How Child Benefit will be Changing

Changes are due to take place in the way in which child benefit is distributed which will bring an end to all parents receiving the benefit. There has been both support and criticism for this idea, particularly the specifics of how it will be changed.

Child benefit’s origin goes back to the last time Britain had a coalition government just after the Second World War. Times were tough, with food rationing and a lack of housing, and due to the war the population numbers had inevitably taken a big hit. Child benefit was introduced as a way of encouraging people to have more children and boost the population. It was paid to parents for their second child and subsequent children at 5 shillings per week. Child benefit payments were later bought in for the first child too.

How does it Currently Work?

All parents are entitled to child benefit for any children they have. This is currently not dependant on income or other factors. Parents receive £20.30 per week for their eldest child and £13.40 for subsequent children. There is no limit as to how many children they can claim for. One parent receives the child benefit. For married or cohabiting parents it is up to them who receives the benefit. For those who do not live together it is usually dependant on who the children live with.

If two adults with children begin a relationship and move in together with both of their children they receive £20.30 for the eldest child and £13.40 for other children. If a couple divorce and one remarries and has more children the child benefit depends on whether or not the children live with them. If they do, they will receive £20.30 for the eldest child and £13.40 for other children. If their child(ren) from their previous marriage does not live with them they will receive £20.30 for the eldest child from their second marriage.

The Initial Proposal

The current government is looking to make changes so child benefit is not received by everyone, and in particular not received by those they do not consider to need it. The initial proposal was for families where the highest earner pays the higher rate of tax to not be entitled to child benefit. These plans have been controversial though. One concern has been that some would lose the benefit while others with a higher family income would not. With only the top earner being a deciding factor it meant that two parents earning £35,000 each and £70,000 in total would keep it while families where one parent doesn’t work but the other earns £45,000 would lose it. Another concern is the so-called ‘cliff-edge’, with a sudden cut-off point making the difference between being entitled to everything and nothing. It meant that earning £1 more effectively led to losing over £1,000 (more for those with more than one child).

The New Proposal

There is now a new, altered proposal, whereby parents will lose more child benefit depending on their income. There is still the issue of only the top earner being taken into consideration but the ‘cliff-edge’ effect will not exist. Families where the top earner earns more than £60,000 will lose all child benefit, while families where the top earner earns less than £50,000 will keep it all. In between these amounts child benefit will go down the more that is earned. 

There is no perfect way of distributing any benefit and this is the case for child benefit. There will always be some who feel that they are not getting what they should. There is one basic fact, though, and that is that some rely on it to an extent while others clearly do not need it. Deciding on a cut-off point, however, is difficult and there will always be some who disagree. The country’s finances are tight and giving child benefit to the wealthiest is not a good use of public money. It is not, though, easy to define the boundaries between being wealthy and not. The way that it will now be distributed may not be as everyone would like but it does seem preferable to the initial proposal.

Andrew Marshall ©

Children’s Savings

Parents Supporting Children for Longer

An increasing number of parents are supporting their children financially into and throughout their adulthood. There are a number of factors and changes in society that are contributing reasons for this. 

For many parents this starts off when their children go to university, something that more and more young people are doing. Until now parents have had to pay for tuition fees although this will be changing. There are also the living costs of those at university, with many parents paying for at least a proportion of this.

On average, young people are living with their parents for longer. Parents are effectively paying higher bills and spending more on food than if their children did not live with them. There are a number of reasons for this trend. It is becoming more difficult for young people to buy a home and some are choosing to live with their parents in an attempt to save for a deposit as they are fearful that they will never be able to afford a home if they move out and have to rent elsewhere. People are also getting married later. The average age of first marriage for women has increased from 23 to 30 since 1981, while the average for men has increased from aged 25 to 32. Although the majority do not live with their parents until they get married, if people were marrying at age 20, for example, they would not live with their parents at that age. Increased unemployment over the last few years among those under twenty-five has had a major influence on the numbers remaining at the family home, with many not being able to afford to move out. Although many pay their parents some rent, for most this is not as high as it would be were they living elsewhere. It tends to be more to cover parents’ costs rather than for them to make a profit as is the case with landlords.

It is not just the case that young people are not moving out of their parent’s home until they are older but some have returned to live with them at a later stage. Those being made redundant and losing their jobs have sometimes moved back home for the short-term, and in some cases this has become more long-term than intended due to difficultly finding work.

Living costs are increasing at a higher rate than wages and this inevitably means people have less money in their pocket. Parents who are in a more financially stable position than their children are often happy to help financially where possible.

With the increased home deposits now required, more parents who are able to do so are helping their children to buy their first home. This is a big cost and something many are unable to afford on their own.

Instances where two parents have to work are increasing due to increasing living costs and many unable to support two adults plus children on one salary. This means those with young children have to find somebody else to look after their children while they are at work. With childcare expensive (and also increasing) more parents are helping with this, particularly if they are retired. They are looking after their grandchildren while their children are at work. This is not helping them financially by giving them funds, but rather by helping their children keep down their costs.

The extent to which parents are having to assist their children financially is a worrying trend that may concern young parents believing this will be the same for them further down the line. Parents of young children, though, can avoid the likelihood of having to support their children financially when they are adults. Beginning to save or invest on their behalf is a good way of doing this. The new child ISA, named the Junior ISA, is a good option whereby parents can invest up to £3,600 a year for their children. The advantage is that interest and capital gains are not taxed.

Andrew Marshall ©

Things to Think about for a Website

There are many factors that need thinking about when creating a website or having one created for you. These factors partly depend on the type of website you are having. Is it just a personal site? Is it for an organisation you are interested in, such as a local sports club? Or are you a business manager who wants a website to help you promote your business?

Design

The design of a website is important. It doesn’t matter how many people come to your site if the design alienates them and they leave straight away. For first factor in the design is a simple one: it needs to look good. You need to make sure you get your message across and that your main message is visible to visitors. Businesses need to make it clear who they are, what they do, and which products or services they offer. They need to display to visitors why they are different to their competitors by pointing out their USP.

An important decision to make is whether to go for a simplistic design or something more elaborate. This depends on the site. For some types of website a quality design that stands out might be better, while for others a relatively simple design might be more effective. You don’t want to overdo the design; clutter is not attractive and can make it difficult for people to find what they are looking for. This leads to them going somewhere else instead. Certain types of websites have their own conventions and you should research similar sites to see if there are certain rules websites in the same area follow.

Development

Website development is where designs are turned into a functional website. You have to decide whether you are going to develop it yourself or hire someone to do it for you. This comes down to your level of skills as well as the type of website. It may not be a disaster if you get a personal site a little wrong, whereas doing so for a business site could be a major problem. Professional website development is, therefore, preferable for a business site. Functionality is crucial and it must look professional.

Promotion

For most businesses a website is a promotional tool. You need to think about how you are going to get your website noticed by the public. How are you going to advertise your website? Do you want to be found in the search engines? If this is important to you, you may need to hire someone to perform the SEO so the site appears well positioned in the likes of Google. This can be particularly important if the aim of the website is to generate new business. If it is more for existing customers then other forms of promotion might work better.

Web Hosting

For a site to appear on the internet it needs to be hosted. The main decision here is whether to opt for shared hosting or dedicated hosting. This is a very important choice as not having adequate hosting can cause major problems. It can result in the site running slowly or being offline, meaning people are unable to view it. Shared hosting is where a web server is shared with other sites. This is basic hosting but can be adequate for some sites. Dedicated hosting is where the site has its own dedicated server which is required for larger sites or those with higher traffic levels.

Andrew Marshall ©

The Impact of Tax Changes on Charities

Since the budget there has been some controversy over the impact of the changes in tax law on charities. Changes have been proposed whereby there will be a cap on the total amount of tax relief an individual can claim each year. The proposal calls for this to be capped at £50,000 or 25% of someone’s income.

Is the Government Attacking Charities?

The government is not attacking charities as these changes are not intended specifically to impact them but to impact other forms of tax relief and those who attempt to reduce their tax bill to as little as possible. Charities, however, have been caught up in this as donating to charities is one way in which some are able to reduce the amount of tax they pay. The potential impact on charities has become the headline story with many charities claiming they will suffer. They fear that some people will have less of an incentive to donate to good causes.

How can Donating to Charity lead to Paying Less Tax?

Charities are able to claim gift aid on donations. They can claim back the basic rate of tax that has been paid on the amount of the donation. This is 20%. Someone earning the basic rate of tax would have paid 20% in tax on everything they have earned above the personal allowance. A charity is able to claim this amount back in the form of gift aid. Higher rate tax payers, though, pay 40% tax on earnings above the 40% threshold. With 20% going to a charity in gift aid these tax payers can reclaim another 20% back, meaning they effectively pay less tax. This has led to the suspicion that some increase donations to charity to avoid paying tax, or to pay less tax. They aren’t personally better off by doing this but they are choosing where their money goes. They are able to give to a charity of their choice rather than pay it to the government in the form of taxation. They decide how it is spent, meaning the government doesn’t.

What are the Reasons for this Proposed Change?

The reason for this proposed change is simple: to prevent some from not paying tax and lead to more overall funds being received through taxation. The real target is other tax breaks, such as through business expenses, but charities fall under the same law.

Reasons against these Changes

It appears that many do not agree with these proposals. It is feared that some may donate less to charity as there is not as much of an ‘incentive’. This won’t impact the majority of donations (as the majority of the population are not higher rate tax payers) but it could impact larger donors. Some may give less as, in effect, it is costing them more or saving them less, depending on which way you look at it.

Will this really have an Impact?

It is difficult to predict the real impact this could have. If some are donating to charity to avoid tax then there could be a negative impact on charities. If people are donating for the right reasons, though, it could be argued it will not and donors will continue to give at the same levels. It will only impact higher rate tax payers but the largest donations do make up the majority in total money received by charities.

Andrew Marshall ©

Charity Law

Video Conferencing for Solicitors

Video conferencing is rapidly becoming more widely used across all sectors of business. It allows companies to communicate internally across offices in different locations and with customers wherever they are based. This technology saves on travel time and costs. For some companies it can add up to vast sums of money being saved and hundred, or even thousands, of hours more productivity every year. The legal industry is one that is beginning to utilise video conferencing, with solicitors able to use it in a number of different ways.

What can Solicitors use Video Conferencing for?

The most obvious use of video conferencing for solicitors is to enhance communication with their clients. It can be used where face-to-face meetings are not possible as it is preferable to telephone or email communication. This is particularly useful where a solicitor and client are not based in the same part of the country and face-to-face meetings are rarely possible. Video conferencing is not just useful when communicating with clients, but also with colleagues and others involved in a legal dispute or legal issues of some sort. It can be used for internal communication for national and international law firms or even between solicitors or barristers and judges or others working within the legal profession. If a solicitor is researching an upcoming court case they may use video conferencing to talk to people who can help their case and to speak with witnesses before the trial.

It is not just outside the courtroom that video conferencing can be utilised within the legal profession, but in the courtroom too. There are circumstances where the testament of a witness has been taken via video conferencing technology. This allows evidence to be given by those unable and unwilling to attend a trial in person.

What is the Impact on Productivity?

The main purpose of video conferencing in any sector is to increase productivity. If you can hold a video conference with someone then it can reduce the need to travel. This means making cost savings with no petrol, train journeys or flights to pay for. This can, in turn, be passed down to clients. It is not just cost savings that make video conferencing beneficial; it also leads to a better use of time, with less time spent travelling.

The Quality of Video Conferencing

The quality has improved significantly over the last few years, something that is likely to continue. The clarity of images and the sound quality have improved. You don’t get the picture break-up that may have been the case in the past and there isn’t a delay. The costs have also gradually come down making it more affordable.

There will always be circumstances where face-to-face discussions are necessary so video conferencing is not always appropriate. There can’t be a situation where a solicitor never speaks to their client in person. It can, though, improve communication where face-to-face conversations are not possible. More law firms are utilising this technology as it makes them more efficient (both in terms of time and money) and improves the solicitor-client relationship.

Andrew Marshall ©


Solicitors London

Why Shutters are Popular in the Mediterranean

Window shutters originated in the Mediterranean region and are widely thought to have come from Ancient Greece. Originally, houses only had a window gap with nothing protecting from the outside elements. This was way before the invention of glass and something was required to fill the window gap. Originally large stones were used and this later led to marble and eventually wooden shutters as we know them today.

Although used much more widely now, shutters are still popular in the Mediterranean countries such as Greece, Italy and Spain. Whereas curtains are traditionally used in Northern Europe, in Southern Europe shutters are more popular. There are a number of reasons for shutters being particularly popular in the Mediterranean.

One reason for the popularity of shutters in the Mediterranean is the look of them. Both interior and exterior shutters are stylish in their own way. Exterior shutters are particularly popular in Mediterranean countries; people care about the look of their homes from the outside and exterior shutters give them a certain elegance and traditional look. Part of the popularity of wooden shutters is that it has become a tradition and a trend. Many have them on their homes and others like the look of them and follow suit.

The main reason why interior wooden shutters are popular is the specific climate in that part of the world, with hot, dry summers but winters that can be cool and wet. The general adjustability is the main practical benefit of shutters and the weather conditions in Southern Europe can make them particularly beneficial there compared to other regions. Louvred shutters have benefits when temperatures are high. They can be adjusted to keep the heat out, with the window open to allow airflow but the louvres closed to keep out the heat of the sun. For those wishing to allow sunlight in but keep their privacy, louvred shutters are again useful. The louvres can be adjusted to let in the optimum amount of sunlight, whether this is all sunlight, no sunlight, or something in between.

In the Mediterranean it can get hot and humid at times in the summer and this includes at night. Wooden shutters are practical when wanting to let in air at night. For those with curtains, even where the window is open they will stop the airflow to some extent. With shutters this isn’t necessary as they can be closed but with the louvres remaining slightly open.

As the winters can be chilly compared to summertime, shutters can offer some protection. Due to the quality wood generally used in their manufacture, when closed they can, to an extent, keep the cool air out.

There are many reasons for shutters being popular in the Mediterranean region. The main reason is their practicality, especially during the warm summer months that can be experienced. They are also a tradition in the area though, and something that are sought after by home owners. Their popularity has spread across the globe but they remain most common in the Mediterranean.

Andrew Marshall ©

Introduction to Wi-Fi Hotspots

Wi-Fi hotspots are locations that offer wireless internet access to members of the public. Examples of locations that typically offer this include cafés, restaurants, airports, train stations, hotels, libraries and schools and universities.

How can the Public Access Wi-Fi Networks?

Members of the public can access the network at a Wi-Fi hotspot through Wi-Fi enabled devises including laptops, mobile phones and tablets. This means people can use their mobile devices to access the internet while away from their home or place of work.

How Does it Actually Work?

Put simply, these hotspots use radio waves to transmit data to and from the internet. Wireless routers are used to transmit data to and from wireless enabled computers. This works in the same way as a wireless network many use at home or in offices.

How Much Does it Cost?

The cost of using a Wi-Fi hotspot varies from location to location. Some are free to use and are used as marketing ploys. For example, cafés might offer free Wi-Fi in an attempt to entice customers through their doors. Hotels might do the same to encourage visitors to stay with them instead of with a competitor. Often, though, there is a charge to access the network and the price of this can vary greatly.

What are the Benefits?

You can’t quite access the internet from anywhere, but the main benefit is that internet use is often within relatively easy reach. If you are in a city centre and suddenly need to send an email or visit a website then you are likely to find somewhere with a Wi-Fi hotspot, such as a café, where you can then do what you need to. This can be particularly useful to those having to access the internet for business purposes while on the move. The internet is becoming more widely used for business and this means Wi-Fi hotspots can be useful. If someone has a lengthy train journey, for example, and the train has Wi-Fi access then they may be able to use the time to connect to the internet and work. This can turn what might otherwise be an unproductive journey into a productive one.

What are the Downsides?

The main downside is the potential for security concerns. Compared to when using wired networks, it is relatively simple for someone who knows what they are doing to hack into computers connecting to the internet wirelessly. Many don’t realise the security concerns and therefore do not protect against them.

How can Security Issues be Prevented?

One way of limiting security problems is to use common sense. People shouldn’t deal with personal and confidential information online when using a hotspot unless they are sure they are protected. This includes things such as dealing with important passwords and accessing online bank accounts. As well as the usual internet security measures (anti-virus software and firewalls) it is wise to utilise a VPN (virtual private network). A VPN will create a secure tunnel between a computer and the internet meaning others cannot interpret data.

Andrew Marshall ©

VPN Provider

Pension Issues and Starting a Pension

When should you start a pension? That is a question many are asking themselves, especially as increasing numbers of young people have failed to do so.

Ideally you should start paying into your pension as soon as you begin work, or at least when you start working full time. Many have failed to do this with some ignoring the issue of investing in their retirement into their 40’s or even 50’s.

There are a number of reasons why people are failing to start a pension. Many have simply ignored it and not thought about it. When you are twenty-five retirement is still over forty years away, so to many it is not a priority. Others feel that investing in a pension is unaffordable. With food and fuel prices increasing at a faster rate than the average salary a pension is seen as less of a priority compared with other, more pressing costs. The quality of pensions has also been a problem. Quality pension schemes can be hard to come by and many employers don’t offer pensions, or don’t offer pensions that are as favourable as they may have been in the past.

The general issue of pensions is an increasing problem. The population is getting older, with more people of retirement age and, relatively speaking, fewer people paying taxes to fund retirement. This problem has often been referred to as a ticking time bomb.

Paying into a pension early is advisable. The later you leave it the more you will have to pay in to achieve the same standard of living. One model is that you should halve your age when you start paying into a pension and invest that percentage of your salary towards it. So if you start paying into a pension at age twenty you should invest 10% of your salary for the rest of your working life. This should be 15% if starting aged thirty and 20% if starting aged forty. The actual amount being invested would therefore increase as your earnings increased. It could be argued that these are higher than necessary percentages and that investments should depend on what you want to achieve; how much pension you want to be able to withdraw once you retire. The above model does, though, illustrate the importance of starting as early as possible. The later you leave it the more of your earnings will have to go towards your retirement.

Fewer people owning their home is another issue that could impact people upon retirement. In the past people have had the idea that they will have their mortgage paid off by the time they retire, or at least close to being paid off. This is becoming less common, a trend that appears likely to continue. People are getting onto the housing ladder later in life (in their late thirties on average) meaning they are less likely to have paid off their mortgage by retirement. There are predictions that an increasing number will never buy a home meaning they will have to rent for the entirety of their retirement. This may mean requiring a more significant pension for the same quality of life compared to having no mortgage or rent to pay.

There are currently many issues surrounding pensions and people are, on average, starting to invest in their pension later in life. This is a problem, and although not always easy to do, people should begin to pay into a pension as soon as they can.

Andrew Marshall ©

Investment Trusts

Dedicated Hosting vs. Cloud Hosting

There are many web hosting options and two of these are dedicated hosting and cloud hosting. There are advantages and disadvantages to both and these are outlined below.

Dedicated hosting is where a web server is entirely dedicated to your website and, unlike shared hosting, isn’t shared with other websites. With your website being the only one on a server it prevents the problem of other sites having an impact on yours.

With cloud hosting you can make use of several servers as required. These are available as and when you need them. Rather than having a physical server (or more than one) that you are paying for all of the time, you use the resources you require at any particular time and pay accordingly. This means that should you suddenly require more resource you can use it, but without paying for it when you are not using it. Essentially, you pay for what you are using at any particular time.

Advantages and Disadvantages of Dedicated Hosting

The main advantage of dedicated hosting is that you are not sharing servers with other websites. This means the entire resource of the server is dedicated to your site. For example, bandwidth for the server is not shared amongst other websites. The lack of other sites makes dedicated hosting very reliable. Unlike shared hosting, problems with other sites cannot impact you. Dedicated hosting can be pricey, though, compared with other forms of hosting as it often means website owners are paying for resources they don’t require. Dedicated hosting is a good option for websites where traffic is consistently high. The bandwidth of dedicated hosting may be required and if traffic is steady it is easier to decide how much resource is needed.

Advantages and Disadvantages of Cloud Hosting

Paying for what you use is an obvious benefit. Cloud hosting means having extra resource available to you but not having to pay for it all of the time. Cloud hosting is beneficial for growing businesses. It allows them to easily adapt their hosting as they require more resource. Websites with fluctuating traffic can also benefit. It means having the option to use extra server space when traffic is high but without having to pay for it when traffic is low. Seasonal businesses, for example those who are particularly busy at Christmas or during the summer, are amongst those who should consider cloud hosting. With several servers being used cloud hosting can increase reliability. The overall load is balanced across different servers, meaning less reliability on one server. There are obvious advantages to cloud hosting but also some downsides. Unlike with dedicated hosting, you don’t have access to a server. This means being dependant on third-party providers and having less control. Though improving, security can also be an issue, with websites being more vulnerable to hackers.

Dedicated Hosting or Cloud Hosting?

Different options are suitable to different websites. Dedicated hosting might be preferable for established websites or those which are highly sensitive, while cloud hosting can be the better option for sites where traffic fluctuates or is expected to increase over time.

Andrew Marshall ©