Financial scams have become much more prominent and sophisticated in recent years. A few examples that are concerning include those purporting to be HMRC, phone companies, and banks. These are all companies that people rely on and trust.

With HMRC, we have recently seen an example of a scam letter, and at first glance, the letter would appear to be genuine, with the HMRC logo and the contents laid out in the same format as usual HMRC correspondence. However, this letter was in fact not genuine, and there were a few signs which indicated that it was suspicious. I have highlighted a few points to look out for below:

• No contact phone number on the letters – HMRC would always include this, but the scammers don’t want you to call HMRC to verify or discuss the letter (as you’d find out it isn’t genuine)

• Requesting copies of recent accounts, VAT returns or anything else that HMRC can obtain themselves from their own records.

• Asking for proof of ID – HMRC would never ask for this.

• Any email address they give as their own should always end with “.gov.uk”. No government agencies (which includes HMRC) will use a .com or .org domain, it will always be .gov.uk.

• HMRC would always request the information or documents to be sent by post, never emailed to them.

Scammers will also send texts, make phone calls and send emails too. Within these communications, there are a few other signs to look out for, that are more generalised and apply to all different types of scams:

• Threatening language: scammers may threaten lawsuits, arrest warrants, or demand immediate payment 

• Pressure to act quickly: scammers may try to pressure you into acting without thinking 

• Unprompted contact: scammers may contact you out of the blue 

• Requests for personal information: scammers may ask for your bank or credit card details, National Insurance number, or other sensitive information 

Between 1 February 2024 and 30 June 2024, Which? has collected the data from “Who Called Me”, a company that collects reports of suspicious phone numbers. The table below shows the top 10 scam calls search during that time:

1. Phone contract scam                                    3,419,100

2. Debt scam                                                       1,568,776

3. Utility scam                                                     1,494,591

4. Energy scam                                                   1,428,304

5. Billing scam                                                     1,298,175

6. Insulation scam                                              1,044,064

7. Bank scam                                                          987,423

8. Life insurance scam                                          943,588

9. Housing repairs scam                                       801,206

10. Survey scam                                                     699,866

If you’re ever called by a number that you’re not sure of, you can visit “Who Called Me” and search the number. This will bring up the history of that number and a summary, often including a note to say whether or not the number is likely to be linked to a scam.

So, what can be done to avoid falling victim to a scam?

• Be skeptical when someone contacts you out of the blue. Don’t give out any personal information that can be used by others to access any of your accounts.

• Don’t click on unknown links you have received in emails. Clicking the link can be the ‘way in’ for scammers.

• Ensure you keep your devices updated – software updates can include important security measures.

• Enable multi-factor authentication for log-ins. This can add an additional layer of protection for you.

• If someone mentions a company name they are working for, research the company name. Often there will be reports and information on how this could be connected to a scam.

• Look out for suspicious payment requests. Scammers will ask for payments via cash, gift cards, cryptocurrency and other forms of payment that are harder to trace.

• Don’t refund or forward any overpayments that are made to you. Once done, the original payment will be fraudulent and taken back later, leaving you out of pocket.

• Sign up for a free credit monitoring with Experian to get alerted when there are unexpected changes in your credit report.

Eldon welcomed Charlotte Scott as a new addition to the paraplanner team this month.

Below is a short introduction from Charlotte:

“I began my career in the financial services industry in 2020 as an Accounts Assistant and in 2022, I transitioned into a Paraplanning role, where I discovered that a customer-focused career path was the right fit for me.

I joined Eldon at the start of 2025, drawn to their strong focus on clients and overall approach to holistic Financial Planning.

I am currently working towards my Diploma in Regulated Financial Planning and hope to progress to Chartered status while at Eldon.

Outside of work, you can often find me on the couch with a good book, or in the kitchen trying new recipes. As well as this, I enjoy spending time with my partner, friends and family.”

Charlotte is an excellent addition to the team, and we can’t wait to see her achieve her goals and succeed with Eldon.

The deadline of 31st January 2025 for submitting Self Assessment tax returns for the 2023/24 tax year is fast approaching. If you need to submit a tax return, it is important to do so by the deadline to avoid paying late filing penalties.

You can check whether or not you need to complete a tax return for the 2023/24 tax year by using the government tool.

If this is the first time you are submitting a Self Assessment, the deadline to register without penalty was 5^th October 2024. If you have not registered yet, it is therefore important to contact HMRC as soon as possible to receive your Unique Taxpayer Reference (UTR) to enable you to submit your tax return.

If you are registered to submit a Self Assessment tax return but no longer need to complete a return, you must inform HMRC. If HMRC agrees, they will send a letter confirming you do not need to file a return. You may have to pay a penalty if HMRC do not agree before the Self Assessment deadline of 31^st January 2025, and you do not submit a return on time.

If you submit your return later than the deadline, you will typically face a £100 penalty if the tax return is up to 3 months late. Should the return be submitted over 3 months late, you may be faced with a larger penalty.

Any payment of tax required by 31^st January 2025 will have interest applied if paid after this date. This rate is currently 7.25% (Bank of England Base Rate plus 2.5%). If the payment is made more than 30 days after the deadline, you may also be faced with greater penalties at a percentage of the tax owed.

You can complete your Self Assessment tax return online here.

You can pay any outstanding Self Assessment tax bill online here.

For a fee, professional accountants can help you complete your Self Assessment, or complete it on your behalf, however you will need to provide them with the relevant figures. Please get in touch if you would like a recommendation for accountants we have previously worked with.

Eldon’s office will close at 2:00 pm on Tuesday 24th December, reopening on Thursday 2nd January 2025.
If you have any urgent questions over this period, please email them to enquiries@eldonfinancial.co.uk and we will make sure that you get a response.

We would like to wish everyone a very Merry Christmas and Happy New Year.

Thirteen may be an unlucky number for some but not for Eldon. For the 13^th year in a row, we have made the 2024 New Model Adviser Top 100!

Citywire’s accolade marks the top 100 advice firms across the UK, recognising outstanding achievements and prominent leaders in the financial planning profession. We are proud to have featured every year since its inception, and would like to thank our team, as well as our clients, for getting us here!

On 30^th October, Chancellor of the Exchequer Rachel Reeves will deliver the Autumn Statement, the first delivered by a Labour government in 14 years. There has been much speculation in the media as to what may or may not be included in that statement, given tax rises on ‘working people’ have been ruled out. This speculation can be unhelpful, as it can cause people to take action in an attempt to mitigate against potential changes, which may or may not come to fruition.

One example is the rumour that tax free cash lump sums from pensions could be reduced. Drawing tax free cash from a pension is an irreversible decision and could lead to individuals being worse off in the long run.  Pensions still offer a very tax efficient environment for long term capital and pulling out tax free cash could see the capital left in a savings account, with less long-term growth. Alternatively, if funds are reinvested outside of a pension, future dividends, interest and growth would then be potentially subject to tax, which would not currently be the case within a pension. This is just one example, however.

Whilst legislative changes can alter some aspects of Financial Planning and some may wish to take steps sooner and prior to any potential changes, we cannot second guess what these changes may be. We can only ever work within the legislation that exists at present, planning effectively around this. If legislation does change, then as Financial Planners, we would look to make the best use of the new legislation within clients’ planning too.

A Financial Plan should be reviewed on a regular basis, taking account of changes to not only legislation, but also clients’ circumstances and changes in any short-term and long-term goals. In the same way trying to time investment markets and second guess them often proves futile, the same is true of legislative changes.

We cannot control the outcome of the statement or legislative changes, so worrying about things is not particularly helpful. Instead, focusing on the decisions and actions that can be taken following this, working towards planning goals and objectives (the things that we can control) to deliver the best outcomes, is the best use of time.

We are eagerly awaiting the Autumn Statement, not least as it will put an end to so much speculation. Our next news article will summarise any important changes for our clients.  

In the meantime, as the old saying goes, keep calm and carry on!

One of our Chartered Financial Planners, Adam, has now completed his Coast-to-Coast walk, raising awareness for Williams Syndrome, a genetic condition that affects 1 in 10,000 individuals.

Despite facing inclement weather that included heavy rain and strong winds, Adam pressed on and completed over 120 miles during a six-day period.

Adam is grateful for all donations so far, which made the challenge worthwhile! For further information on the fundraising, please find below the link to Adam’s GoFundMe page:

https://www.gofundme.com/f/coast-to-coast-walk-for-williams-syndrome

In recent times we have seen a rise of ‘Finfluencers’ on social media, particularly with the younger generation, who are predominantly more active on social media. Finfluencers are social media influencers who offer advice and information on various financial topics.

Financial education/literacy is becoming more and more important in an increasingly complex financial world, however, a lack of financial education in the school curriculum means the younger generation is turning towards things such as social media for such knowledge. The danger in this, however, is that whilst some Finfluencers offer genuinely helpful tips, some are uninformed, and there are also cases of scammers posing as Finfluencers.

Finfluencers also don’t typically have any financial qualifications and are often not regulated to give financial advice. It can be hard to spot genuine, useful information from the scams, and the Financial Conduct Authority (FCA) is concerned that some ‘Finfluencers’ are not labelling content correctly or promoting products without understanding how they work, or the associated risks.

 In July of this year, the FCA pressed ahead with charges against 9 individuals due to their involvement in the promotion of an unauthorised foreign exchange trading scheme on social media. 7 of these individuals were ‘Finfluencers’, and their court dates are set for the future.

That being said, there are some good, informative ‘Finfluencers’ who help people understand jargon, how certain financial products work, explain real-life case studies and give examples of these. This can help bridge the knowledge gap and increase financial education and literacy amongst younger people. However, personal finance is just that, personal to the individual, so it is important to research what is being said and consider how much of the content is relevant to your own circumstances and goals.

Interestingly, a recent survey also showed that 35% of Brits would consider using AI chatbot ChatGPT for financial advice in 2024, up from 27% in 2023. However, there has also been an increase in the number of Brits who would be against using it, up from 35% in 2023, to 43% in 2024.

Whilst it is good that people are thinking about and discussing Financial Planning, the use of AI and Finfluencers can ultimately mean that you do not receive all of the information required to make a fully informed decision that is appropriate for your own circumstances. At Eldon, we are advocates of goals-based personal planning, which focuses on achieving what you want in life, rather than just numbers on a screen. Financial planning is about making capital work towards real, tangible goals over time, and this is ever evolving, as goals and circumstances change and is never a ‘one and done’.

Following the end of a tax year, if you have paid either too little or too much income tax, HM Revenue and Customs (HMRC) will provide you with a P800 tax calculation to confirm your position.

Previously, if you were due a refund of overpaid tax, a cheque would be issued to you automatically within 21 days of the calculation being sent, if this hadn’t been claimed online. However, since 1^st June 2024, cheque payments are no longer automatic. Instead, individuals will need to claim their tax refund online, by telephone, or via the HMRC app. If left unclaimed, the refund will not be received.

Typically, you have four years to claim a refund, after which the tax year becomes ‘closed’ to claims and it is not usually possible to receive the payment unless it can be proven that it arose due to ‘official error’ on HMRC’s part. For instance, if a refund is due for the 2020/21 tax year, you typically have until 5^th April 2025 to claim this.

The current payment options for receiving a refund are:

• Bank transfer payment
• Cheque payment

At present, the timescales for receiving refunds are:

• 5 working days if you have claimed online and requested a bank transfer
• 6 weeks if you have asked HMRC to send you a cheque

For more information on the refund process and how to claim, you can visit: https://www.gov.uk/tax-overpayments-and-underpayments/if-youre-due-a-refund

At Eldon, we regularly check our clients’ tax positions and documentation to ensure that everything is as expected. It is important that individuals keep on top of their affairs in this respect, particularly now that the onus of claiming tax overpayments has shifted towards the taxpayer.

If you would like to speak to a member of the team about any of the above, please don’t hesitate to get in touch.

This week, we would like to take the opportunity to highlight the 1407(Newton Aycliffe) Air Cadets, a group close to home who aim to ready the next generation for the world of work.

The Newton Aycliffe Squadron endeavours to promote leadership, teamwork and citizenship skills among young people aged 13 to 17, alongside a practical interest in aviation. Cadets undertake a diverse range of activities in doing so, which aren’t limited solely to flying. Other ventures include rock climbing, mountain biking, target shooting, and other sports.

Members also have the opportunity to work towards recognised awards and certificates, such as the Duke of Edinburgh’s Awards and BTECs in aviation and music, providing valuable life skills.

First aid training is another essential element to cadet training, vital for squadron activities but also useful day-to-day. Eldon recently supported the Squadron in purchasing an extensive range of first aid equipment, with the goal being to ensure that cadets are well-trained in delivering this if ever required.

We are impressed with the Squadron’s wide-reaching support and vision for young people, and are pleased that we could play a part in helping them to deliver a positive overall experience to those involved.