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Millions of UK motorists are overpaying for car insurance
Millions of UK motorists are overpaying for car insurance

Scotsman

time23 minutes ago

  • Automotive
  • Scotsman

Millions of UK motorists are overpaying for car insurance

Monthly payment plans are catching motorists out! | No Credit Millions of UK motorists could be overpaying for car insurance without realising - and experts have revealed the stealthy reason why! Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Despite many motorists pinning the high cost of insurance on their driving record - experts have warned that there's a financial sting which comes with monthly car insurance payments. While many drivers assume paying monthly is simply a matter of convenience — much like a Netflix or Spotify subscription — the reality is more complex and costly. Monthly car insurance often involves hidden interest charges and credit agreements that significantly increase the cost of car and other insurance products in the UK. Eamonn Turley, insurance expert and founder of , explains: 'While spreading the cost of car insurance over monthly payments may seem convenient, it's important for drivers to understand the financial trade-off. 'Unlike subscription services, monthly car insurance typically comes with interest charges, which means you're paying extra for that flexibility. 'Whenever possible, it's worth comparing the total cost of both options before committing.' If the average annual car insurance premium in the UK is £600, a motorist paying up front will have no added fees, whereas monthly payments may see an extra £75 added on top due to interest. This financing model, referred to as 'premium finance,' has drawn attention from the Financial Conduct Authority (FCA). They noted: 'Premium finance allows people to pay for insurance in instalments. 'With the average yearly rate on the amount of money borrowed ranging between 20 to 30%, the FCA is concerned that premium finance may not be providing fair value.' Despite the financial inconveniences of paying monthly, there are some advantages, as it can ease pressure on monthly budgeting, and allows the costs to be spread over the entire year. Not to mention, they can have a positive impact on your credit score if repayments are made consistently, but this does require a credit check, which will appear on the motorist's credit file. And if payments are missed, this can negatively impact your credit score and future access. So, if you want to avoid the hassle, experts encourage paying annually, as there are no monthly payments to track or manage, and it is the most cost-effective option as you can avoid the stealthy interest rates. But it depends on whether the upfront payment is suitable for your household budget. As Turley adds: 'Drivers need to look beyond convenience and consider the total cost to reduce the overall cost of car insurance in the UK.'

Taxpayers should avoid filing ITR before June 15: Here's why
Taxpayers should avoid filing ITR before June 15: Here's why

Economic Times

time24 minutes ago

  • Business
  • Economic Times

Taxpayers should avoid filing ITR before June 15: Here's why

The income tax department recently notified the income tax return (ITR) forms to be used for filing tax returns for FY 2024-25 (AY 2025-26). However, unlike previous years, when the ITR forms were notified well in advance, this year they were notified by the end of April 2025. Further, the income tax department has yet to release the utilities, i.e. the online software/forms necessary for filing ITRs. Tax experts advise postponing the filing of ITRs until June 15, 2025, even though the ITR forms are available now. ET Wealth online explains why it is advisable to defer filing your ITR till after June 15 and the problems you can face if you file it before. Also Read: 9 changes in ITR forms for FY 2024-25 (AY 2025-26) As per income tax rules, taxpayers should get their TDS certificates, such as Form 16 or Form 16A, latest by June 15. Chartered Accountant Prakash Hegde says, "When the taxpayer has earned any income in the last quarter of FY 2024-25 (January 1-March 31, 2025) that is subject to TDS, the payer of that income has time until May 31, 2025, to file the eTDS return with the income tax authorities. The eTDS return captures the details of the income paid to the taxpayer and tax deducted on it." The payer of income might be the taxpayer's employer (i.e., for salary), bank (i.e., for interest on deposit), company in which the taxpayer holds the shares (i.e., for dividends), buyer of property in the case of a non-resident (i.e. for capital gains), tenant of a non-resident (i.e., for rent), customer/client of a contractor/professional (i.e., for contract payments/professional fees), etc. Hegde says, "Once the eTDS return is filed, it may take up to 3-4 days for the same to get processed and reflected in Form No. 26AS of the taxpayer. If the payer of income files the eTDS return on May 31, the details of income and TDS could be available in Form No. 26AS of the taxpayer by the end of the first week of June. Further, the payer of the income is required to issue a TDS Certificate in Form No. 16 (annual certificate for salary) or Form No. 16A (quarterly certificate for other income) to the taxpayer by June 15. These certificates show the exact details of the income and the TDS deducted and paid by the payer of the income."If taxpayers have these TDS certificates, ITR filing becomes easier. Due to technological advancements, the information from the TDS certificates is auto-populated in the ITR forms. A taxpayer can cross-check the information in TDS certificates, ITR forms, and the Annual Information Statement (AIS) to ensure that the correct information is given to the income tax department while filing the ITR. Also Read: Can you claim LTA tax exemption in new tax regime? Hegde says, "As per the changes made in the income tax law in recent years, even where TDS is not deducted, the reporting entities (e.g., banks, companies, mutual funds, etc.) are required to report several kinds of financial transactions called Specified Financial Transactions (SFT) to the income tax authorities by filing an Annual Information Return. The reporting of financial transactions by reporting entities is subject to a certain threshold. Examples of such transactions are cash transactions, fixed deposits, credit card payments, purchase of bonds/debentures, investment in company shares, etc. All this information pertaining to a financial year must be reported by the concerned entities by May 31 of each year. Thereafter, the data gets processed in a few days (which may vary between 5 and 10 days) and gets reflected in the taxpayer's Annual Information Statement (AIS). The final version of the AIS will likely be available in the income tax portal by the second week of June." Tarun Kumar Madaan, a practising Chartered Accountant, says, "Once the income tax department enables the ITR utilities, early versions of the filing utility often experience technical glitches, which may cause calculation errors, system failures, or data validation issues. Allowing a buffer of a few days gives the system time to stabilise, ensuring smoother filing." Hegde says, "If a taxpayer rushes to file his ITR before Form No. 26AS, Form No. 16/16A, and AIS are available to him, there is a possibility of reporting incorrect details of income and TDS. This is because he may miss some critical information relevant to filing his ITR. If he misses such information and files the ITR, he must file a revised return, allowed until December 31 to provide correct information to the tax department. Hence, it is advisable to wait till June 15 for filing ITR." Madaan says, "Mismatch in AIS, or Form 26AS or non-reporting of TDS, even if done unintentionally, can result in tax notices or scrutiny assessments, delayed refunds or denial of legitimate TDS and even the requirement to file a revised return." He further adds, "When the income tax return is processed by the Centralised Processing Centre (CPC), TDS credit is allowed only for entries appearing in Form 26AS. If TDS has been deducted but not yet reflected in 26AS, the credit will be denied initially, which could affect your refund or result in a tax demand being raised. While a correction can be made later through rectification or revised returns, it delays resolution and complicates compliance." Conclusion While the Income Tax Act does not restrict early filing, for most salaried individuals and small taxpayers, filing after June 15 ensures complete and reconciled tax credit data and a lower risk of compliance issues or mismatched says, "Unless your ITR is urgently required for purposes such as loan approval or visa purposes, it is prudent to wait till June 15 to have all the required information to file ITR. In tax compliance, accuracy is far more valuable than speed provided the ITR is filed before the due date. A few extra days of patience can prevent future complications, safeguard your refunds (if eligible), and ensure that your ITR is filed right the first time."

Lottery winner claims prize — and gets huge shock. ‘Is this really happening?'
Lottery winner claims prize — and gets huge shock. ‘Is this really happening?'

Miami Herald

time24 minutes ago

  • Business
  • Miami Herald

Lottery winner claims prize — and gets huge shock. ‘Is this really happening?'

A South Carolina woman knew her lottery ticket was a winner, but the prize amount came as a complete shock. Betty Hill got a $1 million surprise Tuesday, May 27, when she claimed her winnings at lottery headquarters in Raleigh, the North Carolina Education Lottery said in a May 28 news release. 'I was like, 'Is this really happening to me,'' Hill told officials, laughing. 'I was surprised it was that large.' She bought the $1,000,000 Loteria scratch-off game while visiting a Smokey Express station in Maggie Valley, where she also owns a timeshare, the lottery said. 'I stopped to buy the ticket at the station I always like to stop at,' she told the lottery. Hill said she figured the prize was big after she scanned her ticket and was told to claim her payout at lottery headquarters, according to officials. However, she waited to find out just how much she'd won. Hill beat odds of 1 in 1,224,945 to snag the game's top prize, according to the lottery's website. After the surprising windfall, she chose a lump sum payment of $600,000 and took home $430,503 after taxes, the lottery said. 'I've never won anything like this before,' Hill told officials. A top prize worth $1 million remains up for grabs in the $1,000,000 Loteria scratch-off game, according to the North Carolina Education Lottery. Hill didn't say how she plans to spend her winnings. Maggie Valley is about a 280-mile drive west from downtown Raleigh.

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