QuickQuid owner collapses into administration
28th October 2019.
James Salmon, Operations Director.
QuickQuid owner collapses into administration
Payday lender QuickQuid is folding after its owner, Enova, failed to reach agreement with the UK’s financial ombudsman over how many customers it should compensate over past loans.
CashEuroNet UK, which operates the QuickQuid and On Stride brands, stopped lending after Grant Thornton was appointed as its administrator on Friday.
Payday lenders have been struggling after the Financial Conduct Authority imposed affordability checks and capped payday loan charges in 2014. John Cullen, business recovery partner at Menzies, said: “For former customers, who feel they have been taken advantage of and are in financial hardship, the future is still uncertain, as the value of any compensation payouts will now depend on the process of closing the company.
What is clear is that in the face of growing regulatory pressures, the curtain appears to be drawing on the payday lender market.”
Former customers of collapsed payday lender QuickQuid will need to apply for compensation via an online portal, the firm’s administrators have confirmed. Grant Thornton will run the system and has promised the service will be “quick and easy”.
Other Business news from the weekend.
Is Philip Day a liquidator or a retailer?
The Sunday Times reports on how Philip Day’s takeover of Bonmarché and its collapse after he took it private was all part of a clever plan to restructure the women’s fashion chain and fold it into his Edinburgh Woollen Mill empire. He took Bonmarché private in July in a cut-price £5.7m deal, despite warnings from PwC that it might not continue as a going concern. Day provided a loan facility and an overdraft in exchange for security over the company’s assets so any new owner would have to repay Day’s loan. But if Day reclaims the business, it will be shorn of its debts and lease obligations, leaving suppliers and landlords out of pocket. A source close to Bonmarché said: “This is planned financial engineering, pure and simple […] He does it under the guise of being a retailer, not a liquidator, which is quite clever.” FRP Advisory are Bonmarché’s administrators.
Mothercare calls in KPMG to help
Mothercare has drafted in restructuring experts from KPMG to assess options for its troubled UK business. Mothercare carried out a CVA with KPMG last year to shut 55 stores and a second CVA is on the cards, but KPMG said a sale of the UK business was the preferred solution.
Complicated death taxes and stamp duty killing housing market
The property market is being gummed up by inheritance tax rules with older homeowners put off downsizing so they can benefit from high allowances under the residence nil-rate band exemption. Also known as the family home allowance, the tax break allows homeowners to pass on £150,000 of property wealth tax free, on top of the existing £325,000 standard IHT allowance, if leaving a home to a direct descendant. In 2020 this increases to £175,000 and means spouses and civil partners, who can share their allowances, will be able to pass on up to £1m free of tax. But some are deciding not to sell up and move to a smaller, less valuable home or into care in an effort to pass on as much wealth as possible, exacerbating the supply problem in the market. However, there is an additional relief which offsets the loss incurred by selling before the allowance increases against other assets in the estate that a direct descendant inherits. And y Butcher, of wealth advice firm Raymond James, called the system “ridiculously complicated” while the OTS has recommended the downsizing provision be removed altogether.
CPS says stamp duty hurts mobility and aspiration
Alex Morton, who was responsible for housing and planning under David Cameron when he was prime minister and is now head of policy at the Centre for Policy Studies (CPS), has drawn up plans that would see stamp duty scrapped on properties costing under £500,000. Under the proposals, buyers would pay 4% on homes costing £500,000 to £1m and 5% above £1m, plus a 3% surcharge for overseas purchasers. At present, stamp duty is paid in England and Northern Ireland on homes costing more than £125,000. “We propose a far more appropriate rate for the most valuable homes – and taking nine out of 10 people who just want to buy a decent home for themselves and their family out of the tax altogether,” Morton said.
Walters on Labour: People will just leave
Harriet Dennys interviews Robert Walters in the Mail on Sunday. His stake in his headhunting firm is worth £12.5m. Robert Walters Plc has placed more than a million City workers in new roles and grown in value to £384m. Walters says people are “sitting on their hands” as they wait for a resolution to the Brexit negotiations. But his biggest concern is a potential Corbyn-led Labour government. “There’s this devaluation of the entrepreneurial spirit within the Corbyn camp; there’s no incentive to really work,” he says. “So the whole spirit of employing people and growing a business, which is really healthy, could evaporate if there’s a change of government.” Labour “would be a massive negative for the country,” he adds. “People will just leave.”
Surveys expected to show Brexit dampening UK economy
A series of surveys this week are expected to show the weight of Brexit uncertainty on the UK economy. The CBI’s distributive trades survey is expected to show retailers struggling while the GfK consumer confidence survey will indicate household gloom over economic prospects. The PMI for manufacturing will on Friday show the sector in recession, the Sunday Times reports. Finally, a new assessment of the economy by the ratings agency S&P predicts growth of just 1.3% a year over the 2020-22 period. Britain’s outlook remains negative due to “the risk of sustained economic weakness”, S&P said.
Robot traders will accelerate market collapse
With tomorrow marking the 90th anniversary of Black Monday, 1929, the Sunday Express warns that liquidity risk and the rise of high frequency “robotic” trading could trigger a meltdown to match the worst in history and force more funds like Neil Woodford’s to suspend trading. The paper notes that James Burns, portfolio manager at Smith & Williamson, is avoiding UK smaller companies over liquidity fears. Brian Dennehy, managing director of FundExpert, says with two thirds of stock market activity now made up of high-frequency trading, in the next downturn, “it will be machine against machine.”
Plans to end rural mobile coverage blackspots
The UK’s four mobile network operators – Vodafone, O2, EE and Three – have agreed to spend £532m between them over 20 years to remove so-called not-spots in the countryside where mobile phone coverage is poor. The deal with the Government is designed to ensure 95% of the UK has 4G coverage by 2025. The Government could contribute a further £500m into the scheme. Mike Cherry, national chairman of the Federation of Small Businesses, said that a shared network “would go some way to help to bridge the widening communication gap in the countryside”, where companies were “blighted on a daily basis” by poor connections. Fifty-seven per cent of small businesses in rural areas report unreliable connections on their mobile phones, according to FSB research.
Brexit workshops get small businesses ready to trade
The Department for International Trade (DIT) has held 130 Brexit workshops for small businesses trading with the EU and will soon launch a new market access database for UK traders, the government has said. To date, 2,047 businesses have attended the workshops and 86% felt more prepared for Brexit as a result. More than 2,700 businesses also attended 30 Brexit readiness events organised by the Department for Business, Energy and Industrial Strategy with a similar proportion saying they were more prepared after having attended.
Airbnb ban could return as cost of rent-a-room tax break spirals
The most recent data suggests tax relief under the rent-a-room scheme will cost HMRC £230m for the 2018-19 tax year – 53% more than expected. Rent-a-room relief allows people to earn £7,500 a year tax-free by letting a furnished room in their property, or £3,750 per person if the property is jointly owned. The spike in tax relief is thought to be a result of an increasing number of people renting out rooms using Airbnb. A ban on Airbnb landlords profiting from the tax break was proposed last year but scrapped as the government rushed through the Finance Act 2019. George Bull, a senior tax partner at RSM, believes the ban could come back on the table especially considering HMRC’s concern that Airbnb may not be paying all the tax it should.
Wealthy Britons hold back on philanthropy
Analysis of charity donations on self-assessment tax forms shows that nearly two thirds of people earning more than £250,000 gave nothing to good causes last year. People earning more than £250,000 donated an average of only 1.7% of their income last year compared with 3.1% by those earning less than £50,000. In total, almost one million people earning more than £100,000 made no donations. Donations by the rich are down 12% over the past five years compared with a 4% drop among the least well-off. Campaigners say one reason why donations from the wealthy are falling is because only one in ten financial advisers in the UK asks someone selling their business what they want to do about philanthropy.
RSM ventures where other auditors fear to tread
The FT’s Tabby Kinder says how RSM handles the Sports Direct audit will affect the chances of the accounting sector being opened up to greater competition for the Big Four.
Financial Times, Page: 18
Key Facts and Trends in the Accountancy Profession
The Financial Reporting Council has released its seventeenth edition of ‘Key Facts and Trends in the Accountancy Profession’, which provides statistical information and trends on the members and students in the accountancy profession.
Financial Reporting Council
Amplifi Solutions sets up shop in Edinburgh
Northern Ireland-based research and development (R&D) tax credit specialist Amplifi Solutions has opened an Edinburgh office as the firm looks to make its mark in Scotland. R&D tax credits can be awarded to any company providing they are undertaking steps in research and development – even when those projects do not succeed. Jamie Watts, commercial director at Amplifi Solutions, said: “R&D tax credit statistics published by HMRC in October showed that an incredible £175m was claimed in R&D tax credits here in Scotland, with each company claiming on average nearly £80,000.”
Begbies buys Alexander Lawson Jacobs
Begbies Traynor ’s shares were up 2½p to 87½p after it bought London-based insolvency practice Alexander Lawson Jacobs for an initial £2.35m. Begbies will pay a further £4m in cash if financial targets are achieved over five years.
Over-50s to get ‘wake-up’ alerts on retirement pots
Pension savers above the age of 50 will receive ‘wake-up’ alerts about their pensions from next Friday, as part of efforts to encourage those who are not saving enough to get their pension pots on track. The short documents will tell savers the current size of their pot, indicate the income it might generate in retirement, what they are being charged, how the pension is invested, and where to turn for help. Separately, the Telegraph highlights analysis by Brewin Dolphin which shows the power of starting to save early. Assuming annual investment returns of 5%, a worker aged 30 with no pension savings would need to put away £440 a month in order to have a pot worth £500,000, capable of providing an income of £20,000, at the age of 65. But a saver who started at 21 would need to save just £261 a month.
Pension firms resist over compensation payouts
Pension companies are resisting calls to begin settling compensation payments for pensioners whose “guaranteed minimum pensions” were calculated at different rates after the High Court ruled the practice illegal last year.
CIOT issues budget warning for Scotland
The Chartered Institute of Taxation (CIOT) warned on Friday that a delay to the UK Budget will put Scotland’s Finance Secretary Derek Mackay in a “tight corner” when it comes to planning Scotland’s finances for the next year. Mr Javid said his Budget planned for 6 November will not go-ahead as the UK government pushes for a 12 December election. The CIOT said this will hinder Scotland, with Mr Mackay due to issue his spending plans on 12 December.
ONS admits £1.5bn public finances error
The ONS has said that the UK budget deficit is as much as £1.5bn less than what had been previously reported after a statistical error. A year-to-date budget deficit of £40.3bn, excluding public-sector banks, was reported earlier this week. The ONS now says there was “an error in the measurement of local government social benefits.”
Can we buy our son a house without having to pay tax?
Stephanie Parker at Haysmacintyre and Philip Munro at Withers offer some parents advice on ways in which they can gift money to their son so he can buy a house.
Financial Times, Money, Page: 11
Grape plot squashed as tobacco smuggler jailed
A lorry driver has been jailed for four years and eight months after smuggling eight million cigarettes into the UK disguised as grapes. Miklos Sokorai, 48, of Ukraine, tried to smuggle the cigarettes worth £2,500,229 unpaid duty into the UK through the Port of Dover, an HMRC investigation found.
Labour eyes more tax from tech giants
A Labour government would launch a £14bn tax raid on multinationals such as Amazon, Google and Apple, the party has said. Shadow chancellor John McDonnell is drafting plans to prevent such firms from using “arm’s-length” arrangements that allow them to pay tax in countries with lower rates. A new report from Tax Justice Network adviser Professor Sol Picciotto and Daniel Bertossa details how companies would be taxed on the basis of where their sales, assets and workforce are located and not where they have decided to book their profits. The plan would treat multinationals as one company, rather than continuing to allow subsidiaries in different countries to pay each other loans, transfer profits and assign intellectual property rights to spread liabilities to low tax jurisdictions. The £14bn figure could increase when Labour raises business taxes further.
The Sunday Times, Page: 4
Gibraltar could be given a peer in the House of Lords
Fabian Picardo, the chief minister of Gibraltar who was elected to another four years in office earlier this month, has said the Rock could be given a peer in the House of Lords in a move that could open the door for other British Overseas Territories to have representation at Westminster. Gibraltar does have significantly lower corporate taxes than the UK representation in the Lords would allow the territory some scrutiny over financial regulations that affect it. Conservative MP Andrew Rosindell, who sits on Parliament’s Foreign Affairs Select Committee, said he “wholeheartedly” agreed with the idea, adding: “I would extend representation to the House of Commons. I would also support this for all Overseas Territories.”
The Sunday Telegraph, Page: 9
Do you sell on credit?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections