Where is Bilbao?

Bilbao is located in the Basque region of Spain, the north of the country where mountains and nature meet sunny seaside days.

Why Bilbao?

Bilbao in the summer reaches temperatures of an average between 20-30 degrees meaning you don’t need to be in the scorching heat everyday but will enjoy the sun and warm.

Bilbao is full of culture and history, you will see not only Spanish being spoken and written but also their own Basque language too which they still teach in schools as they hold their culture with pride.

This city has lots to do with many bars and restaurants to keep you well fed with their traditional pintxos, smaller plates with lots of variations.

Bilbao’s train stations provide many options for day trips to get to the nearby beaches and other towns easily.

Walking through the city will offer so many sights, make sure not to miss anything as its bigger than you may think.

The cost

You will find flights to Bilbao for under £100 through the summer months making this a much more affordable travel destinations.

Whilst there the cost of your holiday will be much lower than going to Barcelona or Madrid and you will still feel the cities atmosphere surrounded by amazing natural locations.

Day trips

Whilst here you must take a day trip or an overnight stay to San Sebastian located on the coast of the Basque region and only an hour an a half on public transport from Bilbao.

The Times has named San Sebastian the food capital of Spain and strong contender in Europe. Fresh ingredients meets talented chefs to deliver top quality Spanish dishes.

San Sebastian also has a beach for sunbathing and admiring the coastline and at some beaches you will find the options for surf lessons.

To get a view of the Old town from above you can hike the paths of Monte Urgull for a breath-taking viewpoint from the 12^th century Castillo de la Morta fortress.

Muséums

The Guggenheim museum which opened in 1997 filled with modern and contemporary art, the building itself will impress. The museum tickets can be purchased for a lower cost for children and students of any university.

Just outside the museum you will find the large flower dog, you have to see it to believe there are real flowers there.

Nearby Beaches

The nearest beaches are in Getxo which can be reached by train in about 30 minutes and a quick walk from the station. You can take part in surf lessons here or enjoy the long stretch of beach where many local travel to.

There are options for restaurants and bars close to the beach so you could spend a whole day here. Stay in Getxo to enjoy a beautiful sun set over the sea.

Mount Artxanda Viewpoint

The city seen from above.

You can wake up to the top of this viewpoint in the city or alternatively take the funicular which only costs a few Euros and will be an easier way to travel and still take in the sights.

HSBC data shows that 54% of people in Britain have had the same current account for over a decade and 2 in 5 remain at their same bank for over 15 years.

This is despite 64% of people reporting they receive no benefits at their current bank.

So, is switching bank accounts a good idea or not?

Switching your bank account is a personal decision and many people are happy to remain with their existing account for the simple reason of convenience. If you want better interest rates so you can earn on your savings then it could be beneficial to shop around for better deals.

Be careful not to switch too many times as this could affect your credit score!

Reasons for switching banks

• Many banks offer rewards to new customers, you could receive a cash, travel, voucher rewards if you switch
• A new bank could offer better interest rates than your existing one.
• You may have had some issues with your existing bank account e.g. fraud issues or service and need a switch.
• You may want to open a savings account with better interest and need to have a current account with the same bank first.
• You want to open an appealing junior account for your children and you need your own current account at the same bank.
• Your local branch shut down so you need to move to a bank with a branch nearby.

Does Switching banks accounts affect my credit score?

When applying for new bank accounts they will run a check on your file which leaves a trace on your credit report which other lenders later on could see.

With multiple checks on your file leaving a mark this could reduce your chances of being accepted.

When applying to a bank they will either run a hard or soft credit check, make sure to avoid too many hard credit checks as these leave a noticeable trace on your file.

If you plan on taking out a loan e.g. getting a mortgage within the next 12 months then you should wait before you switch bank accounts as the file will not have recovered from the credit check yet.

What is Inflation?

Inflation is when the price of an item increases over time and the cost of living becomes more and more expensive.

Inflation will mean than the worth of a £1 decreases the more inflation goes up and this is why it becomes difficult to maintain a standard of living when prices go up overall.

High inflation means prices are rising quickly and low inflation means prices are rising slowly over time.

So despite Inflation rates falling, unfortunately your weekly shops won't cheaper, the supermarkets are experiencing a decrease in inflation and prices are still rising but slower than before.

There are many causes of inflation including rising productions costs and rising wages.

For Example…

If a carton of orange juice cost £1 and then a year later the same orange juice cost £1.05 this would be an inflation rate of 5%.

When inflation happens this means that you could have £50 to buy a new microwave, but if you wait a year to buy it you could need £60 to buy the same microwave as the prices have increased and your money needs to be stretched further.

Who is most affected by inflation?

ONS reported that those on a lower income will experience higher than average inflation rates and will be more affected by the high food and energy costs than those from a higher income household.

In a survey from February and March 2024, it was found that 46% of adults reported an increased cost of living compared to previous months.

Trussell Group food charity found they had provided 1.5, emergency food parcels in April-September of 2023 which is a record for that period,

Citizens advice reveal that in February 2024 they had helped 46,640 people with debt advice.

The Office for National Statistics have released their data and revealed that inflation rates are falling slowly and have reached the lowest level since November 2021 at 3.2%

What does this mean?

Inflation levels falling does not mean items will be significantly cheaper when you go into the shops, just that they are rising slower than before.

Prices in the supermarkets are driving this inflation drop.

Most items of food have had the rate of inflation fall between February to March with items such as, chocolate, biscuits and other bakery items falling the most. There have been smaller increases in bread and cereals too.

The price of meat, particularly pork leading the way is having a big contribution to the falling inflation which fell by 0.5% between February and March compared to 1.4% the year before for meat.

Will the UK be better off?

With the rate of inflation slowing down this could put us on the right track towards meeting the Bank of England’s target of 2%. Once this target is met and stable, the Bank of England will be able to cut inflation rate from their current 5.25%. This has pushed the mortgage interest rate up and made borrowing money too expensive to many households.

As well as the rising prices of mortgages, the price of fuel has also been slowly increasing. So with decreasing inflation in some areas this doesn’t mean costs are being cut.

With the rate of inflation slowing just below the predicted 3.1% and the Bank of England’s hope to bring inflation down to 2% we can hope for more changes to come and prices to start rising more gradually.

When you are trying to save money it is best to find the right type of account to keep it safe and this could be a savings account or an ISA.

ISA

An ISA is an effective way to save large sums of money and be a secure account to keep the money from being used daily.

There are different forms of ISA’s including, Cash, Stocks and shares and lifetime which you can set up depending on what your purpose is.

Pros

• A tax efficient way to save money
• Your money will be passed on to a spouse or civil partner if you die.
• Option of a lifetime ISA where the government will give you a 25% bonus to buy a house.
• A great option for saving larger amounts where you can earn more.
• Investment opportunities.

Cons

• Annual deposit limit- usually £20,000.
• Limited on when and how much you can withdraw from your account.
• Some will have exit fees.
• You can only open one type of ISA a year.
• Must be over 18.

Regular savings account

Having a savings account is essential for savers and the most common way to save. This could be with a bank of your choice and will give you an easy way to put money away.

There are different forms of savings accounts including, easy access, fixed term and notice accounts.

Pros

• You can easily withdraw money making this a more flexible option.
• Easy to set up and transfer money with no limits on deposits.
• Junior accounts are available for over 11 and a great way to teach financial responsibility with supervision.
• You can open as many savings accounts as you need

Cons

• You could be taxed on your interest earnings.
• The interest rate fluctuates and so you could have to change your bank.

Opening an ISA is popular for longer-term savings such as for buying your fist home whereas a regular saving account is great for short-term savings when you need flexibility.

Often you will be able to earn better interest rates with a regular savings account as most people don’t reach the threshold for paying tax on earned interest.

You could also open both an ISA and regular savings account to help you save.

No matter what stage of life you are in at the moment, saving money is always beneficial, even if you are saving small amounts at a time.

There are so many ways to start saving money that can help you begin including, budgeting apps,  learning the 50-30-20 rule and more. You will be able to find a method that works for you and your finances.

It is important to have a separate savings account before you start so you can keep your savings safe and you could even earn interest.

Why you should save...

Your summer of fun is coming and there’s no reason travel can’t be a apart of that this year. There are plenty of places to see without having to blow the budget so you can take the family away, go with friends or go on a solo trip for some sun.

To get here, fly in to Faro and travel an hour by bus to reach the beachside town of Lagos.

The Algarve, Portugal

Stay in Lagos for the picturesque, sandy beaches and adventures which will give you something new to do each day.

Benagil cave

You can reach the Bengali caves from the Bengali beach via boat tours or kayak trip. If you’re up for it it’s best to get an early start and rent a kayak from the beach and take the short trip into the caves to see the caves crowd-free.

Beaches to see

There are plenty of ways to enjoy Portugal for free or at a low cost. Grab yourselves a picnic and head to any of these beaches for the day. In the summer months make an early start to pick out the perfect spot.

Make your way along the cliff tops with access to multiple beaches like the ones below and stick around to watch the sun set over the sea from the cliffs.

Praia Dona Ana – One of the most photographed beaches in Portugal and only 160 metres surrounded by rock formations. Swim between rocks and admire this natural beauty.

Praia do Camilo – Further along this haven can be found at the bottom of a wooden staircase, admire the view on your way down. Find blue waters with colourful fish to see below the waves.

Meia Praia – The largest beach in Lagos giving you the extra space to relax and enjoy swimming with the family.

The Town

Explore this historic old  town with its city walls and lively atmosphere. The bars and nightlife will make the town an exciting trip with new bars on each street to test.

You won’t struggle to find amazing food here with a variety of choices. Make sure to taste the Portuguese food where you will find their fresh seafood dishes.

Dolphin watching

Lagoa offers the incredible chance to see Dolphins in the wild. Boat trips are common to spot the sea life in Lagoa and you won't want to miss out! The peak for dolphin watching is during the summer months.

Lagos Zoo

Just 15 minutes from the town of Lagos is the Lagos zoo where you can take the kids for a day out to see over 150 different species.

Adult tickets cost EUR 19 and  EUR 14 for children. Book online for a discount.

It’s time to fill in your self assessment tax forms again after the last financial year ended on April 5.

To ensure that the HMRC are up to date with your finances, you can send over your self assessment form online or request a paper form.

If you use the online service you will need to sign in with a Government Gateway user ID and password, which can be asked for and sent to you by email if you do not currently have what is a 12 digit code.

Additionally you will also need your 10 digit Unique Ta Reference number, which you can find in any of your previous tax statements or on the HMRC app.

It will also be necessary to have your national insurance number handy to complete the assessment.

The vast majority of the time it would be the SA100 tax return form that would need to be completed.

The deadline to tell the HMRC that you need to fill out a form if you have not done this before is October 5.

While a paper tax return is due for October 31, and any online submissions must be completed by midnight on January 31 next year.

There is a penalty of £100 for any tax return that is filed up to three months late, which is raised if it is any later.

Who must send a self assessment tax form and what needs to be disclosed?

You would need to fill out a self assessment form is if you are a self employed person,  or more specifically a “sole trader” whose has earned over £1,000.

Other reasons include if you had a taxable income for the last financial year of more than £150,000.

Also if you are involved in a business partnership then it is necessary to fill out a self assessment form.

If you have sold or disposed of something that has increased in value, that would make you liable for capital gains tax and would need to be disclosed.

You may have to pay the High Income Child Benefit Charge if your or your partner’s salary is over £60,000 and you receive child benefit.

Or if someone else gets child benefit for a child that is living with you and they contribute an equal amount towards the child’s upkeep, for both situations a self  assessment is necessary.

If you are currently renting out a property where the income from that was more than £2,500 then you need to declare this to the HMRC, or call them if the proceeds were between £1,000 and £2,500.

All earnings from other sources, for example from tips or commissions also need to be revealed to the HMRC via a self assessment.

Furthermore all income from savings, investments and dividends must be declared.

Plus any income that has been earned overseas must also be acknowledged to the HMRC.

Self assessment thresholds

You will need to be aware of what the limits are before you start to pay any income tax and national insurance on your earnings.

For the financial year that has just expired the personal allowance before you are liable for income tax is £12,570, and the government has said that this figure will remain the same for the 2024/25 financial year.

As for national insurance for the 2023/24 tax year class 2 contributions were £3.45 per week if your profits were above the £12,570 threshold.

While class 4 contributions were charged at 9% on profits between £12,570 and £50,270, and at 2% on profits over £50,270.

This financial year all class 2 contributions have been scrapped, and class 4 national insurance will be paid at the rate of 6% on profits between £12,570 and £50,270 and

2% on profits over £50,270.

Ways to pay your tax bill

The deadline to pay your tax bill is usually January 31 for the previous tax year.

If you do not meet this deadline then you will incur a penalty interest charge.

You can also set up a budget repayment plan, where you can make weekly or monthly payments towards your next self assessment tax bill.

This means that you will have less to pay in one go at the payment deadline.

If your circumstances are more serious where you cannot pay your outstanding tax bill,  then a payment plan known as “Time to Pay” could be set up with HMRC agreement.

Self assessment helpline is now open

Recently the HMRC made a huge u-turn after it had announced that it was to close the self assessment helpline between April and September every year.

After listening  to feedback it has halted the plans, but it has said that it will continue to encourage a transition to its online services to iron out any problems.

The number to call is 0300 200 3310, and the helpline is open between Monday and Friday starting at 8AM and closing at 6PM.

If you are trying to save money and need some extra tips then the 50-30-20 rule could be super helpful to create a budget.

With this rule you will be splitting your income up and assigning each pot of money to a selected category.

This rule will work best if you have a separate savings account so you can keep that away from your spending money and visualise what you have left.

50 - Needs

50% of your income will be spent on your needs and necessities throughout the month.

This includes rent, house bills, car payments, grocery shopping, childcare and anything else that you absolutely need to pay. It would be best to be strict about this section and only put things you couldn’t live without in here, don’t be tempted to pay for any hobbies from this pot.

30 – Wants

30% of you income will be spent on your wants.

This would include any hobbies you have, gym membership or streaming subscriptions. Any days out or social events should also be paid from this pot of money. Also included would be any shopping that is not necessary such as a new dress or watch.

This will help you budget how much you can spend on your wants throughout the month and not be tempted to over spend. This would help you if you have a habit of impulse shopping. You will have a visual of how much you can spend and what will have to wait until next month.

20 – Savings

20% of you income should go into a savings account or an ISA.

Trying to save whilst on a small income or when you have other obligations can be challenging. Using this rule will help you put away a small amount each month and by budgeting like this you will know it can be done.

If you need to change the percentages to fit your situation, say if you have a long list of needs then increase this to 60% and only put 10% in you savings. This still allows you to save whilst not being super low on money at the end of the month.

For example...

If your monthly income is £1,700 and you followed the 50-30-20 rule then you would have,

£850 to spend on your needs list, £510 to spend on your wants and then £340 to put into your savings each month.

The PSR conduct research to discover which banks were subject to the most fraud as well as the rate at which reimbursement was provided to customers.

UK Finance has found that APP fraud in the first half of 2023 came to a total of £239.3m and there was £152.8m returned to the victims.

APP fraud

This is when a customer is tricked into authorising a payment to an account controlled by a criminal.

APP stands for authorised push payment.

What is being done about bank fraud?

PSR are introducing mandatory reimbursement for victims of APP scams meaning banks will have to abide by these rules to help their customers further. They rules will be introduced later in 2024.

You bank should help you if you are a victim of fraud, if they don't you have the right to push for it.

Keeping your money safe is a top priority and customers expect their accounts to be secure. This is why when picking your savings account you may want to consider the banks which have a reimbursement policy.

The banks with the highest fraud rates

The government has announced that they will be increasing the cost of council tax due to the rate of inflation in the UK.

How they calculate your council tax

The cost of Council tax is determined from the valuation of the property from 1991 in England and Scotland and 2003 in Wales. If your property did not exist then it would have a valuation completed by the Valuation Office Agency (VOA). New builds will be compared to similar properties in the area.

The VOA value the property based on…

• Size
• Layout
• Character
• Location

The property will be placed in a band where Band A is the cheapest through to Band H which is the most expensive.

Council tax varies depending on each county and the needs for the area. Your local council will set the price for each band’s council tax bill.

Council needs include, street cleaning, community infrastructure, the police and fire services in your area, street lighting, rubbish collection and more.

How you pay your council tax

If you are moving into a house soon and are unsure how council tax works, there is no need to panic. Once you move into the property you will be sent a letter from the government with your council bill included along with the process to pay it. You will be sent this letter once a year in April when you expected to pay, you should then set up direct debits to ensure this is paid on time.

The payments are usually split into 10 monthly payments form April- January starting from the month you possess the property.

You can pay your bill online, or alternatively there would be pay points in your area, such as, the post office.

Extra costs of buying a house such as council tax is why it is important to understand how much of your salary should be spent on your mortgage so you can afford all the costs included in moving into a house.

Can I get a reduction?

You could be eligible for a reduction or exemption from council tax if you meet the criteria below.

• You are on a low income
• You are a student or live with t a student
• You live alone or are the only adult in the property
• You are a member of the armed forces
• You have a severe mental impairment or live with someone who does
• You have moved into a care home or the hospital

Using a finance app can often be a helpful way to keep on track of your money wherever you are and in a specific way for your needs. Tracking your money shows you how much your are spending and can support you in making a change.

There are many options for free budget apps as well as paid for ones which can help you keep track of your spending and get control of your finances.

Hyper Jar

This app is free to use and download and includes a physical card to use. Upload money onto the card and use it to budget.

The app uses a system of ‘jars’ to budget, you create your categories and how much you put in each one. For example, your grocery jar could have £100 in it and your fuel jar will have £50 so you know this is all you’re supposed to spend on these things.

Hyper Jar includes a feature of linking specific shops to your jar, such as Aldi to your grocery jar and the money will automatically come from this jar when you spend here. You can earn interest when you commit to certain brands too!

You can use their shared Spending jars feature to help balance your finances with a partner or housemate. This also works if you wish to track you kids finances and help manage them.

Using this card allows you to travel without having transaction fees.

There is no option to withdraw cash from an ATM using the Hyper Jar card.

Emma

The standard version of this app is free.

This will link your banking apps so it can analyse the information and patterns to determine and suggest where you could make cut backs.

You are able to set up a monthly budget with Emma and the app will remind you to stick to it.

With the Emma Plus version, which costs £4,99 a month you can link 4 accounts, and have a fraud detection feature, bill reminders and a balance feature so you are reminded how much you have left to spend in your budget.

With the Emma Pro option, which costs, £9.99 you can link unlimited backs, track your net worth and any changes along with create custom categories for your spending patterns.

With Emma Ultimate, which costs £14.99 you can include any business accounts your might have and are able to become more specific with your needs. This is a great option if you have business finances to organise as well as other business finance apps.

Snoop

The app is free however if you want to try out some more features the cost will be £4.99.

Snoop will track all your regular bills and alert you when they are higher than usual and offer your cheaper options to switch to.

The app will also keep an eye out for insurance policies and cheaper phone deals. Once the app knows your routines and where your shop it can suggest discounts and voucher codes for those places saving you money wherever you go.

If you pay £4.99 for Snoop plus this will give you more features such as, tracking your spending from each payday and then create unlimited custom spending ports as well as refund alerts.

Snoop will be helpful for offering cheaper options for your regular items and spends which will save you money each month.