How is investment & wealth management adapting with technological advancements?

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Thanks to digital innovation and the rise of fintech, the financial marketplace continues to evolve at a rapid rate.

Make no mistake; this evolution is gradually changing the way in which investment and wealth management firms operate and the services that they offer to clients.

In the case of service providers such as WH Ireland, there’s also a drive to change the way in which city bonuses are paid and the perception of the industry as a whole. This company is committing to paying bonuses out of earned profits, rather than total revenues generated within a specific period of time.

With this in mind, there’s no doubt that firms are striving hard to remain accessible and relevant in the modern age. But how exactly are investment and wealth management companies adapting to change in the digital age?

What Technologies are Prominent in the Financial Industry?

According to figures, an estimated 68 per cent of financial services respondents have claimed that learning about new technologies and implementing these represents their biggest challenge.

Not only this, but 69 per cent are concerned about their ability to stay relevant in the eyes of younger investors and Millennials, which is why the successful

HMRC appeal against student accommodation VAT policy ruling rejected

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HMRC’s appeal against a ruling that overturned its student accommodation VAT policy has been rejected in a case bringing benefits for companies involved in the construction of student housing, landlords and universities.

The decision not only provides reassurance to the student housing sector that subcontractors do not have to be paid VAT on new build student accommodation, but has additional implications beyond cash flow for all parties involved.

The Issues

The main contractor at Primus Place had received a certificate from the developer-landlord claiming relief from VAT because the new building would be used for a relevant residential purpose (RRP) i.e. a communal building for students. Ordinarily sub-contractors working on RRP buildings are not entitled to zero-rate their services; VAT must be charged at 20 per cent which the main contractor must then reclaim on a VAT return.

However, the units were designed as self-contained living accommodation including kitchenettes and en-suite bathrooms. While planning consent restricted use to students, there was no clause preventing each unit from being separately used or sold. Summit argued the zero-rate could be applied as they were working on ‘dwellings’. The relief for dwellings is broader than for RRP buildings and allows both main and

Five ways your accountant can save your business money

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Many small business owners manage their own finances but if you choose to employ an accountant, you may find you save your business money in the long-run.

More than bookkeepers, accountants are trained professionals who frequently see companies growing from new enterprises to established businesses. With their insight and skills you could be well on your way to tightening your finances and running your business in a way best suited to you.

Tax Planning

Tax regulations can be a maze and it can be very difficult to stay abreast of all changes to the law. Thanks to their expert knowledge on a range of tax planning options, your accountant can help you make the most of each tax year and advise on the most tax-efficient plan your business.

Your accountant can also save your business money simply by keeping on top of tax deadlines. While some penalties for late submission are smaller than others, they all add up and ultimately this is money that would be better invested in your business.

Cash Flow Advice

Having control over your costs and a good bookkeeping function can help with cash flow in your business. With a wealth of knowledge, your accountant can

What is Company Voluntary Administration?

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Company Voluntary Administration, or CVA, is a legal agreement settled between a company and its creditors.

Essentially, what CVA does is it helps companies repay their debt without going into to administration, thus avoiding declaring bankruptcy. The company will pay debts over a set period of time.

The agreement between the two parties is based on having a vested interest in preserving the company, rebuilding sales and profits and then, of course, the company will repay the creditors over the set period.

It must be the case that 75 per cent of creditors need to be in agreement and in full support of the CVA.

Once the agreement has been made, the company can carry on trading as they usually would, the directors can conduct their usual duties and the personal guarantees usually will not get called in, which will give the business the chance to survive.

Who can get a CVA?

A CVA can only be proposed if a company is insolvent or contingently insolvent. It will be monitored by a supervisor who will be a licensed insolvency practitioner. The arrangement will usually last between 3 to 5 years, depending on a number of factors. It is therefore

Don’t be complacent over Inheritance Tax warn accountants

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Tax experts are reminding families and individuals not to neglect the importance of Inheritance Tax (IHT) planning, despite changes to the way it is taxed.

According to the latest data from HM Revenue & Customs (HMRC), the Treasury collected approximately £5.3 billion in IHT last year – up 13 per cent on the amount collected in 2016.

News of the rise comes just months after the residence nil rate band (RNRB) – an additional tax-free IHT allowance available to individuals and families who wish to pass property to their direct lineal descendants in their Wills – was increased from £100,000 to £125,000.

Peter McMahon, Tax Partner at Grunberg & Co said: “Individuals in England and Wales will normally incur IHT at a rate of 40 per cent on all estates valued at above £325,000. But by taking advantage of the RNRB, individuals can effectively increase this tax-free threshold to £450,000 if they intend to pass on property to children or grandchildren in their Wills,” Justin said.

“The new changes to the RNRB are even better news for married couples and those who are in a civil partnership.

“This is because such individuals can combine their allowances – meaning that couples

consultation to bring change to IR 35

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Off-payroll working has recently attracted headlines in a number of high profile tribunal decisions.

The most notably of these is Christa Ackroyd, the BBC – “Look North” presenter who was recently found to be operating inside IR 35 and ordered to pay over £400,000 in tax and National Insurance Contributions (NICs).

Further headlines followed when other BBC talent similarly found themselves on the payroll. With this background, it might reasonably be supposed that the Government’s consultation issued on 18th May, “Off-payroll working in the private sector”, is a further development of these apparently connected stories – it is of course, although curiously, the Ackroyd case and the BBC’s decision are unconnected.

Off-payroll working simply describes those workers who are not on the PAYE payroll. This is typically because they are engaged through their own personal service company (PSC). The nature of the relationship between the worker provided by the PSC and the engaging client may be identical to that of an employee engaged under a contract of employment, yet the resulting tax may be markedly different. This has long been recognised as unfair and IR 35 (more formally ‘the intermediaries’ legislation’) has been in place since 2000 to address

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