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The Independent
a day ago
- Business
- The Independent
Sainsbury's investors eye sales as grocers step up focus on price cuts
Sainsbury's will be the latest supermarket to shed light on how its sales have fared in recent months as grocers battle to lure in squeezed shoppers amid rising food inflation. The UK's second largest supermarket chain will publish its first quarter trading update on Tuesday. It has not been immune to competition heating up among UK retailers in recent months, several of whom have come under pressure to cut prices to reel in consumers struggling with a higher cost of living. The shift has partly been sparked by Asda promising its biggest price cuts in 25 years while discounters Aldi and Lidl continue to take on larger rivals with low-cost products. Both Tesco and Sainsbury's have Aldi Price Match lines, offering hundreds of products price-matched to Aldi across stores. Sainsbury's recently said it had more products in the scheme than any other retailer with around 800 items from fresh and cupboard food to wine and toiletries. A group of analysts for AJ Bell pointed out that Sainsbury's shares were 'nudging toward their highest mark in a year, and they are not that far from their five-year Covid-inspired high either'. 'This suggests that fears of a supermarket price war, spearheaded perhaps by Asda, are yet to be realised,' they said. The analysts noted that recent data from the Office for National Statistics showed food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. Investors will be keen to see how the group's sales have fared in recent months, since reporting a 4.2% increase in full-year sales, excluding fuel, back in April. At the time, it predicted its profits to be flat in the year ahead as stronger sales volumes were expected to be offset by weaker profitability amid the investment in price cuts. This means that underlying profits should come in at about £1 billion for the year to the end of March 2026. Investors will also be watching out for any update to its annual forecast on Tuesday.
Telegraph
a day ago
- Business
- Telegraph
Taxpayers risk paying wrong capital gains bills because HMRC ‘can't cope' with changes
Taxpayers are at risk of paying the wrong capital gains tax because HMRC's systems cannot keep up with Rachel Reeves's policies, experts have warned. Ms Reeves, the Chancellor, increased both the lower rate of capital gains tax from 10pc to 18pc and the higher rate from 20pc to 24pc in October last year. She also cut reliefs for those disposing of businesses and for some investors, snubbing calls for rates to be completely equalised with income tax rates. Because the changes were introduced immediately, the rates paid by taxpayers for the 2024-2025 tax year depend on when the sale was made. For assets sold before the Budget, the old rates will apply. Any sales made after will have the new rates applied. But HMRC's online self-assessment tool to help taxpayers work out how much they owe cannot cope with the changes made by the Chancellor last year. This means taxpayers need to use an adjustment calculator to ensure they pay the right amount of capital gains tax. A note on HMRC's website states: ' The self assessment tax return will not automatically calculate at the new main rates for the 2024 to 2025 tax year. 'You may need to work out an adjustment to the tax automatically calculated.' But the changes mean that taxpayers are at risk of under or over paying capital gains tax if they apply the wrong rates, experts warned. Charlene Young, senior pensions and savings expert at AJ Bell, said: 'The mid-year change means some people filing self-assessment tax returns for 2024/25 risk under-reporting and underpaying any tax they owe. 'That's because HMRC's tax software can't cope with different tax rates across a tax year and will simply apply the rates in force before Oct 30 to all chargeable gains on investments like shares or investment funds.' Mike Warburton, a tax expert, said: 'The broader point here is that the legislation in this country is far, far too complicated, and it's been made worse every time they change it. 'I'm not surprised that it is wrong. It's almost inevitable.' For example, a taxpayer with an annual income of £52,000 who made a gain of £8,000 when they sold some shares last November, would owe 24pc on the £5,000 over their £3,000 tax-free allowance. This would equate to £1,200 – as opposed to £1,000 under the old rates. HMRC's adjustment calculator would give an adjustment of £200, which is the difference between the rates. Capital gains tax is paid on the profit made when an individual sells an asset they own – such as a second home or shares – above the £3,000 annual allowance. The levy raised £13.1bn in 2024-2025, the latest government figures show, down 23pc from a high of £16.9bn in 2022-2023.
The Guardian
2 days ago
- Business
- The Guardian
Number of higher-rate UK taxpayers expected to hit more than 7m this year
The number of people in the UK paying income tax at the higher rate is expected to increase by 500,000 this tax year, to more than 7 million, according to official figures. Income tax thresholds used to rise in line with inflation but have been frozen at the same level since 2021, a move announced by the then-chancellor, Rishi Sunak. In the 2021-22, 4.4 million people paid tax of 40% on some of their income, the data from HM Revenue & Customs shows. Over the same period the number of people of state pension age paying some income tax has risen by almost 2 million. The freeze on tax thresholds, which was extended until 2028 by the former chancellor Jeremy Hunt, has meant that as wages and pensions have been increased to help people cope with inflation, more have moved into a higher tax bracket - a phenomenon known as fiscal drag. The threshold for the personal allowance – the sum you can earn each year before paying income tax – is set at £12,570. HMRC's figures show there are expected to be 39.1 million people earning above that in the current tax year, with the majority – 30.4 million – paying tax at the basic rate of 20%. The full new state pension now adds up to £11,973 a year, and there are expected to be 8.7 million people of state pension age paying income tax in 2025-26. Laura Suter, thw director of personal finance at the investment platform AJ Bell, said: 'Everyone is caught by frozen tax thresholds, including pensioners and anyone with earnings above the £12,570 personal allowance threshold. However, it is those who drift into higher tax bands as a consequence who feel the most pain.' Thresholds are different in Scotland, but in the rest of the UK, 'once you move over the £50,270 mark, your next pound of earnings is hit with a 40p deduction, rather than the 20p paid by basic-rate taxpayers, meaning you see much less of any salary increases in your payslip at the end of the month', Suter said. 'They now account for almost a fifth of all taxpayers, illustrating that the higher rate of tax, once reserved for those on healthy salaries, is now pretty commonplace.' A government spokesperson said: 'This government inherited the previous government's policy of frozen tax thresholds.' 'At the budget and the spring statement, the chancellor, Rachel Reeves, announced that she would not extend that freeze. We are also protecting payslips for working people by keeping our promise to not raise the basic, higher or additional rates of income tax, employee national insurance or VAT.'
Canada Standard
4 days ago
- Business
- Canada Standard
Oil slides, stocks jump amid Iran-Israel ceasefire uncertainty
Oil prices sank and stock markets jumped Tuesday, even as uncertainty reined over a Israel-Iran ceasefire. In volatile trading, crude futures slumped more than five percent after US PresidentDonald Trump's declaration of aceasefire. The oil market went on to reduce its losses, however, asIsrael and Iranaccused each other of breaking the ceasefire -- news confirmed by Trump. The president berated the two sides, adding that he was "really unhappy" withIsraelin particular. Despite tensions igniting once more, oil prices were still down more than three percent by early afternoon trading inEurope. "Investors are reacting with relief to apparent news of a US-brokered ceasefire betweenIranand Israel," noted AJ Bell investment director Russ Mould. "Gold slipped back as its safe haven attributes were less in demand," Mould said, adding that the news weighed on share prices of oil producers and miners. The dollar retreated against main rivals after Trump once more demanded that the USFederal Reservecut interest rates in a bid to boost the world's biggest economy. Escalating tensions in the Middle East has removed some focus from Trump's tariffs war, which threatens to dampen global economic growth. InGermany, where the DAX stocks index rallied 1.9 percent, ChancellorFriedrich Merzurged Iran and Israel to follow the ceasefire announced by Trump. "We call on both Iran and Israel to heed this call from the American president," Merz told parliament. "If this ceasefire succeeds... then it will be a very positive development that can make theMiddle Eastand the world safer." French PresidentEmmanuel Macronsaid Tuesday that the situation surrounding Iran remained "volatile and unstable". There are fears that Iran could shut theStrait of Hormuz, a chokepoint for about one-fifth of the world's oil supply. Rystad Energy analyst Jorge Leon told AFP that he believed the risk of the waterway shutting had diminished despite Iran launching missiles at a US base inQatarin retaliation for American strikes on Tehran's nuclear facilities. Trump dismissed the attack as "very weak", and said Iran gave "early notice", adding no one was hurt or killed. "I think the risk of closing Hormuz now has diminished rapidly because US and Iranian tension is already over," Leon argued. "I think it's more about what happens just between Israel and Iran." Key figures at around 1115 GMT WestTexasIntermediate: DOWN 3.1 percent at $66.38 per barrel Brent North Sea Crude: DOWN 3.2 percent at $68.30 per barrel London- FTSE 100: UP 0.3 percent at 8,786.54 points Paris- CAC 40: UP 1.2 percent at 7,625.70 Frankfurt - DAX: UP 1.8 percent at 23,686.87 Tokyo -Nikkei225: UP 1.1 percent at 38,790.56 (close) Hong Kong- Hang Seng Index: UP 2.1 percent at 24,177.07 (close) Shanghai - Composite: UP 1.2 percent at 3,420.57 (close) New York- Dow: UP 0.9 percent at 42,581.78 (close) Euro/dollar: UP at $1.1596 from $1.1581 on Monday Pound/dollar: UP at $1.3606 from $1.3526 Dollar/yen: DOWN at 145.06 yen from 146.12 yen Euro/pound: DOWN at 85.22 pence from 85.60 pence (FRANCE 24 with AFP) Originally published on France24
Yahoo
4 days ago
- Business
- Yahoo
Oil prices tumble and stock futures rise on Iran and Israel cease-fire news
Oil prices are tumbling on news of an Israel-Iran cease-fire agreement. Oil prices were already falling after Iran launched strikes on a US airbase in Qatar. Markets saw Iran's strikes as a de-escalatory move as Tehran did not target the Strait of Hormuz. Oil prices are down sharply while stocks are up on Tuesday after Middle East tensions lessened. President Donald Trump said Israel and Iran have agreed to a "complete and total" cease-fire and, early Tuesday morning, Israel agreed. In a statement, Israel said it had "achieved the objectives of the operation." Hours before this, Iran's foreign minister posted on X that there was no cease-fire agreement — but that if Israel stopped attacking Iran, Iran would not engage further. Benchmark US West Texas Intermediate oil futures were down 3.2% to $66.30 a barrel at 6:10 a.m. ET, while international Brent crude oil futures were 3.4% lower at $69.08 a barrel. Oil prices have now reversed gains from June 12, a day before Israel struck Iran. US stock futures were higher at 6.10 a.m. ET: S&P futures: up 0.87% at 6,129.75 Dow futures: up 0.76% at 43,231.00 Nasdaq futures: up 1.1% at 22,317.00 Oil prices were already falling after Iran's retaliatory strikes on a US airbase in Qatar on Monday, following the American forces' strikes on three Iranian nuclear sites on Sunday. Though Iran targeted US military assets, markets are relieved that Iran did not target the Strait of Hormuz, a key shipping route for the global oil and gas trade, wrote analysts at Rystad Energy, a research and intelligence firm. Tehran's strikes on US airbase in Qatar signaled "a possible desire from Iran to de-escalate by inflicting minimal damage to US infrastructure in the region," wrote the analysts. Qatar said Iranian missiles were intercepted. US officials said there were no reports of casualties. The energy markets are now focused on developments in the Strait of Hormuz, where a quarter of seaborne oil and a fifth of global liquefied natural gas trade passes. If the Hormuz is affected and closes, the markets may turn again. "The waterway handles significant volumes for global markets and its importance cannot be understated," added Janiv Shah, a vice president of oil markets analysis at Rystad Energy. In an earlier Truth Social post, Trump described Iran's retaliatory attack as a "very weak response," and thanked Tehran for giving the US early notice of the strikes. AJ Bell investment director Russ Mould wrote in a note on Tuesday that markets "will be watching closely to see if the cessation in hostilities is maintained and for Iran's next move." "There are still outstanding questions, from whether a ceasefire will hold given that mutual strikes had continued overnight, to the future of what remains of Iran's nuclear programme," analysts at Deutsche Bank said in a blog on Tuesday. "But as things stand, the past 12 days look set to join the long list of geopolitical shocks that proved temporarily disruptive but had little lasting effect on markets," they added. Read the original article on Business Insider
