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July 2011 Newswire

Welcome to our monthly newswire...

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Key Dates

14 July 2011 - Deadline for submission of forms CT61 and payment of any associated income tax for the quarter ended 30th June 2011.

* 19 July 2011 - PAYE and NIC due for the month ended 5th July 2011. Quarterly PAYE and NIC due for the quarter ended 5th July 2011 for qualifying small employers. Due date for payment of Class 1A NIC arising on relevant benefits in kind for the year ended 5th April 2010. Submit Construction Industry Scheme return for the month ended 5th July 2011.

31 July 2011 - Second payment on account due in respect of 2010/11 personal tax. Second penalty of £100 applied where 2010 self-assessment tax return has not yet been submitted. Second 5% surcharge applied where 2009/10 tax has not been settled in full by this date.

* If you pay online, the deadline is extended to 22nd of that month. Both dates refer to when the money should arrive in HMRC's account.

End of National Insurance cards comes step closer

HM Revenue & Customs (HMRC) has introduced the latest stage of its move to phase out National Insurance cards.

Last year, as part of a drive to reduce costs, it was announced that HMRC would stop issuing plastic cards and send letters instead, saving £820,000 a year.

HMRC stopped issuing replacement cards in October 2010, sending letters instead to anyone requesting a reminder of their National Insurance number.

From July 2011, HMRC will stop issuing cards to adults. Adults needing a National Insurance number for the first time will receive their number on a letter from the Department for Work and Pensions.

However, teenagers approaching the age 16 will still be sent a National Insurance number card and this will continue until later in the year.

LINK: Phasing out of National Insurance cards

Businesses get extra help on competition law

The Office of Fair Trading (OFT) has launched new guidance to help businesses comply with competition law.

The guidance was issued alongside the results of an independent survey of more than 2,000 businesses, carried out for the OFT, which found that 25 per cent felt they knew "a lot" or "a fair amount" about competition law, double the number (12 per cent) in a similar survey in 2006.

For larger businesses, this number was higher at 45 per cent, with only 13 per cent of executives from these larger firms saying they knew "nothing" about competition law.

The survey also found that smaller businesses were less able to identify practices that breach competition law.

In response to the findings and suggestions from business groups, the OFT's guidance package includes a Quick Guide summary of competition law compliance and a film explaining how competition law works in practice. These highlight how businesses can implement the simple four-step compliance process.

John Fingleton, OFT chief executive, said: "We recognise that most businesses want to comply with the law and are keen to help them avoid breaching the law in the first place, supporting this by taking strong enforcement action against those who do not comply.

"Businesses have told us that competition law is far higher up the business agenda than even five years ago, and this has been confirmed in our survey. The guidance documents published today are intended to support businesses and company directors by providing practical guidance on the steps they can take in order to comply with competition law."

LINK: Competition law compliance guidance

Europe set to streamline patent rules

UK businesses are set to save millions of pounds a year as a single European patent came a step closer following agreements by ministers at a meeting of the Competitiveness Council in Luxembourg.

Ministers meeting on 27 June agreed on the languages regime for the patent – the number of translations which applicants need to file to get their patent – and on the technical details of the patent itself.

As a result it will be easier and cheaper to register patents, with far fewer translations required than at present. The availability of a single patent for the European market is set to act as an incentive for innovation and will enhance the competitiveness of European businesses.

UK Intellectual Property Minister Baroness Wilcox said: "The savings to UK business are likely to be around £20 million per year in translations costs alone."

The measures will be adopted later in the year. A recent independent review of Intellectual Property and Growth by Professor Ian Hargreaves found that establishing a unitary patent would remove intellectual property barriers between EU countries and could increase UK national income by over £2 billion a year by 2020.

LINK: Press release on patent unification

New challenge on red tape

Businesss owners, employees and the public are being urged to blow the whistle on inconsistent and over-zealous enforcement of rules and regulations.

The new initiative, launched on 24 June as part of the government's Red Tape Challenge, asks businesses and the public:

  • which aspects of enforcement do you find most difficult to deal with and how could things be done differently?
  • what impact do these problems have on your business?
  • do regulators recognise where you have made efforts to comply? What more do you think could be done to ensure regulators take your efforts into account?
  • is it easy for you to appeal or complain about the way regulations are enforced?
  • do you have any examples of good "common sense" enforcement where you feel that a regulator has really done its best to understand and work around the realities you face as a business?
  • is enforcement flexible enough to keep pace with the way your business is developing?

Business Minister Mark Prisk said: "The Red Tape Challenge has already highlighted a number of ways in which compliance problems are getting in the way of businesses, but we weren't getting enough information on the problems.

"So tell us about the good, the bad and the ugly side of how the regulations you deal with are enforced, and help us get the Government off your back."

LINK: Red Tape Challenge

'E-traders' included in new tax crackdown

New campaigns targeting VAT defaulters, private tutors and e-marketplaces will be launched by HM Revenue & Customs (HMRC) over the next year.

HMRC said it would be using tools such as web robot software to search the internet and find targeted information about people and companies.

Using the software, the department can pinpoint more accurately people who have failed to pay the right tax. The web robot, used in conjunction with HMRC's Connect computer system, also helps find people who are trading without telling HMRC.

Connect alerts HMRC to previously invisible tax evasion by matching HMRC and third party data. It is able to highlight previously hidden relationships, uncovering anomalies between elements including bank interest, property income and lifestyle indicators before homing in on unexplained inconsistencies.

HMRC announced last month that a campaign targeting VAT rule-breakers trading above the £73,000 registration limit. Other campaigns that will be launched in 2011/12 will focus on:

  • those who provide private tuition and coaching
  • e-marketplaces, including people who use e-marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed
  • trades, which will build on HMRC's current plumbers' campaign.

LINK: Reporting tax evasion

China tax agreement set to boost trade

A new double taxation agreement between the UK and the People's Republic of China is set to encourage more cross-border trade between the two countries.

The agreement was signed in London on 27 June by Foreign Secretary William Hague and Yang Jiechi, China's Minister of Foreign Affairs.

Welcoming the agreement, Mr Hague said: "This new treaty represents an important step towards the modernisation of the UK's tax treaty network and marks further progress in relations between the UK and China.

"It will encourage greater flows of cross border trade and investment which are vital for prosperity in both countries."

The agreement will enter into force once both countries have completed their legislative procedures. Its provisions will then take effect from the following year.

The agreement was signed during a three-day visit to the UK by Chinese Premier Wen Jiabao. During the visit, Prime Minister David Cameron announced trade deals worth £1.4 billion following a UK-China summit and said trade with China represented a "huge opportunity" for the UK.

LINK: UK-China summit

UK lobbies over European maternity leave proposals

The UK has reinforced its opposition to proposals by MEPs to introduce 20 weeks of maternity leave on full pay.

Chris Grayling, Employment Minister, visited Brussels on 17 June to attend a meeting of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) for an update on the Pregnant Workers Directive and repeated the UK's opposition to the proposals put forward by MEPs in October 2010.

The government is concerned that 20 weeks of maternity leave at full pay would result in considerable costs for EU member states when they can least afford it.

Mr Grayling said: "The proposals that MEPs put forward are costly for the UK. When member states are trying to balance their books in difficult times, this is the wrong approach to adopt."

Employment Relations Minister Edward Davey added: "What MEPs have tabled is not the right solution. Minimum standards are important but it should be down to the individual member states to adopt their own model – not for Europe to dictate this.

"We have recently launched our own consultation that looks at introducing a fully flexible and family-friendly solution to parental leave that is tailored to suit the UK. Simply saying 20 weeks at full pay, in a one size fits all format, is not the way forward."

The government's Modern Workplaces consultation continues until 8 August.

LINK: Modern workplaces consultation

Advice on offer as Rugby World Cup kicks off

The Government has issued advice to employers on maintaining productivity and keeping staff engaged during the Rugby World Cup later this year.

Guidance on the Business Link website says that with the event kicking off on 9 September 2011, employers may be wondering how to manage an increase in:

  • annual leave requests
  • sickness absence
  • poor performance.

The advice provides links to a number of appropriate Business Link guides on different issues that might arise. It also points out that according to Acas, staying flexible will help to maintain productivity and keep employees engaged.

Business Link also points out: "During the event, you might see an increase in use of Facebook, Twitter and other websites, including the official Rugby World Cup website.

"To help you manage this, you need to have a clear policy on internet use at work. You need to say what is and is not acceptable. However, if you are monitoring workers' internet use, data protection regulations require you to let staff know this is happening."

LINK: Rugby World Cup guidance

 
 

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