Motorists are being put in the driving seat to find the best fuel prices after a watchdog found many were being overcharged at the pumps.

A new fuel price reporting scheme will allow consumers to compare prices in real time in any area of the UK, as the Government changes the law, forcing retailers to comply by providing up-to-date price information.

This is expected to lead to greater transparency and competition, in turn driving down prices and easing the cost of living.

Over-charging by 6p a litre

The tough action follows publication of a Competitions and Markets Authority (CMA) report that showed some supermarkets charged drivers 6p more per litre for fuel. This amounts to £900m in extra costs in 2022 alone.

The report found a concerning weakening of competition in the fuel market and an overall increase in retailers’ margins, especially in respect of diesel. Supermarkets were reportedly the worst offenders.

New powers will be handed to a public organisation yet to be decided, to monitor the UK road fuel market, scrutinise prices and alert government if further intervention is needed.

Grant Shapps, Energy Security Secretary, said: “Some fuel retailers have been using motorists as cash cows – they jacked up their prices when fuel costs rocketed but failed to pass on savings now costs have fallen.

“It cannot be right that at a time when families are struggling with rising living costs, retailers are prioritising their bottom line, putting upwards pressure on inflation and pocketing hundreds of millions of pounds at the expense of hardworking people.”

Similar schemes in Germany and Australia

The move follows a similar scheme in Germany, which boosted competition among fuel retailers. Meanwhile, motorists who shopped around in Queensland, Australia, saved on average $93 per year off the back of a statewide scheme rolled out in the area.

The Government will consult on the design of the open data scheme, and market monitoring function this autumn with changes to the law needed to bring it in.

In the interim, the CMA will create a voluntary scheme encouraging fuel retailers to share accurate, up-to-date road fuel prices for publication by August and continue to monitor fuel prices using its existing powers.

As the outlook for the UK economy remains uncertain, UK business fears over potential insolvency appear to be easing.

While government data shows insolvencies are at a four-year high, research suggests that these figures are reaching their peak.

Wealth management and professional services group Evelyn Partners found that just under one in three businesses (32 per cent) acknowledged there is a risk they will become insolvent over the next 12 months.

This is considerably lower than in September 2022 when 47 per cent of firms believed there was a risk of insolvency.

According to the firm, businesses now seem to “be in a stronger position to weather this uncertainty and have rowed back from plans to batten down the hatches”.

Alternative means of funding

It also found that with traditional lender appetite suppressed, UK business owners are looking to alternative means of funding. Of the total capital UK businesses are looking to raise in the next six months, just 12 per cent of this funding will be from traditional banks.

More are turning to alternative means of funding, such as credit funds, where nine per cent of funding is set to be raised in the next six months.

‘Survival prospects have improved’

Claire Burden, partner at Evelyn Partners, said: “Businesses have weathered an exceptionally challenging winter, in which the cost of funding has soared, consumer confidence has taken a sizeable hit and energy prices have rocketed.

“Emerging out of these challenging months, it is encouraging that business confidence remains stable, and survival prospects have improved as businesses look ahead over the next year.

“Businesses are not out of the woods just yet, however. Although funding remains in ample supply, banking instability and interest rate rises have led to a buyers’ market. For borrowers and management teams this has resulted in more cumbersome financing processes.

“Businesses looking to re-finance or take on additional funding should therefore start the process early and enlist the support of specialist advisors to help identify funding options and the providers best aligned to their business needs.”

Need financial advice or advice on funding options? Get in touch.

1 July 2023 – Due date for corporation tax due for the year ended 30 September 2022.

6 July 2023 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2023 – Pay Class 1A NICs (by the 22 July 2023 if paid electronically).

19 July 2023 – PAYE and NIC deductions due for month ended 5 July 2023. (If you pay your tax electronically the due date is 22 July 2023).

19 July 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2023.

19 July 2023 – CIS tax deducted for the month ended 5 July 2023 is payable by today.

1 August 2023 – Due date for corporation tax due for the year ended 31 October 2022.

19 August 2023 – PAYE and NIC deductions due for month ended 5 August 2023. (If you pay your tax electronically the due date is 22 August 2023)

19 August 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2023.

19 August 2023 – CIS tax deducted for the month ended 5 August 2023 is payable by today.

In certain circumstances it can be beneficial to make voluntary National Insurance Contributions (NICs) to increase your entitlement to benefits, including the State or New State Pension.

Usually, HMRC allows you to pay voluntary contributions for the past 6 tax years. The deadline is 5 April each year. However, there is currently an opportunity for people to make up for gaps in their NICs for the tax years from April 2006 to April 2017 as part of transitional measures to the new State Pension.

This deadline was set to expire on 5 April 2023 but had been extended until 31 July 2023. The deadline has now been further extended until 5 April 2025 to help allay continued concerns that the existing deadline would not have allowed many taxpayers to fill gaps in their NIC records. HMRC’s helplines have been struggling to meet the demands for information and processing claims to pay additional NIC contributions.

HMRC has also confirmed that all relevant voluntary NIC payments will be accepted at the rates applicable in 2022-23 until 5 April 2025.

You might want to consider making voluntary NICs if:

• You are close to State Pension age and do not have enough qualifying years to get the full State Pension.
• You know you will not be able to get the qualifying years you need to get the full State Pension during the remainder of your working life.
• You are self-employed and do not have to pay Class 2 National Insurance contributions because they have low profits.
• You live outside the UK but want to qualify for benefits.

If you fall within any of these categories, it may be beneficial to get a State Pension forecast and examine whether you should consider making voluntary NICs to make up missing years, known as topping up. Not everyone will benefit from making voluntary NICs and a lot depends on how close you are to retirement age and your NIC payments to date. If you think this opportunity may be relevant to your circumstances, please be in touch.

The Gift Aid scheme, which was originally introduced in 1990, allows charities to reclaim from HMRC the basic rate of Income Tax deducted from qualifying donations by UK taxpayers. This means that when a basic rate taxpayer claims gift aid on a £10 donation, the charity can reclaim from HMRC the £2.50 of tax paid on that donation.

If you are a higher rate or additional rate taxpayer, you are eligible to claim additional tax relief on the difference between the basic rate and your highest rate of tax.

For example:

If you donated £5,000 to charity, the total value of the donation to the charity is £6,250. You can claim back additional tax of:

• £1,250 if you pay tax at the higher rate of 40% (£6,250 × 20%),
• £1,562.50 if you pay tax at the additional rate of 45% (£6,250 × 25%).

Taxpayers have the option to carry back charitable donations to the previous tax year. A request to carry back the donation must be made before or at the same time as the previous year’s Self-Assessment return is completed.

This means that if you made a gift to charity in the current 2023-24 tax year that ends on 5 April 2024, you can accelerate repayment of any tax associated with your charitable giving. This can be a useful strategy to maximise tax relief if you are not paying higher rate tax in the current tax year but did in the previous tax year. This should be done as part of the Self-Assessment tax return for 2022-23 which must be submitted by 31 January 2024.

You can only claim if your donations qualify for gift aid. This means that your donations from both tax years together must not be more than 4 times what you paid in tax in the previous year.