Tax Cheats: HMRC Publishes Names and Photos

The names and photographs of last year's top tax cheats have been made public as part of the Government's efforts to crack down on evasion.

The 32 criminals have been sentenced to a combined 155 years and 10 months behind bars, HM Revenue and Customs (HMRC) said.

The move to publish their details is designed to shame tax cheats.

The Government invested £917m in tackling tax evasion, avoidance and fraud in 2011-12, with an additional £77m planned over the next two years.

"Most people play by the rules and pay what they owe, but HMRC is cracking down on those who don't," said Exchequer Secretary to the Treasury David Gauke.

"We hope that publishing these pictures will help get across that it always makes sense to declare all your income, and tax dodgers are simply storing up trouble for the future."

The Government hopes its crackdown will raise an additional £7bn each year by 2014-15.

Among those whose details were published was a criminal gang that has been jailed for one of the biggest alcohol-smuggling frauds ever uncovered in the UK.

The scam was worth £50m a year in unpaid duty and VAT, and allowed the gang members to spend vast amounts of money on luxury cars and properties throughout Europe.

The Prime Minister has made tackling tax avoidance a key issue of the UK's presidency of the G8 group, amid mounting concerns over the tax policies of big international firms in the country.

16.01 | 0 komentar | Read More

FSA To Sweep Away New Bank Barriers

By Mark Kleinman, City Editor

The City regulator will set out proposals later this month to slash capital requirements for new banks as ministers try to ferment fresh competition to the industry's dominant players.

I have learned that the Financial Services Authority (FSA) has convened a summit on January 16 at which it will lay out plans to sweep away many of the restrictions that critics have argued have restricted the ability of new banks to get off the ground.

Among those attending the meeting will be representatives of the Treasury, the British Bankers' Association and the Association of Foreign Banks. The regulator's plans will be set out by Martin Wheatley and Andrew Bailey, the managing directors of the FSA.

According to insiders, the main proposal will be to relax the requirement for new lenders to hold comparable capital buffers to established banks during the early stages of their existence. Under current rules, new banks must significantly increase the capital they hold during their third year of operation, a measure that the FSA will propose is abolished.

Virgin Money entered the banking market as an alternative to the 'Big Four'

The existing capital regime has been criticised as excessively onerous by some executives who have attempted to launch banks in the aftermath of the financial crisis.

Only one new high street lender - Metro Bank - has opened its doors in recent times, and ministers are keen to encourage further efforts to assail the dominance of the likes of Barclays, Lloyds Banking Group and Royal Bank of Scotland.

A number of other projects, including a telephone and internet-based lender called Home & Savings Bank, have failed to see the light of day because of capital-raising difficulties.

Modernisation in 1959 included drive-in banks, like this one in Leicester

Last autumn, Mr Wheatley told the Parliamentary Commission on Banking Standards that the reformed regime for authorising new banks would achieve the Government's competition objectives.

"We are looking at a staged process where we can give new entrants enough certainty to recruit a chief executive and get capital but still reserve our position that they cannot be fully operational until the right things are in place."

The effort to remove capital obstacles to the formation of new banks comes as regulators intensify pressure on Britain's major lenders to increase the financial buffers in place to protect them in the event of a future financial crash.

The Bank of England, which will assume responsibility for regulating the banking industry this year, has warned lenders that they will need to restrict dividend and bonus payments in order to conserve capital.

The FSA, which is expected to publish its plans early next month, declined to comment on the forthcoming meeting.

16.01 | 0 komentar | Read More

More Pensioners Working Into Retirement

By Becky Johnson, Sky News Correspondent

As nearly 10 million people in Britain are now over 65, increasing numbers of pensioners are taking up a second career after they retire.

One in three 45 to 65-year-olds now plan to carry on working into retirement, according to a report by investment group Standard Life.

Sam Almond is 86 and lives in Altrincham, Cheshire, with his wife Hazel. After he retired from his job as the owner of a manufacturing company he began writing books about the financial markets.

His success as an author spurred him on to write a self-help book, Spinach For Breakfast, about the secrets to living longer.

He believes the key to staying young is keeping busy. Every day he gets up at 4.30am to allow time to do some exercise, eat a healthy breakfast and be at his desk for 8am.

The latest census shows the number of people over the age of 65 in England and Wales has increased by 10% over the last decade.

According to the Department for Work and Pensions life expectancy for men is expected to reach 91 by the year 2050, compared with 87 today.

One reason more people over retirement age are continuing to work is to top up their income.

The National Association for Pension Funds says nine in 10 people believe the state pension will not be enough for them in retirement.

Universities Minister David Willetts told Sky News: "One thing that we've done is transform the regime for older workers by abolishing compulsory retirement ages so that companies can keep staff for longer.

"But there may some people, who've paid off the mortgage and the kids have left home, who want to make a career change.

"We notice increasingly mature students who may have had one career but who are now thinking of getting a new qualification and starting a second career.

"I believe the more people that are out there seeking work, the more jobs get created. And if you look at the record of the last two years, despite the austerity, there have been more than one million extra jobs created in the private sector so we can create the jobs as people come forward who want to do them."

Julie Kertesz, 77, took up stand-up comedy a year ago. She says it's something she fell into by accident after realising she could make people laugh.

Originally from Hungary she has lived and worked around the world, mainly as a chemist.

She retired aged 60 but says she continued to pursue her interests in writing and photography.

She then tried public speaking and has now performed her stand-up routine in more than 50 venues across the UK.

She told Sky News: "The young people who listen to me are surprised and they like it, they say I'd like my grandmother to be like that or my grandfather.

"Don't die before you die - do things and live completely, change things because that is when you live... Even at 70 or 80 you can do wonderful things."

16.01 | 0 komentar | Read More

Google Does Not 'Fix' Searches: US Regulators

Google does not unfairly favour its own services above others in search results, according to US regulators.

The Federal Trade Commission (FTC) said it could find no evidence to back claims the search engine giant "fixed" its searches.

The 19-month investigation, which amounted to nine million pages of documents, ended in agreement that Google will change some of its practices.

The search engine has said it will stop "scraping" (using snippets of) reviews and other data from rivals' websites for its own products.

Websites will now be allowed to opt out of being "scraped" without being demoted in searches.

Google has also said it will allow greater access to its Motorola patents and will use a neutral third-party to try to resolve disputes before opting for an injunction.

These patents are deemed to be "essential" for rival mobile devices such as Apple iPhones and iPads.

However, the agreement has largely been interpreted as a mild rebuke, rather than the slap that many of the search engine's rivals had been hoping for.

Making an announcement at a news conference, the FTC chairman, Jon Leibovitz, said that Google was "unquestionably one of America's great companies".

Google patents are important for mobile devices such as iPhones

He said: "Many of Google's competitors wanted the commission to go further and regulate the intricacies of Google's search engine algorithm.

"Today, the commission has voted to close this investigation unanimously. Although some evidence suggested Google was trying to eliminate competition, Google's primary reason for changing its look and feel or algorithm was to improve search results."

Google posted a triumphant response in a blog, detailing the agreement and saying: "The conclusion is clear: Google's services are good for users and good for competition."

But Beth Wilkonon, a lawyer hired by the FTC to help steer the investigation, said: "Undoubtedly, Google took aggressive actions to gain advantage over rival search providers. However, the FTC's mission is to protect competition, and not individual competitors."

The European Commission is investigating Google over allegations of anti-competitive search practices and is due to report back later this year.

The FTC announcement came as the US State Department hit out at Google for being "unhelpful" after its executive chairman, Eric Schmidt, made a trip to North Korea.

State Department spokeswoman Victoria Nuland said: "We don't think the timing of this is particularly helpful." She said that Mr Schmidt had been made aware of US concerns about the trip.

She cited North Korea's launch of a long-range rocket in December, which raised tensions in the region.

16.01 | 0 komentar | Read More

Mortgages: Millions 'Struggle With Payments'

By Enda Brady, Sky News Correspondent

Nearly eight million people in Britain are struggling to keep up with mortgage or rent payments each month, according to the charity Shelter.

A total of 1.4 million have already fallen behind, with almost a million people resorting to high-interest 'pay day' loans to make ends meet.

"It's shocking to think that so many families will be starting the New Year with a huge weight hanging over them, trapped in a daily struggle to keep their home," said the charity's chief executive Campbell Robb.

"Payday loans may seem like a quick fix, but the huge interest charges mean things can quickly spiral out of control.

"It's vital that anyone who's having difficulty paying their rent or mortgage gets advice now. Don't wait until things reach breaking point later in the year - it could leave your family's home at risk."

Mother-of-two Mandy Buxton from West Sussex has found it impossible to balance the books over the past couple of years and opted to take out pay day loans to get by.

It is a decision she now bitterly regrets, as she faces up to having to leave her rented property.

"I got to the point where after I had paid off the loan I had 50p left and that had to last me the month," she told Sky News.

"I realised I couldn't carry on the way I was so I had to say to my boss that I wouldn't be coming back to work because I didn't have the money to get there and back.

"If you have to take a few days off work because one of your children is ill or there is a problem it puts you in a situation where you just can't pay the bills."

But with interest rates at an historic low, how will people cope in the next few years if and when rates go back to where they were before the recession began in 2008?

Mortgage expert Paula John says many people will eventually start moving towards fixed-rate mortgages.

"For hundreds of thousands of families it's only the very low mortgage rates that have been keeping the wolves from the door," she told Sky News.

"Many UK households have really been struggling over the past few years and if rates were to go up it would be a real concern.

"I think people are more financially aware now than they were a few years back and what we will see is a mass movement towards fixed-rate mortgages."

Shelter said it is seeing a rise in demand for its  services and pointed out that people are finding "there is little left of the housing safety net that was once there to help them get back on their feet".

16.01 | 0 komentar | Read More

Swiss Bank Wegelin To Close After Tax Probe

The oldest Swiss private bank is to close after 271 years after pleading guilty to helping wealthy Americans evade their taxes through secret accounts.

Wegelin & Co, founded in 1741, admitted charges of conspiracy in helping US taxpayers hide at least $1.2bn (£747m) for nearly a decade.

The plea, in a New York court, sounded the death knell for one of Switzerland's most storied banks, whose original European clients pre-date the American Revolution.

The bank agreed to pay $57.8m (£35.9m) to the United States in compensation and fines.

Otto Bruderer, a managing partner at the bank, told the court "Wegelin was aware that this conduct was wrong".

He said that "from about 2002 through about 2010, Wegelin agreed with certain US taxpayers to evade the US tax obligations of these US taxpayer clients, who filed false tax returns with the Internal Revenue Service".

The case against Wegelin is one of the most aggressive bank crackdowns on overseas tax evasion in US history.

It remains unclear whether the bank is required to reveal the details of its American clients.

The fate of three of its bankers - Michael Berlinka, Urs Frei and Roger Keller - indicted in January 2012 on charges later modified to include the bank, also remains up in the air.

The bank initially vowed to resist the charges last February and was declared a fugitive from justice when its Swiss-based executives failed to appear in court.

It claimed because it only had branches in Switzerland it could not be prosecuted by the US, adding that its actions were not in violation of Swiss law.

But in a statement on Thursday from its headquarters in the remote town of St Gallen near the German-Austrian border, it announced it would "cease to operate as a bank" once the matter was concluded.

Since its indictment it has moved quickly to wind down its business, partly through a sale of its non-US assets to regional Swiss bank Raiffesen Gruppe.

In a statement after the plea, Assistant US Attorney General Kathryn Keneally said it was a top Justice Department priority "to find those who continue to shirk their tax obligations," as well as those who help them and profit from it.

In 2009, UBS the largest Swiss bank, entered into a deferred-prosecution agreement with US tax authorities on matters related to tax evasion and agreed to turn over the names of 4,450 clients and pay a $780m (£485m) fine.

16.01 | 0 komentar | Read More

Report: Retail Bankruptcy Increased In 2012

The number of retail firms filing for bankruptcy continues to grow, according to new research.

Business advisory firm Deloitte said the number of retailers falling into administration in 2012 increased by 6%, compared with 2011.

It said 194 retailers entered administration last year, compared with 183 in 2011 - up 18% from the 165 bankruptcies in 2010.

Deloitte restructuring services partner Lee Manning said: "These figures are a stark reminder of the difficulties which continue to face the high street.

"Constrained household budgets and the structural challenges facing the sector mean it is certain that we will see further distress this year.

"Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013."

Deloitte said there had been a slight fall in the number of retail administrations during the last three months of 2012 compared to the fourth quarter of 2011, with bankruptcies down to 37 from 42.

Although administration proceedings across all sectors were down 9% in 2012 to 1,883, the retail sector was also noted for a number of high profile chains being hit.

"In 2012 alone we have seen Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet enter administration," Mr Manning said.

"Consumer confidence remains fragile and where we have seen some respite through lower inflation, this has not translated into increased spending with many consumers preferring to pay down existing debt or save."

The outlook continues to appear bleak for the retail sector, with the move to online shopping impacting heavily on future strategy.

"There will always be a need for physical retail space but at present too many retailers have too many stores and 2013 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.

"Similarly, as an increasing proportion of retail sales move to online and mobile, retailers need to consider how their stores support sales across all channels by offering flexible delivery or collection options, becoming a product showroom and developing brand engagement and loyalty."

16.01 | 0 komentar | Read More

US Fiscal Cliff: Markets Rally After Late Deal

Global markets have rallied in response to a deal in the United States to avert its so-called fiscal cliff.

The market boost came after US Democrats and Republicans finally agreed a deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession.

Stocks around the world started 2013 with hefty gains as investors welcomed the vote in the House of Representatives.

London's FTSE 100 was up 2.2% at the close, after earlier busting through the 6,000-point mark for the first time since July 2011.

Key European markets were up between 2.19% to 3.81%, while in Asia Hong Kong's Hang Seng index shot up 2.9% at the close - its highest finish since June 1, 2011.

In New York, the Dow Jones Industrial Average ended 2.4% higher.

The lights of the Capitol burned late into the night as the deal went on

"Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the presidential elections back in November," Mike McCudden, head of derivatives at stockbroker Interactive Investor, said.

The fiscal cliff deal is likely to remain the focus of attention in financial markets, as US institutions open for trading.

Mr Obama welcomed the agreement and said it was just one step in a broader effort to strengthen the economy.

He said: "Thanks to the votes of Republicans and Democrats in Congress I will sign a law that raises taxes on the wealthiest 2% of Americans while preventing tax hikes that could have sent the economy back into recession."

Some House Republicans had wanted to amend the bill to incorporate more spending cuts but dropped the idea.

Mr Obama headed to Hawaii for a break after the deal was brokered

In the end, 172 Democrats and 85 Republicans voted in favour of the bill, which marks a triumph for the president less than two months after he secured re-election while campaigning for higher taxes on the wealthy.

The legislation cleared the Senate hours after Vice President Joe Biden and Senate Republican Leader Mitch McConnell, veteran negotiators, sealed the deal.

The fiscal cliff deadline would have triggered tax increases of $536bn (£328bn) and spending cuts of $109bn (£67bn) from domestic and military programmes.

The compromise Senate deal extends the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 (£153,000) level that Democrats had originally sought.

But longer-term fiscal problems remain and Mr Obama will likely face more battles with the Republican-dominated House of Representatives.

"Cynics will point out that another argument has been booked in for two months' time, when the debt ceiling comes up for debate, IG market analyst Chris Beauchamp said.

"And Republicans will be looking to make progress on the spending cuts that haven't featured in the New Year deal."

16.01 | 0 komentar | Read More

Start-Up Loans Scheme Gets £30m Boost

Thousands more young entrepreneurs could get loans to start their own businesses as the Government announces it is boosting its scheme.

Prime Minister David Cameron said funding for the coalition's Start-Up Loans scheme was being boosted by £30m to £110m over three years.

The age limit for applying was also being raised from 24 to 30 in response to what Downing Street aides said was "high demand".

Number 10 insisted the initiative was on target to issue more than 2,500 loans by March - despite criticism that only a small portion of loans had been finalised since the scheme was formally launched last autumn.

Some 3,000 people are said to have registered an interest in the money and mentoring packages, which are only available in England and being delivered through charities such as The Prince's Trust.

Those whose business plans are deemed "robust" typically receive £2,500, which can be repaid over five years at a relatively low interest rate.

"Start-Up loans are an important part of my mission to back aspiration, and all those young people who want to work hard and get on in life, so this country competes and thrives in the global race," Mr Cameron said.

He said the scheme was a "great way to help this next generation of entrepreneurs get the financial help - and the confidence - to turn that spark of an idea into a growing, thriving business."

James Caan, panellist of the Dragons' Den BBC show and chairman of the company, said: "There has been a major shift in the way business is viewed by the public, and entrepreneurs are now seen as creative and exciting role models".

He added: "I am delighted to see that more and more young people are now looking to set up their own business."

16.01 | 0 komentar | Read More

Rail Fares: Anger As Commuters Face More Hikes

How Much Will Your Ticket Cost?

Updated: 2:14am UK, Wednesday 02 January 2013

This is a table of rail fare rises, comparing the price of a 12-month season ticket bought in December with one bought from January 2.

The table does not include the price paid if within-London travelcards are also purchased for Tube and bus journeys in the capital.

Where London is mentioned, this means travel to London terminal stations where travel is allowed by any route option shown by the National Rail Enquiry system, Journey Planner, where the journey can be made using only one ticket.

ROUTE                          DEC 2012  JAN 2013  % RISE

Leeds-Wakefield              £908      £964            6.16%

Bishop's Stortford-London  £3,560    £3,704     4.04%

Portsmouth Harbour-London  £4,480    £4,668  4.19%

Basingstoke-London         £3,800    £3,960       4.21%

Ramsgate-London            £4,640    £4,864     4.82%

Woking-London              £2,780    £2,896        4.17%

Folkestone-London          £4,612    £4,836      4.85%

Reading-London             £3,800    £3,960       4.21%

Sevenoaks-London           £2,980    £3,112    4.43%

Aylesbury-London           £3,520    £3,632      3.18%

Bedford-London             £4,004    £4,172      4.19%

Hastings-London            £4,400    £4,584     4.18%

Canterbury-London          £4,588    £4,812    4.80%

Deal-London                £4,640    £4,864    4.82%

Dover Priory-London        £4,640    £4,864    4.82%

Ludlow-Hereford            £1,892    £1,992    5.28%

Bangor-Llandudno           £1,084    £1,140    5.16%

Morpeth-Newcastle            £960    £1,008    5%

West Malling-London        £3,712    £3,876    4.42%

Guildford-London           £3,092    £3,224    4.27%

Bracknell-London           £3,800    £3,960    4.21%

Braintree-London           £3,960    £4,124    4.14%

Tunbridge Wells-London     £3,968    £4,132    4.13%

16.01 | 0 komentar | Read More