With a reopening of the economy its time to review your marketing messages, brand dress, coms and campaigns. For Worcestershire businesses, the Here2Help scheme can give you a kickstart and get your geed up. Book your clinic below.
This hour clinic can help you with any of the following topics:
Branding and identity
Visual Marketing and Social Media:
Claim your identity online.
Create (refresh) brand assets.
Make a social media plan.
Sharpen your messaging.
Know your audience and target suitably.
Maximising website oomph:
Campaigns to get you traffic and eyeballs.
Keywords and trends.
Search engines optimised.
Manage Google My Business profile (largest search database where sometimes people do not leave google page).
Advertising and campaigns success:
Understand Facebook advertising and Google AdWords.
Low-cost ways to promote your business to attract new clients.
Information you need to know from the UK budget 2021.
So seven 6 second statements on relevant budget details for smaller companies:
CBILS ends 31 March replaced by Recovery Loan Scheme available to end of 2021. Upto 6 year duration for loans and 3 years for overdrafts and invoice finance. Government guarantee of 80 per cent. Opens on 6 April.
Furlough and self-employed support extended until September.
Restart grants for shops forced to close. £6,000 per premises for closed non-essential outlets. £18,000 for hospitality and leisure businesses.
Self-employed have a further grant. 80% trading profits February to April, max £7500. Fifth grant May to September (80% where 30% fall in sales otherwise 30%). People that filed tax returns for 2019-20 by 2 Mar are now eligible (extra £600k people).
Corporation tax increases from 2023 to 25% where profits £250k. remain 19% where <£50000 profit. Taper corporation tax from £50k to £250k, there above the rate is 25% tax on profits.
Are you a self-employed adviser (ifa) feeling stuck in a rut and want to grow within a dynamic business? Or a qualified overseas adviser seeking premier regulated home for clients?
Join Edale UK and expat financial and investment advisory business.
Edale is providing self-employed advisers the opportunity to join their directly FCA, whole of market firm to cover anywhere in the UK as a digital and flexible investment adviser. We also have a broad range of services and clients from top to toe in the UK and across the world.
We can offer flexible working, primary focus on spend timing with clients, little bureaucracy and generous fee share. Also opportunities to expand into new professions (if you want) – business support and business advising. We have backed new companies that are now standalone enterprises. We are a growing professional service firm.
If you would like to know more, please contact us with contact details, and someone will be in touch.
Financial planning is often a lower priority for people. We are in spectacular times where financial planning should be front of mind.
We’ve opened Financial Response clinics to give anyone free financial checkup on their circumstances. Book any time from 8am to 8pm, any weekday from now on. These are for existing clients of Edale and people new to Edale. Edale’s (virtual) doors are open to anyone wanting a confidential discussion on their financial plan.
What should I do with my investment plan? My adviser cannot be reached.Client emailing Edale
Book your services with Edale through this form.
Frequently asked questions
Who are Edale?
Edale are a regulated financial adviser and investment firm. The business is based in Surrey, UK but support clients across the UK and abroad.
I am an expatriate client can we speak?
Yes, we work with international clients.
What personal financial planning services do you offer?
In August 2019, Which? surveyed 108 real financial advisers to get a sense of how much you could expect to pay for financial advice for a range of scenarios. Here we show the average quote we were provided for each scenario.
Edale is authorised and regulated by the Financial Conduct Authority.
With ISAs, Pensions and general investment accounts, your capital is at risk.
Terms and Conditions
The January Sale is available between 1 – 31 January 2020, subject to availability. A voucher must be purchased and pre-paid and cannot be refunded, unless you open an investment account with one of Edale’s product provider.
Edale UK Management Limited, trading as Edale and Edale Investments, authorised and regulated by the Financial Conduct Authority (Reference number: 812332) with offices at 15 Bell Street Reigate Surrey RH2 7AD UNITED KINGDOM.
The decision whether to invest or pay off mortgage is an interesting balance of different factors. There is the purely monetary, mathematical answer, but importantly there is the emotional and willingness to take risk considerations. To start what are the advantages and disadvantages of investing and overpaying on the mortgage.
Use extra cash to overpay on a mortgage:
Investing the money:
Mortgage free or will be mortgage free quicker
Save interest that would have been paid to the lender
Increased equity in your property
If investing in the stock market your money could be more easily accessible and used for your retirement income in the future or available for emergencies
The potential for your money to grow in value over the long term
Tax incentives or credits for retirement savings or other forms of investing
You may be charged a fee by the lender for early repayment
Money tied up in property
Money can’t be used on other things in the future unless you sell your property
Your money could be worth less if property prices fall
Investing is risky, you may see the value of your money fall
Your mortgage debt remains and you still need to make repayments
Using circumstance for an average household here is a worked example that shows the financial consequences of overpaying 10% of the outstanding debt on a property. With an outstanding debt of GBP 200k with 20 years remaining and an annual interest rate of 3.5% on a repayment mortgage overpaying £20,000 has the following impact. Overpaying would save £17,979 in interest, and means the debt is paid off 2 years & 8 months earlier. If you would face a large penalty for overpaying, consider reducing the term of your mortgage, for a small fee. This increases your monthly payments, in effect permanently overpaying.
Alternatively, here is a calculation of the tax credits of benefits from investing in a retirement pot. Your pension provider will claim back basic rate tax at 20% from HMRC adding this to your pot. If you pay a contribution of £80, your pension provider claims back a further £20 so a total gross contribution of £100 is paid into your pension pot. If you’re a higher rate taxpayer, you can claim further tax relief (at your higher rate less the basic rate already claimed on your behalf) from HMRC. This is usually claimed through your self-assessment tax return, although HMRC may also adjust your tax code to give you this additional relief. This means that if you pay income tax at 40%, you could claim an additional £20 tax relief, making your net contribution £60 in the above example.
If you’re a UK taxpayer, in the tax year 2018-19 the standard rule is that you’ll get tax relief on pension contributions of up to 100% of your earnings or a £40,000 annual allowance, whichever is lower
A £20,000 contribution to a pension has the following tax credit and growth at conservative growth estimates. The tax credit, non-taxable growth makes retirement saving very efficient in the UK.
Contribution to pension
Basic rate tax at 20% from HMRC adding this to your pot
Higher rate tax relief through self assessment
Tax relief for Basic Tax Payer plus growth over 20 years on £20,000
20 yrs growth @3%
£9,031@3% pa for 20 years
20 yrs growth @5%
£13,266@5% pa for 20 years
The option to invest or overpay into a mortgage is a decision to reduce debt versus earn profits from investing. Investment maths often tilt in favour of maximising tax deferred investing opportunity before paying off the mortgage.
Speaking to clients that work as professional service contractors or working through their own limited service company many are reviewing the use of these going forward with new UK legislation from 6 April 2020. The new legislation aims to ensure workers operating through personal service or limited companies are paying the right levels of tax and national insurance and will crack down on “disguised employment”.
The personnel arrangements are not something we can address but for people going “on-payroll” as employees and reviewing the viability of keeping their limited company here’s a few financial planning ideas to distribute retained earnings and cash into a pension and use tax reliefs to improve your financial affairs for the future and keep as much cash as possible.
“Disguised employment” is where contractors operate in exactly the same way as their permanent counterparts but end up paying less to the public purse because of the operation of the service company.
Financial planning guide for closing a service company
If you are going on-payroll the validity of retaining the old company may be limited.
Distribute retained earnings and cash in a tax efficient way and improve your financial position.
Ltd company solvent liquidation
Solvent Liquidation is known as Members Voluntary Liquidation. A members' voluntary liquidation (MVL) is the formal liquidation process used to close down the affairs of a solvent company. Basically distribute retained earnings and cash to shareholders.
10% tax via entrepreneurs relief
Entrepreneurs relief allows you to pay less capital gains tax, at 10% on gains of all qualifying assets which are sold. It is applied when you sell your business, and usually in a Members Voluntary Liquidation (MVL)
Pension carry forward
Carry forward allows you to make pension contributions in excess of the annual allowance for three years.
25% basic tax credit
The government will add 20% basic rate tax relief that effectively a 25% uplift. As a higher rate taxpayer you can claim back extra tax relief via self assessment.
25% drawdown at 55
People aged 55+ can withdraw a 25% tax-free lump sum from their pension. You pay Income Tax on the other 75%.
Close the company and access retained cash and earnings efficiently
If moving “on-payroll” the administrative costs to maintaining a limited company may be lost money. Just closing the company and distributing cash from the company will usually be taxed as income at your marginal tax rate if paid as dividends and if above £25,000 at income tax rates, the table below has England, Wales and Northern Ireland and Scotland income tax rates for 2019-20. Dividend taxes are 7.5%, 32.5% or 38.1%, depending on your marginal rate of personal tax.
Income tax rates 2019-20
Income tax rates for 2019-20 in England, Wales and Northern Ireland
Tax Rate (Band)
Up to £12,500
£12,501 to £50,000
£50,001 to £150,000
Income tax rates for 2019-20 in Scotland
Sottish Tax Rate
Up to £12,500
£12,500 to £14,549
£14,549 to £24,944
£24,944 to £43,430
£43,431 to £150,000
Paying the costs for a solvent liquidation means distributions from a liquidation are treated as capital and subject to Capital Gains Tax and the existence of entrepreneurs relief means gains are taxed at 10% above the annual capital gains tax allowance. There is a very simple worked calculation below on the benefits.
Worked example of solvent liquidation versus informal strike off
A single director/shareholder wishes to close their company on 30th April 2019 with £80,000 of retained workings.
Informal strike off total tax and fees
Members Voluntary Liquidation total tax and fees
Saving total tax and fees
Workings and assumptions
We’ll assume the following:
Retained profits are £80,000 – the informal strike off seeks to reduce this to £25,000 by paying dividends of £55,000
The director did not sell any personal assets in the year and has not used any capital gain allowances
The 2019/20 tax year dividend tax-free allowance is £2,000.
The director has no other income in the 2019/20 tax year
No salary taken from the company by the director
No dividend has been taken in the 2019/20 tax year to date
Informal strike off
Retained earnings of company
Dividend to be taken from the company before 30th April 2019
Tax-free dividend allowance used 1
Dividend Tax Payable at 32.5%
Retained earnings after dividend paid
Annual capital exemption used 2
Amount of Capital Gain
Capital Gains Tax Payable 3
MVL advisor fee (estimated)
Total tax and fees for comparison
1 To utilise tax-free dividend allowance. No other dividend issued 2 Individual capital allowance in 2019/20 tax year is £12,000 3 Entrepreneurs Relief rate of Capital Gains Tax is 10% in 2018/19 tax year
Carry forward allows you to make pension contributions in excess of the annual allowance and receive tax relief. Carry forward allows you to make use of any annual allowance that you may not have used during the three previous tax years, provided that you were a member of a registered pension scheme.
£40,000 is the most you can pay in to your pension each tax year that ends each April. The UK government has created a carry forward that lets you take advantage of any unused allowance from the previous three tax years. That’s up to £40,000 from each year, so you are able to make a pension contribution of up to £160,000 plus receive basic pension tax credit plus higher rate tax relief if a higher income tax payer.
Remember investments go down in value as well as up so you could get back less than you invest. You normally can’t access your money until any time after your 55th birthday (57 from 2028) so pension are long term investments. There are additional rules about how much you earn, whether you are in Scotland where different income tax levels apply. So this is not advice, speak to us related to your personal situation.
added to pension
tax relief added as 20% basic tax relief
extra tax relief if higher rate taxpayer
effectively cost to for £25,000 in your pension
Accessing your pension with tax free lump sum
If you’re 55 or over you can take 25% as a lump sum without paying tax. If you do this, you can’t leave the remaining 75% untouched. You must either:
buy a guaranteed income (annuity)
get an adjustable income (flexi-access drawdown)
take the whole pot as cash
Overview of how much tax you may pay on the money you take from your pension pot
The governments pension wise has a good table gives an overview of how much tax you may pay on the money you take from your pension pot.
The pension options
What’s tax free
Leave your pot untouched
Your whole pot while it stays untouched
Nothing while your pot stays untouched
Guaranteed income (annuity)
25% of your pot before you buy an annuity
Income from the annuity
25% of your pot before you invest in an adjustable income
Income you get from your investment
Take cash in chunks
25% of each amount you take out
75% of each amount you take out
Take your whole pot in one go
25% of your whole pot
75% of your whole pot
Mix your options
Depends on the options you mix
Depends on the options you mix
You should consider financial advice when accessing your pension as it is important to leave money to generate an income in later life.
Updating as we get more enquiries
We shall update this article from time to time as we get more questions from people this helps.
Unlike most financial institutions Edale operates an open all hours philosophy.
We help clients across many countries and time zones and different days of the week. In the Middle East where a working week is Sunday to Thursday and in Europe where its Monday to Friday we are always on hand. We are always on hand.
In addition, we also operate numerous communication methods to stay in touch with our clients to reflect their preferences for contact us or ask questions.
For every £1 paid from your pocket into a UK pension 25p is added. The title may sound like some form of scam but it’s a true financial return for UK taxpayers paying into their pension. For anyone with no pension savings, this is a huge missed opportunity. The government makes contributions to your personal or workplace pension in the form of a tax refund. The amount you receive depends on your income tax bracket, so if you’re a basic rate taxpayer you get a tax top up of 25% on your pension contributions, up to an annual limit. Your pension provider automatically claims the basic rate contribution on your behalf and adds it to your pension pot.
Pensions with Edale
Edale can help you form a new pension plan, as well as review existing plans. When you make contributions, we’ll automatically claim tax relief from the government and add it to your pension pot. You can manage your pension online through our online access: check your balance and past contributions.
Old style pensions are expensive
Competitive financial services in recent years especially following the unbundling of fees has resulted in lower fees for pensions. If you have maintained your pension and not moved it around we can usually find better alternatives. Whether you are at a stage looking to access your pension or adding to your pension Edale can help. As a truly independent firm, we are not tied to deals done by a network (the old adage if that size buys power, but we have examples where we get better platform offers than national IFA networks) or a parent’s manufactured products.
As always with investments, with a pension, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice. For personal financial advice speak to one of the Edale team.
As a busy entrepreneur, you’re adept at wearing many hats: product developer, salesperson, tech troubleshooter, to name a few. However, personal financial security and ensuring a good retirement mean that the finance hat is a particularly tough one to wear. Let a team of skilled professionals handle it for you.
Edale is a financial planning firm with targeted expertise in small businesses. By working with our advisers, you’ll tap into two decades’ worth of combined experience in investments and financial planning so that you can
Be coached. We work with clients to uncover their real intent in life and what they really want to achieve. This allows any further financial planning to have a focal point to ensure that our other services meet our clients’ true life goals. This service helps clients understand the importance of money in relation to their aspirations.
Locate assets suitably. We provide advice on the best way to shelter investments from tax and how best to provide protection for the client’s (or their beneficiaries) assets.
Get set. You’ll be better able to monitor your financial situation when Edale helps you to plan, set up, and manage your wealth online. You’ll have a personal plan alongside the business plan. Spend less time tracking your bottom line and more time enhancing it for your business and own financial success.
To discuss how you can bring your company’s director financial care in line with your long-term business objectives and get financially fit personal finances contact Edale.
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