Author: Glenn

The GOV.UK ID Check app is used to allow applicants to verify their identify when they sign in to a government service with GOV.UK One Login. Once this had been completed satisfactorily, your identity information is automatically saved to your GOV.UK One Login. This means you will not need to prove your identity next time a service needs to check who you are.

The app is available on both iPhone and Android platforms and will check that:

• your photo ID is real
• you are a real person
• you are the same person as in your photo ID

You also need one of the following types of photo ID:

• UK photocard driving licence
• UK passport
• non-UK passport with a biometric chip
• UK biometric residence permit (BRP)
• UK biometric residence card (also called a BRC)
• UK Frontier Worker permit (FWP)

If you are unable to prove your identity using the app there are also options to answer security questions online about things like your mobile phone contract, and any bank accounts, credit cards, loans or mortgages you may have. There is also a further option of using a Post Office that offers ‘in branch verification’.

New regulations that prohibit employers from withholding tips for employees in the hospitality, leisure, and services sectors took effect on 1 October 2024. This change follows the enactment of The Employment (Allocation of Tips) Act 2023, commonly referred to as the Tipping Act, along with the statutory Code of Practice on the fair and transparent distribution of tips, which also took effect on 1 October 2024.

This means that more than 2 million workers will have their tips protected. HMRC has estimated that this new law will mean an estimated £200 million a year will go back into the pockets of hard-working staff by retaining tips that would have otherwise been deducted. These new measures apply in England, Scotland and Wales. Employment policy is devolved to Northern Ireland.

Employers who violate these rules could face fines or be required to compensate their staff. Workers will have the ability to hold their employers fully accountable through employment tribunals.

The statutory Code of Practice provides businesses with advice on how tips should be distributed among staff. The Code of Practice is statutory and has legal effect, meaning it can be introduced as evidence in an employment tribunal.

Banks will be granted new powers to delay and investigate payments suspected of fraud, enhancing consumer protection against scammers.

Under new laws being proposed by the Government, banks will be able to extend the maximum delay for suspicious payments by up to 72 hours when there are reasonable grounds to suspect a payment is fraudulent and additional time is needed for investigation. Under the current regulations, banks are required to either complete or reject a payment by the close of the next business day.

This extended time frame will allow banks more opportunity to disrupt fraudsters' influence over their victims and help combat the estimated £460 million lost to banking fraud in the last year.

The Economic Secretary to the Treasury, commented:

Hundreds of millions of pounds are lost to scammers each year, targeting vulnerable communities and ruining the lives of ordinary people.

We need to protect these people better, which is why we are giving banks more time to investigate suspicious payments and break the criminal spell that scammers weave.

Banks that have reasonable grounds to suspect a payment is fraudulent will be required to notify customers when a payment is delayed as well as to provide instructions on what actions the customer needs to take to unblock the payment. Banks will also be obligated to compensate customers for any interest or late payment fees incurred due to payment delays.

There are special VAT reverse charge rules in place for certain building contractors and sub-contractors. These regulations, which came into effect on 1 March 2021, make the supply of most construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge only applies to supplies of specified construction services provided to other businesses within the construction sector.

If you are VAT registered in the UK and supply services to the building and construction industry, you must use the VAT reverse charge if the following conditions are met:

• Your customer is registered for VAT in the UK.
• Payment for the supply is reported under the Construction Industry Scheme (CIS).
• The services you provide are standard or reduced-rated for VAT.
• You are not an employment business supplying staff or workers, or both.
• Your customer has not provided written confirmation that they are an end user or intermediary supplier.

When these rules apply, sub-contractors do not add VAT to their supplies for most building customers. Instead, contractors are responsible for paying the deemed output VAT on behalf of their registered sub-subcontractor suppliers. And note, contractors can then reclaim the same amount of VAT as input tax on their VAT return, subject to the usual rules. In effect, contractors are paying their subcontractors' VAT to HMRC and then claiming it back on the same VAT return.

It is important for businesses to understand and comply with these rules in order to avoid potential penalties from HMRC.

A reminder that the government has stated that it will remove preferential tax treatment based on domicile status for all new foreign income and gains (FIG) that arise from 6 April 2025. To replace the present remittance basis of tax, the government will introduce an internationally competitive residence-based regime, providing 100% relief on FIG for new arrivals to the UK in their first four years of tax residence, this is provided that they have not been UK tax resident in any of the 10 consecutive years prior to their arrival.

From 6 April 2025, the protection from tax on income and gains arising within settlor-interested trust structures will no longer be available for non-domiciled and deemed domiciled individuals who do not qualify for the 4-year FIG regime.

The government intends to conduct a review of offshore anti-avoidance legislation, including the Transfer of Assets Abroad and Settlements legislation, to modernise the rules and ensure they are fit for purpose. The intention for this review will be to remove ambiguity and uncertainty in the legislation, make the rules simpler to apply in practice and ensure these anti-avoidance provisions are effective. Further details on the review will be provided in due course. It is not anticipated that this review will result in any changes before the start of the 2026-27 tax year.

A form of Overseas Workday Relief (OWR) will be retained. Government officials will engage with stakeholders on the design principles for this tax relief and further details are expected to be confirmed in the Budget later this month.