Author Archive

What is stamp duty, and how does it affect me?

Posted by Sam Binstead

Stamp duty, otherwise known as stamp duty land tax, or SDLT is an area that a lot of people don’t know a lot about. The chances are you will need to pay stamp duty at some point if you’re a homeowner. With that being said though, the rules and regulations often change, so it can be hard to keep up with the latest stamp duty laws. There are a couple of changes being made at the moment though that will be beneficial to first-time buyers, or those looking to purchase a new property in the near future.

If you purchase a new property between the 8th July 2020 and the 31st March 2021, you won’t need to pay any stamp duty on it unless the property value exceeds £500,000. This is regardless of if you are a first-time buyer or not. If the property value exceeds £500,000, you will have to pay the standard rate of stamp duty for the property, which depends on how much over the threshold that is. This means that now could be a good time to purchase a new property, as these benefits will not be available after the 31st March 2021.

These stamp duty rates can be confusing, as well as an unwelcome surprise if you’re not aware of them beforehand. There are set stamp duty rates for both your first home and any additional properties. In cases where you only own one property, you won’t need to pay any stamp duty at all if the value is under £500,000.  If it is worth between £500,001 and £925,000, you will pay a 5% stamp duty rate on the portion over £500,000. Similarly, this goes up to 10% for properties up to £1.5 million, and up again to 12% for any property over £1.5 million, in each of these cases it’s still true that you pay nothing on the first £500,000. So, as an example, for a house valued at £750,000 you would pay nothing on the first £500,000 and 5% on the portion over the ‘free’ allowance, in this case £250,000 x 5% = £12,500.

What if you purchase a second home though? Upon purchasing a second property, you will have to pay a 3% higher rate regardless of property value. This means that for properties under £500,000, you will need to pay 3% in stamp duty. This 3% increase is also in place for the other price bands, which means for properties exceeding £1.5 million, you will be paying a 15% stamp duty rate.

There are new rules coming into place on the 21st April 2021 for first-time buyers. If you or anyone you are buying the property with is a first-time buyer and the property value is less than £500,000 then you will be entitled to pay less, or in some cases no stamp duty at all. This is great news for people looking to buy a house for the first time, as all the costs can add up fast, so having one less thing to worry about is a real bonus.

If you are looking to purchase a new home in the near future and you’re still unsure on how stamp duty will affect you, then why not get in touch with one of our financial advisers here at Chilvester Financial. Our team of professionals will be able to give you just the advice you need on everything stamp duty related, so if you feel that you need that extra support, then get in touch today for a free, no obligation-consultation.

Make a financial New Year’s resolution for 2021!

Posted by Sam Binstead

We’ve seen the back of 2020, and now a New Year is upon us. I’m sure many of us try and set ourselves a new year’s resolution each year, whether that be to lose weight, exercise more, or drink less alcohol. These resolutions often require you to have less of what you enjoy, so this year, why not make a resolution that will get you more of what we all enjoy, money!

Set yourself a goal to save money. This could be a set amount each month or alternatively just one big goal to achieve by the end of the year. There are multiple ways to achieve this. Set aside a certain amount each week, make a savings account and routinely deposit some money into it whenever you can, or make some adjustments to your daily life that can save you some cash. Swap out an expensive brand for a cheaper alternative, cut down on takeaways or reduce other luxuries. Maybe you should even review your subscription services and cancel anything you don’t need or use anymore.

It is very important to review your spending habits regularly. You might be paying a lot more each month than you realise for things you didn’t even know you were paying for in the first place. Been subscribed to a streaming service like Amazon Prime or Netflix but not used it in months? Perhaps you should consider cancelling it and saving yourself the monthly fee. This could then be put into a savings account and safely stored away for whenever you may need it in the future.

Having that extra bit of money will help allow you to do things in the future that you may have been dreaming of for years or it might just save the day in an emergency situation, whether that be an unexpected bill, care costs or fraud. It’s never a bad thing to have money saved up, you never know when you will want or need it!

If you don’t consider yourself to be very good at saving money and want some expert advice, then get in touch with us here at Chilvester Financial. Our team of experts will give you just the advice you need to start saving this year. Your first meeting is absolutely free and from there our team can get to know you and discuss all the options available to you.

Happy New Year from all of us here at Chilvester Financial!

Merry Christmas from Chilvester.

Posted by Sam Binstead

It’s that time of year once again, what in normal years is a festive and joyous period of celebration. Considering the year we’ve had, I think we all need that now more than ever!

Now obviously, we may not all be able to have the same Christmas plans that we normally would, but that doesn’t mean we can’t all still enjoy ourselves. After all, Christmas is a time for celebration and appreciating what we have. We’ve all made changes to our daily lives due to the pandemic so who say’s we can’t make changes to our Christmas as well, and still have a great time?

As you may have heard, the rules for Christmas are very different this year. In the UK, 99% of the country is in a tier 2 lockdown or higher, which will greatly limit our freedom to see friends and family for the foreseeable future. We do, however, have Christmas day, where we can mix with up to 2 other households, as long as you or they are not in a tier 4 area. This means that you should hopefully be able to meet up with your friends or family as long as you’re not mixing with more than 2 other households. While this may not be the ideal situation, at least we can briefly see our loved ones at the time we would miss them most, even if it is only for one day. Remember to follow the Governments guidelines, ‘Hands, Face, Space’ wherever possible to help to reduce the spread of infection and keep everybody safe during this uncertain period.

But what happens if you are unable to meet your family during this period?

We appreciate that not everyone will be able to meet their friends and family, even with the slight relaxing of the rules over the festive period. Some people may be shielding or self-isolating, while others may be living overseas and unable to make it back in time. In this case, it is important to try and recreate the day with as much normality as possible. Make a special video call over Christmas dinner, or open presents together in each other’s virtual company. You may find that just being in contact with each other is enough to make the day special.

Play games or watch films together over the internet, have a drink or just sit back, relax, and enjoy your day with whoever it is you’re spending it with, and we’re sure you’ll have a great Christmas.

Christmas happens every year, so it is more important now than ever before to stay safe and follow the guidelines. After all, if we do that this year, then perhaps next year will be a Christmas much more in line with how we have celebrated it in past.

 

Stay safe, and a Merry Christmas to you all from all of us here at Chilvester Financial!

Employing staff for the first time.

Posted by Sam Binstead

Setting up a new business is an exciting prospect, but it can also be very confusing if you don’t know the steps you need to take before you can get going. If you’ve recently become an employer, there are a few things you will need to keep in mind before you start hiring people.

One of the first things you need to decide on is how much you’re going to pay your employees. This variable can depend on many things, such as:

  • How much money can you reasonably afford to pay your staff?
  • How many people are you employing?
  • What sort of position are you hiring for?
  • How much experience is required for the role?
  • What qualifications are required to do the job?
  • How much are other companies paying for similar roles?
  • How old are the people you are employing?

You need to think all these things through before you set a wage for your staff. Paying them too much may leave you with less money for other aspects of your business but paying them too little would be unfair to the employees, or they may just find a similar position that pays considerably better. You need to strike the right balance so that both parties are happy. You must also be aware of the minimum wage for the age group of those you are employing, as this is the bare minimum you need to pay your staff. If you want to offer a “competitive salary” then you would need to offer more than the minimum wage, and similar to, if not slightly more than the salaries of similar, local companies.

There are a couple of legal checks you will need to take out on potential employees before you hire anyone. Most importantly is that everyone you employ must have the right to work in the UK. After all, you can’t employ someone in the UK if they can’t legally work here.

Depending on the type of work, you may also have to do a DBS check (Formally known as a CRB check) on new employees. These checks are usually reserved for if the field of work includes working with vulnerable people, such as the unwell, the elderly or children. Alternatively, security related work will also require these checks to be done. This is just to ensure that you’re not employing anyone who could be potentially dangerous to the vulnerable.

These are both legal requirements and must be undertaken before employing any new staff if the nature of work requires it, so it is incredibly important that you perform these checks before you decide on who you hire, should you be hiring for work that involves the vulnerable/security risks. You may have found the perfect candidate, but you still need to make sure they pass the checks they’re required to before you can offer them the job.

It is essential that you get employment insurance before you start employing staff. For example, you will need employer’s liability insurance as soon as you become an employer. It is extremely important that your business and employees are insured. Employer’s liability insurance helps cover the cost of compensation if an employee is injured as a result of the work they do for you. You must be covered for at least £5 million by an authorised insurer and could be charged up to £2,500 for every day that your business isn’t covered, so it’s very important that you get all of this set up before you start.

Once you’ve completed all of the preparation and have started hiring, you must send details of the job (including terms and conditions) in writing to your employee. You need to give your employee a written statement of employment if you’re employing someone for more than 1 month, after which a legal, formal contract must be signed by both parties. This acts as a contract until a signed formal contract can be agreed on and makes sure that both employer and employee know exactly what the terms of the employment are, such as work hours, job title, pay, dress code etc. This should ensure that both employer and employee are on the same page.
Not only will this put the new employees at ease but will also give them a great first impression of you as an employer. It shows that you are organised and that you understand clearly what is to be expected of your staff.

Before your newly hired employees start, you must first tell HM Revenue and Customs (HMRC) by registering as an employer – you can do this up to 4 weeks before you pay your new staff but you cannot register more than 2 months in advance. It can take up to 5 working days to get your employer PAYE reference number. This is a legal requirement and must be completed before you start paying your staff.

Before your newly hired staff members start work, you must check to see if you need to automatically enrol them into a workplace pension scheme. This has been in place since October 2012. While this is usually the case, this isn’t necessary in a few situations. For example, if you pay your employees less than £10,000 a year, they are under the age of 22, or if they are above retirement age already. However, assuming the employee does not meet these criteria, the only scenario in which you legally can pay them less than that if they are working full time is if they are employed through an apprenticeship scheme. This means that in most cases, you are legally required to set up an automatic enrolment pension scheme for all new full-time employees.

 

We hope this guide has been useful. However, if you feel as though you need more help setting up your new business and laying down the groundwork for your new staff, there are multiple options available to you. There are many services dedicated to guidance and advice such as the Pension Advice Service. Why not  get in touch with us here at Chilvester Financial. Our expertly trained financial advisers will be able to offer you just the advice you need when setting up your new business and preparing for new employees. So, if you need a helping hand, get in touch today for your free, no obligation consultation.

What is equity release, and could it benefit me?

Posted by Sam Binstead

If you’re looking into, or already in, retirement, you may be looking for an extra lump sum of cash, or a steady flow of monthly payments to help you out financially in this crucial transition in life. Most people will have some form of pension, but the amount you can access varies widely depending on how much you’ve paid into it during your working life. If your pension pot is running low and you need another way to access some cash, there is another additional option you can take, equity release.

With an equity release plan, if you are over the age of 55 and own your own property, you can access the money tied up in your home as  either a lump sum, several smaller amounts, or a combination of both. You may be wondering what types of equity release options are available and if it’s right for you.

There are two main options regarding equity release – Lifetime Mortgages and Home Reversion.

Lifetime Mortgages

A Lifetime mortgage is the most common option and is similar to an ordinary mortgage. With this plan, you can take out a mortgage on your property (as long as it’s your main residence) in return for either a lump sum or smaller, monthly payments. You can normally lend up to 60% of your property’s value and are still able to live at the property until your plan ends.

You have options when paying this back. You can either make scheduled interest repayments or let the interest roll up with an interest roll up plan. The loan amount plus any unpaid interest is paid back to the provider when your plan ends. This could be when you pass away, or if you move into long term care.

Home Reversion

With a home reversion plan, you sell all or part of your home to a reversion provider and become a tenant. You retain the right to remain in the house for your lifetime in return for a lump sum or smaller regular payments, but you must make and adhere to an agreement to maintain and insure the property. Normally you will receive 20% – 60% of your home’s market value (or at least of the part you sell). You or your beneficiaries do not benefit from any future increases in house value unless you reserve a share of the equity at the outset. Home reversion plans are usually available to over 60s, but with some lenders they only offer this to over 65s.

Which Equity release plan is right for me?

There are several important considerations when taking out an equity release plan. For example, equity release will usually be more expensive than a regular mortgage. You also need to decide when the best time to take out equity release would be, as the longer you rely on it, the less you’ll have in your later years or to pass on in your estate.

Likewise, Home Reversion plans often don’t offer anywhere near the market value price of your home compared to selling it on the open market.  This is important to keep in mind when weighing up your options, as there might be a better route for you to go down before taking this option.

We know that this can become very confusing. If you don’t know where to start, then why not get  in touch with us at Chilvester Financial? Our expertly trained financial advisers will competently explain everything in a simple, easy to understand way, providing you with all the details to give you just the advice you need.

Here at Chilvester Financial, we will be able to find out if equity release is something you could benefit from and which plan is right for you. If you want to find out more, or have any questions you need answered, then contact us today to book your free, no obligation consultation with our equity release specialist.

Financial Planner wanted

Posted by Sam Binstead

Are you an experienced financial planner looking for a new opportunity with an ambitious financial planning firm? We’re looking for an experienced adviser to join our team of financial planners as our business grows and expands.

At Chilvester, our vision is to redefine the way that financial planning advice is provided to authentically make an impact for our clients, both financially and emotionally, to help them achieve overall wellbeing. Just what they need.

Established in 1999, we’ve been helping clients for over 20 years. We have two offices in Wiltshire with plans for further growth across the South West.

We help across all areas of finance, from helping someone arrange a mortgage to buy their first home, saving and investing for the future, planning for retirement, through to later life and estate planning.

If you’re passionate and enthusiastic about the difference that great financial planning can make to client lives, you could be a great fit. We like people who are committed to grow and develop themselves, are open to new challenges and who can bring new skills to our team.

It’s important that you believe in our brand and everything we stand for and share our vision for providing the very best client service. We like people who are ambitious and driven, but who also have the flexibility to grow and adapt as our business changes.

Requirements:

  • Level 4 Diploma in Financial Planning (or equivalent) with an SPS
  • Progressing toward Chartered status would be an advantage
  • Experienced in providing face-to-face advice including via video meetings
  • A real team player – our success is built on our small close-knit team

Benefits:

  • Salary of £35,000 to £50,000 (depending on experience)
  • OTE of £70,000 to £100,000
  • Access to workplace pension scheme
  • Death in service benefit

About you:

  • Ambitious and eager to develop your career in financial planning
  • A strategic thinker with attention to detail
  • A desire to succeed with a ‘can do’ attitude
  • You’ll be ethically minded and always put the client first

When should you take out your pension?

Posted by Sam Binstead

Those of us in the latter half of our lives may be looking forward to withdrawing our pension. If you’ve been paying into a pension for a lengthy amount of time, you may be tempted to take it out as early as you possibly can to reap the benefits straight away. However, doing this comes with its own set of risks.

For starters, when is the earliest you can withdraw from your pension pot?

Under almost all circumstances, the earliest you can withdraw money from your pension is 55. This means that if you’re under the age of 55, you’re going to have to wait a little bit longer. Beware of potential fraudsters, some companies are now specifically targeting the under-55s, telling them they’re able to access their retirement fund.

As previously stated, this isn’t doable under normal circumstances. If you do end up withdrawing from your pension early, not only will these  companies charge a fee, which can be as much as 30% of what you withdraw, but your pension provider will also alert HMRC that money has been withdrawn from your pension, which  in turn means you will end up having to pay a tax bill of 55% of what you take out. This all adds up, you could end up having to spend 85% of the money you took out. So, in short, It’s just not worth it. It’s a lot smarter and safer to wait until you’re at least 55.

It can be quite difficult to spot these companies offering an early pension release, as they can look similar to the completely legitimate companies doing this for the over-55s. While these companies are not technically illegal, it can be considered fraud if they fail to mention the hefty tax bill that comes with an early pension release.

As alluded to earlier, it is technically possible to  withdraw from a pension before the age of 55 without the need for an early pension release company, but only under specific circumstances. This can be done if:

  • You are considered seriously ill and want/need to retire early.
  • You have a “protected retirement date” specified in your pension plan. This must have been granted before 6 April 2006 and is usually reserved for people who could not continue in their profession until normal retirement age.

Under both of these situations you would not need to use a pension release company as your pension provider will be able to arrange everything for you.

Another thing worth keeping in mind is that even if you are tempted to take out your pension as early as you can, this might not be the best option in the long term. The longer you pay into a pension, the more money you will build up. This means that there could be a substantial difference in pension pay-out if you took it out at age 55, compared to taking it out at age 65.

Not only that, but we are living longer today than ever before, which means that our pensions may need to last longer than they did in the past. This is yet another benefit to waiting to take out your pension. Not only will you have more money to withdraw, but you most likely won’t need to stretch it out quite as much as if you took it out at an earlier date. So, all things considered, while it might be tempting to withdraw from your pension as early as you can, it may be better in the long run to wait a little bit longer.

We understand that all of this can be confusing, and of course, every individual will be different, so these particular points may not be valid to everyone. If you’re concerned about your pension or want to know when is best for you to withdraw it, then please don’t hesitate to contact us here at Chilvester Financial. We will offer easy to understand, professional and unbiased information that could be just what you need. So, if you’re in need of some advice, guidance, or just want to discuss your pension with an expert, then arrange your free, no obligation consultation with us today.

Pension options in retirement.

Posted by Sam Binstead

Retirement is seen by many as the end goal of your working life, a payoff for all of your hard work. However, for many this is looking further and further away. As of the 6th October 2020, the standard retirement age in the UK is 66, but more and more people are working later in life than this due to not being able to afford retirement by that age. Covid-19 has not helped in this regard either, with many people working less or even losing their job, meaning that their retirement plans may have to have been put on hold for the time being.

Covid 19 may have had the opposite effect on those who are in a comfortable financial situation though, who may have been furloughed or spending time working from home and enjoyed it, perhaps persuading them to consider an early retirement. However, this means that those who are now planning to retire early will potentially not be getting as much income stability as they would have if they waited.

In order to keep a steady income flow in your retirement, you’ll most likely be needing a pension. But what types of pensions are out there, and which one is right for you?

Generally speaking, there are three main types of pension:

The State Pension:

This is the most common form of pension, paid for by the government and rising alongside inflation rates every year. A state pension is built up via national insurance contributions that you have made in your working life. Contributions can also be made in some scenarios where you’re not working, such as when you’re bringing up children, or on some state benefits. The current tax year 2020-21 full new State Pension is £175.20 per week.

Defined benefit pensions:

A defined benefit pension is usually associated with those who work in the public sector. This pension is salary related and the amount of pension you receive is based on how long you’ve been a part of the scheme and how much you earn. This can be paid out based on either your pay when you retire or based on your average pay while being a part of the scheme. Typically, employers no longer offer Defined Benefit pensions and there are much stricter regulations surrounding existing plans.

Defined contribution pensions.

With a defined contribution pension scheme, you build up a pension pot with which you can draw an income from when you cut down working or stop entirely. You need to be at least 55 years of age before you can start to take money out. With this type of pension scheme, you can usually withdraw at least 25% of your pot tax-free.

 

If you’re planning on retiring soon, or have had to make changes to those plans due to the pandemic and are unsure of which path into retirement is the right one for you, then why not get in touch with one of our expert advisers here at Chilvester Financial? We will be able to give you just the information you need to make the best choice for your particular situation. If that’s something you think you need, then book a free, no obligation consultation with us today.

Chilvester to the Rescue!

Posted by Sam Binstead

Scammers are unfortunately a common problem in our world. This is even more the case nowadays with the ongoing pandemic, with more and more people staying home, meaning more people are around to receive potentially malicious emails and phone calls. We may all like to think we’re too smart or have too much common sense to get scammed these days, but that might not always be the case.

A few day ago, a client of Chilvester Financial called our managing director Andrew Tottman to discuss an investment opportunity that they had been approached with. Through the conversation, Andy was able to advise them that the activity seemed suspicious and should be avoided at all costs.

The scammers highlighted here, used sophisticated techniques to impersonate another company that our client already trusted. This makes the contact seem legitimate. However, when the requests became more aggressive and pressured, the client contacted us here at Chilvester. Following their conversation with Andy, the client reported the activity to the FCA, which confirmed that this was indeed a  scam and they were not dealing with the Company they trusted. Alarmingly the names given to the clients were actual employees of the trusted company they were pretending to be from.

This is a prime example of the great lengths that scammers are going to in our current financial climate to part people with their cash. Now more than ever, it’s important to stay vigilant and stay safe. Remember, if it looks or sounds too good to be true, it probably is!

If you fear you may be a target of a potential scam, or just want security and peace of mind, using a regulated financial adviser, such as us here at Chilvester, you can be safe in the knowledge that your hard earned cash will be kept safe and that professional advice and expertise is available for you whenever you need it.

Chilvester- just the advice you need.

Mortgage Adviser Wanted!

Posted by Sam Binstead

Are you a mortgage adviser looking for a new opportunity?

Due to a high volume of work our mortgage team is now expanding and we are looking for a mortgage adviser to join our friendly team here at Chilvester Financial.

Whether you’re meeting customers face-to-face in our branches, talking to them at their home / office, or on the telephone, you’ll build great relationships every day and enjoy taking the time to understand their needs in-depth, before providing them with just the advice they need. The client experience is vital to continued new business referrals and re-mortgages. As a company we offer the full financial advice package, so our clients get all their financial needs met at Chilvester.

You’ll be carrying out structured mortgage interviews, providing compliant advice, while ensuring all the applications and paperwork are completed to a very high standard. You’ll love taking control of your day, dividing your time between customer contact, compliance and training while supporting your introducers.

You should have a very strong background in financial or frontline customer service roles, where you are used to making needs-based recommendations to customers.

Ideal Candidate:

  • A natural communicator with a passion for delivering excellent customer service
  • Ability to maintain and adhere to strict compliance standards
  • Flexible and adaptable to change
  • CeMap (or equivalent) qualified
  • Have a professional and positive approach
  • At least 1 years’ experience

If you would like to apply to this role, please send a covering letter and a copy of your CV to [email protected]

-->