Anna’s Accountancy Alerts – Week 9 (29th May – 4th June 2023)

Anna’s Accountancy Alerts - Week 9 (29th May - 4th June 2023)

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How to find the best car insurance policy at the best price

Insurers with a customer score of 74% or more and at least average levels of cover as standard are candidates to be a Which? Recommended Provider (WRP).

This year WRPs are LV, NFU Mutual, Direct Line, Churchill and Aviva.

Car insurers ranked based on:

  • Ease of managing policy online
  • Dealing with complaints
  • Value for money

How to choose the best savings account

Around £268bn of UK households’ money is sitting in accounts paying zero interest, according to analysis by Coventry Building Society.

Don’t disadvantage yourself due to loyalty

You may be tempted to open a savings account with your existing current account provider without shopping around first.

Which? Money found the top rates for both instant-access and fixed-term accounts were offered by Newcastle Building Society and Close Brothers Savings. Neither of these offer current accounts.

Decide when you’ll need access

Before deciding where to put your cash, think about your savings goal. You’ll need an account that lets you easily access the money if you are say saving for a holiday this year.

If you don’t need to access your money then higher rates will be paid out for a set period.

Where else can you deposit your money.

Some current accounts also pay interest. Nationwide, for example, pays it’s FlexDirect customers 5% on balances up to £1,500 for a year (maximum £75) before it reverts to 0.25% rate.

Check your status

Due to the personal savings allowance (PSA), basic-rate taxpayers can earn up to £1,000 a year in savings interest without having to pay any tax. For higher-rate taxpayers, the limit is £500.

While Isas tend to have worse rates than regular savings accounts, they’re a valuable tax-proofing tool if you have substantial savings.

Marriage allowance

HMRC has reminded married couples eligible for the Marriage Allowance to make use of the tax relief.

Eligible couples are those who are married or in a registered civil partnership; one spouse or partner does not pay income tax, or their income is below the Personal

Allowance of £12,570; and the other spouse or partner pays income tax at the basic rate.

It is possible to backdate claims to include any tax year up to 6 April 2018, which could be worth up to £1,242 in tax relief.

Keep up to date with all things Accounting and Finance with my bi-weekly Accountancy Alerts. 

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