Month: February 2019

digital tax
FinanceFundsTaxTransactional and Investment Banking

The importance of Making Tax Digital to the UK mid-market

The importance of Making Tax Digital to the UK mid-market

Written by Steve Lane, CTO at Access Group

With UK Government’s Making Tax Digital (MTD) deadline less than two months away, the race is on for UK organisations to understand the impact of MTD on their business. MTD could mean a significant shift in operations for some organisations, which means they need to act now in order to get themselves in order for the impending deadline.  


What MTD requires

The Making Tax Digital programme will require UK businesses with annual turnovers above the VAT threshold of £85,000 to keep digital records for VAT and submit their returns digitally. The points-based penalty system means business taxpayers gather points with each late submission of an MTD report, those with multiple businesses must submit tax reports for each of their businesses. To ease the transition process, HMRC is allowing the use of ‘bridging software’ to support the digitised submission and account information retrieval from spreadsheets. However, those without it in place risk not being able to carry out their business as usual.

While all respondents in Access Group’s survey use some type of electronic system for financial management, 96 percent of mid-market businesses still process a portion of their tax returns manually, for example performing off-system calculations, which could be problematic come 1st April if businesses fail to use bridging software to support the digital submission of their VAT returns. Which begs the question, why do some organisations still rely heavily on manually calculating? A large proportion of the finance professionals surveyed explained that they haven’t transitioned to 100 percent digital processes due to a lack of knowledge and training (26 percent) while others said it’s the fact that multiple legal entities are involved in VAT registration (23 percent).


Putting off MTD is no longer an option

Manually entering VAT is inefficient and opens businesses up to human error. Under the new regulations, mid-market businesses could stand to lose not only money in fines, but credibility within their field. Putting off making the necessary technical changes to your business is no longer an option.  

There are certain things that businesses simply cannot afford to ignore, for instance:  


Transformation

Deploying new business software isn’t always an easy decision. Especially when there are multiple ways to ensure your organisation remains compliant with government regulations. Considerations need to be made for either full business software transformation or a single solution update i.e. bridging software, to support. Given the impending deadline, businesses must act now, to ensure they’ve put in place measures that abide by the regulations.


Accreditations

When deciding to begin a digital transformation project, particularly with digitising financial systems, choosing a partner that has the proper government accreditations is vital. Acronyms like ISO or IL are ones to look out for.


Productivity

Digitising financial systems offers the business not only a more efficient, and free of human error way of working, but a more productive way as well. Entrusting admin-heavy tasks to intelligent software can free up time elsewhere to focus on innovation, business development and growth ambitions.

Whilst it’s important that businesses’ financial systems are all set for the 1st of April deadline, to think about Making Tax Digital solely in terms of tax compliance would be to miss the point. It’s the perfect opportunity for UK business’ senior management teams to take a broader perspective – one that turns this regulatory burden to the business’ advantage. The organisations who act now are the ones who will see greater efficiency and productivity, driving both business growth and profitability. It’s good practice to update your operational processes at any moment in time, the MTD deadline provides a good excuse for companies to do just that. Given the pressures coming from Government organisations to digitise and the complexities that go into technology investment, mid-market businesses need to ensure their finance teams’ house is in order to remain compliant and avoid fines in the new era of digital tax.

Corporate Finance and M&A/DealsSustainable FinanceTransactional and Investment Banking

The growth of the wind energy sector both in the UK and abroad

Greener initiatives are being utilised more and more across the globe, as Earth’s citizens try to safeguard the planet’s resources. We may have relied a lot on fossil fuels like gas and coal in the past, but due to these sources not being sustainable we’re now ambitious about developing practices which are more environmentally friendly.

The market for renewable energy now includes everything from wind turbines to wave power. Wind power is proving particularly popular, with the amount of energy generated across windfarms in just 2016 found to have exceeded the amount created via coal power plants in the UK for the first time ever. In fact, over 40 per cent of all the energy generated on Christmas Day 2016 was as a result of renewable sources and 75 per cent of that sum was from wind turbines.

As coal-fuelled electricity has dipped to its lowest output for 80 years, the future certainly looks bright for the renewables market and, in particular, the wind energy sector. Join joint integrity software experts HTL Group as they explore just how much potential this industry holds…

What we can expect in the near future

The wind energy sector had to reconsolidate record-breaking growth for the years between 2014 and 2016. In total, the global installed capacity at the end of 2016 was 486,790 MW — an impressive figure by anyone’s standards.

Growth is expected to pick-up once more in the years ahead though. In fact, there are predictions which expects the global installed capacity to rise to 546,100 MW. This year, this figure was anticipated to hit 607,000 MW before reaching 817,000 MW by 2021. Although the rate of growth is anticipated to slow, it’s clear that wind power will continue to occupy a large energy share on a global scale.

How is each area of the world performing? Asia, North America and Europe are expected to remain the dominant wind power markets. By 2021, it’s anticipated that Asia will create 357,100 GW of energy from wind turbines. Europe is expected to hit 234,800 GW, while North America is likely to generate 159,100 GW.

What’s more, emerging markets are predicted to continue their development. For example, Latin America will grow to 40,200 GW by 2021 — up from 15,300 GW in 2016 — while the Middle East and Africa will more than quadruple their output, growing from 3,900 GW in 2016 to 16,100 GW in 2021.

Investments to expect in the years ahead

Additional investments will obviously be required in order for the sector’s continued growth to be supported. In 2016, €43 billion was spent across Europe on constructing new wind farms, refinancing, fundraising and project acquisitions — an increase of €8 billion compared to 2015.

Offshore windfarms appear to be getting more attention than sites found onshore. Investments onshore dropped by 5%, while offshore reached a record-breaking €18.2 billion. Impressively, the UK is leading the way, raising €12.7 billion for new wind energy projects. This more than overshadows the country in second place, Germany, with €5.3 billion.

The total investment may be lower then. However, it’s clear that wind energy will remain vital to the global movement towards greener, more sustainable energy both now and in the future.

Cash ManagementFinanceFundsMarketsRisk Management

TOP RANKINGS FOR ASHFORDS LLP IN PITCHBOOK’S GLOBAL LEAGUE TABLES

Ashfords has again been ranked as one of the most active law firms globally in venture capital. The firm has been ranked 2nd in Europe for 2018 by PitchBook, which provides a comprehensive ranking of private equity and venture capital activity worldwide.

Ashfords is the only independent UK law firm to appear in the top five most active firms in Europe and has been placed in the top 5 in each of the past eight quarters.

PitchBook’s global review details top investors by region, firm headquarters, as well as the most active advisers and acquirers of PE-backed and VC-backed companies.

Chris Dyson, Partner and Head of Ashfords’ technology sector, commented: “Ashfords’ recognition in this prestigious league table confirms the team’s position as a leading venture capital practice in Europe. The team has deep expertise in this area and are very proud to work alongside many leading investment funds and growth companies.”

Deals the firm completed globally in 2018 include advising:

Notion Capital, Eden Ventures and BGF Ventures on the $350m sale of NewVoiceMedia to Vonage

Form3 on its investment from Draper Esprit, Barclays and Angel CoFund

Fluidly on its investment from Nyca Partners and Octopus

Anthemis on its investment in Realyse

Simply Cook on its investment from Octopus

WhiteHat on its investment from Lightspeed, Village Global, Anil Aggarwal, and Wendy Tan White

Mobius Motors on its investment from Pan-African Investment Company, Playfair Capital, VestedWorld and others

Local Globe on its investment in StatusToday

Holtzbrinck Ventures and Notion Capital on the sale of Dealflo to OneSpan

BGF on its investment in Ruroc.


Ashfords LLP
ashfords.co.uk

Cash ManagementRisk ManagementTransactional and Investment Banking

Tail expands portfolio driven by significant investment

Tail Offers Ltd is pleased to announce that Quantum Financial Holdings, a Fintech and security investment Group, has made an investment of £500,000 into the business. In addition to the financial investment Quantum has made, Tail will benefit from a suite of backoffice, infrastructure and value-added functions provided by the Quantum Group which will accelerate Tail’s significant growth to date.

“I am delighted to have been able to secure a deal with Tail which will enable them to invest in critical systems and further develop their amazing offering, driven by their exceptionally talented team,” says Floyd Woodrow, Chairman of Quantum Financial Holdings. “As well as financial investment, Quantum prides itself on bringing additional value to those companies we have an involvement in, through expertise and the streamlining of business support functions which free up key drivers in Fintech organisations to do what they do best – innovate.” 

“Open Banking will change the way consumers and retailers interact and we want to be at the forefront of facilitating that change,” says Philipp Keller, CEO of Tail Offers Ltd. “We are already focused on expanding our offering to a national audience and this will be accelerated through Quantum’s involvement.” 

“As our offer portfolio expands, we will continue to deliver a readymade white label rewards solution to corporate and financial institutions which will, in turn, enhance their own customer propositions. We are excited to embark on the next step of our journey with a partner that not only provides us with capital but, more importantly, with the right network and infrastructure to use it effectively,” Keller concludes. 

Part of the inaugural Tech Nation Fintech programme, Tail is one of the leading cashback solution providers for Open Banking. Already available for Monzo and Starling customers, its most recent addition includes Volopa, a London-based card provider active in the corporate and private banking sector. 

The Tail app integrates directly with a user’s bank account to provide tailored, high-value offers and cashback rewards in the most convenient way possible. Via its industry-first, cashback, self-serve platform, Tail enables hyperlocal, local and national merchants to use a tailored, data-driven rewards solution to engage directly with customers. 

For further information, please email [email protected] 

Cash ManagementFinanceFunds

Mayflex forms a Distribution Agreement with Global Invacom

Mayflex, the distributor of Converged IP Solutions, announces it has formed a distribution agreement with Global Invacom. The deal will see Mayflex and Global Invacom targeting Multi-Dwelling Unit projects by liaising with System Integrators, Consultants and End Users.

Global Invacom, the global provider of satellite communications equipment, specialises in Fibre Integrated Reception System (“FibreIRS”), delivering Satellite TV reception. Global Invacom’s vision is to increase the awareness of the advantages of FibreIRS and to work alongside Mayflex to help specify FibreIRS alongside cabling, data and CCTV Security.

Aaron Ghera, Sales Manager at Global Invacom, commented on the alliance: “Having seen interest from a number of organisations, we’re delighted to form a distribution agreement with Mayflex, who we believe have the resources, industry knowledge and proficiency to support our strategies.”

He continued, “Our plan is to minimise the amount of contacts required for a single project. For instance, rather than approaching four different supplies for your data, security, cabling and Satellite TV, Mayflex will supply all four services from one point of contact. By providing an integrated system solution, we can add more value to our customers and develop relationships that will see similar integrated systems across the UK.”

Ross McLetchie, Director of Sales, commented, “I am delighted to welcome Global Invacom on board with Mayflex. Incorporating this brand into our existing product portfolio will open up a host of new customer opportunities.”

Ross continued, “It is an exciting start to the year for Mayflex, as this agreement comes just shortly after the launch of Excel’s new Passive Optical Networks (PON) Solution.”

Similar in concept to PON infrastructure, FibreIRS technology is a new method of carrying satellite signals via fibre rather than coax. There are various advantages of using fibre such as reduction in signal loss, increased distance capacity, scalability and improved cost efficacy.

Ross concluded, “New customers to Mayflex can be assured of a first rate, knowledgeable team of sales and technical personnel. Partners will be provided with dedicated account management and the support needed to ensure the correct solution is specified and delivered on a project by project basis. I am confident that Excel’s new PON Solution and the Global Invacom range will become a staple part of our product portfolio and look forward to working with all parties involved.”

The FibreIRS technology itself was developed and manufactured by Global Invacom with the intention of revolutionising the satellite tv market. Over the years we’ve seen the development of similar products throughout the industry, however Global Invacom is determined to be at the forefront of the satellite industry and Mayflex are enthusiastic to support this drive.

The range of Global Invacom products will be widely available to purchase from Mayflex from February 2019. Global Invacom will also be sponsoring the upcoming Excel Partner Briefing events, taking place across the country in Birmingham, Manchester, Glasgow and London. There will be presentations on both the Excel PON Solution and Global Invacom’s FibreIRS Technology, as well as representatives available in the exhibition areas to discuss any requirements. Visit www.mayflex.com for further details or speak to the sales team on 0800 75 75 65.


BankingFinanceTransactional and Investment Banking

Investors prefer ‘disruptive’ start-ups, but give them less money

Entrepreneurs pitching ‘disruptive’ start-ups are 22% more likely to get funding, but receive 24% less investment than less risky ventures, according to new research from Rotterdam School of Management, Erasmus University (RSM).

A disruptive start-up, breaking away from existing products, services and business models, can potentially bring colossal returns for investors. But these ventures are also risky, with a considerable possibility of failure, says Timo van Balen, a researcher at RSM.

Timo analysed data of 918 start-ups from Start-Up Nation Central, a private non-profit organisation that has collected data on all Israeli start-ups since 2013. He compared the characteristics of each profile’s vision statement, aimed at investors, with how much funding the venture secured.

Alongside fellow researchers, Murat Tarakci of RSM and Ashish Sood of the University of California Riverside, he discovered that increasing the communication of a start-up’s disruptive vision improved the odds of receiving funding by an average of 22%. But it cut the amount invested by an average of 24%. This amounted to $87,000 less in the first investment round and $361,000 less in the second investment round.

Timo says: “Entrepreneurs increasingly talk about ‘disruption’, framing their products, technologies and ventures in this way to secure financial capital. We found that emphasising this image of a venture’s potential market disruption does increase the odds of receiving first-round funding. This is because the promise of being a ‘game-changer’ fosters investors’ expectations of extraordinary returns on their money. However, a highly disruptive venture’s future success is often uncertain, which deters investors from making large speculative investments into it.”

The research suggests that entrepreneurs can craft the communication of their vision to help achieve their funding goals.

Timo says: “Despite the temptation to pitch a venture as disruptive, entrepreneurs should be judicious with the ways they attempt to secure funding. If getting an investment of any size is very important, pitching a highly disruptive vision might be key to grabbing the right people’s attention. But if it’s more important to attract bigger investments, it might be smart to avoid communicating a disruptive vision of the effect of your start-up.”

Articles

Former global leader of financial services at PwC, Nigel Vooght, joins Inforalgo as non-executive chairman

Inforalgo, the Capital Markets data automation specialist, has announced the appointment of Nigel Vooght, the former Global Leader of Financial Services at PwC, as non-executive chairman. He brings over 20 years’ experience in the industry to the role, in addition to a deep knowledge of strategy and management.

With detailed first-hand knowledge of the market, its regulatory complexity and use of Fintech and Regtech tools and solutions, Nigel will add significant value to Inforalgo and its clients.

Commenting on his attraction to the post, Nigel said, “Inforalgo is a firmly established and trusted provider of critical, high-impact solutions for solving regulatory complexity and other substantial data management issues in financial markets, particularly capital markets trading. With a new platform that harnesses the cloud and addresses financial institutions’ deepest and most cumbersome challenges with speed and agility, Inforalgo is looking at significant market potential.”

“We’re absolutely delighted that Nigel is joining us, and that he has identified the vital role we play for our clients,” added Jordan Ambrose, Inforalgo’s CEO. “It isn’t always easy to appreciate the behind-the-scenes technology, the clever part that happens in the background – connecting systems, and enabling reliable real-time data feeds and intelligent automation around tracking and reporting. But the capabilities we offer are something fundamental that every financial services organisation needs in this fast-paced, competitive and strictly regulated market. Nigel absolutely recognises that, so this match is a great meeting of minds. We’re thrilled to have him on board.”

ArticlesBankingMarketsRisk Management

The fragile line between financial returns and social good – how much can, and should, personal values influence a portfolio and asset allocation

By Charlotte Filsell – Head of Client Relationship Management at Sandaire.

In many industries no two clients are the same. In Family Offices this is particularly evident. Every family, and every individual within that family, is entirely unique and is continually growing, evolving and shifting their needs and priorities.

This is a fascinating and complex journey to help families navigate. Where this is especially pertinent, is finding the delicate balance between financial returns and social good. As such, it’s incredibly important that families have access to delicate guidance and careful stewardship, so they can find the right balance to match both their values and their long-term needs – and to match their individual and familial priorities.

As families navigate a generational wealth transfer to the younger generations, social good and impact investing becomes more apparent. There is undoubtedly an increasing trend from the younger generation, to go beyond a simple financial transaction or donation to worthy causes. When it comes to using their wealth, millennials tend to be more concerned about making their money go further, making a larger impact, and are interested in finding sustainable interventions and solutions. Differences certainly exist across generations, but what unites family members, is the motivation to make the world a better place.

In philanthropy, this can be reflected in a desire to learn about an issue and understand the nuances in order to direct effort and resources as effectively as possible. To achieve this effectively, it’s crucial to work closely with clients to assist with their philanthropic endeavours, including helping to find causes that are important to them and guiding on how they might be able to make a positive contribution. In addition to this, connecting clients to other families in the same situation, or perhaps further along the philanthropy journey, allows them to share ideas and experiences, and apply these to their own particular investment desires.

In no small part because this is such a personal yet complex issue, families are increasingly looking for advisers who not only understand the intricacies of the financial and investment landscape, but who have a thorough grasp on the values and philanthropic intentions of the client. This can make a huge difference. It’s incredibly important to provide thoughtful guidance and careful stewardship to help families strike the right balance. This can take many forms – an effective family office must shift with the needs of the families it serves and take on the role that’s required – whether that’s a leader, a partner, a facilitator, or a mediator.

The trend towards Socially Responsible Investment (SRI) has led to the integration of environmental, social and governance (ESG) factors into investment decisions. The development of SRI and impact investment is offering the prospect of achieving returns measured in more than merely financial terms; it is embedding values and responsibility into investment decisions. While many businesses may have long been delivering more than financial returns, social and impact investing is bringing intention to the fore in investment selection and outcome measurement into the evaluation of success.

The crucial role of the family office is to help steer the families we serve through this fascinating and complex process, developing a successful wealth plan that futureproofs their wealth, whilst satisfying their philanthropic interests and passions. Although a fragile line, we believe that a portfolio can satisfy both financial return objectives and positive social impact that reflects a client’s personal values, acknowledging that a balance will need to be struck depending on the needs of each individual client.  

Infrastructure

61% of Brits are worried the high street will disappear in the next 10 years

New research by KIS Finance has revealed that consumers are worried the high street is going to be lost completely due to the current store closures in the news.


From surveying 1,000 consumers in the UK, KIS unearthed startling findings including:

•61% of Brits are worried the high street will disappear in the next ten years due to recent store closures in the news

•Northern cities have by far been worst hit by store closures

•Food and beverage, value and fashion brands are predicted to be the next victims of the high street

•If local high streets had free parking and easy accessibility, consumers would be more likely to shop in-store


As part of its research KIS mapped out which cities had been hit the hardest by the major store closures of the last year, including those announced already in 2019 such as M&S and Patisserie Valerie. This revealed northern cities such as Leeds and Glasgow had been hit far harder than their southern counterparts. The top cities impacted were:

1.Leeds
2.Glasgow
3.Aberdeen
4.Bradford
5.Cardiff
6.Doncaster
7.Leicester
8.Manchester


By partnering with James Child, Retail Analyst at EG, we can see there doesn’t seem to be any sign of these closures letting up, he says: “It is quite likely that there will be a continuation, if not a proliferation of the negative headlines in retail. The raft of CVA’s and administrations in the sector has culminated in an expected 1,600 store closures across the UK, with over 18 million square foot of prime retail real estate vacated. When we break down the events of 2018 there are some trends which we could well see exacerbated into 2019 – due to fragile trading conditions and economic uncertainty.

There are certain sub-sectors that will face more pressure others. The fallout from the department store will continue at pace, with the future of House of Fraser, and Debenhams in particular should come to a head, a merger quite possible with a reduction of their overstretched portfolios. Food and beverage, value and fashion brands will come under more strain as over stretched markets begin to weed out weaker offers as retail Darwinism bites.”


When asked what would tempt them back to the great British high street, the top answers from Brits were:

•More staff to ensure that the experience is quicker (41%)

•Clearer stock check in store (34%)

•24-hour service so that you can shop at any time (27%)

•Self-checkout service to avoid queues (26%)


After asking consumers what they think the high street will look like in ten years, it seems that consumers are worried that independent stores won’t exist, the below is listed from most likely to least likely.

1.Restaurants
2.Coffee shops
3.Second-hand shops
4.Bars
5.Fast food restaurants
6.Retails chains e.g. department stores
7.Clubs
8.Cinemas
9.Banks
10.Travel agents
11.Independent retailers


Holly Andrews, Managing Director at KIS Finance says;

“With store closures flooding our news-feeds recently, we were interested to find out what the future holds for the high street and how consumers’ shopping habits might affect retailers’ footfall. It is obvious from our research that people do still like going into store to shop, but it just isn’t as accessible as online shopping is.

To save the high street many retailers need to ensure that they are thinking innovatively about how to draw customers in with clearer in-store stock checks, more staff and extended hours during busy periods. The reason why so many retailers are struggling with their stores is because consumer shopping habits are changing and the high street needs to change with it, creating a more community led atmosphere with more accessibility and variety for everyone.”

After surveying Britain’s consumers and finding out what the high street could look like in the future, KIS Finance have collaborated with Sam Edwards, an illustrator from London, to visual these changes.

BankingCash Management

ETS Corporate Business Brokers Sell Coffee shop London within 24 Hours!

Tram Coffee Shop in Richmond sold to a new business. ETS Corporate business brokers sell cafe London in record time!

Manuel and his wife Anna Conceicao contacted Zach Dogar of ETS Corporate Business Brokers after they had a sudden medical emergency. Anna required urgent treatment which was to start in 5 weeks and they could no longer operate the business.

They had only opened the business in October 2018 with an investment of over £35,000. ETS Corporate placed the business on the market on the 12th November 2018 and within 24 hours had secured a non-refundable deposit of £5,000 from the Buyers. The sale was concluded on the 22nd December 2018, at record speed thanks to ETS Corporate associations with a good team of lawyers and the determination and initiative from the Owners. It was sold for the full asking price of £34,995, ensuring the medical treatment was administered on time and the Clients were able to recoup their investment.

This case demonstrated that ETS Corporate is very quick, efficient and have excellent industry knowledge. They know where to pitch the sale price to get the result for the client whilst obtaining the best price. Their [lockout fee|(a non-refundable deposit paid by the Buyer when a sale is agreed) ensured that the buyer was serious and genuine and they know what information to place on the marketing to get the most effective result. They also work with a diligent team to get the job done for the Client.


This very new coffee house business was being sold due to illness. It has been operating since October 2018 with a husband and wife team.

The goal of the business was to be the artisan coffee house of choice for the local community in Richmond, the address being 226 Upper Richmond Road West, East Sheen, Richmond SW14 8AH. It attracted shoppers, downtown business workers, tourists who visit the city, and students, by providing a higher quality experience than any competitor.

The coffee bar was an independent family run coffee house that offered residents, visitors and the business community a different, more personal style of artisan coffee house by providing a uniquely flavorful coffee and cakes as well as a comfortable environment to socialise, relax or work. It had huge potential in the short time it has been open.

It offered some individual and unique foods as all cakes, salads, toasties, and baguettes are hand made in house on demand. They also offered a warm, trendy and light atmosphere as well as a personalised welcome and service to all their customers.

The Owners had planned to obtain a drinks licence and open later from Thursday to Saturday in order to serve cold meats and cheese platers as well as other Mediterranean foods accompanied by wine/beer. In addition, they wanted to apply for an A3 licence so that they could extend their menu by including hot food options. This change of use was already contemplated in the current lease.


The Owner contacted many business brokers and decided to use ETS Corporate for many reasons. They were able to place the business on the market within 24 hours and offered a personal and professional service. Further, ETS Corporate did not charge upfront fees and was therefore motivated to sell and results focused, as they pay for each client’s marketing upfront themselves; a majority of agents charge upfront fees. The valuation was realistic and Anna and Miguel were confident in ETS Corporate abilities.

If the Owners had not sold the business, they were going to lose all their investment and still be liable for rent under the lease. It was imperative that the business was sold within 4-5 weeks before Anna’s treatment started.

The owner was initially referred from Daltons Business, with whom ETS Corporate have a long-standing relationship.


ETS Corporate first of all obtained all the information from the Owners and was on the market within 24 hours of instruction. This was after a valuation was done within hours of being contacted and all paperwork was signed electronically. ETS Corporate have a very automated system, which is largely internet based and therefore are able to move very quickly and without the need to send salespeople to clients. All valuations and the whole process is handled by Zach Dogar, who has over 22 years experience in the industry.


ETS Corporate was able to find a suitable Buyer for the Owners within 24 hours including securing a £5,000 lockout fee and complete the sale within just over 5 weeks of instruction.

For the Clients, they were able to sell and get their investment back and get on with the treatment which was starting after only one month.

The Buyer’s Roya and Amir Fanaie were very keen on the site which is extremely busy and on a prominent corner plot. They wanted to offer authentic and traditional Iranian dishes that are not available locally.

They re-named the business Neeman after their two sons and as well as coffee and tea, they offer healthy drinks and smoothies. They also provide pomegranate Juice, which is very popular in Iran.

They are planning to introduce other dishes such as:

Haleem for which Roya has her own recipe;
Various home-made Iranian soups again from an old family recipe; and
Shirin Pollo which is a sweet Iranian dish

All the dishes will be slightly adapted for the British palate.

Amir found the service ETS Corporate offered to be “very good and particularly good was the punctuality, politeness and honesty. We were very happy with the time scale. We were first-time Buyers and you helped a lot.”

Roya said “to be honest, the service was very reliable and friendly. “When we paid the non-refundable deposit of £5,000, you emailed us back in 10 minutes to let us know you have it I can trust you and your company” The non-refundable deposit or lockout fee is very important as it ties the Buyer to committing to Buy the business at the agreed price and this stops Buyers taking advantage of the situation by threatening to pull out in an attempt to reduce the price.


Read the full case study here

For a free e-book “How to sell a cafe” click here

Corporate Finance and M&A/DealsFinanceForeign Direct InvestmentIslamic Finance

Smart Dubai Launches Guidelines on Ethical use of Artificial Intelligence

  • Smart Dubai outlines standards for AI systems to ensure they are fair, transparent and accountable
  • World’s first city-government endorsed Smart AI Ethics Self Assessment Tool launched to help assess level of ethics in AI systems
  • Initiative aims to accelerate Dubai’s goals of becoming an AI powered city of the future

Dubai’s quest to become the world’s smartest city has received a strong ethical grounding with the unveiling of guidelines for the use of Artificial Intelligence (AI). The new ‘Ethical AI Toolkit,’ which provides advice to individuals and organisations offering AI services, has been formulated by the Smart Dubai Office (Smart Dubai) – the government department that has a mandate to make Dubai the world’s happiest city through innovation.

 

Outlining the need for the new guidelines, Smart Dubai says that they will encourage organisations that deliver AI services to place a priority on fairness, transparency and accountability and that they will serve to elevate the city’s position as a thought leader in in the adoption of AI across government services and beyond.

 

“Our vision is for Dubai to excel in the use of technology to maximise human benefit and happiness, as well as to be a global technology standard-setter. Artificial Intelligence plays an integral role in all of this. And with the use of AI growing exponentially across the globe, the ethical dimension of this nascent but rapidly proliferating technology is an increasing topic of discussion on the international stage,” said Her Excellency Dr. Aisha bint Butti bin Bishr, Director General of the Smart Dubai Office.

 

“There is an understanding by governments, NGOs and the private sector that AI regulation is needed, but that the field is not yet mature enough to devise fixed rules to govern it. However, organisations still require guidance and regulators still need to begin to learn how to oversee this emerging technology, but without creating restrictions that could stifle innovation. Smart Dubai’s Ethical AI Toolkit aims to provide advice in this area for all those involved in the AI sector,” she added.

 

As part of the toolkit, Smart Dubai has also launched the world’s first city-government endorsed AI Ethics Self-Assessment Tool. The AI Ethics Self-Assessment Tool is built to enable AI developers and operators evaluate the ethical level of their AI system, if implemented using Smart Dubai’s AI Ethical Principles and Guidelines.

 

Smart Dubai’s Ethical AI Toolkit was created using a benchmarking exercise and a consultation approach. Government sector entities, such as the Telecommunications Regulatory Authority, Dubai Electronic Security Centre, Dubai Health Authority, the Roads and Transport Authority, Dubai Municipality, Dubai Electricity and Water Authority and Dubai Land Department, were consulted during the initial feedback gathering, as were private sector companies including Microsoft, IBM, Google, Etisalat and PWC.

 

Smart Dubai is actively encouraging ongoing critiquing from across the AI community in relation to the guidelines. This feedback, combined with Smart Dubai’s research, aims to help iterate the Ethical AI Toolkit so that its framework and guidance keeps pace with technological advancements. The office is also establishing an Advisory Board, comprising leading AI and ethics experts from the private and public sectors, who will review the guidelines and help make continuous ongoing improvements to them.

 

Smart Dubai says that it wants to start discussions between different stakeholders in Dubai around AI ethics and for all components in the city’s technology ecosystem to work together to achieve a unified approach and reach common agreement on becoming more responsible on the use and development of AI systems. The office highlighted that it would like to see the Ethical AI Toolkit evolve into a universal, practical and applicable framework that informs ethical requirements for AI design and use and one that offers tangible suggestions to help stakeholders adhere to the ethics principle.

 

“By fusing data and innovation we’re preparing Dubai to become the AI city of the future. Artificial Intelligence will streamline day-to-day work life by providing fast and easy access to a wealth of data-driven information. Its consequences will be far-reaching and will impact every area of life, so creating guidelines for AI operatives is essential to provide an ethical underpinning to this evolution. Our aim is to offer unified guidance that is continuously improved in collaboration with our communities, with the eventual goal being to reach widespread agreement and adoption of commonly-agreed policies to inform the ethical use of AI, not just in Dubai but around the world,” said His Excellency Younus Al Nasser, Assistant Director General, Smart Dubai and CEO, Smart Dubai Data.

 

Smart Dubai’s Ethical AI Toolkit addresses some of the key issues around establishing regulatory principles relating to AI. These include the rapid evolution of the AI landscape that is leading to a fragmented approach to ethics, with each company dealing with ethical issues in their own way. They also intend to clear the ambiguity around what constitutes ethics in AI, as it is thought that ambiguity could supress innovation through entities holding back on research because they are unsure of future government actions. The toolkit also aims to improve trust in AI systems, with confidence in them cemented by the public being able to see that companies are following the new advice that is published transparently online.

BankingCash Management

TrueLayer launches one of Europe’s first Open Banking based Payments API

TrueLayer, Europe’s leading provider of Open Banking and financial APIs, has launched one of the first Open Banking and PSD2 based Payments API. 

 

The API, which is in public Beta, offers a new way for businesses and consumers to pay for goods and services or transfer money. It is an alternative to credit and debit card payments, bank transfers and traditional payments processors. 

 

By using the payment initiation process created by PSD2 – the European Directive that oversees ‘Open Banking’ in the EU – the API confers a number of benefits:

 

  • Immediate settlement – cleared funds are received in few minutes (during business hours) – in contrast to the several days experienced by most businesses
  • Secure and fraud-proof – the API requires active bank authentication before any money can leave the account. This means high security and extremely low fraud rates
  • Cheaper – as there is no credit extended and fraud is highly unlikely payments do not have the high fees of card transactions
  • Streamlined – customers do not need to manually type in a business’s bank account number to transfer money to a business

 

The API works with all major UK banks, and more specifically, the CMA9. TrueLayer, which was one of the first companies in Europe to be approved as an Authorised Payment Institution with PSD2 permissions – Account Information Services and Payment Initiation Services, believes this API marks a major milestone in the development of Open Banking in the UK and the liberalisation of financial services.

 

Francesco Simoneschi, CEO and co-Founder of TrueLayer, said: “Companies often throw out cliches such as ‘game-changing’ or ‘disruptive’ when they launch a new product, but in this instance we are looking at a very meaningful and very important innovation. It puts the banks back at the centre of the payment process, allowing them to create competitive and differentiated payment experiences as well as enabling entirely new opportunities for deeper purchase flows into the banks’ mainstream digital channels. For fintech applications and merchants, payments initiation fills a huge gap in the European payments market for use cases that are currently largely underserved by traditional payments products. 

 

“The fraud prevention aspect of the API alone would have made a huge impact, however, it is just one of a range of benefits. Near instant transactions, low fees and a streamlined process are all significant and tangible improvements for businesses and consumers. 

 

“When Open Banking was launched this was the development many people in the financial industry were waiting for. It is a new form of online payments that will add much needed competition and open the door to range of innovative applications. Our entire team has worked incredibly hard to develop it and the most exciting aspect is that it’s only the beginning.”

 

The Payments API began beta testing with a dozen companies including digital wealth manager Moneyfarm and ‘build your own fintech’ platform Wealth Kernel. 

 

Giovanni Dapra, CEO and co-Founder of Moneyfarm, said: “We firmly believe that technology has the capacity to radically improve customer experiences in the financial services industry and, ultimately, help people realise their financial goals.

 

“This is why we’re delighted that TrueLayer has launched an Open Banking Payments API. Its potential to ease a lot of pain points by improving the security, speed and availability of transactions is very exciting. We have been anticipating a breakthrough like this from Open Banking which will directly benefit our clients and encourage further innovation in this space.”

 

Joe Campbell CTO of WealthKernel, said: “TrueLayer’s new API will enable our clients to quickly build products and services that offer a highly secure fully integrated payments experience. Not only does it greatly reduce our operational costs and risks, it also improves conversions and provides a great user experience. 

 

“This is an incredibly important step in the realisation of Open Banking’s potential. It provides a vehicle for a host of new applications to enter the market which will vastly improve how financial services work for businesses and consumers. We’re very impressed by the Payments API and excited to see the innovative ways it will be used.”

 

TrueLayer expects to launch an updated Payments API later in 2019 which will add features such as future dated payments, standing orders and batch payments.

 

The Payments API launch follows last month’s extension of TrueLayer’s Data API to Germany. Over the last year it has secured a series of major partnerships with companies including Zopa, ClearScore, CreditLadder, Canopy, Plum, BitBond, Emma, Anorak. It also has a number of undisclosed partnerships in the pipeline with major companies in the consumer and financial space that will go live in the next 12 months. 

Cash ManagementMarketsRisk ManagementTax

Top tips when it comes to completing your self-assessment tax return

The time of year is almost upon us where millions will have to complete their self-assessment tax return. Whether that’s as a sole trader, a freelancer, a contractor or running your own businesses, anyone who works for themselves will have to complete their forms before the annual January 31 deadline. For many, it can seem like a daunting task, so is there anything you can do to make the process easier?

 

 

James Foster, Commercial Manager at specialist accountancy provider Nixon Williams

At Nixon Williams, we manage a large client base of small businesses, contractors and self-employed individuals, which means we complete thousands of tax returns each year. This experience has provided us with an in-depth knowledge of the process and how to maximise efficiency when it comes to completing a self-assessment tax return submission.

 

The majority of the working population have their tax deducted at source from the company that they work for, however, anyone that is self-employed has to complete a self-assessment tax return in order to be taxed appropriately on their earnings by Her Majesty’s Revenue and Customs (HMRC).

 

When you start working for yourself, your workload includes everything that you might need to do to make your business a success – from marketing and advertising to admin and ordering stationery. You may find that managing your finances is more complex than you might have expected as you will need to keep records of all the money you spend in the running of your business, as well as how much you earn. Many people decide to use the services of a professional accountancy firm like ours to help them through the process, but some decide to manage everything themselves. Either way, there are some simple things you can do to make the process as straightforward as possible, so here are my top five tips:

 

  • Get organised – compiling all your invoices and receipts ahead of time is the best way to alleviate last minute stress when it comes to self-assessment forms. Ideally, you’ll have kept some form of spreadsheet or an online portal up to date throughout the year of your accounts, and you can use that to finalise your tax return. But if that’s not the case, don’t wait until the very end of January to get started. There are often missing pieces of information you’ll need to track down, so give yourself plenty of time to work through everything. And don’t forget – if it’s your first time completing your Self-Assessment Tax Return, make sure you’re registered with HMRC in time.    

 

  • Know the key dates for completion – If you decide to complete your tax return online then the deadline for this is any point up until the 31st January, whereas a paper tax return needs to arrive with HMRC by the 31st October the previous year. If you haven’t sent an online tax return before then you will need to register and HMRC advises you to do this no less than 20 working days before the deadline.

 

  • Separate your work and personal bank account – a number of self-employed people operate with just one bank account for personal and business use, but this can make it hard to separate out your business expenses from your personal expenses. It’s often easier to identify which costs are related to your business by having a separate business bank account. This will not only help you keep a track of your business expenditure throughout the year, but it will make your life a lot easier when it comes to your tax return.
  • Know the expenses and tax reliefs that you can claim – if you are a sole trader, for example, make sure that you know the expenses that you can claim in your tax return, as there may be some items you might forget about such as business mileage and expenses relating to working from home. It’s also beneficial to know about other tax reliefs that you are entitled to such as personal pension and gift aid payments.

 

  • Tax returns can be complex so use an accountant – having professional support can be really beneficial because an accountant should not only assist with the compliance side of things (i.e. helping you to file your tax return on time) but they will also give you pro-active advice where appropriate.  Tax returns are something most accountancy practices deal with on a daily basis from April to January, alleviating a lot of the financial stress away from clients and helping them to focus on what they do best – making a success of their business.

 

Running your own business and managing the many tasks that come with it can often push your tax return submission to the bottom of your ever-growing pile of work to do – but help is always available from professionals with the right experience and knowledge of the latest legislation. You can find further information on completing your self-assessment tax return on the Nixon Williams website here.

Cash ManagementForeign Direct InvestmentPrivate FundsStock MarketsTransactional and Investment Banking

Can You Predict The Future Price of Bitcoin?

You can’t spend five minutes reading about cryptocurrencies without stumbling across at least one prediction for the future price of Bitcoin.

Across forums, social media, newsletters, blogs, news sites and every other corner of the internet — financial analysts, expert investors, bankers, tech icons, and new enthusiasts offer up their views.

Some cite careful analysis, some base it on past trends. While others are guessing or acting on their ‘intuition.’ Their predictions are varied, ranging from a plummet to zero, to millions.

With all this noise surrounding the Bitcoin price, you might be wondering whom to believe. Or if you should believe anyone at all. Is it possible to predict the future?

Investing begins with education, not buying. So it’s important to think about the information you base your buying decisions on.

How do people make price predictions?

There are two types of analysis used for predictions: fundamental and technical.

They’re used for everything from the stock market to Bitcoin. While other types of analysis do exist, these are the main ones.

Fundamental analysis

Fundamental analysis is all about intrinsic value. You look at the factors that give something value, then decide if it’s under or overvalued. Publicly traded companies release lots of information to help with this. So, for a stock you might look at a company’s:

  • Revenue (how much money it’s making)
  • Profit margins (how much of the revenue is profit)
  • Growth potential (how much money it could make in the future)
  • Management (how competent the people in charge are)

Some of these factors can be defined in numbers. Others come down to the judgement of the analyst.

For a cryptocurrency, you might look at its:

  • Price growth (how the price has grown over time)
  • Scalability (if it has the potential to keep growing)
  • Security (if the network is secure and safe from attacks

​Technical analysis

Technical analysis is different as it focuses on an asset’s price, not the asset itself. Maybe you’ve heard the phrase ‘past performance is not an indicator of future performance.’ But technical analysis bases future predictions on the past. This can be based on a short time frame (hours or even minutes) or long (months or years.)

To do this, you look for patterns and trends in price charts, such as:

  • The average price over a chosen time span
  • The price at which a lot of investors start buying
  • The price at which a lot of investors start selling
  • The overall price trend

Do fundamental and technical analyses work?

There’s no straightforward answer to that question. Both techniques can be useful, but they also have their limitations for cryptocurrencies.

Fundamental analysis works when investors base their decisions on fundamentals. This isn’t always the case for Bitcoin. Many investors base their decisions on the decisions they expect others to make.

Technical analysis assumes that a market follows rational rules and patterns. It’s less useful for cryptocurrencies because the market is still young. There isn’t as much past data to analyse. Cryptocurrencies also have less liquidity than something like stocks.

Self-defeating and self-fulfilling prophecies

When we talk about price predictions, we run into an important concept: self-defeating and self-fulfilling prophecies.

Making a prediction about the future can end up changing what actually happens.

The prediction about the future creates the future.

This isn’t the case when we talk about a system like the weather because we can’t change it.

But when you make predictions for a system involving people, it’s different.

Hearing predictions can cause people to change their behaviour.

Sometimes this happens in a way that prevents the prediction from coming true — a self-defeating prophecy — or it can cause the prediction to come true — a self-fulfilling prophecy.

Predictions about cryptocurrency prices have the power to influence how investors act. If it’s predicted the Bitcoin price will increase, this encourages more people to buy. This can drive up the price, and vice versa.

That brings us to incentives.

The issue of intentions

Incentives are what motivate people to do what they do. It’s an important concept in investing. Financial gain is a powerful driving force.

Most investors understandably want to do whatever will make them the most money. This can include making predictions that benefit them.

Let’s say you come across an article where the author claims Bitcoin will be worth $100,000 by December 1st 2019. Rather than taking that at face value, it’s important to ask: why are they saying this? If they know for certain, why don’t they put all their money into Bitcoin, and make a huge profit? Why are they sharing that information?

Likewise, if someone claims Bitcoin will drop, you might wonder why they’re saying that. If they know for certain, why don’t they keep quiet, short it, and make a big profit?

In both cases, we need to consider the underlying incentives.

If someone stands to profit from the Bitcoin price increasing, it’s natural they’ll predict it’s going to do that. They’re hoping this will turn into a self-fulfilling prophecy. If someone stands to benefit from it decreasing or to suffer if it increases, it’s not unexpected that they’ll predict it’s going to decrease.

Luck and probability

But if no one can predict the future, how come some people do make correct predictions?

Maybe you heard that your brother’s roommate’s cousin’s coworker’s uncle correctly predicted the price of Bitcoin. Or you’ve seen someone on Youtube who seems to always get it right.

The fact that no one can predict the future doesn’t mean no one can make correct predictions.

It comes down to luck, probabilities, and information asymmetries.

First, luck. Every day, thousands of people make predictions about Bitcoin prices. It’s inevitable that some of them will be correct by luck.

As they say, even a stopped clock is right twice a day. With so many people making predictions, it’s likely a percentage of them will be correct.

When professional forecasters make predictions, they usually base them on probabilities. What’s the most likely outcome? A weather forecaster might say it’s going to rain tomorrow because there’s a 62% probability. They don’t know it for sure. It’s just more likely than not.

Then there’s insider information. If you know something most investors don’t, you have a big advantage. For example, if you have insider information that Apple is about to release a new product, it’s reasonable to expect the stock will go up. But other investors buying Apple stock aren’t aware of that information, so they can’t predict it.

Insider information is less meaningful for cryptocurrencies. There’s a less direct link between fundamentals and prices. Events that seem like they should cause an increase or decrease can do the opposite or nothing.

Conclusion

The next time you look at a cryptocurrency price chart, imagine a crowd of people in a stadium, all moving at different times but appearing to create an organised rippling motion. Because that’s what you’re seeing: the combined actions of many people.

There’s no mystical, secret order to it. There’s just lots of people making decisions based on the information they receive.