West Craven

What the Autumn Budget Means for SME, Prepare Your Home for the Winter Cold, Plus More


Welcome to West Craven's December Newsletter.

In this month's edition, we take a look at how the Autumn Budget is set to impact on business and we share some advice on how to get your home ready for the winter months.

Also this month, we share a guide to commercial combined insurance and we reveal why comparison sites are overcharging customers by £300.


The Autumn Budget: What it Means for Business

 
In an effort to get Great Britain “fit for the future”, Philip Hammond had delivered the UK’s Autumn Budget, with a range of new policies designed to shape the future of the UK’s economy post-Brexit. The new economic policies are set to affect businesses of any size.

The National Living Wage (NLW) and National Minimum Wage (NMW) Will Increase in the New Tax Year
The minimum wage that you can pay your employees will experience a rise in the new tax year. From April 2018, the NLW will increase from &7.50 per hour to &7.83 per hour.

On the same date, the NMW will also increase for each band to:

• &3.70 per hour for apprentices
• &4.20 per hour for 16 - 17-year-olds
• &5.90 per hour for 18 - 20-year-olds
• &7.38 per hour for 21 - 24-year-olds

Fuel Duty
Good news for companies who utilise a vehicle or fleet of vehicles, as the Chancellor has announced that the fuel duty will remain frozen for the eighth consecutive years.

The UK’s Economy
In order to grapple with the uncertainty that has plagued the UK Economy since the European Union Referendum, the prospects for growth and productivity have been downgraded.

In accordance with these new predictions, the growth forecast for 2018 has been cut from 2.0% to 1.5%. The expected GDP growth for the next 4 years has also been cut from 1.8% to 1.4%.

A side effect of lower growth forecasts, however, means an increase in the amount of money the government will need to borrow to make up the shortfall, with the chancellor providing &3bn to prepare for Brexit.

VAT Threshold for Small Businesses
The VAT Threshold for small businesses will remain at &85,000 per annum, with the Chancellor stating that the government understands the pressures facing small businesses face when it comes to development and growth. This will reportedly save 3 million small businesses &2.3bn in overall savings.

Income Tax rates, bands and the dividend allowance
In the new tax year, the Income Tax bands will increase. The new bands will be:

• Basic Rate increased from &33,500 to &34,500.
• Higher rate band &34,501 to &150,000 (a rise from &33,501 to &150,00)
• There are no changes applied to income of more than &150,000

There are no new changes to Income tax rates and tax rates applied to dividend income, however, it should be noted that the present &5,000 tax-free dividend allowance will still be reduced to &2,000 from April 2018.

It should also be noted that these rates will differ in Scotland, as the Scottish parliament sets the basic rate limit.



Prepare your home for the cold weather this Christmas

 
The winter months are beginning to draw in which means you might soon be seeing an increase in your heating and energy bills, especially if your home is not quite up to scratch.

Upgrade/service the Boiler
It’s better to deal with this one now before it gets even colder. That old gas boiler you’ve got ticking away could be costing you more money than it’s worth and might not be doing the same effective job it was doing in the 80’s. Getting it serviced (or replaced!) could save you money, energy and could save you from carbon monoxide poisoning.

CO Alarm
Speaking of carbon monoxide, now that you’re starting up the heating for the first time in 9 months, or in some cases you might even be building and lighting fires on a daily basis, then a carbon monoxide alarm is a vital addition for your home. Carbon monoxide is a toxic gas that gradually builds up in your bloodstream. Breathing it in will make you ill and in a high enough dose, it can kill you.

Exclude those Draughts!
You probably don’t even notice a draught during the summer months, in fact, you’re probably grateful for a bit of cold air! During the winter months, however, that draught will seriously contribute to lower temperatures in your home. Make sure you get some draught excluders for the offending doors and windows. If your chimney is decorative, it’s also worth buying a specialist draught excluder to stop the hot air escaping and the cold air rushing in.

Clear your drains
All the leaves, twigs and other autumnal debris may only seem like a bit of an eyesore, it can actually lead to all kinds of issues. For example, blocked drains and pipes can cause flooding and structural damage to your home. Ensure you have a good declutter before the leaves and twigs turn to mulch and block off you drainage!

Bleed the radiators!
Many of us rely on our radiators as the main source of heat during the winter months. So it makes sense that you should ensure they’re all in tip-top condition. If they feel colder at the top than they do at the bottom, then they need to be bled. Grab the key and a towel and get cracking! Your home will be toasty in no time.

Protect your pipes
We’ve all read the horror stories about pipes bursting on Christmas day, ruining the day for families. Protect yourself from this disaster by surrounding your pipes in a foam coat known as “lagging”.

Take out insurance
Whether you are a landlord or the homeowner, there are plenty of insurance policies that cover your gas, electrical and heating systems, so that you are one step ahead of the cold. Sometimes these policies can even be purchased as a bolt onto a home policy, or they may come packaged in a landlord/home or contents policy.



What is Commercial Combined Insurance?

 
 
The UK is home to an eclectic mixture of properties, each one presenting a unique proposition - and its own unique set of risks, meaning multiple insurance policies.

Commercial Combined Business Insurance can be tailored to meet the specific challenges and risks your business faces in its day to day activities.

A commercial combined policy is a comprehensive business cover in a single policy, bringing together a range of covers from the most commonly required to specialist policies. The combined policy is primarily designed for smaller businesses like manufacturers or wholesalers.

Why you should consider a commercial combined policy
A commercial combined policy offers all-round financial protection to your business, providing you with security and peace of mind. It can be tailored to cover the risks that are specific to your business. For example, a wholesaler will have a warehouse where customers might visit, plus they might transport their stock themselves, meaning they would require Public Liability, Goods in Transit and Cover against Material Damage and Theft.

Having all your policies in one place means you can easily manage the cost and terms & conditions surrounding the policy, rather than having to juggle multiple policies.

Commercial Combined policies can feature:

• Business Interruption (loss of income if unable to trade)
• Cover against material damage and theft
• Cover for engineering inspections
• Employers’ liability (claims arising from an injury to an employee)
• Goods in transit
• Legal expenses (including employment tribunals)
• Money cover
• Personal accident and/or sickness risks
• Product Liability (personal injury or damage to property caused by your product)
• Public Liability (accidental injury to any person or damage to their property)

If you work in a sector with multiple risks, it makes sense to combine all your policies into one. For more information on Commercial Combined, or to arrange a policy, get in touch with West Craven on 01282 817 277.



Comparison Sites Charging Buyers an Extra £300 on Policies

 
 
Comparison sites. Love them or hate them, many buyers searching for insurance will head over to the site with the least annoying mascot to find some sort of deal on their insurance. But are consumers actually receiving a fair deal?

A recent investigation by Channel 4 consumer show Supershoppers found that many of the main comparison websites were charging &300 more for a car insurance policy than their competitors.

Why is this happening?

Comparison sites will often give off the impression that they are independent. However, what isn’t common knowledge is that some comparison sites are not as impartial as they may appear, with many of them actually being owned by competing insurance providers. For example, confused.com is actually owned by insurance giant Admiral.

The research that the programme provided found that when comparing a price for an annual car insurance policy from Admiral on confused.com and competing comparison site MoneySuperMarket, there was a difference of &300.

So what does that mean?

Comparison sites are often seen as the modern insurance broker, however, they don’t work on the same impartial basis as a high street broker. Each insurer has a different deal with each comparison site, meaning the average buyer will need to verify their quote by visiting multiple sources to see if they’re getting a good deal, or punished for not buying from their preferred source.

Comparison sites also differ on the type of information they require for a quote and will often not dig deep enough into the buyer's situation to ensure they get the right policy for the best price.

West Craven is not owned by any insurance group. We are an independent insurance broker, and take great pride in finding the right insurance policy at a fair price. If you are tired of trawling through countless comparison sites, let us do the legwork on your behalf. Get in touch on 01282 817 277




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