The Facebook application is seen on a phone screen August 3, 2017. REUTERS/Thomas White

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YORKSHIRE’s small and medium-sized enterprises are feeling optimistic as they prepare for life after Brexit, although access to funding has become a critical hurdle for many, according to a leading law firm.

Gavin Maddison, corporate partner at Ward Hadaway in Leeds, said that access to funding to help small and medium sized enterprises (SMEs) grow is more important than ever – nearly a year after Article 50 was triggered.

His comments come as the build-up continues to the Yorkshire Fastest 50, the annual run-down of the fastest-growing privately owned companies in Yorkshire which Ward Hadaway sponsors and organises in association with The Yorkshire Post.

According to the Federation of Small Businesses, the European Investment Fund has provided almost £500m per year to support British SMEs.

Many Yorkshire businesses could lose access to this funding.

Mr Maddison said they need to act now to look at alternative sources to sustain further growth.

He said: “Optimism and entrepreneurial spirit go a long way for SMEs, but access to investment and funding will be a critical hurdle for many in 2018.

“Business owners need to assess how dependent they are on EU funds or loans and gauge the impact on their business.

“Having spoken to business leaders across Yorkshire, there is a general sense of acceptance that Brexit is happening, but the focus now is on building their businesses and dealing with the consequences of it as they arise.”

Mr Maddison added that anticipating the potential impact of Brexit would give small businesses the time to consider additional funding sources.

It would also give them a clearer picture of what Brexit will mean for future financing.

He added: “Companies looking to expand, whether they want to access new markets, increase production capacity or acquire competitors, invariably need to look for external finance to help them realise their ambitions.

“While mainstream banks continue to be the key players in terms of the overall volume of small business lending, there are a range of different routes to secure additional capital, and the amount of finance sourced by SMEs from the alternative finance market has increased in recent years.

“City councils and organisations offer loans and grants to support businesses through schemes such as the Regional Growth Fund. There are also other funding options available to help accelerate growth for the region’s smaller businesses.

“For example, at Ward Hadaway, we have been involved in advising companies on investments involving the Northern Powerhouse Investment Fund and Business Growth Fund in the SME sector.

“Private equity is also a realistic option for companies such as those found in the Yorkshire Fastest 50, as are stock market flotations.”

Mark Smith, a banking and finance partner at Ward Hadaway in Leeds, said the banks will continue to play a key role as the UK looks to redefine how small businesses are provided with the resources they need to grow.

He said: “Business data is driving the decision-making process and information from Companies House and business credit rating agencies such as Experian is being used to set loan terms, so it’s worth remembering that poor scores can affect funding applications and limit entrepreneurial growth.”

There has also been an increase in peer-to-peer and angel funding.

The Yorkshire Fastest 50 2018 takes place at Aspire in Leeds on Friday, March 16 with guest speaker Sir Keir Starmer, the Shadow Secretary of State for Exiting the European Union.

The event, which has been running in Yorkshire since 2011, celebrates the fast growing firms that are bringing jobs and investment to the region.

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Digital players such as Google, Facebook and mobile application services providers must pay taxes in India on income generated from Indian consumers even if the companies’ infrastructure is physically located abroad.

According to a new proposal in the Finance Bill, entities involved in digital transactions shall be considered to have significant economic presence in India, whether or not the entity has a residence or place of business in India. The government has, however, not defined what constitutes “significant economic presence” and whether it will differentiate between a Silicon Valley company earning $100 from Indian users and one earning billions.

According to Shashishekhar Chaugule, Partner at Walker Chandiok & Co LLP, the rule would also impact entities which do not have a physical presence in India but sell goods or services using the digital mode. There many instances of developers of applications, which are downloaded by Indians, residing abroad. They will now be liable to pay tax in India if they are deemed to have significant economic presence.

The rule will also impact companies such as Google, which have some physical presence in India but have their core infrastructure such as servers located abroad. Recently, the Income-Tax Appellate Tribunal ruled that payments made by Google India Private Ltd to Google Ireland Ltd for purchase of ad space on Google’s AdWords programme would be considered royalties.

The Tribunal held that since royalty payments were subject to tax in India, Google India should have withheld tax on the same. Google India had held that these amounts would be considered business income in Google Ireland’s hands.

The new explanation allows the Centre to tax transactions in respect of any goods, services or property carried out by a non-resident in India, including provision of download of data or software in India and continuous soliciting of business activities or engaging in interaction with such number of users as may be prescribed, in India, through digital means.

“It is further proposed to provide that the transactions or activities shall constitute significant economic presence in India, whether or not the non-resident has a residence or place of business in India or renders services in India,” the Finance Bill states. These amendments will take effect from April 1, 2019 and will apply to assessment year 2019-20 and subsequent years.

“While the new explanation could generate more tax litigation, it is in line with the Base Erosion and Profit Shifting (BEPS) treaty, which targets companies that exploit gaps in tax rules of different countries to shift profits to low- or no-tax locations,” said Riaz Thigna, Director at Grant Thornton.

India is a signatory to BEPS, under which a company that has its base in any BEPS signatory country will have to pay taxes in India if it has significant economic activities in India. The latest proposal implies that companies that do not have a base in a BEPS signatory country will also be liable to tax in India because of a defined law in India.

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NEW YORK, Feb. 5, 2018 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Wells Fargo & Company (“Wells Fargo” or the “Company”) 
                                    WFC, -9.22%
                                         (cusip:949746101). Investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether Wells Fargo and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

[Click here to join a class action]
On February 2, 2018, citing “recent and widespread consumer abuses and other compliance breakdowns by Wells Fargo,” the U.S. Federal Reserve announced “that it would restrict the growth of the firm until it sufficiently improves its governance and controls.” The Federal Reserve also announced that “Wells Fargo will replace three current board members by April and a fourth board member by the end of the year.”  Following this announcement, Wells Fargo’s share price fell roughly 6% in after-hours trading on February 2, 2018, and has fallen sharply during intraday trading on February 5, 2018. 

The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

        CONTACT:Robert S. Willoughby  
Pomerantz LLP  
rswilloughby@pomlaw.com

         View original content:http://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-wells-fargo–company–wfc-300593559.html
SOURCE  Pomerantz LLP

Copyright (C) 2018 PR Newswire. All rights reserved



                                        From MarketWatch


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Ten years after the financial crisis, the resulting push for global regulatory harmony is giving way to divergent stances on the need for compliance, as long-awaited major reforms take effect in the EU, while in the U.S. the Trump Administration rolls out its deregulatory agenda set a year ago. Compliance officers and regulatory professionals everywhere are bracing to address these changes, and keep up with the unbridled development of digital technology as it affects their operations, according to Thomson Reuters eighth annual Special Report on the State of Regulatory Reform.

The EU’s Markets in Financial Instruments Directive II (MiFID II) January 3 effective date is raising questions even as it seeks to resolve non-compliance issues, with a last-minute mini-flurry of waivers, extensions and consultations announced to offset many looming pressure points. Indeed, those expecting the European Securities and Markets Authority (ESMA) to use its product-banning powers straight out of the gate must await the outcome of yet another regulatory pronouncement in three key areas: investor protection contracts; a six-month “breathing space” granted for issuers and traders who had failed to get a Legal Entity Identifier on MiFID II-affected transactions and the predicted evaporation of research coverage on smaller companies as new rules on research become effective.

In the U.S., President Trump’s early vow to “dismantle” financial regulations hindering the economy has since been translated into a blueprint for action, promising more relaxed banking regulations and eased oversight of capital standards, both among smaller banks and insurers. While U.S. enforcement agencies have created units and bolstered technological capability to be tough on financial crime, money laundering and investor protection, they are offering forbearance when companies make efforts to cooperate. In sum, the real change appears to be coming through the executive branch, which is wielding its bureaucratic tools to carry out its agenda within existing law.

“In 2018, compliance officers are putting the theories of regulatory change into reality. The Markets in Financial Instruments Directive II is now in effect and the General Data Protection Regulation is looming. These are significant challenges both in Europe and well beyond its borders,” said Alexander Robson, editor in chief, Thomson Reuters Regulatory Intelligence in London. “Political shifts are also driving regulatory change. Beyond an agreed financial settlement, the UK and EU have yet to reach terms for their planned divorce and how that will affect the provision of financial services. After Britain exits, passporting likely will be history and any structure for recognizing regulatory equivalence, whilst logical, is some way from being decided between both parties.

“In the U.S., President Trump is working to reshape the post-crisis regulatory landscape put in place by the Dodd Frank Act, even as Congress is gridlocked. His financial agencies are implementing the president’s deregulatory agenda with an ambitious strategy that includes pressuring budgets, halting rules in the pipeline, revised enforcement policies and other bureaucratic tools.

“As if that wasn’t enough, fintech is developing at a speed that demands attention, while regulators also have to contend with the spread of cryptocurrencies and their associated risks.”

The potential consequences of other regulatory reforms in Europe identified by the report include financial firms having to grapple with the General Data Protection Regulation (GDPR) from May 26 this year. Cited as an even bigger compliance challenge than MiFID II by some politicians, GDPR is arguably the biggest overhaul of data protection rules in two decades. Thomson Reuters forecasts that the penalties for non-compliance will likely be severe.

The report looks at each of the world’s financial regions in turn, summarizing the key regulatory changes underway and offering insights into the regulatory events that may shape the year ahead. In the Asia-Pacific section, it highlights the shifting enforcement landscape, exemplified by the tougher stance taken by the Australian Transactions Reports and Analysis Centre’s new chief executive in guiding the financial intelligence agency through a challenging period. Regional firms and regulators are watching closely her stance in resolving the Commonwealth Bank of Australia money laundering / terrorism financing litigation, set to be the biggest civil enforcement action in that country’s history.

On the RegTech front, U.S. officials also have moved into the realm of digital financial services by creating a charter process for online banks, while in the UK, regulatory “sandboxes” are serving to encourage the industry’s use of digital services and bring them under the supervisory umbrella.

More insights and information from the State of Regulatory Reform Special Report 2018 can be accessed at https://risk.thomsonreuters.com/en/resources/special-report/state-of-regulatory-reform-2018-special-report.html

A Thomson Reuters Regulatory Intelligence interview between Special Report co-editor Randall Mikkelsen and Regulatory Intelligence & E-Learning expert Julie DiMauro is viewable at: https://youtu.be/HxjYQBIcuYs.

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Changes in the Finance Bill will let the government prosecute companies that don’t file tax returns, said CBDT chairman Sushil Chandra. Photo: PTI

The income-tax department will get wider powers to proceed against shell companies and errant non-governmental organizations (NGOs) once the proposals in the Union budget are approved by Parliament.

The department will then be able to prosecute companies that have not filed their tax returns and monitor all financial transactions conducted by NGOs as they have to mandatorily report their permanent account numbers (PANs).

The tax department will also be able to disallow profit-linked deductions, such as those available to infrastructure firms, in case of a delay in filing of returns.

These measures will expand the taxpayer base and act as a deterrent for tax evaders, Sushil Chandra, chairman of Central Board of Direct Taxes, said in an interview.

In the Finance Bill, 2018, the government has sought to remove a clause that allowed prosecution against companies only if there was a tax payable of more than Rs3,000. This meant that the tax department could not take any action against shell companies that did not file tax returns, since there was no tax payable. Out of the 1.5 million companies registered with the ministry of corporate affairs, only 730,000 filed their tax returns in assessment year 2016-17.

“Every company which is incorporated has to file a return. It is a statutory requirement whether there is profit, loss or no income. But we could not file prosecution since in some cases there was no tax payable. It is possible that the source of investment is not declared income or there is benami property,” Chandra said. “It is an anti-abuse provision. Many shell companies never filed returns. If we get returns, it is easier to track money laundering.”

According to the Registrar of Companies (RoC), 297,000 companies were identified as non-filers (those that did not file annual reports and financial statements with the RoC) in 2017-18 for two or more years and were prima facie not engaged in a business or operation. Of these firms, 226,000 firms were removed from the records as on December 2017, minister of state for law and justice and corporate affairs P.P. Chaudhary informed the Lok Sabha on 5 January.

Amit Singhania, a partner at law firm Shardul Amarchand Mangaldas and Co., said the Finance Bill has made special emphasis on tax compliance and has made non-filing of tax return a criminal offence even if no tax is payable.

Prior to the change, the department had to rely on its own sources of information such as transactions above a threshold that are reported by other entities, he said.

The budget also sought to make quoting of PAN mandatory for non-individual entities if financial transactions aggregate to more than Rs2.5 lakh a year as the tax department looks to intensify scrutiny on NGOs. It also proposed that all those acting on behalf of such entities, like managing directors, directors, partners and trustees, also have to submit their PANs.

“Many non-governmental organizations have not taken PAN. Their directors have also not taken PAN. We do not know who are running these NGOs. We want to know what are the activities of the entity, who are giving money and who are the beneficiaries. We want to track the entire ecosystem, including foreign funding,” Chandra said.

The budget also sought to tighten rules for firms that claim various profit-linked deductions like those available to infrastructure firms and those operating in special economic zones but do not file their tax returns on time.

“We are saying that they have to file within the prescribed time of the Income Tax Act or you will not get deductions. Some file tax returns very late. We are trying to reduce the time taken for completion of assessment from March to December to September. When we are reducing the time taken for assessment, we want that returns are filed on time and we can start the assessment process,” Chandra said, adding this provision will not be applicable to individuals claiming benefit of deduction on select investments, health insurance premium and healthcare costs.

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Cental board of direct taxes (CBDT) chairman Sushil Chandra. Photo: PTI

New Delhi: India will renegotiate tax treaties with countries having companies with significant economic presence in India in its effort to tax the digital economy but will restrict the scope to cover only large entities, said Sushil Chandra, chairman of central board of direct taxes (CBDT). In an interview, Chandra said proposals in budget FY19 seek to add more taxpayers, make taxation more equitable and fair, reduce arbitrage among asset classes and boost manufacturing. He also explains why taxing long-term capital gains from sale of listed shares is essential for a fair tax policy and how the tax department is cracking down on crypto currencies. Edited excerpts:

Finance bill 2018 has introduced the concept of significant economic presence to tax offshore firms offering digital services to Indian customers. What will be threshold based on which the provisions will come into effect?

Earlier, taxability of offshore firms was linked to their physical presence under the concept of permanent establishment (PE) (which is articulated in tax treaties). In this budget, we have said significant economic presence will also constitute a PE. But that is only an enabling provision. On this basis of this provision in domestic law, we can negotiate tax treaties with other countries.

We are not looking to tax minor economic activity. Most of the big companies have significant user base and India, with its large population, contributes to the revenues of the big global digital companies. And we want that they should be taxed. We will decide on how much economic presence—depending on the number of users, depending on the amounts involved. We will discuss with stakeholders and issue a notification before renegotiating treaties. We will look at renegotiating treaties with all countries with companies enjoying a significant economic presence in India. Till that time, provisions of double tax avoidance treaties will continue.

What is the progress on the investigation on bitcoin exchanges and investors in crypto currencies?

We conducted surveys on all the major bitcoin exchanges. We have obtained the list of persons who are frequently trading on these exchanges. There are around 3-4 lakh such people. We have given notices depending on the amounts involved.

We are looking at two things—whether the source of funds for the investments can be explained and whether capital gains tax is being paid on the gains made from trade in such crypto currencies. We have found that in quite a large number of cases, even the investment is not absolutely explained let alone the capital gains. So we will tax the undeclared income and the capital gains.

Who are the biggest gainers from budget FY19?

The biggest gainers are companies with turnover up to Rs250 crore, the tax rate on which have been reduced from 30% to 25% and senior citizens, who have been granted higher deduction on health insurance premium of up to Rs50,000 (from earlier Rs30,000) and higher deduction of up to Rs1 lakh for medical treatment for critical ailments (up from Rs80,000 for very senior citizens and Rs60,000 for senior citizens). Salaried persons and pensioners got a big relief by way of standard deduction of Rs40,000.

Footwear and leather industry, too, have benefited from the deduction of emoluments paid to new employees, a benefit already available to the apparel industry. This will boost employment generation.

What are the some of the important changes that have been introduced in the finance bill?

We have brought in amendments to ensure we can file prosecution against companies who do not file their tax returns. We have also said that profit-linked deductions will not be available to those entities who do not file their tax returns on time. We have also made permanent account number (PAN) mandatory for non-individuals for transactions aggregating to more than Rs2.5 lakh a year. We have also introduced changes in law to make sure charitable or religious trusts or institutions deduct tax at source while making payments above a threshold.

We have also made a change in the way capital gains are computed for the transfer of an immovable property. Earlier, we considered only the circle rate. We have said this time that even if the consideration is less than the circle rate by up to 5%, we will not make any adjustment.

No second thoughts on the proposed long-term capital gains tax on equities?

No question. We want the tax system to be fair and equitable among classes of taxpayers and among classes of assets. Long-term gain from property is already taxed at 20%. While hard working salaried persons get taxed at 5-30%, long-term capital gain from equities of Rs3.57 trillion was not taxable last year. This calls for taxation. Besides, the tax exemption had led to abusive practices, which needed to be addressed. The proposed 10% tax on long-term capital gain on equities is applicable only if the gain is above Rs1 lakh. Also, the gains made on investments up to 31 January are not taxable.

What is the policy direction on personal income tax rate and the slabs that we can expect from the direct taxes code?

We have already halved the rate on Rs2.5-5 lakh slab to 5%, the lowest anywhere in the world. So we decided to give a standard deduction, which will benefit all, rather than raising the basic exemption threshold to Rs2.9 lakh. This is a relief for the salaried class, who pay an average tax of Rs76,000 a year. A committee is looking into the new tax code.

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Five businesses have been removed from takeaway food app Just Eat after an investigation found they were not registered for food hygiene ratings.

One of the firms was supposedly based at the site of a car wash in Basildon, Essex, BBC Inside Out East found.

The website and app takes orders on behalf of more than 28,000 food outlets in the UK and has 10 million customers.

Just Eat said it required firms to have food hygiene ratings and was making them easier to access on its products.

When the BBC visited the address in Basildon, there was no evidence it had been used for anything other than a car wash for at least two years.

Another takeaway not registered for hygiene checks, which has since ceased trading, was found in Braintree, Essex.

Three other unnamed firms operating from Norwich, Stevenage and Welwyn Garden City were also removed from Just Eat.

Restaurants and takeaways must register with local councils to receive a food hygiene rating.

The details emerged after BBC Inside Out East contacted councils throughout the East of England using the Freedom of Information Act.

The Chartered Institute of Environmental Health (CIEH) said some restaurants did not register with councils in order to avoid a visit from food hygiene inspectors.

Tony Lewis, from CIEH, said: “[Customers] should be seeing the food hygiene rating, it should be recorded on that app and it should be kept up to date.”

Just Eat said it checked that food businesses it promoted were registered with local councils.

“We take food safety extremely seriously and actively work to raise standards across the takeaway sector,” said a Just Eat spokeswoman.

“Any restaurant wishing to partner with us must be Food Standards Agency-registered with the relevant local authority, and provide evidence of this, before we put them on our platform. Local authorities are then responsible for carrying out inspections to check businesses meet the requirements of food hygiene law.

“We positively incentivise food safety and make numerous resources available to our restaurant partners to support and improve standards in this area.”

For more on this story, watch BBC Inside Out East on BBC One from 19:30 GMT on 5 February.

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By

Laura Shannon, Financial Mail on Sunday

Published:
17:01 EST, 3 February 2018

|
Updated:
17:11 EST, 3 February 2018

Britain’s financial firms are routinely letting down vulnerable customers hit by serious illness and ensuing money problems. The offenders – an unholy alliance of banks, building societies, investment managers and insurers – are guilty of abandoning tens of thousands of their customers each year. These individuals and their families are desperate for leeway while dealing with illness – anything from cancer, a heart attack or stroke, to debilitating mental problems.

But they are being left to fend for themselves. Often, they are given no choice but to fall into mortgage arrears, putting the family home on a path to being repossessed. Credit card debts are left to swell and bank charges accumulate, with little help from lenders.

The issue is now so extreme it has prompted cancer charity Macmillan to step in and make its voice heard. It has written to the body representing Britain’s leading banks and financial services companies demanding change.

‘Grateful’: Steve Lister with wife Sue, left, and three daughters

MY WORLD WAS RIPPED APART BY CANCER DIAGNOSIS 

Claiming on an insurance policy led to crucial surgery for Steve Lister, thanks to a free benefit he initially forgot came with the plan.

Last year, the 55-year-old mechanical engineer was diagnosed with pancreatic cancer. The surgeon said he could not operate because it was too risky to remove the cancer.

But he conceded other medics might be willing to take on the challenge. Steve, who is married to Sue, 51, says: ‘My world was ripped apart at that point.’

But while claiming on an income protection policy – which replaces salary when someone is unable to work – his adviser reminded him he had access to a second medical opinion service.

This was through Square Health, a benefit afforded by his £48-a-month policy with British Friendly, which now pays Steve £1,000 a month.

Within days he was matched with a London-based specialist prepared to operate. To avoid waiting any longer he paid for the surgery privately.

He used savings, generous donations from family and friends, and contributions made via online fundraising organised by his three daughters, Colleen, 29, Stacey, 27, and Danielle, 24.

The surgery did not eliminate the cancer, but Steve says: ‘A lot of life-saving work was done as a result of being able to get a second opinion. I am extremely grateful.’

In an impassioned open letter to UK Finance, backed by more than 20,000 people, Macmillan urges immediate action. Senior cancer nurse Miranda Benney is calling for financial institutions to provide the same duty of care as she applies to her patients.

She writes: ‘It’s enough to cope with the psychological impact of the diagnosis and effects of treatment, without having to worry about money as well.’

Campaign: Miranda Benney

Macmillan is now calling for the Financial Conduct Authority to step in. It wants the City regulator to insist that financial companies are legally bound to provide a uniform duty of care to customers. If such a requirement were to be introduced, the charity argues it would give people with serious illness the confidence to seek help – without fear of financial reprisal from banks.

The charity’s research shows that just 11 per cent of people with cancer tell their bank about their diagnosis. Benney says a duty of care would ‘help relieve the pressure’.

Moira Fraser, director of policy at the charity, adds: ‘Support from financial service providers for vulnerable customers is inconsistent and hard to find. When it is available, it is often when people are already in financial difficulty – in mortgage arrears for example – and the damage has been done. A change in the law is crucial.’

The Mail on Sunday looks at what help is currently available. It is patchy with a few firms providing better support than most. But in nearly all cases leading institutions do not do enough to make people aware of the help that is available.

LONG-TERM ILLNESS

Macmillan already works with Nationwide Building Society and Lloyds Banking Group in creating specialist teams that deliver practical help to customers with cancer.

Assistance includes the cancellation of overdraft fees, payment holidays on debts such as the mortgage and penalty-free withdrawals from savings.

Nationwide’s ‘specialist support’ service – which also assists customers with life-limiting conditions such as heart disease or stroke – has helped more than 5,000 people since its launch in October 2015. Free services can form part of a protection insurance policy paying out in the event of death, injury or illness.

For example, Royal London policyholders who bought via a broker can use ‘Helping Hand’ – where a nurse offers practical advice to a policyholder or their family. British Friendly customers with health issues can draw on support from Square Health – for a second opinion from a medical professional, virtual GP consultations, physiotherapy and counselling.

Insurance giant AIG offers Best Doctors – another second opinion – to life insurance customers. Aviva too offers this to customers who bought a protection policy through a broker. Parents should also be aware that many critical illness policies – which pay out a lump sum on diagnosis of ‘dread diseases’ such as cancer, a heart attack or stroke – cover children for free.

Meanwhile, anyone claiming on an AIG life insurance policy can access vital support for grieving children or siblings via charity Winston’s Wish.

Aviva tags children’s counselling service Grief Encounter to its life insurance. Contact: Nationwide (0800 917 2393); Lloyds (0800 0150016); Halifax (0800 0282692).

Ask your insurer about any additional policy benefits. For help buying a policy, find a broker at biba.org.uk or call 0370 9501790. 

DISABILITY

Llloyds recently introduced ‘Easy Read’ bank statements. These make banking clearer for people with learning difficulties – using pictures and simpler words.

Yorkshire Building Society has fitted all its branches with ‘care kits’, including pen grips and magnifying glasses for customers with sight loss, arthritis or restricted mobility. Banks will generally provide paperwork in large text, audio or Braille for blind customers.

It is also possible to order adapted debit cards – which could feature raised dots indicating whether it is a debit or credit card, or an indentation to show which end should be slotted into a cash machine.

Appeal: Research by insurer LV= shows that half of fire and flood victims go on to experience mental health issues

Deaf customers can arrange for a British Sign Language expert to attend bank branch meetings.

Contact: Tell your bank if you need communication to be adapted to your needs. Your nearest talking cashpoint, or one accessible by wheelchair, can be found using a smartphone app from ATM network Link. It has advanced search functions and can read aloud what is shown on the mobile screen.

MENTAL HEALTH

Disasters such as fires and floods do not just destroy property. They can harm mental well-being and undermine self confidence.

A good insurance policy funds the rebuilding of a home, but homeowners are left to cope with the emotional devastation alone.

Research by insurer LV= shows that half of fire and flood victims go on to experience mental health issues. It now offers members free access to confidential counselling and puts its staff through fire and flood scenarios so they can empathise with victims.

Meanwhile, budgeting company Squirrel helps impulse shoppers hold back money to pay essential bills and save. It has launched Money Lockup to help those prone to overspending in weak moments. Its app only lets people access their money via their phone at a predetermined location.

The idea is that by choosing a location they would not travel to unless they really needed to, they will be less tempted to spend. The service is free to use. Contact: lv.com/home-insurance/fire-and-flood and moneylockup.com.

OTHER PERKS

Members of LV= with an eligible insurance product can appeal to its ‘Green Heart Foundation’ for a financial boost during a difficult life event. Find out more at lv.com/greenheartfoundation.

Pet insurance customers with Tesco Bank can use Vetfone for free advice about their animal’s health and diet.

It’s a 24/7 helpline provided by nurses qualified with the Royal College of Veterinary Surgeons.

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(c) 2018, Bloomberg.

The federal tax overhaul put in place by Republicans has produced an unusual show of bipartisanship now that tax season is here: We are a nation united in befuddlement.

One bit of confusion to dispel quickly: The changes don’t affect taxpayers for the 2017 filing season, which officially begins Monday when the Internal Revenue Service accepts its first returns. That’s news to about 41 percent of the 2,000 Americans recently surveyed by tax prep chain Jackson Hewitt-they thought the tax law President Donald Trump signed on Dec. 22 would affect their filings this season (among millennials, it was 50 percent).

It should come as no surprise then that tax preparers and financial advisers are girding for a barrage of questions from clients about what they should do right now. As these experts scramble to educate themselves, the opaque nature of the new law and its unanswered questions (it was rushed through Congress so fast some changes were scribbled on the margins) have even left them confused.

“I attended my second tax update for CPAs today where the instructor completely contradicted what we heard last week at a similar session,” said Evan Beach of Campbell Wealth Management in Alexandria, Virginia.

Nevertheless, there is some consensus as to what you can do now. Below are some early thoughts from wealth managers on strategies taxpayers can start thinking about to avoid unpleasant surprises a year from now.

1. Preview your 2018 taxes: Advisers suggest having an accountant run mock 2018 returns after this year’s forms are finished. TurboTax’s TaxCaster tool was just updated to be able to forecast a 2018 tax refund based on the new law. Users enter their basic 2017 tax information, and it will spit out a 2017 estimated refund and a forecast for 2018 side by side, according to the company.

H&R Block said its preparers will get a “pretty detailed” tool in the first week of February to allow them to go over a finished 2017 return, line by line, and preview the new tax law’s impact on next year’s return. TaxAct expects its calculator to be updated by mid-February such that it can preview next year’s taxes.

Running those future numbers can flag potential issues. That said, state revenue departments and the Internal Revenue Service have had little time to process the changes, so much remains in flux. “The IRS and states haven’t decided how some provisions of the new tax law will be calculated yet,” said Jagjit Chawla, general manager of Credit Karma Tax.

“For example, they only recently shared guidance with tax preparers about the current 2017 tax season. The IRS and states will share their 2018 guidance later this summer.”

2. Rework your withholding: The new law means that the W-4 you filled out however many years ago may need to be recalibrated. The IRS came out with new withholding tables on Jan. 11 that reflect changes such as the elimination of personal exemptions in the new tax law, but has yet to release an updated withholding calculator or a revised W-4 form. Additionally, the new tables don’t reflect all the changes that may affect a taxpayer next year, so they’re a somewhat of a blunt tool.

If workers leave their W-4 as is, they could wind up withholding too little, which can bring penalties, or they may get a smaller-than-expected refund next year. Workers in higher tax brackets who receive large bonuses could see a higher tax bill next season if they don’t tweak W-4s, since one of the ways employers can set the withholding rate on “supplemental income” such as bonuses in the new law is to use a flat rate of 22 percent.

“A large percentage of our clients will see a tax increase due to being in a high property and high-income tax area,” said Beach of Campbell Wealth Management. “My fear is that the new withholding tables will have them under-withhold and then they will have to write a check in April.”

The only solution he sees to deal with that now is for clients to make quarterly estimated payments. H&R Block expects its new tool to help people figure out if they need to change their withholding, and Liberty Tax Service is crunching on a new calculator to let those who get W-2 and 1099 forms make sure their withholding is appropriate. The goal is for the calculator to be ready for the later part of the filing season, which starts around March 1, said Martha O’Gorman, the company’s chief marketing officer.

3. Watch for SALT workarounds: A big change that could affect many taxpayers is the tax overhaul’s controversial cap on state and local income tax (SALT) deductions, a provision Democrats have labeled a war on blue state Americans.

The deduction, which used to be unlimited, will be capped at $10,000 next year. The new law’s near-doubling of the standard deduction to $12,000 for single filers and $24,000 for married couples filing jointly does mean fewer will itemize, but residents of high-tax, high-income states such as California, New Jersey and New York could wind up paying thousands of dollars more. A report by New York state’s Department of Taxation and Finance pegged the cost to New Yorkers alone at $14 billion.

States are busy devising workarounds to try and keep those residents from seeing a big spike in federal taxes next year-or moving to a lower tax state. Strategies being explored include plans to replace a state income tax with an employer-side payroll tax, and/or a system of tax credits for charitable donations made to state funds that support areas like education and health care. It’s not clear whether the attempts will prove administratively or legally feasible, however, especially since the Trump administration has pledged to fight such efforts.

4. Bunch up your donations: To try and get around that new SALT limit, one strategy advisers suggest for people who regularly donate to charity is to bunch up into one year what they would have given over multiple years. For those who itemize, charitable donations remain deductible on federal returns and can help lift married taxpayers who file jointly above the $24,000 standard deduction hurdle. By putting a few years’ worth of donations into a a donor-advised fund-many financial services firms have units that offer them-you can take the deduction the year you put the money in, but distribute the money to charity over multiple years.

5. Home equity loan deductions: The deductibility of interest on home equity loans and lines of credit (HELOCs) is a big area of confusion, said Tim Steffen, director of advanced planning for Baird Private Wealth Management. The new tax law lowered the amount on which interest expense on so-called “acquisition indebtedness” could be deducted-from $1 million to $750,000 for new loans made after Dec. 14, 2017. It also eliminated the interest deduction on loans that are not used to ‘buy, build or substantially improve’ a home, he said.

“Sometimes people buying a home don’t have money for the down payment, so take out a loan for 80 percent of the price and a home equity loan out for 20 percent,” said Steffen. “Because the home equity loan was used to buy a house it’s still considered deductible.” Going forward, though, if you take out a HELOC and use some of the money to buy a car, you cannot deduct that interest. If you use the money to put an addition on your home, however, that may still be deductible.

6. New college savings plan uses: The new tax law expands the allowable use of tax-exempt 529 college savings plans for education costs that accrue while your child is between kindergarten and high school graduation.

But while some states automatically follow the federal code, others choose to decouple from certain parts of it. So while the U.S. government may say you can use 529 money for K-12 expenses, a state may consider such a withdrawal a non-qualified distribution and could charge you penalties, said Steffen. So be careful.

7. Run your retirement numbers: A question Scott Bishop of STA Wealth Management in Houston, Texas, is hearing is whether the tax law does anything good or bad for a client’s retirement strategy.

For those retiring before age 70 ½, the age when withdrawals from tax-deferred retirement savings plans such as 401(k)s become mandatory and thus raise your taxable income, lower tax rates could present a reason to convert a standard pre-tax IRA into a Roth IRA, which consists of after-tax money. Or clients may consider taking distributions from standard IRAs, which they can tap without penalty starting at age 59 ½, to take advantage of lower tax brackets and avoid a “tax time bomb” of having to take large required minimum distributions (RMDs) while in retirement. Those bombs can bump you up into a higher tax bracket.

8. Finally, just breathe: “You can get your knickers in a knot and worry about something no one knows enough about yet, or you can chill and prepare your questions and concerns for when the answers surface,” said Jon Ten Haagen, of Ten Haagen Financial Group in Huntington, New York. “Breathe in, breathe out, and repeat as necessary until your heart rate is back down to normal.”

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