Podcast Summary
LinkedIn is a prime platform for hiring professionals: LinkedIn is a popular hiring platform with over 70% of its users not found on other job sites, making it an ideal place for businesses to access a wider pool of candidates.
LinkedIn is a valuable resource for hiring professionals, as over 70% of its users don't visit other leading job sites. Sandra, a potential candidate, emphasizes that she wasn't found on other job platforms and encourages businesses to post jobs on LinkedIn to access a wider pool of candidates, including those who might not be actively looking for new opportunities. Additionally, the credit crisis is affecting building societies, with Britannia, the second largest building society, announcing a reduction in the mutual cash bonus it pays to members. This reduction impacts around 1 million savers and borrowers, and it's a sign that the traditionally conservative mutual lending sector is also facing tough times. Building societies are relatively stable as they are funded retail, but consolidation in the long term is expected. Lastly, the Sleep Number Smart Bed offers individualized comfort for better sleep, with JD Power ranking it number 1 in customer satisfaction with mattresses purchased in store. For a limited time, customers can save 40% on the Sleep Number Limited Edition Smart Bed.
Building societies face risks despite retail focus: Building societies, despite relying on retail funds and borrowing from members, have diversified into riskier areas and may face losses and takeovers due to mortgage fraud, non-performing loans, and exotic financial instruments.
Despite being among the largest players in the retail savings market, building societies like Britannia and Nationwide are not immune to the risks associated with the credit crisis. While they have traditionally relied on borrowing from members and are required to maintain a significant portion of their funds from the retail market, they have also diversified into higher-risk areas such as non-conforming mortgages. This diversification, coupled with potential exposure to exotic financial instruments, could leave smaller societies vulnerable to losses and potential takeovers by larger entities. The credit crisis has exposed mortgage fraud and non-performing loans as significant risks, and smaller societies may bear the brunt of these issues. While building societies operate on a different business model than banks, they have not been entirely shielded from the subprime mortgage problems that originated in the United States. The potential for mergers or takeovers as a result of financial difficulties is a real possibility, particularly for smaller societies.
Potential for fewer windfalls from mergers in building societies: Decreased competition and public perception issues may limit merger opportunities in building societies, but smaller societies, particularly those with a regional focus, remain vulnerable.
The potential for significant windfalls from mergers and takeovers in the building society sector may be more limited in the future due to decreased competition and public perception issues. Old-style carpetbagging, where individuals open accounts to profit from mergers, may still occur, but the opportunities could be fewer. Some smaller societies, particularly those with a regional focus that try to act as national players, are seen as vulnerable due to regulatory burdens and the shift towards a more commoditized retail savings and borrowing environment. However, even larger players like Nationwide are considered small by international standards, so the risks and opportunities exist across the sector. For more information, readers are encouraged to read Steve's article in the FT Money section of the Financial Times on March 1st and 2nd, 2023, or send questions and comments to ask.ftyourmoney@ft.com.
Eligibility of Funds for ISAs depends on their domicile, registration, and listing: Not all funds can be held in an ISA. Eligibility depends on the fund's registration, domicile, and listing on a recognized investment exchange in the UK.
Not all funds can be held in an Individual Savings Account (ISA) despite the approaching tax year end. The eligibility of a fund for an ISA depends on its domicile and registration for sale in the UK, as well as its listing on a recognized investment exchange. For instance, UK-registered funds and those listed on major markets like London Stock Exchange are generally eligible. However, individual hedge funds, especially those domiciled offshore in regulation-light jurisdictions like Cayman or Bermuda, are not typically eligible. But, there are structures similar to investment trusts, known as closed-end investment companies, that hold hedge fund strategies and are listed on the main London market, making them eligible for inclusion in ISAs. It's important to note that the Alternative Investment Market (AIM) in London is not a recognized exchange for ICE inclusion, but some funds traded there can still be held in ISAs if they have secondary listings on recognized exchanges like the Channel Islands Stock Exchange.
HMRC Targets Property Owners for Undeclared Income: Property owners should disclose to HMRC any misunderstandings or undeclared income related to their property investments to avoid visits from 'ghost officers' and potential penalties.
HMRC is targeting property owners due to the complexity of tax issues surrounding property ownership and the prevalence of misunderstandings among property investors. Property owners who receive letters from HMRC should communicate openly with the revenue and make a disclosure, regardless of whether there is undeclared income or misunderstandings about expenses or losses. HMRC's investigation strategy revolves around identifying sectors with the highest risk of unpaid tax, and property ownership has been identified as a major area. The consequences of not disclosing to HMRC can result in visits from "ghost officers" who check advertising cards in shops and supermarkets for undeclared rental income. It's important for property owners to understand the rules and seek professional advice if needed to ensure they are in compliance with tax laws.
HMRC's tactics to detect tax evasion on property transactions: HMRC uses various methods like ghosts, cross-referencing, and tenant info to identify potential tax evaders on property transactions. Be aware of specific ISAs with high-interest rates but hidden catches.
HMRC in the UK uses various methods to identify individuals who may have evaded tax on their property transactions. These methods include employing "ghosts" to check supermarket notice boards and news agents' windows, cross-referencing stamp duty land tax returns with tax returns, and utilizing information from disgruntled tenants. On a different note, there is an ISA offering a 10% return for one year, but it comes with a catch. To be eligible for this high-interest ISA, individuals must open a specific product with either Abbey or Alliance and Leicester, such as a guaranteed growth plan or a certain type of current account. After the first year, the interest rate drops significantly, making it less competitive in the market. It's essential to carefully consider the terms and conditions before signing up for these offers.
Abbey's 10% super ISA with guaranteed investment and low participation rate: Despite a guaranteed investment option, Abbey's 10% super ISA offers only 50% participation in FTSE index growth, with minimal returns of 6% for 3.5 years and 18% for 6 years, and no dividend participation. Its returns might not even beat cash returns.
The Abbey's 10% super ISA comes with a guaranteed investment option, but its participation rate is only 50% of the growth of the FTSE index. This means that if the FTSE rises by 40% over six years, you'll only get 20% of that growth back. The returns are treated as capital gains, which could be tax-free for most people, but the product might not even beat the returns from cash. The minimum returns for the 3.5-year and 6-year versions are 6% and 18% respectively. However, it's worth noting that the product does not participate in the dividends. Even Abbey itself is not claiming that the product might beat cash returns. Therefore, it's important to consider whether it's worth investing in this product in the first place. For more information, tune in to Steve's deal of the week on the Financial Times Money Show on March 1st and 2nd.
