Tag: advice

Teetering on the brink: most Scots one bill away from debt

Over half of Scots sometimes run out of money before payday

More than half of Scots (51%) say they occasionally run out of money before payday, with 15% saying they do so ‘most of the time’ or ‘always.’ 

The figures are part of a major new report published by Citizens Advice Scotland (see below) which aims to take a snapshot of the financial realities facing Scots in 2017, and in particular the relationship people have with debt.

Other key findings from the research, which was conducted by Ipsos Mori, include:

• 55% of Scots would be unable to pay a sudden bill of £100 without borrowing, using savings or cutting back on essentials. The equivalent figure for a £250 bill is 69%, and for £1,000 is 83%.

• Only 42% of Scots feel they understand their rights in relation to debt.

• Older people and those with full-time jobs are less likely to be in debt, but many Scots who are in work report that they often need to borrow to supplement their income.

• Those who are in work are just as likely to be refused credit as those not in work.

Publishing the report, ‘Living one payday to the next,’ CAS policy manager Keith Dryburgh said: “This study shows that for most Scots debt is just a fact of life. It also shows that debt is not just an issue for people who are on low incomes. Many working Scots on reasonable salaries occasionally need to borrow money to get them from one payday to the next.

“While many of these people would not regard this as a crisis situation, our research also finds that many people are vulnerable to financial shocks, like being unable to pay a sudden bill without getting into debt or using savings. And more than half of Scots are not familiar with their rights as debt consumers.

“Given that debt is so pervasive in Scotland, we are keen to make sure that people know their rights in relation to debt, and also know what options they have if they want to manage their finances better. We have information and tools on our website that will help anyone do this, and free impartial advice is also available at every local CAB.”

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Spring clean your finances, urges local tax specialist

A local tax specialist is urging small businesses to spring clean their finances as they tackle a raft of changes from this April.

Alan Johnston, who runs TaxAssist Accountants in Goldenacre, said: “Although the Government has now decided not to increase National Insurance contributions for self-employed people following a major backlash, other announcements in the Spring Budget added to a long list of changes and new responsibilities for small businesses. We want to ensure that local business owners make the most of all relevant tax breaks and don’t get caught out by the new rules.

“Although some of the changes, such as reduced dividend tax allowance for director-shareholders, will not start until next year, there are significant challenges for local business owners which come into force from April this year.”

Key changes from April 2017 include:

  • Corporation tax is cut to 19%
  • VAT registration threshold rises from £83,000 to £85,000
  • Businesses with very low cost bases who participate in the VAT flat rate scheme will pay a 16.5% fixed rate, they will however continue to charge VAT at 20%
  • The National Living Wage rises to £7.50 an hour
  • The cash basis accounting threshold for small businesses rises from £83,000 to £150,000
  • Many local businesses will reach their staging date for workplace pensions and must automatically enrol eligible staff in a scheme and contribute to their pension pot
  • And although unincorporated businesses with turnover below the new £85,000 VAT registration threshold have been given a further year to comply with quarterly reporting to HMRC, we’re urging local business owners to continue their vital progress on preparing for the new digital tax rules.

TaxAssist Accountants Goldenacre is a local business providing tax and accountancy advice and services purely to small businesses.

Thanks a million – CABs suppport one in 14 adult Scots

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Scotland’s Citizens Advice service gave 1 million pieces of advice last year, helping over 310,000 individuals – equivalent to over 1 in every 14 adults.

The service also put £120m into the pockets of Scottish citizens, though improving their financial health by helping them to access benefits entitlements and manage debt effectively. This helped some to avoid crisis situations like poverty, debt and homelessness.

Continue reading Thanks a million – CABs suppport one in 14 adult Scots

Easing the burden: funding extension for ‘crucial’ advice services

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Successful projects that have helped people cope with issues such as debt, mortgage worries and benefit problems will continue thanks to £6 million of funding. Among those succesful projects is Granton Information Centre, who increased one client’s household income by a staggering £15,000. Continue reading Easing the burden: funding extension for ‘crucial’ advice services