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In a relationship, there’s nothing less romantic than finances. However, research shows that speaking more openly and transparently about money can actually bring you closer together. This is especially true during the cost of living crisis, where research shows money is increasingly the focus of tension and arguments.

In this week’s blog, we’ll explore:

• Couples financing in 2023
• What financial infidelity is
• How to get better at financial planning and build financial intimacy

Couples and money talk in 2023

Research shows that when it comes to money, in relationships, pressure has really piled on in recent years, with the cost of living crisis making things increasingly difficult.

As a result, more and more people are reaching out for help in these areas. According to the website Counselling Directory, there has been an increase in the number of people using its site to find a therapist and in a survey of the Directory’s therapists, a third reported more clients have been talking about relationship problems caused by rising living costs.

Likewise, an Aviva study found that while 5% of couples argue with their partner about money daily, 12% have noticed a significant increase in the number of finance-related arguments since the cost of living crisis ramped up.

Financial infidelity

While many have heard of emotional or physical infidelity, financial infidelity is lesser known but equally as destructive. This kind of infidelity happens when there is dishonesty relating to personal finance in a relationship, whether that’s having a secret credit card, hiding debts or purchases or having a secret gambling addiction.

Aviva research shows that this kind of infidelity is actually rather prevalent, too, with two in five of those in a relationship or marriage committing ‘financial infidelity’. For example, 38% of people admit to stashing money away, with the amount squirrelled away averaging at over £1,600; 32% have more than £2,000 stashed away.

There are many reasons why people hide financial decisions from their partners, but researchers suggest that often, one of the main reasons is shame.

Interestingly, couples from the younger generations are more likely to commit financial infidelity. For example, 63% of Generation Z couples are followed by 54% of Millennials.

Speaking about this, Alistair McQueen, head of savings and retirement at Aviva, said: “Being upfront, honest, and transparent about your finances with your partner can help avoid problems in the future.”

Adding: “Having a general view of how much is being spent each month, along with overall debts or savings across the household can be important when it comes to making decisions about longer term financial objectives like when you can afford to retire, or whether to downsize your home to release some capital to help your children.”

Moreover, many are able to recover from financial infidelity. The road to recovery can begin by being honest with each other, and acknowledging that financial infidelity has taken place. Listening to each other without judgement can be difficult, but experts explain this a key step to resolving the situation. Likewise, experts also say it can be an opportunity to examine your relationship and finances and, in the future, strive for transparency.

Enhancing financial planning and building financial intimacy

Research shows that while over half of the marriages end in divorce, most divorcees cite “disagreements over money” as the biggest reason for their split. As a result, experts suggest that having a clear understanding of where your respective finances are, planning things out together, and embracing transparent financing can help.

Some tips for enhancing financial planning and building financial intimacy include:

Discussing, setting and achieving shared financial goals: When you’re both agreed on a direction you want to head toward, it’s easier to budget, make a budget, track your expenses, and build savings for the future. Initiating conversations might be difficult, but there are some top tips for making things as smooth as possible:

• Avoid discussing money before you go to bed,
• Don’t drink alcohol before discussing finances; it can often make people more disinhibited, leading to less productive financial conversations,
• Make finance conversations a regular occurrence rather than a one-off. This will help you both feel more comfortable discussing money and forging financial plans.

Have an open, honest conversation about single versus joint accounts and what will work best for you both: These days, the split is about 50:50 when it comes to shared bank accounts, with many preferring to keep their finances separate from their partners’ and 49% doing so in order to remain financially independent. Of course, there are pros and cons on both sides. A joint account can help you and your partner keep things all in one place for savings and bills, but it can have wider financial implications, so make sure to think it through. For example, if you enter joint debt together, for example, a mortgage or loan, you’re both liable for the payments.

Equally, if you’ve decided you no longer want a joint bank account after opening one up, there are some tips to follow:

• Be sure to open up a new account first,
• Cancel or redirect direct debits,
• Transfer all your finances, recurring payments/bills and deposits,
• Split your money fairly.

Reach out for financial support: Research shows that financial planning support can help couples gain insight into their finances. Further, those who receive financial planning support are more likely to be unified in their financial decisions, and have more transparent communications about money.

Regularly check in about finances: Making sure to regularly review your financial situation with your partner can be a healthy way to make sure you’re both on the same page; whether that’s regarding individual concerns and anxieties, updating finance goals, or reassessing budgeting.

Decide who will pay for what and how bills will be split: A significant point of contention between couples is often how the household income and spending should be split. Experts have found that around 16% of arguments have their roots in bill contributions. So, to alleviate some of the stress and strain here in relationships, make sure to come up with an agreement that suits you both.

With news that council tax will be hiked by nearly 5% in some places across the country, it’s likely that you’ll be wanting to gain insight into what exactly your money goes toward and a breakdown of what is spent on what.

At The Salary Calculator, we’ve done the hard work for you, so you can understand more about your council tax bill. Below we’ll walk you through:

• The different council tax bands and how they’re calculated
• Where your money goes
• Which councils charge the most and the least
• How to check you’re in the right council tax band

Council tax bands

Council tax bands are calculated differently in England, Scotland, Wales and Northern Ireland, but in England, Scotland and Wales, there are between eight and nine Council Tax property value bands. In England and Scotland, A is the lowest and H is the highest, while Band D represents the midpoint of a “typical family home.” In Wales, however, properties are categorised into nine bands, from 1 (the highest) to 9 (the lowest).

Properties in England, for example, are categorised based on the price they would have sold for in April 1991. The same goes for Scotland, but in Wales, it’s slightly different, because the bands were revalued in 2003; as such, council tax bands are determined by the price a house would have sold for in April 2003.

Northern Ireland also has a different system; and while it doesn’t use council tax bands, it switched to a modified system of domestic rates, which is based on the capital value of individual properties. Under this system, to work out the ‘domestic rate poundage’ for your council area, the rateable capital value of your property is multiplied by the domestic regional rate and domestic district rate added together.

In England, the council tax bands are as follows:

• A up to £40,000
• B £40,001 to £52,000
• C £52,001 to £68,000
• D £68,001 to £88,000
• E £88,001 to £120,000
• F £120,001 to £160,000
• G £160,001 to £320,000
• H more than £320,000

In Wales, the council tax bands are:

• A up to £44,000
• B £44,001 to £65,000
• C £65,001 to £91,000
• D £91,001 to £123,000
• E £123,001 to £162,000
• F £162,001 to £223,000
• G £223,001 to £324,000
• H £324,001 to £424,000
• I more than £424,000

Where your council tax is spent

A few years ago, the Local Government Association analysed UK-wide data on council tax spending and projected that in 2019/2020, council tax would be spent on the following:

• 57p of each £1 would go to social care
• 8p would go to highways and public transport
• 8p would go to education support
• 8p of each pound would go to homelessness and planning
• 7p would go toward waste management and street cleaning
• 7p would also go to licensing, elections, trading standards
• 5p would go to museums, parks, libraries

Different councils will have different priorities when it comes to spending council tax, and a more updated, regional breakdown shows quite a bit of diversity. Below we’ve picked some councils from across the country to demonstrate this.

At Malvern District Council, for example, council tax is paid to five different organisations:

• For every pound you pay in Malvern, 70.4p is allocated to Worcestershire County Council, which goes toward adult social care, looking after children, road and path maintenance, libraries and waste disposal,
• 12.6p in each pound paid goes to the West Mercia Police and Crime Commissioner for crime and safeguarding,
• 8.7p stays with the district council to fund services such as waste and recycling collections, housing, parks, public toilets, and elections.
• 4.5p goes to Hereford & Worcester Fire and Rescue Service for fires and major emergencies,
• 3.8p in every pound goes to the town or parish council, for parks and playgrounds, cemeteries, bus shelters, etc.

Similarly, through Ealing Council, children’s and adults’ social care services are where most of the money is distributed, making up 60p in each pound of the council’s spending.

Elsewhere, Bath & North East Somerset Council’s spends:

• Adult Social Services: 48.9p,
• Children’s Services: 27.4p,
• Refuse Collection & Disposal: 12.1p,
• Highways, Transport, Planning & Economic Development: 8.8p,
• Housing & Public Protection: 5.6p.

In Uttlesford District Council, meanwhile, money is distributed as follows:

• 71p goes to Essex County Council,
• 11p goes to the Police, Fire & Crime Commissioner – Policing and community safety,
• 9p goes to Uttlesford District Council,
• 5p goes (on average) to town and parish councils,
• 4p goes to the Police, Fire & Crime Commissioner – Fire & Rescue Authority.

Dartford Borough Council spends council tax on the following:

• 74p to Kent County Council, for education, social services, adult social care, etc.,
• 9p to Dartford Borough Council, to pay for community and housing, refuse collection and recycling, environmental services, etc.,
• 11p to The Police and Crime Commissioner for Kent for crime and protection services,
• 4p to Kent and Medway Fire and Rescue Authority for fire and other emergency services,
• 2p to Town and Parish Councils (on average) for maintaining: allotments, common lands, burial grounds, play areas, etc.

Interestingly, in North Herts, the majority of your pound goes to waste collection and street cleaning. The spending figures are as follows:

• Waste collection and street cleaning – 41p,
• Parks and green spaces – 23p,
• Environmental health – 11p,
• North Herts Museum and Hitchin Town Hall – 9p,
• Housing advice and homelessness support – 9p,
• Community safety and environmental crime – 4p,
• Grants to community organisations, including area committee grants – 3p.

Council tax bills and spending comparison

As explained above, council tax bills and spending vary depending on where you’re situated within the UK, however, according to government council tax figures, the average council tax of a Band D property set by local authorities across England is £1,966. In London, however, the average Band D property is £1,684 a year.

Below we compare what some of the different councils in the UK are charging.

According to the latest figures, Pembroke council has the lowest council tax, ‘Band D’, in Wales for 2022-23 at £1,249.17. Meanwhile, the most expensive council tax band is Rutland County Council in the East Midlands, at £2,300 a year. Westminster, comparatively, has the lowest bills in England, with Band D homes set to pay around £920 a year with the latest hike, which is still less than half the average in England.

Check you’re in the right council tax band

Due to the way that homes were valued back in 1991, experts believe thousands are in the wrong band. So, it’s definitely worth checking.

You can do this by first checking with your neighbours’ council tax bands. And don’t worry, there’ll be no awkwardness because you don’t have to check with them directly; by using either, Gov.uk (in England) and Scottish Assessors’ Association (SAA)(in Scotland), you can find all the information you need. If your neighbours are in different bands, this could mean that you have a cause – but beware, it could go either way – neighbours’ bands could increase in line with your own. That’s why it’s important to do a valuation check – check out this free house price valuations guide, to find the tool that works best for you.

Once you’ve gathered the above information, passed the point of speculation, and done sufficient research, you can reach out directly to the Valuation Office Agency (VOA), or the Scottish Assessors’ Association (SAA) in Scotland. It’s worth bearing in mind that a formal challenge can only be launched if you’ve resided in the property for six months or less. Likewise, if your request is rejected, you have three months to appeal to the Valuation Tribunal.

There has been an exponential increase in the number of people pursuing a side hustle in the UK in recent years. Freelancing sites like PeoplePerHour, for example, have seen astronomical growth in the number of people signing up. Similarly, the number of people using Vinted and other selling platforms has also skyrocketed. Whether it’s to earn a bit of extra cash when money is tight or to pursue passion projects on the side, there are so many reasons why people are getting into the entrepreneurial spirit.

Interestingly, while you might think that working an extra job on the side of your main gig might make you feel worn out, studies have shown that having something on the side can actually lead to employees feeling more fulfiled.

That said, it’s important to note that while a side hustle can help top up your monthly wages and build your business, there are some important details to bear in mind. At The Salary Calculator, we’ll walk you through the following:

• Why more and more people are pursuing a side hustle
• The tax implications of adopting a side hustle
• How to protect yourself, business and employment when side hustling

More people join the side hustle revolution

Some call it the ‘Golden Age of Entrepreneurialism”; others the “Rise of the Side Hustle,” but one thing is for sure, more and more people are taking on extra work alongside their primary job. Whether a second job or a side project, a recent Barclaycard survey, found one in 12 people in the U.K. now has a side hustle, the equivalent of 6.49 million people.

A number of factors are fueling the surge, including the development of various technological tools and platforms, increased flexible working arrangements, and the rising cost of living. According to Aviva, some of the most popular forms of side hustling include selling handmade products, art and photography, and freelancing. Many are also increasingly using social media as a platform through which they can earn money.

The tax implications

If you’re taking on work alongside your main employment, you will need to declare your earnings with HMRC, and you’re also responsible for paying tax on any earnings you make. The only exception to this is if you earn less than £1,000, which is the threshold allowance of additional income outside of regular employment.

So, how do you go about this? Well, first, you’ll need to register your side hustle with HMRC and file a Self Assessment tax return. This needs to be done every year by 31st January, which is also the deadline for paying anything you owe. To make sure you have everything in order to report your earnings, be sure to keep copies of your invoices, bank statements and receipts.

While for the time being, those working a side hustle only have to submit an annual Self Assessment tax return, and payment on account on July 31st, HMRC is introducing Making Tax Digital for Income Tax. Through this new initiative, those earning money through a side hustle will have to submit quarterly returns, and a single final declaration for all income on January 31st. While this was due to be introduced in April 2024, this is now being pushed back and is launching in two phases:

• April 2026 for those earning over £50,000, and
• April 2027 for those earning over £30,000.

It’s always good to make sure you’re keeping track of your finances and putting money aside each month to pay your tax bill, so you’re not left with a big bill at the end of the year and unsure of how to tackle it. To figure out the exact tax implications of your side hustle alongside your full-time employment, head over here.

When you register with HMRC, you’ll also have to decide how you’re registering, whether that’s as:

• A sole trader
• A partnership, or
• As a limited company

If this all sounds like a headache, it could be work speaking to a tax advisor to get expert insights on the tax implications. Likewise, there are accounting platforms that can help make dealing with taxes a bit easier. Xero, Sage and QuickBooks are some of the most popular.

Safeguard your side hustle

When it comes to earning extra income on the side of your main job, often safeguarding your business can be a bit of a second thought. However, it’s key to make sure that you’re protected and doing everything above board, because side hustling can be potentially risky without taking the above into consideration.

First of all, check your employment contract, as some companies require you to disclose business activity outside of your day job. More often than not, if your business operates outside of your working hours, is not distracting you from your full-time job and you’re not operating in competition with your employer’s business, your employer will give your side hustle the green light.

In addition to this, it’s essential you find out the obligations for your industry, as you might require a licence and it’s also worth looking into whether your business could benefit from insurance. Some options include:

• Public liability insurance, which applies when someone gets injured or incurs a financial loss, and holds your business responsible,
• Professional indemnity insurance, which protects you if a client loses money as a result of bad advice, services, or designs,
• Employers’ liability insurance, which only really applies if you choose to develop your business and take on staff to assist you with your work and is a legal requirement.

Crypto can feel like a bit of a minefield at the best of times, it is undoubtedly volatile, and currently, comes with fewer legal protections. However, as governments increasingly look to capitalise on the cryptomarket, and a number of high-profile hacks, regulation is on the way. This was first seen in the Financial Services and Markets Bill (FS&M Bill), and its latest proposals concerning the regulation of cryptoassets.

At The Salary Calculator, we know how challenging it can be to navigate the ins and outs of crypto and if you’re thinking of dipping your toe in as a potential investment opportunity, you’ll likely want to know where you stand from a regulatory point of view. Below, we’ll walk you through:

• The current risks associated with crypto
• The government’s regulatory plans and what they’ll involve
• How you’ll be affected as a consumer and how to keep safe when trading

Current risks associated with crypto

Crypto is known for being elusive, and volatile. According to research by the All-America Economic survey, only 8% of Americans have a positive perception of cryptocurrency. It’s only slightly better in the UK, too, with 15% thinking positively about crypto.

It’s no wonder there’s such a bad perception of the currency, either: it’s a big energy sucker, not VERY environmentally friendly, people often make losses trading (three-quarters have likely lost money on their investments in cryptocurrencies) and billions have been stolen in recent years.

Recent research by Chainalysis found that 2022 was the biggest ever year for crypto hacking, with around $3.8 billion stolen. Speaking about this, Kimberly Grauer, director of research at Chainalysis, said: “This year we saw some really big attacks that accounted for a lot of the value hacked. We saw a lot of advancements in the Web3 space – that introduced large new vulnerabilities that expert hacking organisations exploited.”

The EU has already outlined the world’s first comprehensive set of rules, due for final approval shortly, and to be introduced by next year. The UK is now following the EU’s example.

Plans for increased safety

To battle against the fraud and theft that is rife in the cryptomarket, the UK government has set out plans to bring in tighter regulation. According to the Treasury, this regulation is pegged to “protect consumers” without “stifling the potential economic benefits” of the crypto industry. This comes after criticisms that crypto is, at present, a “wild-west.”

So, what will the regulation actually do? Well, according to the government it is going to bring regulation of a broad suite of cryptoasset activities in line with its approach to traditional finance.

The government has outlined in its consultation for the proposals:

• It will create rules on crypto-asset promotions which are “fair, clear and not misleading,”
• Boost data-reporting requirements, including with regulators,
• Introduce new regulations to prevent “pump and dump,” which involves people artificially inflating the value of a crypto asset before selling it.

In a statement, Andrew Griffith, economic secretary to the Treasury, said: “We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology. But we must also protect consumers who are embracing this new technology, ensuring robust, transparent and fair standards.”

How the changes could affect you and how to keep safe when trading

According to research, 2.3 million people in the UK own some form of crypto asset, which means that there’s a whole host of people that could be affected by the regulation proposals currently open to consultation.

There are a few key things to note and below we’ll go into a little more detail:

• The government is discussing an issuance and disclosure regime, which will seek to provide appropriate liability and compensation for untrue or misleading statements, as well as minimum standards of information around issuance and investor protections regarding marketing materials,
• Regarding exchanges, the government is exploring “transparent and fair access and operating rules,” with systems and processes for ensuring accurate market data in real-time,
• It is proposing a dedicated regime to detect and tackle market abuse in digital asset markets (spoofing and layering, pump and dumps, wash trading, etc.),
• With regard to lending programs, the government outlined there should be: adequate risk warnings for consumers; adequate liquidity and wind-down arrangements; clear contractual terms for ownership and, ringfence retail funds in the event of insolvency.

Further to this, on Monday 6th February, the Government published a policy statement on its approach to cryptoasset financial promotions regulation. This outlined that cryptoasset promotions to UK consumers, will have to be clear and fair, and offer customers a 24-hour cooling-off period.

Speaking about the proposals, Jason Guthrie, European head of digital assets at the financial firm, Wisdom Tree, said looking forward, the “devil would be in the detail” with the right regulation in the interests of the industry and customers. “Having a solid a regulatory framework, having enforcement capabilities, is really important for consumer confidence. The sooner we have details around concrete proposals, the easier it is to plan for and build towards,” he said.

The proposals would largely see more security around investment, however the consultation on the proposals will run until April 2023, and safeguards will not be introduced for quite some time. Even when they are introduced, they still won’t eradicate all the risks associated with trading. Until then, to ensure you safeguard yourself, take the following steps to make investing safer:

• Be sure to use a trusted crypto platform and make sure to carefully read your exchange’s user terms and agreements. This will assist you with finding out where your funds are stored and what will happen if an exchange goes bankrupt.
• Enable two-factor authentication so that you’re provided with an additional layer of security.
• Avoid Public Wi-Fi Networks, unless you have a VPN. This is because public Wi-Fi networks are vulnerable to hackers and allow them to spread malware.

There are no two ways about it, for most people, January is one of the hardest months of the year, with February following close behind. In the months following Christmas, people are often feeling tired, tight on money and just generally a bit dismal. However, a good way to banish the winter blues is to find something to look forward to, such as a little (or big) getaway.

At The Salary Calculator, we know that it can be challenging to find a good deal when it comes to booking a holiday – you don’t want it to cost you an arm and a leg. So, below, we’ll walk you through the following:

• Our top holiday saving and low-cost holiday tips
• Some of the firms offering low-deposit options for holidays
• Some good holiday deals and places to compare deals
• Tips for avoiding holiday scams

Holiday saving & low-cost tips

Thinking about the total cost of a holiday can be a bit overwhelming, so you might feel tempted just to wing it and hope for the best. However, to ensure that everything goes to plan, it’s best to break down everything that you’re likely to need and make sure you set aside enough money so that you can enjoy your holiday to the fullest.

While you may have thought of the basics, such as accommodation and travel costs, make sure to also include the following in your list:

• Travel insurance – to cover you for any mishaps or lost luggage,
• Travel money and any currency exchanges you may have to sort out,
• Toiletries for your trip, including sun cream, so your holiday is not ruined by singed skin,
• Any new holiday clothes or swimwear you might be required to purchase,
• Whether you’ll need to hire a car once you’ve at your destination – don’t forget about car insurance too,
• Whether you’ll want to travel in and around the place you’re visiting and how much this is likely to cost,
• Entertainment costs,
• Food and drink costs – whether you’re planning on buying it at the supermarket or eating out.

Once you’ve identified the key areas you’ll be saving for, there are a number of ways you can then proceed with your savings mission, whether that’s in little ways, like putting your spare change in a jar each week or opening up a savings account. Why not use a savings or budget calculator, too, to make things even more straightforward for yourself?

Savings can also be made in other ways, for example, by booking your flights in advance. According to Expedia, international flights booked four or more months in advance end up saving people around 20% off their fights when compared with those booked closer to the flight, like two months prior. The same goes for train tickets if you arrange a getaway a little closer to home. Likewise, when flying with a group of friends or family, you might be tempted to pay extra to get a seat next to your group, however according to research by MSE, all airlines, aside from Ryanair, always aim to allocate group seats together – this can be further guaranteed by checking in to the airport as soon as possible.

Likewise, The Civil Aviation Authority (CAA), the aviation regulator, says airlines should “aim to sit parents close to children” – if this isn’t possible, they should not be separated by more than one aisle or more than one seat row.”

Firms offering small deposit options

In the months following Christmas, there is always an influx of holiday bargains to be had, and there is a wide range of companies offering small deposit options:

• EasyJet’ offers holidays with a £60pp deposit, a 23kg luggage allowance and an option to pay in instalments.
• First Choice offers a low deposit scheme to help those looking to go on holiday spread the cost of their getaway even if they don’t have the money at the time of booking. Its offerings start as low as £60pp.
• TUI also offers low deposit holidays with prices starting at £50pp.
• Jet2holidays offers customers the ability to pay a £60pp deposit to secure their holiday and then pay the balance ten weeks before they jet off.

Finding good holiday deals

The best way to find the perfect holiday deal for you is by first checking out comparison sites. Skyscanner is a good site to visit if you’re looking to find the cheapest airline flights. Kayak is similarly a good starting point for finding both flights and hotels. Likewise, it’s always work checking out TravelSupermarket.

If you’re looking for sites that offer legitimate flash sales, check out Holiday Pirates or Travelzoo. However, you’ll also likely find good deals if you plan ahead, as many places offer early booking codes or discounts.

Likewise, who says that a holiday has to be abroad? These days, more and more people are opting for a staycation rather than travelling internationally. There are a number of companies offering affordable getaways in the UK, including:

• My Seaside Luxury, which offers a range of affordable sea-view apartments
• UniversityRooms.com allows you to stay in student accommodation, in some cases, for as little as £90 for en suite doubles, for those looking for a budget trip in a university town like Oxford or Cambridge.
• Malmaison similarly has hotels in 16 UK cities, and offers a £75 a night stay across 13 of these locations.

Watch out for holiday scams

Lots of people are keen to get away at this time of year and, in the cost of living crisis, are trying as hard as they can to identify the best deals. Statistics show that 25% feel they’ll be unable to afford a holiday without a good deal. Of course, when people are desperate for good deals, they’ll be people who take advantage of that, and charities are warning that holiday scams are on the rise.

A recent poll by Opinium found that one in ten people would book a holiday through an unknown provider if it meant paying less. Considering these statistics, it’s important to stress that when booking a holiday, you make sure that the company is legitimate and verified. The best tip here is to go with your gut, if you feel like something feels dodgy, for example, the links look suspicious, or the deal feels ‘too good,’ trust your instincts. Likewise, paying with a credit card can add another layer of security.

Tony Neate, CEO at Get Safe Online, outlines: “As the cost of living rises, we want to help protect everyone’s hard-earned cash and urge people to stay alert when it comes to booking a holiday. Trust your instincts and remember: if a deal looks too good to be true, then it probably is.”