Archive for September, 2022

We need to do things differently says Chancellor

Friday, September 16th, 2022

In a busy week for Prime Minister Liz Truss and her newly formed cabinet, her Chancellor has had a meeting with market leaders to set out the Government’s new, pro-growth economic approach.

Kwasi Kwarteng began by acknowledging the extraordinary challenges that families and businesses across the UK are facing this winter, exacerbated by Putin’s barbaric invasion of Ukraine. He stressed that the Government will immediately focus on supporting families and businesses to navigate the gas crisis this winter and next, supporting the economy to grow, and committing to fiscal sustainability.

Speaking after the meeting, Kwarteng said: “We face extraordinary economic challenges in the coming weeks and months, and I know that families and businesses across the UK are worried.

“The Prime Minister and I are committed to taking decisive action to help the British people now, while pursuing an unashamedly pro-growth agenda.

“We need to be decisive and do things differently. That means relentlessly focusing on how we unlock business investment and grow the size of the British economy, rather than how we redistribute what’s left.

“With a strong and resilient economy, we deliver more jobs, higher wages, and raised living standards – all while reducing our debt-to-GDP ratio in a fiscally sustainable way.”

Due to the scale of the gas crisis, the Government’s priority will be to support families and businesses in the immediate term, as announced by Truss. The Chancellor was clear this will mean necessary higher borrowing in the short-term while ensuring monetary stability and fiscal discipline over the medium term. He committed to ensuring the economy grows faster than our debts and keeping debt as a proportion of our economy on a downward path.

The Chancellor also reiterated his full support for the independent Bank of England and their mission to control inflation, which is central to tacking cost of living challenges.

Kwarteng stressed that the Government would support the economy to grow. He recognised that the rate of growth has been too low and committed to a radical supply side agenda to deliver lasting economic growth. This will mean creating the right conditions for business investment and innovation, reducing burdensome regulation and taxes, which will in turn create jobs, wealth and drive economic growth.

The Chancellor reiterated his aim to get to 2.5 per cent trend growth, delivering a stronger economy and a Britain that works for everyone.

If you are facing concerns with the on-going cost-of-living crisis, call us for advice.

Tough new rules to protect against cyber attacks

Tuesday, September 13th, 2022

Broadband and mobile companies will be forced to adhere to tough new rules to help protect the UK from cyber attacks.

The new Government regulations will come into force in October and will be among the strongest in the world.

They will provide much tougher protections from cyber threats that could cause network failure or the theft of sensitive data.

The Telecommunications (Security) Act, which became law in November, gives the Government powers to boost the security standards of the UK’s mobile and broadband networks, including the electronic equipment and software at phone mast sites and in telephone exchanges that handle internet traffic and telephone calls.

Digital Infrastructure Minister Matt Warman said: “We know how damaging cyber attacks on critical infrastructure can be, and our broadband and mobile networks are central to our way of life.

“We are ramping up protections for these vital networks by introducing one of the world’s toughest telecoms security regimes which secure our communications against current and future threats.”

As things stand, telecoms providers are responsible for setting their own security standards in their networks. However, the Government’s Telecoms Supply Chain Review found providers often have little incentive to adopt the best security practices.

The new regulations and code of practice, developed with the National Cyber Security Centre (NCSC) and Ofcom, set out specific actions for UK public telecoms providers to fulfil their legal duties in the Act. They will improve the UK’s cyber resilience by embedding good security practices in providers’ long-term investment decisions and the day-to-day running of their networks and services.

What providers must do

The substance of the final regulations has been confirmed by the Government following a response to a public consultation on them.

The regulations will make sure providers:

  • protect data processed by their networks and services, and secure the critical functions which allow them to be operated and managed.
  • protect software and equipment which monitor and analyse their networks and services.
  • have a deep understanding of their security risks and the ability to identify when anomalous activity is taking place with regular reporting to internal boards.
  • take account of supply chain risks, and understand and control who has the ability to access and make changes to the operation of their networks and services to enhance security.

NCSC Technical Director Ian Levy said: “We increasingly rely on our telecoms networks for our daily lives, our economy and the essential services we all use.

“These new regulations will ensure that the security and resilience of those networks, and the equipment that underpins them, is appropriate for the future.”

Ofcom will oversee, monitor and enforce the new legal duties and have the power to carry out inspections of telecoms firms’ premises and systems to ensure they’re meeting their obligations. If companies fail to meet their duties, the regulator will be able to issue fines of up to 10 per cent of turnover or, in the case of a continuing contravention, £100,000 per day.

Energy bill support for families and businesses

Monday, September 12th, 2022

New Prime Minister Liz Truss made the ongoing energy crisis her priority after taking the keys to No 10.

She has revealed her plan to support people and businesses with their energy bills with a new Energy Price Guarantee alongside the lifting of a ban on the controversial practice of fracking.

Truss aims to tackle the root causes of the issues in the UK energy market by increasing supply to ensure the country is not left in the same position again.

Under new plans, a typical UK household will pay no more than £2,500 a year on their energy bill for the next two years from 1st October, through a new ‘Energy Price Guarantee’ that limits the price suppliers can charge customers for units of gas. This takes account of temporarily removing green levies, worth around £150, from household bills. The guarantee will supersede the existing energy price cap.

It is expected that this will save the average household £1,000 a year based on current energy prices from October. It comes in addition to the announced £400 energy bills discount for all households and together they will bring costs close to where the energy price cap stands today.

The new guarantee will apply to households in Great Britain, with the same level of support made available to households in Northern Ireland.

Those households who do not pay direct for mains gas and electricity – such as those living in park homes or on heat networks – will be no worse off and receive support through a new fund.

The planned action will deliver substantial benefits to the economy – boosting growth and curbing inflation by four to five points, reducing the cost of servicing the national debt.

Prime Minister Liz Truss said: “Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all.

“I’m acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.

“Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again.”

 

As businesses have not benefited from an energy price cap and are not always able to fix their energy price through fixed deals, many are reporting projected increases in energy costs of more than five hundred per cent.

A new six-month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will offer equivalent support as is being provided for consumers. This will protect them from soaring energy costs and provide them with the certainty they need to plan their business.

The Government is also taking action to accelerate domestic energy supply, increase our energy resilience and achieve our ambition to make the UK an energy exporter by 2040.

These plans include lifting the moratorium on UK shale gas production and launching a new oil and gas licensing round as early as this week, expected to lead to over one hundred new licences.

Bungling bundling bank to repay businesses

Tuesday, September 6th, 2022

NatWest has found itself in hot water after forcing hundreds of business customers to open fee-paying current accounts in order to secure a loan.

The high street bank is now having to refund around £600,000 to small and medium-sized business after legal direction from the Competition and Markets Authority (CMA).

The CMA found that NatWest breached banking rules by telling business customers they had to open a business current account, which incurs fees, in order to be given a loan – a practice known as ‘bundling’.

The result has been hundreds of businesses being charged monthly fees for accounts that they may not have wanted nor needed. It also meant businesses’ were unable to hold an account with a separate provider, which may have better met their requirements.

‘Direct breach of rules’

The breach lasted for more than three years, with NatWest failing to alert the CMA until January 2021. Having scrutinised the error more closely, the CMA became aware the bank had signed certain customers up to a business account, when they had specifically requested to have a fee-free account.

Adam Land, CMA Senior Director of Remedies, said: “Forcing businesses to open costly current accounts to secure essential loans is unacceptable – and a direct breach of our rules, which have been in place for 20 years. NatWest should have known better. These rules are there for a reason: to make sure small businesses are treated fairly, and to make sure the market is competitive.

CMA crackdown

“The CMA has now issued legal directions to NatWest, and the bank is in the process of refunding affected customers. NatWest will write to all affected SME customers with a business account to offer them the option of switching to a fee-free loan servicing account.

The move comes as part of the CMA’s crackdown on breaches of its banking rules. Over the past four years, it has put a stop to bundling by HSBC, Danske Bank, Clydesdale Bank, and Lloyds, as well as securing millions in refunds in relation to overdraft charges: £17 million for Santander customers; £11 million for Metro Bank customers; £8 million for HSBC customers; and £7 million for Nationwide customers.

Have you been affected by this issue and need some advice? Give us a call.

Tax Diary September/October 2022

Thursday, September 1st, 2022

1 September 2022 – Due date for Corporation Tax due for the year ended 30 November 2021.

19 September 2022 – PAYE and NIC deductions due for month ended 5 September 2022. (If you pay your tax electronically the due date is 22 September 2022)

19 September 2022 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2022.

19 September 2022 – CIS tax deducted for the month ended 5 September 2022 is payable by today.

1 October 2022 – Due date for Corporation Tax due for the year ended 31 December 2021.

19 October 2022 – PAYE and NIC deductions due for month ended 5 October 2022. (If you pay your tax electronically the due date is 22 October 2022.)

19 October 2022 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2022.

19 October 2022 – CIS tax deducted for the month ended 5 October 2022 is payable by today.

31 October 2022 – Latest date you can file a paper version of your 2021-22 self-assessment tax return.

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