DS Mc Dermott Financial Planning Ltd

14/03/2026

25/02/2026

Top 5 things to do before the end of the tax year to build wealth: You can thank me later.

1️⃣ Use Your ISA Allowance (£20,000)

£20,000 per person

Use it or lose it

Completely tax-free growth & withdrawals

ISA gives future flexibility vs pension

Useful for early retirement bridging before SIPP access

If married, that’s £40k household allowance.

2️⃣ Maximise Pension Contributions (Especially via Company)

This is usually the biggest win for a 40% taxpayer.

Check:

Have you used your £60,000 annual allowance?

Can you use carry forward (3 prior years)?

Would an employer contribution be more tax efficient than salary/dividend?

For a profitable limited company, employer contributions:

Reduce corporation tax

Avoid dividend tax

Avoid employee/employer NI

This is often a 45–50%+ effective saving.

3️⃣ Use Capital Gains Tax Allowance (£3,000)

Small now — but still worth using.

Sell assets with gains up to £3k

Bed & ISA where appropriate

Crystallise gains strategically

Particularly relevant if holding:

Direct equities

Crypto

Investment property disposals planned

4️⃣ Dividend & Income Planning

If you control timing via your company:

Are you optimising salary vs dividends?

Using spouse allowances?

Staying below £100k adjusted net income (if relevant)?

Even small tweaks before 5 April can reduce effective marginal rates dramatically.

5️⃣ Inheritance Tax Planning (Often Overlooked)

Especially relevant if wealth is compounding strongly.

Consider:

£3,000 annual gifting allowance

Gifts out of surplus income

Junior ISA funding

Trust funding if appropriate

15/01/2026

November’s +0.3% UK GDP “beat” looks encouraging at first glance, but scratch beneath the surface and the story is weaker - with construction data collapsing.

The “beat” is driven by a one-off rebound in car production, with car production +25.5% after cyber attacks earlier in the year temporarily shut down output.

That’s not new growth, but a mechanical normalisation after an artificial collapse. Strip this out and the underlying economy is barely moving, with the three-month trend being stagnation.

Meanwhile, construction is flashing bright red. Output fell 1.3% in November, extending an already negative trend, and the collapse in new housing construction is particularly alarming.

Public new housing plunged over 10%, private housing and commercial projects are also falling. Firms are clearly pulling back on capital spending.

27/12/2025

This morning i reviewed the company’s operating profit and made employer pension contributions into our SIPPs for both myself and my wife (both directors).
This achieves three key things:
✅ Extracts profits tax-efficiently
✅ Reduces corporation tax to nil on those profits
✅ Moves business wealth into personal wealth in the most tax-efficient way available

Employer pension contributions are not subject to:
Income tax
Dividend tax
National Insurance

And they are fully deductible for corporation tax, provided they’re wholly and exclusively for the business.

A textbook example of end-of-year director planning — and always satisfying to keep more of what we’ve earned working for us rather than disappearing in tax.

21/08/2025

💡 **Why Cashflow Modelling is a Game-Changer for Retirement Planning**

Most people ask the same questions when thinking about retirement:

* *When can I afford to stop working?*
* *Will I have enough to last?*
* *What if markets fall or inflation rises?*

👉 This is where **Voyant cashflow modelling** makes all the difference.

With cashflow modelling you can:
✅ See your whole financial picture – pensions, ISAs, property, savings, and spending all in one place.
✅ Test “what if” scenarios – retiring early, downsizing, gifting to children, or care costs.
✅ Optimise tax efficiency – showing the smartest way to draw from pensions, ISAs, and other assets.
✅ Stress test against market shocks or inflation – so you know your plan is robust.
✅ Visualise your future – with clear charts that show not just numbers, but what life could look like.

Retirement planning is no longer about vague forecasts. It’s about **clarity, confidence, and control** over the decades ahead.

If you’ve ever wondered, *“Will I be okay in retirement?”* — cashflow modelling gives you the answer.

30/05/2025

🎯 Want to Reach Financial Independence by 60? Here’s How.

Financial independence isn't just for the ultra-wealthy or lottery winners. With smart planning and consistent action, it’s achievable — even before retirement age.

Here are 5 practical ways to get there by age 60:

💷 1. Max out pension contributions – Take advantage of tax relief and employer matches. Your future self will thank you.

📈 2. Use your ISA allowance – Tax-free growth on £20,000 per year adds up fast, especially if you invest wisely.

🏠 3. Build income-generating assets – Think rental property, dividend shares, or REITs. Let your money work for you.

🚫 4. Resist lifestyle inflation – As your income grows, don’t inflate your spending. Increase your investments instead.

🧮 5. Know your number – Use planning tools to calculate what you need and track your progress. Financial clarity = confidence.

It’s not about being frugal — it’s about being intentional.

Start now, and 60 could look a lot more free than you think.

26/05/2025

📣 Why Are So Many People Overwhelmed by Saving for Retirement?

It’s not laziness. It’s not ignorance.

It’s because:

🧠 It feels too far away

💸 They don’t know how much they’ll need

🤯 The options are overwhelming (pensions, ISAs, funds, annuities...)

😬 They’re afraid of making the wrong move

📚 And no one ever taught them how to plan for it

The result? Paralysis.

But here’s the truth:

✅ The earlier you start, the easier it gets

✅ Small, consistent steps now = freedom later

✅ You don’t have to do it alone

👋 If you're stuck, I make the complex feel simple.

Let’s talk.

22/11/2024

Gifting is an effective way to reduce your estate’s value and potentially lower the amount of Inheritance Tax your beneficiaries might owe upon your death. Here’s a breakdown of how gifting works under UK law:

1. Annual Exemption

You can gift up to £3,000 per year tax-free. This is known as your annual exemption. If you haven’t used the previous year’s allowance, you can carry it forward for one year, allowing you to gift up to £6,000 in one year.

2. Small Gifts Exemption

You can give unlimited small gifts of up to £250 per person per tax year, as long as the recipient hasn’t benefited from any part of your annual exemption.

3. Wedding or Civil Partnership Gifts

You can make tax-free gifts for weddings or civil partnerships:

Up to £5,000 for a child.

Up to £2,500 for a grandchild or great-grandchild.

Up to £1,000 for anyone else.

These gifts must be made before the wedding, and the marriage or partnership must take place.

4. Normal Gifts Out of Income

Gifts made as part of your normal expenditure (e.g., from surplus income) are exempt from IHT if they do not affect your standard of living. This can include regular payments like helping with rent or school fees. This is the least used method however the most effective.

5. Potentially Exempt Transfers (PETs)

Larger gifts that exceed the above allowances may still be free from IHT if you survive for seven years after making the gift. These are known as Potentially Exempt Transfers (PETs):

If you die within seven years, the gifts may be subject to IHT on a sliding scale (known as "taper relief"), depending on how many years have passed since the gift was made.

6. Gifts to Spouses and Charities

Gifts to a spouse or civil partner are generally exempt from IHT, provided they are both UK domiciled.

Gifts to charities or political parties are also exempt from IHT.

7. Exclusions

Gifts must be outright; placing conditions on them (e.g., retaining access to or benefits from the gifted asset) may invalidate the exemption.

Gifts involving property or assets transferred into trusts can be more complex and may incur IHT charges depending on the circumstances.

While gifting can be a powerful tool for estate planning, it’s essential to:

Keep clear records of gifts.

Understand the rules to avoid unintended tax consequences.

12/11/2024

Choosing between an **Individual Savings Account (ISA)** and a **pension** for retirement savings in the UK depends on your goals, tax situation, and investment flexibility needs. Here’s a breakdown of each option and their pros and cons for retirement savings:

1. **Tax Efficiency**
- **Pensions**: Contributions are tax-deductible, meaning that for each £100 invested, basic-rate taxpayers pay £80, higher-rate taxpayers pay £60, and additional-rate taxpayers pay £55 (with tax relief added back by the government). Growth within a pension is tax-free, and you can access it starting at age 55 (rising to 57 in 2028).
- **ISAs**: ISAs are also tax-efficient as there is no tax on interest, dividends, or capital gains. However, contributions to an ISA are made from post-tax income, meaning there’s no additional tax relief on contributions.

**Advantage**: If you’re a higher-rate taxpayer, a pension might be more tax-efficient due to upfront tax relief. For lower earners or if you want flexibility, an ISA can also be advantageous due to its tax-free withdrawals.

2. **Access and Flexibility**
- **Pensions**: Withdrawals are allowed from age 55 (rising to 57 in 2028). When you access your pension, 25% can be taken tax-free, but the remaining withdrawals are taxed as income.
- **ISAs**: You can access funds at any time without penalties, making them highly flexible. This is helpful if you anticipate needing access to funds before retirement or want to save for multiple purposes.

**Advantage**: If flexibility and access are important, an ISA is the better choice. Pensions, however, help lock away funds for retirement, reducing the temptation to dip into savings early.

3. **Investment Limits**
- **Pensions**: You can contribute up to the lower of £60,000 per year or your annual earnings (higher limits may apply with carry-forward provisions). Lifetime contributions over £1,073,100 may incur additional taxes.
- **ISAs**: You can invest up to £20,000 per year across all types of ISAs. This can be invested in cash, stocks, or a combination of both, providing flexibility in how you manage your funds.

**Advantage**: If you have a high income or want to invest larger sums, pensions allow for greater contributions annually.

4. **Employer Contributions**
- **Pensions**: Many employers match pension contributions, which can effectively boost retirement savings without additional cost to you.
- **ISAs**: Employer contributions aren’t an option, so ISAs rely solely on personal contributions.

**Advantage**: Pensions provide a unique advantage if your employer matches contributions, adding an automatic increase to your retirement savings.

5. **Inheritance and Beneficiaries**
- **Pensions**: Pensions generally fall outside your estate for inheritance tax purposes, and any remaining pension can be passed on to beneficiaries, often tax-free if you pass away before age 75. This due to change in 2027
- **ISAs**: ISAs are included in your estate for inheritance tax, although they can be transferred to a spouse without losing their tax-free status.

**Advantage**: For inheritance purposes, pensions are typically more tax-efficient.

Summary
- Consider a Pension if you’re a higher-rate taxpayer, can lock away funds until age 55, and want to take advantage of employer contributions.
- Consider an ISA if you want flexible, accessible savings or plan to use the funds before retirement.

For many people, a combination of both (a pension for structured retirement and an ISA for flexible savings) works best. A financial advisor can help determine the ideal balance based on your specific circumstances.

30/10/2024

https://www.dsmcdermottfinancialplanning.co.uk/article/detail/sjpp/understanding-what-the-autumn-budget-means-for-you.html?j=778532&sfmc_sub=912216573&l=238_HTML&u=26246821&mid=510006270&jb=15010

Rachel Reeves has delivered her first Budget as Chancellor, and the first Labour Budget in 14 years.  It brings some clarity and certainty following many weeks of speculation. The Government has had to balance a challenging fiscal situation with a plan to invest for the future and for growth.

20/10/2024

Sure, I’m a financial planner.
But also a portfolio manager.
And a tax consultant....

And an insurance consultant.
And an estate planning consultant.
And an equity consultant.
And a cash flow consultant.
And a retirement coordinator.
And a borrowing consultant.
And a personal CFO.

But sometimes a life coach.
And sometimes a career coach.
And sometimes a couples counselor.
And sometimes a bearer of bad news.
And sometimes a bearer of the best news.
And sometimes a spending policeman.
And sometimes a spending encourager.
And sometimes an educator.
And sometimes a grief counselor.
And sometimes a family mediator.
And sometimes an end-of-life contact.
And sometimes a philanthropic advisor.