Average family needs to earn £32,702 just to pay bills

November 25th, 2011

The average family with two children needs to earn nearly £25,000 a year after tax to meet all of their essential outgoings, according to research carried out by Skipton Financial Services.

This figure only covers essentials like rent or mortgage payments, fuel bills, clothing and food. It does not include spending on any leisure activities. The amount of money needed to survive is likely to rise further still as wage settlements continue to fall far short of inflation.

A basic rate taxpayer would need a wage of £32,702 to be left with the £24,600 needed to break even after paying tax. The average gross salary for a full-time worker is currently £26,200.

A typical two-child family spends £4,730.04 on housing costs, £4,457.96 on food, £2,455.44 on commuting to work and more than £3,000 paying off loans and credit cards.

Commenting on the figures, Andrew Barker, managing director of Skipton Financial Services, said: “It’s frightening how everything adds up. The cost of living is astronomical and now more than ever people have to be on the ball with their expenditure and to keep on top of things, particularly at a time where inflation is riding well above target at 5%. Inflation c

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Tags: Average Family, Earn

Cash in your francs and liras now

November 17th, 2011

A new Poppy Bond from the Coventry Building Society offers a top rate of 3.55% for 18 months, and it will even help savers contribute to charity, writes Thisismoney.co.uk. Of the money invested, 0.05% will be donated to the Royal British Legion Poppy Appeal. After basic tax, the bond will pay 2.84%, on a minimum investment of £1. The rate is fixed until 30 April 2013, or alternatively savers can take monthly income at 3.49%. The second best 18-month savings plan comes from Yorkshire Bank – it pays 3.5%.

• Do you have a drawer full of old European currencies? There is still time to turn this into cash, writes Lucy Tobin in the Evening Standard. Take the old notes to a specialist foreign-currency dealer and walk out with sterling. But hurry, after February it will be too late.

• Nationwide is opening the door for new mortgage customers with 10% deposits, writes Tricia Phillips in the Daily Mirror. Previously, only existing customers and those with Flex accounts were offered the deal. Nationwide offers a three-year fix at 5.39% or a five-year fix at 5.69%, both with a reduced arrangement fee of £499. But shop

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Ryanair prepaid card customers face ‘hefty’ fees

November 10th, 2011

Ryanair customers who try to avoid the budget airline’s booking fees by using its new card could be charged hefty fees unless they use it every month.

6:31AM BST 28 Sep 2011

The user guide for the Ryanair Cash Passport reveals that after six months, anyone who does not use the card will be charged £2.50 a month for inactivity, while a ten pound charge will be levied every time the card goes into negative territory because of the inactivity fee.

Customers will also be charged £2 for withdrawing money from cash machines, and £4 if they try to get cash out over the counter.

From November 1, the new prepaid card the only way to avoid a £6 each way charge per person per flight when booking with Ryanair. Previously, customers could use any prepaid Mastercard to avoid the charges.

Unlike a debit card, a prepaid card has to be loaded with money in advance before being used to pay for things and is estimated to be held by only 5pc of the population.

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Tags: Fees, Hefty Fees

Consumers Can Expect More Credit Card Offers From Banks

November 4th, 2011

In the near future, many consumers can probably expect to find a larger number of offers for new credit card accounts from their bank in their mailbox.

This is because many of the nation’s larger financial institutions are looking for ways to increase their revenues after being hit with a larger number of regulations for the way they could charge fees, according to a report from Reuters. Executives for a number of the nation’s largest regional banks recently met in Las Vegas, Nevada, and shared ways their institutions are trying to make up for the more than $8 billion in revenues lost to limits on how much they could charge businesses for processing debit card transactions and other fee caps.The problem became particularly stark when it became clear, just in the last few weeks, how vociferously consumers opposed being charged a monthly fee for using their debit cards to make purchases, the report said.

“There’s no one silver bullet [that can cover the lost revenues],” Eduardo Tobon, CEO of U.S. cards and payments for Sovereign Bank, told the news agency.Instead banks are turning to a number of new account offerings, including those for credit cards, the report said.

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Tags: Credit Card, Offers

How to avoid identity fraud

October 29th, 2011

Research published to coincide with the launch of National Identity Fraud Prevention Week (NIFPW) found that while 95% of the public are aware of the threat posed by ID theft, cases continue to rise because people are still being careless with their personal information.

Around 7% of the UK population – over four million people – have fallen victim to identity fraud to date, losing between £1,190 and £9,000 each. Over 80,000 cases of ID theft were reported in the UK in the first nine months of this year alone, according to a study commissioned for the launch of the 2011 NIFPW campaign.

If your identity is stolen by a fraudster, it can take months to get your credit report back in order and deal with the repercussions of the crime. Altho

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Tags: Fraud, Identity Fraud

Tax advice of the week: Draw a salary from your start up

October 21st, 2011

If you’re setting up a company and need your capital to live off as well as to fund the new business, the idea of taking a salary seems “out of the question”, says Tax Tips & Advice. But you should do exactly that.

“For every pound your company pays you it will get a reduction from its corporation tax (CT) bill of at least 20p.” Where the company makes a loss, the salary will increase it, and the loss can then be “carried forward and set against later profits to reduce CT bills in these years”.

Ideally, set your salary between the lower earnings limit (£5,304) and the primary earnings threshold (£7,228) so neither you nor the firm has to pay national insurance (NI). For tax and NI, directors are “treated as receiving salary as soon as the board approves it”, “it doesn’t actually have to be paid”. So record it in the minutes and “add it to the money the firm owes you”.

That way, “you’ve gained your firm a CT deduction and increased the amount you can take later tax and NI-free”. Plus you’ll get a credit to your state pension record. And do send in a P14/P60 when you submit your firm’s PAYE return.

Tags: Salary, Salary Start