SVB Crumbles: How Will the Sector Bounce Back?
SmartPurse - Fun, Financial Education for you and your workforce
We make finances fun, and accessible for all! Corporate Workshops ● Employee Perks ●Smartpurse App ● Coaching ● Events
You’ll have seen in the news that US tech specialist lender Silicon Valley Bank collapsed on Friday – the biggest failure of a US bank since the 2008 financial crisis. New York-based Signature Bank (which also specialised in the tech sector) has also been taken over by US authorities.
Bank shares worldwide collapsed at the news, and in the UK, the government and the Bank of England brokered a deal for HSBC to take over the UK arm of SVB. We may notice a shift in lending culture over the next few months – possibly a reluctance among banks to open new accounts.?
With 2008 still fresh in many memories, we can potentially expect a more cautious approach from some banks. However, in the UK, the Financial Services Compensation Scheme (FSCS) protects deposits in the event of a bank collapse: up to ￡85,000 for individual accounts and ￡170,000 for joint accounts.
Regardless, remember that some banks are part of larger groups (which means your total deposits with the group may be larger than you think) and that not all banks operating in the UK are regulated here, so they might not be covered.
If you have more than ￡85,000 across your bank deposits, now is perhaps the time to revisit your strategy for how you are investing and moving your money and check that the FSCS applies.
Review your year
As all self-employed people know, preparing for financial year end (FYE) is important not only for your tax returns and staying compliant, but also to analyse the health of your business. Knowing how much money you’re spending and how much you’re bringing in is a vital part of sustaining and growing your business.
Reviewing insurance, agreements and contracts to see if they are still relevant is also a good idea. Has your business grown during the past year? Have you taken on more employees? If things have changed, your paperwork might not be up to date.?
Look at your insurance especially, as they may no longer be binding
if your business has grown or changed focus. And as doing business
becomes ever more technological, check that you are insured against
cyberattacks. A recent survey by PolicyBee revealed that 40% of SMEs
could be underinsured, and a whopping 44% are not insured at all. So
take stock of how you are looking after your business.
Remember your household finances during your spring clean, especially considering the ever-rocketing cost of living. Look particularly at your mortgage this year. Are you paying the best rate possible? Shopping around for a better deal is even more accessible nowadays – a quick internet search can easily find mortgage calculators.
Plan ahead for 2024
Changes are ahead for the assessment of your self-employed profits, so here is a rundown of what’s coming:
This may mean that if your accounting period differs from the tax year, you may need to prepare for a larger tax bill to compensate for the shortfall in the date change. You can, however, have a deduction for “overlap relief” if your business profits were taxed twice when you started trading. For more information, you can read the?policy paper here.?
Daylight saving – what it means for your finances?
Once a light-hearted suggestion by Benjamin Franklin but hard fought for in the UK by British builder William Willett, daylight saving was introduced in 1916 to increase workers’ production. The rule still stands today, and the clocks in the UK will go forward by one hour in the small hours of 26 March.
Although many still think getting up an hour earlier has positive financial benefits, the concept has detractors. While extra light arguably saves money on domestic utilities, studies have shown that fuel consumption, trade expenses and travel coordination result in higher production costs, making the long day more expensive.
Figure of the Week
5 April is the end of the tax year
The end of the tax year is rapidly approaching – are you claiming all the allowances you’re entitled to?
While you’re spring-cleaning your finances, take a minute to look at the?HMRC pages about tax allowances.
You’re probably already more than familiar with income tax allowances, but it’s worth looking at marriage allowance, income from self-employment, the property you rent or interest on savings. You could be entitled to savings that may run into thousands, so it’s definitely a good idea to check.
Help to Buy is ending
Help to Buy is an overarching term for several government schemes that enabled people, especially first-time buyers, to purchase a home. The last remaining scheme, Help to Buy Equity Loans, ends at the end of this month.
Help to Buy Equity Loans enable buyers to receive 20% of the home’s value as a government loan when they put down at least a 5% deposit. Some loans have been extended to 40% in London, where house prices are much higher than in the rest of the country.
领英推荐
SmartPurse joins leading business incubation programme
We are absolutely thrilled to share the?exciting news?that our startup has been selected as one of the seven top-notch companies for Tenity's highly competitive Incubation Program in Switzerland!?
Out of 300 outstanding applications, we emerged as the only female-led finalist. This remarkable achievement has left us buzzing with excitement and filled with immense pride.
Over the next four months, we'll work alongside other startups to further develop our platform and democratise financial education for women worldwide. With support from global financial experts, we'll refine our business ideas and future strategies to drive our mission forward.
Our achievement wouldn't have been possible without the unwavering support of our dedicated team and the incredible community we've built, and we would like to take this opportunity to celebrate this milestone and express our deepest gratitude to each of you. ??
Meet the expert – Isabel Clark
Isabel is an FCA-authorised financial advisor whose expertise ranges from investment advice to setting up or selling a business.
She is particularly interested in ensuring her clients have solid financial plans that fit their values and have flexibility built in should their circumstances change.
For more on Isabel and how she can help you bolster your finances, click?here.
The Money School App
Our app is not just your typical financial planning tool - it's a comprehensive program designed specifically for women, by women. We understand that financial planning can be intimidating, but with our bite-sized lessons and practical tips, you'll feel empowered to take control of your financial future.
Our Money School programme is built to fit seamlessly into your busy life. Whether you have 5 or 10 minutes to spare each day, you'll be amazed at the incredible benefits you'll reap by investing in yourself and your financial success.
So why wait? Join our community of smart, savvy women taking charge of their financial futures. Download the SmartPurse Money School app today and start your journey towards financial independence! Try it for free!
Money Inspiration?@smart.purse?
We love hearing from you.
Send us your comments and feedback to:?
Always remember to consult an independent financial advisor for personalised investment advice.
Pass it on!
?? Spread the word - share this newsletter with your friends!
?? Follow us on LinkedIn, Instagram, TikTok or Facebook
???Ideas and suggestions? Write to us: [email protected]
???Do you want to receive the German newsletter instead?
?? Also reach out to [email protected]