April 28, 2025

Why Now Could Be the Ideal Time to Take Advantage of Your New Tax-Free ISA Allowance

Nick Investing events, Tax, savings 0 Comments

As of 6 April 2025, UK investors have a fresh chance to supercharge their savings and investments with a new £20,000 Individual Savings Account (ISA) allowance.

ISAs represent a golden opportunity for investors to make their money work harder while shielding their returns from the taxman. With tax-free allowances for income frozen until April 2028 and tax-free thresholds for dividend tax and capital gains tax being slashed in the last few years, it’s more important than ever to protect your hard-earned savings and investments within an ISA wrapper.

To maximize the benefits of the new 2025/26 allowance, there’s a strong case for acting swiftly and using at least part of your £20,000 ISA allowance sooner rather than later. This is due to the power of compounding. By investing early, you give your money more time to grow, benefiting from the potential snowball effect of returns generating further returns. So the sooner you invest that £20,000 (assuming you are fortunate enough to have it) the more opportunity it has to multiply over time.

Another reason to use your ISA allowance sooner rather than later is that there are reports that Chancellor Rachel Reeves is considering slashing the tax-free allowance for cash ISAs in particular, potentially to as little as £4,000 a year. It’s probable there will be an announcement about this in the Autumn Budget. Any change is highly unlikely to be backdated, however – so taking advantage of the full allowance now could be a canny move.

In addition to the tax-free ISA allowance remaining at a relatively generous £20,000 (for now), the rules surrounding ISAs have recently undergone a welcome relaxation. One of the most significant changes is the ability to open more than one ISA of the same type (e.g. a stocks and shares ISA) with different providers in the same tax year. This means investors are no longer limited to a single provider for each type of ISA, giving them greater flexibility and choice in managing their investments.

Previously, investors were restricted to opening one cash ISA, one stocks and shares ISA and one innovative finance ISA (IFISA) per tax year. This restriction could prove frustrating for those seeking to diversify their investments or take advantage of new opportunities as the tax year progressed. Now, with the freedom to open multiple ISAs of the same type, investors can shop around for the best rates, terms and investment options without being limited to a single provider for each ISA type. They can also move some or all of their money from one provider to another without jeopardizing its tax-free status.

It’s important to note, however, that while the rules have been relaxed, the overall annual ISA allowance remains fixed at £20,000. This means that any contributions made across multiple ISAs of any type will count towards your total allowance for the tax year. You should still therefore take care not to exceed the annual limit to avoid any potential tax charges.

Cash ISAs offer a secure and accessible way to save, providing a tax-free environment for your savings with the added benefit of easy access to your funds when needed. Meanwhile, stocks and shares ISAs open the door to potential higher returns by investing in a wide range of assets such as equities, bonds, and funds, albeit with a higher level of risk. With a stocks and shares ISA you will never incur any liability for dividend tax, capital gains tax or income tax, even if your investments perform exceptionally well. Of course, there is no guarantee this will happen, but over a longer period stock market investments have typically outperformed cash savings, often by a substantial margin. IFISAs (e.g. from Housemartin) allow you to invest is property crowdfunding and other forms of peer-to-peer finance. They are more specialized, but may appeal to some investors looking to further diversify their portfolios.

In recent years I have invested much of my own annual ISA allowance in a stocks and shares ISA with Nutmeg, a robo-manager platform that has produced good returns for me. You can read my in-depth review of Nutmeg here if you wish.

Closing Thoughts

The start of a new financial year is a great time for UK investors to review their savings and investment strategies. Whether you’re looking to start a new ISA or maximize your contributions to existing accounts, taking action early can set you on the path to optimizing your returns from this important tax-saving opportunity.

By investing sooner rather than later and taking advantage of the increased flexibility in ISA provider options, savers and investors can make the most of their money while minimizing their tax liabilities. So seize this opportunity to build your wealth and protect it from the taxman today!

As always, if you have any comments or questions about this post, please do leave them below.

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

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April 23, 2025

Guest Post: Why Has My Bank Abandoned Me?

Nick Everything Else guest post, families 0 Comments

Today I am sharing something a bit different – an opinion piece by a fellow writer who asks to be known as SD.

In her article, SD expresses her frustration with banks who no longer seem to care about their customers, especially the older ones. I guess this is something many Pounds and Sense readers may be able to relate to.

Over to SD, then…

I just read in the news about yet another banking app outage – this time, with serious consequences. Salaries were delayed, house moves disrupted, and critical money transfers put on hold. Everything ground to a halt, with no clear resolution in sight. And it got me thinking – if AI is so advanced, why can’t it fix outages like this?

Paying bills was stalled, and customers were understandably frustrated. These outages seem to be happening far too often. Yes, it’s 2025, but are our banking systems really ready for a fully digital future?

Not long ago, I was a customer of a high street bank. After years of in-person banking, staff encouraged me to “go digital” and use their app. I was reluctant. As someone who experiences anxiety and panic attacks, I find complex IT systems overwhelming. I’m over 57 – I wasn’t raised in the digital age.

Despite me sharing my concerns, the bank staff didn’t really listen. A sign on the wall said “Not all disabilities are visible”, yet this clearly didn’t apply to me. My local branch, which was always busy, was shut down – ATM and all. Another nearby branch followed suit. There was one left five miles away, but eventually even that became digital only.

When I visited and explained my situation, I was told bluntly that I couldn’t be helped – there were no counters any more. I didn’t need anything complicated. Just a basic, face-to-face banking service. Instead, I was simply dismissed. Invisible disabilities, it seems, were invisible to them too.

So I closed my account and went to another high street bank – only to be met with more unwelcome change. Gone was the polished wood floor and staffed counters. In their place: low, foam seats and whiteboards hiding the old counter space. It felt less like a bank and more like a waiting room.

These trendy seating areas? Not great if you’re elderly or disabled.

Still, I figured sitting here was better than trying to deal with a chatbot. Banks think chatbots are a great innovation, but they’re not yet smart enough to help with specific, real-world banking issues. I’ve tried. It’s frustrating. And I thought AI was supposed to solve problems?

There were only three staff members at the new branch, all run off their feet. When I asked about opening a new account, I was told I needed a smartphone. I declined and walked out.

If they still had real counters and six staff members, people might not mind standing in line. They’d actually get served.

Which brings me back to banking app outages – again. They’re frequent, disruptive, and a growing source of frustration. Yet I was told digital banking was “the future” and that I’d be left behind if I didn’t.

Tell that to the millions of customers now stuck in this digital mess. It’s a financial farce.

Call me a tech dinosaur, but I truly believe shutting down mass branches was one of the worst decisions banks ever made. Staff lost jobs. Customers lost peace of mind.

It all worked just fine – until the banks decided to “modernize”.

Yes, a few banking hubs have popped up. But most town-centre branches now sit empty, derelict, and forgotten. It’s a sad waste of once-useful community spaces.

Many thanks to SD for a thought-provoking (and clearly heart-felt) article.

I do agree that the so-called digital revolution has made life harder for many older people and those with disabilities. Yes, some have taken to banking apps and online banking without major issues. I have a friend in his eighties to whom I had to give a crash course after his wife (who previously handled all their finances) passed away. Despite my concerns he soon got the hang of it and uses his bank’s app like a professional now.

But plenty of older people do struggle, especially with apps and complicated online security systems. And clearly it doesn’t help if your memory and eyesight aren’t as good as they once were. I can understand why so many older folk yearn for times gone by, when you could speak to a real-life individual and they would help you with whatever issues you might be having.

But what do YOU think? Have the banks really abandoned older customers, or do we just need to accept change and “get with the programme”? I’d love to hear your views and experiences, as would SD!

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April 19, 2025

Why UK Retirees Shouldn’t Panic Over Trump’s Tariffs and Market Wobbles

Nick Pensions & Benefits, Investing events, pensions, retirement 0 Comments

If you’ve been watching the news lately, you’ll probably have seen headlines about stock markets taking a tumble thanks to a wave of tariffs announced by Donald Trump. It’s enough to make any retiree feel uneasy – especially if your pension is tied to the markets.

But before you start panicking or making any big changes, take a deep breath. Here’s what you really need to know.

What’s Going On?

President Trump’s tariffs are stoking fears of a global trade war. Investors don’t like uncertainty, and the markets are reacting with volatility. There have been drops not just in the US but across the globe, including here in the UK.

For retirees, that can feel personal. If your pension pot or retirement income is invested in stocks and shares, you might be wondering: Am I going to be okay?

Short answer: Yes, if you stay calm and avoid knee-jerk reactions.

Why This Isn’t the Time to Panic

Markets have always had ups and downs. That’s not new. Whether it was the financial crisis of 2008, the Brexit vote, or the COVID crash (see below), every downturn has sooner or later been followed by recovery.

If you sell investments during a dip, you lock in those losses. But if you ride it out, your portfolio has every chance to bounce back, as has happened before. History is on your side.

Speaking of which…

Consider The Covid Crash

In early 2020 it became clear that COVID was going to be a massive deal, and markets world-wide fell dramatically. And yet by mid-March, as the chart below from Yahoo Finance reveals, they were already recovering.

The recovery in stock market values continued through 2021. If you check out my in-depth review of the Nutmeg robo-adviser investment platform, you can see this for yourself. Overall, the period from March 2020 to December 2021 saw a big rise in the value of my Nutmeg investments. If I had panicked in early 2020 and withdrawn all my money then, I would certainly have been thousands of pounds worse off.

Your Pension Is Built to Withstand This

Most UK pensions – especially workplace and private pensions – are designed for long-term sustainability. They’re usually diversified across different types of assets like stocks, bonds and property. This helps soften the blow when markets get rocky.

If you have a defined benefit pension, you’re likely shielded from market fluctuations altogether. These pensions pay a fixed income and aren’t directly tied to the stock markets.

For those with defined contribution pensions – the majority of us these days – yes, the value can go up and down. But remember, pensions are managed by professionals who adjust strategies to navigate global changes like the current one.

What You Can Do (Instead of Worrying)

Check in with your adviser – They can help you understand how exposed your pension is to current events and whether any changes are needed. See also my article on Why Over-50s May Need an Independent Financial Adviser.
Keep a cash buffer – If possible have a few months’ worth of living expenses in cash or savings, so you’re not forced to sell your investments during market lows.
Stay diversified – A mixture of investments across regions and sectors helps spread risk.
Ignore the noise – Newspaper headlines are designed to grab attention. Focus on your long-term goals instead.

One other point is that, if you’re in the early days of retirement especially, dips can present an opportunity to buy while values are depressed, in the hope of gaining when (hopefully) they recover. This won’t be appropriate for everyone and it’s important to proceed cautiously. Timing the market is notoriously difficult, and if you get this wrong you can lose money rather than making it. But if you are careful (and not overly risk-averse) there are undoubtedly opportunities to be found at these times.

Bottom Line

Trump’s tariffs might be shaking the markets, but your retirement doesn’t have to be shaken with them. Your pension plan is more robust than you might think, and a temporary dip doesn’t mean disaster.

If you’re feeling anxious, that’s normal – but don’t let fear drive your financial decisions. Speak to a financial adviser if you need reassurance (I have one myself) and above all, keep your cool. Retirement is a long game, and a smart strategy will see you through.

As always, if you have any comments or questions about this article, please do leave them below.

DISCLOSURE: I am not a professional financial adviser and nothing in this article should be construed as personal financial advice. If you are uncertain how best to proceed, I strongly recommend speaking to a qualified financial adviser or planner. They will take the time to fully understand your particular circumstances and advise you how best to proceed. All investing carries a risk of loss.

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April 17, 2025

Tow Like a Pro – Caravan Safety Tips From the Experts

Nick Everything Else insurance, families, motoring, holidays, travel 0 Comments

The weather is warming up at last. And that means many Brits will be planning a trip with a caravan, in some cases for the first time.

So today I’m sharing some top tips to ensure you (and your caravan) stay safe and reach your destination without any dramas. This post has been written in association with my friends at Compass, who are specialists in caravan and leisure insurance

As staycations continue to boom across the UK, more and more drivers are taking to the roads with caravans in tow. But with this rise in travel comes a sharp reminder: towing a caravan can be tricky, especially for the inexperienced.

According to recent claims data from Compass, a whopping 60.5% of touring caravan insurance claims are due to accidental damage. With the Easter holidays almost here and thousands of caravan enthusiasts preparing for trips, taking precautions on the road is more important than ever.

The Most Common Causes of Accidental Damage

Accidents often occur during reversing, navigating tight spots, or colliding with stationary objects like posts and curbs. Kevin Minnear, Head of Underwriting at Compass, explains:

“Accidental damage claims typically arise from drivers struggling with visibility and alignment when reversing. Misjudging turn angles or road positioning can result in costly repairs. Swaying at high speeds or during windy conditions is also a major factor, particularly for less experienced drivers.”

Caravan sites, service stations, and even parking areas can become challenging environments for manoeuvring, especially without prior practice or the right equipment.

Top Towing Tips to Help Prevent Accidents

To help you stay safe and avoid unnecessary claims, Compass shares these essential towing safety tips:

Check your towing match: Make sure your vehicle is suitable for towing your caravan. A good rule of thumb is the 85% rule – your caravan’s laden weight should not exceed 85% of your car’s kerb weight.
Distribute weight wisely: Keep heavy items low and close to the axle to maintain balance and reduce the risk of swaying.
Practice makes perfect: Reversing and manoeuvring can be difficult – especially under pressure. Practice in a quiet, open space and consider using a spotter or installing a reversing camera.
Adjust your driving: Towing affects acceleration, braking, and cornering. Drive at moderate speeds, allow for longer stopping distances, and watch out for crosswinds.
Run pre-journey checks: Check tyre pressures, lights, towing connections, wheel nuts, and mirrors before every trip.
Know the law: Ensure you have the correct driving licence and stick to legal speed limits: 60 mph on motorways and dual carriageways, and 50 mph on single carriageways.

Insurance and Training Matter

With accidental damage such a common issue, having the right insurance is crucial. Caravan insurance is separate from car insurance and is necessary to cover damages specific to your caravan.

Minnear adds:

“Many caravan accidents are avoidable with the right precautions. We encourage all caravan owners to familiarize themselves with safe towing practices and ensure their insurance covers what they need. DVSA-accredited towing courses are a great way to build confidence – and some insurers even offer discounts to those who complete them.”

As more Brits embrace caravanning, being informed and prepared is key – not only for protecting your caravan but also for ensuring your family’s safety and that of others on the road.

For more information about specialist caravan and leisure insurance, visit compass.co.uk.

Many thanks again to my friends at Compass for their assistance with this article. If you’re holidaying in a caravan this Easter – or later in the summer – I do hope your journey is both safe and enjoyable.

Happy caravanning!

As always, if you have any comments or questions about this article, please do leave them below.

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April 13, 2025

Guest Post: How to Publish Your Book (and Earn Royalties!)

Nick Making Money, Everything Else guest post, writing 0 Comments

Today I’m pleased to bring you a guest post from my friend and near-neighbour Sally Jenkins, a successful published fiction and non-fiction author (check out her latest novel Out of Control – a later-life romance perfect for summer holiday reading!).

Many older people (in particular) harbour an ambition to write a book and make money from it. If that includes you, I hope you will find Sally’s article of interest. In it she sets out the main options for getting your book published, and shares some valuable resources she has found.

Over to Sally then…

Everyone has at least one book in them, or so the saying goes. It might be a thriller, a memoir, a collection of poems or short stories, a ‘how-to’ non-fiction manual or something completely different. Finishing that manuscript is a laudable achievement in itself but don’t stop there. It takes guts to send any literary work out into the public arena; however, doing so can lead to an additional passive income stream in the form of royalties that continue to hit your bank account long after you’ve finished writing.

There are three main routes to publication that you might like to consider:

Traditional Publishing

Traditional publishers come in all shapes and sizes, from the giants like Penguin and Hachette to far smaller, less well-known companies who publish in e-book format only.

Traditional publishers bear all the costs of publishing a book, meaning there is no financial risk for the author. These costs may include editing, proofreading, cover design, marketing and the printing of physical copies. The author contributes nothing to these costs and receives a small royalty for each copy of the book sold.

The competition to be signed by a traditional publisher is fierce and only a very small number of authors are taken on. The larger companies will only accept manuscript submissions via a literary agent but it is possible for authors to submit directly to many of the small publishing houses. There is nothing to lose by trying this traditional route but be prepared to develop a thick skin to deal with the probable rejections. A good place to start is an up-to-date copy of the Writers’ and Artists’ Yearbook, which contains a comprehensive list of publishers and literary agents.

Partnership Publishing

In the partnership publishing model, the publisher and the author share the financial risk of publishing the book. This means the author will be asked to make a financial contribution towards the publishing costs. What proportion and how much this means in monetary terms will vary from company to company, so it’s worth approaching more than one partnership publisher and requesting explicit information about their offering. In return for contributing to the publishing costs, the author can expect to receive a higher percentage of royalty payments than under the traditional model.

However, care is needed when choosing a partnership company to work with – there are many rogue or ‘vanity’ publishers out there who will publish anything and charge a lot of money for very little service. Ensure that the company you choose has a manuscript selection process – even if this means you might face rejection as in the traditional model. A true partnership publisher will only publish books that it thinks have merit and will sell. Even so, there is no guarantee that you will recoup all or any of your publishing costs via royalties. Do not spend more than you can afford to lose.

The Writers’ Beware website has a section devoted to avoiding vanity publishers.

Self-Publishing

Authors who self-publish carry all the financial risk themselves but retain all the royalties (bar the amount taken by distribution platforms such as Amazon). It is possible to self-publish on Amazon at no cost or you might choose to spend hundreds of pounds depending on what services you buy in. The main services requiring financial outlay will be:

Cover Design – don’t attempt this yourself unless you are a graphic designer with a knowledge of the book covers currently selling in your genre. An amateur cover design will be obvious and off-putting to potential readers.

Editing – a novel (particularly a first novel) may benefit from a full structural edit. This will advise on plot, character development, pace etc. You might also want to consider a sentence level copyedit and/or proofread.

Formatting – some authors pay for this but, with a little patience, anyone who can use Microsoft Word can do this themselves.

Printing – there is no need to pay for a print run of books and hold them in stock.

Amazon (and other companies) use print-on-demand (POD) technology. This means that when someone orders a copy of your book it is printed individually and sent direct to the customer. Authors can also order copies at a reduced rate to sell direct to friends, family or the public at large.

The Alliance of Independent Authors has a directory of reputable editors, cover designers, proofreaders, etc. The directory also lists companies who can offer a complete self-publishing service for authors who don’t want to do any of the leg work – but this can be very expensive. As with partnership publishing, never spend more than you can afford to lose.

If you would like to know more about low-cost self-publishing via Amazon, the e-book Kindle Direct Publishing for Absolute Beginners (pictured, left) offers a good introduction. If you don’t currently read on Kindle, download the free Kindle app to your laptop, tablet or smartphone.

Whichever publishing route you choose, enjoy the journey and the royalties!

Bio: Sally Jenkins (pictured, right) currently writes uplifting and hopeful novels for the traditional publisher Choc Lit (part of Joffe Books). She has also had a novel published in partnership with The Book Guild and has self-published several books via Amazon KDP. When not at the keyboard, she feeds her addiction to words by working part-time in her local library and running two reading groups. Sally can also be found walking, church-bell ringing and enjoying shavasana in her yoga class. Follow her writing blog at https://sally-jenkins.com/.

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