Tag: finance

Beating the big boys: Castle Community Bank raises interest rates

Castle Community Bank, the Edinburgh-based not-for-profit financial institution, has raised its fixed term rates for savers. It now offers 1.65% for two years and 1.75% for three years for fixed term deposits of up to £15,000 – a much better rate than the big banks currently offer.  Continue reading Beating the big boys: Castle Community Bank raises interest rates

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.

Scotcash heading east

Award-winning Community Development Finance Institution Scotcash to expand into Edinburgh

Glasgow based social enterprise Scotcash are to make their award-winning inclusive and ethical financial services available to people in Edinburgh for the first time.

With support from Oak Foundation and The Virgin Money Foundation, Scotcash will open a new branch in Edinburgh later this year. 

Since opening in 2007, Scotcash has been tackling financial and social exclusion in Glasgow by targeting and working with people who face barriers to mainstream financial services.

As well as offering affordable loans, Scotcash helps their customers to set up basic bank accounts, connect with local credit unions to begin savings accounts, and referrals for vital money advice. 

Nancy Doyle, Executive Director of Virgin Money Foundation said: “Tackling the root causes of disadvantage is key to regenerating communities across the UK. Our new fund aims to enable activity that can have a positive ripple effect beyond its immediate context and help community hubs to flourish, learn from one another and export best practice.” 

Sharon MacPherson, Chief Executive, Scotcash said: “We are delighted to be awarded funding. This will go a long way towards helping financially excluded citizens in Edinburgh access the financial products and services they need. We know that many people with low incomes pay much more than better off families because they can’t access banking, affordable credit or savings. This award will allow Scotcash to expand our already successful services to Edinburgh and promote financial inclusion across local areas where these services are needed most.” 

A further expansion of Scotcash services is also planned for Inverclyde in the future as part of a separate project. 

Since its launch 10 years ago, Scotcash has retained over £5m in the community through like for like customers savings on interest and has been recognised with accolades from the Guardian, COSLA, and the Giordano Dell’Amore Microfinance Good Practices Europe Award.

Edinburgh’s Council Tax to rise by 3%

The City of Edinburgh Council has voted to increase Council Tax bills by 3%. The council says it will continue to prioritise frontline services for young, older and vulnerable residents while making necessary savings under the budget agreed yesterday, but critics say Edinburgh’s citizens are being forced to pay more for poorer council services.

Continue reading Edinburgh’s Council Tax to rise by 3%

A budget for ‘growth and public services’ – or a ‘massive con’?

Finance Secretary Derek Mackay has unveiled a ‘budget for growth and public services’ as he announced new investment in healthcare, education and local services, combined with support for jobs through lower business rates. However opposition parties are less than impressed with the SNP plans and it’s likely that the government will have to rely on the support of the Greens to get their budget passed.

Continue reading A budget for ‘growth and public services’ – or a ‘massive con’?

COSLA: give us a break

It’s the blame game. Local government blames Holyrood for cuts to services. Holyrood blames Westminster. Westminster says it’s Holyrood’s fault – and so the cycle goes on. And on. And on. And while the various democratic structures pass the buck, communities continue to suffer – and, as ever, the poorest communities suffer most …

COSLA President Councillor David O’Neill said that Council Leaders had given COSLA a very clear message over the course of the last week that the Scottish Government have to treat local government fairly in tomorrow’s settlement announcement. Continue reading COSLA: give us a break

Double whammy: Brexit and Autumn Statement will hurt poorest families, says Minister

A pay packet

The UK’s weak economic outlook and the UK Government’s austerity policies will hit low income family incomes hardest, according to Scottish Finance Minister Derek Mackay.

Analysis by the Institute for Fiscal Studies (IFS) shows that as a result of this slowdown, by 2021 incomes across the UK will still be lower than they were in 2008. That implies 13 years without any growth in real wages – the longest period of stagnant wages since World War II.

Meanwhile, the Office of Budgetary Responsibility (OBR) has set out the detrimental impact that Brexit and the UK Government’s approach to the negotiations is having on the economy. They expect that the uncertainty generated will lead to investment being postponed or cancelled; higher inflation squeezing households’ real incomes; and that trade with the EU will be reduced.

Analysis of the Chancellor’s Autumn Statement has also shown that the measures he announced will do little to offset the cuts to social security already put in place by the UK Government. For example, the Resolution Foundation estimate that a dual earning family with three children on low incomes will still be £3,650 worse off by 2020 as a result of the changes to the economic outlook and policy measures being introduced in this parliament.  Likewise, they expect some lone parents to be up to £2,640 a year worse off.

Mr Mackay said: “Brexit has blown a huge hole in the UK economy – and the Chancellor’s Autumn Statement is an admission of that. With real wages forecast to still be lower in 2021 than they were prior to the financial crisis, Brexit is driving a decline that will be felt for generations.

“Meanwhile, the OBR has said that leaving Europe will create a £58 billion hole in the public finances, and unfortunately it’s families that are having to pick up the tab.

“Scotland did not vote for Brexit yet this renewed economic squeeze is going to hit hard-working families here who are already struggling to make ends meet.

“The tax and welfare reforms being introduced by the UK Government during this parliament are highly regressive, with those on the lowest incomes seeing the largest losses in both cash terms and as a share of their incomes.

“And I am deeply worried by reports that UK changes to tax and welfare through to 2020 will result in the poorest families with children seeing their incomes fall by up to £3,300 according to the IFS – that is a cut of nearly 18%. But we have seen no reversal on the UK Government’s damaging austerity agenda – in fact the Joseph Rowntree Foundation has highlighted that changes to universal credit are dwarfed by the existing UK cuts to social security.

“The Scottish Government, in contrast, is taking a very different approach to growing our economy, building a fairer welfare system and protecting our relationship with Europe. I was disappointed to see the Chancellor failing once again to commit to the single market instead pandering to the hard-Brexit agenda that is damaging our economy.

“I look forward to publishing the Scottish Draft Budget next month that will support our economy, tackle inequality and provide high quality public services for all – underlining once again the stark contrast between our two governments.

“Our overriding focus must now be on safeguarding Scotland’s place in Europe and continued membership of the single market, to protect us from the disastrous economic impact of Brexit, which is becoming clearer by the day.”