The Office for Budget Responsibility (OBR) has offered the following explanation:

“Fuel duties are levied on purchases of petrol, diesel and a variety of other fuels. They represent a significant source of revenue for government. In 2023-24, we expect fuel duties to raise £24.7 billion. That would represent 2.2 per cent of all receipts and is equivalent to £850 per household and 0.9 per cent of national income.

Fuel duty is levied per unit of fuel purchased and is included in the price paid for petrol, diesel and other fuels used in vehicles or for heating. The rate depends on the type of fuel:

• the headline rate on standard petrol and diesel is 52.95 pence per litre, it has been frozen since 2011-12 and it reflects a temporary five pence cut introduced in 2022-23 and subsequently extended to 2023-24 and 2024-25. This also applies to biodiesel and bioethanol.
• the rate on liquefied petroleum gas is 28.88 pence per kilogram.
• the rate on natural gas used as fuel in vehicles (e.g. biogas) is 22.57 pence per kilogram; and
• the rate on ‘fuel oil’ burned in a furnace or used for heating is 9.78 pence per litre.

VAT is applied after fuel duty, so, for example, the pump price of a litre of petrol currently reflects the pre-tax price plus 52.95p for fuel duty plus 20 per cent VAT on the pre-tax price and a further 10.59p for VAT at 20 per cent on fuel duty.”

The interesting point here is that the fuel duty is a fixed price per litre and so over time the real value of the duty will decline due to inflation. This has been the case for many years.

Will this be an item that government will increase in the October budget?

The government offers the following information regarding business cashflow.

If you do not have enough money coming in to pay for goods, services and taxes your company has, you are at risk of insolvency.

Why is cashflow important?

‘Cashflow’ is the term used for money coming in and going out of your company. Not having sufficient cash is one of the most significant factors in companies failing, even when they are trading effectively.

Having ready access to cash means you can pay bills as and when they are due.

When are you likely to experience cashflow problems?

Cashflow problems can strike at any time. But typically, you are most at risk from cashflow difficulties when your business starts and during periods of growth.

Starting up

When you start your company, there may be a lot of overheads and not a lot of money coming in. You might need to invest in equipment, materials, staff, training, premises or advertising.

Keeping a reserve of cash may reduce risks as you get started.

Business growth

Even successful business can experience cashflow difficulties as they grow.

If you are planning to expand your business, make sure you have funds available for unexpected as well as regular expenses.

Managing your cashflow

A key factor in managing your cashflow is making sure you are paid for goods and services on time.

Many businesses operate payment terms ranging from 30 to 90 days before invoices are paid.

Delays in getting paid are often the reason for cashflow difficulties so it is important to always agree payment terms that suit your individual circumstances. Anticipating payment delays is also something companies should consider.

If you are concerned about your business cash flow, please call so we can help you prepare a cashflow forecast.

HMRC together with the Department for Work and Pensions (DWP) have issued a press release urging tens of thousands of people to check if they are eligible to boost their State Pension utilising Home Responsibility Protection (HRP).

This HRP scheme has helped protect parents’ and carers’ State Pension. HRP reduces the number of qualifying years a person with caring responsibilities needed to receive, to secure a full basic State Pension. HRP was replaced by National Insurance credits in 2010.

Between 6 April 1978 and 5 April 2010, most eligible individuals automatically received Home Responsibilities Protection (HRP). However, this did not apply in all cases, and it is still possible to apply for HRP if you believe it’s missing from your National Insurance (NI) record. During Pensions Awareness Week, HMRC is encouraging those affected—primarily women at or near State Pension age—to check their NI records for gaps and potentially increase their State Pension at no cost.

If HRP is missing from someone’s NI record, it does not necessarily mean that their State Pension calculation is wrong, but it could be, especially if they took significant time-out from employment to raise a family.

The Exchequer Secretary to the Treasury said:

“The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.”

If a claim is successful, HMRC will update the individual’s NI record, and the DWP will recalculate their State Pension entitlement. Depending on the individual’s situation, their State Pension entitlement may increase or stay the same.

The Insolvency Service is a government agency that provides services to those affected by financial distress or failure by seeking to tackle financial wrongdoing and maximising returns to creditors. The Insolvency Service operates as an executive agency of the Department for Business and Trade (DBT). 

The Insolvency Service has issued a new press release warning people that fraudsters are impersonating the agency and its staff. It seems there has been a significant increase in scams involving the impersonation of the Insolvency Service and its employees.

Fraudsters are sending fake letters claiming that the Insolvency Service has authorized third-party companies to recover lost investments, which in reality, are part of the scam itself. These companies, which are registered at Companies House, are also being impersonated by criminals. The Insolvency Service has received over 300 complaints so far this year and it’s clear that this is becoming a growing issue.

The Insolvency Service is urging the public to be vigilant especially if they have had failed investments and receive communications about recovering funds through third parties. It’s important to verify any communication directly with official sources before taking any action.

The press release lists the following important points to be aware of:

• Fraudsters have been impersonating Insolvency Service staff through scam emails, letters and phone calls.
• The scammers contact individuals who have lost money in previous investments, claiming to be from the Insolvency Service.
• The Insolvency Service will never ask for an upfront fee or authorise another company to recover money lost in a previous investment for an upfront fee.
• All genuine Insolvency Service email addresses follow the format firstname.surname@insolvency.gov.uk. No official Insolvency Service email addresses or websites will use a domain ending in ‘.co.uk’, ‘.com’ or similar.

Pension Credits can provide extra income to those over State Pension age and on a low income. The Department for Work and Pensions (DWP) recently launched a Pension Credit action week to boost take-up of this vital benefit.

It is thought that up to 880,000 pensioners could be missing out on benefits worth on average up to £3,900 per year. A valid claim for Pension Credit will also entitle eligible pensioners to secure this year’s Winter Fuel Payment. This follows the Chancellor’s recent announcement that the Winter Fuel Payment will be means tested.

Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible. If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs. Not all benefits are counted as income.

The DWP have also joined forces with charities, broadcasters and a range of partners to encourage pensioners to check if they are eligible for Pension Credits. The DWP is also asking families, friends and neighbours of elderly people to assist if required.

Pensioners must apply by 21 December 2024 in order to make a backdated claim for Pension Credit and be eligible for the Winter Fuel Payment. Details of how to make an application for Pension Credit can be found on GOV.UK at https://www.gov.uk/pension-credit/how-to-claim.