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It’s time to save SSAS from extinction

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It's time to save SSAS from extinction

The venerable small self-administered scheme (SSAS) has been with us as a pensions option for well over 50 years now.

It was the true progenitor of self-investment in the pensions industry, leading the way to more opportunities for business people to save for later life.

Over the years, however, SSAS has become somewhat forgotten, particularly once Sipps exploded onto the scene in 1987. Sipps seized the centre stage of self-investment, though the Sipps of today look very different to those early schemes.

Decades of product development have brought the rise of the investment platform, which, although versatile and holding a vice-like grip on the majority of the Sipp market, doesn’t really encapsulate the true spirit of self-investment.

Many planners, perhaps even most, will have never dealt with a Ssas, let alone recommended its use

The challenge is that, alongside this relentless development of Sipps, the client and adviser demographics have also greatly changed. The old guard of pure advisers is slowly ebbing away and a new generation of planners are taking their place.

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Many planners, perhaps even most, will have never dealt with a Ssas, let alone recommended its use.

Is SSAS even relevant in today’s world of financial advice?

Yes, I say, absolutely – perhaps now more than ever.

The entrepreneurial self-investment capability still has a solid place within the advice sector, particularly to meet the practical needs of small and medium-sized enterprises – in other words, business-owning clients, who will be on virtually every planner’s books.

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Loanbacks – where the scheme lends up to 50% of the scheme value to the sponsoring employer – are highly attractive to business owners

One of the key roles SSAS can play is the opportunity to associate the client’s business as a sponsoring employer. This unlocks that wonderful SSAS specific feature: the loanback.

Loanbacks – where the scheme lends up to 50% of the scheme value to the sponsoring employer – are highly attractive to business owners. This gives access to low-cost funding that can generate business expansion.

There are, of course, rules, or tests, to ensure these loans are compliant with HM Revenue & Customs stipulations, though these are considerably less onerous than the typical lending process deployed by most institutional lenders.

When Sipps began to rule the roost of self-investment, up until around 2012 with RDR, and most certainly from 2016 onwards with the introduction of provider capital adequacy rules, they were the go-to option for anyone looking at non-retail investment solutions. One of the most popular avenues of that time was investment in private company shares.

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SSAS will be around for a long time yet. However, I acknowledge it isn’t as popular as the Sipp and has a much smaller target market

These non-standard investment solutions no longer exist in the Sipp world – we could even regard them as extinct.

With SSAS, however, many non-retail asset classes can still be chosen. Furthermore, even when rare Sipp-based private share investment proposals are available, SSAS and loanback can often combine to offer a robust alternative solution.

All sounds great, right? So, why my concern about SSAS extinction?

I believe SSAS will probably be around for a long time yet. However, I acknowledge it simply isn’t as popular as the Sipp and has a much smaller target market. And so, as those advisers familiar with SSAS head into retirement, it’s vital the next generation understand and embrace the product and its many unique capabilities.

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For me, it’s a perception thing – SSAS is indeed a ‘legacy’ product. Many of the new generation of advisers weren’t alive when it came into being. Amazingly, many weren’t even around for the advent of Sipps.

Let’s re-think, embrace and celebrate SSAS and the long future it clearly has ahead of it

Perhaps I am being unfair here, though it does feel at times like some people are conflating the legacy feel and age of SSAS with it being obsolete. Equally likely, it’s the perceived complexity of SSAS that’s an issue, particularly in contrast to the hyper-evolved offshoot of those first Sipps: the platform.

Ultimately, clients using SSAS are taking on a more involved role as trustees, with key decision-making responsibilities. Perhaps this alone creates a fear of things going awry.

Nevertheless, when we truly understand its capabilities, it’s hard to draw any conclusion other than, actually, SSAS is absolutely suitable for a segment of today’s clients. And with client outcomes at the heart of the decision-making process, the right solution should always trump other factors, like inherent bias.

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The key for the latest generation of advisers and planners is to ensure they obtain the right support structure from the provider they use for SSAS. This includes receiving technical guidance that removes complexity, along with gaining added confidence when recommending SSAS where suitable for client needs.

So let’s re-think, embrace and celebrate SSAS and the long future it clearly has ahead of it.

Matt Storey is head of business development at @sipp

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Five healthy ways to bulk out your batch meals to save you time and cash

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Five healthy ways to bulk out your batch meals to save you time and cash

BATCH cooking saves time and cash, plus can help you enjoy tastier and nutritious meals.

You can also make grub go further by adding cheaper foods to balance out pricier ingredients such as meat.

We have five healthy ways to bulk out your batch meals to save you time and cash

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We have five healthy ways to bulk out your batch meals to save you time and cashCredit: Getty

Here’s how to affordably bulk out your meals so you have more to save and freeze for another day.

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OATS: Typically seen as a breakfast meal, but a handful or two can be used to thicken almost any sauce and add substance.

Use fine- milled varieties or blitz in a processor to help them blend in. Packs can be found for less than £1.

PULSES: Packed with protein and nutrients, beans and pulses are an excellent way of adding variety to dinners without breaking the bank.

READ MORE MONEY SAVING TIPS

Kidney beans are often found in chilli con carne but you could add a tin of black beans too (49p at Tesco).

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Lentils work well with a cottage pie mix and chickpeas are excellent added to curries.

FRIDGE RAID: Many people follow recipes word for word, but often you can adapt to use up ingredients you already have.

Check your fridge for vegetables that can be added.

Tomatoes, broccoli, peppers and the like are incredibly versatile and work in many sauce-based dinners, helping to cut down on waste and increase the volume of your meal.

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FROZEN VEG: Stretch out meals and add nutrients by adding a couple of handfuls of frozen veg such as peas, sweetcorn or broad beans.

Savvy mum reveals how to batch-prep toast in the grill & her easy hack will make weekday mornings a breeze

Keeping these in the freezer ensures they won’t go bad before you use them and can be used in many dishes.

RICE: Add a couple of handfuls of rice to soup, casseroles and stew for a heartier and fuller meal with extra texture and minimal costs.

POTATOES: Chopped spuds are perfect for adding to curries and stews.

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You can par-boil or just make sure you cook sauces long enough to get your potato nice and fluffy.

  • All prices on page correct at time of going to press. Deals and offers subject to availability.

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JOIN thousands of readers taking part in The Sun Raffle.

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SNG secures £100m AIB funding to boost affordable homes pipeline

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SNG secures £100m AIB funding to boost affordable homes pipeline

SNG aims to develop 25,000 affordable homes over the next decade.

The post SNG secures £100m AIB funding to boost affordable homes pipeline appeared first on Property Week.

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Pair convicted over £1.5m crypto investment fraud

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Pair convicted over £1.5m crypto investment fraud

Two individuals have been convicted for their roles in a £1.5m investment fraud.

Raymondip Bedi, 35, and Patrick Mavanga, 40, pleaded guilty to fraud, money laundering and carrying out regulated activity without authorisation.

Mavanga also pleaded guilty to possession of false identification documents and perverting the course of justice.

The duo was part of a group that defrauded at least 65 investors out of £1,541,799.

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Between February 2017 and June 2019, the group cold-called consumers, directing them to a professional-looking website where they were offered high returns for fake investments in crypto.

The jury at Southwark Crown Court were unable to reach a verdict on a third defendant, and they will face a retrial in September 2025.

A fourth defendant, Rowena Bedi, was acquitted of money laundering. A further individual, Minas Filippidis, is wanted in relation to the same offences.

Bedi and Mavanga will be sentenced at a later date.

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The criminal proceeding was brought by the Financial Conduct Authority after the defendants were arrested last April.

The Financial Conduct Authority’s joint executive director of enforcement and market oversight, Steve Smart, said: “Bedi and Mavanga lured investors with promises of high returns on crypto investments, but their schemes were nothing but a callous scam.

“If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is. If you’re in any doubt – don’t invest.”

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Full list of drinks brands that have quietly cut alcohol strengths – which ones have you noticed?

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Major pub chain slashing price of beer at more than 900 pubs next week - how to get the discount and a free drink

A HOST of beers, ciders and wines have been quietly weakened – leaving shoppers demanding a return to their original strength.

Analysis by the Sun has uncovered a raft of booze sold in supermarkets which now have lower alcohol contents – most likely in response to hikes in booze duty by the Government. 

Some drinks have become more expensive, despite being weaker than before

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Some drinks have become more expensive, despite being weaker than before

In many cases the weakened drinks have also risen in price – a phenomenon known as “drinkflation”. 

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Bottles of Banks’s Amber Ale were changed from 3.8% to 3.4% in the middle of last year, while the price went up from 89p to £1 in Tesco.

One reviewer wrote on the Tesco website: “Been buying it for years but will stop now. I would also rather pay more for quality.

“There should be a petition to change it back to its original taste and abv.”

Read more on food and drink

A spokesman for the Carlsberg Marston’s Brewing Company Group, which makes Banks’ Ale, said its reduced ABV “supports moderation”, and argued the product still has “great taste and quality”.

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Meanwhile Compton Orchard Medium Dry Cider is now 4%, down from 5% last year.

Its manufacturers said the Government’s duty hikes had impacted the firm, but it added that customers also wanted lighter options now so it supplies a range of products with different strengths.

Wines have been impacted – with Sun Online previously revealing how mainstream brands including Blossom Hill and Hardys have lowered their ABVs following tax hikes.

Today we can expose further reductions. Taparoo Valley Australian Shiraz, sold by Tesco, was 14% in July 2022, at a cost of £3.99 for a 75cl bottle, but it has since fallen to 11%, with the same volume costing £4.15.

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One reviewer wrote: “This wine has steadily been reduced in alcohol % which has destroyed any value for money that it had . Thin and lacking in any varietal characteristics but what can you expect for the price?”

How to find the best bargains at the supermarket

Caparelli Italian Rose Blush 75Cl, also sold only in Tesco, has fallen from 12% to 11%, but increased from £4.29 to £5.50 in two years.

Meanwhile Tesco Green Ginger Wine has been reduced from 15% in 2022, when it was sold as fortified wine, to its current level of 11.5%. The price has also increased from £3.75 to £4.50.

Tesco said of the changes: “We work with our suppliers to ensure that our own-brand wines offer great taste and value for our customers.”

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The UK Government’s alcohol duty reforms introduced in August last year resulted in the biggest increases in booze duty in almost 50 years.

The duty paid on a bottle of still wine was pushed up by 20%, or 44p, based on an average alcohol strength of 12.5% ABV.

Wines that are 11% currently have a £2.35 duty imposed on each bottle, whereas any between 11.5% and 14.5% command a flat tax rate of £2.67. 

How much weaker have drinks become?

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Here we reveal the ABV before and after “drinkflation”.

  • Banks’s Amber Ale: 3.8% to 3.4%
  • Compton Orchard Medium Dry Cider: 5% to 4%
  • Taparoo Valley Australian Shiraz: 14% to 11%
  • Caparelli Italian Rose Blush: 12% to 11%
  • Tesco Green Ginger Wine: 15% to 11.5%
  • Carlsberg Danish Pilsner: 3.5% to 3.4%
  • Grolsch Premium Pilsner: 3.5% to 3.4%

For that reason many bottles were pushed down to 11%.

From February, duty rates will change again with a new system of taxation introduced to penalise higher strength drinks, and Labour has pushed through the change in last week’s Budget.

Under the new regime, the single amount of duty paid on wines between 11.5 and 14.5% ABV – £2.67 – will be replaced with increasingly higher payable amounts according to the strength of the wine.

That means a 75cl bottle of wine at 14.5% ABV will see wine duty increase from £2.67 per bottle to £3.21, based on a predicted RPI inflation rate of 3.65%.

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But for an 11% bottle the duty payable will be much less at £2.43, an enormous difference of 78p. 

The resulting array of weakened plonks have been dubbed “Rishi wines”, after the former Prime Minister who championed the reforms.

UN-BEER-LIEVABLE

Booze producers are also being incentivised to produce lower strength beers, with 3.4% bevvies falling into a lower tax bracket than 3.5% ones.

As a result Carlsberg Danish Pilsner, Grolsch Premium Pilsner and – as revealed today – Banks’ Amber Ale have been reduced to 3.4%. 

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Currently beer with a strength between 1.3% and 3.4% have a duty of £9.27 for each litre of pure alcohol, whereas beer with an alcohol strength of 3.5% to 8.4% carries a duty of £21.01 for each pure litre of alcohol.

The duty payable on each of these brackets are set to rise by inflation (around 3.65%) in February.

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

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Urban Logistics reveals first-half dip in asset values

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Urban Logistics reveals first-half dip in asset values

Net asset value came in at £748.4m, down from £758.6m at the end of March, while rental income stood at £30.6m, up from £28.7m a year earlier.

The post Urban Logistics reveals first-half dip in asset values appeared first on Property Week.

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Massive NIC Hike Threatens Higher Consumer Prices: Retail and Hospitality Brace for Impact – Finance Monthly

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What is the Average Credit Score in the UK

In the recent Autumn Budget, Chancellor Rachel Reeves announced a significant increase in employer National Insurance Contributions (NICs), raising the rate from 13.8% to 15% and lowering the threshold at which employers start paying NICs from £9,100 to £5,000 per year. Set to take effect from April 2025, this dramatic NIC increase is expected to generate around £25 billion annually for the Treasury but could also lead to higher consumer prices as businesses in labour-intensive sectors like retail and hospitality brace for the financial impact.

Related:Labour’s Tax Bombshell Leaves Brits £300 Poorer: Record-Breaking Tax Burden Slams Wages, Soars Inflation, and Pummels UK Businesses

The rise in employer NICs has sent shockwaves through sectors heavily reliant on large workforces. Industry leaders warn that this added burden could force businesses to pass on increased costs to consumers, compounding the cost-of-living crisis.

Hospitality Sector Response to Employer NIC Increase

Tim Martin, chairman of JD Wetherspoon, has highlighted that the NIC hike will add an estimated £60 million to the company’s annual costs. He warned that such a significant financial impact would likely lead to price increases for customers, mirroring the broader concerns expressed by many hospitality businesses already grappling with economic pressures.

Retail Sector Impact: M&S, Sainsbury’s, and Primark React

Marks & Spencer (M&S) projects annual costs rising by £180 million due to the NIC increase combined with other recent budget measures, such as a minimum wage hike. While M&S aims to absorb some costs, they have warned that consumers will likely see higher prices.

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Sainsbury’s, one of the UK’s largest supermarket chains, echoed similar concerns, indicating that the NIC hike will lead to unavoidable cost increases. To offset these additional expenses, Sainsbury’s may need to raise prices on goods and services, which will directly impact shoppers.

Primark has voiced similar challenges, noting that while it strives to avoid price hikes, the NIC increase and mounting financial pressures mean redirecting investment to key growth areas. Primark’s approach underlines the strain the NIC rise places on even the largest retail players.

Economic Consequences of NIC Hike and Consumer Costs

The increase in employer NICs, while intended to bolster public services, raises serious concerns about inflation and higher consumer prices. Businesses across the hospitality and retail sectors warn of potentially severe economic implications, including job cuts, reduced growth, and increased costs for everyday goods and services.

How Consumers Can Prepare for Price Increases

As companies grapple with the financial impact of the NIC hike, consumers can take practical steps to mitigate higher costs:

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Review Your Budget: Adjust monthly budgets to accommodate potential price increases in essential goods and services.

Utilise Discounts and Loyalty Schemes: Seek out special offers, promotions, and loyalty programs to maximize savings at supermarkets and retail stores.

Compare Prices: Use apps and websites to compare prices and find the best deals.

Bulk Buying: Purchase non-perishable items in bulk to take advantage of lower per-unit costs.

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Explore Alternatives: Consider substitute products or lower-cost brands without compromising on value.

Dine In More: Reduce dining-out expenses by preparing meals at home to save on hospitality-related costs.

Cashback and Rewards: Use cashback programs and credit card rewards to minimise the impact of rising prices.

Related:Cheapest UK supermarket to shop in 2024

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FAQ: Understanding the Impact of the NIC Increase on Prices

What is the new employer NIC rate?
The rate has been increased from 13.8% to 15%, starting from April 2025.

Why is the NIC rate rising?
The increase aims to raise additional revenue for public services but poses challenges for businesses and could lead to higher consumer costs.

Which sectors are most affected?
Retail and hospitality, which rely on large workforces, are particularly impacted, with companies like JD Wetherspoon, Marks & Spencer, Sainsbury’s, and Primark voicing concerns.

Will consumer prices rise?
Many businesses anticipate that the added NIC costs will lead to higher prices for consumers, though the extent may vary by sector.

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How can consumers cope with higher costs?
Consumers can budget carefully, shop for deals, use loyalty programs, and consider alternative products to manage rising expenses.

The Verdict: A Difficult Balancing Act for Businesses and Consumers

The rise in employer NICs presents a formidable challenge for businesses, especially in labour-heavy sectors like retail and hospitality. While companies such as JD Wetherspoon, Marks & Spencer, Sainsbury’s, and Primark explore ways to absorb costs, passing some of the burden onto consumers seems inevitable. As these changes approach consumers must prepare for a shifting economic landscape, with increased prices and new financial strategies to cope.

 

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