March 2010
Accountant expecting 'outcry' over football tax exemption
People in senior banking jobs may be very interested to hear about a "wave of demands" from international sports stars looking for exemption from the 50 per cent tax rate.
The Financial Times is reporting on a Budget resolution that would mean football players taking part in 2011 UEFA Champions League, at Wembley Stadium, would be exempt from taxes on prize money, which would be in tens of millions of pounds.
Ronnie Ludwig of accountants Saffery Champness appreciated that the UK is looking to protect its right to the event but warned that the provision could provoke an "outcry".
He added: "Why should footballers appearing in the Champions League final be exempted from UK taxes while tennis players at Wimbledon or golfers at the British Open are not?"
A successful challenge may leave the Treasury answering uncomfortable questions on why sports stars may be exempt and not other professionals such as senior bankers.
Last year, in a tone eerily similar to warnings of a banking jobs exodus from London headhunters recently, former Liverpool footballer Xabi Alonso warned the increase in tax on top earners could drive footballers to other countries.
He moved back to Spain to ply his trade last summer.
Updated: 26 March 2010.
Categories: banking-and-financial-services, market-and-industry-news.
Finance and accounting expert claims cap gains relief unexpected
One of Britain's leading accounting advisory groups has said with another Budget statement likely later in the year, many of Alistair Darling's proposals might not become law.
London-based finance and accounting advisor Vantis responded to the Chancellor's speech by suggesting that "not much" was done on major tax changes.
However, Chris Maddock, tax director of Vantis Group, did say that he was surprised at the doubling of entrepreneur's relief on capital gains tax as many fully expected a freeze or increase on the previous 10 per cent rate rather than the reductions of the first £2 million in gains for those who qualify.
He added: "Freezing of Inheritance Tax thresholds, personal allowances and Income Tax bands will provide inflationary tax increases without the need to change the rate itself."
Mr Maddock did remark that suggestions that this was not a 'real' budget may be "well founded" and the company said it expected "another summary in the not too distant future".
Updated: 26 March 2010.
Categories: finance-and-accounting, market-and-industry-news.
Finance and accounting figures welcome entrepreneur relief
Leading finance and accounting figures have welcomed Treasury proposals to help entrepreneurs and small to medium-sized entities (SMEs) to grow their business.
On Wednesday, Chancellor Alistair Darling announced a raft of plans such as new business loans totalling £94 billion and a doubling of investment allowance on plant and machinery to £100,000 for entrepreneurs.
There are also reductions in business rates and these measures for SMEs were welcomed by many top finance and accounting figures.
Julian Dobbin, a tax partner at chartered accountants Mercer & Hole, told Accountancy Age that not only will boost business clients but financial advisers too.
He added: "There was a worry that the Chancellor would do something that stalled deals - now there's further incentive for them. It will drive deals going forward."
Furthermore, Vantis head of private client tax Chris Maddock told the magazine a number of advisers might be "kicking themselves" if they recommended to clients that they should sell their business, expecting a tough budget on capital gains tax.
Updated: 26 March 2010.
Categories: finance-and-accounting, market-and-industry-news.
Green investment banking operations 'should go further'
People in banking jobs are taking stock of the government's move to launch the Green Investment Bank.
Chancellor Alistair Darling announced the scheme which will provide around £2 billion in equity for low-carbon transport and energy schemes in the UK.
However, the Guardian reported that finance and accounting giant KPMG believes that £2 billion falls a long way short in terms of the estimated £400 billion required for future infrastructure.
However, KPMG's head of global infrastructure Andy Chism remarked that it is a good idea that a single government body was directing affairs, especially with commercial markets uncomfortable with such high risk.
Writing in the Evening Standard, Anthony Hilton said the new bank could encourage private investors into low-energy schemes if it succeeds in expanding the UK market.
Mr Hilton also shared Mr Chism's notion that if the risk is shared, it is easier to development schemes such as road improvements nationwide rather than if it was lumped on to a single private backer.
Updated: 25 March 2010.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
Bank follows big names into real estate - banking jobs
People in banking jobs are discovering that European firm Commerzbank is to merge its real estate funds as it looks to expand worldwide growth.
It is the latest in a string of big name investment management operations to make a concerted move into large scale real estate after Morgan Stanley and Invesco altered their structures.
As a result of the Commerz Real's two open-ended real estate fund merging, it has created Europe's largest fund at €12.5 billion (£11.3 billion).
Erich Seeger, a member of the board of Commerz Real and head of fund sales, suggested that the larger fund, with its wider diversification, could the lower the "ramifications of temporary market events" for investors and give them the "best of two worlds".
He said: "We will combine the stability of a comprehensively diversified real estate portfolio marked by a European focus with an expanded opportunity potential that arises from the addition of a global component."
Commerzbank, which built a strong reputation in Germany as a private and corporate bank, also has operations in the City of London.
Updated: 25 March 2010.
Categories: banking-and-financial-services, market-and-industry-news.
IoD lukewarm on Budget - banking operations
People in banking jobs are learning that the Institute of Directors (IoD) gave a lukewarm response to government proposals to tackle the UK's deficit.
In a statement, the IoD was positive about moves to assist small businesses with loans but repeated its call to reverse the increases in the top-rate of income tax and national insurance contributions.
Chancellor Alistair Darling pledged to do more for small business and offered a number of incentives to help generate growth in his final budget for the general election.
Among the announcements was two of the UK's biggest banking operations, Lloyds and RBS, making available £94 billion in new business loans, of which around half will go to small and medium entities.
While Miles Templeman, IoD director general, welcomed those "positive initiatives", he derided the Treasury's inability to cut spending and reduce the deficit sooner.
He added: "This means making significant spending cuts in 2010 rather than delaying commencement until 2011. The argument that early cuts would jeopardise the recovery is mistaken."
With top-rate increases there were warnings of an exodus from London finance jobs. However, David Prosser said recently that it was more akin to a "trickle".
Updated: 25 March 2010.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.
HSBC hires Herbert as global head of real estate - banking jobs
People in London banking jobs are taking note of John Herbert's move to HSBC.
Mr Herbert has assumed the role as global head of real estate with the bank after leaving Italian-based €600 million (£535 million) opportunity fund Advanced Capital, for which he was a senior adviser.
He has worked in London in 2000 when he joined Citigroup as head of its Europe, Middle East and Africa Property and Hotel Group where he helped expand its European investments. Mr Herbert occupied a similar role at investment bank Merill Lynch.
Before moving to working London banking operations, he sat on the investment committee of Blackrock's property and distressed debt fund between 1994 and 1996.
HSBC hoped its new real estate expert would "help drive the creation of a coherent, international real estate strategy."
It marks the latest in a significant shift amongst leading investment banks, including Invesco and Morgan Stanley, as analysts suggest that valuations of real estate will be attractive to large corporate investors.
Updated: 25 March 2010.
Categories: banking-and-financial-services, london, market-and-industry-news.
Leading banking operations to offer £94bn in new business loans
People in banking jobs are learning that RBS and Lloyds will give out £94 billion in new business loans, the Chancellor announced today (March 24th).
In his final budget speech before the general election, Alistair Darling promised that around half of those new business loans would be offered to small and medium-sized entities.
Both RBS and Lloyds Banking Group still have state-owned stakes, although the Financial Services Authority is looking to hire a new figure with the aim of selling those shares.
Mr Darling also revealed that a bonus tax on people in banking jobs had raised £2 billion in revenue for the Treasury during the past year.
The Chancellor also backed calls for a global tax on bank transactions which also has the support of Germany and pledged that more than one million people in the UK who do not have accounts should be given access to basic banking operations.
However, he did downgrade economic forecasts for 2011 to 3-3.5 per cent growth, although predicted growth this year of 1-1.25 per cent is in line with economic forecasts.
Updated: 25 March 2010.
Categories: banking-and-financial-services, market-and-industry-news.
Top accountant becomes FA chief executive
People in accounting jobs are learning that the Football Association has appointed its former financial director Ian Horne as its chief executive.
Mr Horne, who won Accoutnancy Age's man of the year in 2007, has been heavily involved in football finance for a long time at the FA's Soho Square headquarters.
He helped to turn around the fortunes of two major projects during the last decade - the National Football Centre in Derbyshire and the £757 million rebuilding of Wembley Stadium. Before that he trained with Coopers & Lybrand and specialised in recovery.
Such was the state of finances at the FA that Mr Horne told Accountancy Age in 2004 that the organisation could not forecast cash properly, this despite large sponsorship and television rights contracts generating unparalleled revenue.
In a statement, the FA announced Mr Horne as a replacement for Ian Whatmore, himself a high-flyer in finance and accounting having worked for Andersen Consulting.
Updated: 24 March 2010.
Categories: finance-and-accounting, market-and-industry-news.
Senior Olympic accountant says finances are on track
People in accounting jobs are learning that Olympic finances are stable and the games chief financial officer is confident in bringing it in within budget.
London Organising Committee of the Olympic Games (LOCOG) has been criticised for not substantiating its plans for delivery of the 2012 Games and how much it will cost, Accountancy Age is reporting.
Much has been made about the budget for the event and whether it can be achieved without overspending.
However Neil Wood, LOCOG's chief financial officer, said the committee would not go over the £2 billion "funding envelope" and that figure has always been one which targets have been set to.
He added: "We've done budgeting rounds every year since 2006 - we completed version four last summer and will start version five this October. Each one of them has arrived at the £2 billion revenue versus £2 billion expenditure equation."
Mr Woods also said that accounting jobs in some cases would be filled by "secondees", which is despite the HR director of London 2012 saying that sourcing accountants would be problematic.
In total, the committee employs 600 staff but expects that number to reach 3,000 before the flame is lit.
Updated: 24 March 2010.
Categories: finance-and-accounting, market-and-industry-news.
Leading investment management firm raises funds for real estate operations
The investment management operation of one of the world's biggest banks has raised hundreds of millions of pounds to focus on interests such as real estate.
Morgan Stanley's Investment Management arm Alternative Investment Partner's (AIP) has generated $370 million (£248 million) to invest in "secondary interests" including acquiring real estate.
It is now looking for fund managers as it seeks a swift move into what it believes is a market of great opportunity.
The company, which splits its business between London and New York, sees an opportunity to acquire real estate and an "attractive" price in the current market which will only benefit its investment management operations.
Joseph Stecher, chief investment officer of its AIP Real Estate, said the company is looking for new managers that fit Morgan Stanley's "best-in-class" mantra and help generate profits in real estate.
He said the new venture needed to avoid common early delays such as start up costs in order to "accelerate investment".
Updated: 23 March 2010.
Categories: banking-and-financial-services, market-and-industry-news.
Finance and accounting to be made simpler with electronic P60s
People in accounting jobs may find dealing with tax far simpler with the introduction of electronic P60 certificates.
Amendments to PAYE legislation mean that paper tax certificates no longer need to be printed and, according to Accountancy Age, making duplicates will become easier.
HMRC was praised by the Institute of Payroll Professionals (IPP) for introducing the electronic certification.
In a statement, it hailed the move as a "fantastic example" of showing the government wanted to work with employers to reduce the burden on payroll staff from employees requesting paper P60s.
The institute's associate director of policy, research and strategic visibility Karen Thomson believes it is "only appropriate" that businesses are allowed to switch to electronic P60s, given that many firms already issue ePayslips to staff.
However Ms Thomson said that employers needed to reach an agreement with staff and ensure that workers could access both payslips and tax certificates online.
People in accounting jobs will begin using the new version during the next fiscal year starting April 1st.
Updated: 22 March 2010.
Categories: finance-and-accounting, market-and-industry-news.
Recruitment sector moving in right direction - permanent placement
People seeking permanent placement are learning that recruitment in the UK has risen by six per cent in the last five months, according to new figures.
The research by employment analyst Powerchex also revealed recruitment activity for the final quarter of 2009 was seven per cent higher than the third quarter.
Further good news came in the first two months of 2010 with an 11 per cent rise during January and a six per cent rise during last month.
However, the company's director Alexandra Kelly told Recruiter job offers in 2009 were down by more than a third on the previous year and jobseekers may, in their desperation to land permanent placement, embellish on their application and CV.
She said: "It is completely understandable for many people to feel frustrated with the lack of job opportunities over the past 12 months or so, especially those who have been out of work for a while."
The positive surge in the recruitment sector has coincided with leading finance and accounting firms, as well as other companies in different sectors, broadening their recruiting processes and in a number of cases reporting strong graduate recruiting seasons.
For example, people in accounting jobs learned that KPMG expected a healthy September intake
Updated: 22 March 2010.
Categories: finance-and-accounting, market-and-industry-news, permanent-placement.
