Business News
17th October 2019.
James Salmon, Operations Director.
INDUSTRY
Accountancy firms ‘win on the training battlefield’
Jonathan Ames in the Times says accountants have beaten lawyers “on the training battlefield,” pointing to the graduate-training programme at the legal services branch of Deloitte’s London office as evidence that accountancy firms’ on-the-job training method has triumphed over the more academic technique preferred for lawyers. Mr Ames says Deloitte appears to be a keen “early adopter” of a reformed process that includes the solicitors’ “super exam” which requires candidates who perform a period of approved work experience to pass a two-part exam. Michael Castle, the UK managing partner at Deloitte Legal, says that one of the elements that attracted his firm to the process is that it has much in common with accountancy qualification. He adds that with the solicitors qualifying exam (SQE) the way in which future generations of solicitors will train and qualify, “it made sense for us to embrace the SQE from the start.” Mr Ames suggests that the rest of the Big Four are likely to adopt the new training regimen, noting that PwC, EY and KPMG all offer traditional solicitor-training contracts – the two-year vocational stint that runs with the legal practice course and is the regimen that the SQE will replace.
The Times, Page: 63
Accounting has a responsibility to uphold and lead on ethical issues – ACCA CEO
ACCA chief executive Helen Brand believes ethical leadership “matters now more than ever.” Writing in City AM, she reflects that for ACCA and the professional accountants who make up its global membership, the issue is “absolutely central to building trust and confidence”. Ms Brand says finance professionals “are the backbone of business, and ethics plays a crucial role in everything they do,” meaning that the accounting industry has a particular responsibility to uphold and lead on ethical issues. She notes that those working toward the ACCA Qualification “have ethics at the heart of their training” through the Ethics and Professionalism Skills Module.
City AM, Page: 17
Accountants’ lead role in sustainable business
Jimmy Greer of the ACCA says finance teams must help deliver change in corporate behaviour, offering that accountants can “build and maintain the tools” for appropriate decision-making and disclosure.
Financial Times, Page: 14
CORPORATE
40% increase in distressed firms
A report from Begbies Traynor shows that the number of British businesses in significant financial distress has risen by 40% since the Brexit vote – with those in the property, construction, retail and the travel sectors the hardest hit. It found that 489,000 companies are in significant distress – up by 22,000 on this time last year. Begbies Traynor partner Julie Palmer said: “Businesses have their hands tied by not knowing what the state of play will be post-Brexit.” “Three years on from the referendum and the latest Red Flag research highlights just how businesses are struggling as a result of uncertainty and a lack of investment,” she added.
The Times, Page: 50 Daily Mirror, Page: 55 The I, Page: 38
McCloud-linked firms collapse
Companies linked to Grand Designs presenter Kevin McCloud have collapsed after hitting financial problems. KPMG has been appointed to liquidate HAB Land and HAB Land Finance, in which Mr McCloud was part-owner when they were set up and director until resigning in February, while BAH Restructuring, in which he held shares, has also gone bust.
The Daily Telegraph, Page: 13 The Guardian, Page: 43 The Times, Page: 43
Jessops could seek CVA
JR Prop Limited, the leasehold property manager of camera retailer Jessops, has filed a notice of intent to appoint ReSolve as administrators. Dragons’ Den star Peter Jones, who rescued Jessops six years ago, is understood to want a deal with creditors to shut unprofitable sites and cut rents.
The Times, Page: 43 The Daily Telegraph, Business, Page: 5 Financial Times Daily Mail. Page: 79 City AM, Page: 7
Thomas Cook liquidators secure bids for airport slots
Thomas Cook’s liquidators have secured bids from several large carriers after launching an auction of dozens of UK airport slots, with the deadline for bids to KPMG passing yesterday. The sale has drawn interest from British Airways parent company International Airlines Group, with Easyjet, Virgin Atlantic and Wizz Air also putting in bids for the slots. The auction has to be completed by the middle of November for legal reasons, giving a four-week period between initial bids and final sales.
City AM, Page: 11 Financial Times, Page: 23
PROPERTY
House prices edge up
Property values in Britain increased 1.3% in the year to August 2019, Office for National Statistics data shows, despite the continued uncertainty surround the UK’s departure from the European Union. The average UK house price was £235,000, up £3,000 on a year earlier. London saw prices slide 1.4% annually, closely followed by the South East where they fell 0.6%, although the areas remain the most expensive in the country to purchase a property, at an average of £473,000 and £326,000 respectively. Growth was strongest in Wales, increasing 4.5% to an average of £168,000; in Scotland sale prices grew 1.6% to £155,000, in Northern Ireland they were up by 3.5% to £137,000, and values rose 1.1% in England, to £168,000. Howard Archer, of the EY Item Club, commented: “Should UK leave the EU with a deal on October 31 – or early next year – we believe reduced uncertainty could see house prices rise by around 2% in 2020.”
The Daily Telegraph, Business, Page: 5 Daily Mail City AM
TAX
High street faces business rates headache
Business groups have called on Sajid Javid to scrap an increase in business rates in the Autumn budget after it emerged that they will rise by 1.7% in April. The rise will mean that retailers face a £137m increase in their combined business rates next year. Pubs would shoulder a £12.8m hike, while restaurants and hotels would face increases of £9.7m and £4.4m respectively, according to real estate firm Altus.
The Independent, Page: 56 Daily Mail, Page: 81
HMRC in scam warning
HMRC has warned of a scam that sees victims receive letters claiming there has been an underpayment of “tax” in relation to their salary, with the letter prompting them to call a number and pay up to £150 over the phone to rectify the shortfall. HMRC says it would not refer to this as “tax”, as it would be either PAYE or National Insurance – adding that it does not issue such letters.
Daily Express, Page: 14
FIRMS
Auditors must keep up with tech
Peter Ranscombe in the Scotsman looks at cryptocurrencies, noting that PwC launched software for auditing such technology earlier this year. PwC’s global assurance leader, James Chalmers, comments: “It is important as companies continue to digitise that we, as auditors, keep up with technology changes in the market, continue to develop audit tools that meet the needs of emerging technologies and serve the changing and developing demands of our stakeholders.”
The Scotsman, Talking Money, Page: 16
ECONOMY
Inflation remains at lowest level for three years
Data from the Office for National Statistics shows that the consumer prices index (CPI) held steady at 1.7% in September. This comes despite analysts predicting a modest rise in the inflation rate. The figures mean families are better off because pay packets are growing much faster than prices, with average wages up by 3.8% in the 12 months to August. With next year’s business rate increase based on September’s CPI, accountants say the latest inflation reading means a rise in business rate costs worth a total £536m.
The Guardian, Page: 43 The Daily Telegraph, Business, Page: 5
Think-tank: Economy £69bn smaller due to Brexit turmoil
The Centre for European Reform (CER) says Brexit uncertainty and disruption has left the economy £69bn smaller than it would have been, saying the vote to leave the EU means the economy is 2.9% down on the level it would have been otherwise. John Springford, deputy director of the CER, comments: “We have seen a substantial loss of output as a result of slower growth, and the hit to investment is storing up trouble for the future.” The think-tank’s Cost of Brexit report says new investment spending by businesses on capital goods, buildings, software and other assets has been the “biggest victim”, saying it has climbed just 2% when it would have otherwise risen by 10%. The report also suggests that devaluation of the pound since the Brexit vote “has yet to translate to the big gains in exports some Brexiteers hoped for”.
Evening Standard
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