The former Chancellor of the Exchequer, Denis Healey explained the difference between tax avoidance and tax evasion in this way:-“The difference between tax avoidance and tax evasion is the thickness of a prison wall.’ Tax avoidance is legal.

Tax avoidance is finding ways to ensure that you pay less tax than you would normally be expected to do on earnings, profits or gains, legally. For example, if you have some savings and don’t want to pay tax on the interest from them, you could open an Individual Savings Account or buy National Savings bonds or make deposits into National Savings accounts. If you do this, you don’t pay tax on the interest which accrues. This is a perfectly legally acceptable way of not paying tax.

Someone who pays the right amount of tax on money declared is ‘tax compliant’ i.e., that person is paying the amount the law requires. However, he/she is not paying tax on all the money he/she has earned or gained that year. A person who refuses to pay a percentage of tax because of objections on moral grounds of a government’s policies (for example the amount of the defence budget) is known as a “tax protester”. This is not classed as tax evasion or avoidance, but is in a separate class.

Tax havens are still operating, and those who make use of them are classed as tax avoiders. Millions of pounds are lost by Her Majesty’s Revenue and Customs service because of these tax havens for the wealthy every year. However the UK government has been reluctant to legislate against these over the years. Such havens are the Channel Islands, some of the Caribbean islands and Switzerland. There are also off-shore companies set up by the very wealthy, so that they do not pay tax in Britain, which is higher than taxes in some other countries. In the past there have been ‘tax exiles’ wealthy Britons who have chosen to live in countries outside the UK so that they were not liable to pay high British taxes. When this kind of money leaves the country, economic damage ensues, and so the government tries to make tax laws easier to attract those tax exiles back to Britain as would any government.

Of course a lot of planning goes into setting up an off-shore company, and not everyone can do this, but if you consider the case of the entrepreneur Richard Branson, whose money is tied up in his companies, he could retire, liquidate his assets and pay virtually no taxes if he were to move abroad. Of course he may not do this and might willingly pay UK taxes, as the laws might have changed by the time he retires.

Independent financial advisers can help you avoid paying taxes, as this is not deemed suspicious. If you earn a lot of money, you may object to paying high taxes. However, those with a social conscience will realise that by avoiding paying taxes they are depriving others of services such as the National Health Service, the police force, etc.

Learning to drive cars is the most important thing a person needs to do as this enables us to do so many things. However there are certain qualifications that one should fulfil before becoming a perfect driver.

People can’t just expect to drive cars without practicing as learners because it’s not so easy to understand how the controls work and how to properly use them. It’s quite necessary to gain expertise in your driving skills on roads so that you gain an insight into the actual driving conditions. It’s also important to get insurance because anything can happen once an inexperienced person sits behind the wheels, not to mention that it’s a legal requirement as well. Many people tend to opt for an annual learner driver insurance policy although that’s not mandatory. However with a yearly contract, you can’t get rid of your policy once your learning is complete and that’s why a temporary policy is better suited for learners.

It’s also tough to get the right kind of insurer who can cover such risks. Most of the times, companies hate to cover such learner drivers as they don’t have a full fledged driving license. Such new drivers also face so many expensive insurance quotes owing to their lack of experience. But, some companies do provide a reasonable insurance through which it’s possible for a person who is yet to imbibe driving skills to drive anyone’s car. Although one might think about not taking such insurance, accidents can happen and you also don’t want to have the police after you before you even get your driving licence.

Private driving practice is necessary and the Driving Standards Agency (DSA) of UK recommends it to learner drivers. It believes it can help them in clearing, the driving test for acquiring the license and will make them better drivers as well.

Any learner driver in UK should have a supervisor if they haven’t yet received their full UK driving licence. The supervisor’s job is to watch over the learner as he starts driving on roads. This supervisor should be more than 21 years old. Apart from that, he should possess a valid driver license and he should have been driving for a minimum period of 3 years. If somehow, you can’t drive in any situation during your private practice sessions, he should be able to tell you how to stop the car safely.

The claims of learner driver insurance can also include replacement of the vehicle driven by the learner in case of a mishap if it had been acquired only a year back. Its owner should only be its registered keeper. The replacement only applies if the mishap happens in UK. A courtesy car can also be made available if the vehicle has gone for repair to a garage after sustaining some minor damages. Apart from substitution of damaged vehicle, such policies also cover the medical expenses of those injured.

The claims for such damages can vary with various insurance companies. After a learner has cleared the test, his insurance ends. His last coverage under the insurance includes his return trip from the centre of the test to his house or wherever he keeps his vehicle. He can also get an insurance refund for the days in which he has not driven his vehicle. Some of the policies don’t allow such refund. After this insurance has ended, a learner should get any other driving insurance for safe driving if he continues to do so.

There was a time when people used pawn jewellery and other things of value to get quick cash before payday. As the recession has hit many people have been forced to sell most of their valuable possessions and having nothing else left to pawn but then came payday loans.

What are payday loans?
Pay day loans are loans that are taken out for a short period of time such as a few weeks to a month. It’s a way of having a small loan that doesn’t mean having to repay it back over a long period of time; most people take out a payday loan when they have a very tight month where essentials like bills cannot be paid. Payday loans are usually paid back after the end of the month but you can defer the outstanding payment for up to six months if you find it really hard.

Are payday loans better than a bank loan?
Yes and no, banks usually give you loans of thousands of pounds that are repaid over a minimum of 3 years, payday loans are for smaller amounts such as £100 till the end of the month. The interest you have to pay on your payday loan is ridiculous, you can pay as much as £30 for every £100 you borrow, the rates are higher if you defer payment for another few months as the amount payable can be a few hundred pounds more than you borrowed.

It has been estimated that 1.2million people have taken payday loans and many have fallen into the trap of not being able to pay it back. If you keep deferring payment your loan will only get bigger and bigger and this is how many people have now fallen into debt. Payday loans are very similar to loans you get from loan sharks they have a shorter deadline for repayment and sky high interest rates.

Some online payday loan companies are even charging people as much as £100 interest for each £100 loan they take so if you borrow £400 you will owe £800 at the end of the month. Payday loans should only be used as a last desperate resort as the trap and convenience of money on demand can become and easy solution for some. If you must take a payday loan shop around and find the best deal not the company that offers the most money, budget and pay back the money as soon as you can.

At the moment having insurance for properties that are let is not required by law but there are very good reasons to have insurance, to be on the safe side. The majority of householders already have home insurance but if you were to let the property the insurance in place will not usually cover any damages that re made if someone else was to inhabit the property.

Do I really need landlord insurance?
Its good practice to have it as you may only require minimum requirement such as building cover. Building cover will insure your property against any damage that might require the property to be rebuilt. If you would like further coverage such a fire, theft and damage you can opt for this too.

What is covered in landlord insurance?
As all insurance companies differ in what they cover it is worth checking what you want is realistic and affordable. Although when you let out a property a deposit is given for any damage that may be caused so you are covered in some way, the chances that the deposit would cover all damages are very slim. If you have insurance you could claim and have the property ready for rental again in no time.

Some of the things that landlord insurance covers

• Fire damage
• Theft
• Contents insurance
• Loss of rent insured
• Alternative accommodation insured

As all policies vary its best to check with your quote thoroughly to see if there are any clauses. For example some insurance provide you with accidental cover for free. The clause is this is only available if your tenant is a professional or is retired. So it may be best to make sure you would still be covered if you were not housing a professional or a retiree.

The competition for landlord insurance is high but many of the insurance companies are not known. It would be best to do some research before you accept a quote blindly and if possible go with a well known insurer as you know they won’t be filing for bankruptcy anytime soon. If you have more than one property you may benefit from further savings as the more you insure the bigger discount you get.

How much does landlord insurance cost?
Depending on the level of cover needed it should cost less than insuring your home, there is the added benefit that the excess for claims can be as little as £50.

It is estimated that 18% of pensioners that are due to retire this year will have to live on £10,000 a year. Although this doesn’t seem like much in some ways it should be enough to get by on. Most people of retiring age do not have a mortgage anymore so the bulk of income is still there. The most expensive thing after that is council tax as some flats have a monthly charge of £120.

When you are over 60 there are some things that get reduced so monthly bills should be less that when you were 20 years younger. For example you get a free travel card, free NHS prescriptions, free glasses, reduced gas and electricity bills, reduced TV licence and a reduction in council tax payments. Over the age of 60 many do not go on monthly shopping sprees and spend money unnecessarily so in reality you can live on £10,000 a year.

On the other hand those who do not have a private pension and are eligible for pension credit will have to survive on less than £6,500 a year. The reason the private pension forecast is lower than usual is because of the bad stocks and shares market that has caused the recession to plummet even further.

Many people who invested in the real estate business will also be hit as those who are trying to sell this year will find that there isn’t that much profit to be made. On top of that there are not enough buyers to go around so sellers have to drop their prices again to attract would be buyers. Capital gains tax is also set to rise so any profit made will also be questionable.

The best way to put money away for a pension is to go private and take advantage of ISA’s every year as you can save thousands in tax but put it towards your future when you retire. You could also look into buying a property abroad such as Spain, France and Cyprus as you can rent it out the times you won’t be there and have a holiday in your holiday home when you are. You may also benefit from taxes by having a second home abroad.

In 2008 the average pension was just over £18,000 this year it has fallen £16,500, that’s a 11.5% drop, the best pensions are from the government such as the council and NHS. Other private firms may also offer competitive pensions so shop around before you choose one. Its well worth planning your pension when you’re in your 20’s as many soon forgets and retires with nothing.

As newly qualified driver you need to sort out car insurance if you will be driving. If you already have access to a car i.e. your parents then they can add you as an additional driver. If however you have your own car then you will need to get quotes from at least 5 different insurance companies and compare them.

Getting car insurance for the first time drivers can be exciting as well as annoying. As a new driver you will find that in most cases the insurance costs more than the car itself. The best thing to do is to find a car that you like and get some quotes for it; you may find that the car you want is actually costing too much in car insurance premiums. This is the biggest problem new driver’s face after passing their driving test. In the news recently was a 17 year old teenager who just passed his driving test, he bought a Vauxhall Corsa for £1,400 but was quoted £17,000 for insurance. He managed to get the quote down to £2,000 but even then the insurance cost more than the car.

If you can hold on to your licence for a few years then start driving as some licence holders do not actually drive a car as soon as they pass, instead they wait a few years. Age as well as licence held is the factor when it comes down to insurance quotes. So if you have held your licence for a few years you are at a lower risk of having an accident to someone who is just qualified even if you haven’t driven since passing your test. You could however be put on a driving policy as an occasional driver so you can still have some practice in the mean time.

After you have pass your driving test and are now a fully qualified driver your instructor may have given you some information on taking a pass plus course. Many young drivers do not take the opportunity to take this course as they think it’s a waste of time, after learning to driver for months the last thing they want to do is learn some more. But the advantages of taking pass plus do have their advantages.

Pass plus advantages
Your instructor will now be able to take on other roads such as the motorway and as a new driver driving for the first time this can be a scary experience but pass plus will give you greater awareness. You will also be educated on night time driving and driving in different weather conditions such as snow, fog and heavy rain. You can get useful tips from your pass plus instructor such as how to drive safely in snow.

Pass plus is aimed at new drivers but you can opt to do the course at any time. There are 6 modules to complete each around an hour in duration but this can vary. The cost of pass plus will also vary on your driving instructor and location. The greatest benefit of completing this course is in fact that you will get reduced premiums in your car insurance as they will see you as a low risk driver. This is not always true depending on the car you wish to drive, so the best thing to do is call an insurance company and inquired how much car insurance will be and how much you could save if you did pass plus. In some cases the savings are not so great so it’s up to personal judgement as to whether or not you do it.

It’s a well known fact that Japanese car manufacturers are the most reliable and parts are fairly easy to get hold of.  Japanese cars have a very good reputation when it comes to getting your money’s worth as they are voted ‘least likely to break down’. When you compare SUV’s, Japanese car makers also have an impressive range that are much cheaper than other top of the range models and due to the advance in technology, Asia have a stronghold on environmentally friendly cars.

Years ago the car insurance industry started to provide insurance for car manufacturers individually, so if you own a Porsche, Lamborghini or Lotus it makes better sense to pay insurance to a company that understands the top of the range models and expensive parts. Japanese car makers on the other hand have an excellent reputation when it comes to reliability, practicality and affordability. So by opting to get insurance from a company that specialises in your car make, you should in theory save money when it comes to accidents, thefts and annual car insurance premiums. So if you own a Honda, Toyota or Nissan, japanese car insurance makes sense then.

Saying that, if you know that the car you have is reliable and the chance of anything going wrong is slim, is it really worth it then? In some ways yes as most Japanese cars have a lot of advance technology, so in some models there’s no need for a key while others operate on hybrid technology. So if you were to have a problem, a standard garage may not have the up to date knowledge and tools to help you whereas your insurer will have an extensive list of all approved garages nationwide. For models that are not as hi-tech as the newer models, going with an insurance company that specialises in your car make/model may not be the best solution financially.

There are many Japanese cars that appeal to the younger first time buyer such as the Nissan Micra but with car insurance premiums averaging £2k or more for these inexperienced drivers, it’s not really worth it and therefore going with a standard insurance company may be better. After no claims have been built up and you now own a top of the range car from Japan manufacturers, then Japanese car insurance will be well worth it.

Did you know that here in the UK you can claim compensation for pretty much anything there is. Postmen sue home owners for falling, tripping or injury on driveways or steps leading up to the home, a first aider was sued for breaking a women rib when she had to perform CPR and now a former contestant on Britain’s Got Talent is suing Simon Cowell for being humiliated live on television. There are times when suing is acceptable such as when your car tyre bursts due to bad road surfaces and pot holes, medical liability for bad care at a hospital and accidents that are caused at work.

There is currently no legislation that prevents anyone from suing a company or person but most of the time it’s the government and tax payers that end up covering the cost for compensation. The UK has made it too easy for people to claim virtually anything. In most cases you can even get a lawyer that can fight your case for free, they then get their fees from the government meaning you still get the maximum amount of compensation available.

The latest in bizarre compensation claims are from a pavement in Liverpool, there have been seven claims from the past few years with the compensation payout to total £30,000. It’s not crowded, damaged and can get very busy with a hairdressers, newsagents and even places to eat. It surprising to see that so many claims have been made in such a short period of time. Many have said it’s a scam but no-one really knows why there have been so many claims for the same pavement.

The amount of no-win no-fee solicitor has increased 150% in the last few years and many websites can even give you an estimate on how much you can expect to claim if you injured a specific area. Some people have even reported being watched whilst falling in a hospital where a sign was put up to warn patients that the floor was wet. The patient refused to claim compensation as there was warning and felt bad. In reality however some cases can be reported up to six years after they happened, there have been many people that have come forward during the last few years reporting incidents that have happened in the past.

Many people fail to see how this affects everyone in around them, if tax payers have to fund all the compensation claims then in time the country will need financial aid. In turn taxes will rise and goods such as food, clothes and other living expenses will increase to cover the black hole of money that Compensation Britain regularly gives out.

Since the launch of pound shops many years back it has been the cause of many loyal shoppers to abandon their supermarkets and start to shop around. This has caused the shops to be in fierce competition with each other therefore slashing prices on everything they have in store on a regular basis. As we know there are many bargains to be found in pound shops, anything from food to home accessories. Things like a family size bag or crisps can sell for as much as £3 in a supermarket but just £1 in the pound shop. Other items such as hand towel, toilet tissue and cleaning products also sell for half the price.

How to save money in Poundland?
There are many household items that you can buy that cost less than supermarkets and other local shops. During Christmas and New Year when you will be entertaining guests and cooking large family meals you can save money by buying disposable napkins, wine cups, tablecloths and more, this means you can also save time on washing up. Items such as crisps, biscuits, juice and fizzy drinks are also cheaper. If you do buy food and drink make sure you check the expiry date as sometimes they are very near to the end of their shelf life.

How are Poundland items so cheap?
If you buy in bulk then the price is reduced therefore you buy more for less but you are also able to sell for less. There are also items that are close to expiry such as chocolate, crisps, biscuits and drinks so they can purchase these items for a cheaper price. Some stocks they sell are also bought cheap by companies who have gone bankrupt or are closing down. Some things can even be sold cheap because they are imitations of another brand such as batteries, branded food products and cleaning products. Some things that are purchased for a very low price can be due to low standards such as ink printing on certain products. The worst way that Poundland make money is by taking orders for items that are made in poor countries such as China and India.

Poundland and child labour
It is the responsibility of the retailer to know where and how their products are made, although it is not illegal in this country to buy items that are produced by child labourers all countries are opposed of this. It is illegal in most countries to employ young children to work for them by taking them out of school. There is an ongoing investigation that Poundland have products that they sell in store that are being made by child workers as young as seven they are also paid a poor wage of just 7p an hour, 100 hours a week!

So before you think of saving money and buying a cheap product just take a moment to think about how it was made and how much the person who made it was paid.