If the consolidation of consolidators mooted for the advice space happens, it will unlikely be a “dramatic shift” in the market, NextWealth consulting director Emma Napier has suggested.

Napier told Money Marketing she believes consolidation of consolidators could happen, but it is not going to be a “great big turn” for the industry.

“It comes down to the process that a consolidator has managed to embed,” she said. “The consolidation of consolidators will only occur if the seller finds the process [of buying small advice firms] too slow and needs to recapitalise, and the buyer can quickly see a clear route to market.

“This is more likely if most of the work is already done, there’s a proven model, it makes sense to proceed, and the buyer still has cash available.

“It’s more about the availability of capital rather than the market shrinking because consolidators are buying other consolidators.”

She pointed out that the same thing happened with platforms about five to 10 years ago.

“While a few consolidated and rebranded, the big consolidation never really occurred,” she added.

Behind the Headlines: FCA consolidation review is a ‘wake-up call’ for buyers and sellers

“I think we’ll see a similar situation with consolidators. From a business perspective, if it makes sense, it shouldn’t be a surprise.”

The Financial Conduct Authority has set its sights on the consolidator model and, earlier this week, said it would launch a review of consolidation in the advice space.

“It’s an area of the market that they should be looking at, not because there are concerns, but there has been a huge shift in the dynamics of the industry itself and how it’s chopped up,” said Napier.

“If those shapes of sections of the industry are changing, then [the FCA] should be aware of it, and also the dynamics and the intentions behind it.”

She said that last year, there was a “definite shift” in the number of firms being acquired by the acquirers.

“If I was a regulator, I’d want to know how those dynamics are working.”

Napier added: “If you’re a consolidator, it doesn’t matter who you’re consolidating and what your proposition is, you’ve got to integrate the tech and the people with a focus on the end customer.

“It can be a minefield in all sorts of businesses. Some people are good at it, some people have nailed it, and some people are still struggling with it.”

A HOST of fashion labels have changed their returns policy so customers subscribing to their premium service must pay for returns.

Debenhams, Dorothy Perkins, Oasis, Coast and Warehouse – which are all part of the same group and share the same “Unlimited” delivery service – used to offer members free returns, but since June charge £1.99 per order.

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Unlimited membership, which costs £14.99 a year, gives customers access to next day deliveries for all the brands named above, plus Burton, Misspap and Wallis .

The change has outraged subscribers, who were taken by surprise when they found out about the fee.

One shopper who took to the Trustpilot site to comment on Dorothy Perkins’ service said: “Since when have you started charging Delivery Pass customers £1.99 to return items?

“If you have started to charge for returns then I certainly will not be renewing my pass with you.”

Another added: “Regular customer for many years now and on unlimited subscription.

“Had to return a size 12 dress more like a size 18 only to be told 1.99 for returns label. 

“Will not be buying again, waste of money.”

Another Warehouse Unlimited customer complained of being charged £1.99, even though this fee was not in place when he had subscribed.

Karen Millen – another brand owned by the Boohoo Group – has similarly changed its Premier service so that members, who pay £14.99 a year, must pay £2 per return.

However, according to the terms and conditions, those who purchased Premier unlimited delivery before June 3 will continue to receive free returns until their subscriptions end. 

Any new Premier customers from June 3 will be charged £2 for returns.

But, for subscribers to Debenhams Unlimited and all of the brands under that label, the fee has come into effect immediately.

Sun Online revealed in September how members of Boohoo Premier – another premium delivery service operated by the Boohoo Group – were also told to pay £1.99 per return, but it has since reneged and made them free again.

Louise Deglise-Favre, retail analyst at GlobalData, said the introduction of returns fees was likely done to boost its profits, leaving some feeling cheated.

She added: “The group has been experiencing major issues in the past couple of years, unable to compete with new competitors such as Shein in terms of agility and breadth of choice.

“Besides, the group bought the majority of the brands mentioned here during the height of its success throughout the pandemic.

“However, these brands were already experiencing difficulties and the boohoo Group likely has not been able to turn their favours around despite a change in branding and product offering.”

The Boohoo Group did not comment.

STORE RETURN CHARGES

PrettyLittleThing recently implemented a charge of £1.99 per item returned.

In February, River Island angered customers by introducing a £2 charge to return items ordered online.

The retailer also said it would ban some customer accounts if they made too many returns.

The charge is deducted from the total amount refunded after the customer has posted back the items.

And H&M brought in a £1.99 fee in September last year.

Before that Boohoo also began the practise in July 2022, but it continues to offer free returns for its “premier” customers.

In May 2022, fashion chain Zara introduced a fee for those looking to bring back parcels, it now charges £1.95 for the service.

Next gives customers 14 days to return their orders, but still charges £2.50 to take them back.

A host of retailers including Mountain Warehouse, THG and Moss Bros have also added a charge for shoppers to return items bought online.

Companies have started to charge for returns as the costs of shipping have risen.

The cost of processing is also higher.

Retailers with stores can make it easier for consumers to return goods for free as they can be dropped off in a store, which saves the shipping charges.

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.