1stDec
News article

Government sets out tax details on TAM Day

The UK government has marked the inaugural Tax Administration and Maintenance (TAM) Day with the release of 30 papers covering a wide range of tax issues.

Click or touch to read the full article..

The UK government has marked the inaugural Tax Administration and Maintenance (TAM) Day with the release of 30 papers covering a wide range of tax issues.

Chancellor Rishi Sunak made the commitment to have a TAM Day in the Autumn Budget. The aim was for a dedicated day for the administration and maintenance of the UK tax system. The 30 publications released by the government on TAM Day include Calls for Evidence, Draft Regulations, Policy Papers and Corporate Reports.

The government has set out further detail on the conclusions to its review of business rates, including more frequent revaluations, improvement relief, exemptions for green technology, and administrative reforms.

A report on Research and Development (R&D) tax reliefs was published, providing further details on announcements made at the Budget which included refocusing relief in the UK; targeting abuse; and supporting innovation by expanding qualifying expenditure to capture cloud and data costs.

Additionally, an update on reforms to Small Brewers' Relief was published, which will see the government invest around £15 million of additional funding into the craft brewing sector.

Jim Harra, HMRC's First Permanent Secretary and Chief Executive, said: 'As we continue our work to improve the tax system for UK taxpayers and clamp down on avoidance and evasion, we know that an open dialogue with our stakeholders is vital.

'With thanks to the tax profession for their views, we can now announce the next steps for how we will simplify the legislative framework and raise standards in the tax advice market. We are also announcing new areas on which we are inviting views, including reforming Income Tax Self-Assessment registration for the self-employed.'

30thNov
News article

Services sector continues to recover despite rising costs

Optimism improved for firms across the services sector in the three months to November, according to the latest Service Sector Survey from the Confederation of British Industry (CBI).

Click or touch to read the full article..

Optimism improved for firms across the services sector in the three months to November, according to the latest Service Sector Survey from the Confederation of British Industry (CBI).

However, cost growth continued to pick up, increasing at the fastest pace since survey records began in 1998. Additionally, business volumes continued to grow at a strong pace across the services sector, although there are signs of slowing growth.

The CBI found that cost pressures are building, with both consumer services and business and professional services seeing costs rise at the fastest pace in survey history.

As a result, selling price growth accelerated too, with expectations for significantly faster growth in the coming quarter for both sub-sectors. Despite elevated cost pressures, profitability grew in business, professional and consumer services, with the strongest growth recorded since February 2018 for the latter.

Charlotte Dendy, Head of Economic Surveys and Data at the CBI, said: 'With COVID still a concern with impacts for consumer confidence together with cost and supply chain issues continuing to bite, a difficult winter lies ahead.

'It is therefore vital that the government works with business to help address these challenges, ease cost and supply pressures, giving businesses the platform to ensure the recovery does not fizzle out before Christmas.'

29thNov
News article

Third of UK manufacturers struggling with debt and rising costs, research suggests

Research carried out by manufacturers' organisation Make UK has suggested that more than a third of manufacturers in the UK are struggling with rising costs, debt and business red tape.

Click or touch to read the full article..

Research carried out by manufacturers' organisation Make UK has suggested that more than a third of manufacturers in the UK are struggling with rising costs, debt and business red tape.

40% of manufacturers surveyed said that they had consulted an insolvency specialist or are looking to do so in the next 12 months. Cost inflation has put pressure on businesses as they combat skills shortages and rising costs, Make UK found.

Meanwhile, 50% of firms reported increased levels of debt when compared to the start of last year.

Commenting on the issue, James Brougham, Senior Economist at Make UK, said: 'Industry is facing the perfect storm with a raft of rapidly escalating costs combined with significant levels of debt which many companies took on as a precautionary measure just to stay afloat.

'Given the inflationary spiral shows every sign of continuing to climb, many companies fear a tipping point that could make their business models unviable.'

26thNov
News article

House sales drop dramatically after stamp duty holiday ends

House sales in the UK plummeted by more than half in October after the stamp duty holiday ended.

Click or touch to read the full article..

House sales in the UK plummeted by more than half in October after the stamp duty holiday ended.

There were nearly 77,000 transactions in the UK during October, a 52% fall compared to September, according to HMRC statistics.

HMRC says this was down to buyers pushing through purchases before 30 September to meet the stamp duty holiday deadline. 

The tax break was introduced in July 2020 by Chancellor Rishi Sunak. Homebuyers did not pay stamp duty on purchases up to £500,000 between July 2020 and the end of June 2021, which cut bills by up to £15,000. After that it was tapered down before going back to normal levels at the end of September. 

Iain McKenzie, CEO of the Guild of Property Professionals, said: 'A sharp drop in property transactions in October suggests that forestalling from September has caught up with the property market.

'While transaction numbers may be lower now the stamp duty holiday has ended, the fact that the demand for properties currently far outstrips supply means that prices are likely to keep rising.

'At a time when there is often a rush to get moved in before the festivities commence, we should expect that sales will continue to be steady in the run-up to Christmas.'

25thNov
News article

Data requests 'costing businesses thousands each year', research suggests

An analysis carried out by the Data Privacy Group has revealed that UK businesses are spending between £72,000 and £336,000 per year handling data subject access requests (DSARs).

Click or touch to read the full article..

An analysis carried out by the Data Privacy Group has revealed that UK businesses are spending between £72,000 and £336,000 per year handling data subject access requests (DSARs).

DSARs are made by individuals seeking to view the information a company has on them. Each DSAR is worth around £1,000.

The analysis suggested that the coronavirus (COVID-19) pandemic led to a rise in DSARs as a result of businesses having to alter the way they provided their services.

Commenting on the issue, Peter Borner, Co-Founder of the Data Privacy Group, said: 'Over the course of the pandemic, we have seen a rise in the number of DSARs being made, which in our experience is often the result of unhappy employees or customers.

'By enlisting the support of an operationalised privacy program, business owners can be confident they are managing their incoming requests in an efficient and compliant way.'

24thNov
News article

PM announces electric vehicle revolution

New homes and buildings such as supermarkets and workplaces, as well as those undergoing major renovation, will be required to install electric vehicle charge points from next year, under new legislation announced by Prime Minister Boris Johnson.

Click or touch to read the full article..

New homes and buildings such as supermarkets and workplaces, as well as those undergoing major renovation, will be required to install electric vehicle charge points from next year, under new legislation announced by Prime Minister Boris Johnson.

Up to 145,000 extra charge points will be installed across England each year under the new regulations.

As well as new homes and non-residential buildings, those undergoing largescale renovations which leaves them with over ten parking spaces will be required to install electric vehicle charge points.

The government will also be introducing simpler ways to pay whilst travelling, such as contactless, at all new fast and rapid charge points.

Mr Johnson said: 'This is a pivotal moment – we cannot go on as we are. We have to adapt our economy to the green industrial revolution. We have to use our massive investment in science and technology, and we have to raise our productivity.

'We will require new homes and buildings to have EV charging points – with another 145,000 charging points to be installed thanks to these regulations.

'We are investing in new projects to turn wind power into hydrogen and our net zero strategy is expected to trigger about £90 billion of private sector investment, driving the creation of high wage high skilled jobs as part of our mission to unite and level up across the country.'

23rdNov
News article

Taxpayers warned over refund companies

Self assessment taxpayers should keep their Government Gateway login details safe from tax refund companies, the Low Incomes Tax Reform Group (LITRG) has warned.

Click or touch to read the full article..

Self assessment taxpayers should keep their Government Gateway login details safe from tax refund companies, the Low Incomes Tax Reform Group (LITRG) has warned.

The warning comes after the LITRG found examples of taxpayers who have seemingly issued 'inappropriate' tax relief claims through self assessment tax returns.

One case saw a refund company ask a taxpayer to register for a self assessment tax return to claim employment expenses. However, the company then used the individual's Government Gateway login credentials to prepare and submit a tax return, which included claims for tax relief under the Enterprise Investment Scheme (EIS). 

This claim generated large refunds which were sent to the refund company and then paid to the taxpayer after commission had been deducted. The taxpayer was unaware of the claim made on their behalf. HMRC has now contacted the taxpayer demanding that they repay the full amount as it was incorrectly claimed.

Meredith McCammond, Technical Officer at the LITRG, said: 'It is entirely legitimate for taxpayers to use tax refund companies to claim refunds on their behalf because not everyone wants to deal with claims themselves and some people would prefer to pay someone to claim on their behalf. But we warn that there are serious consequences of getting caught up with an unscrupulous tax refund company.'

22ndNov
News article

Customs Declarations from EU changing on 1 January

HMRC has warned business that Customs Declarations on imports from the EU will change once again at the start of next year.

Click or touch to read the full article..

HMRC has warned business that Customs Declarations on imports from the EU will change once again at the start of next year.

From 1 January 2022, businesses will no longer be able to delay making import customs declarations under the Staged Customs Controls rules that have applied during 2021. Most businesses will have to make declarations and pay relevant tariffs at the point of import.

The tax authority says businesses should consider how they will make their declarations. They can either appoint an intermediary, such as a customs agent, or submit the declarations themselves.

Some businesses already have a 'Simplified Declarations' authorisation from HMRC that allows their goods to be released directly to a specified customs procedure without having to provide a full customs declaration at the point of release.

Businesses that want to use Simplified Declarations will need authorisation to do so. It can take up to 60 calendar days to complete the checks needed for this and therefore a new application made now may not be authorised before 1‌‌ ‌January‌‌ ‌2022.

From 1 January businesses must use the correct country code for the country of origin and the country of dispatch when they complete their customs declaration. HMRC says that for EU countries, the individual country code of the relevant member state should be used. The EU country code must not be used and will be removed from HMRC's systems shortly. 

19thNov
News article

Jobs recovery continues despite end of furlough

There were 160,000 more workers on payrolls in October than in September despite the end of the furlough scheme, according to the latest figures from the Office for National Statistics (ONS).

Click or touch to read the full article..

There were 160,000 more workers on payrolls in October than in September despite the end of the furlough scheme, according to the latest figures from the Office for National Statistics (ONS).

Job vacancies also hit a record high of 1.17 million in the three months to October as firms continued to struggle with worker shortages. The UK economy is recovering from pandemic-era lows, but inflation remains a concern. Additionally, the unemployment rate has fallen to 4.3%, near to its pre-pandemic level.

Suren?Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: 'The marked rise in payroll employment suggests that the end of furlough had little effect on the UK jobs market in October, as demand for labour continued to surge.

'Record job vacancies suggest that the chronic staff shortages encountered by businesses are intensifying and this could derail the recovery by forcing firms into a more long-lasting decline in their operating capacity.

'Although earnings growth remains elevated, achieving wage increases over a sustained period is likely to prove challenging without a marked improvement in productivity and an easing of the cost pressures faced by firms.' 

18thNov
News article

Three-day wait for Statutory Sick Pay to return next year

The standard three-day waiting time for Statutory Sick Pay (SSP) will be reinstated for coronavirus (COVID-19)-related claims from 25 March 2022, unless the government intervenes.

Click or touch to read the full article..

The standard three-day waiting time for Statutory Sick Pay (SSP) will be reinstated for coronavirus (COVID-19)-related claims from 25 March 2022, unless the government intervenes.

Under standard rules in the UK, employers do not have to pay SSP to an employee until the fourth qualifying day in the Period of Incapacity for Work (PIW). The PIW is a period of sickness lasting four or more consecutive calendar days.

During the COVID-19 pandemic, the government suspended the three-day wait for COVID-related SSP, meaning that employers must pay it from the first qualifying day.

The amendment to the SSP rules was made in the Coronavirus Act 2020 which is due to expire after two years. This means that, unless there is an intervention to continue the measure, COVID-related SSP waiting time will automatically revert to three days on 25 March 2022.

Frank Haskew, Head of the Tax Faculty at the Institute of Chartered Accountants in England and Wales (ICAEW), said: 'The SSP rules were not really designed with a highly infectious global pandemic in mind, which is why the current easements have been welcome.

'While some employees who are ill from coronavirus or required to self-isolate may be unable to afford not to go to work unless they are paid SSP for the first three days, there are also small businesses where the unreimbursed cost of paying three days' coronavirus-related SSP to employees is a real burden.'