Author: Glenn

Can’t pay your tax bill in full by 31 January 2025? HMRC’s online Time to Pay system lets self-assessment taxpayers spread the cost over monthly instalments. With plans available for tax bills up to £30,000, this flexible option can help you avoid late payment penalties.

 Those eligible for the self-serve option can arrange payments online without needing to contact an HMRC adviser. HMRC has revealed that more than 15,000 taxpayers have already set up a Time to Pay payment plan for the 2023-24 tax year.

To qualify for the online Time to Pay option, taxpayers must meet these conditions:

• No outstanding tax returns
• No other tax debts
• No existing HMRC payment plans

For taxpayers who do not meet these requirements or owe more than £30,000, other payment arrangements may be available. These are typically agreed on a case-by-case basis, tailored to individual circumstances and liabilities, allowing businesses and individuals to pay off their debt over time.

HMRC’s Director General for Customer Services, said:

We’re here to help customers get their tax right and if you are worried about how to pay your self-assessment bill, help and support is available. Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.

Intellectual property (IP) refers to creations of the mind, such as inventions, literary works, designs, brand names, and artistic outputs. Whether you are a business owner, inventor, writer, or entrepreneur, protecting your intellectual property is essential for several compelling reasons.

Encourages Innovation and Creativity
Protecting IP incentivises individuals and businesses to invest in creating something new. Without IP protection, others could freely copy or reproduce a creator's hard work without consent, undermining the effort and resources invested. By offering legal rights such as patents, trademarks, and copyrights, innovators can enjoy a competitive edge, encouraging further investment in research and development.

Safeguards Revenue Streams
IP often becomes a valuable asset that can generate income. Businesses can licence their IP to others, sell their rights, or directly benefit from exclusive use. For example, an author can earn royalties from book sales, while a tech company can monetise patents for its software. Without protection, competitors could undercut pricing by copying the product, stripping away potential revenue.

Builds Brand Identity and Consumer Trust
Trademarks, logos, and brand names play a huge role in distinguishing businesses from one another. When customers see a trusted brand's logo, they associate it with quality and reliability. Protecting trademarks ensures no one else can use similar branding to mislead customers. Without this protection, businesses risk losing their reputation and consumer trust.

Provides Legal Recourse
Registering your IP grants you legal rights to act against anyone using your work without permission. Whether it’s unauthorised copying of a design or misuse of a trademark, IP protection allows you to seek remedies, such as damages or an injunction to stop further infringement.

Adds Business Value
IP contributes to the overall value of a business, often representing a significant share of its assets. Strong IP rights can make a business more attractive to investors or buyers because they provide a competitive advantage and predictable revenue. Startups, for example, frequently leverage IP as a selling point when securing funding.

Promotes Economic Growth
On a larger scale, protecting IP fuels economic growth by encouraging innovation and job creation. Industries such as technology, pharmaceuticals, and entertainment rely heavily on IP rights to thrive. By protecting ideas, society benefits from a continuous flow of new inventions, products, and creative works.

In summary, protecting intellectual property is vital for fostering innovation, safeguarding financial interests, and building strong businesses. It provides creators with the recognition, reward, and rights they deserve, benefiting both individuals and the wider economy.

The UK government has announced significant reforms to enhance compensation for customers affected by water service failures. Under new regulations, water companies will be mandated to increase compensation payments for issues such as supply interruptions, sewer flooding, and low water pressure.

These changes mark the first substantial update to compensation rates since 2000. For instance, compensation for internal sewer flooding will rise from £1,000 to £2,000 or more, and payments for low water pressure will increase from £25 to £250. Additionally, compensation will now be compulsory for incidents like boil water notices and missed meter services, which previously did not warrant mandatory payments.

Environment Secretary Steve Reed emphasized that these measures aim to hold water companies accountable and ensure that customers receive fair compensation when services fall short. He stated, "We are clear that the public deserve better compensation when things go wrong, so I'm taking action to make sure that happens."

Consumer advocacy groups have welcomed the reforms. Mike Keil, Chief Executive of the Consumer Council for Water (CCW), noted that the increased payment levels and expanded scope for compensation would incentivize water companies to improve their services. He remarked, "The overhaul of these standards marks a step forward in improving consumer protection and repairing fractured trust in the water sector."

These reforms are part of a broader government initiative to overhaul the water sector, which includes stronger regulations and potential criminal liability for water company executives. The legislation is expected to come into force next year, following a public consultation that showed overwhelming support for the changes.

In addition to the increased compensation, water companies have recently been fined £157.6 million for failing to meet pollution targets, reflecting the government's commitment to enforcing higher standards in the industry.

Overall, these measures represent a significant step towards improving accountability and service quality within the UK's water sector, ensuring that customers are better compensated when things go wrong.

A restaurant in Middlesborough recently challenged a civil penalty notice of £15,000 issued by the Secretary of State for the Home Department under Section 15 of the Immigration Asylum and Nationality Act 2006 (IANA 2006) arguing that their employee was lawfully present in the UK and that they were not given the opportunity to mitigate the penalty.

However, the Court emphasised that the 2006 Act's purpose was to discourage illegal employment and that employers are responsible for conducting any necessary checks on employees' right to work, according to Section 15(3).

This judgement highlights the importance of employers carrying out right-to-work checks to avoid finding themselves in a similar situation. Ensure your employees have the right to work by using an identity service provider offering Identity Document Validation Technology (IDVT).

Scammers are on the rise as the Self-Assessment deadline nears! HMRC warns that HMRC never emails or texts about tax refunds. Stay alert, report suspicious contacts, and protect your money from fraudsters.

Fraudsters are increasingly targeting taxpayers with scam emails as the deadline for submitting self-assessment returns for the 2023-24 tax year approaches. Between November 2023 and October 2024, HMRC received over 144,000 reports of suspicious contact, nearly 72,000 of which involved fake tax rebate claims. There has been a significant rise in scam emails compared to the previous year.

These scams often claim that taxpayers are entitled to a rebate or refund from HMRC and request bank or credit card details to process the non-existent refund. Fraudsters use various methods, including phone calls, text messages, and emails, and may even threaten victims with arrest or imprisonment if a fabricated tax bill is not paid immediately.

HMRC works to identify and shut down scams but continues to urge taxpayers to be vigilant and avoid falling victim. Remember, HMRC only contacts individuals due a refund by post—never via email, phone, text, or third-party companies. Legitimate organizations like HMRC and banks will never ask for your PIN, password, or bank details.

If you receive a suspicious email claiming to be from HMRC, forward it to phishing@hmrc.gov.uk. For suspicious texts, text 60599, and for fraudulent calls, report them via GOV.UK. If you have lost money, contact Action Fraud at 0300 123 2040 or report online. In Scotland, contact the Police on 101.

HMRC’s Chief Security Officer at HMRC, said:

'With millions of people filing their Self-Assessment return before January’s deadline, we’re warning everyone to be wary of emails promising tax refunds.

Being vigilant helps you spot potential scams. And reporting anything suspicious helps us stop criminal activity and to protect you and others who could have received similar bogus communication.

Our advice remains unchanged. Don’t rush into anything, take your time and check ‘HMRC scams advice’ on GOV.UK.'