In a world of constant tax policy changes, I find myself inundated with queries from clients increasingly worried about how to plan for their future with confidence.

The most significant talking point at the moment is chancellor Rachel Reeves’ first Budget, due at the end of the month.

Year after year, governments introduce new policies affecting pensions, tax allowances and other frameworks.

These continuous adjustments create uncertainty and make it hard for clients to feel secure in their long-term financial plans.

The constant media speculation just amplifies this anxiety, and it’s happening much more frequently.

For example, in June, prime minister Keir Starmer made a misstatement regarding tax-free cash reductions, which was corrected by the Labour PR machine just hours later.

Headlines that Reeves was being “urged” to reduce tax-free cash do not tell the whole story

The media had already jumped on the story, however, exacerbating concern.

Missteps like this are unfortunate but the 24/7 nature of the media has made the situation worse.

Reporting on opinion from organisations like the Institute for Fiscal Studies just fuels the fire, as seen recently following its suggestion pension tax-free cash may no longer be sustainable.

Headlines that Reeves was being “urged” to reduce tax-free cash do not tell the whole story.

The speculation has led some clients to consider withdrawing their tax-free cash early from a pension regime, despite it not being in their best interest, simply to seek stability.

I’m sure many advisers routinely deal with these sorts of panicked queries.

While politicians and media speculate, we play a key role in providing stability

Many clients, especially those nearing retirement, have felt unsettled about a new left-leaning government, which may not necessarily align with their political views.

Speculative news stories about changes to tax-free cash, inheritance tax (IHT) or even the introduction of a wealth tax are enough to cause panic.

As an adviser, I cannot say such things won’t happen, but I do explain I believe changes as monumental as a wealth tax or even altering IHT (largely unchanged for 40 years) would likely take years to introduce, if they ever happen at all.

Clients begin to wonder if they should act pre-emptively. But it’s important to remind them that even if certain policy changes, like IHT on pensions, were known, the advice might not change.

Short-term revenue gains from frequent changes undermine this goal

Advisers understand not every political shift or proposed tax change will have a direct impact on a client’s long-term goals, and it’s critical to stay focused on the bigger picture.

While politicians and media might speculate, we play a key role in providing stability.

We may not always feel it, but I believe we can nudge policy in the right direction by participating in discussions with institutions like HM Revenue & Customs or the Treasury and through consultation papers.

For instance, the Finance Act at the end of the last tax year abolished the lifetime allowance.

While then-chancellor Jeremy Hunt made the initial decision, input from industry professionals, including myself, helped tweak and adjust the legislation, which could have been worse due to HMRC’s misunderstanding of its implications.

The speculation has led some to consider withdrawing their tax-free cash early, despite it not being in their best interest

That said, amendments to the legislation are still needed.

Our voices need to be heard to ensure policies are crafted with long-term benefits in mind.

Since pension “simplification” in 2006, there have been dozens of other significant changes. This constant tinkering has eroded confidence in pensions for many people. A lack of confidence can leave future generations poorer and more reliant on government support, which could create even bigger problems.

Ultimately, governments should focus on creating stability in tax policies and encouraging people to save for the long term.

Short-term revenue gains from frequent changes undermine this goal. While advisers will continue to help clients stay grounded, a more consistent, thoughtful approach from the government is needed.

Alistair Cunningham is financial planning director at Wingate Financial Plan

STRUGGLING pensioners can now start to apply for up to £300 of cash handed out through the Winter Fuel Payment.

Most households do not need to apply and will automatically be paid the cash.

1

However, a select group of people who are eligible need to apply in order to get the benefit.

If you live in England or Wales and were born before 23 September 1958, you will automatically receive the Winter Fuel Payment if you receive any of the following benefits:

• Pension Credit
• Universal Credit
• Income Support
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)
• Child Tax Credit
• Working Tax Credit

However, anyone who lives abroad and qualifies for the Winter Fuel Payment will need to apply for it.

You can qualify if you live abroad in certain countries and the following conditions apply:

• You moved to the eligible country before January 1, 2021
• You were born before September 23, 1958
• You have a genuine and sufficient link to the UK – this can include having lived or worked in the UK and having family in the UK

You will need to claim Winter Fuel Payment even if you have got it before. The payment is not made automatically when you live abroad.

The eligible countries you can live in and claim are:

• Austria
• Belgium
• Bulgaria
• Croatia
• Czech Republic
• Denmark
• Estonia
• Finland
• Germany
• Hungary
• Iceland
• Ireland
• Italy
• Latvia
• Liechtenstein
• Lithuania
• Luxembourg
• Netherlands
• Norway
• Poland
• Romania
• Slovakia
• Slovenia
• Sweden
• Switzerland

Postal applications

Anyone living abroad and looking to apply households can now apply via post. You need to fill in the winter fuel payment claim form and post it to the Winter Fuel Payment Centre.

The form is available at gov.uk/winter-fuel-payment/how-to-claim.

The address to post to is:

Winter Fuel Payment Centre
Mail Handling Site A
Wolverhampton
WV98 1ZU
UK

Phone applications

You can also apply for the benefit by phone but not until October 28.

If you think you qualify and want to make an application this way, make a calendar note in your phone.

You will need to phone the Winter Fuel Payment Centre on +44 (0)191 218 7777.

When will the Winter Fuel Payment be made?

Most payments are made automatically in November or December.

If you qualify, you’ll get a letter telling you:

• How much you’ll get
• Which bank account it will be paid into

Payments are £200 for eligible households or £300 for eligible households where someone is aged over 80.

Deadline for claims

If you do not get a letter or the money has not been paid into your account by January 29, 2025,  contact the Winter Fuel Payment Centre.

The deadline for you to make a claim for winter 2024 to 2025 is 31 March 2025.

Applying for Pension Credit

You will qualify for the Winter Fuel Payment if you qualify for selected means-tested benefits, most notably Pension Credit.

Hundreds of thousands of households are eligible for this benefit but aren’t claiming and are now set to miss out on the Winter Fuel Payment as a result.

You will need to have been claiming Pension Credit in the ‘qualifying week’ of 16 to 22 September 2024.

However, claims can be backdated by three months meaning you have until December 21 to make a claim and still get the Winter Fuel Payment.

Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.

If your income is lower than this, you’re very likely to be eligible for the benefit.

However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.

You could get an extra £81.50 a week if you have a disability or claim any of the following:

• Attendance allowance
• The middle or highest rate from the care component of disability living allowance (DLA)
• The daily living component of personal independence payment (PIP)
• Armed Forces independence payment
• The daily living component of adult disability payment (ADP) at the standard or enhanced rate.

You could get the “savings credit” part of pension credit if both of the following apply:

• You reached State Pension age before April 6, 2016
• You saved some money for retirement, for example, in a personal or workplace pension

This part of the pension credit is worth £17.01 for single people or £19.04 for couples.

Abrdn Adviser has today (3 October) announced the appointment of Derek Smith to the newly created role of chief technology & product officer.

The CTPO role will bring together Abrdn Adviser’s technology and product teams.

Smith will be responsible for executing the technology strategy and ensuring the continuous enhancement and scalability of the Abrdn Adviser business.

He will join in November from Morningstar Wealth, where he is currently chief technology officer, a role he has held for the past two years.

His previous roles include head of engineering at Virgin Money and Lloyds Banking Group.

Smith’s appointment follows a busy few weeks on the recruitment front for Abrdn Adviser.

Last month, it announced that industry veteran Verona Kenny will join as chief distribution officer and Louise Williams as chief financial officer.

Abrdn Adviser CEO, Noel Butwell, said: “Our ambition is to deliver a market-leading proposition with exceptional client service and we’ve set out to create the best senior leadership team in the market to achieve this.

“Technology is a critical enabler in realising our goals and aligning to continuously evolving customer needs, and Derek brings a wealth of experience to the role of chief technology & product officer.

“He will lead the implementation of our strategy and next phases of platform upgrades as we embark on our next stage of growth and evolution during a period of disruption and digital transformation in the market.”

Smith added: “I am thrilled to join Abrdn Adviser at such a pivotal time.

“My passion lies in leading the creation of innovative digital solutions and journeys that empower financial advisers to deliver high-quality, personalised service to their clients.

“Together, we will build solutions with service excellence and interconnectivity at their heart, supporting advisers to navigate and thrive in the ever-evolving financial landscape with confidence.”

SELF-employed workers have been urged to submit their tax returns now if they are looking to move home in the coming weeks or months.

From October 5, the majority of mortgage lenders will ask for 2023/24 tax returns as proof of earnings.

1

HMRC doesn’t require the 23/34 year’s tax return to be submitted until the end of January 2025, meaning that many workers will not have yet completed it.

“Lenders see documentation over 18 months old as too historic to accept,” said Chris Sykes, technical director at mortgage broker Private Finance.

This means that anything relating to the end of the tax year April 5 2022/23 becomes out of date from October 5,

Chris said self-employed borrowers get caught out by this every year as the date isn’t advertised by lenders.

He added: “This will affect any self employed borrower looking to buy their first home, move house or remortgage over the next few months.

“Unlike an employed borrower just on a salary, a new year’s self employment figures can significantly change the borrowing upwards or downwards.”

Nicholas Mendes​​​​, technical manager at broker John Charcol agreed that this is a big issue for self-employed borrowers and they often oly become aware when starting the mortgage application process which can then create delays.

He said: “We see this issue arise quite frequently with self-employed clients—many are unaware that, even though HMRC gives them until January 2025 to file their 2023/2024 tax returns, lenders may not accept their older 2022/2023 tax returns after October 5 of this year.

“This mismatch in timelines often catches applicants off guard, leading to unexpected delays or issues in securing a mortgage.

“It’s a significant challenge because while the HMRC deadlines are designed to be lenient, lenders operate on much tighter expectations regarding financial documentation.”

If you can’t submit your tax return until later in the year, self-employed borrowers need to race against the clock to get a mortgage application in before lenders start rejecting their 2022/23 return.

Chris said there are some exceptions as a few lenders have a slightly longer window – but these are usually specialist lenders.

Specialist lenders often charge higher rates than mainstream lenders which means borrowers could end up paying more for their mortgage than they would otherwise.

The deadline for registering for a tax return for the first time for the 2023/34 year is also October 5.

There’s no penalty for registering after this, but if you haven’t signed up, filed your tax return, and paid your bill by January 31 you will be fined.

How to get a mortgage when you’re self-employed

Self-employed people can sometimes find it harder to get a mortgage as income can be more changeable than when you’re employed.

You will usually need at least two years of accounts and lenders will use these figures when deciding how big the mortgage offer will be.

Chris added: “We more often than not find self employed people don’t understand how a lender will look at their income, many think they are judged on their turnover when they are judged on their profit.”

Lenders may want to see more evidence of your income since you don’t have an employer to back you up.

This means all your accounts will need to be in order. It can be worth using an accountant if you don’t already to help you do this.

Lenders like to see consistent profits, and consistent earnings levels where possible. If there are fluctuations it needs to be understood why that is the case.

Keeping your financial documentation up to date can significantly increase your chances of a smooth mortgage application process and help avoid unnecessary stress or delays.

An independent mortgage broker can help advise on the process and give you an idea of any additional documentation you may need to get your application through.

In some cases, self-employed workers might find they need a bigger deposit and a strong credit score to get a home loan.

THE UK’s cheapest supermarket for a weekly shop in September has been revealed – and it’s not Lidl or Asda.

Which? found German discounter Aldi to be the most affordable out of a list of eight major chains last month.

1

The UK’s consumer champion looked at how the retailers’ prices compared on a shopping list of 59 products, to represent doing a weekly shop.

The list of 59 included both branded and non-branded items including Birds Eye Peas, Hovis bread, milk and butter.

Which?’s analysis also included special offer prices and loyalty prices where possible, but not multi-buys such as buy one get one free.

The consumer champion found Aldi came out cheapest ahead of Lidl, Asda, Tesco and Sainsbury’s with the basket costing £102.68.

The supermarket also pipped Morrisons, Ocado and Waitrose to first spot.

Asda’s basket of 59 goods came in just a fraction more expensive than Aldi, costing £103.86.

Asda was next, with its shopping list costing £112.19.

Tesco’s basket, with Clubcard, was £112.96, and without loyalty pricing it was £113.35.

Sainsbury’s shopping basket, for Nectar Card customers, was £113.79, then Morrisons was next, coming in at £119.18.

Sainsbury’s without a Nectar Card was £119.19, then Ocado and Waitrose came in bottom of the pack, with their baskets costing £125.16 and £130.37 respectively.

Ele Clark, Which? retail editor, said: “Our latest monthly analysis once again sees Aldi crowned as the UK’s cheapest supermarket.

“Given the ongoing strain of high food prices on household budgets, it’s understandable that many people are choosing discounters to cut costs.

“By switching supermarkets, consumers could save 21%, highlighting the advantages of shopping around.”

It’s worth bearing in mind, the research carried out by Which? was based on prices for the list of 59 products across just September.

That means they are just a snapshot of what you might pay for them at different times of the year.

Prices at supermarkets change frequently, sometimes daily, and you will find items on offer in one chain one week then in another the following week.

However, in Which?’s survey of a larger basket of goods it was Asda that came out top of the survey.

The comparison looks at 164 items – but it doesn’t include Aldi and Lidl as they don’t offer large enough ranges in shops.

Asda came top of the list with this basket costing £418.88 – but Tesco (with Clubard prices) was just 1p more expensive.

An Asda spokesperson said: “Asda is consistently recognised as the best-value supermarket for the big shop in independent price comparison surveys, including the Grocer 33 basket comparison and the Which? monthly big shop trolley comparison.

“This is despite these surveys including other retailers’ loyalty schemes but not Asda Rewards.”          

It’s also worth factoring in that Which? looked at loyalty pricing for Lidl, Tesco, Sainsbury’s, Morrisons and Waitrose, but only Tesco and Sainsbury’s had items on its chosen shopping list with a loyalty price in September.

Meanwhile, Asda doesn’t have two-tier loyalty pricing. Its loyalty scheme is based on points and personalised rewards, not lower prices for every scheme member which meant Which? didn’t include the retailer’s loyalty scheme prices.

It’s not the first time in recent months Aldi has come out on top of Which?’s cheapest supermarket survey.

The German discounter, which is looking to massively expand its physical store presence across the UK, was crowned the cheapest supermarket in August, July and June.

It was also crowned the cheapest supermarket of 2023, pipping the other major chains including Lidl, Asda and Sainsbury’s to the top spot.

The Sun asked Tesco, Sainsbury’s, Ocado and Waitrose to comment.

A Morrisons spokesperson said it was “working hard to keep prices down and competitive for our customers”.

They added: “Our More Card members can also earn points on selected purchases, including fuel, and redeem those points for fivers off their shopping.

“They also benefit from market-leading discounts on over 2,000 branded and essential items across fridge, freezer and cupboard fillers as well as personalised offers and surprises.”

A Waitrose spokesperson said: “We’re committed to keeping prices low for customers and remain focused on giving our customers great value for money. 

“We have invested in prices without compromising on quality or our industry-leading animal welfare standards.

“Which’s price comparison also excludes multibuy offers, which are extremely popular amongst our customers for both our branded and own-branded products.”

The retailer added that it had reduced prices on its No.1 range which was recently relaunched.

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