Tax, HBOS, Mastercard and debt

It’s the self assessment tax deadline today and, as with previous years, one in ten taxpayers are expected to file late and incur a penalty of £100. Now The Times reports that middle-class taxpayers have been issued with a record number of fines for errors on their returns. According to the newspaper, last year HM Revenue & Customs imposed 143,000 penalties on those who filed inaccurate information ‘because it deemed them not to have taken “reasonable care” — nearly three times the 55,000 fines levied in 2012’. But it seems that these mistakes are minor. Accountants said the penalties were incurred for, among other things, forgetting to declare the interest on an old savings account or omitting a health insurance policy or gym membership received through work. HBOS The BBC reports that six people, including two former HBOS bankers, have been found guilty of bribery and fraud that includes fraudulent loans totalling £245 million. The action by the financiers came at a high price for the bank’s business customers and shareholders. As well as the monetary loss, businesses went bankrupt as a result and some of the owners lost their homes. Lynden Scourfield, a former manager with HBOS, pleaded guilty to six counts including corruption. Five other defendants, including so-called turnaround consultants, were also convicted. Price rises A number of the UK’s top brewers have warned that the weak pound is putting the craft beer revolution at risk, according to The Guardian. About 200 new breweries a year have been opening during the craft beer renaissance, but the drop in sterling has dramatically increased the cost of imported ingredients and equipment. Now drinkers, already stumping up more than £5 a pint for some independent ales, are being warned that they may have to accept price rises or switch to cheaper mass-market brands. Mastercard The Daily Mail reports on a blow for consumers after Mastercard won a £500 million courtroom battle against retailers over its fees.

Companies including Next, Debenhams, Morrisons and Topshop claimed they were overcharged on so-called interchange payments paid by shops to credit and debit card issuers when customers buy goods using plastic. However, Mr Justice Popplewell has declared the fees were neither anti-competitive nor unlawful.

Debt

Responding to the Bank of England’s latest money and credit statistics, Citizens Advice says rising consumer borrowing could lead to serious debt problems further down the line – but that it is household bills putting the pressure on people’s finances now.

According to the Bank’s December 2016 figures, unsecured consumer credit is at its highest level since the financial crash and recession of 2008.

Gillian Guy, chief executive of Citizens Advice, said: ‘Rising consumer borrowing could spell debt problems for the future – but it is household bills that are a pressing issue for many families now.’

Shell ThisisMoney reports that the oil giant Shell has sold off £3 billion ($3.8 billion) worth of North Sea assets following the waning demand for oil.

The company forged a deal with Chrysaor Holdings Limited, a private-equity backed firm which is headquartered in London and registered in the Cayman Islands.

Cashback

Cash rebates are seen as a great sweetener for cash-strapped first-time buyers, with the providers that offer this type of incentive really standing out from the crowd. However, research by Moneyfacts.co.uk shows that the average cashback for those with a modest deposit (90 and 95 per cent loan-to-value) has fallen by £59 in just two years.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: ‘At a time when providers are fighting for borrowers’ attention, the slump in cashback for those seeking higher loan-to-values (LTVs) is disappointing. Not only has the amount offered to borrowers been affected, but the number of cashback deals overall has also seen a decline, from 1,022 deals two years ago to 918 today, although the number at 90 per cent and 95 per cent LTV has in fact increased over that time.’

Eurozone

Euro area annual inflation is expected to be 1.8 per cent in January 2017, up from 1.1 per cent in December 2016, according to a flash estimate from Eurostat, the EU’s statistics office.