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BP said its third-quarter earnings would be lower than expected when it reports at the end of October, on weak margins at its refineries, lower output from its oilfields and higher exploration write-offs.

Giacomo Romeo, an analyst at Jefferies, said he expected consensus earnings would now be about 10 per cent lower than the $2.3bn previously forecast.

BP said it had taken hits of up to $1.1bn across its businesses and that net debt would be higher than expected, partly because some of its divestment proceeds would fall into the subsequent quarter.

The oil major’s share price has lagged behind its peers and is down more than 12 per cent in the year to date.

This is a developing story

THOUSANDS of taxpayers have been warned not to miss a fast-approaching HMRC deadline or they could face fines of £100.

There are just three weeks left to submit a paper self-assessment tax return with the final cut-off point on October 31.

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The assessment is used by the government body to collect income tax.

This tax is usually deducted automatically from people’s wages, pensions and savings.

However, people and businesses with extra income must report it in a tax return.

Many people choose to complete this process online through the HMRC website as the online deadline is not until January 31, 2025.

But if you want to submit your tax return via the post you must complete it by October 31.

In some instances submitting a physical tax return is your only option, especially if you need to fill in the foreign income and gains, or the trust and estate pages.

This is because these forms are not available online.

If you sell clothes or other items on websites such as eBay or Vinted you might want to make note of the date.

That is because since the beginning of 2024, firms like Vinted have to pass on customer data to HMRC if a user sells 30 or more items, or earns over £1,700, in a year.

While the reporting rules have changed, this is not a new tax.

Those who earn more than £1,000 outside their regular employment were already required to file a Self Assessment tax form with HMRC.

It is worth bearing in mind that HMRC will fine you for failing to file your return by the deadline.

Then, a £10 daily fine applies every day you don’t submit your tax return.

Alastair Douglas, chief executive of TotallyMoney said it is important people do not get “caught out”.

The financial professional said people struggling with learning difficulties such as autism or dyslexia should contact HMRC’s extra support team for assistance. 

He explained: “They’re specially trained, and can guide you through the process with a video appointment or phone call — you’ll just need to mention your situation when contacting the HMRC helpline or webchat.”

Do I have to pay tax on my second-hand sales?

Sellers on apps such as eBay and Vinted my be required to pay tax.

If you have made 30 sales or £1,700 this year you will be contacted by Vinted and asked to submit the seller report form on the app.

This year, the company said it will only approach new sellers who registered in 2024.

If you do not hear from Vinted then you don’t need to do anything, though you may need to file a tax return for other reasons separately.

Users who meet the criteria will be asked to add their National Insurance Number to a pre-filled form and check the details are correct before submitting it.

This will be done on the Vinted app.

You don’t need to calculate or count anything yourself.

A Vinted spokesperson said: “Reporting members’ details to the authorities does not necessarily lead to taxation.

“Taxation is a separate matter that doesn’t depend on HMRC reporting.”

They added: “HMRC requires Vinted to collect information from members who meet the criteria mentioned above, regardless of whether or not their earnings are taxable.”

Vinted said that it will be getting in contact with users who need to fill out these forms towards the end of the year.

What that means in practice is that money you make may be reported to the taxman if it’s over the amounts above.

Whether or not you have to pay tax will depend on your wider circumstances.

The majority of people pay income tax automatically through employment via what’s known as PAYE.

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Global rules on how much liquid assets banks should have need to be adjusted in response to last year’s collapse of Silicon Valley Bank and rescue of Credit Suisse, international regulators have said.

The world’s top banking supervisors pledged in a report published on Friday to examine ways to strengthen liquidity rules for the sector after identifying several areas where they fell short in last year’s crisis.

“Liquidity supervision may need to evolve in light of recent experience,” the Basel Committee on Banking Supervision, which sets global regulatory standards for the sector, said in a report to the G20 group of industrialised nations.

Over a fortnight in March 2023, banks with total assets of about $900bn were shut down, put into receivership or rescued — including Silicon Valley Bank, Signature Bank and Credit Suisse. A few weeks later, First Republic Bank was closed with nearly $230bn of assets.

The speed of the upheaval that swept through the banking sector last year left regulators questioning whether the rules they agreed to shore up the sector after the 2008 financial crisis were working as intended and if they needed improving.

“All of the distressed banks during the 2023 banking turmoil experienced a series of liquidity shocks,” the committee said. Even though many of the banks hit hardest were not subject to global rules, the regulators said “the turmoil raised questions about the design and calibration of the Basel III liquidity standards”.

The Basel committee said last year’s turmoil also exposed “the role of social media and the digitalisation of finance in hastening the speed and impact of a bank’s distress”. It suggested that regulators could require banks with a “structural high-risk liquidity profile” to report their liquidity positions more often.

In particular, the report said the problems at Credit Suisse before its rescue by rival UBS had revealed how a bank could struggle to sell liquid assets to pay depositors when they rush to pull their cash out.

The Basel regime requires global banks to have at least enough assets that can be easily sold — such as central bank deposits — to cover 30 days of net cash outflows during a hypothetical stressed scenario.

Credit Suisse comfortably met this requirement until shortly before customers pulled out almost a quarter of its assets in only a few days and pushed it to the brink of collapse.

The bank turned out to be unable to sell many assets it had identified to cover this requirement either because they were reserved for other purposes, such as daily liquidity needs, or because they were difficult to transfer to the entity where they were needed.

The report said Credit Suisse was also reluctant to sell its liquid assets because this would have taken it below the required level and triggered a need to disclose this to investors, which could have further eroded confidence in the bank.

Another problem it identified at the failed US banks, such as Silicon Valley Bank, was that they were reluctant to sell many liquid assets they had to deal with potential cash outflows because this would have forced them to crystallise unrecorded losses.

US banks were accounting for these assets, such as government bonds, on the basis they would be held to maturity. This meant they did not have to take losses when the assets fell in value, unless they were sold.

The banks seemed to assume they could cash in the assets via repo markets — in which they are pledged as security for a loan. But the report said “in such scenarios repo markets may stop functioning smoothly” making them “an unreliable source of contingent liquidity”.

The Basel committee said it would continue “prioritising work to strengthen supervisory effectiveness and identify issues that could merit additional guidance at a global level”.

UK business owners have fast-tracked their exit plans over the past 12 months, according to new research from Evelyn Partners.

Nearly one in three (29%) have accelerated business exits in the past year, ahead of amid rumours CGT rates could take centre stage in the upcoming Budget.

This is an uplift on the 23% who said 18 months ago that they had brought forward business exits over the previous year.

The research found nearly a third (23%) of the 500 business owners with turnovers of upwards of £5m surveyed by Evelyn Partners who had fast-tracked their exits in the last year had done so because of worries about an increase in CGT.

In addition, 20% brought forward business exits over the past 12 months because of fears of potential cuts in IHT reliefs.

The government has ruled out increasing the main rate of corporation tax above 25% and has pledged to freeze headline rates of VAT, income tax and National Insurance in the Budget.

However, the Treasury has remained tight-lipped on the outlook for CGT rates and IHT reliefs, as well as the tax rules around workplace pensions.

Other factors are also at play, with 25% of business owners who had fast-tracked business exits saying they had done so because of personal finance challenges resulting in a need to access the capital tied up in their business.

In addition, 24% brought forward plans due to increased costs of accessing capital as a result of rising interest rates.

Laura Hayward, tax partner at Evelyn Partners, said: “As the countdown to the Budget on 30 October ticks away, we have been contacted by an increasing number of business owners worried about what the chancellor will do to CGT and IHT.

“The prime minister’s statement that the upcoming Budget would be ‘painful’ has put owner-managed businesses on edge and this has prompted many to want to exit as quickly as possible.

“The business environment for many owners has already been tough enough in recent years as they have worked hard to rebuild their businesses after the pandemic, against a backdrop of cost-of-living pressures and high inflation.

“Add to that the potential for unfavourable tax changes in the upcoming Budget and it’s completely understandable that some are hoping to realise the gains of their successes sooner rather than later.

Of those owners who are currently working towards a business exit, family succession (22%) is the most popular strategy followed by establishing an employee ownership trust (16%).

Hayward added: “Whatever strategy is used, exiting a business is a really big decision for business owners and it’s important that they put in place a plan that is appropriate for them and their business.

They need to carefully consider a range of factors, with possible changes to the tax regime being just one aspect.

“Holistic advice considering both the business and personal implications of a sale will help make the exit – which can be fast-tracked if need be – as successful as possible.”

Mutual-fund-to-ETF conversions have become a way for asset managers to refashion investment offerings for investors, but they can be lengthy and arduous processes, a new study has found.

Operational risks, such as constraints and logistical issues, pose challenges to asset managers looking to convert mutual funds, according to the recently released 2025 Investment Management Outlook from Deloitte.

These obstacles include brokerage account requirements, distribution channel arrangements and issues relating to managing fractional shares, the report stated.

There has been a total of 119 conversions, according to data from Morningstar.

This article was previously published by Ignites, a title owned by the FT Group.

The first one, led by Guinness Atkinson in 2021, was initially viewed as a revolutionary development that would galvanise the industry’s move towards ETFs and away from mutual funds, said Alex Alberstadt, counsel in the investment management group for Seward & Kissel, LLP, who worked on the conversion.

“At the time, they were looked at as a clean process. It felt like there were not all these bells and whistles and extra layers of costs,” Alberstadt said.

However, “there are operational issues that everybody has to be up front about, and when you plan a conversion, you have to manage through these issues,” she said.

More than $60bn in assets have been converted from mutual funds into ETFs, according to the Deloitte report.

Firms such as Dimensional Fund Advisors, Fidelity and JPMorgan dominated the flows across the conversions through April, Morningstar data shows.

A spokesperson for DFA declined to comment when reached.

Fidelity has recently filed to convert two municipal bond funds into ETFs next year, according to regulatory filings. Once the conversions are finalised, Fidelity will have completed 14 in total, according to Morningstar data.

“Fidelity believes the conversions will provide multiple benefits for investors of the fund, including lower expenses, additional trading flexibility and increased portfolio holdings transparency,” the manager said in a Q&A on the conversions published on its website last week.

A spokesperson for the manager did not respond to a request for comment on operational hurdles it has faced in the conversion process.

But analysts agree with Deloitte’s findings.

“There’s a lot of work in the background that goes into making these conversions go smoothly . . . If you’re going to do it, it has to be done right so that your clients have a simple experience,” said Dan Sotiroff, a Morningstar analyst.

“Conversion is usually for smaller funds and can be a distribution strategy as much as it is a marketing strategy. Companies can use them as a way to get flows, but that doesn’t necessarily pan out,” Sotiroff said.

As of September 30, year-to-date net flows into the mutual funds converted into ETFs stood at roughly $11.2bn in assets, according to Morningstar data.

And because clients need access to brokerage accounts to hold ETFs, conversions can be issues for firms whose clients do not use them. They can include clients’ holding 401(k) plans that do not typically use ETFs, according to Sotiroff.

“At a high level, you have to make sure your clients can actually hold the ETF — and that’s just the start,” Sotiroff said.

Fractional shares also present issues, because they are available for mutual funds but not for ETFs.

Mutual fund fractional shares must be redeemed at the net asset value of the strategy during a fund conversion, but timing is a factor, Alberstadt said.

Because ETFs do not issue fractional shares, mutual fund shareholders who want to redeem before a conversion may incur additional taxes when those shares are sold.

That information must be communicated to clients and service providers in a succinct manner, Alberstadt said.

“The issues on fractional shares all have to be planned out. There’s multiple intermediaries at the table, and it requires resources and attention,” she explained.

Firms must post a transaction review and ensure that the process was managed properly, she said.

Some of the operational challenges of conversions could be mitigated by regulatory approval of the dual-share class fund structure that was long-patented by Vanguard, Alberstadt and Sotiroff both said.

An ETF share class option would be a favourable alternative to conversions, Karin Risi, a Vanguard managing director of the firm’s strategy, product, marketing and communications, said during a panel discussion at the Financial Times Future of Asset Management conference held in New York.

The conference was co-sponsored by Ignites.

“In the instance where you have the multiple share class opportunity, you don’t need to go through the much more cumbersome and operationally intense process of converting a mutual fund,” Risi said. “Adding an ETF share class onto a fund is a cleaner process.”

*Ignites is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at ignites.com.