The annual return

If you are a business owner in the UK then you will know all about annual returns. This has to be sent to HMRC to let them know how much you have paid your employees, including yourself, during the past year. It should show money that is paid as salary and bonuses along with details about how much tax and national insurance has been deducted from each employee’s pay-packets.
You or your accountant will have to fill out more than one form; the P14 and the P35. These cover wages, tax and national insurance information, while benefits for employees are covered by a third form which is the P11, which can be submitted later in the summer.

What happens to annual returns in 2014?

From next year, you will not need to submit annual returns, which is great news! This is possible because all PAYE (Pay As You Earn) data will be shared with HMRC electronically under the new RTI (real time information) scheme that began earlier in April all across the UK. This new system sends all the information you usually find in an annual return, through to HMRC automatically. Every time a company’s employees are paid, HMRC records all the details. This means that there is no need for an annual return after 2013, which should make things easier for employers and accountants alike.
In theory, all companies in the UK should already be using the RTI system as it became mandatory when the new tax year began on April 6th. If you are unsure about this, make sure you contact your accountant immediately. Chances are they are already taking care of it for you, but you should certainly make sure. All decent accountants should offer an RTI service as part of their payroll and PAYE returns service, such as this one from PL Accountants in Liverpool.

Handing in your annual return

So, this is the final time that companies or their accountants need to download and fill out these forms. For many businesses, their accountant can guide them through every step of the way and file the return for you. In fact, if you have kept your accountants updated on every aspect of employee payment and expenses, they may deal with the entire process. Smaller businesses may need to get a little more involved, as they are unlikely to have a large accounts department at their disposal!
To find out more about filling in your employer annual return, check out the full guide on HMRC’s website.

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• License: Creative Commons image source

Nevertheless you should keep in mind that in order for your mortgage application to be approved, you will need an almost spotless credit report. The longer and richer your credit report is, there is a bigger chance to get a conventional mortgage loan. However, if you have a bad credit score, there is a great chance you will not get approved for your mortgage loan. This is why people today turn to private mortgages.

Difference between a private mortgages and conventional ones

Private mortgages do not actually differ a lot from conventional mortgages. The main difference is that you do not depend on your credit score check being you are not applying at a bank or a credit union, but a private company or an individual such as friends, family or business partners. Nowadays, this has become a very popular way of financing and a great percent of lenders are family members. People often opt for this because the money runs and stays in the family.

The procedure of obtaining a private mortgage is a tad simpler than conventional mortgages. It requires less paperwork and administration. No wonder private mortgages are far more popular than conventional ones. Let us just sum up all this for a second…

1. You can have private mortgage, even with a bad credit report.

2. You get a long term of repayment and fixed interest rates.

3. You have wider limits for negotiation.

4. You will know your monthly payments and interest rates for the whole term of repayment up ahead.

5. You can get your money fast and easy with not much paperwork or administration.

There are many benefits of private mortgage loans, but you should always pay attention to the interest rate. However there is no especially big difference. Even though interest rates in private mortgages are higher, it will not make much of a difference because the interest rate escalation rate doesn’t differ much from conventional mortgages. If you have a fair credit report you will most likely run into the same deal in both private and conventional mortgages. Private mortgages can and will help you improve your credit score and improve your credit capabilities in the future, that is if you do all your payments on time.

Be vary when taking your mortgage… these are secured loans. A mortgage is a loan that is bound by asset. If for any reason you cannot make your payment on time, contact your lender for negotiations, because it can lead to the worst outcome. If you don’t meet the terms of the contract, the lender becomes the full and legal owner of your asset (house).

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• License: Royalty Free or iStock source: http://www.123rf.com

Work As A Team

If you and your partner are going to tackle your debt, it is important that you work as a team. There cannot be division in the decisions that you make. You need to come to a conclusion and make compromises so that you get the desired outcome that you want and both are satisfied. This will take time but the most important thing to remember throughout is that you are on the same side. You are working toward a common goal not a divided one. This can take time but really creating a united front will only help you in obtaining your end goal and the result that you want. For this reason, be sure to work out any kinks and really highlight any problems and concerns you may have early and get solutions so that you may consider the solution in time.

Be Honest

Another important factor for tackling debt or credit issues as a couple is to be honest with one another. This is vital to ensuring that there is nothing that will cause problems later on down the road. Being honest about finances can be extremely difficult as often these are personal and have been for some time. However, if you are building a life with one another or a future, being completely honest is important. Make sure not to get angry with your partner for mistakes in their past. Instead, work together to come to a legitimate plan for the future. Respect their honesty as a way to ensure that you are on the same page and that you are prepared for what may come about later on. You can do it and though it may be difficult it will pay off in the end.

Get A Mediator

Another way to get your financial future in order as a couple is to bring in an independent third party to help you out. This can be a great way to have someone there as a buffer so that dialogue can be had without tension and without anger. A mediation room can serve as a safe place to go to discuss financial concerns with an independent and objective person looking at the problem. They may even be able to help you foster a plan going forward that will have you better aligned to handle what may come and what you need to do to get there. Debt counsellors can also be a great option and they can be found through non-profit organizations for low to no cost. Consider this as an option for you as you begin to tackle your debt… together.

While getting a mortgage is easier and cheaper for individuals who are W2 employees, the same thing cannot be said for those who are self-employed. Regardless if you maintain an enviably good credit and sufficient assets, you will find that even some of the best mortgage companies will require you to supply them with different documents like tax returns and quarterly profit-and-loss statement for them to prove that you have the capability to make mortgage payments later on. However, you should not be discouraged by all these. If you know for yourself that you are truly capable of making payments, you can do some of the tips below to make you an attractive mortgage candidate.

Pay off your debts first

While you might want to focus on saving money for a down payment for your home, this is not actually a sound start . A better approach is to eliminate most, if not all, your debts, including credit cards and other high-interest consumer debts, with the extra cash you have. Why? Having a debt limits your ability to properly save and limits the amount of money you can borrow. So if you have fewer debts, you will be able to have more cash flow, which means lenders will be able to see that you are capable of paying a mortgage.

Maintain a good credit

All borrowers today need to have a good credit. And because most lenders consider self-employment income poses more risks than regular pay checks, having a high credit score can significantly help in making you an attractive candidate for mortgage. Hence, request for a copy of your credit history and score. Make sure that everything is accurate. If you find something inconsistent, contact the credit company to clear things up before you apply for a mortgage. It will also be wise if you prioritize paying your debts on time and in full amount to make sure that they will not tarnish your records.

Provide a sizeable down payment

The higher equity you have in a home, the lesser the chances for you to walk away from it, especially if you encounter a financial trouble. Hence, if you put a huge amount of down payment on your upfront purchase, the lender will view you as less of a risk.

Boost your cash reserves

Aside from offering a large down payment, having a lot of cash in your emergency fund will let lenders know that even if you encounter financial troubles in your business, you will be able to keep up in your monthly payments. The rule about how much cash reserve you need to have in order to secure mortgage depends on lender to lender and may also vary on the mortgage product you will procure. Hence, make sure that you have enough to protect yourself in case of emergency.

Be willing to supply lenders with documentation

When meeting with a mortgage lender, make sure that you have all the necessary documents to prove you ability to pay. Providing a document of your full income through the last two years’ tax returns, profit-and-loss statement, document of other income-generating investments, balance sheets and the like will greatly increase your chances of securing a mortgage.

In case of a financial difficulty or if a borrower struggles with repayment of his debt, he can approach a debt management company to get some help. These companies help a consumer to clear uncleared payments and debt through negotiations with the lending party, thereby facilitating the repayment of debt. The first thing to check here would be whether the company is a member of DEMSA or not. As a member of DEMSA, a debt management company is obliged to treat consumers with respect and compassion, and provide solutions that are transparent, responsible, and beneficial to the parties involved.

If the debt management company is a member of DEMSA, it ensures:

The company will adhere to transparent and honest advertising, which gives out the right message to consumers.
A comprehensible and clear pre-contractual agreement is provided to the consumers, giving them full information and ensuring complete transparency.
Following the code of conduct laid down by DEMSA, the contract terms of the debt management company are fair and in the interest of the borrower and lender.
The debt management company complies with the OFT’s Debt Management Guidelines, which approve only those codes that have been proven effective in preserving and promoting the consumers’ interests.
Protection of consumers’ prepayments and deposits is assured.
The debt management company assists borrowers to provide an accurate and suitable debt repayment plan or proposal that is in the interest of both the consumer and the lender.
In case of a complaint regarding the handling of a case by a debt management company, a consumer needs to communicate with the respective company. However, if the client is dissatisfied with the solution provided, they can refer it to DEMSA if that matter falls within the areas covered by its code of conduct. DEMSA’s code of conduct comprises of the right to refer complaints to the Financial Ombudsman Service.

DEMSA has established code of conduct along with set procedures for handling complaints and all members of DEMSA i.e. the debt management companies are bound to comply with them. DEMSA’s code of conduct aims to ensure that debt management companies offer high standard and reliable services to the borrowers.

What is debt consolidation loan?

A debt consolidation loan is actually a loan that you take out to pay off all your existing debts. This is generally done so that you could have a lower interest rate, or so that you’d have to pay off just a single loan instead of several debts together. However, the lowered interest rate offered is mainly because of collateral. However, at the same time when it comes to paying your bills, it’s one solution that you should look into.

How would you get a debt consolidation loan?

If you’re in financial trouble, then it’s important for you to know the correct ways to secure a debt consolidation loan. Here are the 5 steps you could follow to get yourself the loan:

1. Calculate your debts – You should firstly add up all your debts. Include all your credit cards and loans when making your calculations.
2. Always check out details – It’s of mandatory importance that you check out the interest rates you’re paying on all your credit card accounts and loans. Don’t rush into things without thoroughly checking your finances.
3. Find a lender – The next thing you should do is find the right lender for yourself. Contact several creditors and compare the loan products offered by each of them and choose accordingly.
4. Choose the right loan – There are quite a few things to consider when it comes to taking out loans like the duration of the loan, the interest rate, the amount loaned and also the type of interest. It’s important that you get yourself a debt consolidation loan whose terms and conditions would suit you the best.
5. Complete the formalities – You’ll have to fill out a loan application and supply the necessary documents needed. You may also submit all copies of credit card and loan statements to the lenders.

What are the pros of debt consolidation loans?

Even though a debt consolidation loan is considered dangerous, yet there can be quite a few positive sides to it. There are some financial advisers who’d actually recommend a debt consolidation loan to you because of the following advantages:

• Lower interest rate – Since you generally have to provide other collateral, hence you’ll have a lower interest rate as compared to your other loans.
• A single loan – It’s not just about lower interest rates when it comes to debt consolidation loans. You also have the advantage of having to pay just one single loan instead of several loans together.
• One interest rate – This is perhaps the greatest advantage of a debt consolidation loan. You have to pay off just one interest rather than several interest rates put together. Your debt gets reduced considerably because of this single interest.

What are the risks involved in a debt consolidation loan?

You should be aware of the fact that taking out a debt consolidation loan involves quite a few risks:

• You could lose assets – If you borrow against your home or any such asset, then do remember this can always backfire. You might end up losing your home or any such asset in case you’re not able to pay off your loan.
• It adds to your debt – No matter what, it still remains a fact that a debt consolidation loan actually adds to your debt. Don’t be under the misconception that it’s reducing your debts in any way. So be careful and handle your finances with care.

Your finances are very important, so you should handle them with care. It’s always best to stay off debt in the first place so that you won’t have to resort to debt consolidation loans at all. Consider a debt consolidation loan only after you’ve tried all other ways and they didn’t work out for you.

Clearly this story is beyond farfetched. No human can run a marathon without training, and unfortunately the same goes for saving; nobody simply becomes a good saver overnight.

Much like choosing the right shoes and training well for a marathon, preparing to begin saving is important to your potential success further down the line. Choosing the right bank account to set up a savings account is the first important step to take.

Discipline = Success

The first question to ask is: do you trust yourself? To achieve what you want to achieve you need to be committed. Fortunately to save money there’s no need to wake up at ungodly hours and run through wind, rain and snow; however saving through meek times can be equally as challenging. Trusting yourself not to dip into your savings when times are hard is vital to your success and the potential of achieving your goals, if you don’t believe you can trust yourself it’s not the end of the world.

Think of banks like coaches. Your coach will assess your experience, your fitness and your motivation and will train you accordingly. If you, or your bank decide that you’re disciplined enough to have full access to your savings account there are a number of instant access savings accounts which, while providing you with slightly limited interest rates (which is unfortunately pretty much the case across the board due to the recession) they give you access to your funds should you need them.

Protect yourself against yourself

Due to the marathon nature of saving money many banks give you the option of protecting yourself against fluctuations of self belief, motivation or impulse purchases by limiting your access to your savings.

Regular savings accounts set a limit on the number of withdrawals you can make in a year, while taking money from your account through a direct debit. These accounts are ideal for those just breaking onto the saving scene and can provide you with the structure and discipline you need to save money.

Notice accounts are similar to instant access accounts but under normal circumstances have higher interest rates. You may only access your funds from a notice account by notifying your bank 30 days in advance of receiving the cash. This is an ideal way of testing your metal. If you cannot have access to your money straight away it gives you the opportunity to truly evaluate whether you need the cash or not. Notice accounts have the potential to keep you on track, while still giving you adequate access to your money.

The reward is worth the journey

Completing a marathon is a challenge. People train for months, and then have to endure around two hours of pain to eventually crawl across the line. However through all of the agony a fitness emerges, changing your lifestyle and your general health, on top of these benefits there’s a huge sense of satisfaction at the end. Saving money gives you similar benefits to training and running a marathon. Things may seem tight during training due to your slightly reduced potential expenditure, but having the security that sitting on a lump of money brings will counter-balance that pain. And when you cross the finish line, a wave of satisfaction won’t be all you receive.

Author Bio | Amie is a money savings coach, helping consumers make the most from their high interest savings account.  She specialises in comparing a range of savings accounts, such as instant access savings accounts, business savings accounts and notice accounts.

My story starts during A-Levels when there was a lot of pressure for everyone to sign up to university. It was expected that we should go to university, however I was put off by the fees and living costs associated with being a student.  My parents hadn’t saved for my education and didn’t have any spare money to be able to support me financially. This was very difficult, my parents were upset they couldn’t help out especially when a number of friends were being given allowances and help with living costs.  No one in my family had been to university so I don’t think they realised how expensive it would be.

I wanted a good career so after spending a year off travelling, I decided to go to university but I wanted to do it without the debt.   I found that going to university part-time would mean that I could earn enough money to support myself therefore not having to rely on loans.  At the time, fees were mean tested and I was entitled to free fees and a small bursary of £250 per academic year to help with the cost of books.

I worked full-time in shifts around lecture times which meant that I had an income so was self-sufficient.  I lived in my own flat, and managed to live comfortably with what I was earning. I continued to work in this way for four years, working 37 hours, attending 8hrs of lectures and completed assignments every week. This was hard work and during this time my social life suffered. A down side of me trying to be debt free is that I would never say I had the typical student experience!

In my final year, I had to go full time at university, meaning I could only work part-time. Having been comfortable financially for the previous years this was a bit of a shock! I worked as many hours as I could, and got a lodger to help contribute to the bills.  However, with the drop in income I had no option but to get a student loan.  This went against my plans of leaving University as a debt free student but it was either that or leaving without a degree!  At the time I was disappointed that I couldn’t be debt free but now I realise just how lucky I was, with a lot of my peers being in excess of £15,000 in debt.

It is hard to imagine how in the future people will be able to afford to go to University. With fees increasing over the last few years, how much will it cost in 18 years’ time? With graduates starting their careers in thousands of pounds of debt it puts a lot of pressure on people to have to earn high salaries at an early stage in their career so they can pay of their loans.

Saving money has become the bigger priority than spending time with family these days because of the huge financial squeeze in the current economy.

In a survey, about two thirds of those surveyed replied that they hoped to save more by changing their priorities, sacrificing things or changing their life style. The top priorities in the list were home improvements and holiday spending.

However, the savings market is filled with drawbacks such as short term big headline bonus rates accounts and gimmicks to mask a low interest rate. Most often, people end up thinking that there is no point in switching their accounts because there won’t be big savings. But a survey on this subject shows there are huge improvements to be made by switching savings accounts and staying up-to-date with the changing interest rates.

Switching is often considered a smart move to save money. It always saves consumers money with best deals and providers. For those who have never tried to look at best deals or never switched before and are staying on standard tariffs gain up to £389 the first year.

Comparison sites such as uSwitch offer a service to find you the best deal if you can post your latest bill. Richard, a solicitor, 45, who is married to Helen and has two kids, Tom and Lewis, has recently switched to dual-fuel deal online with Eon to a fixed tariff with Scottish power. They expect to save a good £110 over the period until April 2013.

Although there is a risk factor in fixed rate prices as they could fall this year, it gives a peace of mind of getting into a deal without worrying about rising prices.

Times are challenging, with a recession squeeze on wages and rising bills. But small changes can bring in good savings like Sasha Kennedy has found. She is a single parent with two children aged 1.8 and six months. It is not an easy task to cut back on her weekly supermarket bill. Her weekly shopping bill comes to about £95 including baby nappies and milk bottles if she shops at Morrisons or Sainsbury. But she switched to cheaper supermarket such as Aldi and Lidl that saved her £11 in her weekly budget. Also, she searched for best deals and started saving through high yield savings deposit accounts so she can have a good sleep at nights without worrying about future.

Germany’s Lidl launched in 1994 in Britain has 580 stores, and Aldi launched in 1990 has about 440 stores all over Britain. With the recession economy blowing the country, these stores were the big winners.

With the competitive ‘super discount sales, they further increased their market share in the last year. And the same is expected this year too. However, it doesn’t appeal to everyone to shop in a discounted store. These stores are usually on business parks or busy industrial parks with fewer tills and typically long queues at weekends.

However, according to another survey by a comparison company, Waitrose was found to be top for customer satisfaction followed by Aldi and Lidl standing on decent second and third positions beating the big supermarkets, Tesco, Sainsbury’s,  the Marks & Spencer Food and the Co-op.

Delin, a content writer, works 9 to 5. He started saving money and has managed to buy a home, a good new car and maintain a decent bank balance. He was quite pleased with his savings and thought to put his ideas into words so people will learn how to make more of their money. He is not a big math expert or have a great brain, but focusing on simple things made it easier for him to save money and achieve big targets.

Tax Documentation

Did you know that your tax information is a necessary piece of the homeowner puzzle? When you apply for your home loan, your lender will order your tax transcripts for at least two years, sometimes more. You can speed the process slightly by having these documents ready and attached to your application. This way, you’re being proactive in order to avoid lengthy waits while your lender verifies your eligibility.

Source Your Funds

If you’re applying for a home loan, your money situation is going to be transparent to your potential lenders. You’re going to have to document and source each large deposit that is made, including gifts. If your down payment is coming to you as a gift in full or partially, you will likely need to provide contact details for the person responsible. They may also be subject to fund sourcing investigations to ensure all the money in the transaction is on the level. This is the most common reason that funding efforts take longer than they should, so be prepared to show your financial paper trails at will.

Keep Documentation at the Ready

It’s just good practice to keep all of your information at the ready to avoid delays in the application process. Gather everything that you can about your income, budget, pre-existing assets and your credit. Present your package to your potential lender and ask if there is anything else that they may need from you in order to help speed the application process. By being forthright and proactive, you demonstrate your commitment to responsibility and encourage your lender to spend more time ensuring that your account is handled with the most attentive care available.