Tag Archives: economy

Wear a uniform? Pay less Tax

Do you have a uniform or work clothes that you have to wear to work? Then you can make your uniform act as a source of tax refund.

The HMRC allows a set amount of tax refund for the maintenance of the work uniform. It includes anything from a simple t-shirt to an elaborate uniform like that of a policeman or a nurse.

In order to be eligible for the tax refund, you have to qualify in all the following criteria.

  • You must wear a recognizable uniform for work that is unsuitable for any other place or occasion. It might or might not have a logo.
  • You have to wear the uniform while you are on the job, working.
  • You have to pay for the upkeep of the uniform and replace with your money when required. If your employer pays you an allowance for this, then you do not qualify for the refund, even if you do not take the allowance.
  • You have not defaulted on your income tax in the years for which you are claiming the refund.

Now comes the most important question- how much can you expect?

It depends on the industry you are associated with and the tax that you pay. The standard maintenance allowance is £60 and the minimum that you can claim is 20% of this amount, i.e. £12. If you pay a higher rate of tax then you can claim 40%. This rate was £45 before April, 2008. So, you have to keep it in mind while applying for the refund.

Those who are claiming it for the first time or have an amount that is more than £1,000 they have to do it by post. You can simply call them the second time round or if you have a lower claim.

The letter that you send to the tax office claiming the uniform tax refund should have the following information:

  • Your employment details for the last four years, along with the details of the employers with whom you worked.
  • Your job title and the industry that you are associated with
  • Detail of the laundry allowance or cleaning services that your employer provides, if applicable
  • Details of your uniform

How do you want the refund- deducted from the tax of the current year or as a check for the amount?

It might take about five weeks for the claim to get processed. Once done, the next time will be quicker.

This guest article was submitted on behalf of u-tax.co.uk – find out how you can get a uniform tax refund.

Inflation… What’s That?

So inflation is on the increase but what does that mean for you? Think about it for a minute – what do the economists mean when they’re referring to changes in inflation? Let’s take a quick look at what inflation is and how it affects you.

A few facts:

In basic terms inflation is a rise in price in the general level of prices of goods and services in the economy over a period of time.

As the general price level increases, each unit of currency buys less goods and services.

Oddly enough – it really is as simple as that – so the next time economists and politicians complain about high inflation that is all they’re referring to.

It’s the likes of high inflation that see’s many people turning to their credit cards or payday loans in times of need… not always the best choices of finance but a need many of us face on a day-to-day basis.

Want a more detailed explaination on how inflation works? It’s a pretty simple calculation:

Inflation Rate = Consumer Prices Index (CPI) X Retail Prices Index (RPI).

But what is a RPI or CPI?

RPI simply measures the change in the cost of retail goods.

CPI measures the changes in the price level of consumer goods and services purchased by households.

As these levels increase so does inflation… simples!

Economically Did David Cameron Make The Right Decision For The UK?

Economically Did David Cameron Make The Right Decision For The UK?

Economically Did David Cameron Make The Right Decision For The UK?

Following David Cameron’s refusal to sign the EU treaty, the question over whether he did the right thing for the UK has been debated to quite an extent over the past week or so and many still appear unsure.

Let’s take a look at a quick summary of Mr Cameron’s decision:

The EU treaty promised no concessions to the UK yet Europe wanted the UK to help bail them out of a mess created by the european currency.

If David Cameron had signed the treaty the UK would have resulted in the UK submitting our entire national budget to the European Commission. In essence we would have been relinquising our sovereignty to an all-powerful European super-power.

Mr Cameron’s decision not to back the treaty was to protect British interests – not European.

Even pro-European, Nick Clegg supported David Cameron’s decision on this by commenting:

“The demands Britain made for safeguards, on which the coalition government was united, were modest and reasonable. They were safeguards for the single market, not just the UK.”

The important thing to note in all of this – in spite of the state of the Global economy, The UK is still a financial super-power with a large percentage of the World’s market operating from London. Allowing Europe to take control of our national budget would be, not only economic suicide, but would also lead to a loss of our identity as British citizens. We would merely become citizens of a European super-state.

Call me a euro-sceptic if you like but let’s face it – would you want to be lumped into a european economy with the poor state of the likes of Greece and Portugal?

Irregardless of that it is important to note that David Cameron does support the need for stability for the european economy (euro) as it is in the UK’s interests.

I’ll be watching this space over the next 6 – 12 months. Let’s hope David Cameron doesn’t buckle under pressure… or worse, lose the election to Ed Milliband. Then we’d all be screwed!

Credit cards – in this economy?!

Are credit cards really the best solution in an economy ravaged by debt? That’s a good question and while credit cards might not be suitable for everybody and in every instance there is still a place for them, even in this post-recession, fragile economic state the UK has found itself in.

What benefits are there to having a credit card?

Get stuck in and read our top reasons to own a credit card, other than to lend you money… you may be surprised in what you learn.

1. Credit cards, when used sensibly, can help to repair a damaged credit rating. Even if you get a high-interest credit card, when used in moderation and, as long as you pay off debts monthly, you could see your credit rating sky-rocket!

2. Using balance transfers to pay off other debts could benefit you as, usually, it proves cheaper to pay off debt on a credit card as interest rates tend to be lower.

3. Use credit cards to help spread the costs – especially if you need to buy expensive goods or services but can’t pay-off in one go.

4. Earn cashback with credit cards, as long as you pay off credit card debts on a monthly basis.

5. Get exclusive discounts on certain goods or services with a credit card – many cards offer this service and certainly worth shopping around for to make sure you get the best credit card to suit you.

Whilst all of these are valid reasons to own a credit card Creditwindow understands that not everyone has a great credit score and it can prove difficult to obtain the one you want. As a result we have included a great list of both premium rate and poor credit score cards – check them out and find a credit card to suit your needs.

Feeling The Pinch – British Consumers Cutting Costs To Make Ends Meet

Feeling The Pinch - British Consumers Cutting Costs To Make Ends Meet

Feeling The Pinch - British Consumers Cutting Costs To Make Ends Meet

British shoppers could benefit from switching credit card accounts or to a cheaper utility provider after a report revealed that growing numbers of consumers have very little cash to spare.

The report revealed that 32% of people felt they had little to no money left over as they are increasingly concerned about the rising cost of utility bills, increasing fuel prices as well as the current state of the economy.

The report also suggested that more and more shoppers are tightening their purse strings, showing that more than 70% of consumers are changing their shopping habits and a whopping 65% are switching to cheaper grocery brands so they can stay within their monthly budgets.

The Director General of the British Retail Consortium (BRC), Stephen Robertson, suggested that “the squeeze on disposable incomes is getting tighter.” He added that around a third of people said they simply have no spare cash.

On a more positive note, Mr Robertson commented:

“With finances under pressure, consumers are becoming increasingly savvy, with 65% saying they are switching to cheaper grocery brands, often own-brand labels, to stay within their budgets.Competition within the sector is helping to take the edge off price inflation with a larger number of promotions and discounts on offer.”

Whilst consumer confidence did increase over the second quarter as more and more people felt better about personal finances and job prospects, it still remains relatively low when compared to last year.

In spite of this many economists are expecting to see an increase in consumer confidence in 2012, off the back of the London Olympics.

If you’re feeling the pinch of the credit crunch and suffering as a result of the recession then there are a number of options you could consider including:

  • Changing your existing credit card to one with a competitive interest rate or cash back benefits.
  • Switching to an affordable utility provider, in fact a company such as the Energy Helpline can help find you the cheapest provider for your area.
  • Switching to more affordable brands, such as supermarket own brands over the more expensive ones.
  • Switching your car to a smaller hybrid / eco-friendly model to cut the cost of fuel.
  • Look at your car insurance or home insurance and consider how much it’s costing you – is there a cheaper alternative?
  • Consider a small short-term loan such as a payday loan

There are a number of other cost cutting things you can do – the above are just a few! However, if you’re still really struggling with making ends meet and are faced with debt then you could consider a debt management plan to consolidate any existing debts into one lump sum that gets paid off every month.

Check out these related articles:

Top Ten Money Saving Ideas

Ten Top Tips For Making More Money

If you are looking for a cheap utility provider then check out the Energy Helpline:

Fuel Prices Start To Rise… Again!

The price of fuel is still adversely affecting motorists’ credit cards and bank accounts throughout the UK, a new report by the AA has revealed.

A recent report by breakdown service, the AA, has revealed that the slight dip in petrol and diesel prices appears to be over. As a result British motorists could be in for a hard time, feeling the effects on their bank accounts and credit cards.

After fuel prices initially dropped lower in mid-June they appear to have edged up in the last few days. The average price of petrol now sits at 136.07p per litre, down by 0.86p on the same time last month but more than the 135.75p per litre reported in the first 5 days of June. Diesel prices have followed a very similar trend.

The AA have said that, in spite of the fall in fuel prices, UK petrol drivers have been denied much of the saving that the crash in oil prices should have allowed. It should be noted that their was a significant fall of 16 dollars a barrel. This indicates that the petrol companies are short changing their British customers by aroun 2p per litre, or £1 a tank.

Edmund King, president for the AA, suggested that on average a two-car family could have saved £8.49 over the month and potentially could have improved poor inflation figures.

Mr King added:

“Without transparency in the oil and fuel markets and a regulator to ensure fair prices, drivers, consumers and the nation are open to being ripped off by whoever wants to make an extra buck.”

Mid & Low Income Families Feel The Pinch

Middle and low income families are feeling the effects of credit card and personal loan debt, in spite of economic recovery, a new report has announced.

Whilst the UK’s economy has continued to improved at a laboriously slow rate it is unlikely that many low and middle income families will feel any real benefits until 2015, a recent report by the Resolution Foundation has revealed.

The organisation suggested that the living standards of many families on low and middle incomes were feeling the pinch even before the recession hit. With an estimated 11 million workers on low to mid incomes many continue to feel it’s effects.

The Resolution Foundation based its analysis on Government projections, indicating that average pay is set to flatline until 2015 when it’s expected to increase again. In fact, the group suggest that, come 2015, pay levels are expected to be back at what they were in 2001!

With personal credit card and personal loan debt at high levels, combined with falls in the volume of “middle skilled” jobs available the quality of living for many is likely to suffer.

James Plunkett, Secretary to the Commission on Living Standards for the group, commented:

“We all know that the recession has hit living standards hard but something deeper has changed in our economy – even during the so-called boom years, ordinary workers weren’t seeing their living standards rise.”

Mr Plunkett added that “the big question now is what will happen when growth resumes – will ordinary workers reap any of the benefits? This report suggests that is far from certain.”

Banking Reform On The Cards For Tax Payers

Banking Reform On The Cards For Tax Payers

Banking Reform On The Cards For Tax Payers

The UK’s economy has felt the reverberating affects of the recession and many of the country’s banks were brought close to collapse.

As a result the Independent Commission on Banking (ICB) has released proposals to change the way in which banks operate. If the UK government gives the go-ahead on these proposals the British people could see major changes in banking security and competitiveness, improving both services and products.

Published earlier this week, the ICB’s report sets out their plans for a new and safer banking system that limits the risk to customers’ money as well as liability to the tax-payer if a bank should fail.

Key changes to the banking system:

1. Retail banking (mortgages, savings, credit cards and current accounts) will be kept seperate from far riskier investment banking (stocks and shares dealing). In addition to this the ICB have suggested:

• Banks are to put a “worst case scenario” plan into place that allows their retail banking to continue servicing the need of customers, even if the investment banking fails.

• Banks will have to set a limitation on the extent to which the retail section can bail out the investment side of the bank should it get into financial difficulty.

2. Banks are to make it a simpler process to switch bank accounts. Including:

• Introducing portable account numbers so that customers will not need to change direct debits and standing orders if they switch accounts.

• A seven day transfer period to be enforced to speed up the process of switching accounts from one bank to another.

3. Lending Criteria for financial products and services, such as personal loans, mortgages and credit cards should be make more flexible.

4. Larger banks such as Lloyds Banking Group should be made to sell off more retail branches as they currently provide up to 30% of all british current accounts. The ICB feel that this financial burden should be reduced.

It’s believed that, once the proposals have been scrutinised, the ICB will present their suggestions for banking reform to the British Government.

The final decision will lie with the Government to decide whether the benefits outweigh the risks to the tax-payers and whether further rules and restrictions will push the large banks off of British soil.

In spite of this it should be noted that the ICB began this investigation at the insistence of the Chancellor. This suggests that, if not all, then many of their recommendations are likely to be put in place.

Check out our great range of bank accounts to find the right one to suit your needs.

Rising Cost Of Food Impacts Consumer Spending

A recent report by the British Retail Consortium (BRC) has reported that food prices have started to creep back up again over the course of April, impacting our wallets and credit cards.

The report showed that the price of food in supermarkets increased by 1.2% between March and April, adding even more misery for cash-strapped customers and putting even more pressure on the Bank of England to drive-up the base interest rate.

The BRC have blamed the hike in price of food in shops on the cost of fresh fruit, dairy products, eggs and cooking oils.

In spite of food price inflation slowing in March due to retailers putting more special offers to attract cash-strapped consumers this appears to have had little to no affect on the longer-term implications. In fact it’s thought that this was one of the main reasons for the consumer price index falling by 0.4% in March from the previous month.

Economist with Barclays Capital, Chris Crowe, has suggested that the growing cost of food will help to push the CPI up by 0.2%.

The Bank of England’s Monetary Policy Committee are expected to announce whether it is to raise the base interest rate on Thursday from their record low of 0.5% in an attempt to curb the CPI, which is more than twice that of its 2% target.

The BRC director general, Stephen Robertson, suggested that retailers’ efforts to generate sales by heavily discounting goods over Easter “were key to holding back prices on non-food goods.”

Mr Robertson went on to add that “the upward pressures on food prices, which eased in March, bit back in April.” However, the consolation for consumers is that there is still a large number of offers to be had and the fact that 40% of the groceries being bought are on promotion clearly indicates that customers are still taking up those offers in a big way.

If you’re struggling with credit card debt check out our range of debt management guides on our blog or find a debt consolidation programme to suit your needs.

UK Consumers Feel The Sharp Pinch Of Inflation

UK Consumers Feel The Sharp Pinch Of Inflation

As wages remain static British consumers are really starting to feel the pinch of inflation on their spending.

Consumer debit and credit card spending has dropped significantly due to rising inflation and incomes remaining static, on average.

Latest figures by the Office for National Statistics (ONS) revealed that households’ disposable income has fallen for the first time in almost 30 years, which overshadowed positive news that the UK’s economy shrank by less than city analysts previously thought.

With the 0.8% fall in consumers’ disposable income the ONS have stated that this clearly provides further evidence that consumer spending is getting squeezed to a high extent.

It’s believed that this is the first decline in spending power since 1981 and is a result of wages failing to keep up with the rising levels of inflation.

Economist at the Centre for Economics and Business Research (CEBR), Scott Corfe, believes that projections for economic growth are too optimistic, in spite of being reduced by the Office for Budget Responsibility.

Mr Corfe added:

“The decline in real household disposable income seen in the final quarter of 2010 will almost certainly continue in the first quarter of 2011, as high consumer price inflation – now over double the Bank of England’s target – erodes household spending power.”

He went on to state that this clearly “implies a very weak outlook for the consumer this year.”

With consumer debit and credit card spending becoming so severely impacted by a fragile economy many are really starting to feel the squeeze. Why not check out some of our other articles on how you can protect yourself and your family from financial difficulties:

Ten Top Tips For Making More Money

Top Ways To Improve Your Credit Score

Top Ten Money Saving Ideas

Image: Michal Marcol / FreeDigitalPhotos.net