Money
Ugly side of fashion giant Shein revealed as retailer slammed by rivals for ‘unfair tactics’ to keep prices low
IT is the world’s largest fashion retailer, which has been endorsed by Khloe Kardashian and Katy Perry.
Chinese online juggernaut Shein launched 12 years ago, yet it is tipped for a historic and controversial £50billion float on the London Stock Exchange as early as this autumn — the biggest in more than a decade.
Britain’s addiction to the ultra-low cost clothing means an estimated 520,000 items are shipped a day to Brits.
Today a Sun on Sunday probe reveals how Shein, which had sales of £1.55billion in 2023 yet operates with just 33 staff in its UK arm, has been accused of exploiting a tax loophole.
According to latest figures from Companies House, the fashion giant’s pre-tax profits doubled year on year to £24.2million and it paid £5.7million in taxes, up from £2.3million the previous year.
Now rivals have slammed Shein for using “unfair” tactics to keep its prices at rock bottom, while being able to fork out on glossy adverts around the country and on the London Tube network, which carries five million passengers a day.
Shein uses the so-called “de minimis” rule, which allows shipments of less than £135 to be exempt from import duties.
Last night, one chief executive told the Sun on Sunday that the loophole was “a wheeze that saves Shein millions of pounds”.
He said: “It’s an unfair playing field — of course it is. We all have to pay duties to ship clothes to customers here. But because their shipments are individually packed, they don’t?
“At a time when the Government can’t stop talking about this £22billion hole it needs to plug, why doesn’t Chancellor Rachel Reeves go after some of these big players that are obviously not paying the right amount of tax and duties?”
Superdry founder and CEO Julian Dunkerton has previously said it would be in the UK’s interests to get rid of the loophole.
Boohoo CEO John Lyttle has also urged the Government to close it.
Last month, US President Joe Biden announced he was closing a similar loophole, which allowed imports of individual packages of up to £600, ramping up pressure for change in the UK too.
Tax expert Dan Neidle says that Shein is avoiding tax of eight per cent on footwear and 12 per cent on clothing.
This amounts to an average saving of ten per cent — as much as £155million — that the company does not have to pay in tax.
Chinese company Super Smart Service processes Shein’s UK orders, with clothes costing on average £7.90, along with other companies including Amazon and eBay from a warehouse in Cannock, Staffordshire.
Super Smart Service’s turnover has more than doubled from £23.4million in 2020 to £56million in 2023 — and its profits have also doubled from £3.5million to £7.3million over the same period.
By using this third-party logistics partner, Shein can ship directly to customers in the UK.
Multi-billionaire
It also means items are not held as stock in warehouses here, which avoids storage costs — driving down prices even further.
The company, which has switched its headquarters to Singapore to reduce the Chinese government’s influence, is only considering listing in the UK after it was told it was not welcome on the New York stock exchange.
Shein has offices in Westminster, in a building that was once the headquarters of MI6.
There is also an office in Manchester — the same city that is home to rivals Boohoo, PrettyLittleThing as well as Missguided, which Shein acquired last year.
Shein was founded in 2012 by Sky Xu, also known as Xu Yangtian, who is already a multi-billionaire at the age of 40.
The mysterious boss, who largely keeps a low profile, reportedly flies so under the radar that employees joke they do not recognise him at the office.
At a time when the Government can’t stop talking about this £22billion hole it needs to plug, why doesn’t Chancellor Rachel Reeves go after some of these big players that are obviously not paying the right amount of tax and duties?
Sun source
He was born in Zibo, a manufacturing city in China’s Shandong province, where his parents were workers in state-owned factories.
He went on to study international trade at Qingdao University of Science and Technology.
One person who worked with him described him as bespectacled, “shy” and a lover of golf.
He shook up the supply process by ditching the traditional method of exporting abroad.
The company, which staged celebrity-packed fundraising virtual festivals during Covid, has tech wizards who use complex algorithms to scour trends from Google, social media and online shoppers to work out what will be a fashion hit.
Clothes are then made in hundreds of factories in Panyu, a district in Guangzhou, southern China, which the retailer dominates so much the hub is called Shein Village.
Around 80 per cent of the 7,000 factories in the town work for Shein. Restaurants now serve dishes from all over China to armies of migrant workers.
The company’s own website claims it has 10,000 employees worldwide and sells to over 150 countries.
Instead of making large long-term orders with factories, Shein uses “low-batch ordering,” which means it will get a factory to make 100 items and only increase volumes if it sells well.
The Chinese goods are shipped to Guangzhou Airport using low-cost postal service China Post and sent to the Midlands.
Initially, factories did not want to work with the online retailer.
But when a product goes viral they can hit the jackpot by churning out hundreds of thousands of the same piece.
One factory manager said: “When Shein first arrived, no one wanted to work with them because the orders were too small. By 2020, everyone was working with Shein because their orders were so big.”
Its own website says “customers will receive orders via our UK Courier partners and not need to deal with any custom affairs”.
When Shein first arrived, no one wanted to work with them because the orders were too small. By 2020, everyone was working with Shein because their orders were so big
Factory manager
As well as the tax loophole, Shein has faced controversies including accusations by Stop Uyghur Genocide, which claims there is forced labour in its supply chain. The charity says Shein should be barred from listing on the London Stock Exchange.
In its 2023 Sustainability and Social Impact Report, Shein admitted two cases of child labour and temporarily suspended orders from the suppliers involved. It did not resume business until the suppliers tackled the issue.
It also admitted its carbon emmisions increased by 81 per cent between 2022 and 2023. Shein insisted it has a “zero tolerance” approach to worker mistreatment.
Liam Byrne, chairman of the Business and Trade committee, said: “We can’t allow British business and consumers to be undercut or cheated in a race to the bottom on standards, especially when there are questions about whether forced labour is being used.
“That’s why I’d like to see our new government make good on the promise made, but never delivered, by Conservatives in the 2022 Queen’s Speech, to strengthen the modern slavery act and toughen up requirements on supply chain reporting.”
Alice Price, of GlobalData, said Shein’s low-cost model and response to demand meant it can steal customers from British firms.
She said: “Shein’s burgeoning influence over the UK market is attributed to its unbeatable prices, and its rapid ability to churn out the latest micro trends on a colossal scale. This has allowed it to become a firm favourite among younger shoppers, and steal share away from other online specialists like ASOS and boohoo.com.”
Shein has previously said it complies fully with all its UK tax liabilities.
The company told the Sun on Sunday: “Shein’s success comes from our ability to produce fashionable products. We keep prices affordable through our on-demand business model and flexible supply chain. This reduces inefficiency, takes out wastage of material, and lowers our unsold inventory.
“We pass this advantage to our customers and this has driven our success around the world, not the exemptions that retailers receive under current tax regimes. We will work with policy makers and industry peers to review frameworks.”
HURT TO BRITISH FIRMS
FIVE years ago, most people didn’t know how to pronounce Shein.
Even senior retail bosses would say: “Have you heard of this new Shine?”
Their ignorance did not last long, as they watched customers desert them for an upstart that was doing everything faster and cheaper.
Shein, pronounced She-in after its odd original name She Inside, is now firmly in the spotlight.
It used to be just young shoppers posting their “Shein hauls” of cheap bodycon dresses on TikTok and Instagram. But now the name is on the lips of those in Westminster and the City, as it works on a stock market listing in London.
To boost its British credibility it is now surrounded by an army of highly paid advisers. The company, which has switched its headquarters to Singapore to lessen Chinese government influence, is only considering listing in the UK after it was told it was not welcome on the New York stock exchanges.
Chancellor Rachel Reeves wants to encourage international investment into Britain and stimulate a sluggish London stock market.
But Labour’s Liam Byrne MP, who sits as chairman on the Business Trade Committee, raised concerns about treatment of workers across Shein’s supply chain, not least the opaque world of subcontracting across Chinese workshops.
Then there is the tax loophole of Shein skipping import duties by sending small parcels directly to customers from Chinese factories. The US is clamping down on this and the EU will soon follow.
The high street is facing increasing rates to keep shops open and our online retailers are suffering, partly due to rising competition from Shein.
It seems ridiculous the Government would throw its arms around a business unfairly hurting British firms.
The loophole needs to be closed before a London listing happens.
Money
Five simple ways to save on the cost of traditional roast dinner
DON’T be put off by the price of cooking a roast dinner.
There are lots of ways to carve off a juicy saving.
Enjoy the traditional British meal for less with these money-saving tips . . .
SLOWLY DOES IT: Slow cookers cost just pennies to run and are perfect for cheaper cuts of meat such as beef brisket or pork shoulder.
Seal the meat in a frying pan, add to the slow cooker with some veg and stock and then just leave to bubble gently for the day.
MEAT TREAT: When it comes to choosing your roasting joint, a large chicken usually works out the best value, followed by pork.
READ MORE MONEY SAVING TIPS
Look at the price per kilo in order to work out which will give you the most meat for the least money.
A roast can also work out much cheaper than buying individual cuts.
An extra-large chicken is currently £5.25 with a Tesco Clubcard, which is £2.76 a kilo, while if you buy a pack of chicken breasts they work out at least £5.79 per kilo.
AIR TIME: Cook your roast potatoes in an air-fryer, if you have one.
They’ll cook even more quickly, using less energy, if cut up small.
Parboil then spray with oil before cooking to perfection in under 30 minutes.
NICE AND FREEZY: Keep bags of frozen vegetables in the freezer for cheap and easy side dishes.
Have a bag of cauliflower or broccoli on ice for a tasty gratin with cheese sauce, along with frozen peas and sweetcorn.
If you want to cook from fresh, carrots and cabbage are the best value.
LOVELY LEFTOVER: A roast dinner keeps on giving.
Use leftover meat in stir-fries or Mexican-style wraps.
Fry uneaten potatoes and veg for bubble and squeak or a tasty hash.
Add some chilli sauce and an egg for a whole new meal.
Turn chicken bones and scraps into stock and soup.
- All prices on page correct at time of going to press. Deals and offers subject to availability.
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Money
Three rare coins that could be worth £130,000 – including 1p that could make you ‘retire early’
WHAT could be mistaken as pocket change might actually be worth a whopping £130k.
These three rare coins are a collectors dream and might be hiding down the back of your sofa.
Coin Collector UK is a rare coin guru who has put together a list of the three pieces of change that would upgrade your entire life.
In one of his TikTok videos he said: “You can take an early retirement if you find these coins.”
The 1933 penny coin
The first of the three is the highly sought after 1933 penny coin in which collectors are desperate to get their hands on.
He added: “One of these old pennies sold at auction for £127,000.
“The year you need to find is 1933 – less than 10 of these were ever produced.
“These are worth huge money with one selling for well over £100,000 pounds and another for about £86,000.”
While there are other dates to look out for, there are only seven 1933 coins known to exist.
It was once for a staggering £140k and the collector predicts the next one to be found could be sold for even more.
You would be able to trade it for a supercar if you manage to spot one of these coins.
The Olympic Aquatics coin
The next rare find is the The Olympic Aquatics coin which can reach up to £2,000 due to its printing error.
There are thought to be 600 pieces of these 50p coins misprinted in 2011 ahead of the London celebrations with each being worth more than just a pretty penny.
These coins were printed with lines, mimicking water ripples, over the swimmers‘ head whereas her face was originally designed to be more visible.
The image was quickly changed when the Royal Mint modified the design, leaving only a few of these original coins in circulation.
This slight distortion has collectors battling over the limited edition piece, with one of the highest bidder spending £3,766 to take the precious coin home.
The Lord Kitchener £2 coin
The final one is the most recently printed coin and its details are what makes so valuable.
It is a £2 coin from 2014 featuring Lord Kitchener – a British military leader.
He is easily recognised pointing in the military recruitment posters stating “Your country needs you.”
These coins can fetch up £800 – but only if it has this specific printing error.
Only a few of these have been found and one TikTok user called @thecoincollectoruk revealed what to look for.
In a TikTok video he stated: “If you find this £2 coin check it for an extremely rare error.
“The coin must lack the inscription “two pounds” on the Queen’s side, otherwise it’s just a regular £2 coin.”
Apparently there are over 5,700,000 of the regular £2 but only a handful of the misprinted ones.
What are the most rare and valuable coins?
Money
From pet rats to an itchy dog – your pet queries answered
HE is on a mission to help our pets . . . and is here to answer YOUR questions.
Sean, who is the head vet at tailored pet food firm tails.com, has helped with owners’ queries for ten years.
He says: “If your pet is acting funny or is under the weather, or you want to know about nutrition or exercise, just ask. I can help keep pets happy and healthy.”
Q) MY children Emma and Lila want some pet rats, and are aged seven and eight. Is that too young?
LIZZIE HORTON, Reading, Berks
Sean says: Borderline in age, I would say, so it depends on their level of enthusiasm, responsibility and ability to gently care for their pets.
Rats make the most fantastic pets, being very intelligent, clean and just so interactive.
Your girls can even teach them tricks.
They are the pet dogs of the rodent world, for sure. Maybe find someone locally who has a pet rat then go and handle it and learn more about its care.
You’ll have a better idea then if your girls are ready for this.
But good luck saying no to them after they fall in love with the idea of a pet rat.
Q) MY dog has really bad allergies. Vera is a Dalmation and gets so bothered by her constant itches.
It affects her paws and stomach and is awful.
We use Apoquel and Piriton but they are both so expensive. Could I use any other over-the-counter antihistamine, do you think?
BEN THOMAS, Crawley
Sean says: Sorry to hear this. Unfortunately, antihistamines don’t always work very well with dogs — some are better than others and it depends on the individual dog.
Some over-the-counter options may have only a mild effect on itchiness, and some human antihistamines are dangerous for your dog.
Please speak with your vet about your options here, being honest that you are finding it hard financially to keep on top of Vera’s medication bill.
We can usually offer alternatives.
But bear in mind that itchy dogs can be just as frustrating for us vets, to get to the bottom of.
It’s not always a quick fix. Sometimes it can be best in the long run to try to find out what a dog is allergic to, and try to reduce or at least minimise exposure if at all possible.
Q) I WORRY that my cat doesn’t drink enough.
Pepper has had a couple of urinary infections in the past year. Do you think it’s worth trying running water rather than a bowl?
MIA EDWARDS, Bromley
Sean says: Yes, for cats that have a history of kidney or bladder issues, and those that don’t drink much, it’s always a good idea to invest in a cat water fountain.
Cats are funny creatures in their drinking habits sometimes, but running water does encourage them to keep up their water intake and support healthy kidney function.
Getting some wet food into Pepper’s diet will also help to improve her hydration situation.
Q) HOW do you know what sex your tortoise is?
I have an 80-year-old who we thought was a male. Then a vet surprised us and said they think it’s a female.
We don’t know for sure. Is there a definitive way of telling the sex of a tortoise? Ours is called Speedy.
KAREN HARRIS, Sudbury, Suffolk
Sean says: It depends a little bit on species, as there is so much variation.
But the general rule is that males have a longer tail, which is thicker at the base for housing their “equipment”, whereas females have a shorter, thinner tail.
Males also often have a concave plastron, which is the underside of the shell. The female’s plastron, or belly, is flat.
The concave or curved plastron in male tortoises allows them to fit more comfortably on top of the female when they are having “adult tortoise piggy back rides”, if you catch my drift.
Star of the week
MINIATURE dachshund Pip may have been a pocket-sized pooch – but also gave a gigantic amount of love until he died last week.
Adored by Romy Turnbull, 11, her younger brother George, 6, and mum Helen, the 13-year-old pup filled their lives with joy.
Pip had a huge character and when he wasn’t chasing balls while on walks with Romy he loved devouring his favourite treat of chicken.
He was even allowed to sleep on Romy’s bed at night.
Their father Dominic, from Hertfordshire, said: “Pip was adored by Romy and George, and he was a mischievous fixture of family life from his arrival as a tiny, fearful pup.
“Farewell loyal friend – and thank you for a full life and the love you brought to us all.”
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Terms and conditions apply.
It’s good to talk… and walk the dog
WE’RE a nation of dog borrowers, according to a study which says one in eight of us take other people’s mutts for walkies.
More and more non-owners beg pals for a mood-boosting loan of man’s best friend, says pet-sitting and walking service Rover.com.
Dog ownership has gone from around 11 million to 13 million in the last four years.
A Rover.com spokesman says: “Our research showed that the mental health of dog owners was much improved after getting a dog.
“It can help us stay active, eases loneliness and gives us a reason to smile and laugh every day.
“But those who don’t have their own dog are still finding ways to enjoy the benefits, with 49 per cent saying just being around dogs – even if not their own – improves their mood.”
Claire Bowman, 33, of Tonbridge, Kent is desperate for a dog and her landlord won’t allow it.
But nurse Claire says: “I take my friend’s sausage dog Chucky out for a walk twice a week.
“As soon as I see him, he runs over to me and starts licking me, so I’m smiling from the moment I see him until I hand him back.”
Money
October Budget could see A THIRD of Brit businesses activate ‘exit plans’ thanks to major tax change
A THIRD of British businesses are working on “exit plans” ahead of the October Budget’s rumoured tax shakeup, a survey of executives have found.
Bosses are “fast-tracking” their preparations to try and reduce the impact of a “painful” rate hike.
Chancellor Rachel Reeves will rise to the dispatch box on October 30, seeking to fill what ministers have called a £22 billion “black hole” in the books.
Labour has repeatedly promised not to increase the main rates of income tax, national insurance and VAT and has limited any rises in corporation tax to no higher than 25%.
As a result, ministers are looking around for other ways to raise the cash necessary to plug the “black hole”.
It has been rumoured that Ms Reeves could seek to equalise capital gains tax (CGT) with income tax as part of the Treasury’s efforts to right the financial ship,
This could see businesses handing as much as 45% of their profits in capital transactions to the Exchequer.
What is capital gains tax and who pays it?
By Jacob Jaffa
Capital gains tax (CGT) is raised on the profits derived from the sale of assets.
It is separated from income tax, which is charged on earnings paid out in return for work.
CGT applies to the sale of any personal possession worth over £6,000 (apart from vehicles) and any shares or business assets.
A version of the tax also applies to certain properties with the sale of any second home and, in some cases, your main home subject to the charge.
There is also an allowance of £3,000 on anything that is not a personal belonging (e.g. shares) and £1,500 for trusts.
It is currently charged at a basic rate of 10%, which rises to 18% when dealing with property.
However, if you pay the higher rate of income tax, this jumps to 20% and 24% respectively.
Likewise, if the sale value of your asset is above the basic income tax threshold (currently £50,270) you will be charged the higher rates on the amount you go over by.
The rate is currently just 10% for most deals, rising to 18% on the sale of residential property.
Senior Labour figures have long pushed for equalisation, arguing that capital gains are just like any other form of income and should be taxed accordingly.
But critics maintain that such a move would disincentivise investment, drive down productivity and put the handbrake on economic growth.
A new study from wealth management company Evelyn Partners suggests that almost a third of entrepreneurs in the UK are now working on “exit plans” – up 6% from 18 months ago.
This would involve businesses selling off as many assets as possible before the Budget in order to benefit from the lower rate before the tax is potentially hiked.
Around a quarter of those asked said they had accelerated their plans to pull out of solid assets thanks to worries over CGT.
And a fifth said they had done the same due to concerns of potential cuts to inheritance tax relief.
Laura Hayward, of Evelyn Partners, said: “As opinion polls increasingly suggested a change in government and the consequential potential for tax changes was becoming more likely, an increasing number of business owners have got in touch with us to have conversations about business exits.
“The business environment for many owners has already been tough enough in recent years as they have worked hard to rebuild their businesses after the pandemic, against a backdrop of cost-of-living pressures and high inflation.
“Add to that the potential for unfavourable tax changes in the upcoming Budget and it’s completely understandable that some are hoping to realise the gains of their successes sooner rather than later.”
It comes after The Sun exclusively revealed that Ms Reeve’s top aide had hinted at higher eco-taxes being announced in the Budget.
There was also public outcry over the expected decision to reverse a 2022 cut in fuel duty, despite the Government’s pledge not to raise taxes on “working people”.
Money
Shoppers are running to Home Bargains to grab Christmas-themed gift for £1.99 and it’s perfect for kids’ Xmas Eve Boxes
HOME Bargains shoppers are racing to the store to get their hands on this family-friendly Christmas stocking filler.
For a single coin you could grab this creative collection that will keep the kids entertained for hours.
The Grinchmas Activity Pack includes a colouring book, activity book, write-your-own-story book, stickers and mini coloured pencils.
This bountiful bundle is on the shelves for only £1.99.
With of the activity booklets stating they contain over 30 pages each, it’s difficult to agree with the infamous antihero about hating Christmas.
The deal has has had savvy shoppers taking to social media to share the bargain with friends and posting it on saver pages.
Amongst the comments, one user tagged her friend in the post and wrote: “If you see these can you grab one?”
It’s no wonder because the exact same activity pack is for sale on eBay for £9.50 – nearly five times the price.
Even at notoriously low-priced discount store The Works, activity packs are still marked around a five to ten pounds.
With the price of Fineliners being sold at a whopping £16.50 at Tesco and coloured Sharpies marked at an eye-watering £20 at Argos, if you want to get creative perhaps Home Bargains is your best bet.
For those keen to get in the Grinchmas spirit, the activity pack isn’t the only deal that will make you green with envy.
If you want to set a Christmas day precedent, you can grab a Grinch themed doormat for £2.49 stating “I’m only here for the presents!”
You can also grab a Grinch Gingerbread Mug Hugger for £1.79 to pep up your Christmas latte.
If you’re a Grinch superfan, on the Home Bargain website there is a total of 47 Grinch-themed items ready to fill the stockings for the entire family.
These range from to The Grinch Snuggle cushion to The Grinch Dog Dental Treats
How to save money at Home Bargains
The key to nabbing the best deals at Home Bargains isn’t where to look but when.
If you manage to hit the right timing you can spot deals for as little at 69p.
Keeping an eye on the Home Bargains website will tell which offers are set to drop – like this year’s Halloween specials.
This type of seasonal stock is often offered at a reasonable price but especially afterwards.
Big price drops will happen after big public holidays like Easter and Christmas, so you can bag a bargain at a fraction of the price at these times.
Top tips to nab the best shopping bargains
Finding deals and offers can be tricky if you don’t know where to look.
Here’s a list of hacks you can use to become a bargain-hunting pro and save on your shopping bill:
Join Facebook groups – Extreme Couponing and Bargains UK, Latest Deals and Reduce Your Supermarket Spend are all Facebook groups helping you reduce your spending and find good deals
Get following – Follow your favourite shops on Twitter, Facebook and Instagram and sign up to its newsletters to get the latest on any offers
Check hotukdeals – The deal-sharing website lists offers as they’re spotted by savvy shoppers
Use barcode scanners – Retailers such as B&M let shoppers scan the barcodes on its app to see if it’s cheaper than the price listed on the shelf
Money
Join your Neighbourhood Watch, prune your trees & 10 other ways to beat rising house insurance prices
HOME insurance costs are rocketing.
This is due to soaring inflation, and the costs of repairs after a wave of storms last year.
Money rights expert Martyn James says: “Premiums have been rocketing and it’s important to have cover in place in case the worst happens, but with a few simple tricks you can lower the cost while still keeping your property and belongings protected.”
Laura Miller explains how savvy tricks can cut the cost of cover . . .
THE average home insurance quote rose by almost 28 per cent in the year to the end of July.
That is the shock revelation of the latest Consumer Intelligence Home Insurance Price Index.
READ MORE ON HOME INSURANCE
Combined buildings-and-contents premiums paid by customers have climbed to on average £375 a year, and buildings-only cover to £298 while contents-only cover has stayed at £132, the Association of British Insurers (ABI) reports.
All regions have seen quotes soar, from a 34-per-cent jump in London to 22 per cent in the West Midlands, data analysts Consumer Intelligence say.
Inflation, and 2023 being the busiest year on record for weather-related home insurance claims, are to blame, says ABI.
Storms Babet, Ciaran and Debi in the final three months of last year caused £352million of damage to homes.
Homeowners now looking for buildings and contents insurance on a budget should shop around for the best deal.
But if you still feel priced out, these tips can help cut the cost . . .
DON’T OVERESTIMATE
THIS often happens with buildings insurance.
Many homeowners make the mistake of insuring their property for its market value, rather than the rebuild cost, and end up paying over the odds for their premium,” says Anna McEntee, insurance expert at Compare the Market.
The ABI rebuild calculator at abi.bcis.co.uk can help.
Equally, when you take out contents insurance, be as accurate as you can — if you overestimate, you’ll pay too much.
Aviva’s free home contents value calculator, at aviva.co.uk, can help you estimate the cover you’re likely to need, based on what you own.
GET A COMBINED POLICY
“IF you get a combined buildings- and-contents policy, the insurer might give you a discount,” says McEntee.
It’s worth doing research and getting quotes for both individual and combined policies to see how they compare.
DON’T DOUBLE UP ON COVER
MAYBE your bank account includes mobile phone cover? Perhaps you took out insurance on your tablet or laptop when you bought them, or have a gadget insurance policy?
If you find yourself with separate policies covering the same thing, you could save by cancelling the duplicate cover.
JOIN A NEIGHBOURHOOD WATCH SCHEME
SOME insurance providers offer discounts for members of these schemes.
“This is because you’re taking active steps to reduce the likelihood of needing to make an insurance claim,” says McEntee.
KEEP AN EYE ON TALL TREES
WHY on earth might this be? Because tall trees around your home increase the risk of its foundations becoming unstable or your roof getting damaged.
It’s a good idea to make sure trees are regularly pruned. You should expect to pay from £100 to £150 for pruning a small tree and something like £500 for a larger one, says trade website My Local Toolbox.
The average premium paid for a home insurance policy where a falling tree was listed as the only previous claim was £357, compared with £183 where there were no previous claims, says price comparison site Go Compare.
CHECK YOUR HOME’S FLOOD RISK
YOU can find this out from the Environment Agency.
Garin Cole, home product manager at Aviva, says: “If your home is at risk, ask your insurer if they are part of the Flood Re scheme, which was set up to help homeowners in high-risk areas to access flood insurance.”
BOOST YOUR HOME’S SECURITY
CONSIDER adding high-quality locks to your doors and windows and installing a burglar alarm.
McEntee advises: “If you have approved security and safety systems in place, your insurance provider might consider lowering your premium.”
Among 11 common home security brands reviewed by data analysis site CrimeRate in 2024, the price range runs from £120 for DIY bell-only home alarms up to £1,139 for fully equipped smart security systems with professional installation.
AVOID PAYING IN INSTALMENTS
PAYING your premium up front, in one go, usually cuts the cost of home insurance. If you opt to pay in monthly instalments, you might be charged interest on top.
INCREASE YOUR EXCESS
“IF you’re willing to raise the amount that you contribute towards a claim, the excess, you’ll usually pay a lower premium,” advises McEntee.
BUILD UP A NO-CLAIMS DISCOUNT
IF you don’t claim on your home insurance, you could be rewarded with a discount on your next premium. The longer you go without claiming, the more you can save.
McEntee advises: “You’re likely to be able to carry over the discount if you switch to another insurance provider, so make sure to include this when looking for a quote.”
CONSIDER A MULTI-YEAR FIXED DEAL
WHILE loyalty doesn’t always pay, and it helps to shop around for the best deals each year, if you prefer a bit of stability consider a multi-year fixed-rate deal, suggests Pete Mugleston, mortgage expert at Online Mortgage Advisor.
He says: “This can protect you from price hikes for the duration of your policy.”
DO A COMPARISON
FIFTY one per cent of customers could have achieved a saving of £225 on their buildings and contents insurance through Compare the Market, based on independent research by Consumer Intelligence during June 2024, so it is always well worth checking out what comparison sites offer.
TAXMAN CLOBBERS ELDERLY
TENS of thousands of OAPs are set to get tax demands this year for the first time since they retired.
A freedom of information request by LCP Partners revealed nearly 700,000 have been asked by HMRC to pay tax on their pensions. This was an increase of over 120,000 people compared with two years earlier.
One reason given for the rise is the year-on-year freeze in the value of tax-free personal allowance, coupled with a steady increase in the value of the state pension.
The personal allowance threshold, which is the salary point at which people start paying tax, has been frozen at £12,570 since April 2021.
Steve Webb, partner at pension consultants LCP and former Pensions Minster, told The Sun the “long-term freeze” of the personal allowance could be financially damaging for pensioners.
He said: “Although an average bill of £665 may not sound very large, it could be the equivalent of about three weeks’ pension, and a pensioner whose income is only just above the tax threshold may not have such a sum readily available”.
He predicts the number of retirees getting tax demands could rise further over the coming years due to the pensions triple lock – which means the payment rises every April by the highest out of inflation, the average UK wage increase or 2.5 per cent.
Markets still do not know what the pension rise will be but inflation figures released next week should give an indication.
MORTGAGE RATES ARE UP
BORROWERS could face a surge in mortgage costs as some lenders increase rates and withdraw their cheapest deals.
Coventry Building Society, Co-operative Bank, Molo, and LiveMore have all either raised rates or pulled their best fixed-rate offers from the market.
Prior to these latest changes, Coventry offered a 3.69 per cent five-year fixed-rate mortgage, one of the lowest rates on the market.
Interest rates on home loans had been on a downward trend with many homeowners and buyers expecting further reductions in the coming months.
However, David Hollingworth, Associate Director at L&C Mortgages, warns: “Fixed rate pricing depends on market expectations for interest rates, and current uncertainty over the forthcoming Budget, mixed messages from the Bank of England, and global unrest are pushing costs back up.”
Swap rates, which indicate market expectations for future interest rates, have been rising. These directly impact the cost of fixed-rate mortgages and lenders will look to increase their rates so that they don’t lose out.
The two-year swap rate was 4.06 per cent as of October 7, while the five-year swap rate was 3.81 per cent, according to Chatham Financial. In September, the respective rates were 3.91 per cent and 3.56 per cent.
Swap rates will remain uncertain until the BofE decides whether to cut interest rates from 5 per cent on November 7.
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