Countries Come Together to Fight Benefit Fraud
April 30, 2009 by Davenports Tax Team
Filed under Accountancy News
Today, the Department for Work and Pensions will sign a historic arrangement with five other countries to enhance cooperation on tackling benefit fraud. This costs the UK taxpayer £800 million a year.
Recognising the benefits of mutual co-operation, the United Kingdom, United States, Canada, Ireland, Australia and New Zealand have come together to sign the ‘Windsor Arrangement’ which aims to achieve stronger prevention, earlier detection and effective deterrence of benefit fraud.
DWP Permanent Secretary Leigh Lewis said today:
“The six countries that have signed this agreement today are all committed to fighting benefit fraud. This arrangement will ensure each country works together more systematically and, in turn, increase our individual and collective protection against those who seek to defraud our benefit systems. This historic agreement is just another sign of the cooperation enjoyed between our countries.”
The six signatories have agreed to work together to share intelligence and risk profiling, to share strategies and best practice for combating fraud, to determine scope for carrying out investigations and enforcement for each other and to enhance understanding of the nature and extent of identity fraud.
The Windsor Arrangement for Mutual Co-operation on Benefit Fraud Between Heads of Department of the Six Countries has been signed by: The Department of Human Services of Australia, the Department of Human Resources and Skills Development of Canada, The Department of Social and Family Affairs of Ireland, The Ministry of Social Development of New Zealand, The Department for Work and Pensions of the United Kingdom and The Social Security Administration of the United States of America.
The arrangement will be signed at the Combined Six Countries and Belmont Conference, Windsor UK on 30 April 2009, in the English and French languages.
Government’s Scrappage Scheme Takes Shape
April 28, 2009 by Davenports Tax Team
Filed under Accountancy News
The Business Department today met with the car industry to outline the arrangements of the scrappage scheme which will be launched in mid-May.
The £300 million scheme, announced in the Budget last week, is designed to boost the automotive industry and restore consumer confidence. The government is introducing a £2,000 incentive to consumers for scrapping their cars and vans 10 or more years old in return for buying a brand new vehicle.
The aim of today’s seminar was to help the car industry, which will be running the scheme, to finalise their preparations.
Business Secretary, Lord Mandelson said: “The scheme has been designed to be as simple as possible so we have kept the number of restrictions for consumers to a minimum. We also want to keep it straightforward for the car industry which has to administer the scheme, and there will be checks in place to ensure the scheme is not abused.
“I welcome the level of interest from car manufacturers that have already said they are keen to sign up to the voluntary scheme and look forward to seeing them benefit from more new buyers very soon.”
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UK Protects Working Time Opt Out
April 28, 2009 by Davenports Tax Team
Filed under Accountancy News
Talks on the EU Working Time Directive have broken down without agreement being reached.
The collapse sees the end of the European Parliament’s proposal to phase out the opt-out in three years. The UK and other countries have consistently held firm against this proposal.
A conciliation meeting in Brussels between the Member States, European Parliament and the European Commission was unable to resolve the long-standing differences between the European Parliament and member states over whether to retain the opt-out or not. With the deadline for reaching an agreement rapidly approaching, and the differences between the parties too great, it was agreed there was no value in continuing the negotiations any further.
Employment Relations Minister Pat McFadden said:
“We refused to be pushed into a bad deal for Britain. We have said consistently that we will not give up the opt-out and we have delivered on that pledge.
“Everyone has the right to basic protections surrounding the hours that they work, but it is also important that they have the right to choose those hours.
“In the UK and many other Member States, choice over working hours has operated successfully for many years. The current economic climate makes it more important than ever that people continue to have the right to put more money in their pockets by working longer hours if they choose to do so.”
Business Secretary Lord Mandelson said:
“Millions of people are better off because of the opt-out and I am relieved we have been able to resist its removal.”
The dossier in its current form will formally fall when the conciliation timetable reaches its conclusion in May. It will then be for the European Commission to decide how to proceed.
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Budget 2009
April 23, 2009 by Davenports Tax Team
Filed under Featured Accountancy, News
The Chancellor of the Exchequer presented his 2009 Budget to Parliament on Wednesday 22 April. From this page you can find all of the key points.
Summaries of the main announcements which affect HMRC`s customers are outlined below.
Main announcements affecting HMRC customers
- Budget 2009 - Personal Tax and Individuals
- Budget 2009 - Tax Relief on Pension Contributions
- Budget 2009 - Business Payment Support Service
- Budget 2009 - Business Tax - Corporate and Self Employed
- Budget 2009 - Compliance Proposals
- Budget 2009 - Review of Powers
- Budget 2009 - VAT Changes
- Budget 2009 - Excise Duties
- Budget 2009 - Stamp Duty Land Tax
For further information regarding the budget or any of Davenport’s services, please complete the simple form below and one of our team will be in contact with you shortly.
Government Introduces Incentive for Motorists to ‘Scrap’ Old Cars and Vans
April 22, 2009 by Davenports Tax Team
Filed under Accountancy News
Motorists are being offered £2,000 towards a new car or van if they trade in their 10-year-old, or older, vehicle for scrap under plans unveiled by the Government in today’s Budget.
The decision to implement a scrappage scheme has been taken after careful consideration of car industry proposals, lessons learnt from European schemes as well as concerns raised about the impact of such a scheme on other sectors of the economy.
The UK scheme, with £300m from Government and matched funding from industry, is intended to provide immediate support on a short-term basis to boost the car industry and its supply chain in the wake of falling sales. It will also get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.
Business Secretary Lord Mandelson said:
“This is targeted action with a capped budget and for a limited time, designed to boost the whole motor trade. This will ensure that the benefits of a scrappage scheme are balanced with the needs of other sectors of the car industry such as the second hand market, maintenance and repair businesses, and other industries that produce consumer durables or on the taxpayer.
“The car sector is under huge pressure at the moment and the government is determined it remains a very important part of our manufacturing base. It invests heavily in research and development, supports highly skilled workers and a wider supply chain. These are vital to our future manufacturing and retail success.”
The scheme will be run by automotive manufacturers who wish to participate. It is expected to be operational from mid-May to allow industry time to prepare. There will be proper verification procedures to ensure the rules are followed, including audits by DVLA to avoid abuse that has been encountered in other countries.
Business Minister Ian Pearson said:
“People will not only save hard-earned cash on buying a new car or a van for their business but they will know they are helping save jobs too.
“If you’ve got a vehicle that’s ten years old or more, you just need to talk to a participating dealer who will do the rest. You will get at least £2,000 towards a new one.”
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Banking of Inheritance Tax Payments
April 15, 2009 by Davenports Tax Team
Filed under Accountancy News
The banking of Inheritance Tax payments has moved to HM Revenue & Customs (HMRC) Banking, Cumbernauld. HMRC recommended that you make payments electronically wherever possible, but if you wish to pay by post you may still use the ‘Section K’, Nottingham pre-addressed envelopes as they will be automatically redirected to Cumbernauld. Please do not enclose anything other than the payment and payslip in the envelope as this may result in delays. Inheritance Tax forms and correspondence should continue to be sent to the Inheritance Tax offices in Nottingham, Belfast or Edinburgh .
To bring Inheritance Tax in line with other taxes, we will no longer issue receipts as a matter of course. If you need confirmation of payment please use an electronic method of payment.
The address for HMRC Banking Cumbernauld is:
HMRC Banking
St Mungo’s Road
Cumbernauld
G70 5WY
By DX:
DX 550100
Cumbernauld 2
For information about Davenports services, simply complete the form below and one of our team will be in contact shortly.
Bank of England Maintains Interest Rates
April 9, 2009 by Davenports Tax Team
Filed under Accountancy News
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with the programme, announced on 5 March, of asset purchases totalling £75 billion financed by the issuance of central bank reserves.
Regulator of Community Interest Companies Launches Review
April 6, 2009 by Davenports Tax Team
Filed under Accountancy News
As the 4th anniversary of the Community Interest Company (CIC) approaches, the Regulator has decided the time is now right for a review of the limits on the dividends CICs can pay to their investors. The review aims to ensure the limits strike the right balance between promoting opportunities for investment and growth, and maximising benefits for local communities.
CICs were introduced in July 2005 as a bespoke legal form for social enterprise, combining the flexibility of a limited company with a community purpose. The business model enables social enterprises to attract investment by issuing shares and paying returns to investors, while a limit is set on those returns to guarantee the majority of profits are put back into the community.
There are now more than 2,600 CICs in the UK, offering a wide range of goods and services and making a real difference to the lives and wellbeing of people across the country.
The Regulator of Community Interest Companies, Sarah Burgess said: “I’ve heard anecdotal evidence about the impact the current limits have on a CIC’s ability to secure investment. I now want to gather wider evidence so I can take an informed view about whether or not the limits should be changed and, if so, how.”
Ian Pearson, the Economic and Business Minister welcomed the review, saying:
“I’m really pleased by how successful Community Interest Companies have been in less than four years. CICs are making a real and valuable contribution to their communities, both in terms of economic strength and also by enhancing the welfare of local people. And I believe that right now we should be encouraging and supporting social enterprise, to make sure the sector is in the best position to expand and prosper - so I look forward to hearing the outcome of the Regulator’s review.”
Kevin Brennan, Minister for the Third Sector, said: “In these tough times, people are looking for ethical business models that give something back to the local community. Social Enterprises can meet that need well, and the CIC is a business model that enables them to benefit the communities they serve. Now is a good time to review the CIC model in the light of the practical experiences of Social Enterprises.”
The review will run for 12 weeks, closing on 19 June 2009. Full details of the consultation and how to respond can be found on http://www.cicregulator.gov.uk
Change of HMRC Bank Account Details From 6 April 2009
April 6, 2009 by Davenports Tax Team
Filed under Accountancy News
From 6 April 2009 some of HM Revenue & Customs’ (HMRC) bank account details will be changing. You will need these new account details when making a payment to HMRC.
The changes will take place over a period of time starting with the following areas:
- Self Assessment
- Tax credit repayments
- Corporation Tax
- PAYE and Class 1 National Insurance contributions
- Class 1A National Insurance contributions
- PAYE Settlement Agreements payments
- Pension scheme payments
- Stamp Duty Land Tax
- Petroleum Revenue Tax
- HMRC penalties and other miscellaneous payments
If you pay by BACS Direct Credit, Internet, telephone banking or CHAPS
HMRC is now using the bank Citi for these types of electronic payments. You can find the new bank account numbers and sort codes by referring to the papers sent to you by HMRC or in the relevant guide in the ‘Paying HMRC’ section of this website - follow the link at the end of the page.
Individual banks and building societies will start accepting the new account details on or shortly after the 6 April 2009. If there is a delay your bank/building society will be able to advise you. You can continue to make payments using the old details until your bank is ready to accept the new ones.
Once your bank/building society is ready to accept HMRC’s new account details you should arrange to update any templates or transactions that you have stored for online banking purposes.
Payments using a payslip by Bank Giro or at the Post Office
HMRC will be using NatWest and Alliance & Leicester to process payments made by Bank Giro and at the Post Office. In time each payslip will show the new HMRC bank account details. You do not need to take any action because payments made using both old and new HMRC bank account details will continue to be accepted.
Note that the new bank account details differ from those used for paying by BACS, Internet, Telephone and CHAPS.
Planned changes for other payment types
HMRC will provide more information in due course as the new bank account changes take place in HMRC for other types of payment (for example VAT, Class 2 & 3 National Insurance Contributions).
Tax Cuts Deliver Extra Help For Families
April 6, 2009 by Davenports Tax Team
Filed under Accountancy News
The Government is today [Monday 6 April 2009] implementing tax cuts and increasing benefits to provide help for families and individuals in dealing with the effects of the global economic downturn. A number of important changes for families and individuals will come into effect with the start of the new tax year today
The changes include:
- Increased personal tax allowances, which will benefit 22 million basic rate taxpayers;
- Increased child tax credits and working tax credits, benefiting over 4 million families;
- Increases in the Basic State Pension for 12 million pensioners, and Pension Credit increases that benefit over 2 million pensioner households;
- A new £190 grant for mums-to-be payable at the 25th week of pregnancy;
- And since 5th January, over 7 million families have been benefiting from the increase in Child Benefit that was brought forward from April.
Chancellor of The Exchequer, Alistair Darling, said:
“We are determined to support families and businesses. The increases in child benefit, tax credits and pensions will provide extra help for millions of households across the country at a time when they need it most.”
Personal tax allowance increase
To provide additional help for low to middle income families the Government has increased the personal allowance by £130 above indexation for 2009-10. This is on top of the £600 increase announced in May for 2008-09, which has now been made permanent. Together the changes mean that 22 million basic rate taxpayers under 65 will pay £145 less tax in real terms in 2009-10.
Tax Credit increases
The Government remains firmly committed to eradicating child poverty and will continue to build upon the substantial progress made since 1997. The 2008 Pre-Budget Report set out further steps to reduce child poverty including changes to the Child Tax Credit and Working Tax Credit and bringing forward its commitment to increase the child element of the child tax credit by £25 above indexation in April 2010 to April 2009. The child element of Child Tax Credit has therefore been increased by £150 in total to £2,235, helping 3.9 million families.
In addition 7.5 million families are already befitting from the over indexation increase in child benefit for the first child which now stands at £20 per week. The Government brought forward the increase from April to January to provide real support for families during these difficult times.
Support for Pensioners
The Government has increased the basic State Pension by 5%, in line with prices, with the level of a basic full State Pension rising from £90.70 to £95.25 a week; this will benefit 12million pensioners. The Government also confirms an above-indexation increase of 4.8% in Pension Credit’s minimum income guarantee from £124.05 to £130.00 for single pensioners and from £189.35 to £198.45 for couples in 2009-10, which will support 2.1 million pensioner households.
Health in Pregnancy Grant
The Health in Pregnancy Grant is a brand new £190 grant for all pregnant women, available from their 25th week of pregnancy. The grant is tax-free and disregarded for the purpose of income-related benefits. This will help 780,000 women to invest in their individual needs during pregnancy, whilst giving them flexibility to choose how they budget and where they spend this money.
Help for Job seekers
A 6.3% in income support, job seekers allowance, employment and support allowance, and incapacity benefit, significantly above inflation, and will be of real benefit to individuals and families across the UK
