August 2023 | DSK Partners LLP

The end of scam calls selling financial products?

Posted on August 7, 2023 by

Are we about to see the end of phone calls selling sham financial products?

An 8-week consultation by the Home Office and other government departments is aiming to do just this.

The consultation, published on 2 August, covers proposals to ban cold calls offering any financial products and to clamp down on fraudsters seeking to trick people into buying fake investments. Once in force, people receiving a cold call offering these types of products will know that it is a scam, and fewer people will become victims.

Fraudulent investment schemes represent a significant threat to the UK economy, consumers, and society, with victims losing £750 million during 2022-23, according to data from the City of London Police.

A specialist team which provides support to victims of fraud, known as the National Economic Crime Victim Care Unit, has also been rolled out to all 43 police forces across England and Wales since the Fraud Strategy was announced.

Part funded by the Home Office; the service has existed as part of City of London Police since 2015 and is estimated to have stopped more than £2.8 million being lost to fraud. Last year its teams supported more than 113,000 victims and its rollout to all police forces will ensure more people receive the help and support they need.

The consultation aims to lead to the banning of cold calls for financial products such as sham cryptocurrency schemes, mortgages and insurance. The process marks the next step in delivering the government’s Fraud Strategy.

Source: Other Sun, 06 Aug 2023 00:00:00 +0100

Corporation Tax Group Payment Arrangements

Posted on August 3, 2023 by

A Corporation Tax Group Payment Arrangement (GPA) is a special arrangement that allows groups of companies to make joint payments of Corporation Tax. This type of arrangement can reduce the administration and costs associated with making a large number of individual payments. A GPA can also let members of the group mitigate any potential differential interest charge by allowing the group to allocate payments in a way that is most beneficial.

Only certain groups can qualify for GPA and a legal agreement needs to be made. Companies that can enter a GPA are a parent company and its 51% subsidiaries. The 51% subsidiaries of those subsidiaries, and so on, can also be included in the group. This definition is not necessarily the same as other definitions used for groups by HMRC and other government departments and agencies.

A GPA does not alter the fact that each company is liable for its own Corporation Tax, although a GPA also makes the nominated company liable to discharge the Corporation Tax liabilities of all the companies participating in that GPA.

An application for using a GPA should only be made once all the necessary conditions have been or will be met. The application should be sent to HMRC at least one month before the first payment is due for the accounting period to be covered by the GPA. That is 6 months and 13 days after the start of the Corporation Tax accounting period.

Source: HM Revenue & Customs Tue, 01 Aug 2023 00:00:00 +0100

HMRC recommends early filing of tax returns

Posted on August 3, 2023 by

The 2022-23 tax year ended on 5 April 2023 and the new 2023-24 tax year started on 6 April 2023. Many taxpayers will be happy to leave dealing with their 2022-23 tax returns until later this year or even until January 2024.

The 31 January 2024 is not just the final date for submission of the 2022-23 Self-Assessment tax return but also an important date for payment of tax due. This is the final payment deadline for any remaining tax due for the 2022-23 tax year. In addition, the 31 January 2024 is also the due date for the first payment on account for 2023-24.

HMRC’s recent press release recommends early filing of tax returns. In most circumstances, we would agree with this recommendation. By preparing your tax return early in the tax year you have not accelerated the payment date, but you will know what your tax bill will be well before the payment deadline of 31 January 2024. You can also spread the cost of your tax bill using HMRC’s Budget Payment Plan and avoid the eleventh-hour rush.

Remember that calculating how much tax you may owe is a separate process to filing the return, and so you will also need to remember to file your return and pay any tax due by 31 January 2024. This strategy should also give you time to set aside enough money to pay any tax payable. Of course, if you are owed a repayment of tax then it is a useful strategy to file your tax return as soon as possible and thus accelerate the repayment.

Source: HM Revenue & Customs Tue, 01 Aug 2023 00:00:00 +0100

State Pension if you retire abroad

Posted on August 3, 2023 by

If you are retiring abroad, you are still entitled to claim your UK State Pension as long as you have built up a suitable amount of qualifying years of NIC contributions. However, your entitlement to yearly increases in the State Pension only apply in certain countries.

The increases only apply if you live in:

The European Economic Area (EEA) or Switzerland.
A country that has a social security agreement with the UK that allows for cost of living increases to the State Pension. Note, the UK has social security agreements with Canada and New Zealand, but you cannot get a yearly increase in your UK State Pension if you live in either of those countries.

If you do not qualify for the annual increase in the State Pension but move back to the UK then your pension will revert to the current rate.

If you are living abroad, you must be within four months of your State Pension age to claim.

To claim your pension, you can either:

contact the International Pension Centre; or
send the international claim form to the International Pension Centre (the address is on the form).

You can elect to have your pension paid into a UK or foreign bank account. There are also tax implications that need to be considered. If your country of residence does not have a double taxation agreement with the UK, you may pay tax in both places.

Source: HM Government Tue, 01 Aug 2023 00:00:00 +0100

Carrying company losses back

Posted on August 3, 2023 by

Corporation Tax relief may be available where your company or organisation makes a trading loss. A qualifying trading loss may be used to claim relief from Corporation Tax by offsetting the loss against profits in previous years.

This could be a useful option for companies that have incurred significant losses. Carrying back a trading loss allows companies to seek relief by carrying them back to an earlier profit-making period resulting in a reclaim of Corporation Tax.

Usually, such a claim could only be made once a Corporation Tax return has been prepared and submitted to HMRC. However, in exceptional cases HMRC will allow claims to be carried back based on anticipated losses before the end of a current accounting period. Companies making a submission to HMRC requesting the early carry back of losses would need to provide HMRC with full evidence to support such claims.

Losses may only be carried back against profits of a preceding accounting period if the company was carrying on the trade (in which the loss was incurred) at some time in that accounting period.

Any claim for trading losses forms part of the Company Tax Return. The trading profit or loss for Corporation Tax purposes is calculated by making the usual tax adjustments to the figure of profit or loss shown in the company’s or organisation’s financial accounts.

If a company ceases to carry on a trade, the preceding period is three years preceding the accounting period in which the loss is incurred. Accounting periods must be taken in order, the most recent first.

Source: HM Revenue & Customs Tue, 01 Aug 2023 00:00:00 +0100

Characteristics of a valid Will

Posted on August 3, 2023 by

It is important to make a Will to ensure that your estate is divided amongst your beneficiaries in accordance with your wishes. If you do not leave a Will the law decides who inherits the estate. This can result in a distribution of assets that would not have been in line with your wishes and can be especially problematic for cohabitees (a couple who live together but are not married and have not entered into a civil partnership).

HMRC’s internal manual lists the following characteristics of a valid Will:

must be in prescribed form that satisfies all the formalities;
operates only as declaration of intention and does not prevent a testator or testatrix from disposing during their lifetime of assets which may have been allocated to someone in the will;
takes effect only on death and until that time the beneficiaries have no interest in the assets;
may not only deal with dispositions of assets, for example, it may appoint a guardian of minors or give directions on burial or cremation arrangements;
can be revoked or altered at any time before the testator/testatrix dies; and
is ambulatory, that is to say it is capable of dealing with property acquired after it was made (provided the property is still owned by the testator at death).

It should be noted that even when a valid Will is in place, arguments between family members, beneficiaries or personal representatives can arise. Any disagreements must be sorted out before the affairs of the person who died can be settled. This can sometimes be so contentious that it has been left to the Courts to decide if a Will made by a deceased person was valid or invalid.

A Will can also be changed after death. This can be done by what is known as a Deed of Variation for up to two years from the date of death and is most often contemplated to reduce Inheritance Tax liability. A Deed of Variation can only be executed with the agreement of all the beneficiaries. It is more complicated if children are involved as they cannot themselves consent to changes.

Source: HM Revenue & Customs Tue, 01 Aug 2023 00:00:00 +0100

Transferring a VAT registration

Posted on August 3, 2023 by

The taxable turnover threshold that determines whether businesses should be registered for VAT is currently £85,000. The taxable turnover threshold that determines whether businesses can apply for deregistration is £83,000. The thresholds are currently frozen until 31 March 2026.

When there is a change of business ownership or legal status it is possible to transfer a VAT registration so that the new business will keep the same VAT number.

Businesses can apply for a VAT registration transfer online or by post. It usually takes three weeks for HMRC to confirm the transfer.

HMRC’s guidance states the following:

If you are selling your business:

cancel your accountant’s access to your VAT online account – for example if you authorised them to deal with your VAT;
cancel any direct debits on your VAT online account, and
you must also give your records to the buyer if you are passing on your VAT number.

If you are buying a business:

contact HMRC within 21 days of the transfer application if you want to keep the seller’s accountant,
replace any self-billing arrangements with new ones, and
set up new direct debits on your VAT online account.

Businesses may wish to start afresh and can opt to get a new VAT number. This will mean cancelling the existing VAT registration and re-registering for VAT. Whilst this requires additional paperwork it may be preferable as the VAT registration starts with a clean slate.

Source: HM Revenue & Customs Tue, 01 Aug 2023 00:00:00 +0100

Amazon offers to change Marketplace rules

Posted on August 2, 2023 by

Amazon has offered to change the way it treats third-party sellers using its Marketplace platform in the UK, by submitting proposed commitments to the Competition and Markets Authority (CMA) in response to competition concerns it raised with the technology giant.

The CMA considers that these commitments – if accepted – will ensure third-party sellers’ product offers have a fair chance of being prominently displayed to customers in the ‘Buy Box’ on a product page when they are competing against Amazon’s own product offers. The commitments also aim to prevent Amazon from using data that it obtains from third-party sellers to give itself an unfair competitive advantage.

The CMA launched an investigation in July 2022 into concerns that Amazon was abusing its position as the UK’s leading online retail platform by giving an unfair advantage to its own retail business over competing sellers that use Amazon Marketplace, or to sellers that use Amazon’s own warehousing and delivery services, rather than rival organisation businesses.

The CMA’s preliminary view is that the offer from Amazon addresses its competition concerns, and the CMA is now consulting on the commitments put forward before deciding whether to accept them.

The commitments offered propose to:

Ensure Amazon does not use rival sellers’ Marketplace data to gain an unfair advantage over other sellers. This follows concerns that Amazon’s access to commercially sensitive data relating to third-party sellers helped its retail business to decide which products to sell, manage stock levels for those products, set prices and make other important commercial decisions.
Guarantee all product offers are treated equally when Amazon decides which will be featured in the ‘Buy Box’. This relates to concerns that products being offered by third-party sellers were less likely to appear in the Buy Box than similar offers from either Amazon’s own retail business or third-party sellers that use Amazon’s delivery services.
Allow third-party businesses using Marketplace to negotiate their own rates directly with independent providers of Prime delivery services so that customers can benefit from lower delivery costs where better rates are negotiated.
Require Amazon to appoint an independent trustee who will monitor the company’s compliance with these commitments. The CMA will have a direct say in this appointment, ensuring they have the necessary skills and expertise for the job.

Source: Other Wed, 02 Aug 2023 00:00:00 +0100

Gambling white paper reforms

Posted on August 2, 2023 by

A public consultation process has been launched to look at how to conduct financial risk checks for problem gambling and at what level stake limits should be set for people playing online slot games.

The move is the next step of the Government’s gambling white paper to update gambling rules for the smartphone era and protect those at risk of gambling harm including young adults.

The gambling industry, clinicians, academics, those with firsthand experience of harm, and the general public are invited to share their views.

Online slot games are deemed a higher-risk gambling product, associated with large losses, long sessions and binge play.

According to NHS England surveys, 8.5% of online slots, casino and bingo players report experiencing problem gambling, which is nearly 20 times higher than the adult population average. But unlike gaming machines in pubs, arcades and bookmakers, online slot games have no stake limits, which can make it too easy to incur potentially life-changing losses in minutes.

The Government is consulting on a maximum stake of between £2 and £15 per spin.

Public Health England research has also shown younger adults can be particularly vulnerable to gambling harms, due to a combination of common factors such as ongoing cognitive development and managing money for the first time.

The Government is also consulting on options to introduce greater protections when playing slots for 18 to 24-year-olds, such as lower stake limits of £2, £4, or requirements on operators to consider age as a risk factor for gambling-related harm.

Source: Other Wed, 02 Aug 2023 00:00:00 +0100

Month: August 2023

The end of scam calls selling financial products?

Corporation Tax Group Payment Arrangements

HMRC recommends early filing of tax returns

State Pension if you retire abroad

Carrying company losses back

Characteristics of a valid Will

Transferring a VAT registration

Amazon offers to change Marketplace rules

Gambling white paper reforms

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