30thJul
News article

Public warned to watch out for top coronavirus scams

Fraudsters are exploiting people's financial concerns during the coronavirus (COVID-19) pandemic, UK Finance has warned.

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Fraudsters are exploiting people's financial concerns during the coronavirus (COVID-19) pandemic, UK Finance has warned.

The trade body highlighted some of the most common scams as it launched a campaign called Take Five to Stop Fraud. According to UK Finance, some scams manipulate innocent victims, urging people to invest and 'take advantage of the financial downturn'.

Others impersonate well-known subscription services to get people to part with their savings and personal information. Criminals are even posing as representatives from the NHS Test and Trace service to trick people into giving away their personal details.

Commenting on the scams, Katy Worobec, Managing Director of Economic Crime at UK Finance, said: 'During this pandemic we have seen criminals using sophisticated methods to callously exploit people's financial concerns, impersonating trusted organisations like the NHS or HMRC, to trick them into giving away their money or information.

'The banking and finance industry is tackling fraud on every front, investing millions in advanced technology to protect customers and working closely with the government and law enforcement to stop the criminal gangs responsible and neutralise the threat.'

More information on Take Five to Stop Fraud can be found here.

29thJul
News article

NIESR calls for furlough scheme to be kept open

The National Institute of Economic and Social Research (NIESR) has called for the government to keep the Coronavirus Job Retention Scheme (CJRS) open for longer.

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The National Institute of Economic and Social Research (NIESR) has called for the government to keep the Coronavirus Job Retention Scheme (CJRS) open for longer.

The CJRS is being wound down after helping support 11 million people through the crisis, and will come to an end in October.

The NIESR predicts that unemployment in the UK could rise to 10% of the workforce by the end of 2020. It is predicted to subsequently recede as the economic recovery gathers speed in 2021. According to the NIESR, the rate of unemployment would have stayed lower had the government extended the CJRS beyond the end of October.

In the Summer Economic Update, the Chancellor said furloughing had been the right measure to protect jobs through the first phase of the COVID-19 crisis and that it will be followed by a Job Retention Bonus. This will see UK employers receive a one-off payment of £1,000 for each furloughed employee who is still employed as of 31 January 2021. 

'The planned closure of the furlough scheme seems to be a mistake, motivated by an understandable desire to limit spending,' said Garry Young, Deputy Director at the NIESR.

'The scheme has been an undeniable success in terms of keeping furloughed employees attached to their jobs. The incentives offered to employers by the Job Retention Bonus look too small to be effective given the uncertainty about the economic outlook – a one-off payment of £1,000 per employee compared to an average wage of £530 per week.'

29thJul
News article

Eat Out to Help Out scheme set to start

The government's landmark Eat Out to Help Out scheme will start at the beginning of August and run throughout the month.

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The government's landmark Eat Out to Help Out scheme will start at the beginning of August and run throughout the month.

The scheme was announced by Chancellor Rishi Sunak in his Summer Economic Update. It will provide a 50% reduction for sit-down meals in participating cafes, restaurants and pubs across the UK from Monday to Wednesday every week throughout August 2020.

More than 53,000 outlets have so far signed up to the Eat Out to Help Out scheme.

Those establishments taking part in the scheme will display stickers and posters in their windows. Diners can take advantage of the offer as many times as they like during the month and do not need to present a voucher.

Commenting on the scheme, the Chancellor said: 'Our restaurants, cafes and bars play a vital role in our economy, employing more than a million people. They have been hit hard by coronavirus, so it's vital we do everything we can to help them recover.

'Our Eat Out to Help Out scheme is designed to get more customers through the door, protecting jobs by giving businesses the confidence to retain and hire staff.'

Further information for businesses, including how to register and make a claim, is available here.

28thJul
News article

Government announces review of business rates system

The government has published a call for evidence on the overhaul of the business rates system that applies in England.

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The government has published a call for evidence on the overhaul of the business rates system that applies in England.

The government announced at the 2020 Budget in March that it would conduct a review of the business rates system in England. It is seeking views from businesses, business representative organisations, local authorities, rating agents, others involved in the operation of the system and anyone interested in the business rates or wider tax system.

The call for evidence seeks views on how the business rates system currently works, issues to be addressed, ideas for change and a number of alternative taxes.

Commenting on the issue, Kate Nicholls, Chief Executive at trade association UKHospitality, said: 'Kicking back the revaluation by a further year will give businesses some much-needed breathing room and stability.

'Pushing back should also provide time for reforms to be introduced and a more accurate reflection of property values following this crisis, which has clearly had an enormous impact on trade.'

The government stated that it welcomes views on the multiplier and reliefs sections of the call for evidence by 18 September 2020, to inform an interim report in the autumn.

The call for evidence can be found here.

28thJul
News article

Committee suggests many have 'fallen through gaps in support schemes'

The Treasury Select Committee has found that over a million people have 'fallen through the gaps' of the government's coronavirus (COVID-19) support schemes.

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The Treasury Select Committee has found that over a million people have 'fallen through the gaps' of the government's coronavirus (COVID-19) support schemes.

The Committee has made a series of recommendations to the government to help those in need of support. These include tackling the 'cliff edge' that exists in the design of the Self-employment Income Support Scheme (SEISS) by removing the £50,000 cap and finding a practical solution to supporting hundreds of thousands of limited company directors who are missing out on support because they pay themselves in dividends.

The Committee also recommends amending the Coronavirus Job Retention Scheme (CJRS) to allow tronc payments made via Pay as You Earn (PAYE) to be included when calculating a worker's pay when assessing entitlement.

Commenting on the matter, Mel Stride, Chair of the Treasury Select Committee, said: 'The Chancellor has effectively drawn a line under helping the million-plus people who have been excluded from support for four months.

'The Chancellor said that the schemes were designed to be open and accessible to as many people as possible, but the Committee remains to be convinced that more people could not have been helped.'

The Treasury Select Committee is calling on the government to enact the recommendations to fulfil its promise of 'doing whatever it takes to protect people and businesses from the impact of COVID-19'.

27thJul
News article

Fifth of small firms expect poor performance in next three months, data suggests

Data published by the Federation of Small Businesses (FSB) has suggested that a fifth of small businesses expect their performance to be 'much worse' over the next three months as a result of the coronavirus (COVID-19) lockdown.

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Data published by the Federation of Small Businesses (FSB) has suggested that a fifth of small businesses expect their performance to be 'much worse' over the next three months as a result of the coronavirus (COVID-19) lockdown.

The FSB's latest Small Business Index (SBI) showed that 23% of the 1,400 business owners polled expect their performance to worsen in the upcoming months. However, 42% expect a relative improvement as lockdown restrictions lift.

Meanwhile, 75% said that COVID-19 is still having a negative impact on their confidence levels.

Mike Cherry, National Chairman of the FSB, said: 'There was a lot to welcome in the Chancellor's Summer Statement where efforts to increase job creation and retention are concerned. That said, given so many small firms are already being forced to reduce headcounts, policymakers will need to keep existing interventions under close and continuous review to ensure they are sufficient.

'They should also be conscious that tax increases for small businesses and the self-employed would risk stifling any nascent recovery.'

27thJul
News article

HMRC outlines changes to VAT treatment of imported goods

HMRC has outlined changes to the VAT treatment of imported goods from 1 January 2021.

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HMRC has outlined changes to the VAT treatment of imported goods from 1 January 2021.

The changes will ensure that goods from EU and non-EU countries are treated in the same way and that UK businesses are not disadvantaged by competition from VAT-free imports.

From 1 January 2021, VAT on imported goods with a value of up to £135 will be collected at the point of sale as opposed to the point of importation. This means that UK supply VAT rather than import VAT will be due on goods.

Online marketplaces involved in facilitating the sale of imported goods will be responsible for collecting and accounting for the VAT, HMRC said.

Business-to-business sales not exceeding £135 in value will also be subject to the new rules. However, where the business customer is VAT registered in the UK and provides its valid VAT registration number to the seller, the VAT will be accounted for by the customer by means of a reverse charge.

The changes also involve the abolition of Low Value Consignment Relief, which relieves import VAT on consignments of goods valued at £15 or less.

More information on the changes can be found here.

24thJul
News article

OTS publishes series of recommendations for simplifying tax system

The Office of Tax Simplification (OTS) has outlined a range of measures designed to help simplify the UK tax system.

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The Office of Tax Simplification (OTS) has outlined a range of measures designed to help simplify the UK tax system.

In the OTS's latest evaluation and stock take note, which considers its work on corporation tax and the taxation of self-employed people, the Office highlighted taxes it feels can be reviewed by the government in order to reduce the administrative burden on businesses.

In regard to personal service companies, the OTS suggests renewed consideration of enabling a small personal service style business to operate through a UK limited company while being treated as transparent for tax. The stated aim would be to provide a fully recognisable form of limited company, removing it from corporation tax and introducing the 'relative ease of a self-employment style tax calculation'.

The OTS also reaffirmed its support for HMRC doing more to enhance the taxpayer Personal Tax Account (PTA), including integrating it with the Business Tax Account (BTA). It believes this will 'provide an end-to-end tax reporting and payment service and facilitate the simplification of tax administration for self-employed people'.

Additionally, the OTS stated it would welcome the development of a statutory definition of employment for tax purposes.

For more information on the OTS's recommendations please click here.

24thJul
News article

UK economy 'still stuck in first gear'

The UK's economy is 'still stuck in first gear', with many businesses operating at half their pre-coronavirus (COVID-19) capacity, according to the British Chambers of Commerce (BCC).

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The UK's economy is 'still stuck in first gear', with many businesses operating at half their pre-coronavirus (COVID-19) capacity, according to the British Chambers of Commerce (BCC).

The BCC's Coronavirus Impact Tracker found that over half of businesses were suffering from reduced demand. In fact, customer demand and possible future local lockdowns were rated the two top obstacles to maintaining day-to-day operations.

A third of firms said they intend to make redundancies over the next three months, with 13% of businesses having already laid off staff.

Commenting on the survey, Adam Marshall, Director General of the BCC, said: 'Our findings demonstrate that the UK's economic restart is still very much in first gear. Businesses are grappling with reduced customer demand, an ongoing cash crunch and the potential for further lockdowns during an uncertain autumn and winter ahead.

'The time has come for the government to take radical steps to slash the tax burden around employment to help companies pay valued staff, rather than the Revenue.

'A major boost to the Employment Allowance and an increase in the threshold for employers' national insurance contributions (NICs) should both be in the Chancellor's sights if he wants to help viable companies save jobs as the furlough scheme comes to an end.'

23rdJul
News article

Small business confidence begins to bounce back

Confidence in the UK's small business sector is starting to bounce back, according to a quarterly survey conducted by Hitachi Capital Business Finance (HCBF).

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Confidence in the UK's small business sector is starting to bounce back, according to a quarterly survey conducted by Hitachi Capital Business Finance (HCBF).

The HCBF survey reported that the number of UK small businesses predicting growth has almost doubled in just three months, from 14% to 27%.

Following last quarter's report, which saw the percentage of small business owners predicting growth plummeting from 39% to just 14%, the new findings show the highest quarter-on-quarter rise in five years.

The IT/telecoms sector had the highest proportion of small businesses that predicted growth at 44%, while transport and distribution saw the biggest rise in confidence.

Commenting on the report, Gavin Wraith-Carter, Managing Director at HCBF, said: 'We knew last quarter that small business confidence would fall as lockdown started and the scale of the fall was a concern, particularly the steep rise in the number of business owners fearing for their survival. Our new research – just in – shows what an immediate and positive impact the easing of lockdown has had on the small business community.'