The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald


The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald.
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.


The Government is being urged by both pension providers and banks to delay the April 2017 launch of the new Lifetime ISA as they are warning that they will not be ready to offer the savings product by this time.
A new Lifetime ISA introduces a new type of savings account for adults under the age of 40.
Individuals will be able to contribute up to £4,000 per year and receive a 25% bonus from the government.
Funds, including the government bonus, can be used to buy a first home at any time from 12 months after opening the account, and can be withdrawn from age 60 completely tax-free.
Further details of the new account, which is expected to be available from 2017, are as follows:
  • Any savings an individual puts into the account before their 50th birthday will receive an added 25% bonus from the government. 
  • There is no maximum monthly contribution and up to £4,000 a year can be saved into a Lifetime ISA. 
  • The savings and bonus can be used towards a deposit on a first home worth up to £450,000 across the country. 
  • Accounts are limited to one per person rather than one per home, so two first time buyers can both receive a bonus when buying together. 
  • Where an individual already has a Help to Buy ISA they will be able to transfer those savings into the Lifetime ISA in 2017, or continue saving into both. However only the bonus from one account can be used to buy a house. 
  • Where the funds are withdrawn at any time before the account holder is aged 60 they will lose the government bonus (and any interest or growth on this) and will also have to pay a 5% charge. 
  • After the account holder's 60th birthday they will be able to take all the savings tax-free. 
Pension providers Aegon and Standard Life have stated that they have delayed their plans until final details regarding the Lifetime ISA are released.
The Financial Conduct Authority (FCA) is yet to consult on the initiative.
Steven Cameron, Pensions Director at Aegon, stated that a consultation is 'likely to take three months' to carry out.
Meanwhile, a spokesperson for Standard Life said: 'As we want the Lifetime ISA to be a success, we would prefer that its launch is delayed until providers receive more detail on the product and how it is to be implemented.'
The Treasury is expected to confirm full details in the autumn.
In other news, new company car advisory fuel rates have been published which take effect from 1 September 2016.
The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 September 2016 are:

Petrol rates based on engine size.
1400 cc or less 11p
1401cc – 2000cc 13p
Over 2000cc 20p

LPG rates
1400 cc or less 7p
1401cc – 2000cc 9p
Over 2000cc 13p

Diesel rates
1600cc or less 9p
1601cc – 2000cc 11p
Over 2000cc 13p

The guidance states that the rates only apply when you either:
reimburse employees for business travel in their company cars
require employees to repay the cost of fuel used for private travel
You must not use these rates in any other circumstances.
If you would like to discuss your car policy, please contact us at Clay Shaw Butler.

You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
http://www.clayshawbutler.com/news/latest-news-for-business
We have a strong and experienced team with great local knowledge all geared-up to helping you get the very best from your finances – whether that is as an individual or as a business.
We stay ahead of the game by putting great store by continual professional development for our staff.
With Investors In People status at Clay Shaw Butler, we care passionately about making sure our staff have all the tools they need to serve you, our customers.

Weblink -http://www.clayshawbutler.com
The team at Clay Shaw Butler can be contacted on 01267 228500.
The team at Clay Shaw Butler are on Twitter. Look for @clayshawbutler. 

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