A MAJOR energy supplier with 6.8million customers will start issuing a £160 payment to thousands of customers from next month.

Octopus Energy is giving eligible customers extra cash through the Warm Home Discount to help reduce their bills this winter.

1

The supplier has now said that it will begin issuing the payment from October.

It added that all eligible customers will have the discount applied to their electricity bills by March 31, 2025 at the very latest.

Between now and December, the government will issue letters to households that are eligible for the scheme.

The eligibility requirements for the Warm Home Discount are the same as last year.

To qualify for the Warm Home Discount, you need to claim either the guaranteed credit element of pension credit or a different qualifying benefit form the list below:

If you weren’t claiming any of the above benefits on August 11, 2024, you won’t be eligible for the payment.

Where someone claims a qualifying benefit, the government will assess their energy costs based on the type, age and size of property. 

Around 880,000 pensioners are eligible for pension credit but not claiming it.

As well as missing out on a £300 winter fuel payments, they won’t get the £150 Warm Home Discount payment.

Even if you weren’t getting pension credit on August 11, thousands of pensioners who apply for the benefit now can still qualify for the £150 payment.

This is because pension credit rules allow first-time claimants to backdate their benefit entitlement by three months.

So you’ll need to launch your claim by Friday, October 11 and then successfully get it backdated to cover the August 11 Warm Home Discount qualifying date.

But if you fail to apply before this date you’ll miss out.

We’ve explained everything you need to know about Octopus Energy’s scheme below.

Do I need to apply for the discount?

Households in England and Wales don’t have to apply to get the cash and receive it automatically.

You should look out for a letter between October 2024 and early January 2025 telling you:

• You’re eligible and you’ll get the discount automatically; or
• You might be eligible, and you need to give more information.
• The letter will tell you to call the helpline by 29 February 2024 to confirm your details.

If you don’t get the letter by early January 2024 and you think you’re eligible, you need to call the helpline on 0800 030 9322.

If you’re eligible, your electricity supplier will apply the discount to your bill by 31 March 2025. 

Some Scottish households do have to apply for the discount.

In Scotland there’s a “core group” that’ll receive an automatic payment and a “broader group” which has to apply for the scheme with their energy provider.

You’ll need to check with your energy supplier directly to see the eligibility requirements and details on how to apply.

The scheme will have more applicants than places, so make sure you apply as soon as possible.

Octopus Energy customers can apply by visiting octopus.energy/login/?next=/dashboard/new/accounts/warm-home-discount/.

How will I receive the discount from Octopus Energy?

If you pay by direct debit or on receipt of your bill the £150 Warm Home Discount will be added to your electricity account as a credit.

If you have a traditional prepayment meter, Octopus Energy will send you a voucher you can use to top up your meter at your nearest Paypoint kiosk.

You can find your closest one by visiting consumer.paypoint.com/cashout.

If you’ve got a smart prepayment meter, Octopus Energy will send the discount directly to your meter as a credit.

It will then send you an email to let you know it’s on there.

 Introduction

As the 2024 fiscal year draws to a close, small businesses face the critical task of examining their financial strategies to maximize tax benefits. Effective end-of-year financial planning is essential not just for tax savings but also for setting the stage for future financial health and business growth. This guide provides detailed insights into how businesses can harness various tax planning strategies to enhance their financial outcomes as they transition into the new year.

 The Significance of End-of-Year Financial Planning

End-of-year financial planning is pivotal for businesses looking to optimize their financial performance and tax liabilities. This process involves a thorough review of the company’s financial activities, to maximize tax deductions, take advantage of available credits, and plan for upcoming tax obligations. Proper planning ensures that businesses do not miss out on opportunities to reduce their tax burden and improve their overall financial standing.

 Key Strategies for Maximizing Tax Benefits

1. Accelerate Deductions:

– Consider prepaying expenses that can be deducted in the current tax year. This might include office supplies, business insurance premiums, or professional fees. Additionally, using a pay stub generator can help businesses efficiently manage payroll expenses and ensure accurate records, further aiding in year-end deductions.

2. Defer Income:

– If possible, defer income to the next fiscal year, especially if you anticipate being in a lower tax bracket. This strategy can be particularly effective for businesses that have control over when they bill clients or receive payments.

3. Capitalize on Retirement Plans:

– Maximize contributions to retirement plans such as 401(k)s or SEP IRAs. These contributions not only secure future financial stability for employees and business owners but also reduce current taxable income.

4. Utilize Loss Harvesting:

– Review your investment portfolio for any unrealized losses and consider selling off underperforming assets to offset gains. This strategy, known as loss harvesting, can significantly reduce capital gains taxes.

5. Review Asset Depreciation:

– Take advantage of depreciation deductions by purchasing business equipment or vehicles that qualify for Section 179 or bonus depreciation. This can lead to substantial tax savings, especially if large purchases were planned for early the next year.

6. Manage Inventory Effectively:

– Conduct a year-end inventory review and write down any obsolete or unsellable inventory. Reducing inventory through proper valuation can decrease taxable income.

 Additional Considerations

1. Charitable Contributions:

– If your business plans to make charitable donations, consider making them before the year ends to claim deductions. Ensure that contributions are made to qualified organizations to be eligible for tax benefits.

2. Energy-Efficient Improvements:

– Invest in energy-efficient upgrades for your business facilities. Many governments offer tax credits for businesses that implement green technologies, which can lead to direct tax savings.

3. Tax Credit Eligibility:

– Stay informed about any new tax credits for which your business may be eligible. Tax credits can directly reduce the amount of tax owed, unlike deductions, which reduce the amount of income subject to tax.

 Conclusion

End-of-year financial planning is a crucial exercise that requires careful consideration and strategic action. By employing these strategies, businesses can not only minimize their tax liabilities but also position themselves for improved profitability and growth in the coming year. Always consult with a tax professional to tailor these strategies to your specific business needs and ensure compliance with the latest tax laws. As 2024 ends, proactive financial planning and execution will be key to leveraging tax benefits and setting a positive tone for 2025.

Good morning and welcome to your Morning Briefing for Friday 27 September 2024. To get this in your inbox every morning click here.

How ‘anti-tax’ advice is failing clients – and society

Many talk about tax as something scary and complex that only professional advisers can navigate, which can disempower clients and potentially make them overly reliant on their advisers, writes Olivia Bowen, partner client advice, at Castlefield.

Most firms in this sector talk about tax as something to be avoided, even if it means tangling up clients’ affairs in complicated trusts or other arrangements.

There’s a tendency for advisers to assume clients always want to maximise tax savings, regardless of the resulting complexity. But not all clients want this.

Consumer protection drives biggest rise in regulatory pressure

The greatest increase in regulatory pressure stems from requirements to comply with and embed consumer protection regulations, KPMG has revealed.

It was revealed in KPMG UK’s latest Regulatory Barometer, a biannual measure of the regulatory pressure faced by financial services firms in the UK and EU.

The regulatory impact score in this area has risen from 6.8 to 7.4 (out of 10) since March 2024.

Quote Of The Day

Hundreds of thousands of people take their pensions each year with no advice, and much more needs to be done to help them make well-informed decisions

– Steve Webb, former pensions minister and consultant at LCP, comments on the FCA’s latest Retirement Income Market Data figures

In Other News

7IM has appointed Asim Qadri and Brian Leitao as investment managers. The duo will report into Uwe Ketelsen, head of portfolio management.

In their new roles, they will focus on enhancing and deepening 7IM’s fund selection and portfolio management capabilities.

Qadri joins from Abrdn, where he was part of the multi-asset team responsible for investment manager research and portfolio construction across various asset classes.

Before then, he worked in similar roles at Architas, Mercer and Société Générale.

Leitao has eight years of investment experience gathered at Fundhouse, EQ Investors, Morningstar and most recently Mercer.

Throughout his career, he has conducted fund research across a broad range of sectors and geographies, both actively and passively managed.

He also performed asset class research more broadly across wealth and institutional teams.

Their appointments follow a series of hires across the business by 7IM this year, with further recruitment underway.

Reeves mulls tweaks to UK’s tax plans for ‘non-dom’ foreigners (Bloomberg)

Many Wall Street executives are worried about Trump but wary of Harris (Reuters)

China’s bumper stimulus leaves consumers wanting more (Financial Times)

Did You See?

Technology has done wonders for advice over the past decade, helping millions of people over the years, but it is nowhere near where it needs to be for the industry to achieve its fullest potential, writes Russell Lancaster, 7IM’s managing director, platform and intermediary partnerships.

According to a recent report from the Lang Cat, if the advice industry were to reduce technological inefficiencies and processes, client volumes per firm could increase by 40-50%, which equates to an uptick of two million customers.

Some of the causes of these inefficiencies lie in poor technological infrastructures, coupled with incompatibilities between platforms and providers.

One area where much progress needs to be made is the transfers process.

Transfers can only work as fast as the slowest player involved, and a provider servicing an outgoing customer might not be highly motivated to see its money moving off its books.

Read the full article here.

QUALITY Street fans will be keen to find out where they can get their hands on a family-favourite sweet which was previously discontinued.

Nestle is bringing back the popular coffee-flavoured fondant wrapped in dark chocolate for the second Christmas in a row.

1

The Coffee Creme flavour was a staple included in Quality Street tubs more than 20 years ago and was reintroduced last year by the chocolatier.

Fans of the festive treat will be able to get it again this year, but will not be able to find the delicious flavour by rummaging through their usual Quality Street tubs though.

Instead, this Christmas they can be found at 20 pick and mix stations at certain John Lewis shops in the UK.

The first pick and mix station opened on Wednesday at John Lewis’s flagship store on Oxford Street in London.

Other stores in areas including Leicester, Milton Keynes, Liverpool and Solihull will begin rolling out the selections throughout October.

You can see the full list of stores where they are available below.

Shoppers can purchase a Quality Street tin in the shop or bring their own to fill up.

Pick and mix tins cost £17 but the price drops to £14 if you bring your own tin from a previous year.

But shoppers who don’t live near a John Lewis pick and mix station do not need to worry as they will still be able to get their hands on the festive treat elsewhere too.

The Coffee Cremes will also be available in limited-edition crackers online and in Waitrose and John Lewis stores for £5.50.

Plus chocolate-lovers can also buy a pouch containing the beloved sweets for £4.50.

The crackers and pouches can be picked up in all 34 John Lewis stores and more than 270 Waitrose stores.

A 813g tin of Quality Street without Coffee Cremes costs £12 at Waitrose.

But Tesco shoppers with a Clubcard can pick up a 600g tub for just £3.95.

John Lewis said: “We couldn’t not listen to our loyal Quality Street fans when they pleaded with us to bring back Coffee Creme for another year… so we are delighted to reveal that you have one more chance to get your hands on this iconic sweet!

“This indulgent little chocolate packs a powerful flavour punch with its creamy coffee fondant centre, encased in a smooth, luxurious dark chocolate.”

Coffee Creme is one of 12 flavours that shoppers can add to their tins at the John Lewis pick and Mix stations and popular flavours including the green triangle are also available.

Plus this year Quality Street has a range of new products exclusive to John Lewis and Waitrose.

One of the tins which is only available at John Lewis and Waitrose and features a street in Halifax, West Yorkshire, where Quality Street was created in 1936.

Nestle has also launched a new version of its 813g tin which is available at all major supermarkets.

The limited-edition tub features all the usual flavours and has a beautiful lid showing a Christmas scene.

The tin is £12 and is available now across a range of retailers nationwide including Sainsbury’s, Waitrose, Asda, Co-op and Morrisons.

The full list of chains you can get it from include:

• Asda
• Co-op
• B&M
• Morrisons
• Nisa
• Ocado
• Sainsbury’s
• Booths
• Spar
• Waitrose

This Christmas there’s also a new limited-edition hazelnut frothy coffee inspired by the Green Triangle Quality Street flavour.

You can buy seven sachets for £2.35 at Morrisons.

Meanwhile, Tesco shoppers have been racing to get their hands on Celebration tubs with just one flavour in time for Christmas.

Plus supermarkets including Sainsbury’s and Tesco have released the details of their Christmas ranges.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Late payments are one of those challenges every small business owner dreads. When you’re waiting on overdue invoices, it can throw a wrench in your entire operation. Rent, payroll, inventory—all the crucial expenses—still need to be paid on time, whether your customers pay you or not. But there are ways to reduce this risk and protect your business’s financial health.

The Ripple Effect of Late Payments on Small Businesses

Cash Flow Strain

Unlike larger companies, which often have a cushion of reserves, small businesses tend to operate with more sensitive cash flows. Every payment you’re expecting plays a role in covering daily operational costs, like paying suppliers, employees, or utilities. Using a small business invoice template can help streamline this process, ensuring timely invoicing and reducing errors that may lead to payment delays.

When an invoice isn’t paid on time, your cash flow takes an immediate hit, and you may have to dip into savings, take out short-term loans, or delay important purchases. These stop-gap solutions often come with added costs, like interest or fees, that eat into your margins.

Administrative Burden

Late payments also add to your workload. Instead of focusing on growth or client relations, you might find yourself spending valuable time chasing down overdue invoices, sending follow-up emails, or making awkward phone calls. This extra layer of stress pulls you away from more important tasks, and, in the end, you’re investing time and energy just to get the money you’ve already earned.

Relationships at Risk

If you’re struggling to pay your suppliers on time because your clients aren’t paying you, it can damage your reputation. Your suppliers might tighten their payment terms or even refuse to work with you in the future. Worse yet, it can affect your ability to pay employees on time, which can lead to lower morale and productivity.

Strengthening Financial Health Through Invoicing Best Practices

Clear and Concise Payment Terms

One of the most important things you can do is set clear payment terms from the very beginning. Whether you’re working with long-time clients or new ones, every invoice should clearly state when the payment is due, what payment methods are acceptable, and any penalties for late payments.

Incentivize Early Payments

Offering an incentive for early payments is another effective strategy. A small discount—perhaps 1-2% off the total invoice—can motivate clients to prioritize paying you sooner rather than later. While you might forfeit a tiny portion of your profit, the benefit of improved cash flow often outweighs the cost.

On the flip side, it’s important to enforce penalties for late payments. These don’t need to be excessive, but they should be enough to deter customers from dragging their feet. Clearly state in your payment terms that a late fee will be applied after a certain date, and follow through if needed.

Automate Your Invoicing Process

Automating the invoicing process not only saves time but also reduces the risk of mistakes. With automated invoicing, you can set reminders that notify customers when a payment is due or overdue, without needing to do it yourself. Automation can also help with tracking payments in real-time, giving you a clear view of outstanding invoices and their statuses.

Offer Multiple Payment Options

The easier you make it for customers to pay, the faster they’ll settle their invoices. Offer various payment methods, including online options like credit cards, bank transfers, and digital payment platforms. By giving your clients multiple ways to pay, you’re eliminating excuses and making it more convenient for them to settle up quickly.

Regular Communication

A friendly reminder a few days before an invoice is due can keep it top of mind for clients who may have forgotten. If a payment becomes overdue, a gentle but firm follow-up can help resolve the situation without straining the relationship. Regularly checking in can prevent this and ensure that everyone is on the same page.

Credit: Brooke Cagle

Advertisement

The Role of Digital Invoicing in Reducing Late Payments

In recent years, digital invoicing has emerged as a powerful tool for small businesses looking to manage their finances more efficiently. Invoices can be sent out automatically, reminders can be scheduled, and payment statuses can be tracked in real-time.

Digital platforms also integrate with payment gateways, enabling clients to pay directly from the invoice with just a few clicks. This streamlines the entire process, making it easier for clients to pay and easier for you to track the payments. The added benefit of having a clear digital paper trail can also be useful if any disputes arise.

Protecting Your Small Business From Financial Strain

Late payments don’t have to be a constant headache. By taking a proactive approach to your invoicing process, you can minimize the risk of delayed payments and keep your business’s finances healthy. The right invoicing system, paired with effective communication and a bit of structure, can safeguard your business and free you up to focus on growth, rather than chasing payments.

https://unsplash.com/photos/woman-sitting-on-brown-wooden-chair-while-using-silver-laptop-computer-in-room-WHWYBmtn3_0

Money Marketing’s Weekly Must-Reads: Top 10 Stories

Stay informed with our curated list of this week’s top 10 financial news stories, including Scottish Widows’ senior investment team appointments and a protest by victims outside the FCA headquarters.



Scottish Widows announces senior appointments to its investment team

Victims to stage protest outside FCA’s headquarters

Victims of financial misconduct and regulatory failures staged a protest on 26 September outside the Financial Conduct Authority (FCA) headquarters in London.

Organised by the Transparency Task Force, the “Rally for Better Financial Regulation” highlighted concerns about the FCA’s lack of accountability and transparency. Protesters called for reforms, including improved governance, a civil duty of care and the right to compensation for regulatory failures.

The rally coincided with the FCA’s Annual Public Meeting, where the regulator faced criticism over unresolved financial scandals.

FCA clears chair of whistleblowing misconduct following internal review

The FCA cleared its chair, Ashley Alder, of whistleblowing misconduct following an internal review.

Alder had faced criticism for revealing a whistleblower’s identity in emails to colleagues, breaching FCA policy. The whistleblower expressed outrage, calling it an “institutional betrayal.” The review, led by FCA director Richard Lloyd, acknowledged Alder did not fully follow protocol but acted reasonably by consulting senior staff.

Alder welcomed the findings, stating he aimed to address complex concerns raised by former employees appropriately.

Surge in people accessing pensions without advice

The number of pension plans accessed for the first time surged by 19.7% in 2023/24, reaching 885,455, according to FCA data.

However, only 30% of these were accessed with regulated advice, down from 32.9% the previous year. This decline raises concerns about people managing pension withdrawals without professional guidance, potentially affecting their long-term financial stability. Economic pressures, including the cost-of-living crisis, are driving more people to access their pensions.

The FCA and government aim to improve the pensions system through ongoing reviews and reforms.

Premier Miton hires ex-Quilter director as COO

Premier Miton has appointed Nicola Stronach as its new chief operating officer (COO). Stronach will oversee risk, operations, compliance, legal teams and regulatory relations.

She brings over 25 years of experience, having previously worked at Quilter, Credit Suisse, Old Mutual Global Investors and BNY Mellon. Stronach will play a key role in Premier Miton’s strategic direction, supporting UK distribution and international growth.

Premier Miton CEO Mike O’Shea praised her expertise, while Stronach expressed excitement about joining the firm during this pivotal period of expansion.

Annuity comparison quotes hit new highs in 2024

As government plans Budget tax raids, remember AIM is more than just an IHT play

Labour’s potential removal of inheritance tax (IHT) relief on AIM shares could raise £1.1bn this year, but it risks harming UK small and medium-sized companies that drive growth and innovation.

AIM has contributed over £135bn to the UK economy in 29 years, with notable companies like Jet2 and YouGov starting there. Removing IHT benefits may lead to declining share prices, hurting businesses and investors.

While AIM remains a strong long-term investment, careful planning is needed to mitigate potential tax impacts.

Firms need help to better identify vulnerable customers

Research by the Chartered Insurance Institute (CII) reveals many firms need help identifying vulnerable customers and complying with the FCA’s Consumer Duty reporting requirements.

The study, conducted with FWD Research, found that firms seek more guidance on vulnerability and reporting processes. The CII’s white paper offers recommendations, including integrating data into service improvements, fostering leadership interest in customer needs and enhancing understanding of vulnerability.

The CII aims to support firms in meeting regulatory standards and improving customer care.

Regulator keeps up momentum on ongoing advice services

The FCA is actively investigating ongoing advice services in financial firms. In February, the regulator contacted 20 major firms to express concerns over clients being charged for services after advice is provided.

FCA executive director Sarah Pritchard indicated that follow-up work is ongoing, but a timeline for conclusions remains unclear. Both St James’s Place and Quilter have reported setting aside funds for potential client refunds and remedial costs linked to these ongoing service evaluations.

The FCA will communicate its expectations once the review is complete.

Transact adopts electronic Cash Isa transfer service