Newsletter – February 2021

Posted on February 9, 2021 by Henry Cooper

Enews – February 2021

In this month’s Enews we consider the latest Self Assessment figures, those named and shamed for failing to pay the minimum wage and Scottish Budget announcements.

With guidance on bonuses for businesses taking on trainees, calls for changes ahead of the Budget and the Supreme Court ruling on business interruption claims there is a lot to update you on.

10.7 million taxpayers submitted their 2019/20 Self Assessment tax returns

Rogue employers named and shamed for failing to pay employees the minimum wage

Scottish Budget Income Tax

Scottish Land and Buildings Transaction Tax

Bonus of £1,000 to help businesses take on trainees

LITRG calls for a rise in the High Income Child Benefit Charge threshold

Government urged by CBI to act on COVID business support ahead of Budget

Supreme Court backs small firms on business interruption claims

10.7 million taxpayers submitted their 2019/20 Self Assessment tax returns

HMRC has revealed that more than 10.7 million taxpayers submitted their 2019/20 Self Assessment tax returns by the 31 January deadline.

The remaining 1.8 million whose tax return is now late will not be charged a late filing penalty provided they submit their return online by 28 February.

Taxpayers who did not pay their Self Assessment tax bill by 31 January are now incurring interest on the outstanding balance and should pay their bill as soon as possible.

Taxpayers should pay any outstanding balance, or arrange a payment plan, before 3 March 2021 to avoid a 5% late payment penalty.

Those who are not yet able to file their tax return should pay an estimated amount as soon as possible, which will minimise any interest and late payment penalty.

Karl Khan, HMRC’s Interim Director General for Customer Services, said:

‘Thank you to the 10.7 million customers who have sent in their tax returns.

‘We won’t send anyone a late filing penalty if they complete their tax return by 28 February.

‘We know that many individuals and small businesses are finding it harder to pay this year, due to the pandemic. Anyone who can’t afford to pay their tax bill in full can set up a payment plan, once they’ve filed their return, to spread their tax bill into monthly instalments.’

There are several ways that taxpayers can pay their Self Assessment tax bill or an estimated amount. They can pay online, via their bank, or by post.

Anyone who cannot pay their bill in full can apply to spread the cost. Taxpayers can set up a payment plan, in up to 12 monthly instalments, online via https://www.gov.uk/pay-self-assessment-tax-bill/pay-in-instalments provided they meet the following requirements:

Taxpayers need to have no:

outstanding tax returns

other tax debts
other HMRC payment plans set up.

The debt needs to be between £32 and £30,000.

The payment plan needs to be set up no later than 60 days after the due date for payment. Taxpayers should set up the payment plan as soon as possible, and certainly before 3 March to avoid a 5% late payment penalty.

Those who do not meet these requirements, or who need more than 12 months to pay their bill, can apply for a payment plan by speaking to one of HMRC’s debt advisers.

Interest accrues on all outstanding balances, including those in payment plans.

Self Assessment taxpayers who are required to make Payments on Account, and know their 2020/21 tax bill is going to be lower than in 2019/20, for example due to loss of earnings because of COVID-19, can reduce their Payments on Account. More information is available at https://www.gov.uk/understand-self-assessment-bill/payments-on-account.

Internet link: GOV.UK press release

Rogue employers named and shamed for failing to pay employees the minimum wage

HMRC has published the names of 139 named companies that failed to pay minimum wages amounting to £6.7 million to over 95,000 workers.

HMRC has named 139 companies, including major household names, that have underpaid their employees and have been fined. The offending companies failed to pay £6.7 million to their workers, in a breach of employment law.

This is the first time the government has named and shamed companies for failing to pay National Minimum Wage since 2018, following reforms to the process to ensure only the worst offenders are targeted.

Business Minister Paul Scully said:

‘Paying the minimum wage is not optional, it is the law. It is never acceptable for any employer to short-change their workers, but it is especially disappointing to see huge household names who absolutely should know better on this list.

‘This should serve as a wake-up call to named employers and a reminder to everyone of the importance of paying workers what they are legally entitled to.

‘Make no mistake, those who fail to follow minimum wage rules will be caught out and made to pay up.’

Internet link: GOV.UK news

Scottish Budget Income Tax

Finance Secretary Kate Forbes delivered the 2021/22 Scottish Draft Budget on Thursday 28 January 2021, setting out the Scottish Government’s financial and tax plans.

The Government has devolved powers to set the rates and bands of income tax (other than those for savings and dividend income) which apply to Scottish resident taxpayers.

The Scottish Budget announced the following income tax rates and bands for 2021/22. These will be considered by the Scottish Parliament, and an agreed Scottish Rate Resolution will set the final Scottish income tax rates and bands for 2021/22.

The current rates and bands for 2020/21 and the proposed rates and bands for 2021/22 on non-savings and non-dividend income are as follows:

Scottish Bands 2020/21	Scottish Bands 2021/22	Band name	Scottish Rates
£12,501* – £14,585	£12,570* – £14,667	Starter	19%
£14,586 – £25,158	£14,668 – £25,296	Scottish Basic	20%
£25,159 – £43,430	£25,297 – £43,662	Intermediate	21%
£43,431 – £150,000**	£43,663 – £150,000**	Higher	41%
Above £150,000**	Above £150,000**	Top	46%

* Assumes individuals are in receipt of the Standard UK Personal Allowance.

** the personal allowance will be reduced if an individual’s adjusted net income is above £100,000. The allowance is reduced by £1 for every £2 of income over £100,000.

In the UK Spending Review in November 2020, the UK Government announced that the UK wide Personal Allowance and the UK higher rate threshold would be uprated by CPI inflation of 0.5% for the tax year 2021/22 (to £12,570 and £50,270 respectively). All other policy decisions about UK rates and bands will be announced at the UK Budget on 3 March 2021.

The Personal Allowance is £12,500 for 2020/21. Across the rest of the UK the basic rate of income tax is 20%. In 2020/21 the band of income taxable at this rate is £37,500 so the threshold at which the 40% band applies is £50,000 for those entitled to the full personal allowance. UK taxpayers pay 45% tax on their income over £150,000.

Internet link: GOV.SCOT publications

Scottish Land and Buildings Transaction Tax

As part of the Scottish Budget, Finance Secretary Kate Forbes also announced changes to Land and Buildings Transaction Tax (LBTT) which apply from 1 April 2021.

The Scottish Government’s stated policy priority for residential LBTT remains to help first-time buyers and to assist people as they progress through the property market. The current rates and bands which apply until 31 March 2021 are as follows:

Residential property	Rate
£0 – £250,000	0%
£250,001 – £325,000	5%
£325,001 – £750,000	10%
£750,001 and over	12%

For transactions with an effective date on or after 1 April 2021 the rate bands will return to:

Residential property	Rate
£0 – £145,000	0%
£145,001 – £250,000	2%
£250,001 – £325,000	5%
£325,001 – £750,000	10%
£750,001 and over	12%

The rates apply to the portion of the total value which falls within each band.

First-time buyer relief

The relief for first-time buyers of properties up to £175,000 will resume its effect by increasing the residential zero tax threshold for first-time buyers from £145,000 to £175,000. First-time buyers purchasing a property above £175,000 also benefit from the relief on the portion of the price below the threshold. According to the Government, those buying a property for more than £175,000 will receive relief on the portion of the price below the threshold and benefit from savings of up to £600.

Higher rates for additional residential properties

Higher rates of LBTT are charged on purchases of additional residential properties, such as buy to let properties and second homes. Although these are the main targets of the higher rates, some other purchasers may have to pay the higher rates.

The Additional Dwelling Supplement (ADS) potentially applies if, at the end of the day of the purchase transaction, the individual owns two or more residential properties. Care is needed if an individual already owns, or partly owns, a property and transacts to purchase another property without having disposed of the first property. An 18-month rule helps to remove some transactions from the additional rates (or allows a refund). The ADS is charged at 4%.

Internet link: GOV.SCOT publications

Bonus of £1,000 to help businesses take on trainees

The government has announced that employers can now apply for a £1,000 bonus, a cash boost, to help them take on new trainees.

The new scheme will support young people to gain the skills and experience they need from the start, helping them to get a job, an apprenticeship, or to pursue further study.

The cash boost, which is available until 31 July 2021, will help businesses with the cost of providing a high-quality work placement for a trainee. This includes providing facilities, uniforms or helping with travel costs.

Businesses offering new traineeship opportunities will receive the £1,000 bonus for every trainee they take on, up to a maximum of ten trainees.

Employers can claim the cash incentive for all work placements that have been completed since 1 September.

Gillian Keegan, Minister for Apprenticeships and Skills, said:

‘We’re pulling out all the stops to help young people get the skills and confidence they need to progress. This cash boost will help employers of all sizes provide more traineeship opportunities to invest in their workforce so they can rebuild and grow, giving young people a vital route to start their apprenticeship journey, get their first job or go on to further study.

‘I strongly encourage as many employers as possible to apply now and take advantage of this fantastic offer so more young people can gain the skills they need to progress in their careers as we build back better from the pandemic.’

Internet link: GOV.UK news

LITRG calls for a rise in the High Income Child Benefit Charge threshold

The Low Incomes Tax Reform Group (LITRG) has urged the government to raise the High Income Child Benefit Charge (HICBC) threshold to avoid it affecting basic-rate taxpayers for the first time in April 2021.

The LITRG stated that this goes against the original policy intent, and is ‘likely to cause the government additional difficulties in raising awareness about the charge among those who do not consider themselves on a high income’.

Tom Henderson, Technical Officer at the LITRG, said:

‘When the HICBC was announced in 2010, the government’s policy intent was that it would only affect higher-rate taxpayers from January 2013. For the 2012/13 tax year, the higher-rate threshold – the point at which an individual is liable to the higher rate of tax – was £42,475. Since then, the higher-rate threshold has risen broadly in line with inflation but the £50,000 threshold for the HICBC has remained static.

‘The government has so far resisted calls to up-rate the £50,000 threshold, but this is no longer tenable now the higher-rate threshold will overtake it from 6 April 2021.’

In its Budget submission, the LITRG calls for the point at which child benefit is fully clawed back to increase from £60,000 to £75,000.

The government will present the 2021 Budget on Wednesday 3 March.

Internet link: LITRG news

Government urged by CBI to act on COVID business support ahead of Budget

The Confederation of British Industry (CBI) has urged the government to provide more financial assistance to businesses affected by the coronavirus (COVID-19) pandemic ahead of the Budget on 3 March 2021.

The business group has outlined support measures required to help protect UK businesses through the spring. It has called for:

an extension of the Coronavirus Job Retention Scheme (CJRS) beyond April to the end of June
a lengthening of repayment periods for existing VAT deferrals until June 2021; and
an extension of the business rates holiday for at least another three months.

The CBI has also called for an announcement of details of the successor of the Coronavirus Business Interruption Loan Scheme (CBILS).

Tony Danker, Director General of the CBI, said:

‘The Budget comes at a crucial time for the UK. The Government’s support from the very start of this crisis has protected many jobs and livelihoods, and progress on the vaccine rollout brings real cause for optimism.

‘But almost a year of disrupted demand and extensive restrictions to company operations is taking its toll. Staff morale has taken a hit. And business resilience has hit a sobering new low.

‘The Government must once again stand shoulder-to-shoulder with businesses to underwrite support for the duration, helping viable enterprises to last the course.

‘Many tough decisions for business owners on jobs, or even whether to carry on, will be made in the next few weeks. If the Government plans to continue its support then I urge them to take action before the Budget which is still more than six weeks away.

‘The Government has done so much to support UK business through this crisis, we don’t want to let slip all the hard work from 2020 with hope on the horizon.

‘The rule of thumb must be that business support remains in parallel to restrictions and that those measures do not come to a sudden stop, but tail off over time. Just as the lifting of restrictions will be gradual, so must changes to the Government’s sterling support to businesses.’

Internet link: CBI article

Supreme Court backs small firms on business interruption claims

The UK’s Supreme Court has found in favour of small firms receiving payments from COVID-19 business interruption insurance policies.

The test case was brought against insurers by the Financial Conduct Authority (FCA). The ruling means that thousands of small businesses are now set to receive insurance payouts covering losses from the first national lockdown.

Commenting on the ruling, Flora Hamilton, Financial Services Director at the Confederation of British Industry (CBI), said:

‘At such an uncertain time, this court case provides much-needed clarity to companies across the UK, and relief for smaller firms struggling with cashflow.

‘This is significant news for insurers, and regulators will need to work closely with the industry as policies, products and processes are updated to reflect this ruling.’

Internet links: CBI article FCA news

Newsletter – February 2020

Posted on February 7, 2020 by Henry Cooper

Enews – February 2020

In this month’s Enews we report on a number of areas including updates on the Brexit Withdrawal Agreement and the UK and Scottish Budgets. With developments on off-payroll working, overdraft fees, HMRC’s report of bizarre excuses and a new statutory entitlement to leave and pay there are lots of areas to update you on.

Brexit – transition period

Scottish Budget

Budget Day 11 March

A decade of bizarre excuses and expense claims

Off-payroll working

Tax relief on professional fees and subscriptions

Changes to overdraft fees

New right to paid parental bereavement leave

Brexit – transition period

The leaders of the UK and European Union signed the Withdrawal Agreement, and the UK left the EU on 31 January 2020. However the UK is now in the transition or implementation period during which time it is ‘business as usual’ as the UK is covered by EU rules until the end of the year. By 2021 the UK aims to have agreed a deal on future arrangements with the EU and the rest of the world.

HMRC has contacted businesses in the UK who may import and export between the UK and the EU to explain what they can do to prepare for changes to customs arrangements after the UK has left the EU.

No change during the implementation period

Between 1 February and 31 December 2020, there will be an implementation period. HMRC has confirmed that there will be no changes to the terms of trade with the EU or the rest of the world during this time.

From 1 January 2021, the way businesses trade with the EU will change and HMRC is reminding businesses that they should prepare for life outside the EU, including ensuring they are ready for customs arrangements.

HMRC is advising businesses to:

make sure they have a UK Economic Operator Registration and Identification (EORI) number
prepare to make customs declarations.

HMRC has posted letters to 220,000 VAT registered businesses advising them on the current position.

We will advise you on the progress of negotiations and what these will mean for your business.

Internet link: GOV.UK HMRC letters

Scottish Budget

Minister for Public Finance and Digital Economy, Kate Forbes, delivered the 2020/21 Scottish Draft Budget on Thursday 6 February 2020, setting out the Scottish Government’s financial and tax plans.

The current Scottish income tax rates and bands for 2019/20 and the proposed rates and bands for 2020/21 on non-savings and non-dividend income are as follows:

Scottish Bands 2019/20	Scottish Bands 2020/21	Band name	Scottish Rates
£12,501* – £14,549	£12,501* – £14,585	Starter	19%
£14,550 – £24,944	£14,586 – £25,158	Scottish Basic	20%
£24,945 – £43,430	£25,159 – £43,430	Intermediate	21%
£43,431 – £150,000**	£43,431 – £150,000**	Higher	41%
Above £150,000**	Above £150,000**	Top	46%

* assuming the individual is entitled to a full UK personal allowance

* Assumes individuals are in receipt of the Standard UK Personal Allowance.

** the personal allowance will be reduced if an individual’s adjusted net income is above £100,000. The allowance is reduced by £1 for every £2 of income over £100,000.

In the 2018 Autumn Budget, the UK Government announced that the UK-wide personal allowance would be frozen at its current level of £12,500 in 2020/21. The UK higher rate tax point for 2020/21 is also expected to be frozen at the 2019/20 amount of £50,000 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income are expected to be maintained at 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over £150,000.

Land and Buildings Transaction Tax change to non-residential rates and bands

The Government announced the introduction of a new 2% band for non-residential leases which will come into effect for contracts entered into on or after 7 February 2020. The rates and bands for non-residential LBTT transactions are as follows:

Non-residential transactions Purchase price	Rate	Non-residential leases Net present value of rent payable	Rate
Up to £150,000	0%	Up to £150,000	0%
£150,001 to £250,000	1%	£150,001 to £2 million	1%
Over £250,000	5%	Over £2 million	2%

Internet link:GOV.SCOT Budget

Budget Day 11 March

Chancellor Sajid Javid has announced that he will deliver the 2020 Budget on Wednesday 11 March 2020.

The 2020 Budget will be the first to be delivered after the UK’s departure from the EU on 31 January 2020.

It is also Mr Javid’s first Budget as Chancellor, following the cancellation of last November’s planned Budget due to the General Election.

Mr Javid said:

‘People across the country have told us that they want change. We’ve listened and will now deliver.

‘With this Budget we will unleash Britain’s potential – uniting our great country, opening a new chapter for our economy and ushering in a decade of renewal.’

In the Budget announcement, the government said that it will prioritise the environment, and build on recent announcements to boost spending on public services and tackle the cost of living.

We will update you on Budget announcements.

Internet link: GOV.UK news

A decade of bizarre excuses and expense claims

Vengeful witches and pet hamsters feature in HMRC’s list of imaginative excuses and expense claims, which has been published in the run up to the self assessment deadline.

HMRC has compiled a list of the weirdest unsuccessful excuses from the last decade.

The list includes one taxpayer who claimed their mother-in law was a witch who had cursed them, hamsters and dogs that had eaten the post and a taxpayer who was up a mountain without internet access.

HMRC also reported questionable expense claims including pet food for a Shih Tzu ‘guard dog’ and 250 days of claims for a £4.50 sausage and chips meal.

Commenting on the list, Angela MacDonald, HMRC Director General of Customer Services, said:

‘Each year, we try to make it as easy and simple as possible for our customers to complete their tax returns and the majority make the effort to do their’s right and on time.

‘We always offer help to those who have a genuine excuse for not submitting their return on time. It is unfair to the majority of honest taxpayers when others make bogus claims.’

Internet link: GOV.UK news

Off-payroll working

HMRC has now published draft secondary legislation for the off-payroll working rules that are due to come into force in April this year.

In 2017, HMRC introduced new off-payroll rules to the public sector, which saw some contractors’ net income cut significantly. HMRC also shifted the responsibility for compliance from individual contractors to public bodies or recruitment agencies.

From 6 April 2020, the new tax rules will use the 2017 changes as a starting point for the extension to medium and large organisations in the private sector. These reforms will shift the responsibility for assessing employment status to the medium and large organisations engaging the individual worker via and intermediary.

The new draft legislation is open for consultation until 19 February 2020.

Jesse Norman, the Financial Secretary to the Treasury, said:

‘We recognise that concerns have been raised about the forthcoming reforms to the off-payroll working rules. The purpose of this consultation is to make sure that the implementation of these changes in April is as smooth as possible.’

Internet link: GOV.UK consultations

Tax relief on professional fees and subscriptions

Employees are allowed to claim tax relief on their annual professional fees or subscriptions to some HMRC approved professional organisations. The costs are tax deductible generally where the individual must have membership to do their job or it is helpful for their work. Where the fees are paid by the individual’s employer this will not generally result in a benefit in kind charge.

HMRC has updated the list of approved bodies which also includes not only details of the professional bodies that are approved but details of qualifying annual subscriptions for journals.

Internet link: GOV.UK professional subscriptions

Changes to overdraft fees

The Financial Conduct Authority (FCA) has confirmed it will introduce new rules in April this year that it says will make the costs of overdrafts clearer and easier to compare.

The rules will mean banks can only charge for overdraft users a simple annual interest rate – without additional fees and charges.

According to the FCA, seven out of ten overdraft users will be better off or see no change in cost.

Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said:

‘Our changes expose the true cost of an overdraft. We have eliminated high prices for unarranged overdrafts.

‘This will result in a fairer distribution of charges, helping vulnerable consumers, who were disproportionately hit by high unarranged overdraft charges, and many people who use their overdraft from time-to-time.’

However, many banks have responded by hiking the interest rates they charge on overdrafts and several of the largest providers are set to introduce rates of up to 40%.

The FCA has sent a letter to the providers asking them to explain what influenced their decision and to ask how the banks will deal with any customers who could be worse off following the changes.

It said some firms could reduce or waive interest for customers who are in financial difficulty because of their overdraft.

Internet links: FCA press release FCA letter

New right to paid parental bereavement leave

The government has confirmed that parents who suffer the loss of a child will be entitled to two weeks’ statutory leave.

Under the new entitlement working parents who lose a child under the age of 18 will get two weeks’ statutory leave and where they meet the necessary conditions a legal right to two weeks’ paid bereavement leave.

Business Secretary Andrea Leadsom, stated:

‘The Parental Bereavement Leave and Pay Regulations, which will be known as Jack’s Law in memory of Jack Herd whose mother Lucy campaigned tirelessly on the issue, will implement a statutory right to a minimum of 2 weeks’ leave for all employed parents if they lose a child under the age of 18, or suffer a stillbirth from 24 weeks of pregnancy, irrespective of how long they have worked for their employer.

This is the most generous offer on parental bereavement pay and leave in the world, set to take effect from April.’

Under the new rules, parents will be able to take the leave as either a single block of two weeks, or as two separate blocks of one week each taken at different times across the first year after their child’s death.

The right to Parental Bereavement Leave (PBL) will apply to all employed parents who lose a child under the age of 18, or suffer a stillbirth (from 24 weeks of pregnancy), irrespective of how long they have been with their employer.

Parents with at least 26 weeks’ continuous service with their employer and weekly average earnings over the lower earnings limit (£118 per week for 2019/20) will also be entitled to Statutory Parental Bereavement Pay (SPBP), paid at the statutory rate of £148.68 per week (for 2019/20), or 90% of average weekly earnings where this is lower.

The government has confirmed SPBP will be administered by employers in the same way as existing family-related statutory payments such as Statutory Paternity Pay.

Internet link: GOV.UK news

Newsletter – January 2019

Posted on January 16, 2019 by Henry Cooper

Enews January 2019

In this month’s Enews we consider pertinent announcements from the Scottish Budget including changes to income tax and Land and Buildings Transaction Tax. Meanwhile, the Pensions Regulator is advising employers to get ready for increased pension contributions. With a reminder to employees to claim tax relief on their expenses and the latest list of deliberate tax defaulters, there are lots of issues to update you on.

Scottish Budget 2018 income tax changes

Scottish Budget 2018 property tax changes

HMRC reminder to employees to claim their tax deductible expenses

Pension contribution increases ahead

HMRC publish details of deliberate tax defaulters

Self assessment deadline approaching

Scottish Budget 2018 income tax changes

Finance Secretary Derek Mackay delivered the 2019/20 Scottish Draft Budget on Wednesday 12 December 2018 setting out the Scottish government’s financial and tax plans. The announcement had been timed to take place after Chancellor of the Exchequer Philip Hammond delivered the UK Budget on 29 October 2018. The Finance Secretary announced changes to Scottish income tax. Contact us for advice on how the Scottish Budget impacts you.

Scottish Income tax

The government has devolved powers to set the rates and bands of income tax (other than those for savings and dividend income) which apply to Scottish resident taxpayers. The Scottish Budget announced the following income tax rates and bands for 2019/20. These will be considered by the Scottish Parliament, and an agreed Scottish Rate Resolution will set the final Scottish Income tax rates and bands for 2019/20.

The current rates and bands for 2018/19 and the proposed rates and bands for 2019/20 on non-savings and non-dividend income are as follows:

Scottish Bands 2018/19	Scottish Bands 2019/20	Band Name	Scottish Rates
Over £11,850* – £13,850	Over £12,500* – £14,549	Starter	19%
Over £13,850 – £24,000	Over £14,549 – £24,944	Scottish Basic	20%
Over £24,000 – £43,430	Over £24,944 – £43,430	Intermediate	21%
Over £43,430 – 150,000**	Over £43,430 – 150,000**	Higher	41%
Over £150,000**	Over £150,000**	Top	46%

* assuming the individual is entitled to a full UK personal allowance

** the personal allowance will be reduced if an individual’s adjusted net income is above £100,000. The allowance is reduced by £1 for every £2 of income over £100,000.

The personal allowance is currently £11,850 for 2018/19. The personal allowance for 2019/20 will be £12,500.

The UK higher rate tax point for 2019/20 is set at £50,000 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income have been maintained at 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over £150,000.

For 2019/20 Scottish taxpayers with employment income of approximately £27,000 will pay the same amount of income tax as those with similar income in the rest of the UK. For higher earners, with pay of £150,000, a Scottish taxpayer will pay approximately an extra £2,670 of income tax than those on similar income in the rest of the UK.

Internet link: GOV.SCOT budget

Scottish Budget 2018 property tax changes

In the 2019/20 Scottish Draft Budget, Derek Mackay announced changes to Scottish Land and Buildings Transaction Tax (LBTT) which are considered below.

The government’s stated policy priority for residential Land and Buildings Transaction Tax (LBTT) remains to help first-time buyers and to assist people as they progress through the property market. Since its introduction, this policy has ensured that over 80% of taxpayers benefit from LBTT by paying either no tax or less tax than in England. The current rates and bands are as follows:

Residential property	Rate
0 – £145,000	0%
£145,001 – £250,000	2%
£250,001 – £325,000	5%
£325,001 – £750,000	10%
£750,001 and over	12%

The rates apply to the portion of the total value which falls within each band.

First-time buyer relief

A relief applies for first-time buyers of properties up to £175,000. The relief raises the zero tax threshold for first-time buyers from £145,000 to £175,000. First-time buyers purchasing a property above £175,000 also benefit from the relief on the portion of the price below the threshold.

Higher rates for additional residential properties

Higher rates of LBTT are charged on purchases of certain residential properties, such as buy to let properties and second homes. Although these are the main targets of the higher rates, some other purchasers may have to pay the higher rates.

The Additional Dwelling Supplement (ADS) potentially applies if, at the end of the day of the purchase transaction, the individual owns two or more residential properties and is not replacing their main residence. Care is needed if an individual already owns, or partly owns, a property and transacts to purchase another property without having disposed of the first property. An 18 month rule helps to remove some transactions from the additional rates (or allows a refund).

The Government announced an increase in the ADS from 3% to 4% from 25 January 2019, but this increase will not apply if the contract for a transaction was entered into prior to 12 December 2018. Existing arrangements allowing for the supplement to be reclaimed will continue.

Changes for non-residential rates and bands

The Government will reduce the lower rate of non-residential LBTT from 3% to 1%, increase the upper rate from 4.5% to 5% and reduce the starting threshold of the upper rate from £350,000 to £250,000. These changes come into force from 25 January 2019, but will not apply if the contract for a transaction was entered into prior to 12 December 2018.

The revised rates and band for non-residential LBTT transactions are as follows:

Non-residential transactions

Purchase price	Rate	Non-residential leases Net present value of rent payable	Rate
Up to £150,000	0%	Up to £150,000	0%
£150,001 to £250,000	1%	Over £150,000	1%
Over £250,000	5%

Internet link: GOV.SCOT budget

HMRC reminder to employees to claim their tax deductible expenses

HMRC is reminding employees that they may be able to claim a tax rebate on their work related expenses. HMRC estimate that millions of employees, particularly those working in the service industry, could be entitled to a tax refund. Workers, including nurses, hairdressers, construction workers and those working in retail and food sectors, may be able to claim tax rebates.

Individuals in these types of roles sometimes have to pay for work-related expenses including car mileage, replacing or repairing small tools, or maintaining branded uniforms.

Where these types of expenses are incurred, employees may be entitled to claim a tax refund. HMRC is advising individuals to go directly to GOV.UK to check if they can claim extra cash back. HMRC advise taxpayers to log in to their Personal Tax Account to claim their tax relief online and that approved claims should be refunded within three weeks.

Financial Secretary to the Treasury, Mel Stride MP, said:

‘We know what a difference tax relief can make to hard-working customers, especially at this time of year. HMRC is keen to make sure customers get all the relief they’re entitled to, by using the online service.

Tax relief isn’t available for all employment expenses, so the online Check If You Can Claim tool is very helpful – then if your claim is approved, your full tax relief will be paid directly into your bank account.

The majority of claims are for repairing or replacing tools and branded uniforms, professional subscriptions and mileage. Healthcare workers, people working in food and retail, and those in the construction industry are among the top professions to claim from HMRC.

HMRC is advising that taxpayers may be able to claim tax relief on the cost of:

repairing or replacing small tools needed to do their job (for example, scissors or an electric drill)
cleaning, repairing or replacing specialist clothing (for example, a branded uniform or safety boots)
business mileage (not commuting)
travel and overnight expenses
professional fees and subscriptions.

Internet link: GOV.UK news

Pension contribution increases ahead

The Pensions Regulator (TPR) is reminding employers that from 6 April 2019, the amount that will need to be paid into a workplace pension will increase to an overall minimum of 8%, with employers contributing at least 3% of this total amount.

TPR is now starting to write to all employers to remind them of their duties. TRP website provides further information on the increases and a link to a letter template advising employees of the increase.

TPR is advising employers that they should also check with their payroll software provider and pension provider to ensure plans are in place ahead of 6 April 2019.

Please contact us if you would like help with your payroll or pensions auto enrolment compliance.

Internet link: TPR increase

HMRC publish details of deliberate tax defaulters

HMRC have updated the list of deliberate tax defaulters. The list contains details of taxpayers who have received penalties either for:

deliberate errors in their tax returns
deliberately failing to comply with their tax obligations

HMRC may publish information about a deliberate tax defaulter where an investigation has been carried out and the taxpayer has been charged one or more penalties for deliberate defaults and the penalties involve tax of more than £25,000. Details are only published once the penalties are final.

Internet link: GOV.UK publications

Self assessment deadline approaching

The deadline for submitting your 2017/18 self assessment return is 31 January 2019. The deadline applies to taxpayers who need to complete a tax return and make direct payments to HMRC in respect of their income tax, Classes 2 and 4 National Insurance Contributions (NIC), capital gains tax and High Income Child Benefit Charge liabilities.

There is a penalty of £100 if a taxpayer’s return is not submitted on time, even if there is no tax due or the return shows that they are due a tax refund.

The balance of any outstanding income tax, Classes 2 and 4 NIC, capital gains tax and High Income Child Benefit Charge for the year ended 5th April 2018 is also due for payment by 31 January 2019. Where the payment is made late interest will be charged.

The first payment on account for 2018/19 in respect of income tax and any Class 4 NIC or High Income Child Benefit Charge is also due for payment by 31st January 2019.

HMRC revealed that more than 2,600 taxpayers filed their return on Christmas Day. If you would like help with your return or agreeing your tax liability please contact us.

Internet links: GOV.UK self assessment GOV.UK press release

Newsletter – May 2018

Posted on May 11, 2018 by Henry Cooper

eNews May 2018

In this month’s eNews we report on the latest announcement from HMRC regarding Making Tax Digital. We also consider the looming deadline for GDPR, changes to tax reliefs following the Scottish Budget and issues to do with EMI share options. With articles on benefits in kind forms P11D,the VAT fuel scale charges and a new benefits exemption for workplace charging of employee vehicles there is lots to consider.

Changing priorities at HMRC

GDPR compliance deadline looms

Tax reliefs following the Scottish Budget

EMI options may not qualify for tax relief

P11D deadline approaching

VAT fuel scale charges

HMRC consultation on benefits exemption for workplace charging facilities

Changing priorities at HMRC

Over the coming years, the government plans to phase in its landmark Making Tax Digital (MTD) initiative, which will see taxpayers move to a fully digital tax system. However HMRC has shared a statement about how they are prioritising change in the department and as a result some parts of MTD will be delayed. HMRC has acknowledged the challenges in:

exiting the EU and
the ambition to become the world’s most digitally advanced tax authority.

While some of the finer details are still being decided, HMRC have announced that, to achieve the above, some aspects of MTD are to be delayed. HMRC still plan to go ahead with MTD for VAT from April 2019. Information on some of the delayed projects is set out below:

Plans to introduce further digital services for individuals

There will be ‘halted progress’ on simple assessment and real-time tax code changes. Additional services in this area will only be added where they reduce phone or post contact or otherwise deliver ‘significant savings’.

Other digitalisation of services affecting fewer individuals

This includes Inheritance Tax payments, Tax Advantaged Venture Capital Schemes applications and PAYE Settlement Agreements

Creation of the single digital account for all businesses

HMRC has confirmed this will now happen at a ‘slower pace’. HMRC has confirmed the single digital account remains an aim of the department and they stress it will not impact the delivery of Making Tax Digital.

Voluntary Making Tax Digital for Business service for income tax

HMRC has confirmed this will continue to be available for any sole trader wishing to make quarterly updates to HMRC.

Mandatory Making Tax Digital for VAT – still ‘on track’

HMRC stated that MTD for VAT is still on track. VAT registered businesses with a turnover in excess of the £85,000 VAT registration threshold, will be required to comply with the requirements of MTD for VAT for all VAT periods commencing on or after 1 April 2019.

In addition, the government has confirmed that, it will not mandate any further MTD for Business changes before 2020, at the earliest.

Internet link: ICAEW blog

GDPR compliance deadline looms

With less than one month until the introduction of the new General Data Protection Regulation (GDPR), the Federation of Small Businesses (FSB) is warning small and medium-sized enterprises (SMEs) that time is running out for them to prepare.

The business group stated that small businesses face an ‘uphill challenge’ in ensuring that they are compliant by the date when GDPR takes effect of 25 May 2018.

Under the new rules, organisations which collect, store and process individuals’ personal data will be subject to new obligations, with an increased emphasis on accountability and transparency.

The financial penalties for failing to comply are severe, with fines costing up to €20 million or up to 4% of total annual worldwide revenue, whichever is the greater.

Mike Cherry, National Chairman of the FSB said:

‘As the GDPR deadline swiftly approaches, there is a real danger that many small businesses are yet to have adequately prepared for the changes. Fortunately for these businesses, there is still time on the clock to start, or finish, their preparations.’

‘The GDPR is the largest shake-up of data protection laws for years, and whether you are a personal trainer or a consultant, most businesses will have to implement changes to their current practices to make sure they are complying with the new rules.’

Further information on the GDPR can be found on the ICO website.

Internet links: ICO guidance FSB press release

Tax reliefs following the Scottish Budget

The Government has stated that it will ensure that tax reliefs continue to work as they were intended as the new Scottish Income Tax rates and bands are introduced from 6 April 2018. The Government has confirmed:

Marriage Allowance
Marriage Allowance allows taxpayers to transfer 10% of their tax-free Personal Allowance to their spouse or civil partner, reducing their tax bill by up to £230 in 2017 to 2018, and £238 in 2018/19. The UK government will ensure that all those claiming Marriage Allowance in Scotland can continue to do so at the current rate (20%).
Gift Aid
Gift Aid allows charities to claim back 25p for every £1 donated. The UK government will make changes to ensure that Scottish taxpayers can benefit from the right rate of tax relief on Gift Aid. Gift Aid will continue to be paid to charities at the basic rate, with Scottish taxpayers able to claim the correct amount of additional relief on top of this.
Pensions relief at source
The UK government confirmed that current processes will continue while it works with stakeholders to establish how this will work in the longer term. For 2018/19, Scottish taxpayers who receive relief on their contributions at source will, therefore, continue to receive relief in their pension pot at 20%, with no adjustment for those taxed at a rate of less than 20%, and scope for those taxed at a rate higher than 20% to claim additional relief.
Social security pension lump sum
The UK government will make changes so that Scottish taxpayers who receive a social security pension lump sum will be taxed, where appropriate, at the new Scottish starter rate.
Finance cost relief This will continue to apply at 20%, the same rate applicable to landlords across the UK.

Please contact us if you have queries on the workings of any of these tax reliefs for Scottish taxpayers and those resident elsewhere across the United Kingdom.

Internet link GOV.UK changes to tax relief Scotland

EMI options may not qualify for tax relief

The Enterprise Management Incentive (EMI) allows selected employees (often key to the employer) to be given the opportunity to acquire a significant number of shares in their employer through the issue of options. An EMI can offer significant tax advantages as the share option scheme allows options to be granted to employees which may allow the shares to be received without any tax bill arising until the shares are sold.

HMRC have warned that EMI share options granted in the period from 7 April 2018 until EU State Aid approval is received may not be eligible for the tax advantages presently afforded to option holders, and accordingly share options granted in that period as EMI share options may necessarily fall to be treated as non-tax advantaged employment-related securities options meaning that the options may be taxable when exercised.

To read more, please visit the link below or contact us for specific advice.

Internet link: GOV.UK EMI Bulletin

P11D deadline approaching

The forms P11D which report details of benefits and some expenses provided to employees and directors for the year ended 5 April 2018, are due for submission to HMRC by 6 July 2018. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.

Employees pay tax on benefits provided as shown on the P11D, generally via a PAYE coding notice adjustment or through the self assessment system. Significant changes were introduced to the rules for reporting expenses from 6 April 2016.

Some employers ‘payroll’ benefits and in this case the benefits do not need to be reported on forms P11D but employers should advise employees of the amount of benefits payrolled.

In addition, regardless of whether the benefits are being reported via P11D or payrolled the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July (or 22nd for cleared electronic payment).

HMRC produce an expenses and benefits toolkit. The toolkit consists of a checklist which may be used by advisers or employers to check they are completing the forms correctly.

If you would like any help with the completion of the forms or the calculation of the associated Class 1A NIC please get in touch.

Internet links: HMRC guidance Toolkit

VAT fuel scale charges

HMRC have issued details of the updated VAT fuel scale charges which apply from the beginning of the next prescribed VAT accounting period starting on or after 1 May 2018.

VAT registered businesses use the fuel scale charges to account for VAT on private use of road fuel purchased by the business.

Please do get in touch for further advice on this or other VAT matters.

Internet link: GOV.UK fuel scale charges

HMRC consultation on benefits exemption for workplace charging facilities

HMRC are consulting on the tax exemption which will apply from 6 April 2018 on workplace electric charging facilities used by employees.

It was announced in the Autumn Budget 2017 that the government intends to implement an exemption for the benefit of electricity provided by an employer, at the workplace, to charge electric or plug-in hybrid vehicles. The necessary legislation will be included in the Finance Bill later this year and its effect will be made retrospective to 6 April 2018.

This means that there is no need for employers to report the value of electricity provided for the workplace charging of employees’ vehicles from that date.

This consultation seeks comments on workplace charging tax exemptions for electric and plug-in hybrid vehicles.

This guidance will be of interest to employers that pay taxable benefits to employees and provide electric charging points for employee use and the provision of workplace charging facilities, which vehicles the exemption covers and the qualifying conditions of the exemption.

Internet link: GOV.UK consultations/draft guidance

Newsletter – January 2018

Posted on January 5, 2018 by Henry Cooper

eNews January 2018

In this month’s eNews we report on the government’s proposals on auto enrolment, the Scottish draft budget and their plans for five income tax rates and changes to Land and Buildings Transaction Tax. We also include an announcement from the Welsh Assembly on the proposals for Land Transaction Tax.

With details of an HMRC iTunes scam and the withdrawal of options to pay HMRC at the Post Office and via personal credit card there is lots to update you on.

Scottish Draft Budget

Land and Buildings Transaction Tax and First-Time Buyer Relief

Welsh Land Transaction Tax

Proposals to extend pensions auto enrolment to younger workers

Paying HMRC? Not at the post office or by credit card

HMRC warning about iTunes gift card scam

Scottish Draft Budget

Finance Secretary Derek Mackay delivered the 2018/19 Scottish Draft Budget on Thursday 14 December 2017 setting out the Scottish government’s financial and tax plans.

The Scottish government has the power to set the rates and bands of income tax (other than those for savings and dividend income) which apply to Scottish resident taxpayers.

Since 6 April 2016 the rates and bands of Scottish income tax have been frozen at 20% and the Scottish higher and Scottish additional rates at 40% and 45% respectively. For 2017/18 the higher rate threshold in Scotland is £43,000 whilst the threshold in the rest of the UK is £45,000. This means that a Scottish higher rate taxpayer will pay £400 more tax in 2017/18 than a UK higher rate taxpayer, being £2,000 at the marginal rate of 20%.

For 2018/19 the rates and tax bands applicable to Scottish taxpayers on non-savings and non dividend income will be as follows:

Scottish Bands	Band name	Scottish Rates
Over £11,850* – £13,850	Starter	19%
Over £13,850 – £24,000	Basic	20%
Over £24,000 – £44,273	Intermediate	21%
Over £44,273 – £150,000**	Higher	41%
Over £150,000**	Top	46%

* assuming the individual is entitled to a full UK personal allowance

** the personal allowance will be reduced if an individual’s adjusted net income is above £100,000. The allowance is reduced by £1 for every £2 of income over £100,000

The UK higher rate tax point for 2018/19 has been set at £46,350 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income have been maintained at 20%, 40% and 45% respectively.

For 2018/19 Scottish taxpayers with employment income of £26,000 will pay the same amount of income tax as those with the similar income in the rest of the UK. For higher earners, with pay of £150,000, a Scottish taxpayer will pay an extra £1,770 of income tax than those on similar income in the rest of the UK.

Internet link: GOV.SCOT publication

Land and Buildings Transaction Tax and First-Time Buyer Relief

The Scottish government announced that they will introduce a new Land and Buildings Transaction Tax (LBTT) relief for first-time buyers of properties up to £175,000. The relief will raise the zero tax threshold for first-time buyers from £145,000 to £175,000, and according to the Scottish government 80% of first-time buyers in Scotland will pay no LBTT at all. The Scottish government also announced that first-time buyers buying a property above £175,000 will also benefit from the relief on the portion of the price below the threshold.

The Scottish government announced that they will launch a consultation on the policy before introducing the first-time buyer relief in 2018/19. The relief for first-time buyers paying Stamp Duty Land Tax on first homes in the rest of the UK was introduced from 22 November 2017.

Internet link: GOV.SCOT publication

Welsh Land Transaction Tax

The Welsh Parliament have announced changes to proposed rates and bands for Land Transaction Tax which is to be introduced in Wales from 1 April 2017.

The rates and bands will be confirmed in January 2018 but details of the proposed rates and bands are included in the following statement.

Internet links: GOV.WALES land-transaction-tax GOV.WALES statement

Proposals to extend pensions auto enrolment to younger workers

The government has announced proposals to extend pensions auto enrolment to include younger workers and to amend the way in which contributions are calculated.

According to the press release:

‘The review’s recommendations, which will now be progressed and legislated for where necessary, will see:

automatic enrolment duties continuing to apply to all employers, regardless of sector and size
young people, from 18 years old, benefiting from automatic enrolment, introducing 900,000 young people into saving an additional £800 million through a workplace pension
workplace pension contributions calculated from the first pound earned, rather than from a lower earnings limit – this will bring an extra £2.6 billion into pension saving, improving incentives for people in multiple jobs to opt-in, and simplifying the way employers assess their workforces and calculate contributions
the earnings trigger remaining at £10,000 for 2018/19, subject to annual reviews
contribution levels reviewed after the implementation of the 8% contribution rate in 2019
the government testing a series of ‘targeted interventions’ – including through opportunities to work with organisations who act as ‘touch points’ for the 4.8 million self-employed people, such as banks and those who contract labour – to explore how technology can be used to increase their pension saving.’

Under auto enrolment, employers are required to automatically enrol all eligible workers (generally employees) into a workplace pension scheme and pay a minimum contribution into their pension. Employees do, however, have the right to opt out of auto enrolment.

Currently workers who are aged between 22 and the State Pension Age with earnings of £10,000 per annum are eligible to be auto enrolled. Younger employees and those who do not meet the minimum income requirement can opt to make pension contributions.

The government plan to reduce the lower age limit to 18 by the mid 2020s, in order to encourage younger workers to get into ‘the habit of saving’.

David Gaulke, Work and Pensions Secretary said:

‘We are committed to enabling more people to save while they are working, so that they can enjoy greater financial security when they retire. We know the world of work is changing, so it is only right that pension saving does too. This ambitious package will see more people than ever before helped onto the path towards building a secure retirement.’

Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), stated:

‘Requiring employers to contribute from the first pound of earnings will mean that, by 2019, hundreds of thousands of small employers will have to pay up to £180 more per employee each year. ‘For employers in certain sectors, such as care and hospitality where margins are tight, this will really add up.’

Internet links: GOV.UK news FSB press release

Paying HMRC? Not at the post office or by credit card

With many individuals having tax payments to make at the end of this month it is important to be aware that HMRC have announced that they will no longer accept payments made at the Post Office or by credit card.

HMRC have announced that with effect from 15 December 2017 it will no longer be possible to make payments to HMRC at a post office. The reason for this change is that contract with Santander, which allowed this method of payment, has expired. HMRC are advising that where electronic payment is not possible, payments can still be made at bank branches using a payslip and payments for self assessment income tax can still be posted to HMRC.

From 13 January 2018 it will no longer be possible to pay HMRC using a personal credit card. The timing of this change coincides with the date from which HMRC will no longer be permitted to charge fees for payment by credit card.

Internet link: ICAEW blog

HMRC warning about iTunes gift card scam

HMRC are urging people to stay safe from a phone scam that is conning elderly and vulnerable people out of thousands of pounds.

The scammers are preying on victims by cold calling them and impersonating an HMRC member of staff. They advise the victim that they owe a large amount of tax which they can only pay off by digital vouchers and gift cards, including Apple’s iTunes vouchers.

The scam victims are told to go to a local shop, to purchase vouchers, and then read out the redemption codes to the scammer. The conmen then sell on the codes or purchase high value products, all at the victim’s expense.

According to HMRC the scammers frequently use intimidation to get what they want, threatening to seize the victim’s property or involve the police. The use of vouchers is an attractive scam as they are easy to sell on and hard to trace once used.

HMRC have confirmed that they would never request the settling of debt through such a method.

According to figures from Action Fraud, the UK’s national fraud reporting centre, between the beginning of 2016 and August this year there have been over 1,500 reports of this scam, with the numbers increasing in recent months. The vast majority of the victims are aged over 65 and suffered an average financial loss of £1,150 each.

HMRC is working closely with law enforcement agencies, Apple and campaign groups to make sure the public know how to spot the scam and who to report it to.

HMRC’s Director General of Customer Services, Angela MacDonald, said:

‘These scammers are very confident, convincing and utterly ruthless. We don’t want to see anyone fall victim to this scam just before Christmas. That’s why we’re working closely with crime fighters to ensure taxpayers know how to avoid it.

These scams often prey on vulnerable people. We urge people with elderly relatives to warn them about this scam and remind them that they should never trust anyone who phones them out of the blue and asks them to pay a tax bill. If you think you’ve been a victim you should contact Action Fraud immediately.’

Internet link: GOV.UK news

Newsletter – November 2017

Posted on November 6, 2017 by Henry Cooper

Enews – November 2017

In this month’s eNews we report on Budget announcements and the introduction of new taxes in Wales and Scotland of Land Transaction Tax and Air Departure Tax. We also consider HMRC’s new method of Simple Assessment for certain taxpayers, the Criminal Finances Act, proposals for Help to Save Accounts and new guidance for employers.

Autumn Budget wishlist

Simple Assessment

Welsh Land Transaction Tax

Scottish Budget proposals

Criminal Finances Act

Help to Save Accounts

New guidance for employers

Autumn Budget wishlist

With the Chancellor’s first Autumn Budget due to be presented on 22 November, professional bodies and business groups are setting out their Budget wishlists. Recommendations include changes to Business Rates, a ‘Brexit ready’ Budget, incentives for business and an appeal for changes to the Apprenticeship Levy. The ICAEW is urging that the government give sufficient attention to Making Tax Digital to ensure a successful roll out and making the necessary changes to accommodate Brexit.

Meanwhile, the Federation of Small Businesses (FSB) has urged Philip Hammond to deliver a ‘Brexit-ready’ Budget, which rules out any new business tax increases and maintains investment incentives.

We will update you on pertinent announcements.

Internet links: CBI FSB ICAEW autumn budget

Simple Assessment

HMRC have changed the way in which they will assess some taxpayers removing the need for these individuals to complete a Self Assessment Tax Return. These changes took effect from September 2017.

The affected taxpayers fall into one of two categories:

new state pensioners with income more than the personal tax allowance (£11,000) in 2016/17; and
employees or pensioners with PAYE tax codes who have underpaid tax and who cannot have that tax collected through their tax code because it is too high to code out.

HMRC have also confirmed that all existing state pensioners who complete a tax return because their state pension is more than their personal allowance will be removed from self assessment in 2017/18. This may mean that some clients are dropped out of self assessment and issued an assessment instead based on the information which HMRC hold. Of course, whether the assessment is actually correct will be a different matter.

HMRC state:

‘HMRC will write to customers from September 2017 with a tax calculation. This could be a P800 or a Simple Assessment letter (PA302).

The letter will show their:

income from pay
pensions
state benefits
savings interest
employee benefits.

Customers just need to check the information is correct, and if it is they can pay their bill online or by cheque by the deadline in the letter.

If a customer thinks any information is incorrect they have 60 days to contact HMRC. For instance, if they think amounts used are wrong or HMRC didn’t act on information received.

Should customers miss the deadline they should contact HMRC to discuss their circumstances or financial penalties will be applied in line with current policy.

If customers are not happy with the follow-up response from HMRC, they have 30 days to appeal against the decision.’

If you would like help with your personal tax affairs please get in touch.

Internet link: GOV.UK briefing policy paper

Welsh Land Transaction Tax

The Welsh Assembly has announced the proposed rates and bands for land transaction tax (LTT) which is to be introduced for land and property in Wales on 1 April 2018, replacing Stamp Duty Land Tax.

Under the new rates for LTT, Wales will have the highest starting threshold for the property tax in the UK. The proposed rates are as follows:

	Residential	Non-residential
0%	£0 – £150,000	£0 – £150,000	0%
2.5%	£150,001 – £250,000	£150,001 – £250,000	1%
5%	£250,001 – £400,000	£250,001 – £1m	5%
7.5%	£400,001 – £750,000	£1m plus	6%
10%	£750,001 – £1.5m
12%	£1.5m-plus

Announcing the rates and bands, Professor Mark Drakeford, Cabinet Secretary for Finance and Local Government, said:

‘From April, Wales will introduce the first Welsh taxes in almost 800 years, supporting first-time buyers and boosting business.

The devolution of tax powers provides us with the opportunity to reshape and make changes to improve existing taxes to better meet Wales’ needs and priorities. I have always been clear that we will use these powers to help improve fairness and support jobs and economic growth in Wales.

These new progressive rates and bands for land transaction tax and landfill disposals tax will make a real difference to people’s lives; help change behaviours and deliver improvements to communities across Wales. We are being bold but balanced and leading the way in creating a fair and progressive tax system.’

Internet link: GOV.UK Wales

Scottish Budget proposals

On 14 December, the Scottish Budget will set out the Scottish Government’s financial and tax plans.

Currently taxpayers who are resident in Scotland pay income tax on their non-savings and non-dividend income at rates and thresholds determined by the Scottish Government. Scottish higher and additional rate taxpayers may pay more income tax than those with similar income in the rest of the UK. The Scottish Parliament is considering plans to radically revise the bands and possibly to introduce some further income tax rates so that middle and higher earners pay additional tax.

The Scottish Parliament are also expected to announce the details of Air Departure Tax which takes effect for flights from Scotland from April 2018.

We will keep you up to date with pertinent announcements.

Internet links: BBC news

Criminal Finances Act

The Criminal Finances Act 2017 took effect on 30 September 2017. It makes companies and partnerships, a ‘relevant body’, criminally liable if they fail to prevent the facilitation of tax evasion being carried out by an employee, anyone acting on their behalf or someone acting as an agent. If found guilty, the business could face unlimited fines and potentially further consequential sanctions within their industry or profession.

This Act has the effect of creating an offence at corporate and partnership level which does not require the directors/partners to have had any knowledge of the offence in question. Broadly, the offence is the failure to prevent the crimes of those who act for or on behalf of the corporate body or partnership instead of the need to attribute criminal acts to that body.

For a firm to be criminally liable under the new Act, there are three elements of the offence:

There must be the execution of a criminal act of tax evasion.
The crime must have been facilitated or carried out by a person associated with a relevant body.
The relevant body failed to initiate adequate prevention procedures in relation to the act carried out by the associated person.

A defence is available when it can be shown that ‘reasonable prevention procedures’ were in place to prevent the associated person from committing or facilitating the crime; or that it would have been unreasonable or disproportionate to expect such procedures to be in place.

The government advises that any reasonable prevention procedures should be based on six guiding principles:

Risk assessment – the relevant body should assess the nature and extent of its exposure to the risk of an associated person committing a criminal act;
Proportionality – the procedures should take into account the nature, scale and complexity of the relevant body’s activities;
Top level commitment – the management of the relevant body should be committed to preventing illegal acts and should foster a culture that tax evasion and its facilitation is never acceptable;
Due Diligence – with appropriate procedures put in place with respect to all people who perform services for the relevant body;
Communication – training staff and ensuring the message effectively gets across to all employees and agents;
Monitoring and reviewing – ensuring that whatever procedures are put into place are regularly reviewed and updated and amended where necessary.

Please contact us if you require further information on this issue.

Internet link: GOV.UK Tackling tax evasion corporate-offence

Help to Save Accounts

The government have announced details of a new Help to Save saving scheme. The scheme is government backed and designed to support working people on low incomes build up their savings.

The scheme, administered by HMRC, will be open to working people who receive Working Tax Credits, and those who receive Universal Credit with a household income equivalent to at least 16 hours a week at the national living wage (currently £120 a week).

Over a four year period, savers can deposit up to £50 per month.

At the end of two years, savers will get a 50% bonus based on the highest balance achieved. Savers can then carry on saving for another two years and get another 50% bonus on their additional savings.

Over four years those saving the maximum amount of £2,400 will receive bonuses of £1,200.

Money paid into the account can be withdrawn at any time but will affect the final bonus payment.

The government has confirmed that all transactions, including checking the balance and paying in savings, will be managed in an online account available through GOV.UK and that further information will be available from early 2018.

Internet link: GOV.UK help to save

New guidance for employers

HMRC have issued the October 2017 Employer Bulletin which contains a number of articles relevant to employers on payroll related issues.

HMRC are advising that following the changes to the valuation of benefits in kind (BiK) where there is a cash option available, they will consult and then issue the necessary amendments to the PAYE Regulations. The guidance will also clarify the taxable amounts that need to be reported under Optional Remuneration and salary sacrifice arrangements.

Where a BiK is taken rather than the alternative cash option, the taxable value of the benefit is the higher of the cash foregone or the taxable value under the normal BiK rules. Transitional provisions apply for arrangements entered into before 6 April 2017.

The Bulletin also includes articles on:

Changes to Business Tax Account for employers, including new data on the Apprenticeship Levy and the introduction of monthly and annual statement pages
Data matters – ensuring RTI returns are submitted on or before the date the wages are paid, that the returns are accurate, cover all employees, including those that earn less than the National Insurance lower earnings limit
Paying HMRC at the Post Office – via transcash. This option will be withdrawn from 15 December 2017
Construction Industry Scheme – clarification of when CIS deductions should be reported via the Employer Payment Summary (EPS)
Student Loans – new income thresholds from April 2018 for Plan Type 1 and 2 loans
Apprenticeships benefit your business – includes links to help on finding apprenticeship training and recruiting an apprentice.

For help with payroll matters please get in touch.

Internet link: Employer Bulletin

Newsletter – January 2017

Posted on January 4, 2017 by Henry Cooper

Enews – January 2017

In this month’s eNews we report on a number of issues including the Scottish Budget, the Apprenticeship Levy and Personal Tax accounts. We also look at the changes to National Insurance Contributions, SDLT online refund procedures and charity fines.

Scottish Budget

Apprenticeship Levy

Personal tax accounts ‘first birthday’

National Insurance changes – winners and losers

Charity fines

SDLT online refund procedures

Latest statistics show unemployment at 4.8%

Scottish Budget

On 15 December, Finance Secretary Derek Mackay delivered the 2017/18 Scottish Draft Budget setting out the Scottish Government’s financial and tax plans.

Scottish Rate of Income Tax

On 6 April 2016, a fundamental change was made to the taxation system for Scottish resident individuals. The main UK rates of income tax were reduced by 10p for Scottish taxpayers and in its place the Scottish Rate of Income Tax (SRIT) was applied equally to all Scottish taxpayers. As the SRIT was set at 10p, the overall income tax rates are currently the same as in the rest of the UK. So, those who are resident in Scotland are currently liable to two types of income tax and pay SRIT at 10% on most mainstream sources of income such as PAYE income, pensions, rental profit and profits from self-employment.

The SRIT does not apply to income from savings such as building society interest or dividends. These rates are the same for all taxpayers across the UK.

The SRIT is in place for one transitional year and will no longer apply from 6 April 2017 as the Scottish Government have exercised their powers to set the tax rates and bands (excluding the personal allowance) on non-savings, non-dividend income of Scottish taxpayers.

Tax bands 2017/18

On 15 December, Finance Secretary Derek Mackay delivered the 2017/18 Scottish Draft Budget setting out the Scottish Government’s financial and tax plans.

For 2017/18, the Scottish Government is proposing to freeze the Scottish basic rate of income tax at 20% and also to freeze the Scottish higher and Scottish additional rates at 40% and 45% respectively. In addition, the higher rate income tax threshold will increase by inflation to £43,430 in 2017/18. The Scottish Government also confirmed that the higher rate income tax threshold will increase by a maximum of inflation in all future years of this Parliament.

The Scottish Government has therefore not followed the UK Government’s plans to extend the threshold for paying the higher rate level of income tax of 40% from £43,000 to £45,000 for 2017/18. This means that a Scottish higher rate taxpayer will pay £314 more tax in 2017/18 than a UK higher rate taxpayer, being £1,570 at the marginal rate of 20% (40% – 20%).

Internet link: Scottish Draft Budget 2017/18

Apprenticeship Levy

The Apprenticeship Levy is being introduced from 6 April 2017 and will be payable by large employers. The Levy will be 0.5% of the employer’s pay bill, which is explained later in this article, but there is an annual allowance of £15,000.The allowance will be given on a pro-rata basis throughout the tax year.

The recent HMRC guidance confirms employers will need to report their Apprenticeship Levy liability each month:

from the start of the tax year if:- their annual pay bill (including any connected companies or charities) in the previous tax year was more than £3 million- they believe their annual pay bill (including any connected companies or charities) for the tax year will be more than £3 million
if an employer’s annual pay bill (including any connected companies or charities) unexpectedly increases to more than £3 million. In which case the employer will need to start reporting when this happens.

An employer’s annual pay bill is all payments to employees that are subject to employer Class 1 secondary NICs. Broadly wages but excluding benefits and expenses. HMRC have confirmed that employers must include payments to employees for whom there are no employer NICs including:

all employees earning below the NIC lower earnings and secondary thresholds
employees under the age of 21
apprentices under the age of 25

The Apprenticeship Levy will need to be reported each month on the Employer Payment Summary (known as the EPS) and should include the following:

the amount of the annual Apprenticeship Levy allowance which has been allocated to that PAYE scheme
the amount of Apprenticeship Levy you owe to date in the current tax year

HMRC have confirmed that it is not necessary to report Apprenticeship Levy if the employer has not had to pay it in the current tax year.

If you would like advice on the Apprenticeship Levy or other payroll matters please contact us.

Internet Link: GOV.UK apprenticeship levy

Personal tax accounts ‘first birthday’

The government are celebrating the ‘first birthday’ of their award winning Personal Tax Account which recently won Digital Project of the Year at the annual UK IT Industry Awards

HMRC have announced that in its first year, the Personal Tax Account has attracted more than seven million users and there have been millions of transactions including:

1.6 million Income Tax repayments, worth more than £800 million
1 million tax credit renewals
100,000 people checking or updating their company car details
1.6 million people checking their tax estimate
2 million people checking their state pensions.

The press release also states that the Personal Tax Account is designed to be one stop shop for all customer interactions with HMRC and taxpayers using it can:

check their state pension
complete and return a Self Assessment tax return
update tax credits circumstances as they change throughout the year to prevent under and overpayments
claim an Income Tax refund that will be paid straight into their bank account
check and update their Marriage Allowance.

If you would like advice on your personal tax affairs please contact us.

Internet link: GOV.UK news

National Insurance changes – winners and losers

Tax campaigners have warned that the abolition of Class 2 National Insurance contributions from April 2018 could result in the lowest earners among the self employed being hardest hit.^[a]

Class 2 NICs are flat-rate weekly contributions paid by the self-employed to gain access to contributory benefits. The self-employed also pay Class 4 NICs on profits above the Lower Profits Limit. Class 4 NICs do not currently give access to contributory benefits. At Autumn Statement 2016 the Chancellor confirmed that Class 2 contributions would be abolished from 6 April 2018.^[b]

At present, self-employed earners whose profits exceed £5,965 a year, the small profits threshold (SPT), are required to pay Class 2 NI contributions at £2.85 a week. These contributions then count towards their state retirement pension and entitlement to certain other contributory benefits. If their profits fall below the SPT, they have the option to make voluntary Class 2 payments.

When Class 2 is abolished, payment of Class 4 NI contributions will count towards state benefits. In order to protect some people on low incomes, Class 4 contributions will not be payable until annual profits reach £8,060. However, as long as profits exceed the SPT, the self-employed will be given Class 4 credits, so they will be treated as making contributions even though none was actually paid.

A point to note though is that, unlike Class 2, Class 4 NI cannot be paid on a voluntary basis meaning that the only way that self-employed people on profits below the Class 4 threshold will be able to build up a contribution record, if they did not obtain NI credits through receipt of other benefits, eg tax credits, child benefit or Universal Credit, will be by paying Class 3 voluntary contributions at £14.10 a week.^[c][d]

Anthony Thomas, Chairman of the Low Income Tax Reform Group commented:

‘Some parts of these proposals are good news for self-employed workers on low earnings, but by no means all. Those with profits between £5,965 and £8,060 will be better off because they will pay no NI but be credited with contributions. Our concern is for those with lower earnings than £5,965 who would have to pay voluntary Class 3 contributions in the future to protect their benefits entitlement if they did not obtain NI credits through receipt of other benefits, for example tax credits, child benefit or Universal Credit. Class 3 contributions will cost almost five times the amount they are paying now (£14.10 per week compared to £2.85 per week) and may mean the cost is unaffordable, leading them to rely more on means-tested benefits in the future.’

Internet links: GOV.UK policy paper Low income tax group

Charity fines

An investigation by the Information Commissioner’s Office (ICO) has revealed that two national charities, the RSPCA and the British Heart Foundation, secretly screened millions of their donors so they could target them for more money. The ICO said that this practice breached the Data Protection Act as the charities failed to handle donors’ personal data in accordance with the legislation.

The charities also traced and targeted new or lapsed donors by piecing together personal information which was obtained from other sources. In addition, they traded data with other charities to create a pool of donor data which was available for sale. As the donors were not informed of these practices, they could not give their consent or object.

The investigation was one of a number by the ICO into the fundraising activities of charities sparked by media reports about pressure on donors to contribute. The Information Commissioner, Elizabeth Denham, fined the RSPCA £25,000 and the British Heart Foundation £18,000.

The ICO can take action, including penalties of up to £500,000, against organisations and individuals that collect, use and keep personal data. Anyone who processes personal information must comply with the eight principles of the Data Protection Act which make sure personal data is:

fairly and lawfully processed
processed for limited purposes
adequate, relevant and not excessive
accurate and up to date
not kept for longer than is necessary
processed in line with an individual’s rights
secure and
not transferred to other countries without adequate protection.

Internet link: ICO news

SDLT online refund procedures

HMRC have introduced an online service to apply for a repayment of the higher rates of Stamp Duty Land Tax (SDLT) for additional properties if the property sold was previously a main home.

From 1 April 2016 higher rates of SDLT are charged on purchases of additional residential properties.

The main target of the higher rates is purchases of buy to let properties or second homes. However, there will be some purchasers who will have to pay the additional charge even though the property purchased will not be a buy to let or a second home. The 36 month rules set out below will help to remove some transactions from the additional rates (or allow a refund).

Care will be needed if an individual already owns, or partly owns, a property and transacts to purchase another property without having disposed of the first property.

The higher rates are three percentage points above the normal SDLT rates. The higher rates potentially apply if, at the end of the day of the purchase transaction, the individual owns two or more residential properties.

Some further detail:

where a new main residence is purchased before disposing of a previous main residence the higher rate will be payable. They then have 36 months to dispose of their previous main residence and claim a refund.
purchasers will also have 36 months between selling a main residence and replacing it with another main residence without having to pay the higher rates
a small share in a property which has been inherited within the 36 months prior to a transaction will not be considered as an additional property when applying the higher rates.

The online refund process will allow those affected to apply for a repayment of the higher rate of SDLT if the property sold was a previous main home.

Internet Link: GOV.UK SDLT repayment of Higher Rate

Latest statistics show unemployment at 4.8%

The government has announced:

‘labour market has finished a record breaking year with unemployment down by over 100,000 people and the rate running at 4.8%’.

Other statistics include:

there continues to be 31.8 million people in work, up by 2.7 million since 2010.
the number of women in work is at a record high of almost 15 million
long-term unemployment has fallen to 418,000 and is the lowest it has been since 2008, down 31,000 on the quarter
youth unemployment is 587,000, a fall of 350,000 since 2010
41% of the 420,000 people now receiving Universal Credit are in work.

Secretary of State for Work and Pensions, Damian Green said:

‘This year will be remembered as one when so many records were made – employment has consistently been running at an all-time high with more women, older workers and ethnic minority groups in work than ever before.

Encouragingly, this good news was extended right across the UK.

But there is more to do to help people of all backgrounds and abilities into work, which will remain a priority as we press ahead with our welfare reforms that are ensuring it always pays to be in work.’

Rachel Smith, CBI Principal Labour Market Adviser, said:

‘We see a mixed picture from the labour market over the last three months, with employment levels remaining more or less the same and unemployment seeing a slight drop.’

‘Although wage growth has gone up somewhat, so has inflation, hitting workers’ pay packets in real terms. Boosting productivity in every region and nation of the UK will be essential if firms are to further raise wages sustainably for their employees.’

Internet links: GOV. UK unemployment rate GOV.UK universal credit statistics CBI comment

Newsletter – January 2016

Posted on January 7, 2016 by Henry Cooper

Enews – January 2016

In this month’s eNews we report on the new rules on the taxation of dividends, the NLW, latest ICO fines and HMRC’s advance assurance for R&D. We also advise on the self assessment deadline and the HMRC tax helpline for those affected by flooding.

Please do get in touch if you would like any further guidance on any of the areas covered.

Dividend Allowance and rates of tax

National Living Wage – employers advised to get ready

Scottish Budget – income tax and LBTT

Self assessment deadline approaching

HMRC introduce Advance Assurance for R&D

Tax helpline for those affected by severe weather and flooding

Nuisance call companies warned to expect more fines

Dividend Allowance and rates of tax

Further details have been provided of the new rates of income tax on dividends and the new Dividend Allowance which will apply to dividends received on or after 6 April 2016.

The rates of income tax on dividends will be:

● 7.5% for dividend income within the basic rate band (ordinary rate)

● 32.5% for dividend income within the higher rate band (upper rate)

● 38.1% for dividend income within the additional rate band (additional rate)

There will also be a new Dividend Allowance of £5,000 where the tax rate will be 0% – the dividend nil rate. The Dividend Allowance applies to the first £5,000 of an individual’s taxable dividend income and is in addition to the personal allowance.

Where an individual receives dividend income, from UK or non-UK resident companies, that would otherwise be chargeable at the dividend ordinary, upper or additional rate, and the income is less than or equal to £5,000, the dividend nil rate will apply to all of the dividend income. Where the dividend income is above £5,000, the lowest part of the dividend income will be chargeable at 0%, and anything received above £5,000 is taxed at the rate that would apply to that amount if the dividend nil rate did not exist.

In calculating the tax band into which any dividend income over the £5,000 allowance falls, savings and dividend income are treated as the highest part of an individual’s income. Where an individual has both savings and dividend income, the dividend income is treated as the top slice.

The following example illustrates how the new Dividend Allowance and rates will work:

Patricia has a salary of £40,500 and dividend income of £7,000 in 2016/17. Her total income is therefore £47,500. The total of her personal allowance and basic rate band comes to £43,000. Therefore part of her dividend income would be taxed at the upper rate were it not for the operation of the new dividend nil rate.

So £5,000 will be taxed at 0% and £2,000 will be taxed at the upper rate of 32.5%

If you would like advice on how the new dividend rules will affect you please do get in touch.

Internet link: GOV.UK dividend

National Living Wage – employers advised to get ready

The Department for Business, Innovation and Skills (BIS) is advising employers to begin preparing for the introduction of the National Living Wage (NLW) which comes into effect from 1 April 2016. The rate is £7.20 an hour and applies to employees aged 25 and over.

Businesses are being advised to prepare early for the changes on 1 April 2016, when the new wage will become law, and make sure they follow these 4 simple steps:

know the correct rate of pay – £7.20 per hour for staff aged 25 and over
find out which staff are eligible for the new rate
update the company payroll in time for 1 April 2016
communicate the changes to staff as soon as possible.

Business Minister Nick Boles said:

‘The government’s new National Living Wage will provide a direct boost to over two-and-a-half million workers in the UK – rewarding and providing security for working people.’

‘I am urging businesses to get ready now to pay the new £7.20 rate from 1 April 2016. With just under 4 months left, there are some easy steps employers can take to make sure they are ready.’

‘By taking these measures, companies will be able to properly reward their staff and avoid falling foul of the law when it takes effect.’

Please contact us if you would like help with payroll matters.

Internet link: GOV.UK news

Scottish Budget – income tax and LBTT

Income tax

The Scottish Government set out tax and financial plans for the future in their draft Budget on 16 December 2015. The Deputy First Minister and Cabinet Secretary for Finance, Constitution and Economy, John Swinney, announced that the Scottish Rate of Income Tax (SRIT) would be set at 10p in the pound for 2016/17. The effect of this is to ensure that Scottish Taxpayers will pay tax at the same rates as their counterparts in the rest of the UK, at 20%, 40% and 45%.

Income tax bands for the basic and higher rates are the same in Scotland as in the rest of the UK.

The Scotland Act 2012 granted the Scottish Parliament landmark new powers to set a separate annual rate of income tax for Scottish taxpayers. The Scottish rate of income tax (SRIT) comes into effect in April 2016 and represents a fundamental change to the UK tax system.

Land and Buildings Transaction Tax

As well as paving the way for the changes to income tax outlined above, the Scotland Act 2012 also resulted in the introduction of Land and Buildings Transaction Tax (LBTT) in Scotland from 1 April 2015. This replaces Stamp Duty Land Tax which applies in the rest of the UK. The draft Budget proposes changes to LBTT with the introduction of a LBTT supplement on purchases of additional residential properties, such as buy-to-let properties and second homes. This supplement will be 3 percentage points of the total price of the property for all relevant transactions above £40,000 and will be levied in addition to the current LBTT rates.

The Scotland Bill 2015 proposes the further devolution of additional tax and spending powers to the Scottish Parliament. The Scotland Bill 2015 is still subject to consideration and amendment by the UK Parliament.

Internet link: GOV.UK news SRIT

Self assessment deadline approaching

HMRC have reported that:

a record breaking 24,546 people submitted their tax return online on New Year’s Eve
more than 11,467 people sent off their self assessment tax return on New Year’s Day
and in excess of 2,000 taxpayers submitted their tax returns on Christmas Day.

Ruth Owen, Director General of Personal Tax, HMRC, said:

‘As we all enjoy the festive season it’s easy to see how completing your tax return can be forgotten, but the 31 January deadline will be here quicker than we think.’

The deadline for sending 2014/15 tax returns to HMRC, and paying any tax owed, is 31 January 2016. Please contact us if you need help with your self assessment return.

Internet link: GOV.UK news

HMRC introduce Advance Assurance for R&D

HMRC have introduced Advance Assurance for companies that claim Research and Development (R&D) tax relief.

If a company carries out R&D for itself or other companies, it could qualify for Advance Assurance. This means that for the first three accounting periods of claiming for R&D tax relief, HMRC will allow the claim without further enquiries.

Internet link: GOV.UK guidance

Tax helpline for those affected by severe weather and flooding

HMRC have set up a helpline (number is 0800 904 79000800 904 7900 FREE) and will enable anyone affected to get practical help and advice on a wide range of tax problems they may be facing. HMRC will also:

agree instalment arrangements where taxpayers are unable to pay as a result of the floods
agree a practical approach when individuals and businesses have lost vital records in the floods
suspend debt collection proceedings for those affected by the floods
cancel penalties when the taxpayer has missed statutory deadlines.

Internet link: GOV.UK news

Nuisance call companies warned to expect more fines

The Information Commissioner’s Office (ICO) is warning companies making nuisance calls to expect more fines in 2016.

The ICO has reported that they imposed more than £1,000,000 worth of penalties for nuisance calls and text messages in 2015, and anticipates they will issue a similar amount in early 2016.

The fines issued in 2015 included:

£295,000 of fines for companies offering call blocking or nuisance call prevention services
an £80,000 fine to a PPI claims firm that sent 1.3 million text messages
a £200,000 fine to a solar panels company that made six million nuisance calls
a £130,000 fine to a pharmacy company that was selling customer details to postal marketing companies

In addition the ICO report that the fines related to nuisance marketing in 2015 amounted to £1,135,000. These included £400,000 fines for nuisance texts, £575,000 fines for nuisance calls and a £130,000 fine for selling customer records for marketing. Details of the businesses penalised and fined can be found by using the hyperlink.

Andy Curry, ICO Enforcement Group Manager, said:

‘Nuisance marketing calls frustrate people. The law is clear around what is allowed, and we’ve been clear that we will fine companies who don’t follow the law. That will continue in 2016. We’ve got 90 on going investigations, and a million pounds worth of fines in the pipeline.’

According to the ICO, PPI claims prompted the most complaints, followed by accident claims. Areas identified as emerging sectors for nuisance calls and texts included call blocking services, oven cleaning services and industrial hearing injury claims.

Internet link: ICO news

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