Gibson’s organic liqueur

Dominic Thomas
April 2022 • 3 min read

Gibson’s Organic Liqueur

Some of you may recognise the brand Gibsons liqueur as we sent some out in our Solomon’s Christmas gift boxes last year. It’s safe to say it’s a brilliant addition to a number of goodies including ice-cream, gravy, prosecco or gin. The team here at Solomon’s are big fans!

The story began in 2007 when, after 2 years spent volunteering on organic farms around the UK, Miles Gibson returned home and began planting fruit. The fields had previously been used solely for grazing sheep, and Miles built slowly, experimenting with different varieties, husbandry techniques and field positions guided by what he had learnt, and most of all by what his little patch of land taught him.

We asked Miles a few questions about his now booming business, and here’s what he had to say…

WHAT WERE SOME OF THE REASONS THAT RESULTED IN YOU STARTING YOUR BUSINESS?

I’d been working in London as a youth therapist for 10 years, and felt the call to do something a bit less in my head and those of other peoples. I took a year travelling around different organic farms in the UK working as a volunteer and by the end of it I decided I’d like to work my own small bit of land. I’d learnt that if I was going to grow on a small patch I’d need to add value by processing what I grew into something – booze appealed!

WHY WAS BEING AN ORGANIC PRODUCER SO IMPORTANT TO YOU?

While in London I attended a talk by the then chair of the Soil Association and was inspired by the message of farming in harmony with Nature.

WHAT HAVE YOU LEARNED ABOUT BUSINESS THAT YOU HADN’T REALISED BEFORE STARTING?

That starting your own business really is all consuming, particularly in the early years. That you can make as good a product as exists but it won’t sell itself, you’ve got to get your story out there, and try not to get too frustrated by the competition when they are all story and no substance!

WHO WOULD BE YOUR TYPICAL CLIENTS/CUSTOMERS?

AB I guess. I started off mainly selling through farm shops and delis in the Cotswolds and at farmers markets. I now do some food/Christmas fairs, and have expanded into the world of mixology where the provenance and rarity of some of my flavours are appreciated.

WHAT’S THE PLAN TO DEVELOP THE BUSINESS GOING FORWARDS?

I’d like to expand further into bars and hotels and continue to innovate and win awards with the liqueurs I produce.

IN TERMS OF FINANCIAL PLANNING STUFF, WHAT’S YOUR EARLIEST MEMORY OF “MONEY”?

Delighting in making piles of 1s and 2ps inspired by a Ladybird image of a tax collector in biblical times!

WHAT ADVICE ABOUT FINANCES DO YOU WISH YOU HAD RECEIVED AND TAKEN WHEN YOU WERE 20?

When your parents offer to buy you a flat in West London as an early bit of inheritance planning say ‘yes please’, rather than I’m not interested I’m going off to France to be a poet!

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Gibson’s organic liqueurJemima Thomas2025-02-20T11:05:08+00:00

Self employed V LTD company

Dominic Thomas
Nov 2021 • 4 min read

Self employed v LTD company

Those of you that run a small business or provide a professional service are typically either self-employed or operate a small Limited company. The main legal advantage of a Limited company is that any liability is limited to the company and the Director cannot be harassed for funds owed to creditors should the business fail. The company is a legal entity in it own right.

The Chancellor’s plan to increase the main corporation tax rate from 19% to 25% in April 2023 has once again brought into focus the question of whether it makes sense to incorporate your business if you are currently self-employed. Although tax alone should not be the determinant, it can be a major factor in many instances.

CRUNCHING THE NUMBERS

The first point to note is that the 25% rate will generally only apply for companies with profits of at least £250,000. Up to £50,000 of profits, the current corporation tax rate of 19% will continue, albeit labelled a small companies’ rate. In between those limits, the tax rate will be 19% on the first £50,000 of profits and 26.5% on the excess. This can mean that if you incorporate when your profits are modest, you may regret the move if your business starts to make more money.

How you draw income from your company will determine your overall tax bill. In the examples below, we have assumed:

All of the profits will be drawn. This makes the picture consistent with the self-employed alternative under which all profits are taxed.
You draw a salary of £8,840 a year from your company. At this level neither you nor your company will have any National Insurance Contributions (NICs) to pay.
All your profit, after deducting your salary, is taxed at corporation tax rates and then paid to you as a dividend.
The first £2,000 of your dividend is free of tax thanks to the dividend allowance, but still counts as part of your total income for tax purposes.

So, let’s consider the same scenario, but with larger numbers, double at revenue of £150,000…

The higher profit level highlights the impact of the corporation tax change: at £75,000 the corporation tax bill increases between 2021 and 2023 by 9.6%, but at £150,000 the bill jumps by 25.5%.

MORE IS MORE

If the corporation tax increase goes ahead – and there are voices suggesting it might be tweaked nearer the time – then on tax grounds the case for incorporation will be weakened, particularly at higher profit levels. However, as mentioned above, tax is not the only consideration.

ACTION

The numbers above are for two specific profit levels. Comparative calculations are complicated by the phasing out of the personal allowance, so there is no straight line between the £75,000 and £150,000 results.

The corporation tax move is another step on the slow path to rationalising the taxation of earnings between employees, the self-employed and owner directors. For a review of your personal situation and the tax saving opportunities available now, please talk to us.

For what its worth (nothing) if I were Chancellor, I’d have standard rates of tax irrespective of where the income is derived. This would make tax much more transparent, straight-forward and easier for everyone to understand. The problem lies in the will of Government.

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Self employed V LTD companyDominic2025-02-17T17:00:06+00:00

THE BUDGET 11 MARCH 2020

TODAY’S BLOG

THE BUDGET 11 MARCH 2020

In order to save you time, I watched the Budget and even had a neat little animated logo designed for the occasion. Prior to the Budget I had hopes of some significant pension reforms – to simplify pensions whilst also hoping for the possibility of a fairer tax system, which means different things to different people – I would probably settle for a more straight-forward one.

In fairness to Rishi Sunak, becoming Chancellor when he did must have felt rather like a “hospital pass”. By which I mean a term used in rugby, where you are passed the ball so that you are the last one to face some enormous opponent who will surely flatten you and send you to hospital for treatment.

As he prepared for his Budget, we were all aware of the gathering momentum of “coronavirus” and the global collapse of the stock markets as investors seem unable to comprehend the impact on trade and the current oil price war between Russia and Saudi Arabia. No small matters and certainly sufficient to cause significant “alarm”.

INCOME TAX

Rates remained unchanged – so depending on whether you are a glass half empty or half full, if you allow for inflation, that’s worse, but better than an increase.

Personal Allowance: £12,500
Basic rate (20%) on the next £37,500
Higher rate (40%) on income up to £150,000 (but loss of personal allowance at £100,000 ars previously)
Additional rate (45%) on income over £150,000

The only allowance to improve marginally was Capital Gains tax (increased from £12,000 to £12,300), which will be of little comfort today.

PENSIONS

The Lifetime Allowance has increased by inflation to £1,073,100. The precision of this number speaks volumes of the Treasury’s desire to collect every penny.

Anyone earning over £300,000 can only contribute £4,000 to a pension (including employer payments). Otherwise, some relief for Hospital Consultants as the Tapered Annual Allowance was inflated by £90,000 to impact those with incomes over £240,000. This keeps tax calculations complex and required, but likely to kill off public sympathy for the cause to simply abolish the Tapered Annual Allowance. If you really don’t understand this, it probably doesn’t impact you.

ISAs

There remain at a very healthy £20,000 of tax-free growth and tax-free income when withdrawn, unlike a pension which has tax relief and provides taxable income. This also tells you something about the Treasury.

A Junior ISA (JISA) has been greatly increased to allow for a significant £9,000 into a JISA each tax year from 2020/21. No real benefit for adults, but of course a bit of a nod to those funding University. Though this could turn into a large fund over time and some thought ought to be given to how most 18 year-olds handle money.

INHERITANCE TAX

No changes

BUSINESS OWNERS

Those wishing to sell a business that they built will now have much higher taxes to pay on sale as entrepreneurs’ relief was slashed. The 10% tax rate on sale of a business still applies but only on the first £1m rather than the first £10m. That idea that your business is your pension… well, think again the new allowance is lower than the Lifetime Allowance.

CORONAVIRUS – CORVID19

Various special measures have been “initiated” to enable people to have some form of basic minimum income (statutory sick pay) from first signs of illness and self-isolation. This is an attempt to head off concerns that those needing to earn cannot afford to be ill and therefore continue to pose a “threat” to the rest of us. Whether it works remains to be seen – I suspect call centres will be jammed for some time.

As far as I can tell today, a few things are in short supply and probably more expensive than a week ago – toilet paper, hand sanitiser and wisdom.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk
Call – 020 8542 8084

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PRIVACY POLICY | DATA PROTECTION

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Mill Cobham Park Road, COBHAM Surrey, KT11 3NE

Email – info@solomonsifa.co.uk Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

Take Survey

PRIVACY POLICY | DATA PROTECTION

THE BUDGET 11 MARCH 2020Dominic2025-01-21T16:33:58+00:00

Elle

Solomons-financial-advisor-wimbledon-blogger

Elle

There are few films that I have seen that are as disturbing as Elle. Yet is it also a wonderful movie that I’d encourage anyone (over 16) to see. Arguably this is one of the most reflective tales of the current societal state of disassociation, but reduced to the sketches of the personal life of Michele Leblanc (Isabelle Huppert). I might go a little further to suggest that there is arguably a little too much thrown into the film, but that all rather depends on how you interpret.

Make no mistake, this is a traumatic movie. It begins with a rape scene which sets the story in motion and how the viewer reacts to this and the subsequent information. The setting of a severely dysfunctional family provides the context for the series of choices that emerge. There is no attempt to explain or pacify the viewer. This is a harsh, brutal look at “real life” and contemporary life.

A day of signficant trauma

I am conscious of tension that I really don’t want to spoil the film for you, yet wish to convey some of the plot. What is explained is that Michele is the daughter of a devout Catholic man who had managed to repress some of horrific feelings, which are then released in a day of carnage in her childhood and her mass murdering father is imprisoned. There are no explanations or justifications. What follows is assumed to be built upon the backlash of hatred towards the family. It is this trauma upon which Michele gradually builds her life. Relationships are inevitably strained and detached.

This virtual reality

In many respects, what we accept as normal, or ordinary without a questioning mind can leave us all somewhat detached from reality. It also leaves us poorer within a context that could be so much better. This is not a film about victim mentality, but of passive, detached voyeurism. Whether that be the obviously disturbing video game violence or the inability to value relationship. A religious persona that masks deep violence and crime against other. A simple a lack of honesty or inability to take responsibility, all the while soothed by a plethora of cute cat videos and nice cars. We are the sum of our choices.

The sum of your choices

So, what on earth has this to do with financial planning? I would argue that your choices are significant. A choice to do nothing is still a choice. People worry about money, but do little to address those concerns, making the choice to defer, to delay. Time is against us. It is the one resource that we all have equally today. The choices you are making compound into a result. Financial planning provides the space and opportunity for you to reflect on what you genuinely value, to challenge your own thinking and the narrative of our consumer culture. However, we all have a past, some have experienced awful traumas, this needs to be addressed if a better future is to be created. We all have limitations, but almost all have unlimited desires. A sense of peace and direction can be achieved when these are identified thoughtfully and respectfully.

The lubricant of modern life

Many people are detached from their finances, seeing them merely as a necessary lubricant for getting through life. Yet finance is active, we invest globally. We know the power of money and the pain of not having enough. Money can be violent or it can bring respite and relief. Somehow a healthy balanced view towards money needs to be constructed by each of us, which can act as the map to get us where we really want to be. In short, to be engaged with your finances, your financial plan needs to reflect your values – the real ones, some of which may be painful.

Here is the trailer for this very good, but disturbing movie, which has collected several awards and for which Isabelle Huppert is nominated for an Oscar as Best Leading Actress.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

ElleDominic2025-01-28T13:29:11+00:00

Delicious

I wonder if you have seen a new Sky 4-part mini series starring Dawn French, Emilia Fox and Iain Glen called “Delicious”. I don’t think I’m giving too much away by saying that it is the story of an apparently successful, once divorced remarried chef, who has an affair with his first wife, who it turns out is the real culinary genius.

Like most good stories, the drama of ordinary lives holds our attention when under the scrutiny of dramatic pressures. The series exposes the problems beneath a beautiful façade of a middle-class life. Set on the idyllic banks of the Tamar river, an entrepreneurial temple of hotelier cuisine is the bling that diverts the eye from seeing what needs to be seen.

Just below the surface

There is an understandable and customary dig at middle-aged men but with a twist on the usual, predictable affair with a younger model, with Leo attempting to have his cake and eat it. A setting of fine dining, lends itself to the customary style over substance debate and of course the market price of every thing.

Wood for the trees

From a financial planning point of view there are numerous warnings that I would hope business owners can heed. One of the problems that business owners, or indeed anyone has, is that they are often too close to the problems to be able to see them clearly, let alone any workable solutions. It is certainly hard to fathom how any decent financial planner could not draw attention to what is revealed within the plot (which I shall not spoil).

Virtually reality?

One of the most popular criticisms of social medial is that it has encouraged us to live false lives, like those contained within magazines, or indeed within television or film. Whilst I’m sure this has some truth and resonance, this all rather depends upon each of our ability to be truthful, yet mindful of impact, timing and social etiquette. There is nothing new about attempting to be something you are not, which is perhaps one of the oldest dramatic tools.

The truth can be painful

Of course, not everyone wants to see or hear the truth, particularly when it is going to require some change. I sometimes wonder if this is what puts most of population off from seeking financial advice. Deep down most of us know that we need to master our money lest it master us. A financial plan is designed based around your values, grounded in truth and enables you to see ahead to any potential “surprises”. In essence making sure your plans for style have substance.

Here’s the trailer for the series on Sky.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

DeliciousDominic2025-01-27T16:08:29+00:00

Business Owners Beware

Business Owners and Employees Beware

Business Owners and Employees need to be aware of fraud that could cost a business its existence. Technology is fantastic, it enables us all to do things much more quickly and also opens up so many new opportunities. However, we all know it is a double-edged sword which can work against us. I imagine that everyone with an email address has had some form of email scam or fraud – everything from the rather obvious “I need you to help part $X million in your account and will pay you a share” to much more sophisticated scams.

The real problem is that in a world where you make purchases all the time from people and businesses that you have never “met” invariably this reduces your ability to spot a scam. There is an interesting story on the BBC website about how the Accountant to a business was pressured into sending €500,000 from one of their clients’ accounts. On the surface it seemed legitimate, but thankfully was caught.

Time Pressure

Often fraudsters will use the pressure of time for a deal or lost opportunity (increasingly common in many marketing campaigns as it is). However, some firms produce lots of information – for example online diaries, showing when people are available (capitalising on times when they are unavailable). So a sense check is often the first thing you should do. Where money is concerned, a good financial planner is someone that you will have a trusted relationship with. So he or she should have a pretty good idea about your plans – assuming that you provide information honestly and that suitable questions have been asked.

In the case the BBC highlight, the Accountant was informed that the money was to be used to buy a business in Cyprus. One would hope that the business would have discussed such a plan with the Accountant in advance (if true) so it would not be something out of the blue. Similarly, a financial planner, really should have a good idea of when you might need money – for school fees, a wedding, a property purchase and so on. In practice few expenses should be a “surprise”. This relationship is likely to mean that fraud can be spotted more easily, but in no way guarantees it.

Anyway, be mindful that anyone that has access to any of your accounts – business or personal might unknowingly sign off something believing it to be true. You are responsible for your accounts and need to ensure that you have a process to sense check financial transactions. Here is the BBC item. Click here to see.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Business Owners BewareDominic2025-01-28T09:55:27+00:00

Experience of a Lifetime

Experience of a lifetime

Well, here we are in December. The world remains in a state of anxiety about a plethora of challenges and even here in Britain, many are suffering from the weather conditions which make for a difficult Christmas.

Christmas reminds me of many things, the nagging feeling that Christmas seems to have arrived quickly and that time is moving along all too rapidly. Whilst many are struggling simply to find shelter this Christmas, much like the central characters in the nativity story, I am reminded how harsh life can be for many people and how quickly circumstances can change. 2015 has certainly had more than its share of crisis and disaster.

Whilst our media and deep mid-Winter are full of bleakness, I remain thankful that I live in the relative safety of Britain, despite all our problems. Yet I am also reminded that life is indeed short and there are still many places that I’d like to see and things I wish to “witness”. Apart from the usual trappings, the Christmas break is also an opportunity to reflect on the coming year, for many this will include planning your next holiday, perhaps one from your bucket list?

Trip of a Lifetime

One of my clients runs a boutique travel business and it occurred to me that there are a number of similarities in what we do. There are certainly lots of questions about where you want to go and importantly an independent mindset that is able to put together suitable great experience. What I had not appreciated was that it actually costs the same amount whether you use the expertise or not. I have certainly used the web to book holidays in the past, spending hours, trawling through endless options, but simply had not appreciated that someone else could do this for me, an expert, and it wouldn’t cost any more!

Mercator Travel have several brands which they use to focus their expertise on specific regions of the world. For example, south or central America is currently a great destination for those seeking something memorable and rather different. If you are anything like me, I have forgotten what I gave and received last Christmas, yet I never forget holiday experiences.

As a boutique business, they place great emphasis on creating a wonderful experience and getting all the little details right. Apart from ensuring that your trip is planned perfectly, the business is built around providing a top drawer service, with the aim, like every good business of creating a great reputation and clients that return. So if you are considering a great trip in 2016 may I suggest that you check out a couple of their websites.

Just in case you think there’s something in it for me – there isn’t. I am interested in helping all of our clients, profiling those that run small independent businesses and of course those wishing to get more from life with a lot less hassle. Do give them a call on 01932 424252.

Postcards from the Edge…

Financial planning isn’t meant to be dull, its about your life and helping you to figure out what you want from it. This is often difficult for most people to verbalise, there’s something within our British-ness that makes most of us reluctant to express this. How you spend and give your money is one of our freedoms and invariably for the vast majority there is often an unspoken connection of shared experiences and a sense of purpose just beneath the surface. There is little point in building up wealth if you don’t get to use it.

One of my peers shared an idea with me that he finds works well with his clients. He asks them to send him a postcard from wherever they have been. He displays these in a book in his reception. The idea being that there is a huge variety of clients and the places they visit yet all share the freedom to enjoy some of the money that they have worked hard to save. He gets lots saying “enjoying spending the inheritance… pension” or whatever. The point being that financial planning when done well brings the freedom to make empowered financial decisions – many of them are a lot of fun. So perhaps I will ask you to do this in 2016 as well.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Experience of a LifetimeDominic2025-01-28T14:35:49+00:00