They could reclaim the 5 per cent difference but in practice often

They could reclaim the 5 per cent difference, but in practice often didn't.By comparison higher-rate tax payers were always going to miss out. All tax payers will be better off, according to Coopers & Lybrand, as a result of income tax changes including a cut in the basic rate to 24 per cent, and the point where higher rate kicks in rising to pounds 25,500 over and above allowances(pounds 29,265 for single people).But another seemingly attractive tax change - a cut in savings tax to 20 per cent - may well prove not to be worth much in practice. They are unlikely to suffer another carpeting.PEOPLE may be more likely to acknowledge Easter than that other diary entry this weekend - the new tax year.There is, however, some cause for financial celebration. A predator might include carpetbaggers in any new offer in an attempt to win support.Alternatively, Mr Robinson's successor might well see advantage in playing the same card - it could help re-establish the society's credibility.Either way, carpetbaggers who are still with the Woolwich should keep their accounts open and wait.

It was Mr Robinson who coined the term "carpetbaggers" - savers who open accounts in the hope of a windfall. His exclusion of perhaps 40,000 savers from the Woolwich's free shares handout turned into a serious PR gaffe.It was not just what he did, which theoretically meant more money for longer-term savers and borrowers, but his contemptuous je ne regrette rien stance which so enraged and contributed to threats of legal action.But Mr Robinson's departure could well be a prompt for the excluded carpetbaggers to be let back into the windfall fold.After last week's fiasco, the Woolwich is that much more vulnerable to being taken over. The same applies to health problems resulting from a hazardous hobby. Disclose all relevant facts when you apply for cover or your claim may be turned down.q Next week: how the new tax self-assessment regime affects the self- employed.. BUILDING society carpetbaggers may get the last laugh.

Last week saw the ousting of Woolwich chief executive Peter Robinson for alleged misuse of the society's resources, including landscaping and decorative input to his mock-Tudor-style home in Brasted village in Kent. Some policies pay out on an own-occupation basis for a couple of years and then pay out only if you cannot do any occupation.o The period of cover If the worst happens, you may be unable ever to work again. So a policy that pays out until retirement offers the best protection. You may be able to choose the period of cover, and a shorter period will be cheaper.o Health history and lifestyle. Illness or disability from problems you had before taking out the insurance may be excluded or your premium could be raised. Where you have "any occupation" cover, the policy may pay something if you cannot earn as much as before in an alternative job.

A policy which pays out if you can't do your own job provides better protection. Jobs that carry a higher risk of illness or injury cost more Some people won't be able to get cover at all. For example, insurers may reject applications from divers, demolition workers, fishermen, or JCB drivers. Some policies cover you if you cannot do your own job (or a similar job) while others cover you if you can't do any job. This insurance won't help you if you can't work for just a couple of weeks. The earliest a policy will pay out is usually after four weeks' illness.

"A deferred period of just four weeks can be very costly," says John Hutton-Attenborough of independent financial advisers Berry, Birch & Noble.Our table highlights how much you can save - or how much extra you will pay - for selecting different deferred periods.o Your job. And if you can't afford the full cover of 50 or 60 per cent of earnings, you can always opt for a lower level.o The deferred period. Check what stance any company takes.Some policies have the premium and level of cover guaranteed (including guaranteed increases of premium and cover in line with inflation). Others, including unit-linked policies, will review premiums. If you've had low earnings in the 12 months before you claim, your benefit may be based on those earnings. There is thus no point in paying higher premiums for higher cover which you won't actually receive.The variability of earnings of the self-employed can cause problems. Most companies now allow you to insure for up to 50 or 60 per cent of your pre-tax earnings.