food costs. Apps to save on food Olio is a popular option that lets households and businesses give away food they don't need. Items are offered for free, but it's often first come, first served, so you have to be quick. Another useful app is Too Good To Go. It offers surprise bags of leftover food from restaurants and shops at a discounted price. You won't know what's in the bag until you collect it, but it can be a good way to save on snacks and meals. Free or cheap days out Families on Universal Credit and other benefits can also get access to top attractions for a fraction of the usual cost. ZSL London Zoo offers £3 tickets for those on Universal Credit, Working Tax Credit, Child Tax Credit, Employment and Support Allowance, Income Support, or Jobseeker's Allowance – a huge saving on peak tickets which usually start at £33. How to survive six weeks of school summer holidays IF you are struggling with the six week summer holidays, you've come to the right place... BATTLING BOREDOM: Despite hours of activities and playdates, if your kids are already complaining there's nothing to do, parenting expert Liat Hughes Joshi says: 'Don't feel you have to organise every second of the holidays. Kids benefit from boredom and learn to make their own fun. 'Boredom can trigger creative and imaginative play but you need to encourage kids to get used to not being told how to spend their time. 'Ride out the pleas of boredom. Counter it with comments such as, 'What do you think you could do?' and maybe have a list of 'I'm bored' activity ideas on the fridge.' SCREEN OVERLOAD: It's tempting during the holidays to rely on a digital babysitter but don't let them gawp their whole summer away in front of a screen. Liat says: 'It's unfair to expect older kids to power down but it's important to set some ground rules. 'Set family tech rules together. If you're often distracted by your phone, follow the rules too. Maybe tell the kids they aren't allowed any screen time until they've done set chores, some exercise, or a board game. 'Are there times when you'd like to ban screens completely? Perhaps during dinner or when they have friends over to visit. 'Tech is a battleground for parents, but you have to set boundaries. Stand firm and be prepared to be unpopular.' TOO MUCH TOGETHERNESS: You love your kids, but being with them 24/7 can be exhausting. Do not feel guilty if you need a bit of downtime. Liat says: 'If you're juggling work and household tasks as well as occupying the kids, it's normal to start feeling overwhelmed or jaded and in need of some peace. 'If you can't afford or don't want to send your kids to all-day camps, look for free kids' workshops so you can get on with jobs or have a break for a couple of hours. 'Seeking a spell of quiet every now and then doesn't make you a bad parent — in fact it will probably make you more positive and enthusiastic when you are with the kids.' SCHEDULING CONFLICT: Schedules can go out the window during holidays, but late nights and early mornings can mean tired and unhappy children. Dr Tamara Bugembe, paediatrician and founder of says: 'Children get grumpy, test boundaries and become challenging when routines are broken. 'Sticking to some kind of routine during the holidays is a good idea. 'We release hormones at different times of the day and when regular meal times and bed times are broken, it causes dips and peaks in mood. 'Holidays are about having fun but an early night once or twice a week will make everyone happier.' EXCESS ENERGY: Make sure kids get out in the fresh air to tire them out — and make them healthier and happier. Dr Bugembe says: 'Sunshine also tops up vital vitamin D levels which helps improve bone strength and energy levels in children. Our levels run low in winter so let the kids stock up in warmer weather. 'Letting them run around in shorts and a T-shirt is the best way to top up. Make sure they're wearing sun cream, get outside and have fun. 'Encourage them to try healthy habits such as cycling and walking. They'll hopefully get hooked and want to carry them on when the weather gets colder.' Other spots such as York Castle Museum offer free entry, while you can visit Kew Gardens or one of the Historic Royal Palaces for just £1. There are even more free or discounted activities, including cinema tickets for as little as £2.50, free sports sessions and library reading challenges that offer free prizes. Childcare is another big cost for parents over summer, but there are ways to ease the pressure. Tax-Free Childcare allows working parents to save 20 per cent on childcare costs. If you've got two children in clubs for five weeks, that could be worth around £300. This support is available for children under 12, or under 17 if they have a disability. You can get up to £500 every three months – a total of £2,000 a year – per child to help with costs like nurseries and summer clubs. However, if you're on Universal Credit or receive tax credits, you must not apply for Tax-Free Childcare as it can affect your benefits. Instead, you can claim help through Universal Credit, which may cover up to 85 per cent of your childcare costs. Summer doesn't have to break the bank. From free meals and clubs to discounted trips and help with childcare, there are plenty of ways to make the most of the holidays without spending a fortune. 2
RNZ News
17-07-2025
- Business
- RNZ News
Do we have to have such long school holidays, mother asks
Photo: 123RF Tauranga mother-of-two Karina Tendler says when it comes to school holidays, something needs to change. She recently approached the Ministry of Education asking it to consider altering the term schedule because of the financial burden she says it imposes on families. Her son recently started school, and she has a three-year-old daughter who will go to school in a couple of years' time. "The two-week breaks each term, combined with the five to six weeks over summer, create a significant strain on our ability to balance work and family life. "While there are private school holiday programmes available, they are often unaffordable, costing $50 to $70 per day. We're aware of subsidy programmes, but unfortunately, we don't meet the eligibility criteria. This leaves us - and many others - in a difficult position. "I understand that the current system may have worked better in the past when single-income households were more common. But in today's economy, dual-income families are often a necessity, and the school calendar hasn't adapted to reflect this reality." The Ministry of Social Development's OSCAR subsidy is available for school holiday programmes up to 50 hours a week. The amount parents can get depends on the number of children they have and how much they earn. Someone with two children can get $326 per child, per week in the holidays if they earn less than $1264 a week before tax. That drops to $101.50 a week if their income is between $2485 and $2669. Above that, there was no subsidy available. Tendler said she was relatively new to the country and was surprised when she discovered the situation. Even working from home was not a good solution, she said. "To work from home when you have a five-year-old son with you, it's not a productive day." She said the model was outdated. "It's very oriented in terms of one parent working, one parent is staying at home. Maybe it was like that in the past in New Zealand, but I feel the economy now and the cost of living now is not really representing that anymore, and there are a lot of families that both of the parents are working now and you need to find a solution around it." She said it seemed that teachers did not want to lose the days off. "You could still have a balance and have holidays, but not two weeks. Reduce it to one week and keep summer as it - it will help some parents." She said even with two parents splitting leave, they did not have enough days to cover the holiday. Other options could be to give parents more paid leave, or provide cheaper, government-run holiday programmes, she said. Sean Teddy, hautū (leader) of operations and integration at the Ministry of Education, said the school holidays were set - in agreement with sector groups - in 2016. Schools can choose a start date between Auckland Anniversary Day and the day after Waitangi Day, and can end no later than 20 December in any year. Secondary and composite schools need to be open for 380 half-days a year. Primary, intermediate and special schools need to open between 380 and 390 half-days, depending on the timing of Easter. "In most years, the first school holidays for primary schools are timed to include the Easter break. To create terms of a reasonably uniform length in years when Easter falls particularly early, all or some of the Easter break will fall during the first term. In these years, fewer half-days can be completed before the latest end date." The ministry told Tendler it was important to strike a balance between ensuring students were in school long enough to receive the education they needed, and having holidays long enough to give them a chance to rest and recuperate. Financial mentor David Verry at North Harbour Budgeting Services said Tendler was not alone in her concerns. He said it was something families struggled with every year. "One of the big issues is they come up in one big lump sum that you have to pay. "If it's $50 a day, that's $250 a week and that's after-tax dollars people have to come up with. Over a couple of weeks, if you have two children, that's $1000. That's a huge chunk of cash to have to front with." The summer holidays could be even tougher on family budgets, he said, because people would also have to cover the cost of Christmas and back-to-school. It was even harder on single parents, he said. Verry said he would advise people to set money aside for holiday programmes through the year, if they could, so they had the funds available when they needed them. "So you can dip into that without having to go, 'Oh gosh, we're going to have to cut our food budget because we just haven't got enough.'" While people who could work from home might have flexibility to reduce the hours their children went to holiday programmes, or not use them at all, manual workers did not have that luxury. "It's a bit harder when you have a manual job or you're working in a supermarket because you've got to be there." Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Khaleej Times
17-07-2025
- Business
- Khaleej Times
How to save thousands on your school fees in the UAE
While most schools may not start for at least one month, invoices for student fees are already being sent out. Fees can start from around Dh9,000 a year and go up to Dh120,000 dirhams for the top international schools. If you have more than one child, then the cost shoots up. Many parents have been looking into options to reduce the financial burden. There are options available such as paying annual fees upfront (as opposed to by term) to earn a possible discount, looking for interest-free school loans or taking out a credit card that lets you earn cashback on school fees. 'It's no surprise many families are looking for ways to soften the blow, and cashback credit cards seem like an obvious solution,' says Mike Coady, CEO of Skybound Wealth Management. 'There is opportunity here, but only if you understand the rules of the game.' The catch There are many credit cards available that offer cashback on spending. But you need to make sure your credit card explicitly includes education payments in its cashback categories, or you may be disappointed when that generous reward fails to land. 'Not all credit cards treat school fee payments equally. Some banks classify them under education, others under government services or quasi-cash transactions, which may be excluded from cashback altogether. So read the fine print,' says Coady, who is also a financial adviser. 'Too many people assume that just because they used their card, they'll earn cashback. But unless the transaction codes align with your card's reward criteria, you could walk away with nothing.' Deals and limits Also look out for limits on the cashback you can earn. Most UAE cashback cards cap their rewards somewhere between 200 and 1,000 dirhams per month. The CBD Super Saver credit card offers a maximum of 10 per cent cashback a month but it needs to be spread across different spending categories (bills, education, supermarket and transport). The most you can earn for education fees is 150 dirhams cashback a month – 1,800 a year. The ADIB Cashback credit card pays 4 per cent cashback which includes education costs, but with a 300 dirham monthly cashback limit. That works out at a maximum cashback of 3,600 a year – one of the most generous deals around. Emirates Islamic Cashback Plus offers education-specific cashback rates but you will need to check the criteria. Rehaan Nensey has one child at Brighton College in Al Barsha and uses the CBD Super Saver card. 'I know it offers up to 10 per cent cashback but it is capped and depends on spend. But I'd say I have saved about Dh2,500 so far on school fees. A friend mentioned that the monthly option is generally available, but not all schools advertise it. Some other parents just split school fees across different cards.' So, your first step should be to ask the school if you can pay your fees monthly. Not all schools allow this, and those that do may charge administrative fees. Speak directly with the school bursar or finance team. It's also worth checking out cashback cards from Sharjah Islamic Bank, Ajman Bank and Emirates Islamic, although check their cashback limits on education spending. While FAB GEMS remains the only card with an exclusive, branded school partnership (with GEMS Education), and pays up to 4.25 per cent cashback. Watch the interest 'It's only a win if you're paying off your balance in full every month,' adds Coady. 'Otherwise, that 3 per cent cashback is quickly erased by 30 per cent interest.' It's also worth exploring zero per cent instalment plans on credit cards. Many UAE banks partner directly with schools to allow parents to split large payments over 3–12 months interest-free, a smart way to ease cash flow pressure, even if it doesn't earn cashback. Stuti Sri, the co-founder of says that Emirates NBD continues to provide zero per cent instalment plans of up to 24 months on education expenses through popular cards like Go4it Platinum and Manchester United. ADCB also offers zero per cent Easy Payment Plans for school fees via its Touchpoint and Lulu cards, which parents often use to break up large annual payments. 'RAKBANK, through its Skiply app, supports fee payments to over 300 schools and allows parents to pay using RAKBANK cards with 0 per cent instalments and no extra processing fee. Ajman Bank also offers zero per cent profit instalments on education payments above Dh1,000 without any processing fee at all,' she adds. According to research, Al Hilal Bank provides an Education Cash feature where up to 80 per cent of your credit limit can be transferred directly to the school with 0 per cent profit (a one-time fee applies). Standard Chartered and HSBC both offer school fees deals with zero per cent instalment plans.
Malay Mail
05-07-2025
- Business
- Malay Mail
Hamzah: Opposition to grill RM4b Kota Madani plan in Parliament, citing fiscal risks and affordability concerns
LARUT, July 5 – The Opposition reportedly plans to raise concerns over the Kota Madani smart city project in the upcoming Dewan Rakyat sitting on July 21, citing potential long-term financial burdens. Opposition Leader Datuk Seri Hamzah Zainudin said the initiative, launched by the government in Putrajaya last month, must be scrutinised to prevent adverse impacts on future generations. 'We will bring this up in Parliament. We don't want today's government decisions to become tomorrow's burden,' he was quoted saying by Utusan Malaysia. Hamzah questioned the necessity of such a large-scale development given the country's current fiscal situation, comparing it to previous government housing projects that did not create long-term debt. 'We shouldn't just roll out a mega project that ends up being unaffordable. Our national debt has already surpassed RM1 trillion,' he said. He argued that building an entire city under current financial constraints risks prioritising short-term interests over national welfare. Hamzah also responded to calls urging him to table an emergency motion in Parliament over the appointment of judges, amid mounting public criticism. He stressed that judicial appointments must reflect fairness and transparency to ensure the integrity of the legal system. 'I don't want there to be a perception that anyone appointed to replace the current Chief Justice is being selected to serve the prime minister's interests,' he added. Last month, Prime Minister Datuk Seri Anwar Ibrahim launched Kota Madani megaproject in Putrajaya, worth RM4 billion and set to be constructed in Presint 19. Occupying 41.28 hectares, the project developed by Putrajaya Holdings Sdn Bhd (PjH) under a public-private partnership model will offer 10,000 high-density vertical residential units to house more than 30,000 residents. The first phase of the project is scheduled to begin this September and is expected to be completed by the end of 2027.
