Inflation stays flat
Official figures were released last week showing thatinflation remains at 4% in the year to January.
Energy prices have increased due to the new energy price cap, and the price for second-hand cars also rose by 1.5%. However, food prices fell for the first time in two years by 0.4%. Discounts offered by retailers for furniture and household goods in the January sales have also exerted a downward push on inflation.
Of course, inflation staying flat does not mean that prices are not increasing. A 4% inflation rate means that prices are still going up at double the rate targeted by the Bank of England.
The Office of National Statistics (ONS) have also released figures showing that pay, excluding bonuses, grew by 6.2% in the last quarter of 2023. While this and the number of job vacancies have reduced since the summer, pay growth still exceeds inflation. The former deputy governor of the Bank of England said that he would be surprised to see the Bank lowering the base rate until this changes.
Businesses therefore continue to face increased prices for supplies and pressure to increase staff wages to meet their costs of living, while trying to balance what can be passed on to customers.
However, Chancellor Jeremy Hunt took the news as a positive, saying: “Inflation never falls in a perfect straight line, but the plan is working.”
Some self-catering holiday let owners being asked to provide trade information
The Valuation Office Agency (VOA) is contacting the owners of some self-catering holiday lets. The lets in question are ones that are currently being assessed for business rates.
The VOA are looking for additional information about the income and expenditure of these properties. This will assist in calculating the rateable value of the property.
This enquiry follows an exercise undertaken by the VOA last year to contact self-catering holiday let owners. The information requested at that time enabled the VOA to decide whether the properties should be assessed for business rates or Council Tax.
The rateable values of self-catering holiday lets must be updated by the VOA every three years, and the information being requested helps them to revalue properties correctly.
Forms will be sent out between February and August. If you receive one, then it must be returned within 56 days to avoid paying a penalty.
If you receive a form and need any help with completing it, please contact us and we will be happy to help. If you are expecting a form and do not receive one, or otherwise believe that the rateable value for your holiday let is incorrect, let us know and we’ll be pleased to help.
HMRC warns about an increase in tax refund scams
HM Revenue and Customs (HMRC) are warning that fraudsters could focus on Self Assessment taxpayers.
With the tax return filing deadline having just passed at the end of January, an email, phone call or text message that offers a tax rebate may appear more believable than usual.
HMRC say that they have responded to 207,800 referrals in the year to January, with more than 79,000 relating to fake tax rebates. The total number of referrals has increased by 14% over the previous year, suggesting fraudsters are increasing their efforts.
Scammers are looking to get personal details that they can sell on to criminals, or to gain access to bank accounts and phish for these details using emails, phone calls or texts that appear to mimic an HMRC message.
To protect yourself, avoid rushing into anything and always protect your personal information.
HMRC have confirmed that they will not email, text or phone a customer to tell them that they are due a refund, or to ask them to request a refund. Repayments will be made automatically into the account chosen when filing the tax return. Alternatively repayment amounts can be seen and payment requested in your online HMRC account or in the HMRC app.
If you receive contact that you are suspicious of, you are encouraged to report it to HMRC. You can:
- Forward emails to phishing@hmrc.gov.uk;
- Report tax scam phone calls to HMRC on GOV.UK; or
- Forward suspicious texts claiming to be from HMRC to 60599.
If you are in any doubt whether contact you have received is genuinely from HMRC, please do not hesitate to contact us and we will be pleased to help you!
New trade and investment partnership with Nigeria
Last week the UK signed an Enhanced Trade and Investment Partnership with Nigeria to boost trade and investment between the two countries.
In the year to September 2023, trade between the two countries totalled £7 billion. UK exports to Nigeria were £4 billion in that year, which represented a 3% increase in current prices over the previous year.
The partnership will allow for additional opportunities in the financial and legal services sector, the film and media industry and for UK education providers to offer education in Nigeria.
Lawyers in both the UK and Nigeria will benefit from the agreement that facilitates them practising foreign and international law in each other’s country.
Nigeria’s economy is the biggest in Africa and is predicted to be in the world’s top 20 by GDP by 2035.
A reminder for businesses on waste recycling responsibilities
A Buckinghamshire-based company has recently made the news, not for their innovative products or services, but for their failure to adhere to regulations on recycling waste packaging.
Hi-Tech Coatings International Limited, located in Aylesbury, found themselves in hot water for neglecting their obligations under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007. As a result of their oversight, the company has had to make a significant financial contribution of nearly £21,000 to a local charity, in addition to covering Environment Agency costs.
The company were proactive in making amends and showing how they will comply with the law in the future. The Environment Agency were willing to accept the company’s offer and did not proceed to prosecution in this case.
Berks, Bucks and Oxon Wildlife Trust are the beneficiaries of the company’s contribution. The money will be used to help protect local wildlife habitats and wetland areas in Buckinghamshire.
The regulations are designed to ensure that businesses take responsibility for the recycling of packaging waste. A senior technical officer for the Environment Agency, Jake Richardson, has said: “Any company handling more than 50 tonnes of packaging a year, and with turnover in excess of £2 million, must register with the Environment Agency or a packaging compliance scheme, and meet their responsibilities for recycling waste packaging.”
This financial penalty serves as a stark reminder of the importance for businesses to stay aware of their environmental responsibilities, particularly when it comes to waste management and recycling. By fulfilling their responsibilities for recycling waste packaging, companies not only mitigate financial and legal risks but also contribute to the preservation of natural ecosystems and the well-being of future generations.
Nature benefits from new legal requirement for developers
All major housing developments in England are now required to deliver at least a 10% benefit for nature. This Biodiversity Net Gain requirement, which was introduced in the Environment Act, is now a legal requirement for all new planning applications.
Biodiversity Net Gain means that a development needs to avoid harming nature, or if that is unavoidable, new habitats need to be created or existing ones enhanced so that the net result is more nature after a development than before. The gain is preferably to be made within the new site itself, but the requirements can also be satisfied by investing in nature sites elsewhere.
Measures are included in the new requirements to ensure that the Biodiversity Net Gain provides a lasting benefit to the environment over the long term. For instance, significant on-site and off-site gains will need a legal agreement with a responsible body or local authority to monitor the habitat improvements.
Many developers already work to improve nature in their developments, but the new requirements have been welcomed as a positive move in bringing nature back into towns and cities.
