February 2023 Newsletter | Cylchlythyr Misol Chwefror 2023
- One effect of the huge rise in energy prices is that purchasers and renters of property are looking for energy efficient properties in bands A-C. There are 7 bands ranging from A-G (Band G is very energy inefficient and expensive).
If you have a property in Band D or lower and are intending to sell a property or a landlord intending to rent a property you need to consider investing in your property with energy efficient improvements or risk a reduction in the sale price of your property / rent received.
In addition, some mortgage providers are limiting advances to landlords / purchasers of older homes with a poor energy efficiency rating.
- Has your business turnover (gross income before costs) increased to above £85,000 in any 12-month period? If so, you are likely to have to register for VAT. Remember that the relevant period to assess your turnover against the £85,000 threshold is any 12-month period (not the tax year, or if you are a limited company, not the company's financial year end).
If you are unsure as to whether you might reach the VAT threshold, or have already exceeded it, contact your accountant.
- Continue to remain scam aware. The latest sick scams include social media accounts sharing links to fake donation pages to raise money for Turkey-Syria earthquake victims. Remain sceptical of any new social media accounts with links to unverified webpages. If you are unsure, visit formal charity websites instead.
Ask Huw & Aled: my elderly aunt’s health is deteriorating and she may need to enter a home soon. What are the financial implications? She has some savings of £300,000 and income of £2,000 per month.
Firstly, if you have not already done so ensure that you have Financial and Health Power of Attorney documents in place so that you can continue to look after her as she becomes more frail and her mental capacity decreases.
If she is in reasonable health, she will be responsible for paying the care home fees which can be very expensive, around £80,000 a year in Cardiff for a good quality home.
If after a few years her savings have decreased to £50,000, at that point you can apply to the local council for financial support to pay a large proportion of the care home fees. A care assessment will be carried out and if her health has deteriorated again to a great extent, the Council will step in to pay the bulk of the care home fees and your aunt will pay a proportion of the fees based on her monthly income.
Note that savings thresholds can vary by Local Authority.
