SPRINGING FORWARD

Hurrah British Summer Time has arrived robbing us all of that extra hour in bed although now I’ve retired, I can compensate for this loss by simply getting up at midday.  

Spring is the ideal time to begin retirement not only because we’re heading towards better weather but because you can wind up all your financial affairs neatly in line with the end of the tax year.

Remember – a prosperous retirement relies on intimate knowledge of UK tax rules. Get to know them better than you know yourself.

For PAYE employees, the end of March marks the 12th month of the financial year. For those retiring at this time of year, your final pay packet is potentially the last time you’ll pay National Insurance, Income Tax or private pension contributions. I say potentially because you may have left work but income tax is still going to dog your footsteps like a demented stalker for the rest of your days.

First on the Tax To Do list is to inform the Revenue that you are no longer in employment. This can be done easily via the Government Gateway website or App. Log onto your account, go to the page that forecasts your income for the new tax year then zero any salary estimates shown against your past employer.

If you are getting income from any other sources such as a private pension, doing this should trigger HMRC into sending out a revised tax coding notice to your remaining income providers which in theory means that your full personal allowance should transfer across in its entirety if you have only 1 sole pension income provider.

Should you be drawing down from multiple private pension schemes at the same time then the situation is a bit more complex as HMRC will need to split your personal allowance across all your income providers so you could see lots of different tax codes suddenly appearing.

Apparently, it is down to an individual to take responsibility for correct tax coding and NOT the Revenue. This makes it even more important to keep on top of this stuff because HMRC can’t always be relied upon to get things right. If your tax codes don’t look right then challenge them asap. Don’t leave it as tax matters are always harder to unravel with the passing of time.

Secondly, if you have not already used up the annual ISA allowance then max out your ISAs. Stash as much cash as you can into any ISA accounts you have prior to the end of the tax year because ANY future retirement income drawn from an ISA account is completely untaxed.

If you are cashing in any private pensions fully to fund early retirement then an ISA is where you should be depositing funds to avoid paying any future savers tax.

Thanks to auto-enrolment I have a small private pension from my ex-employer that I will be cashing in as soon as we roll into the new tax year. Rather than keep the funds invested in a pension pot, I have decided to do this because:

1) Too much volatility in the stock market at present

2) Mansion House accord forcing pension providers to move money into UK equities

3) Possible reduction or removal of the 25% tax free pension lump sum by the Government

4) Possible increase in income tax rates in the next Budget

5) Tax wrapper benefits from cash ISA account


We’re all encouraged to pop our hard-earned cash into pensions BUT what is not always clearly pointed out at the onset are the tax liabilities you incur later on when you come to withdraw funds. Let me give you an example to explain what I mean.

Say I have a small private pension pot valued at £4,000 which I wish to cash in fully. I get to keep the first 25% or £1,000 free of tax. The remaining £3,000 is taxed at 20% so you pay away £600 income tax leaving you only £2,400 towards retirement.

Suppose, I change my mind and decide to leave the pension pot fully invested and draw down regular monthly income from it instead. The same applies. After the tax-free allowance of 25% is used up, you will pay income tax on whatever you draw out every month plus you will also be liable for annual Fund Management fees on the remainder.

Once you understand the above examples then points 3 and 4 made previously become much more important. Should the Chancellor decide to scrap or lower the 25% tax free lump sum allowance for pension withdrawals or put up the rate of income tax in November, your retirement finances will be impacted.

My gut’s telling me that there’s a pretty good chance that in November, income tax rates will need to go up. Not just as a result of the current Gulf war but to make up for loss of revenue from green levies being moved out of energy bills and into general taxation, pay for cost-of-living increases doled out to politicians/benefit claimants, the scrapping of the two-child benefit cap and to fund increases in the Defence budget.

I’d rather take a small tax hit now than a much larger one if the above comes to pass. Once my private pension cash is then stashed away in its ISA tax wrapper, income can grow without future tax penalties being applied. Naturally, the Government will try to stymie this by reducing the annual ISA allowances further because the ravenous revenue hyena is not going to pass up the chance of eating more of your pie.

It’s a given that a cash ISA isn’t going to potentially generate as much income as perhaps a stock market investment will but then again, it’s a small price to pay for security of your capital and NO taxes.

Whoops I’ve rambled on. That’s what happens when there’s no word limits imposed on blog posts. Was there a point to this post? Yes. Choose your retirement date wisely. Whatever you do to fund your retirement always spread things out across multiple tax years to reduce tax liabilities and make full use of tax wrappers. Hence why I will be waiting until at least May before cashing in my small private pension.

BELLS & WHISTLES

Big is beautiful. Or is it?

Back in January 2024 I put up a post relating to ‘shrinkflation’, the popular practice of making products smaller yet charging the same price for them but get this – there’s a new sheriff in town making BIG changes.

Living in a consumerist economy where you’re encouraged to buy, buy, buy means that retailers have to continually come up with cunning ways to part us from our cash. And the latest trend appears to be quite the opposite of ‘shrinkflation’ because instead of giving you less, you’re going to be paying lots more for a whole host of unnecessary bells and whistles or larger sizing.

This all became abundantly clear during the Easter break when I was searching for buns and eggs. Something strange going on here I thought as I perused supermarket shelves.

For example, let’s take the good old hot cross bun. For the past couple of years, I’ve noticed that boring old hot cross buns have been transitioning from what essentially was a simple currant brioche into a stylised poshed up tea-cake baked in a myriad of funky flavours.

Ugh! Why can’t they just leave these things alone? If it ain’t broke, don’t fix it! 

I don’t want chicken tikka/bubble gum flavoured buns costing £2 plus for a pack of four, I just want the old-fashioned variety to slot into the toaster then slather in butter for breakfast. I recall a few years ago, these currant buns could be bought in packs of six costing a quid now the price has doubled and so has the flavour profile.

And eggs. Don’t get me started on these as that’s a whole new ball game too. Why charge consumers a couple of quid for a plain one filled with a few smarties when for the price of a king’s ransom, you can flog them a ‘luxury’ egg the size of a watermelon in expensive looking packaging? The goose that laid these golden eggs allegedly made of ‘chocolate’ but with less cocoa in them than a bourbon biscuit is certainly fleecing its nest from gullibility.

Buns or chocolate eggs are not the only products being upsized in a bid to part us from our wonga because the eagle has also landed in the laundry basket in the form of Ariel’s Big One. Big mess? Big money. Why stick one ordinary sized pod into your washing machine when for a lot more cash, you could just pop in a bigger one costing double? Guaranteed to clean out mud, grass stains and your wallet all in one easy flick of the wrist.

Weirdly all this tinkering about in the detergent world has annoyed me so much that I’ve reverted back to good old fashioned wash powders. One scoop in the drawer, job’s a good ‘un. No fuss, no additional scent boosters, big ones or sickly-smelling glopping liquids that can be used at lower temperatures. Much more cost effective, less polluting/plastics so environmentally better.

I’m not convinced that washing dirty clothes in temperatures no warmer than a tepid cuppa is going to shift stubborn stains or germs. It’s a jolly hot soaking for the other half’s stinky socks, crusty smalls or sweaty bed sheets.

Super scrimpers beware of these artifices designed to trick you in buying stuff that doesn’t provide value for money. I stopped buying Easter eggs years ago, preferring instead to purchase chocolate bars costing the same but weighing more. Hot cross buns freeze well so buy when on a yellow-ticket price reduction then stick in the freezer until the Easter weekend.

And a bit like Christmas, it's sometimes best to defer your Easter celebrations until after the actual event because most shops sell any leftover chocolate eggs at reduced prices so you get more for your money.  

Remember, big is not always beautiful. Big can encourage wastage. Bells and whistles will cost more but won’t always be better. Buy only what you can afford and always look out for those pennies.

FOOD GLORIOUS FOOD

Unexpected item in the bagging area.

Woke up this morning to find that Ana Robic had paid us a midnight visit leaving behind a brightly coloured gift in the form of a food recycling bin. Animal, vegetable or mineral? Looks like a character out of Star Wars.

I come in peace

Not another bin! Just where do the Council expect residents to keep all these recycling receptacles? At this rate I’ll be charging them ground rent for my driveway. Pssst! Keep it to yourselves but I don’t actually keep my bins on the drive due to lack of space but have positioned them on the footpath by the front gate. My view is – council bins should sit on council property, not mine.

In Spain, households do not have their own personal set of waste collection bins. Instead, huge commercial type dumpsters are dotted around a neighbourhood on the street. Residents are expected to take out their crap and sort it on arrival at the recycling station according to whether it is glass, plastic packaging, paper/card, food or general waste.

Dumpster pilgrimages regularly take place because no-one wants a bin full of smelly rubbish cluttering up the kitchen. I know this because it was my job to take out half a dozen carrier bags of pre-sorted rubbish to feed to the dumpster dinosaurs near my parents house in El Rincon each afternoon before going off for my daily walk.

Somehow, I can't see this kind of system ever succeeding in lazy Britain where even clearing a table in McDonalds after chowing down on a smorgasbord of junk food is all too much for some peeps.

I’m all for food waste collecting because we rarely have scraps. I don’t peel veggies except onions and in a household of hungry hippos every last little bit is recycled in our bellies. Food waste is minimal. Brown bananas turned into delicious ‘nana’ bread, skins can be chopped into small pieces soaked in water to create liquid fertiliser which plants love. Stale bread saved for the birds.

However, it’s all well and good getting the population at large to donate all their peelings or parings but there’s little tangible benefit to us other than that warm fuzzy feeling that comes with doing something that in theory is going to ‘save our planet’.

Chichester District Council have been given around £1.7 million quid to spaff on a food recycling scheme at the Government’s behest. I consulted their website to find out what’s going to happen to anything I pop into my spangly new bin. Here’s what it said is going to happen to my food scraps:

Food waste that’s collected will go to an anaerobic digestion plant in Horsham. That’s nice, a scenic trip through beautiful South Downs countryside. Everyone loves a day out in the country including food waste. Benefits of recycling instantly wiped out by the carbon footprint of transport emissions.

Once in Horsham, leftovers will undergo a miraculous transformation into one of two things – fertiliser to help farmers grow crops or energy to power the plant. Do these processes create emissions? Not a mention on the website of impact to the planet of this conversion process.  Methane?  Phew!

The Council then went on to say that if there’s any extra energy, it will be sent to the national grid to power homes and business.

Sounds great. So, what’s in it for me? I grow veggies in my back garden. Perhaps if I rocked up in Horsham with a wheelbarrow some of that fabulous fertiliser could be given back to the community for free. And what about all that lovely leccy going back to the grid? Any chance of some kind of recycling discount on my energy bill for contributing to the nation’s power supply? Don't be daft.

I suppose the Council will sell both the fertiliser and extra energy, pocketing the proceeds yet keeping our council tax bills at the now extortionate band D rate of £2,400 per annum.

In addition to there being zero tangible financial benefit to compensate contributors of free food waste, it appears I have to buy my own compostable bin liners for the small kitchen caddy. The cheek of it! 

When I lived in Bournemouth, the local council provided replacement rolls of liners FREE OF CHARGE. So, not only am I paying for this service out of increased council tax charges but it’s also going to cost me to keep the bin from getting skanky.

Are you calling me a skank?

Whilst it’s not compulsory to actually use the bins, I can see this being dismissed as an additional faff by the average household who certainly aren’t going to be too happy at shelling out continually for bin liners. I mean, who’s going to remember to add these to the weekly shopping list? It’s bad enough having to buy compostable poo bags for cat turds.

My name's not Mr Jinx

Saving the planet with one hand, killing it by filling the atmosphere with emissions and landscapes with non-biodegradable plastic bins. That’s the ridiculousness of green policies for you!

NANASAURUS

Now that I don’t have work to worry about, I’ve volunteered to look after my darling grandson for a week during the school holiday break.

The little munchkin is now a ‘3-nager’ as my daughter puts it. You guessed – defiant, loud, stroppy, bossy and with an appetite to rival that of a giant panda so I’ve already come up with a cunning plan to make sure the little monster is properly worn out at the end of each day.

This miniature dynamo switches from boy to dinosaur, notably T-Rex, when you least expect it. I’ve been warned not to be shocked by loud roaring, stomping or attempts to ‘eat me’ as that’s what apex prehistoric predators do even to their grandparents.

I may be long in the tooth but I can still do Jurassic. Nanasaurus has bought herself a few silicone moulds in the shape of dinosaurs to make some yummy treats for visiting toddlers.

First stop – Lakeland. Silicone mould featuring 12 mini dino-sized creatures costing £2.99. Perfect for making mini chocolate monsters.

Lakeland silicone dinosaur mould

Here’s how to rustle up the perfect Jurassic treat for your little darlings:

Place your silicone mould on a metal baking tray.

Prepare everything before melting the chocolate

Melt around 150g of chocolate in a bowl over a pan of boiling water (or microwave in short bursts). I’ve not used any expensive fancy cooking chocolate, just a couple of bars of the cheapest supermarket stuff I could find for this experiment.

Take care not to let water get into your chocolate mix

Leave liquid chocolate to cool slightly then fill your mould either using a teaspoon or by using a plastic piping bag with the tip cut off. I found the piping bag method less messy than a spoon plus it enabled me to get right into those tiny silicone nooks and crannies.

Tala plastic piping bags.

Give the chocolate filled mould a few taps to disperse any air bubbles and level off the filling.

Fill then tap mould to disperse air bubbles

Put tray and mould in the fridge for a couple of hours to allow the chocolate to set.

Once fully set, carefully push the little dinosaurs out of their silicone settings. Don’t over handle the figures as I found these melted in your fingers quite quickly.

Pop into a plastic container to store in the fridge until needed.

Just look at how cute these little dinos are! Almost too good to eat.

These look roarsome!

Planning to have a go at making a few with white chocolate just to see how they compare to these dark choco ones.

To make our Jurassic treat even more fun, I'm going to hold our very own archaeological dig by hiding some mini chocolate or cookie dinosaurs in a small box/tray covered over with soil (grated chocolate). Won't it be great to watch your little one uncovering these tasty fossils with a small brush like a real paleontologist.  Steven Spielberg eat your heart out.

Can’t wait to try this out on my grandson later this week.  

Who says grandparents can't be roarsome!