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Short filmTranscript
00:00Thank you so much. Thank you.
00:16Hello.
00:18It's Valentine's Day tomorrow, a day of celebration
00:22for the sellers of cards, flowers and chocolates.
00:25But forget all that.
00:26Tonight, the eight huge, hidden financial benefits of marriage,
00:31including a £1,260 tax break, inheritance tax gains,
00:36pay less tax on your savings and far more.
00:38It's so impactful, it's possible I may end up being responsible
00:42for more marriages than some vicars.
00:45Then, on the other side, I'm joined by specialists.
00:48Welcome to you all.
00:50To take your questions on divorce.
00:52How do you do it with less cost, less misery and less stress?
00:56And then, in my news, you can use a warning
00:58to help anyone who pays for car insurance do it cheaper,
01:01a year's free tax for EV drivers,
01:04how to swerve a price hike if you've got Microsoft's 365,
01:08and energy prices.
01:10They're now likely to rise 6% in April.
01:15Yeah, exactly.
01:16And the last cheap fixes could be about to disappear.
01:18I'll be talking to you about all of that.
01:20Now, it's marriage and divorce today,
01:21so over to my TV wife,
01:24and my tip for a happy marriage,
01:26separate stages.
01:27Oh, yeah.
01:28It always works very well.
01:29Do you know?
01:29I mean, separate stages.
01:32Separate stages and separate screens
01:34is exactly what makes this work, Martin.
01:36Send in your questions, please,
01:38on X, Blue Sky, or Instagram,
01:39using the hashtag MartinLewis,
01:41or email the team, martinlewis at itv.com.
01:44And remember, if we don't use your question tonight,
01:47we may use it in a future show.
01:48And a huge welcome, of course, to our studio audience.
01:51Wave your words, everybody!
01:54That's what we like to see.
01:56Well done.
01:57OK, so let's move straight into tonight's subject, marriage.
02:00We have Amy in the audience with a question.
02:02Good evening, Amy.
02:03Hello.
02:04For couples who aren't planning on getting married immediately,
02:07are there any financial disadvantages to waiting?
02:10Is the man leaning slightly away from you
02:12when you ask that?
02:12Your boyfriend?
02:13Yes, he is.
02:14What's your name?
02:15Ben.
02:16Ben.
02:18Look, all the benefits for marriage
02:20start the day you're married.
02:21So the only benefit that you would get
02:23is that you would get those earlier
02:24if they're necessary for you,
02:25and I'm about to talk through them all.
02:26I mean, Ben, you don't have a ring on you tonight
02:28or anything, do you?
02:29No, we'll leave the two of them alone.
02:31The most important thing is,
02:32I'll talk to you later,
02:33and you will decide whether you should be doing it quicker or not.
02:36Let's start my big briefing.
02:40OK, now remember,
02:42this is whether being married is financially worth it.
02:45The answer is absolutely yes.
02:47These are the eight big benefits
02:48and how to take advantage of them.
02:50This is about marriage, not weddings.
02:53Weddings can be very expensive.
02:55They don't need to be,
02:56and please don't get yourself in debt,
02:57you two especially.
02:58Don't get in debt just for your wedding day.
02:59Start your marriage nice and clean and easy without it.
03:02But this is about the benefits of marriage
03:04and civil partnerships.
03:05None of these apply for just living together.
03:07I don't care if you live together for 20 years,
03:09it doesn't make any difference.
03:09I don't care if you've got kids,
03:10it doesn't make any difference.
03:11This is about marriage and civil partnerships.
03:14And I've got a whole load,
03:15four different ones to go through with you
03:17in different categories
03:17where I put all the eight different ones there.
03:19So let's start with the first one now.
03:21Just before you get into that,
03:22I have this question here from Karen.
03:24She's asking,
03:25Do the financial benefits of being married
03:27also apply to civil partnerships,
03:29both same-sex and opposite-sex?
03:31We're not married
03:31and don't really want to do the whole wedding thing,
03:34but wonder whether an opposite civil-sex partnership
03:37might be the way to go.
03:38Absolutely it would be.
03:40There is, under the law,
03:42no difference between marriage and civil partnerships.
03:44And I know there are people out there
03:46who don't like the patriarchy idea of marriage.
03:48And I know there are people out there
03:49who think marriage has baggage.
03:51Some people think it's good baggage.
03:52Some people think it's bad baggage.
03:53And people who don't like the religious element.
03:55So if you don't like that
03:56and you want the same legal benefits
03:59and tax benefits,
04:01get yourself a civil partnership.
04:02Let's just check.
04:03With my specialist, all the...
04:04Correct.
04:05Exactly the same.
04:06No difference between the two, technically.
04:07No difference at all.
04:08Yes.
04:08So let me get on to the first one.
04:10A £1,260 marriage,
04:12or civil partnership, tax break.
04:14So this is all about what is called
04:16the marriage tax allowance.
04:19And it works provided one of you
04:21is aged under around 90.
04:22Specifically, one of you needs to have been born
04:24after the 5th of April, 1935.
04:27Just checking her out.
04:28You're all good.
04:29Well, there's a couple I'm questioning.
04:30No.
04:31I wouldn't be so rude.
04:32So let's look at exactly how this works.
04:35Imagine we have a couple here.
04:36The crucial part of this,
04:38one of you needs to be a non-taxpayer.
04:40So you are not earning your full personal allowance
04:42you can earn before you start paying tax on it.
04:44Now, people say,
04:45what about if I'm volunteering?
04:46What about if I'm...
04:47If you don't pay income tax,
04:49you're a non-taxpayer.
04:50The other needs to be paying...
04:52The highest rate of tax they pay
04:53is the basic 20% rate of tax.
04:57In Scotland,
04:58as long as you're paying tax,
04:59there are different thresholds there.
05:00But it works roughly the same way.
05:01And clearly,
05:02you have to be married or civil partners.
05:03Then what happens is this.
05:04Each of you have your £12,570 personal allowance.
05:08That's the amount you can earn
05:09that you don't pay tax on each year.
05:11Yep, you all know that.
05:12OK, so the non-taxpayer can apply to gov.uk.
05:18I'm going to give you a question about that later.
05:20There's an issue there.
05:21But apply to gov.uk
05:22to move 10% of their tax-free allowance
05:25across to the basic rate taxpayer.
05:27There we go.
05:29Perfect.
05:30The net result of that
05:32is the non-taxpayer now has an allowance
05:34of £11,310
05:36and the taxpayer has a combined allowance of...
05:39It should merge, if I'm lucky.
05:41There we go.
05:4113,830 quid.
05:44Now, that 10% extra tax-free allowance they have,
05:48remember, they would have paid tax on it at 20%.
05:51So the gain there is £252 a year.
05:56And that's what moving across works.
05:57And in virtually every circumstance,
06:00even if the person here
06:01under a little bit above that threshold
06:03where they might pay a little bit of tax,
06:05but as long as the person on this side
06:07is earning over 13,830 quid,
06:09you're always going to be net up
06:10if there's a non-taxpayer and a taxpayer.
06:13Now, you need to do this quickly
06:15because this year, it's each tax year
06:16and the tax year ends on the 5th of April.
06:18You can claim back up to four tax years
06:22as long as you are eligible,
06:23which means a total gain of £1,258.
06:31The way it works,
06:32for the current year, your tax code is changed.
06:34For past years, they send you a cheque
06:35or they send you a bank transfer.
06:37So the marriage tax allowance is absolutely crucial to do.
06:40There's a but, but I can see you've got questions.
06:42Do your questions first.
06:43Deborah's been in touch about this.
06:44Now she's asking,
06:45I'm a single earner, married to a disabled husband.
06:48I pay full council tax
06:49and as I earn £24,000,
06:51I'm not eligible for any benefit help.
06:54I have applied by post twice
06:56in six months for marriage tax allowance.
06:58I can't do it online.
06:59I still haven't been told if I can get it.
07:01What can I do?
07:02Well, the most important point I need to make there
07:04is you say,
07:05I have applied.
07:07You can't apply.
07:09You are the taxpayer.
07:12Your husband, if I'm reading it right,
07:14is the non-taxpayer.
07:16Clearly, you can't apply
07:17to take someone's personal allowance.
07:19They have to apply to give someone
07:21their personal allowance.
07:22So that may be the issue.
07:23But there is an issue at the moment
07:25with the application system.
07:27So I've been told,
07:28if you've got in touch by post
07:30and it's taken over three months,
07:31you should get in touch with them again.
07:33Here's the thing, guys.
07:34I'm doing this programme.
07:35This afternoon, I found out
07:36they've taken down
07:37the gov.uk marriage tax allowance application site
07:39for essential maintenance
07:40for the next two weeks.
07:42Terrible timing.
07:43Right?
07:44I didn't want to stop telling you at all.
07:45I mean, when they've got to fix it,
07:46they've got to fix it.
07:47So this is what you need to do.
07:49Either put in your diary now
07:51to do this on the 1st of March.
07:52There are 2.1 million eligible couples
07:56who are not claiming this,
07:57who should be claiming this and could gain.
07:58So do it on the 1st of March.
08:00Or if you're the type of person,
08:01and some people are who go,
08:02if I don't do it now, I'll never do it,
08:03then you can go on to gov.uk,
08:05you can download a form online,
08:07and then you can post that in.
08:08And as long as it all happens,
08:10before the 5th of April,
08:11you will get this year's,
08:12and you will be able to backclaim
08:14the prior four years.
08:16But frustratingly,
08:17I found out this afternoon,
08:18they've just taken it down.
08:19Terrible timing,
08:20but hey, these things happen.
08:21You mentioned backdating.
08:22We had this in another context last year.
08:24We've had this success in from Debbie, actually.
08:26She's saying,
08:27I was watching your show
08:28with regards to backdated marriage tax allowance.
08:30I applied online during the show,
08:32including the setting up of the Gateway account,
08:34and a week later,
08:35the cheque arrived for 1,035.
08:37That, that is why I'm still telling her to do it,
08:44even though it's not online.
08:45And I've just gone on to her stage,
08:47which I said before,
08:48you should never do.
08:49So there we go.
08:49OK.
08:50Sorry, KK.
08:51You can move on.
08:52Right, let me move on to the next one on my list.
08:55I know what I'm about to say.
08:57Look, where marriage really counts is when you die.
08:59Like, let's get into it.
09:02It is.
09:03That's the truth of it.
09:04This is where the really big benefit comes from.
09:06So the first thing to say,
09:08anything you leave to your spouse
09:10is exempt from inheritance tax.
09:12So there is no tax to pay
09:14on anything that you leave your spouse.
09:16Now, even if you were a billionaire like Bruce Wayne,
09:18well, actually not.
09:19Bruce Wayne, Batman is in America,
09:21so he wouldn't count.
09:22And actually, it's an important point.
09:23This is only for,
09:24you've got to be both UK resident
09:26to be able to do this,
09:27or it can get complicated.
09:28But anything you leave to your spouse is exempt.
09:30That's not the big one, though.
09:32The next one is the big one.
09:35Any unused inheritance tax allowance
09:37passes on to your spouse.
09:39You don't need to do anything to activate it,
09:40although when you die,
09:41the executors need to send the documents to HMRC.
09:44To be clear again,
09:45this is only if you are married
09:47or in a civil partnership.
09:49Living together doesn't count.
09:51Let me show you the impact.
09:53Big.
09:55Here we go.
09:56So.
09:58We have Mr. and Mrs. Young at Heart.
10:00They have combined £1 million assets.
10:02A lot of it is in a house.
10:04There you are, Mr. Young at Heart,
10:05Mrs. Young at Heart.
10:05And these are their inheritance tax allowances.
10:07They have one each.
10:09So, look,
10:10everybody in their estate
10:12can give £325,000
10:14and their inheritance tax is paid on it.
10:16Above that,
10:17you get another £175,000
10:19if you're passing on your primary home
10:22to your direct descendants.
10:24So, that's children or grandchildren,
10:26including stepchildren,
10:27foster children,
10:28adopted children.
10:29You pass that on,
10:30you get an extra £175,000
10:31as long as your total estate
10:33isn't worth more than £2 million
10:34where it's gradually taken away.
10:35But we won't worry about that for the moment.
10:37So, that is the situation.
10:38Now, I have some very bad news, everyone.
10:39Mr. Young at Heart has passed away.
10:44But he leaves everything to his wife.
10:47There we go.
10:47All the money goes across.
10:49Now, because he has left everything to his wife,
10:52he has not used
10:53any of his inheritance tax allowances.
10:55And therefore,
10:56she gets the inheritance tax allowances
10:59that he had.
11:00They've just seen your face.
11:01You're going, wow,
11:02that for our couple...
11:02Yeah.
11:03Now you see the impact of this.
11:04Wait till you hear the maths...
11:05What? I forgot your name.
11:06I'm so sorry.
11:06Ben.
11:07Ben, wait till you hear the maths in a minute.
11:08Right.
11:09So now,
11:10she can pass on £650,000
11:12and another £350,000
11:14if they've got the primary residence.
11:16That's £1 million.
11:17Now, let's just imagine
11:18they did exactly the same thing
11:20that they weren't married.
11:22So you've got Mr. Young at Heart
11:23and...
11:24Missed Out.
11:25Missed Out.
11:26There we go.
11:27In that same scenario,
11:29he's left everything to his partner.
11:31So he's used up
11:32his inheritance tax allowance.
11:34Now, if she leaves everything to the kids,
11:36she only has half of that
11:38so that's £500,000.
11:40Going to be paying tax on it.
11:41Well, you know what?
11:42Depending on the tax,
11:43we could be talking
11:44£200,000
11:45of inheritance tax paid
11:48because they weren't married.
11:50Have you got the ring yet?
11:52Sorry.
11:54I don't mean to put pressure on.
11:55It's a terrible thing to do.
11:56That is by far
11:58the biggest benefit of marriage
12:00for those who have assets.
12:02It's absolutely crucial
12:03that people understand that.
12:05Okie dokie.
12:06So, I'm going to move on
12:07to a little bit
12:08of a more complicated one.
12:09Another one.
12:10ISA allowances can be passed on
12:11to your spouse.
12:13Now, ISAs don't perform part
12:15of your inheritance tax
12:16so you don't pay inheritance tax
12:17on them anyway.
12:17This gets a bit complicated.
12:18So let's imagine
12:19your spouse has £30,000 in an ISA.
12:23You've got £40,000 in an ISA.
12:25You now have an ISA allowance
12:27of £70,000
12:28because you get theirs.
12:29Now, that works
12:30even if the ISA money
12:33isn't left of the spouse.
12:34So it's myself and Jeanette.
12:35I've got a £30,000 ISA.
12:36I leave the ISA to my daughter.
12:38I leave her the £30,000.
12:40Jeanette still gets
12:41the extra £30,000 allowance.
12:43She could then use
12:44any spare money she has
12:46to use that allowance
12:47if she wanted to protect it
12:48from an ISA.
12:49Have we got that?
12:49Got it.
12:50Am I carrying on?
12:50Yeah.
12:51OK, let's move on.
12:52I've got more.
12:53OK, and the fifth one.
12:55I know none of this
12:56is particularly jolly
12:56to think about
12:57but it's very important.
12:58And by the way,
12:59just to say,
12:59I don't make these rules.
13:01Some of these are
13:01deliberate social engineering
13:03about encouraging marriage
13:05and civil partnerships
13:06in the tax system.
13:07It is deliberate.
13:08You may disagree with that.
13:10I'm not saying
13:10that's how it should work.
13:12I'm saying how it does work.
13:13Although I do think
13:14the advent of civil partnership
13:16mitigates it somewhat
13:18for those people
13:18who don't like marriages
13:19because at least
13:19you've got another option
13:20which is just a technical contract
13:22if you like.
13:22You could almost think of it
13:23as a cohabiting agreement
13:24to civil partnership
13:25if you wanted to do so.
13:25So anyway, the last one.
13:27If you die willless
13:28an unmarried partner
13:30may get nothing.
13:32So you need something
13:33that gives you some agreement.
13:34A will would give you
13:35some agreement.
13:36Marriage or civil partnership
13:37is the key.
13:38If you don't have any of those
13:39depending on your
13:40ownership structure
13:40unmarrieds could lose the home.
13:43Now if you are married
13:45there are things called
13:46intestacy laws.
13:47Now these operate
13:48if you don't have a will.
13:49This says where your assets
13:50would go if you don't have a will.
13:52They're different
13:53in each of the UK nations.
13:54I'm going to just give you
13:55an example for England.
13:56So if you're married
13:57in England
13:58the first £322,000
14:00of assets
14:01goes to the spouse.
14:02If you have children
14:03the remainder
14:04is divided between
14:05the children
14:06and the spouse.
14:07That's how it works.
14:08If you're not married
14:09it all goes to the kids.
14:11So let's imagine
14:12you're in a second marriage
14:13you had kids from your first marriage
14:14you're with your partner
14:15so you're in a second relationship
14:16you're with your partner
14:17nothing's going to that partner
14:18because it's all going to your kids
14:19from the first marriage.
14:20That's how it works.
14:21So a will
14:22is by far the best protection
14:24that you can possibly have
14:26but even if not
14:27marriage is better.
14:27Can I just check
14:28with my specialist over here
14:29I'll be into you.
14:29Yeah you all agree?
14:30Yes absolutely.
14:31Absolutely.
14:32Yeah.
14:32You're going to be more protected
14:34if you're married
14:35but even better with a will.
14:36Yeah on this point
14:37Jane has been in touch
14:37actually Martin
14:38she's saying
14:39my husband and I
14:39are legally separated
14:41amicable.
14:42We do have historical wills
14:43in place with each other
14:44as beneficiaries
14:45and are happy with that
14:46but does our legal separation
14:47affect inheritance tax or not
14:49as we are both still
14:50legally married?
14:52Okay.
14:53So let's just do a few things.
14:55First of all
14:56they're still legally married
14:56so they'll still be eligible
14:57for the inheritance tax rules
14:58as they stand
14:59because you're married.
15:00So it doesn't matter
15:00separation is not a legal status
15:02is it?
15:02No it's not.
15:03It's only really divorce
15:04it's a legal status.
15:05I just want to talk about
15:06inheritance and wills
15:08just for a second on this
15:09as we're going through.
15:10It's worth noting
15:11generally in England
15:13and Wales anyway
15:14when you get married
15:15your will becomes invalid
15:17so you have to do a new one
15:18isn't it Mary?
15:19That's correct yeah.
15:19Right.
15:20So you need to
15:21and then Matt
15:22England and Wales
15:23you'll notice
15:24they've all got different flags
15:24of where they are
15:25England and Wales
15:25if you divorce
15:27is your will still valid?
15:29So your will remains valid
15:30but any gifts
15:32to an ex-spouse
15:33or appointment of your ex-spouse
15:35as an executor fails.
15:36Your ex-spouse
15:37is actually treated
15:38as if they've died
15:38so that part of the will
15:40becomes invalid
15:41the remainder stays
15:42and that any gift
15:43would be subject
15:44to the intestacy rules.
15:45Okay.
15:46Scotland?
15:47Very much the same.
15:48Northern Ireland?
15:50Kieran?
15:50The imposition.
15:51Okay.
15:52So basically
15:52short note
15:53if you get divorced
15:54do a new will.
15:55Yeah?
15:56Yeah.
15:56And if you get married
15:57do a new will.
15:59Do you know?
16:00I've got a little treat for you
16:01seeing if it's Valentine's Day
16:02Happy Valentine's Day.
16:03Chocolates?
16:04Not quite, no.
16:05Let's meet Christina
16:06from Burton
16:07who has a partner
16:08of almost six years
16:08and although he's camera shy
16:09so he won't be appearing
16:10which is allowed
16:11I think you and everybody watching
16:13will enjoy this one.
16:14Exciting.
16:14Our life is very much
16:19about each other
16:20yeah
16:21literally like it was meant to be.
16:23My daughter was really excited
16:25because I think
16:26for her
16:27she could finally
16:27get me off her hands.
16:29My partner and I
16:29we're committed to each other
16:30in all but paper
16:32all but that signature.
16:34So in 2020
16:34which was the leap year
16:37you know
16:37ladies privilege
16:38I put together a gesture
16:41which kind of blew up
16:42in my face a little bit
16:43and still didn't happen.
16:45We've avoided the conversations
16:47about marriage
16:48for the past few years.
16:50Four years later
16:50thanks to our very own Cupid
16:52came a long awaited change.
16:54We were watching
16:55the Martin Lewis money show
16:57there was a discussion
16:59about the inheritance tax
17:00and if you're cohabiting
17:03doesn't count.
17:04You stand to lose
17:06quite a lot of money.
17:07We'd never considered
17:09the you know
17:10financial benefits
17:11of being married.
17:12Anything left
17:13to your married
17:14or civil partner
17:15is exempt.
17:16Not your common law partner.
17:17You live with them
17:18you've got 12 kids
17:19you've lived with them
17:1930 years
17:19doesn't matter under the law
17:21so my marriage
17:21or civil partnership
17:22has some real tax advantages.
17:24My partner said
17:25how about it babe
17:26let's maximise
17:27our tax allowance.
17:29And having waited
17:30you know
17:30four years
17:31for him to put right
17:31his mistake
17:32I literally just
17:34put my hand up
17:34because I had to
17:35hide the smile
17:36just you know
17:37just feel that glee
17:39that this is finally
17:40a topic
17:41and then just
17:42compose myself.
17:43I've known
17:43from the beginning
17:44that that's what I wanted
17:45so for me
17:46it's never been a question.
17:47He just said
17:48well I suppose
17:49all that's left
17:50is to get a ring then.
17:51I was not expecting
17:53a random conversation
17:54because of the
17:56Martin Lewis money show.
17:58Who says romance
17:58is dead?
17:59How about it babe
18:08let's maximise
18:10our tax allowance.
18:11How you doing?
18:14Christina
18:14thank you so much
18:15for that
18:15and do you know
18:16that's just one
18:16of very very many
18:18emails I've had
18:19over the years
18:19from people going
18:20we've been together
18:21years we never thought
18:21about getting married
18:22we're getting married
18:23now because it's
18:23financially advantageous
18:25and you know what
18:25you might think
18:26that's not romantic
18:27but putting yourself
18:28in a strong setting
18:28for you
18:29and your kids
18:29so that things
18:30are better for you
18:30actually there's a
18:32little bit of romance
18:32in there if you think
18:33about it.
18:33A little bit
18:34I know you've got
18:35loads more to come
18:36looking forward to
18:36the rest and we'll
18:37be back for benefits
18:39in part two
18:39but for now
18:40let's go to your view.
18:44So what is this
18:45week's question Martin?
18:46So if someone's
18:49going on a first date
18:50it is Valentine's
18:51maybe to somewhere
18:52Michelin starred
18:53or maybe just to
18:54your local cafe
18:54and the person
18:56paying the bill
18:57pulls out a
18:59discount voucher
19:00on the first date
19:01how would you view
19:03that?
19:03Is it a turn off?
19:05Is it acceptable
19:06or is it a turn on?
19:08After all
19:08financially savvy
19:09people are sexy.
19:12It's not a joke.
19:14Now you can vote
19:15on X now
19:16please do
19:16and even better
19:17post your comments
19:18using hashtag
19:18Martin Lewis
19:19especially if that
19:20has happened to you.
19:21Voucher on a first date
19:22hands up if you think
19:23it's acceptable
19:23and decent.
19:24Yeah.
19:25You're pulling a face
19:26hands up if you don't
19:27like it and you think
19:28maybe not.
19:29Or there's a few
19:29although in this audience
19:31the hands up for
19:32yeah are like
19:32yeah this is a money show
19:33and the hands up for no are like
19:34let's see what everybody
19:38thinks out there.
19:38Jeanette.
19:39Fabulous.
19:40What do you think?
19:41And also coming up
19:42more of the big
19:42financial benefits of marriage
19:44and we'll be talking
19:44divorce too.
19:45We'll see you in four.
19:46Welcome back to our
19:59Valentine special
20:00we're talking about
20:01the financial benefits
20:02of marriage
20:02many of which are hidden
20:03and are absolutely huge
20:04and we're going to be
20:04moving on to how to
20:06make divorce
20:07less cost
20:07less stress.
20:08Jeanette what are people
20:09saying online?
20:09Lots coming in online
20:10the poll is causing
20:11debate Martin
20:12your poll is causing
20:13debate but let's get
20:14straight into this
20:14with Tracy
20:15look at this
20:16just wanted to say
20:17thank you to Martin
20:18it was while watching
20:19one of your programs
20:20and helping my mother
20:21update her will
20:22that it made us think
20:23about ourselves
20:23after being together
20:24for 30 years
20:26we decided to get
20:27married in November
20:28last year
20:28thank you.
20:34You know why
20:34I've had something ready
20:35just play some music
20:36What next?
20:44Let's turn in
20:44with your big briefing
20:45right
20:46okay we've done
20:49the tax break
20:50we've done
20:51death is where
20:51marriage really counts
20:52next let's talk
20:53about savings
20:54and investing
20:56here we go
20:57so married couples
20:58can max both of
20:59their savings
21:00and investments
21:00allowances
21:01because you can
21:01freely move
21:02savings and investments
21:03between the two of you
21:04and there's no
21:05inheritance tax
21:05or capital gains risk
21:06so look
21:08let me be straight
21:09financial abuse
21:09is a real problem
21:10it's a subform
21:11of domestic abuse
21:12I'm only talking about
21:13if you're in a trusted
21:14relationship
21:14that's crucial
21:15if you're not
21:16just don't do this
21:16and don't be pushed
21:17or forced into it
21:18but the key to this
21:20is moving your money
21:21to make maximum use
21:22of each other's tax
21:23allowances
21:23so for example
21:25Jane and Janet
21:26are married
21:27why Jane chose
21:28to marry Janet
21:29when she's got
21:30such a similar name
21:30I don't know
21:31Jane could have
21:32married Penelope
21:32but these fictional
21:34characters you know
21:34they just won't do
21:35what you say
21:36so Jane is married
21:37to Janet
21:37Jane pays 40% tax
21:39so she can earn
21:40up to £500 a year
21:42of interest tax-free
21:43and a savings
21:43it's called
21:44the personal savings
21:44allowance
21:45that's what a
21:45higher rate taxpayer
21:46gets
21:47Janet is a basic
21:48rate taxpayer
21:48so she can earn
21:49£1,000 a year
21:50of interest tax-free
21:51Jane has built up
21:52£30 grand's worth
21:53of savings
21:54outside of ISIS
21:55because she's already
21:55maxed those out
21:56so Jane could give
21:58some of that savings
21:59to Janet
22:00because Janet
22:01has a bigger amount
22:02she can earn tax-free
22:03and together
22:04in a trusted relationship
22:05the two of them
22:06would pay less tax
22:07on their savings
22:07understood
22:08good
22:09just very quickly
22:10Martin on this
22:11Wynne has been in touch
22:12Wynne's asking
22:14I have a joint savings
22:14account with my partner
22:15does that mean
22:16£2,000 interest
22:17is tax-free
22:18probably in practice
22:20but I need to be
22:21slightly technical
22:21when you have
22:23a joint savings
22:23account
22:24the way it works
22:24is they split
22:26the interest in half
22:27usually
22:27and they allocate
22:28half to one partner
22:29half to another partner
22:30so if that's the only
22:32savings account you have
22:33and you're not earning
22:33interest elsewhere
22:34and you're both
22:34basic rate taxpayers
22:36you could earn
22:36£1,000 each
22:37but if you had another
22:38savings account
22:39it's just really
22:40it's not
22:40you can earn
22:41I know it sounds silly
22:42strange
22:43but it's not
22:43you can earn
22:44£2,000 together
22:45you can each still
22:46earn £1,000
22:46and they're just
22:47splitting it in half
22:48and allocating £1,000 each
22:49and it's better to think
22:50of it that way
22:50because it helps you manage it
22:51you get the point of making
22:52perfect
22:53I'm going to move on
22:54to my next one
22:55spouses can move assets
22:57between them
22:57without capital gains tax
22:59so if you're selling an asset
23:00if you're selling capital
23:01like you're selling shares
23:03or maybe a second home
23:04first primary residence
23:05doesn't count
23:06then you have £3,000
23:07per year
23:08tax-free allowance
23:09of capital gains
23:09used to be a lot more
23:10if you go over that
23:11what you could do
23:12is pass that asset
23:13to your spouse first
23:14and then get them to sell it
23:15so Janet and I
23:16are TV husband and wife
23:17Jeanette
23:19Jeanette and I
23:19get my wife's name wrong
23:20I'm getting confused
23:21it was Janet up there
23:22Jane's going to be furious
23:23so
23:24Jeanette and I
23:26are TV husband and wife
23:28so we'll count that
23:29as a marriage
23:30legally fine as a marriage
23:31the lawyers are all fine
23:32so
23:33we've got £10,000 of gains
23:35I'm going to give
23:36you £5,000
23:37then I'm selling it
23:38I'm using my £3,000 allowance
23:40and then Jeanette is selling it
23:41she's using her £3,000 allowance
23:42and more so
23:43because higher taxpayers
23:44pay
23:45a bigger amount
23:46of capital gains
23:47well
23:47if Jeanette was
23:48a higher taxpayer
23:49and I was basic
23:50she should give all the assets
23:51to me
23:51for me to sell
23:52as long as it's not using up
23:53my 20% allowance
23:54because that would be
23:54more efficient to do it
23:55so that's just the point
23:56on capital gains tax
23:57okay we can move on
23:58right
23:59next one
24:00this is funny
24:03especially when we've got
24:04a young couple in here
24:04who I'm sure are in love
24:05the way you're holding
24:06each other's hands
24:06it's beautiful
24:07but I need to be straight
24:09about this
24:09you have
24:11one of the things to remember
24:11is you've got more protection
24:12if the relationship fails
24:14so let's just bring that up
24:16marriage has legal protections
24:18cohabiting doesn't
24:20now this is particularly important
24:21if one of the two of you
24:22is a financially vulnerable partner
24:24now it could be as much
24:25as it often happens
24:27a woman's going off
24:27on maternity leave
24:28and she's not working
24:29and the man's working
24:30and there's a disequality
24:31in the finances
24:31of the relationship
24:32I'm going to move to
24:33our lawyer Matthew on this
24:34Matthew
24:35that's right isn't it
24:36talk us through the protections
24:37yeah it's very very different
24:38so on the divorce
24:40following marriage
24:41assets can be shared
24:42there's the sharing principle
24:43if those shared assets
24:44don't meet needs
24:45then you can
24:46give someone more
24:47to meet their housing needs
24:49there can be claims
24:49against income
24:50if people don't have
24:51enough income
24:51if you're cohabiting
24:53none of that applies
24:54the only claims are
24:55if you've contributed
24:56to a property
24:57and if there are claims
24:58for the benefit of a child
25:00there's no pension claims
25:01there's no splitting
25:02of savings accounts
25:03okay and I know
25:04it's that you're
25:05England and Wales
25:05I know it's similar Kieran
25:06in Northern Ireland
25:07but it's not the same
25:08in Scotland
25:09that is actually wrong
25:10for Scotland
25:10isn't it Alison
25:11that's right
25:11we do have a regime
25:12of cohabitation claims
25:13they're still very different
25:15from marriage
25:15so marriage gives you
25:16much more protection
25:17you start for presumption
25:18of sharing of assets
25:19with cohabitation claims
25:20the starting point is zero
25:22but there is a statutory scheme
25:23to make a claim
25:24in some circumstances
25:25but even so
25:25you're more protected
25:26in a marriage
25:26than you are cohabiting
25:27indeed
25:28it's really important
25:29to understand that
25:29Jeanette
25:30okay you can move on
25:31yep
25:31okay
25:32now
25:35I'd like to show you
25:36all my butt
25:36here we go
25:38what
25:39look
25:41the honest truth
25:42of all this
25:42is all these benefits
25:44I've talked about
25:44are only benefits
25:46if you're married
25:47or in a civil partnership
25:48not cohabiting
25:49but the dis-benefits
25:51the negatives
25:51to being in a couple
25:52funnily enough
25:53they apply
25:54even if you're not married
25:55even if you're just cohabiting
25:56examples
25:57for benefits purposes
25:58if you're living together
26:00even if you're not married
26:01you're assessed as a couple
26:01when you're assessing
26:03the maintenance loan
26:04for a child
26:05who goes to university
26:07if you're living together
26:08not married
26:09you count as a couple
26:10which could decrease
26:11the amount that you get
26:12so all the negatives
26:13are you a couple
26:14all the positives
26:15are you married
26:17or in a civil partnership
26:18again
26:19not me
26:20the way it works
26:20but it's worth understanding
26:21okay
26:22there's plenty more still
26:23to come
26:23we've got a warning
26:24about car insurance
26:24and of course
26:25your urgent call to action
26:26about energy bills
26:27coming up
26:27but let's move on
26:28to divorce now
26:29Martin
26:30okay
26:30so let's see
26:31what we can get through
26:32well I've got a lot
26:32I want to get through
26:33I need to say
26:34divorce is a very
26:35wide-ranging subject
26:37lots of questions
26:38and the rules do vary
26:40depending on which
26:40UK nation you're in
26:41and I'm doing this
26:42for the first time
26:43never done this type of show
26:44before
26:44it's a bit of an experiment
26:45we're going to do our best
26:46to give you a flavour
26:47of what you should be thinking about
26:48and answer some of your questions
26:49although I have to tell you
26:51when it comes to questions
26:51about divorce
26:52the answer is usually
26:53it depends
26:54so
26:55yeah
26:56yeah
26:56yeah
26:57here we go
26:58so let's just start
26:59we've got
26:59Rimmel tweeted
27:01are prenups
27:03legally valid
27:04in the UK
27:06or and it could also be
27:07post nuts
27:07which is where you make
27:08an agreement of matrimonial split
27:09once you're married
27:10as opposed to before
27:10you're married
27:11let's do England and Wales first
27:13yes they're valid
27:15they're not fully binding
27:16so you can't just put
27:17anything in them
27:18and then they're there
27:20forever
27:20they're carved in a tablet of stone
27:21but if you provided
27:23that both couples
27:24get independent legal advice
27:25and there's disclosure
27:26so that you know
27:27what claims you're giving up
27:28then as long as they're fair
27:30they're heavily persuasive
27:32and will generally be followed
27:33but that independent legal advice
27:34both got your own separate lawyers
27:36doing this is crucial
27:36and you know
27:38people often think of this
27:38as celebrities
27:39but it's actually mainly about
27:40second marriages isn't it
27:41they're really common
27:42they're becoming more and more common
27:43and second marriages
27:44particularly when you're looking
27:45to leave assets to children
27:46from a first marriage
27:47and you're looking to protect those
27:49from any claims on divorce
27:50are incredibly useful
27:51Alison
27:52the situation's different in Scotland
27:53that's right
27:54we have a culturally different approach
27:55we've had marriage contracts
27:57for centuries
27:58and in fact
27:58you can still go up
27:59to the high street in Edinburgh
28:00and see floor
28:00a Macdonald's marriage contract
28:01so generally
28:02as in Bonnie Prince Charlie
28:04indeed
28:04so generally
28:06we expect them to be binding
28:07unless they're
28:08very limited circumstances
28:09so they're generally binding
28:10in Scotland
28:11and I know Northern Ireland
28:12is the same as England and Wales
28:14isn't it Kieran
28:15yes
28:15that's correct
28:17yeah
28:17yeah great
28:18strongly indicative
28:20England and Wales
28:21more binding in Scotland
28:22but becoming more common
28:24and if you're looking to protect assets
28:25it is something to consider
28:26okay
28:27well up next
28:28Martin takes more of your questions
28:30plus that urgent warning
28:31on car insurance
28:32and energy bills
28:33and we'll see you after this
28:34hello
28:48welcome back
28:49it's our Valentine's
28:50marriage and divorce special
28:51now just a quick mea culpa
28:51I was talking about ISAs before
28:53and I said they're exempt
28:54from inheritance tax
28:55I wasn't specific enough
28:56I was talking about
28:57when you're leaving them
28:58to a spouse
28:59there's been some questions
29:00about that online
29:00no inheritance tax
29:02when you pass on an ISA
29:03when you're leaving it
29:03to your spouse
29:04because you can leave anything
29:05to your spouse
29:06exempt from inheritance tax
29:07apologies if I wasn't clear on that
29:08I want to go straight into
29:10the divorce questions
29:11we've got now
29:11because I want to try
29:12and maximise my time here
29:14so my next question
29:15is from Shelley
29:16she says
29:17unfortunately
29:18I'm about to go through
29:19the divorce process
29:20the biggest question
29:21I have is where to start
29:23so Mary
29:24let's ask that to you
29:25so I'd start by going
29:26to the advice now website
29:27we've got loads of information
29:29that talks you through
29:30all the big things
29:31that you're going to have
29:31to deal with
29:32so to start with
29:34I guess you've got to
29:35deal with the immediate problems
29:36you know
29:37everyone got somewhere
29:38safe to live
29:39enough money to pay the bills
29:40the kids are
29:40you know
29:41being cared for
29:41and getting everything
29:42they need
29:42you want to keep everything
29:44as amicable as possible
29:45because it saves you
29:46stress and money
29:47in the long term
29:48if you think it's going
29:50to be hard
29:51to come to those
29:52those longer term agreements
29:53try family mediation
29:54if you are on a low income
29:57you can get legal aid
29:58to pay for your
29:59to pay for family mediation
30:01and otherwise
30:02if one of the things
30:03you're disagreeing about
30:04is the children
30:06you can get a voucher
30:07from the government
30:08for £500
30:09to help pay the costs of it
30:11if you're on a low income
30:12yeah
30:13and that's in England
30:14and Wales
30:14and in Scotland
30:15and Northern Ireland
30:16there's still legal aid
30:17so you may be able
30:18to get legal aid
30:18if you're on a low income
30:19to do that
30:20let's just do
30:21Matthew
30:22the basic principles
30:23of the financial split
30:25which is what everyone
30:26thinks about
30:26it's sharing a need
30:28you mentioned it earlier
30:29isn't it
30:29that's right
30:30so when you're looking
30:30at capital
30:31you're looking at assets
30:32so house
30:33pension
30:33savings
30:34companies
30:34you've got the two principles
30:36sharing
30:36which is sharing
30:37any matrimonial assets
30:38any assets produced
30:39in the marriage
30:40or needs
30:41if one person
30:41needs a bit more
30:42than 50%
30:42the other person
30:43can get by
30:43with a bit less
30:44then you've got income
30:45you can't share
30:46future income
30:47but if someone
30:48needs some more
30:49gets some spousal
30:50maintenance
30:50just help them
30:51pay the basics
30:52so they've got
30:52a reasonable income
30:53then they can claim
30:54against income
30:55on that basis
30:55and I know again
30:56I just
30:57mainly Kieran's here
30:58to validate
30:58that it's similar
30:59in Northern Ireland
30:59to England and Wales
31:00it's not exactly
31:01the same in Scotland
31:02though is it
31:03Alison
31:03it's not
31:04we have a presumption
31:05of equal sharing
31:06of the assets
31:07acquired during
31:07the course of the marriage
31:08but we have much
31:10more of an emphasis
31:10on a clean break
31:12which would mean
31:13that we wouldn't
31:14have long term
31:14income claims
31:15in the same way
31:16as might be the case
31:17in England and Wales
31:17less of an emphasis
31:18on needs
31:19more emphasis
31:20on certainty
31:20well that's
31:21that's really important
31:22because I think
31:23when I've been listening
31:24I would say that
31:25England, Wales
31:26and Northern Ireland
31:27it's about fairness
31:28the divorce is all
31:29about fairness
31:30and splitting divorce
31:30fairness
31:31Scotland
31:32it's about certainty
31:33you know exactly
31:33what you're going to get
31:34there's much less
31:35wobbling around
31:36it may feel less fair
31:37but at least you've got
31:38a degree
31:38and those are just
31:39the priorities
31:40of each of the different
31:41legal systems
31:42fair summary
31:43yes
31:43yeah okay
31:44and it's just worth
31:45remembering that
31:45as we go in
31:45let's go to Tracy next
31:47Tracy says
31:48I'd like a really simple
31:49step-by-step process
31:50of how to put in place
31:52a final consent order
31:53as part of the divorce
31:54solicitors want a fortune
31:55to do this
31:56but if you're amicable
31:56what's the cheapest way
31:57you can do it for yourself
31:58so Alison
31:59let's go to you
32:00for Scotland first
32:01so our process
32:02is really different
32:02we don't have consent orders
32:04so for more than 90%
32:06of couples
32:06you would pull together
32:08the information
32:08about the assets
32:09and liabilities
32:09and negotiate
32:10an amicable
32:11agreement
32:12you would then
32:13put that into
32:14a binding agreement
32:15so you might
32:16have a solicitor
32:17assist with that
32:18but that tends to be
32:18sometimes it's just
32:19topping and tailing it
32:20that's then binding
32:22you don't need to
32:23involve the court
32:24in your finances
32:24at all
32:25if you then apply
32:27for divorce
32:27that's a separate
32:28standalone process
32:29so for most couples
32:31that would be the case
32:32so Matthew
32:34in England and Wales
32:35you have the consent order
32:37which is the sort of
32:38financial order
32:39of what's going on
32:40and then you've also got
32:41a clean break consent order
32:42talk me through the differences
32:43so a consent order
32:44is a court approved document
32:46that sets out
32:47how you're going to deal
32:47with the finances
32:48of the marriage
32:49after divorce
32:50the clean break part
32:52is the point at which
32:53there are no claims
32:54as a result of the marriage
32:55so most consent orders
32:57will be on a clean break
32:58you'll split the assets
32:59and that is it
33:00and the children
33:01paying for children separate
33:02because that's not about
33:02the marriage
33:03that's about child support
33:03correct
33:04child maintenance
33:04is dealt with separately
33:05normally
33:06it doesn't normally
33:06sit in a consent order
33:08although it can do
33:09a clean break
33:10means that's when
33:10the claims end
33:11so often that will be
33:13as you sell the house
33:14and split the proceeds
33:15where you've got
33:16spousal maintenance
33:17so if one person
33:18has to pay a monthly amount
33:19to the other for a period
33:20there isn't a clean break
33:21until that period terminates
33:23and if you don't do
33:23a clean break order
33:24then you win the lottery
33:2520 years later
33:26your old ex-spouse
33:28might come back
33:28and say
33:29I want some of the cash
33:29yep there's no long stop
33:30and I've got Kieran nodding
33:31because it's the same way there
33:32but you're putting a face
33:33aren't you Alison
33:34different in Scotland
33:35indeed
33:35no coming back
33:37in 30 years time
33:38okay
33:38it's all about clarity
33:39it's all about fairness
33:40it's a different way
33:41to work the system
33:42hopefully we're
33:42getting that point across
33:43Sharon got in touch
33:44one for Matthew
33:45if you do a divorce
33:46without a financial order
33:47without a consent order
33:48so it's England
33:49can you go back
33:50and do a clean break order
33:51after the decree
33:53absolute please
33:54yes
33:54I like that
33:55short and simple
33:56Mary
33:57still married
33:58separated since 2013
34:00I don't know where he is
34:02can I divorce him
34:03in his absence
34:04you can
34:05you have to make some efforts
34:06to track them down
34:07but if you genuinely
34:08can't locate your spouse
34:09you can apply for something
34:10called deemed service
34:11there's details on the government
34:12website about how to do that
34:14same in Scotland
34:15very similar
34:16different terminology
34:17perfect
34:17and Northern Ireland
34:18same as well
34:19I think
34:19sorry for having to do
34:20this like
34:21it's Eurovision
34:21isn't it
34:21it's the Eurovision
34:22of before
34:22but it's the way
34:24that we need to do it
34:24this is probably
34:26one of the biggest
34:27questions of all
34:27Gareth
34:28in the case of divorce
34:31where pensions
34:32may be shared
34:33and they may be shared
34:34how is it managed
34:36how is it split
34:37and we're definitely
34:38doing Eurovision
34:38on this one
34:39Matthew
34:40so pensions
34:41absolutely crucial
34:42often the biggest
34:43or second biggest
34:43asset in the case
34:44and people overlook them
34:45essentially
34:46there's a couple
34:47of different ways
34:47to deal with them
34:48but the main one
34:49is through
34:49a pension sharing order
34:51and what happens
34:52with that
34:52is the person
34:53with the lower
34:54pension fund
34:55can claim a percentage
34:56of the person's
34:57higher pension fund
34:58usually an amount
34:59that will equalise
35:00either the capital
35:01or the projected income
35:02depending on the type
35:03of pension scheme
35:04that percentage
35:05comes out
35:06of the payer's fund
35:07and it can be invested
35:08in a fund
35:09by the payee
35:10it means that the pensions
35:11are immediately separated
35:12and you can both then
35:13contribute to the funds
35:15or draw down
35:15in accordance with
35:16the scheme rules
35:17without any impact
35:18on the other schemes
35:19same way as you would
35:19if it were your own pension
35:20and always had been
35:21your own pension
35:22let's do Northern Ireland
35:23next
35:23Kieran is it roughly similar
35:24yes exactly the same
35:26good
35:27right
35:28I'll take that one
35:29Alison it's not going
35:30to be similar
35:31of course not
35:32so pensions are
35:34exactly as Matthew says
35:35they're one of the
35:36key assets
35:36we treat them as an asset
35:38like any other asset
35:39and we include them
35:40in the assets
35:42and liabilities
35:43calculation that we're doing
35:44we value all of those
35:45assets and liabilities
35:46at the date of separation
35:47and then they are subject
35:49to equal sharing
35:50that can be by agreement
35:51or by court order
35:52okay
35:53are you following this so far
35:55it's complicated
35:56as I say
35:56it's about giving you
35:57a flavour of how it works
35:59let's move on to Darren
36:00because this is another one
36:01that has a big devolution change
36:03Darren
36:05what is classed
36:06as a pre
36:07marital asset
36:09I have a second home
36:11bought 13 years
36:12before we were married
36:13so I would presume
36:15generally the way
36:16to protect those
36:16if you want to
36:17is a prenup
36:18or a postnup
36:18first of all
36:19but we're assuming
36:20there is no prenup
36:21or postnup
36:21so what is the case
36:23in England and Wales
36:24if you have something
36:26that you're bringing
36:27into the marriage
36:27and it's a pre-marital asset
36:29what happens to that
36:29on divorce
36:30so going back
36:31to the needs
36:32and the sharing principle
36:33that we work on
36:34non-matrimonial assets
36:35so pre-acquired assets
36:36like this house
36:37they're not available
36:39to be shared
36:39you can't have
36:40an automatic claim
36:41against them
36:41however
36:42if a party's needs
36:44require that
36:44that asset's invaded
36:45because there aren't
36:46enough assets to go around
36:47then you can have
36:48a claim against it
36:49it's also important
36:50to say that
36:51pre-marital assets
36:52can become marital assets
36:53if in this example
36:55they'd lived in the property
36:56together
36:57and it'd become
36:57the family home
36:58it could well be treated
36:59as a marital asset
37:00now Kieran
37:01I'm coming to Northern Line
37:02if you wonder why
37:02I don't go to Northern Line
37:03first it's because
37:03it's remote
37:04and the line isn't
37:05quite as good quality
37:06Kieran again similar
37:07it's a similar position
37:09although
37:10everything effectively
37:11goes into the pot
37:12and then we try
37:13and negotiate our way
37:14out of it again
37:15okay
37:17so there is a slight
37:18difference to the
37:19you've got a bit of a principle
37:21and there's less of a principle
37:22the pre-marital assets
37:23but pre-marital assets
37:24are much firmer
37:26in Scotland
37:26aren't they?
37:27they are much firmer
37:28so we look at the date
37:30of acquisitions
37:30what we're sharing
37:31is the assets
37:31and liabilities
37:32that were acquired
37:33between the date of marriage
37:34and the date of separation
37:35if you had
37:38in this example
37:39a house bought
37:3913 years before the marriage
37:41before these people
37:41were a couple
37:42it's not in
37:43the assets that are
37:44being divided
37:45you could however
37:46convert it into
37:47matrimonial property
37:48if you sell it
37:49and it becomes cash
37:50and that's a good example
37:51of where the Scottish court
37:52might depart
37:52from the principle
37:53of 50-50 sharing
37:55we could take that
37:55into account
37:56very quickly
37:57just before I finish
37:58Matthew
37:58if you and your spouse
38:00agree everything financially
38:01and you just need
38:02to make a consent order
38:03do you need two lawyers
38:04is it possible
38:05to use one lawyer
38:06to do it?
38:06there are some firms
38:07who will do
38:08a one couple
38:09one lawyer service
38:10where you're completely agreed
38:11and you just need
38:12to draft the court documents
38:13and that's cheaper I presume
38:14yes
38:15and that is where I finish
38:16give them a huge round of applause
38:17yeah
38:18thank you
38:20a massive thank you
38:25to our specialists
38:26and after the break
38:27that urgent warning
38:28for car insurance
38:29and energy bills
38:30plus how to beat
38:31the Microsoft 365 price hike
38:33we'll see you after this
38:34thank you so much
38:36welcome back
38:49shall we have some news
38:50you can use?
38:50let's do it
38:51let's play this thing
38:51okie dokie
38:55so I have a perverse warning
38:56for you
38:57about car insurance
38:58my warning is
38:59the car insurance prices
39:00have dropped
39:02yeah
39:0316% year
39:05but hold on
39:06I wouldn't cheer too soon
39:07so they're down
39:0816% year on year
39:10but if you still look
39:11where they were in 2021
39:12around £500 on average
39:14they're still over £800 now
39:15so you know
39:16they're 60-70% up
39:17on where they were
39:17so why am I warning you
39:19that prices are down?
39:20very simple
39:21what I'm hearing a lot
39:22these days
39:22is people do their renewal
39:23they're so used to prices
39:24going up
39:25when they get a renewal
39:26that the same price
39:27they go yay
39:27my renewal hasn't gone up
39:28I'm sorted
39:29no
39:29if your renewal is the same
39:32the market has dropped 18%
39:33you're paying too much
39:35even if it's a little bit cheaper
39:36you're paying too much
39:38so my warning
39:39is against complacency
39:40if you're getting your renewal
39:42and it's not giving you
39:43a good saving
39:44on what you were paying
39:45well in fact
39:46I'd always say
39:46don't auto-renew
39:47don't settle
39:49combine comparison sites
39:50because they sell
39:51different insurers
39:52and they have different deals
39:53even on the same insurers
39:53and it's worth doing
39:54and the perfect time
39:56to get your quotes
39:57is 26 days
39:59before the renewal
40:00literally
40:01insurers price it cheaper
40:03because the people
40:03who price it at that point
40:04are likely to be
40:05a lower risk
40:06than the people
40:06who leave it
40:06to the last minute
40:07so between 20 and 30 days
40:09is fine
40:0926 days is the perfect
40:10sweet spot
40:11and we did 5 million quotes
40:12to work that out
40:12and get that in your diary now
40:14because sometimes
40:15it won't give you
40:15renewal notice
40:16until two weeks
40:17before renewal
40:17but you want to do it
40:1826 days before renewal
40:19and don't be complacent
40:21if it comes in
40:22and it's the same price
40:23you get why
40:24it's a perverse warning
40:25good stuff
40:26and you sent me
40:27a success on this
40:28coming from Lorraine
40:29and she says
40:30I've just received
40:30a renewal quote
40:31last year I paid
40:32£362
40:33this year they quoted
40:34£340
40:35you said to compare
40:37so I went on two sites
40:38and found a new provider
40:39for £281
40:40so thank you so much
40:42for saying to do this
40:4326 days before
40:43the insurances
40:44brilliant
40:44I actually
40:47I mentioned this
40:48on this morning
40:49the other day
40:50and that comes on
40:51the back of me
40:51mentioning the same
40:52thing on this morning
40:52it's not an old one
40:53it's a very new one
40:54but came to a different
40:55programme
40:55shh
40:55don't tell anyone
40:56right let me move on
40:57I've got four
40:59quickies for you now
41:00first do you have
41:01an electric vehicle
41:01if so there's a trick
41:02to get an extra year
41:03tax free
41:04from the 1st of April
41:05EVs will start paying
41:06vehicle excise duty
41:07road tax as it used
41:08to commonly known
41:09it isn't
41:09it's vehicle excise duty
41:10typically £100 plus
41:11but if you retax now
41:13on gov.uk
41:14it's free
41:14so you get a year
41:15from the date
41:16that you retax
41:16so you know
41:17you might want to
41:18leave it till the
41:18last day of March
41:20and then it'd be perfect
41:20but if you just want
41:21to make sure you do it
41:22you can do it now
41:22and you get a year longer
41:23now the crucial bit
41:24of this
41:24is you can retax
41:26at any time
41:27even if you only did it
41:28two months ago
41:29you can do it again now
41:30you have to pay each time
41:31but it's currently free
41:32so there's nothing to pay
41:33so effectively
41:33there's a loophole
41:34that says
41:34just go and do your retaxing
41:36as near to that deadline
41:37as possible
41:37and you get an extra year
41:38for free
41:38got it?
41:40good
41:40next
41:41beware
41:41if you have Microsoft 365
41:43it's sort of modern
41:44online version of Office
41:45it's auto adding
41:46a £30 AI software
41:48at renewal
41:48if you don't want it
41:49you have to ensure
41:50your plan isn't on auto renew
41:52which you do
41:53via its subscriptions page
41:54now if you see cancel
41:56it means you are on auto renew
41:57and if it says
41:58turn on billing
41:59that means you're not
42:00on auto renew
42:01which is what you want to be
42:02then you just downgrade
42:03to its classic plan
42:04but do that quickly
42:05which is the same plan
42:06without the AI tool
42:07and if you don't
42:07assume you don't want it
42:08you may want it
42:09but that's only available
42:10for a limited time
42:11and we're going to be
42:11including it
42:12now
42:12if they have already
42:14charged you the new price
42:16then I would strongly suggest
42:17you request a partial refund
42:19as soon as possible
42:21that's going on
42:22thank you
42:22thank you
42:23let me go on
42:25this one's really important
42:28there are hundreds of thousands
42:29of people still on
42:30the older tax credit system
42:31do not ignore
42:33the letter you're about to get
42:35or may have already got
42:36from Department for Work and Pensions
42:37the tax credit system
42:39is being turned off in April
42:40DWP is posting letters
42:43saying you must apply
42:44to switch to universal credit
42:45do not ignore this
42:47if you do
42:48you could have your benefits stopped
42:50and even if you then
42:51reapply to get your benefits
42:52you will have lost
42:53the transitional protections
42:54that give you more money
42:55and I'm hearing
42:56up to one in three people
42:58are not listening to the letter
43:00and are seeing their benefits dropped
43:02if you know someone on tax credits
43:03or you're on tax credits
43:04do not please
43:07ignore that letter
43:08it could be devastating
43:09financially for you
43:10okay
43:11let me move on
43:12to something different
43:12you all know what this is
43:15I've done it many times
43:16on the show before
43:16this is the famous
43:18energy price graph
43:20this is how
43:21the energy price cap
43:22which dictates the price
43:2380% of homes in England
43:24Scotland and Wales
43:25pay for their energy
43:26unless you're on a fix
43:27or a special tariff
43:28this dictates your price
43:29and while it's called a cap
43:30they all price right up
43:31to the maximum
43:31it moves every three months
43:32this is how it has moved
43:34now a couple of months ago
43:35I was saying
43:35it might go up 1%
43:36last time we did the show
43:37I said I thought it'd go up 3% in April
43:39I've just had the latest predictions
43:40so these are three different predictions
43:46from EDF, EON and British Gas
43:48but you see they're all pretty close
43:49the now April prediction
43:51and the assessment period
43:52which is three months long
43:53ends in three days
43:54so this is pretty solid
43:55is between 5% and 7% up
43:58on the 1st of April
44:00and then after that
44:01because wholesale rates have gone up
44:02although the further out you go
44:03this is more crystal ball gazing
44:04this is pretty firm
44:05this can move a lot
44:07right
44:08up again
44:09right up
44:10getting right back up
44:11nearly to the heights
44:12that we had last year
44:13it's going to upset
44:14a lot of people
44:15this is a rise of about
44:1680 to 100 quid
44:17if this happens
44:18it's not guaranteed
44:18but if this happens
44:19so what should you do
44:21first of all
44:24there are only two
44:25cheapest fixes left
44:26most have been pulled
44:26from the market
44:27and I don't think
44:28they will be around
44:28for very long
44:29there's one from
44:30Ecotricity
44:31and one from
44:31Outfox the market
44:32they are both
44:33now just think about this
44:34over 6% less
44:35than the current cap
44:37which is about down here
44:38so if the prices go up
44:39in April
44:40as I've talked about
44:41then look at the amount
44:42you'll be saving
44:43it's about £200 a year
44:44on a typical bill
44:45typical bill doesn't exist
44:46but that's just giving you
44:47an idea of simple scales
44:48of magnitude
44:48now the problem is
44:50if you go into a comparison site
44:51most comparison sites
44:52will not show either
44:52of these two cheap tariffs
44:53one of them outfox the market
44:55doesn't pay comparison sites
44:56so most comparison sites
44:58hide by default
44:58so ones don't pay them
45:00to get them to show them
45:01you have to click show all
45:02there is one that's
45:02whole of market by default
45:03that doesn't hide them
45:04the other one
45:05Ecotricity is only available
45:06on one comparison site
45:07and only available
45:08or direct
45:08so you have to go
45:10and do a bit of research
45:10if you want to see
45:11these two tariffs
45:12that are out there
45:12now we are back
45:13on Tuesday the 25th of February
45:15which is the day
45:16they're going to announce
45:17the new price cap
45:18and I have the boss
45:20of Ofgem on here
45:21to answer your questions
45:22which I suspect
45:23will primarily be about
45:24why
45:25why
45:27but
45:27while I will give you
45:28solutions that day
45:29on what you can do
45:29on your energy
45:30and I'll answer
45:30all your questions
45:31these cheapest tariffs
45:32will almost certainly be gone
45:33and the fixes
45:33I'll be talking about
45:34then will almost certainly
45:35be more expensive
45:36than they are right now
45:37so you
45:38if you can
45:39get off the pants cap
45:41go and do a comparison
45:42now
45:42and lock yourself in
45:44I mean I can't guarantee
45:44it'll be the cheapest
45:45if we look back
45:45lock yourself in
45:47at the cheapest rate
45:47you can get now
45:48to try and forestall
45:49those price rises
45:50that are coming
45:51they're telling me
45:52the time's nearly over
45:53but I'll be talking
45:54in two weeks time
45:55it'll be on a Tuesday
45:56but ultimately
45:57that maybe I'll be too late
45:58that's it
45:59we've run out of time
46:00for the poll
46:00so do take a look
46:01online
46:02take a look
46:03basically most people
46:04are in favour of using
46:04discount factors
46:05thanks to our specials
46:06thanks to you
46:07bye bye
46:07it's
Recommended
46:41
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