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Andrea Orcel, the ambitious UniCredit chief eyeing his next deal

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Back in the 1980s, Andrea Orcel’s university thesis was about hostile takeovers. Almost four decades later, the ambitious UniCredit chief finds himself at the heart of the biggest European banking drama in years — taking on the German government in what could be the first big cross-border banking deal in Europe since the financial crisis.

This week the Milanese lender raised its stake in rival Commerzbank to 21 per cent, pending approval from the European Central Bank. This would make UniCredit the largest shareholder, overtaking the German government. German Chancellor Olaf Scholz has called the stake-building “unfriendly” and “hostile” but Orcel has said he had no plan to engage in a fist fight with Berlin.

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“Andrea isn’t naive, he’s a tactician and I think he’s well aware of what he’s doing . . . he knows exactly how he plans to reach his end goal . . . we may not know exactly, but he does,” says Alessandro Profumo, the former CEO of UniCredit.

Berlin’s refusal to negotiate has reportedly frustrated Orcel, who does not usually take no for an answer. Rising before dawn for his daily sports session, he has been working nonstop with bankers at Barclays and Bank of America to find a way through.

His devotion to the job, coupled with his ability to advise CEOs on near impossible deals, have built Orcel, 61, a reputation as both smart and ruthless. “Andrea is pragmatic and articulate . . . because he’s very demanding, people can feel he’s too demanding . . . but what he asks from others he asks from himself,” says Andrew Gazitua, the former chief operating officer of investment banking at Merrill Lynch, where Orcel cut his teeth. He can also be down to earth — he goes by his first name in a country where many CEOs demand more formality.

Raised in Rome where his mother worked for the UN and his Sicilian father ran a small leasing company, Orcel went to the prestigious Lycée Français Chateaubriand, home to the children of aristocrats and diplomats. While on holiday from Rome’s La Sapienza university, he decided he wanted to become a banker instead.

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After stints at Goldman Sachs and Boston Consulting Group, Orcel joined Merrill Lynch in 1992, where — after a 20-year streak of successful M&A deals including the €21bn merger of Italy’s Credito Italiano with UniCredito to create UniCredit — he was dubbed “the Cristiano Ronaldo of bankers”.

“He was extremely knowledgeable and always available, plus he built a network of personal relations that facilitated access to the decision makers,” says Profumo who helmed Credito Italiano at the time.

Along the way, Orcel, who was president of UBS from 2014 to 2018, struck up friendships with the likes of late Santander chair Emilio Botín — whom he advised on acquisitions that transformed the lender into a global banking group. But he also racked up enemies.

His relationship with the Botíns soured in 2018 when Santander withdrew its offer to make him CEO over pay. When Orcel launched a multimillion-euro lawsuit, the world of high finance thought he was crazy. But the courts ultimately awarded him €43.5mn. “He just does what he thinks is right even if it makes him look like an arse but he’ll always be accountable for his actions . . . I hate to say it but most of the time he’s right,” says a senior banker in London.

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One time he may have been wrong was when he advised on the disastrous acquisition of ABN Amro by RBS in 2007. He once told the FT that “with the benefit of hindsight we should have done things differently. I cannot help but feel responsibility for my role.”

His transformation of UniCredit, with the share price climbing almost 400 per cent since he joined in 2021, is his most important one yet. Securing the Commerzbank deal would earn him a lasting place in Europe’s financial firmament. Yet, German finance minister Christian Lindner told lawmakers this week that “in terms of their style and their communication, UniCredit’s actions didn’t contribute to strengthening the trust of the government”.

It is not the first time Orcel, who has little time for diplomacy, has locked horns with public institutions. In 2021, Mario Draghi’s government in Italy had hoped to sell Monte dei Paschi di Siena to UniCredit. The parties failed to clinch a deal and Orcel walked away. Since Vladimir Putin’s invasion of Ukraine in 2022, Orcel has also been at odds with the ECB on how to deal with UniCredit’s ongoing Russian presence. “Andrea is no politician, he’s a no bullshit guy,” says Davide Serra, founder of asset management firm Algebris, friend and longtime UniCredit investor. “Moral suasion doesn’t work with him . . . which is why those who don’t like him say he has a bad character.”

Commerzbank may well be worth the latest fight. Orcel’s preferred option, say insiders, would be to merge it with UniCredit’s existing German subsidiary HVB. At the right price, it would be hard for the Germans to refuse. This time, the Italian government also has his back.

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Orcel may be divisive — “he’s a bit like Marmite: either you hate him or you love him,” says Amir Hoveyda, who worked with him at Merrill Lynch and UBS. But he has once again managed to leave his counterparty’s weaknesses exposed. A master of game theory, his latest move will force a reckoning among regulators that have pushed for greater EU banking integration for years. As for those rivals who have long wondered if an Italian bank — even an enlarged one — will ultimately be enough for such an extraordinarily ambitious executive, they may not stop looking over their shoulders just yet.

silvia.borrelli@ft.com

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Exact date McDonald’s is launching new breakfast menu item that’s a twist on a classic

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Exact date McDonald’s is launching new breakfast menu item that’s a twist on a classic

MCDONALD’S is set to launch an all-new breakfast item in a matter of weeks.

The fast-food giant will soon start selling mini hashbrowns across its 1,300 plus sites in the UK.

McDonald's is set to launch an all-new breakfast item in a matter of weeks

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McDonald’s is set to launch an all-new breakfast item in a matter of weeks

They will be a twist on the usual full-sized savoury snacks already available on the breakfast menu.

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From October 16, foodies will be able to bag a five-pack of the mini hashbrowns costing £1.49.

If you’ve still got room for more, a 15-piece sharebox will set customers back £2.99.

While a single regular-size hashbrown costs £1.19.

But do remember that prices do vary from restaurant to restaurant so make sure you double check before you pay.

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It is not yet clear if the hashbrowns will become a permanent menu item, so if you want to give them a go you might want to be quick.

Back in 2022, the home of the Big Mac added mini potato waffles to its breakfast offering.

While they were a big hit with fans, with many saying they were better than hashbrowns, they weren’t around for long.

The mini hashbrowns will be joining a whole host of other breakfast items including the iconic McMuffins and Cheesy Bacon Flatbreads.

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Fans of the fast food chain will know that it usually updates its regular menu, which is served from 11am daily, every six weeks or so.

The Sun give the latest Mcdonald’s menu a taste test

But the breakfast menu doesn’t see much action by comparison.

The latest addition came in January this year, as exclusively revealed by The Sun when the popular Breakfast Wrap once again became available.

The beloved item was axed back in 2020 and fans had been crying out for it to come back.

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the Mighty McMuffin which first debuted in November 2022.

The stacked snack then made a return in March last year and has been on the menu ever since.

It comes with sausage, egg, double bacon, cheese, and ketchup or brown sauce.

What’s on the McDonald’s breakfast menu?

The full list of McDonald’s breakfast menu items includes:

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  • Mighty McMuffin – £ 5.19
  • Egg & Cheese McMuffin – £ 2.39
  • Breakfast Wrap – £ 4.99
  • Bacon Roll – £ 3.19
  • Breakfast Roll – £ 3.39
  • Cheesy Bacon Flatbread -£ 1.49
  • Bacon & Egg McMuffin -£ 2.79
  • Double Bacon & Egg McMuffin – £ 3.19
  • Sausage & Egg McMuffin – £ 2.79
  • Double Sausage & Egg McMuffin -£ 3.19
  • Muffin with Jam -£ 1.49
  • Hash Brown -£ 1.19
  • Pancakes & Syrup – £ 3.49
  • Pancakes & Sausage with Syrup -£ 3.99
  • Porridge -£ 1.99

However, it is important to note some of these menu items might not be available at your local McDonald’s.

McDonald’s serves breakfast every day until 11am.

It used to switch to the lunchtime menu at the earlier time of 10.30am, but bosses added an extra 30 minutes to the breakfast offering two years ago.

Restaurants that are normally open 24 hours a day start serving breakfast from 5am.

Every other restaurant kicks off the day with the breakfast menu at their normal opening times.

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You can find out where your nearest branch is and what time it opens using the store locator tool.

Other changes to the McDonald’s menu

News of a new menu item comes just one week after Maccies teased the return of its McRib.

A test notification for the boneless pork burger was sent out on the McDonald’s rewards app, sending customers into a frenzy.

When asked if the McRib is coming back, a spokesperson said: “McDonald’s is always looking to innovate with new and exciting menu items, as well as bringing back the fan favourites.

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“If you’re keen to be the first to receive more info from McDonald’s stay tuned.”

The McRib was first added to the main UK McDonald’s menu in 1981 but was taken off just four years later.

The burger, which comes with a boneless pork patty covered in barbecue sauce and topped with onions and pickles, has made temporary reappearances since.

What else is new at McDonald’s?

McDonald’s regularly shakes up its menu to make way for new items.

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Earlier this month, the fast food chain shook up its menu to coincide with the launch of McDonald’s monopoly. 

To participate in the game you must collect stickers that represent train stations or colour-coordinated streets. 

If you are curious about how the game works and what prizes you can win, read our article here. 

To mark the return of its sticker peeling game McDonald’s has brought back a number of fan favourites

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These include:

  • Mozzarella Dippers 
  • Philly Cheese Stack.
  • Chicken Big Mac, 
  • Galaxy Chocolate McFlurry 
  • Twix Chocolate McFlurry
  • Twix Latte 

If you are keen to try any of these new menu items you will need to act quickly as they are set to be pulled from restaurants in about three weeks.

McDonald’s Monopoly 2024

Everything you need to know…

How to save money at McDonald’s

Did you know that you can end up being charged more based just on the McDonald’s you choose to eat at? 

The Sun previously found that a Big Mac meal can be 30p cheaper at restaurants which are two miles away from each other. 

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Another way to cut back spending at McDonald’s is by ordering from the Savers menu or by taking advantage of its ‘3 for £3’ deal when it lands in stores. 

It is also worth bearing in mind that McDonald’s offers a discount on your next order if you fill out a survey online after visiting its stores. 

These can be found on the back of any receipt you get at McDonald’s.

All you need to know about McDonald’s

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HERE’S all the crucial information about McDonald’s you’ve always wanted to know…

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Lost Property, St Paul’s, London, review

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The hotel is round the corner from St Paul’s cathedral

Lost Property, part of Hilton’s fancy Curio Collection, has a very specific theme: the lost history of London.

Read on to find out more about the plush bedrooms and tasty grub.

The hotel is round the corner from St Paul’s cathedral

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The hotel is round the corner from St Paul’s cathedralCredit: Lost Property
The restaurant is a calm oasis away from the chaos of Ludgate Hill

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The restaurant is a calm oasis away from the chaos of Ludgate HillCredit: Lost Property

Where is Lost Property hotel?

Round the corner from St Paul’s cathedral and on the busy street of Ludgate Hill, Lost Property is in a central spot in London.

City Thameslink train station is a two-minute stroll away and St. Paul’s underground station is a five-minute walk away.

What is Lost Property hotel like?

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You may not even notice the image of Winston Churchill or the inspiring quotes subtly emblazoned on the wall in reception, but take a closer look at and you’ll find little treasures hidden all over this 145-bedroom hotel.

Check your drinks coaster in the bar – each one is printed with the definition of a lost word which has been removed from the English dictionary.

If you haven’t visited the capital before, ask for a room with views of the impressive St. Paul’s cathedral, an historic London landmark.

What is there to do at Lost Property hotel?

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For those that fancy a workout, there’s a very nice gym with Peloton bikes and treadmills which sit under large windows in the ceiling so you can soak up the natural light while you cycle.

Make sure to pick up a coffee before you head out for the day as you’ll struggle to find a better one in London – it’s the only hotel to have partnered with Monmouth coffee, a high-quality London roaster.

The hotel is a short stroll from some top tourist attractions like the Tate Modern (15-minutes walk), the London Eye (30-minutes walk) and Somerset House (18-minutes walk).

What is there to eat and drink at Lost Property hotel?

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The restaurant is a calm oasis away from the chaos of Ludgate Hill on its doorstep and the talented mixologists behind the bar can whip you up any tipple, even if it’s not on the menu.

I requested “something tequila-based” and was handed an elegant coupe filled with a delicious citrus-y, sour cocktail that packed a punch.

The food is much like the rest of the hotel: decent-quality, with added elegance.

My buttery pan-fried fillet of sea bass, for example, came with leeks and potatoes, as well as a Champagne velouté and caviar for that extra pizazz.

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What are the rooms like at Lost Property hotel?

Rooms have been created with busy travellers in mind, although glamour hasn’t been forgotten about.

USB ports by the bed and wardrobes with enough space and hangers are convenient, while the sleek furnishings and marble-top surfaces elevate rooms to a luxury level.

The only major difference between rooms is the size, so if you aren’t staying long, go for the standard Queen Guest Room.

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How much is Lost Property hotel?

Rooms cost from £209 per night.

Click here to book.

Is Lost Property hotel family friendly?

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Although kids would be well looked after here, there may be some other hotels more suited to families.

Is there access for guests with disabilities?

Yes, there are spacious accessible rooms with roll-in showers.

The restaurant is on the ground floor and there are toilets for wheelchair users.

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Looking for a place to stay? For more hotel inspiration click here.

The only major difference between rooms is the size

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The only major difference between rooms is the sizeCredit: Lost Property

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‘I don’t really like the word “designer”’

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Michael Marriott’s east London studio is a wonderful mess. It’s rammed with tools, boxes, stools, signs, books and designs, prototypes of his own furniture and products and those of friends, piled all around with fascinating things. This is not one of those self-consciously showroom studios, more for effect than process, but rather a place of real ideas and work.

The designer, a dependable and much-loved fixture of London’s scene for the past three decades, makes me a strong coffee. I notice, halfway through our conversation, that the mug says The Tool Appreciation Society. “I love tools,” Marriott says. “They’re perfect objects, partly because they haven’t been tampered with by designers. They’ve evolved through use and they relate very closely to the human body, the way in which they fit in the hand.” We spend a happy few minutes talking about hammers.

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His comment on the (lack of) design of tools is revealing. “I don’t really like the word ‘designer’,” he says. “Design means lots of things. Designer fashion or jeans, sometimes it’s just a colour scheme. I’m slightly ashamed to be a designer. We’re caught up in the world’s problems: overproduction, over-marketing. On the one hand I feel I should just stop. So I try to do things in a way that causes as little harm as possible. Design should be about solving problems but it becomes part of the problem, which is overconsumption.”

A workshop with grey floor and strip lighting is filled floor-to-ceiling with tools, material and objects, from screwdrivers and saws, to stacks of pieces of wood, chair frames and a garden gnome
The designer’s studio is chock-full of tools, books, found objects and his own furniture and product designs © Ned Collyer

Marriott’s designs are often modest. They employ found objects or involve a small adaptation of an existing product, items which are useful and economical but also intelligent, sometimes wryly commenting on the broader world of design through small gestures. There are candlesticks and doorknockers made in the image of hex wrenches, for instance, a clock face made from old cardboard boxes, a lampshade made from a plastic bucket or a bottle-opener made from broken bicycle rims.

Of course, there are more conventional designs too, for furniture or shelving, the latter including his popular Croquet range, with brackets inspired by croquet hoops, but also his Olá café chair, a version of the bentwood Thonet classic. These he used in the designs for Bloomsbury’s Café Deco, a lovely space which manages to blend the proletarian-utilitarian style of a London caff with the bourgeois sophistication of a continental café.

In a room with white walls and pine floorboards a small table has a central column in eye-popping fluorescent pink. On its top is a lime-green vase filled with flowers
Marriott’s Zurito side table is made of oak and lacquered birch ply © Michael Marriott

He has a nice sideline in shop fittings (as at Leila’s in Shoreditch). “When I started out, I thought I was a furniture designer, and I think I am, by philosophy, but I like to do what I can using as little material as possible, making things that are reduced.” He has also become known for installation and exhibition design, where “you’re working with a curator and a graphic designer, so you’re not just making shapes but working with a cultural context too. And there’s also a fee . . . ”

What there often isn’t is a place to sell some of the more eclectic or eccentric designs: the smaller, quirkier things. Marriott addressed that with his online shop WoodMetalPlastic.

“That’s what these things I do are made of. At first we were just selling pieces like the Ernö hook [a tough, injection-moulded double wall hook] but then we started with other pieces like this camping tin-opener from Spain which was old stock; the manufacturer closed down in the 1960s, so these were probably the last of these things in the world.” There are also plenty of other wonderful, everyday, simple things: plastic bowls, brushes, lemon squeezers, brightly coloured but unselfconscious. And also inexpensive. This is not the world of Milanese high design but of good things made accessible. (I like the Kex cabinet handles adapted from brass radiator keys, £5.95 each, designed by Kitty Hiscox.)

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The bright-orange double hook is shown in close-up on a well-worn wooden door, holding a work jacket in primary blue and a white shirt on a coat hanger
The Ernö coat hook is injection-moulded in Zytel, a nylon-based polymer © Michael Marriott

For a long time Marriott taught at London’s Royal College of Art, where he studied, and his impact has been felt widely. He has always provided the antidote to the starry designers of self-conscious icons, the jet-setting names who think their work blurs boundaries between design and art and see their statement sofas sell for big money at auctions. But when I ask him about his effect on the London design scene, he modestly demurs. “I don’t see it myself,” he says, “but I have been told by others.”

In fact, he is very much a London designer. “I was born here,” he says, “and though I grew up in the suburbs [Dartford, Kent], I came back as soon as I could and have been here ever since.” There is something about his wit, the slightly sly take on the culture of consumption which he so successfully subverts with his designs, that has a hint of London’s ad hoc, almost punkish spirit. His shop had a presence during Milan’s Salone del Mobile this year, a lively storefront which was one of the sprawling event’s highlights (partly by being everything the design industry at large is not).

A man wearing black-rimmed glasses, a blue shirt and jeans sits at table in a kitchen with yellow walls, pointing at a ceiling light made out of an ironing-board frame
‘I like to do what I can using as little material as possible,’ says Marriott © Ned Collyer

I pick up a pepper grinder from the table, a thing that was hiding behind my mug. It has a head shaped like a nut. “I know, the world doesn’t really need another pepper grinder,” he says, “but I’m more interested in how these things sit in a landscape of objects. How does it speak to the other objects on the table?” I look at the things around it: another mug, an Opinel knife, a handwoven basket, a book, a bent-metal oil and vinegar set-holder. Some are his designs, others he sells in his shop, others still are the workmanlike, useful objects he loves and lives with. It seems to me like they’re all having a pretty convivial conversation, at least as much as objects can.

michaelmarriott.com

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One-week warning for anyone with a side hustle to act to avoid £100 fine

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One-week warning for anyone with a side hustle to act to avoid £100 fine

IF you earned more than £1,000 in the last tax year from your side hustles, you need to register for self-assessment.

If you miss the October 5 deadline for registration and then fail to send in a tax return on time, you’ll likely face a fine.

Read on to find out how you can avoid an £100 fine

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Read on to find out how you can avoid an £100 fineCredit: Getty

A side-hustle is something you do to earn extra income, such as selling things online, doing freelance work alongside your normal job, or making money from tasks like pet-sitting, dog walking, or babysitting.

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How much you earn is important. If you make less than £1000 in a tax year from your hustle, it doesn’t count as taxable income, and you don’t have to declare it.

But, once you start making more than this, you need to register as self-employed and start paying tax on the money earned over this amount.

The threshold is based on your profit after deductible expenses. For instance, if you were making and selling jewellery, you can deduct the money you spent buying materials from how much you earned in total.

You only need to file and pay tax if your remaining profits are more than £1,000 for the year.

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You also need to register if any of the following applied in the past year:

  • you were a sole trader
  • you were a partner in a business partnership
  • you had a total taxable income of more than £150,000
  • you had to pay Capital Gains Tax when you sold or ‘disposed of’ something that increased in value
  • you had to pay the High Income Child Benefit Charge

You might also need to register and send in a tax return if you have untaxed income, such as:

  • money from renting out a property
  • tips and commission
  • income from savings, investments and dividends
  • foreign income

And there are some scenarios where you don’t need to send in a return, but might choose to anyway. For instance, if you want to:

  • claim some Income Tax reliefs
  • prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance
  • pay voluntary National Insurance contributions

You can check if you need to do self-assessment with the Government’s online tool.

The deadline for registering is October 5. There’s no penalty for registering after this, but if you haven’t signed up, filed your tax return, and paid your bill by January 31 you will be fined.

If you do miss the October 5 deadline, you should sign up as soon as possible. This means you’ll be set up and able to file your return in time.

I was FINED £500 for leaving an Ikea cabinet outside my home for someone to take for free – I was shaking and panicking

There are two key deadlines for actually submitting the return. If you want to file a paper return, it needs to be in by October 31. If you’re submitting online, you have until January 31.

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If you miss the deadline for filing, you face an immediate £100 fine. If your return is more than three months late, you’ll then have to pay an additional £10 a day for a maximum of 90 days.

If you’re more than six months late, you pay a fine worth 5% of your total tax bill – or £300, whichever is higher – and then if you’re 12 months late you’ll have another fine worth the higher of 5% or £300.

You also need to pay everything you owe by January 31, or you’ll also face a late payment fine.

If you’re more than 30 days late, you need to pay 5% of the tax due as a fine.

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If you’re six months late you pay another fine worth 5% of the tax outstanding and then the same again at 12 months.

HMRC charge interest on late tax payments. The interest is charged from the date the payment became due until the date of payment and is added automatically.

There is a helpful calculator on the gov.uk website that you can use to calculate what your late payment fees will be, if you miss the deadline.

You can challenge any penalties if you have a reasonable excuse. You usually have 30 days from the date your penalty was issued to contact HMRC or make an appeal. If you miss the deadline, you’ll need to give a reason.

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The taxman says examples of reasonable excuses include:

  • your partner or another close relative died shortly before the tax return or payment deadline
  • you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
  • you had a serious or life-threatening illness
  • your computer or software failed while you were preparing your online return
  • issues with HM Revenue and Customs (HMRC) online services
  • a fire, flood or theft prevented you from completing your tax return
  • postal delays that you could not have predicted
  • delays related to a disability or mental illness you have
  • you were unaware of or misunderstood your legal obligation
  • you relied on someone else to send your return, and they did not

Whatever the reason, you must send your return or payment as soon as you can.

Who needs to fill out a self-assessment tax return?

YOU’LL need to submit a tax return if any of the following applied to you in the 2022/2023 tax year:

  • You were self-employed and your income was more than £1,000
  • You had multiple sources of income over £1,000
  • You earned £10,000 or more before tax from savings, investments, shares or dividends
  • You claimed Child Benefit when you or your partner earned more than £50,000 a year.
  • You earned more than £2,500 from renting out property, or from other untaxed income, such as tips or commission
  • You earned more than £100,000 in taxable income
  • You earned income from abroad or lived abroad and had a UK income
  • You need to pay capital gains tax
  • You received income from a trust
  • Your state pension was more than your personal allowance and was your only source of income (unless you started getting your pension on or after 6 April 2016)
  • HMRC has told you that you didn’t pay enough tax last year (and you haven’t already paid up through your tax code or via voluntary payments)
  • You filed a self-assessment tax return for the 2021/22 tax year (even if you didn’t owe any tax)
  • You were self-employed and earning less than £1,000 but you still want to pay ‘class 2’ national insurance contributions voluntarily to protect your entitlement to the state pension and certain benefits

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A big bet on basketball

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This article is an online version of our Scoreboard newsletter. Premium subscribers can sign up here to get the newsletter delievered every Saturday. Standard subscribers can upgrade to Premium here, or explore all FT newsletters

Good morning from Gotham, where New Yorkers are definitely sleeping in after the craziest week of the year, between the gridlocking mayhem of the UN General Assembly and the indictment of our mayor. It was into this chaos that Reddit co-founder Alexis Ohanian launched the inaugural Athlos women’s-only athletics meeting, the first of a deluge of new track meets attracting big money in a shake-up for the sport, whose plans we wrote about last month.

But after talking the talk, could Athlos . . . run the race? Thursday’s meet was absolutely unlike any other track meet, at least in the US. With a red carpet for athlete walk-ins and celebrity attendees like Flavor Flav, VIP lounges directly on the track, and DJ D-Nice spinning tracks between events, the capacity crowd at Icahn Stadium was certainly treated to an event.

Competitors raved about the experience and 100-metre winner Marie-Josée Ta Lou-Smith, 35, told Scoreboard that she contemplated retirement before Athlos popped up with a $60,000 check for first place. The meet was not without its wobbles — new Olympic champion Masai Russell filed a protest in the 100 metre hurdles after she said officials didn’t register a false start — but Ohanian ultimately delivered on a promise to build something different. The question now is whether audiences and sponsors keep it growing. 

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For now, we have dispatches on private equity’s newest sports target and a look at the dour financial picture for English rugby. Do read on — Sara Germano, US sports business correspondent

Send us tips and feedback at scoreboard@ft.com. Not already receiving the email newsletter? Sign up here. For everyone else, let’s go.

Private equity battles over European basketball

Exclusive: BC Partners in talks to buy EuroLeague stake © AFP via Getty Images

Private equity is circling sports, that much we know. But why is Europe’s pre-eminent basketball competition attracting so much interest from investors? 

As revealed by the FT this week, London-based BC Partners has entered exclusive talks to buy a minority stake in EuroLeague’s commercial business at a €1bn valuation. To get to that stage, BC saw off competition from rival firm General Atlantic and SURJ Sports Investment, a subsidiary of Saudi Arabia’s sovereign wealth fund.

While basketball has a huge global following, the popularity of EuroLeague pales in comparison to North America’s National Basketball Association. So what’s the appeal?

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Europe has certainly emerged as a hotbed for basketball talent. Just look at French centre Victor Wembanyama, now starring for the San Antonio Spurs in the NBA. And he’s not a one-off. Nikola Jokic, the Serbian three-time NBA most valuable player, and two-time MVP Giannis Antetokounmpo both began their professional careers playing for European teams.

EuroLeague itself has been gaining traction too. The competition’s television audience increased 27 per cent year on year in the 2023-24 season, bolstered by interest in Turkey, Serbia, Greece, Spain, Lithuania and Italy. User numbers for its online streaming platform rose 46 per cent to 85,000. BC Partners would bring deep experience of media rights, via its ownership of broadcaster United Group.

There is scope to grow in other ways too. Attracting more clubs from northern Europe, such as the UK, and expanding in the Middle East could help to increase commercial revenues and reduce reliance on southern Europe.

The league is already home to some well-known sporting names. Real Madrid (yes, that one) has been the dominant team, but faces competition from other big clubs, including Bayern Munich, Barcelona and Olympiacos. Such heavyweights provide the foundation for a wider fan base.

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But does a deal make sense for the sport? After all, the firm’s bid comes at a time when private equity’s involvement in sport is under increased scrutiny. 

If a deal does go ahead, EuroLeague would do well to take heed of how the Spanish football league approached its investment from CVC Capital Partners. In short, La Liga’s deal was structured to encourage clubs to put money into stadium infrastructure instead of blowing it all on players.

Private investment and European basketball don’t always mix well. British Basketball League, which operated the professional game in the UK, had its licence terminated earlier this year due to financial difficulties stemming from an investment by Miami-based 777 Partners in 2021. Last night saw the debut of Super League Basketball, its replacement.

Professional basketball outside the US is still small enough that taking the wrong path once can lead to existential questions. Investors clearly see something in European basketball. For the sport itself, there’s a lot on the line.

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English rugby union’s financial woes laid bare

Trouble ahead: rugby clubs told to cut costs © Getty Images

In a telling sign of how bad things have got in rugby union, the first annual assessment of its finances was unveiled this week by a firm of insolvency experts.

Leonard Curtis, which specialises in corporate restructuring, released its inaugural Rugby Finance Report, a publication modelled loosely on Deloitte’s Football Money League. It made for sober reading.

Among the key findings was that seven of the 10 clubs in the Premiership — the top tier of English rugby union — are now “balance sheet insolvent”, meaning they are reliant on rich owners putting in money to keep them going. None of the teams made a profit in 2022/23, while combined debts reached £311.5mn. Losses across the 10 clubs hit £30.5mn, and TV revenue fell. The report did not point to any positive catalysts for improvement on the horizon.

The gloomy picture shows that the £200mn investment by CVC Capital Partners in 2019 has so far failed to alter the trajectory of English rugby union’s top clubs. That money effectively became a bailout due to the financial hit of the pandemic. And even so, three top tier clubs have since collapsed.

The authors of the report offered one simple short-term fix to keep the game afloat: slash wage bills. If clubs can stop haemorrhaging cash, they argued, it would provide a bit of breathing space to carry out more drastic reforms. Fears that dropping pay would cause an exodus of talent to other countries were overblown, they argued.

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Potential longer-term solutions for rugby require increasing revenue. The game needs a larger, younger audience both to fill seats and to drive the value of broadcast rights. To do that rugby may need to consider some major surgery both on and off the pitch to make it quicker, easier to understand and more entertaining.

James Haskell, the former England international who wrote the foreword to the report, warned that the time for taking action was running out. Efforts to fix the game’s problems so far were like “rearranging the deckchairs” on a sinking ship.

“The next 18 months are going to be the most important for rugby”, he said. “We’ve got to change or we’re going to be stuffed.”

Highlights

Done deal: Everton sold to US billionaire Dan Friedkin © Getty Images
  • US billionaire Dan Friedkin has agreed a deal to buy Premier League club Everton, two months after an earlier attempt to buy the team collapsed.

  • Italian football club AC Milan is in talks with the government of the Democratic Republic of Congo over a multimillion euro sponsorship deal to promote the war-torn country as a tourist destination.

  • The German football league will re-auction a package of live games for its next rights cycle due to start in the 2025/26 season after a court partially upheld a lawsuit from broadcaster DAZN, who challenged the result of the previous auction.

  • Flutter, which owns bookmakers Fan Duel and Paddy Power, predicts its profit will double by 2027 due to the booming US sports betting market.

Business of football: the big data arms race

A technological revolution is under way in football, as team owners turn to the latest data analytics and AI to gain a competitive edge in the battle for talent. As more professional investors buy into the sport and rules on spending get tighter, future champions will increasingly be created away from the pitch by teams of software engineers. Watch the latest instalment of our Scoreboard video series.

Final Whistle

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Less than two years after suffering a devastating cardiac arrest on the field, Damar Hamlin of the Buffalo Bills notched a career-first interception in Monday night’s victory over the Jacksonville Jaguars. While Hamlin, 26, returned to the gridiron for the 2023 season in a reserve position, he regained his starter status this month and punctuated his full recovery by picking off a pass from Jaguars’ quarterback Trevor Lawrence. Bills Mafia could not be more thrilled.

Scoreboard is written by Josh Noble, Samuel Agini and Arash Massoudi in London, Sara Germano, James Fontanella-Khan, and Anna Nicolaou in New York, with contributions from the team that produce the Due Diligence newsletter, the FT’s global network of correspondents and data visualisation team

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Thousands of households must act NOW or miss out on £200 free cash for energy and grocery bills

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Thousands of households must act NOW or miss out on £200 free cash for energy and grocery bills

THOUSANDS of households have been warned to act now to receive £200 of free cash to help with energy and shopping bills.

A cost-of-living support scheme has now been extended for the sixth time, but Brits must get their applications in quickly to benefit.

Thousands of households have just days left to apply for the Household Support Fund

1

Thousands of households have just days left to apply for the Household Support FundCredit: Getty

The Household Support Fund (HSF) was set up by the Government back in 2021 to help those struggling with rapidly rising inflation.

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At the peak of the crisis, the average household’s annual energy bill under the Ofgem price cap rose to over £4,000.

The fund was originally set to run out after about six months, but it has been refreshed in every Budget since then.

The latest round of cash will see the end of the scheme pushed back from next week to Spring 2025.

An extra £421 million is being added to the pot between October 2024 and April 2025.

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Funding comes from the Department for Work and Pensions, but the HSF is administered and distributed by local councils.

This means that each area has its own deadlines and criteria to access the money.

Thousands of households under the umbrella of Birmingham City Council have just days left to get their claims submitted.

Those eligible can receive up to £200, which can be put towards food or energy bills, as well as costs for “essential goods” like water.

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Applications can be submitted by filling out the Hardship Grant Community Fund expression of interest form on the council’s website or by calling 0121 634 7100.

Martin Lewis issues warning to millions of households missing out on Council Tax support

In order to qualify you must:

  • Be a Birmingham resident
  • Be experiencing “financial hardship” in relation to essential costs
  • Not have received a £200 grant payment in the past 12 months

You may also be required to submit proof of address and benefits if you are receiving them.

However, HSF payments do not affect your eligibility for means-tested benefits and Universal Credit.

The council also confirmed that the funding would not be affected by the Section 114 notice, which declared it effectively bankrupt.

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Once you have submitted the form, the council will assess your application and email you about next steps.

Applications close on Monday September 30.

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