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News
THE STATE OF HEALTH
Good health is important, but so too is knowing that you are protected if there is a problem. Most of us rely on the National Health Service (NHS) for our medical care. During the past few years, the NHS has enjoyed something of a boom period, with funding expanding rapidly as part of the Government's ongoing reforms. But there are indications that more than a little belt-tightening is now going on.
For example, in 2007/08, the Department of Health's budget rose by 8.8% to an estimated £89.2 billion, but its budget this year will grow by less than half that - by
4.5%, to £94 billion.1 There are a number of requirements from this restricted budget, including:
• 'Medical inflation'-the rising cost of new treatments and drugs.
• The cost of computerising the NHS (only £2.4 billion of the estimated £12.4 billion cost to 2012 has so far been spent). *
• An ageing population.
Even increases well above inflation may not be enough to avoid cutbacks in some areas.
For most of us, the NHS does well and continues to provide the essential healthcare we need. But sometimes you may have additional requirements that the NHS cannot meet. If you want treatment at a
time to suit you, a private room in hospital because you are worried about big mixed wards or simply want to maintain continuity of care, medical insurance may be a very effective solution. Today's insurance includes options to tailor cover not just to your needs, but to your budget too. And a health cash plan can help with everyday health costs - such as dental and optical care.
The NHS is not alone in being under cost pressure. From October 2008, the government is toughening the rules on welfare benefits too and the current Incapacity Benefit will be replaced with a new Employment and Support Allowance. The new benefit has the advantage of focusing on what people can do, rather than on what they cannot. But in changing this emphasis, the Government expects eventually to take around one million people out of the benefit system.
Having a financial check-up of your health and protection cover now could be a very sensible move.
1. HM Treasury 'Red Book' 2008
2. Department of Health, March 2008
New Tax Returns and Deadlines
HM Revenue & Customs has completely redesigned the main tax return (SA 100) for 2008 and changed its filing date. From now on, paper returns will have to be filed by 31 October after the end of the tax year. The former 31 January deadline will now apply only to online filing.
Lower Pension Contributions?
One result of the cut in basic rate tax to 20% is that the gross value of your personal pension contributions may have fallen. Before 6 April, a net contribution of £1,000 was worth £1,282.05 gross. It is now worth only £1,250 gross. If you have not adjusted your net contributions upwards, you should review your plan and think about doing so now.
Trust Variations
When changes to trust rules were made in the 2006 Budget, a period of grace was granted for amending interest in possession trusts. This was due to end on 5 April 2008, but the Budget contained an announcement extending the deadline to 5 October 2008. Any trust not reviewed so far should therefore be scrutinised urgently.
The Financial Services Authority does not regulate tax and trust advice.
Good health is important, but so too is knowing that you are protected if there is a problem. Most of us rely on the National Health Service (NHS) for our medical care. During the past few years, the NHS has enjoyed something of a boom period, with funding expanding rapidly as part of the Government's ongoing reforms. But there are indications that more than a little belt-tightening is now going on.
For example, in 2007/08, the Department of Health's budget rose by 8.8% to an estimated £89.2 billion, but its budget this year will grow by less than half that - by
4.5%, to £94 billion.1 There are a number of requirements from this restricted budget, including:
• 'Medical inflation'-the rising cost of new treatments and drugs.
• The cost of computerising the NHS (only £2.4 billion of the estimated £12.4 billion cost to 2012 has so far been spent). *
• An ageing population.
Even increases well above inflation may not be enough to avoid cutbacks in some areas.
For most of us, the NHS does well and continues to provide the essential healthcare we need. But sometimes you may have additional requirements that the NHS cannot meet. If you want treatment at a
time to suit you, a private room in hospital because you are worried about big mixed wards or simply want to maintain continuity of care, medical insurance may be a very effective solution. Today's insurance includes options to tailor cover not just to your needs, but to your budget too. And a health cash plan can help with everyday health costs - such as dental and optical care.
The NHS is not alone in being under cost pressure. From October 2008, the government is toughening the rules on welfare benefits too and the current Incapacity Benefit will be replaced with a new Employment and Support Allowance. The new benefit has the advantage of focusing on what people can do, rather than on what they cannot. But in changing this emphasis, the Government expects eventually to take around one million people out of the benefit system.
Having a financial check-up of your health and protection cover now could be a very sensible move.
1. HM Treasury 'Red Book' 2008
2. Department of Health, March 2008
New Tax Returns and Deadlines
HM Revenue & Customs has completely redesigned the main tax return (SA 100) for 2008 and changed its filing date. From now on, paper returns will have to be filed by 31 October after the end of the tax year. The former 31 January deadline will now apply only to online filing.
Lower Pension Contributions?
One result of the cut in basic rate tax to 20% is that the gross value of your personal pension contributions may have fallen. Before 6 April, a net contribution of £1,000 was worth £1,282.05 gross. It is now worth only £1,250 gross. If you have not adjusted your net contributions upwards, you should review your plan and think about doing so now.
Trust Variations
When changes to trust rules were made in the 2006 Budget, a period of grace was granted for amending interest in possession trusts. This was due to end on 5 April 2008, but the Budget contained an announcement extending the deadline to 5 October 2008. Any trust not reviewed so far should therefore be scrutinised urgently.
The Financial Services Authority does not regulate tax and trust advice.