Was Your Parents’ Financial Advice Simply….Wrong?

Bob Dylan’s song The Times They Are A-Changing’ highlighting generational shifts was released 55 years ago and advises mothers and fathers to avoid criticism of what they cannot understand since the order they recognize is changing. Over a half a century later the words still resonate as parents look to advise their children on their financial future.

Image Credit

Foremost amongst their concerns are education and getting on the famed property ladder, from which many of them will have benefited.

Tuition Fees

As tuition fees have spiraled in the UK since they were introduced nationwide in 1998, the choice of further education options has been the subject of debate, setting degrees versus apprenticeships at the forefront of the discussion. Over a third of a million students were accepted at universities, according to the available figures from 2018.

In 2017 the Institute for Financial Studies said that students in England would graduate with debts of over £50,000, with students from poorer households incurring more, impacting their ability to purchase the property.

At the same time as the undergraduate numbers have grown, apprenticeships, including degree apprenticeships, have increasingly been seen as an option offering the opportunity to earn whilst you study. Once earning, it is vital to seek independent financial advice on how to maximize your savings, and it is never too soon to seek help. As pensions and savings plans change constantly, parents may be out of touch with the best options.

Image Credit

The thousands of courses on offer at universities mean that if you are unsure what career you want to pursue, a broader course such as an Arts or Social Science degree can offer more options.

Indeed, you may be surprised to discover that apprenticeships are available in the law, accountancy and the media as an alternative to a degree. Options are due to expand, with the government committing to creating three million more apprenticeships by 2020.

Financial Advice

Given the debt which can be incurred, getting financial advice and comparing potential earnings from different courses is a recommended course of action.

With the emergence of financial software for financial advisors found at sites such as www.intelliflo.com, help is at hand.

Times really have changed, and parents must be more pro-active when offering advice to their children if they are to avoid saddling them with debt which could affect their futures.

What Is Mobile Home Insurance?

Mobile home insurance is very similar to an insurance policy for homeowners in that it gives financial protection should your home be damaged. Although it is not necessary to obtain such a policy by law, communities within the mobile home sector and mortgage companies often require that coverage be purchased.

Image Credit

Policies usually protect personal belongings and your home. They also offer liability coverage. Prices can vary greatly, so it is a good idea to get lots of different quotes in order to find reasonably priced mobile home insurance.

Is Mobile Home Insurance Needed?

As it is thought that the current answer to the homeless crisis could be the installation of park homes, more and more people may, therefore, be considering whether mobile home insurance is necessary.

Although mobile home insurance is not necessary by law, parks containing mobile homes usually require some proof that insurance has been obtained. Therefore, anybody who wishes to have their home within a park for mobile homes will need to obtain insurance.

Image Credit

What Is Covered by Mobile Home Insurance?

Mobile home insurance covers the belongings and home of the policyholder. It also includes protection for liability. Most providers are agreeable to policyholders customizing their policies via endorsements. They are supplemental to the standard policy. Endorsements can give coverage that will not come as standard in an insurance policy for homeowners, such as removal of debris or water damage caused by sewers.

As manufactured homes can be susceptible to fire damage, some companies do not include fire damage for policies taken out within regions that are considered to be of high risk.

As with all documents, it is always a wise idea to scrutinize all the details of the policy so you have a very clear idea of what is and what is not covered.

For those considering park homes, Gloucestershire has a lot of options. You can find many Gloucester park homes for sale.

Older Mobile Homes

It is hard to obtain insurance for mobile homes that are older, as mobile homes that are built prior to 1976 did not have regulated building standards. It is still possible, however, for homeowners wishing to obtain such insurance to get in touch with an independent agent who should hopefully be able to assist.

 

Buy-to-Let Lenders Crack Down on Landlords Suspected of Tax Avoidance

With the latest government tightening of tax rules for buy-to-let investors, it is surprising that there are still people willing to put their money into real estate. In the tax year 2019/20, mortgage interest payments relief against rental income had been reduced to 25%. Come 2020/21, that relief disappears and will be replaced by a 20% tax credit which may adversely affect profits of many landlords.

Image Credit

The Bug-Bear for Mortgage Lenders

There’s general talk in the industry of mortgage lenders declining loans to landlords who could be breaking HMRC’s anti-avoidance rules. The problem starts when a landlord decides that to make the most of his investment he should transfer ownership of his buy-to-let into a limited company. The advantage of rental income earned by a company is immediate. All mortgage interest, repairs, and maintenance, managing agent fees and outlay for property inventory software are tax deductible in one form or another. However, mortgage lenders, despite charging higher fees and interest rates on buy-to-let mortgages, regard these beneficial interest mortgages with alarm – basically because most prefer dealing with individuals who they can see rather than a company with shareholders who have the advantage of hiding behind the corporate veil.

Image Credit

Negotiating the Mechanics of a Transfer

This is a minefield and not for the faint-hearted. Professional tax/legal advisers must be consulted. We’re talking here of possible Capital Gains Tax, Stamp Duty Land Tax, Corporation Tax, Income Tax, and even National Insurance if you make yourself an employee. At first, glance, applying for and obtaining a Capital Gains Tax rollover relief when transferring the property into a company would be the ideal. However, get it wrong and you might end up fighting your case in court.

Business Tools to Manage Your Portfolio

As with any well-run business, investing in property investment software is vital to keep track of everything you own. If you think this is a step too far for you, consider which businesses would use property inventory software and the benefits thereof. Tenants, lease records, contracts, communication history, repairs and maintenance requests, late-payment records, inventories with photos and on-site property inspection records can all be updated and accessed at the click of a button.

At the end of the day, the decision to incorporate is all down to careful tax planning – not tax avoidance.

Mobile mechanic insurance – what’s covered?

A mobile mechanic visits customers at their own home or place of work. They operate out of a van and carry tools and equipment from job to job. They may work full time or part time, but either way, they will need a policy that covers all elements of their particular business, from roadside recovery to battery charging.

Image Credit

Types of cover available

The most basic form of cover is a policy that enables the mechanic to drive and work on customers’ vehicles. There is also a similar policy but with fire and theft cover, whilst the vehicle is in the mobile mechanic’s care.

The third type of motor trade insurance policy for the mobile mechanic is the comprehensive cover, which will protect their own vehicle, and themselves, as well as customers’ vehicles. For a mobile mechanic, their vehicle is the crucial element that enables them to operate their business, so it would be advisable to protect this as well as the tools and instruments that it carries.

If staff is employed, the Employer’s Liability cover will be essential and required by law to cover against any illness, injury or death sustained by an employee during the course of their employment.

Product Liability is a recommended element to the mobile mechanic’s motor trade insurance. This would cover all work on a customer’s vehicle. If, for example, a repair failed, then the mechanic would be covered against any claims made under legislation such as the Consumer Rights Act 2015 and any associated costs.

Image Credit

Finally, Public Liability covers any claims made by members of the public and is recommended a cover for any business that interacts with the public.

Bespoke policies

There are all kinds of service that a mobile mechanic could offer, such as roadside assistance, recovery, valeting or a home-based MOT service. Therefore, the mobile mechanic should carefully choose a reputable insurance broker who can provide motor trade insurance tailored to suit the mechanic’s business.

The right insurance is highly recommended for any kind of mobile mechanic, whether they work full time or part-time. The nature of their work carries significant risks, which need to be protected. Therefore, trade policy for this specific type of trader needs careful attention to detail and regular review by a broker to ensure all relevant elements of the business are covered.