CONSUMER LAW
RULING ON 'SOLE AGENCY' ESTATE AGENCY CONTRACTS
A Court of Appeal ruling establishes that agents cannot claim their commission under a 'sole agency' agreement unless they can show they have introduced the buyer to the 'purchase' and not just to the property. In the case of Foxtons Ltd v Pelkey Bicknell *, the court decided that Foxtons was not entitled to a £20,000 fee after a buyer it had originally introduced to a property went on to buy it at a later date through another agent.
However, the Office of Fair Trading has pointed out that in some circumstances sellers who sign a 'sole agency' agreement could still be liable to pay the agents their fee, even if another agent ends up selling the property.
Further details of the Estate Agents Act 1979 are available at http://tinyurl.com/6g6275 (Office of Fair Trading Public Enquiries; tel: 0845 722 4499).
* Foxtons Ltd v Pelkey Bicknell, Court of Appeal, Judgement 23 April (http://tinyurl.com/6aw19s).
PERSONAL CURRENT ACCOUNTS 'FAILING CONSUMERS'
Much of the £8bn pa revenue received by banks from personal current accounts is derived opaquely, with 81% coming from insufficient funds charges (£2.6bn pa) and net credit interest income (£4.1 bn pa), reveals an Office of Fair Trading report that concludes the market is not working well for consumers.
Three key issues raised by the report were:-
A minority of customers end up paying more than £500 pa in charges, compared with the average charge of £152 pa per active account. As the complexity and lack of transparency makes it extremely difficult for them to compare their bank account with others, there is little incentive to switch banks. Only 60/o of consumers surveyed by the OFT had switched in the previous 12 months.
Personal current accounts in the UK' is available at http://tinyurl.com/6ns6vc (pdf). An executive summary is available at
http://tinyurtcom/5wsorm (pdf).
A consultation paper, 'Personal current accounts market study' (Oft1005con), seeking views on the three key issues, and possible measures to address them, has been published by the OFT at http://tinyurl.com/64bfdp (pdf) (Office of Fair Trading Publications; tel: 0800 389 3158). Comments by 31 October.
PARLIAMENT APPROVES NEW DOORSTEP SELLING REGULATIONS
From 1 October, people who buy products and services from traders at home will have seven days in which to change their minds, under new doorstep selling regulations* that have now been approved by Parliament.
Businesses will benefit from the need for a single contract when they visit customers, rather than separate ones for solicited and unsolicited sales. However, they will not be able to enforce their contracts if they fail to comply and could end up being investigated by Trading Standards, prosecuted and fined.
*The Cancellation of Contracts made in a Consumer's Home or Place of Work etc Regulations
2008 / 1816, ISBN 0 11 083101 5, TSO, £3 (http://tinyurl.com/6qc3tu -
KITCHEN SUPPLIER IN CONTEMPT OF COURT -
Kitchen equipment supplier, Vance Miller, was fined £90,000 and given a six month suspended sentence on May 29th at Mancester County Court for breaching a 'Stop Now' order granted by the same court in April 2002 for a second time. For the first offence, Mr Miller was sentenced to nine months imprisonment for contempt of court following action by the Office of Fair Trading and was released on providing various undertakings to the court.
The OFT has been receiving further complaints about various businesses, including Discount Kitchens Direct and Kitchens, and, after establishing Mr Miller was involved with them, issued further proceedings for contempt against him in May 2007.
EMPLOYMENT
IMPLEMENTING THE 'RIGHT TO TRAIN' Employees who have worked for their employer for
26 weeks or more will have the legal entitlement to request time to train, under
proposals that the Dept for Innovation, Universities Et Skills claims will apply
to 22m employees in England and help some 300,000 of them receive skills training
every year. Employers are expected to have to treat requests for training -
programme -
The DIUS plans to spend more than £3bn on skills training in 2008/09, rising to £3.6bn a year by 2010, £1bn through the Train to Gain programme.
The consultation paper, 'Time to train', is available at http://tinyurl.com/5qe62n (DIUS General Enquiries; tel: 0207 215 5555). Responses by 10 September.
EQUALITY BILL BANS AGE DISCRIMINATION Measures banning all unjustified discrimination against older people are included in the new Equality Bill, which will also streamline and strengthen existing discrimination legislation. There will be a transitional period to allow organisations time to adjust, and the government plans to consult on provisions to bring the new law into force more quickly in sectors which are ready to comply.
Other key measures in the wide-
• Ban gagging clauses, so employees are able to compare wages and challenge employers who unlawfully pay them less.
• Allow employment tribunals to make recommendations which benefit everybody in the workforce, rather than just the individual who brought the case.
• Allow employers to practise positive discrimination for women and other underrepresented groups.
• Strengthen and streamline public authorities' current equality duties, requiring them to consider how their services affect a wide range of people.
In addition, the government will look at how public procurement can be used to deliver transparency and change, while the Equality and Human Rights Commission will conduct a series of inquiries in sectors where there is clear discrimination.
Business will also be challenged by the development of an equality kite-
Further information on these and other measures were set out in 'Framework for a
fairer future -
NEW ASSESSMENT SYSTEM FOR THE FURTHER EDUCATION SECTOR
A new assessment system for colleges and other further education providers, to be introduced in 2010, has been developed by the Learning and Skills Council in consultation with colleges, providers and other stakeholders to drive up performance and help students and employers select the most appropriate provider for their needs.
'Framework for excellence: putting the framework into practice' is available at http://tinyurl.com/69k276 (pdf). 'Framework for excellence: provider guide 2008/09' is available at http://tinyurl.com/5kz7s4 (pdf) (Learning and Skills Council National Office; tel: 0845 019 4170).
FARMING, FISHING Et FOOD
CONSUMERS' VIEWS ON EATING OUT
850/0 of consumers think that restaurants, pubs and cafes have a responsibility to make it clear what is in the food they serve, concludes a Food Standards Agency survey of 2,000 people across the UK. When asked where they would like to see nutritional information, 81% said at the point where they order food and only 20/o felt it would be useful on company websites. 41% also said they wanted catering establishments to make food healthier, while 220/0 wanted food to remain the same but wanted nutrition information about it.
The FSA is working with catering businesses and other stakeholders to develop recommendations on provision of nutritional information based on consumer research. Details of voluntary commitments made by some of the major UK workplace caterers are available at http://tinyurl.com/6fautx (Food Standards Agency Publications; tel: 0845 606 0667).
MARKETING TERMS ON FOOD LABELLING Farmhouse pate, handmade, quality, selected, premium, finest and best are covered in revised Food Standards Agency guidance on the use of marketing terms on food labelling. Additional advice on the use of terms covered in the first guidance, which was published in 2002, is also included in 'Criteria for the use of the terms fresh, pure, natural etc in food labelling', which is available at http://tinyurl.com/6milqa (pdf) (Food Standards Agency Publications; tel: 0845 606 0667).
UK FOOD SECURITY
Five key questions relating to the continued security of the UK's food supply are
posed in a new Defra discussion paper, 'Ensuring the UK's food security in a changing
world':-
• Whether Defra has correctly identified the challenges facing UK and global food security.
• What are the views of the food industry and general public on the action Defra has taken?
• What further role can the agricultural, retail and food service sectors play?
• Whether the five food security indicators cover the right areas and measure the right things.
• What steps should be taken if the indicators suggest a problem?
• Global availability; diversity of supply; food chain resilience; affordability; safety and confidence.
The discussion paper is available at http://tinyurl.com/5cmcf8 (Defra Publications; tel: 0845 955 6000). Responses by 15 September.
REVIEW OF THE COMMUNITY AGRICULTURAL POLICY (CAP)
Defra is seeking comments on the European Commission's proposals for the scheduled
review of the major reforms to the Common Agricultural Policy (CAP) introduced in
2003, which will also pave the way for longer-
The proposals include improvements to the Single Payment Scheme, changes to the remaining
price support measures in the arable, livestock and dairy sectors and responses to
climate change, bio-
'Consultation on CAP health check proposals' is available at http://tinyurl.com/6rryup (Defra Publications; tel: 0845 955 6000). Responses by 1 September.
FINANCIAL AND LEGAL
OCCUPATIONAL PENSION RISK SHARING Ways in which employers can continue to maintain good occupational pension provision by more evenly sharing risks are considered in a Dept for Work Et Pensions consultation paper, which specifically seeks views on whether pension laws should be amended to allow new types of schemes that share risks more evenly between the employer and individual.
The aim of the consultation is to build a consensus around the motivations, interests and need of employers, while assessing the risks and outcomes of different approaches. These include new approaches that would require significant legislative changes. For example, collective defined contribution schemes, where the employer pays a fixed contribution into a collective fund instead of into individual savings accounts and conditional indexation schemes, which allow inflation protection to be reduced in years when the scheme is not sufficiently well funded.
'Risk sharing consultation' is available at http://tinyurl.com/6ab16c (pdf) (DWP Information Orderline; tel: 0845 731 3233). (Although the consultation closed on 28 August, please refer to the information on 'Consultation Documents'.)
The DWP has also announced that it intends abolishing the 'survivor's benefit rule', which currently requires an individual with a spouse or civil partner to use any contracted out rights in their pension pot to purchase a joint life annuity at the point of annihilation. It is intended that the necessary changes in the rules would be made in 2012.
HELP FOR BINGO CLUBS
The number of category B3 gaming machines (El stake/E500 prize) in licensed bingo clubs
will be increased from four to eight, under Dept for Culture, Media Et Sport proposals designed to help the bingo industry, which has seen about 150/o of clubs close in the past four years.
Plans to review stakes and prizes for low stake gaming machines typically found in pubs and some seaside arcades will also be brought forward a year in the light of concerns that traditional seaside arcades are struggling.
Proposals from the adult arcade industry to increase the number of B3 machines allowed in high street arcades have, however, been rejected on the grounds that they would create 'high street machine sheds and put the public at risk'. The current limit of four will remain unchanged and there will be no review of stakes and prizes until research being carried out by the Gambling Commission into the risks associated with high stake, high prize machines has been completed.
The proposals for bingo clubs are set out in a consultation, 'Gambling Act (Gaming Machines in Bingo Premises) Order 2008', which is available at http://tinyurl.com/3wynvz (pdf) (DCMS General Enquiries; tel: 020 7211 6200). Responses by 26 September.
OVERCHARGING OF PAYMENT PROTECTION INSURANCE
Customers appear to be overcharged by more than £1.4bn pa for Personal Protection Insurance (PPI) because companies face little or no competition when selling it, according to the provisional findings report of the Competition Commission investigation into the sale of PPI in the UK.
The report found serious problems with the PPI market, with the vast majority of
more than 14m UK PPI policies sold at the same time as the customer takes out a loan
or other type of credit. The main findings include:-
• Distributors and intermediaries fail to actively seek to win customers by using the price or quality of their PPI as a competition variable.
• Consumers are hindered in comparing PPI policies.
• Consumers are hindered from switching PPI policies to alternative providers.
• The sale of PPI at the point of sale by credit providers further restricts the extent to which other providers can compete effectively.
The CC consulted in June on a range of possible measures to ensure PPI customers
get a better deal, including:-
The consultation, 'Market investigation into PPI: Notice of possible remedies under Rule 11', which closed on 30th June, is available at http://tinyurl.com/64s3bg (pdf).
'Market Investigation into payment
protection insurance: Provisional findings report' is available at http://tinyurl.com/6fr2kc (pdf) (Competition Commission Switchboard; tel: 020 7271 0100).
BETTER ACCESS TO JUSTICE FOR PARK HOME OWNERS
Proposals for the majority of disputes between park home and site owners to be heard by Residential Property Tribunals, rather than County Courts, have been published by the Dept for Communities Et Local Govt. In addition to giving both parties greater opportunity to put their cases forward and potentially speeding up resolution, it is hoped that low cost and quicker access to justice through the tribunals will encourage many more residents and site owners to resolve their differences amicably.
'A new approach for resolving disputes and to proceedings relating to Park Homes under the Mobile Homes Act 1983 (as amended): A consultation paper' is available at http://tinyurl.com/6bgrrb (DCLG Publications; tel: 0870 1226 236). (Although the consultation closed on 22 August, please refer to the information on 'Consultation Documents'.)
STRENGTHENING THE CONSTRUCTION SECTOR
Commitments to recruit 230,000 trained construction workers and create an additional
13,500 apprenticeship places by 2010 are central to a new joint government-
Other key commitments include:-
'Strategy for sustainable construction' (Urn 08/973) and background information are available at http://tinyurl.com/yua68g (DBERR Publications Orderline; tel: 0845 015 0010).
TOBACCO RETAILERS SETTLE WITH THE OFT Six of the 11 retailers and two manufacturers who, in April, were found by the Office of Fair Trading in its 'Statement of Objections' to have been in breach of the Competition Act 1998 (ref Business Information 142, page 8) have admitted liability and agreed to pay combined penalties of £173.3m, reduced to E132.3m after leniency and early resolution discounts. They are: Asda; First Quench; Gallaher; One Stop Stores (formerly TEAS Stores), Somerfield and TM Retail.
Sainsburys received complete immunity from financial penalties after being the first to apply for leniency. Investigations against the Cooperative Group, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco are continuing.
A EUROPEAN SMALL BUSINESS ACT
A combination of principles that will have to be adopted at the highest political
level to change the negative perception of entrepreneurs and concrete measures to
make life easier for small businesses are included in a new Small Business Act for
Europe, which promises to 'replace red tape with a red carpet' for the EU's 23m small
and medium-
Granting a second chance to business failures, facilitating access to finance and
enabling SMEs (small and medium-
New legislation will focus on four areas:-
• A new General Block Exemption regulation on state aids will increase the aid intensity for SMEs, making it easier for them to benefit from training, RaD, environmental protection and other types of aid.
• A new statute for a European private company will allow a 'Societe privee europeenne' (SPE) to be created and operate according to the same uniform principles in all member states. This will address the current onerous obligations on SMEs operating across borders.
• Member states will have the option of applying reduced Vat rates for locally supplied services mainly provided by SMEs.
• An amendment to the directive on late
payments will help ensure SMEs are paid
within the 30-
THREE IMPRISONED FOR BID RIGGING
In the first convictions for cartel offence since criminal prosecution powers were given to the Office of Fair Trading by the Enterprise Act 2002, three UK businessmen have been imprisoned for between two and a half and three years for dishonestly participating in a cartel to allocate markets and customers, restrict supplies, fix prices and rig bids for the supply of marine hose and ancillary equipment in the UK.
David Brammar and Bryan Allison, respectively managing director and sales director
of Dunlop Oil and Marine Limited of Grimsby, and Peter Whittle, an independent consultant
who in practice worked full-
The charges related to the period between 20 June 2003, when the cartel offence came into force under the Act, and 2 May 2007, when the men were arrested in the USA. The cartel was global in its scope and involved all manufacturers of marine hose, world wide.
Details of the OFT's leniency programme for
those who confess to cartels are available at http://tinyurl.com/67rqa6. Anyone who has information about cartels should call OFT's cartel hotline on 0800 085 1664. Details of the rewards available are at http://tinyurl.com/2dsmnn.
REFINING THE GANGMASTERS LICENSING REGULATIONS
Proposals to clarify the scope of the licensing scheme operated by the Gangmasters
Licensing Authority to ensure licensing is not required in circumstances such as
charities supplying workers in specified areas or co-
'Consultation on the operation of the Gangmasters Licensing (Exclusions) Regulations 2006' is available at http://tinyurl.com/6g5tb7 (Defra Publications; tel: 0845 955 6000). Comments by 20 October.
MODERNISATION OF THE TRADE MARKS RULES
Two issues raised by responses to the UK Intellectual Property Office's March, 2008 consultation on proposals to modernise and consolidate the Trade Marks Rules 2000 are addressed in a response document and
guidance for business on the Trade Mark Rules 2008 Regulations, which are now before parliament.
The issues related to changes to the opposition period, which will be reduced from three months to two months initially where there is no opposition, and to the address for service requirements. There was broad support for most of the other proposed changes.
The response to the consultation, 'Modernisation and consolidation of the trade marks rules', is available at http://tinyurl.com/6m57fj (pdf), while 'Guidance for business on trade marks rules 2008' is available at http://tinyurl.com/6gvqz9 (pdf) (UK Intellectual Property Office Switchboard; tel: 01633 814000).
SMALL BUSINESSES BREAKING COPYRIGHT LAW
Thousands of small businesses could be breaking copyright law by playing music in public to customers or employees without understanding that permission is needed from the writers and composers, claims the Performing Rights Society, which represents some 60,000 UK songwriters and composers.
A PRS music licence, which can cost as little as £66 pa, gives permission to play more than 10m pieces of music in all formats and are tailored according to the size of the business and the way in which it is being played.
The PRS is writing to tens of thousands of small businesses to make them aware of the legal action that can result from breaking UK copyright law by playing music without a PRS licence and also to raise awareness of the benefits of music in relation to improving staff morale and profitability, enhancing atmosphere and influencing customer behaviour.
Advice and information are available from the Performing Rights Society at http://tinyurl.com/6msvd6 or by calling 0800 068 4828.
NEW PLANNING RULES SUPPORT PROTECTION OF SMALL SHOPS
Local authorities will be given more scope to refuse out-
The simplistic 'need' test -
Other provisions promote retail choice and retail diversity, test design quality, consider the wider benefits to communities, encourage investment in disadvantaged areas and ensure development is accessible by a range of transport modes.
The DCLG will also respond at a later date to the recommendation arising from the Competition Commission's investigation into the supply of groceries for a 'competition test' to be introduced into the planning system requiring authorities to assess the impact on competition of planning applications for new grocery floor space over 1,000 sq m.
'Proposed changes to PPS6: Planning for town centres' is available at http://tinyurl.com/5z4sh2 (pdf) (DCLG Publications; tel: 0870 1226 236).
Responses by 3 October.
AGREEMENT ON FLOOD INSURANCE An agreement between the Association of British Insurers (ABI) and the government on actions each will take over the long term has ensured flood insurance will be widely available now and in the future.
Under the agreement, the government will put in place a long-
The competitive flood insurance market that should result from these steps will not require the 2000 Statement of Principles, which will end in 2013. Until then, insurers will continue to make flood insurance available for homes and small businesses where flood risk is no worse than a 1 in 75 annual risk. They will also offer flood cover to existing small business and domestic customers at significant flood risk, providing there are plans to reduced flood risk to an acceptable level within five years.
'ABI/government statement on flooding and insurance for England' is available at http://tinyurl.com/55gwgw (Defra Publications; tel: 0845 955 6000).
PROTECTING HOMES AND BUSINESSES FROM FLOOD RISK
Five steps that local authorities should follow in order to make maximum use of new
rules to prevent inappropriate building on non-
• Identify what the flood risks are.
• Avoid risk by prioritising non-
• Critically assess whether the need for a new development outweighs flood risk and follow Environment Agency advice.
• Control flooding using sustainable drainage and good design.
• Ensure that all new buildings that have to be in flood-
Development and Flood Risk -
Guide' is available at
http://tinyurl.com/6kof8b (DCLG
Publications; tel: 0870 1226 236).
Advice and information will be available from Spring 2009 to help individuals and businesses protect their properties and possessions from flooding from a new
interactive website and phone line service developed by Defra in collaboration with
the Environment Agency. Defra will also consult on options for increasing the use
of property-
STRENGTHENING FINANCIAL STABILITY AND DEPOSITOR PROTECTION
Proposals focusing on five key objectives for strengthening the framework for financial stability and protecting depositors have been
launched by HM Treasury.
The proposals, which build on the established model of the Financial Services Authority
being responsible for individual institutions and the Bank of England responsible
for the stability of the financial system, aim to achieve the following objectives:-
• Strengthen the stability and resilience of the financial system in the UK and internationally.
• Reduce the likelihood of individual banks facing difficulties through regulation and liquidity assistance.
• Reduce the impact if a bank gets into difficulties.
• Provide effective compensation
arrangements.
Strengthen the Bank of England and ensure co-
Financial stability and depositor protection: further consultation' is available at http://tinyurl.com/5v49fa (pdf) (HM Treasury General Enquiries; tel: 020 7270 4558). Comments by 15 September.
HEALTH AND SAFETY
THE FUTURE OF TOBACCO CONTROL Minimum 20-
• Removing branding and logos from all cigarette packages.
• Restricting access to cigarette vending machines by young people, either through banning them altogether or through systems that restrict purchase to adults.
• Restricting the display of tobacco products in shops.
Banning the advertising of smoking
paraphernalia, including cigarette papers.
The future of tobacco control -
MIGRANT WORKERS -
Essential guidance for employers, employment agencies, employment businesses and other labour providers on their health and safety responsibilities towards migrant workers has been published by the Health Et Safety Executive.
'Migrant workers -
explains the meaning of the relevant terms
and
defines who is responsible for the health and safety of migrant workers and what their main responsibilities are. It also explains the role of risk assessment, the information, instruction, training and supervision that is required, record keeping requirements and how to help with language issues.
The guidance is available at http://tinyurl.com/5mqtma (HSE Infoline; tel: 0845 345 0055).
GUIDANCE ON EMPLOYERS' HEALTH Et SAFETY DUTIES
The implications of recent case law and the Corporate Manslaughter and Corporate Homicide Act 2007 on the health and safety responsibilities of directors and other
individuals are emphasised by the Health a Safety Executive in guidance, 'Legal responsibilities of employers', available at http://tinyurl.com/5zx8xj (HSE Infoline; tel: 0845 345 0055). The guidance points out that recent case law has confirmed that directors cannot avoid a charge of neglect under section 37 of the Health a Safety at Work etc Act 1974 by arranging their organisation's business so as to leave them ignorant of circumstances which could trigger their obligation to address health and safety breaches.
'SMALL' REDUCTION IN FATAL INJURIES AT WORK
There has been a small reduction in the number of people who lost their lives at work, according to provisional figures released by the Health Et Safety Executive that show 228 people lost their lives in 2007/08 compared with 247 in the previous 12 months. There was a slight increase (from 36 to 39) in agriculture and decreases in all other sectors, including construction (from 79 to 72).
While welcoming the headline figure, HSE warned that that there was no room for complacency
as the results showed a plateau in the overall five-
'Fatal injury statistics' are available at http://tinyurl.com/yq8fsy (HSE Infoline; tel: 0845 345 0055). Complete statistics will be published in the autumn.
TAXATION
SUBCONTRACTOR DETAILS FOR CIS
HM Revenue Et Customs will no longer routinely provide bulk information on payments and deductions to subcontractors and their agents for their end of year Construction Industry Scheme returns, although it will continue to help those who have a genuine need for this information.
The change of policy, says HMRC, reflects the growing use of their resources by subcontractors, who fail to keep their own records of the payments and deductions made to them by contractors, relying on HMRC to supply it. In routinely providing the
information, HMRC considers it is effectively condoning their failure to meet their obligations.
Further information is available at http://tinyurl.com/66r7ee (Customs and Excise National Advice Service; tel: 0845 010 9000).
TIPS DON'T COUNT TOWARDS MINIMUM WAGE
HM Revenue Et Customs' view that tips do not count towards the National Minimum Wage (NMW) unless they are paid directly through the employer's payroll has been confirmed by an Employment Appeal Tribunal ruling in the case of Annabel's restaurant and nightclub.
In overturning an Employment Tribunal decision (October 2007), the Appeal Tribunal accepted HMRC's argument that where service charges are paid by the customer to the employer, who then pays them into a 'tronc' for distribution to employees, the sums paid to employees are not 'paid by the employer' for the purposes of the NMW.
HMRC hailed the decision as 'good news for the UK's restaurant and bar workers' and reminds workers in all sectors who believe they are not being paid the NMW rate to contact the NMW helpline on 0845 6000 678.
*The Commissioners for HMRC v Annabel's (Berkeley Square) Ltd; George (Mount Street) Ltd; Harry's Bar Ltd (UKEAT/0562/07); Employment Appeal Tribunal, Judgement 13 June 2008 (http://tinyurl.com/5swx7a).
EMAIL PHISHING FRAUD
Examples of the most common types of fraudulent email have been published by HM Revenue
a Customs to help taxpayers recognise what is known as 'phishing' activity designed
to allow fraudsters to get hold of bank and other personal details. The email scams
range from notification of entitlement to tax rebates in exchange for personal details
and bank account information to fake TFT tax payment forms and 'anti-
Examples are published at http://tinyurl.com/2zsfhm (Customs and Excise National Advice Service; tel: 0845 010 9000). The website will be regularly updated with examples of the latest phishing activity.
MODERNISING THE TAX SYSTEM
As part of a wider initiative to modernise the tax system and make it more consistent, efficient and effective, HM Revenue Et Customs has published a consultation paper seeking views on the sort of items that should be included in a Taxpayers' Charter, alongside two other consultation papers dealing with different aspects of tax administration.
The aim of the Taxpayers' Charter is to set out the rights and obligations of taxpayers
in plain language. HMRC suggests three possible roles for the new charter:-
The consultation also looks at:-
'A new charter for HMRC and its customers' is available at http://tinyurl.com/3zznth (pdf). (Customs and Excise National Advice Service; tel: 0845 010 9000).
Filing Returns and Paying Tax on Time
HMRC inherited the current framework and legislation for imposing penalties for late
or non-
In this latest consultation, it is seeking views on the principles that should underpin
any new penalty structure for late or non-
'Meeting the obligations to file and pay tax on time' is available at
http://tinyurl.com/3o3pf6 (pdf).
A Harmonised Interest Regime
The case for harmonising and simplifying the rules on interest charged by HMRC on tax paid late, as well as interest paid by HMRC on overpayments, is explored in a consultation paper that identifies the principles that should underpin a modern interest regime and compares them with some of the
inconsistencies and historical anomalies that exist within the inherited interest regime. It is closely linked to the previous consultation on filing returns and paying tax on time.
Interest -
The deadline for responses to all three consultations is 11 September.
TELECOMMUNICATIONS
CLARITY ON BROADBAND SPEEDS
Internet service providers (ISPs) are required to provide customers with an accurate
estimate of the maximum speed their broadband lines can support at the point of sale
in the shop, over the phone or on the Internet under a new voluntary Code of Practice
published by Ofcom. Other steps required by the code, which aims to ensure greater
clarity in broadband markets, include:-
• Resolving technical issues to improve speed and offering customers the choice to move onto a lower speed package when the estimates are inaccurate.
• Ensuring all sales and promotional staff have a proper understanding of the products so they can explain the meaning of the estimates.
• Providing estimates on usage limits and alerting customers when they have breached them.
Ofcom is urging all fixed line ISPs to sign up to the code and implement it within six months of signing.
'Voluntary code of practice: broadband speeds' is available at http://tinyurl.com/6eotts (Ofcom Enquiries; tel: 0845 456 3000). Advice for consumers on broadband speeds is available at the same web address.
REDUCING MOBILE PHONE TARIFFS IN EUROPE
Recommendations for a single EU regulatory regime for fixed line and mobile termination rates will be published in October by the EU Telecoms Commission, which expects consistent regulation and genuine competition among mobile phone service suppliers to reduce charges for mobile phone calls by some 70% over the next three years.
The disparity of rates across Europe is reflected in some 770 proposals from national regulators over the past five years. Currently, termination charges range from E0.02/min in Cyprus to more than E0.18/min in Bulgaria. They are also nine times higher than fixed line termination rates.
National regulators who bring down termination rates in their own countries risk placing their own country's mobile operators at a disadvantage if a neighbouring regulator still allows higher rates. Fixed line operators and their customers, who pay higher termination rates for calls made from fixed lines to mobiles, are also indirectly subsidising mobile operators, while smaller mobile suppliers have to pay large sums for call termination to large operators when they try to compete with very popular flat rate offers.
The Commission's public consultation on termination rates is available at http://tinyurl.com/5wf9bq (Official EU and Council of Europe Publications and Documents; tel: 020 7873 8372). Comments by 10 September.
REVIEW OF QUALITY OF SERVICE INFORMATION
Views on whether the 2005 Quality of Service (QoS) Directive, which requires certain voice service providers to publish specified QoS parameters on an independent website, remains appropriate, are sought by Ofcom in a consultation that represents the opening of the first phase of a wider review of QoS information.
Ofcom has identified various areas where the existing scheme is not working as well
as it should and the consultation considers changes that could be introduced if it
were amended or replaced, including:-
• Expanding it to include services other than fixed voice.
• Revising the threshold for providers required to publish information.
• Improving existing processes for data verification.
• Introducing alternative ways of promoting awareness of the information among subscribers.
'Review of QoS information' is available at http://tinyurl.com/6jdzqo (Ofcom Enquiries; tel: 0845 456 3000). Responses by 8 October.
TRANSPORT
SUPERLORRIES WILL NOT BE PERMITTED ON BRITISH ROADS
Proposals to introduce significantly longer and heavier goods vehicles onto British roads have been rejected by the Dept for Transport following the findings of an independent report that a number of issues make their use in the UK impracticable on a trial or permanent basis.
The study, which looked at eight possible scenarios, found superlorries were incompatible with many UK roads and junctions and that their use would require substantial investment in infrastructure. There were also uncertainties about how efficiently such lorries could be used, particularly when sourcing loads of sufficient size to make return journeys sustainable and about their impact on the viability of existing rail freight services and the potential for future growth.
Environmental drawbacks included increased CO2 emissions due to goods shifting from rail to road. The report did, however, show there could be worthwhile benefits in permitting a modest increase in the current length of articulated vehicles.
'Longer and/or longer and heavier goods vehicles -
A SLOW-
The rate of increase of the UK's biofuels target should be reduced to 0.50/o pa until 2013/14, proposes a major review into the indirect effects of biofuels led by Professor Ed
Gallagher. Targets above 50/o by volume should only subsequently be implemented if biofuels are shown to be demonstrably sustainable and producers have a specific obligation to use advanced technologies.
Key conclusions of the review, which was commissioned by the Dept for Transport in
the light of new evidence causing concerns about the adverse impact of an increasing
demand for biofuels, include:-
• Creating the right policy framework for a sustainable biofuels industry is challenging and will take time.
• If left unchecked, current policies would reduce biodiversity and could even cause greenhouse gas emissions, rather than savings.
• Increasing demand for biofuels contributes to rising food prices.
• Biofuels production must target idle and marginal land and use wastes and residues as feedstock.
• Specific incentives are needed to encourage advanced technologies that utilise feedstocks grown on idle or marginal land.
'The Gallagher review of the indirect effects of biofuels production' is available from the Renewable Fuels Agency website at http://tinyurl.com/5r4nmp (RFA; tel: 0207 944 8229).
COMPULSORY CO2 TARGETS FOR NEW CARS The proposed European target of 130g of carbon dioxide a kilometre by 2012 as the fleet average for all new cars produced by each manufacturer will both cut CO2 emissions by 6m tonnes a year by 2012 and incentivise the development of fuel efficient technology, claimed transport secretary, Ruth Kelly, at the launch of the UK consultation on the EC proposals.
The UK government is also urging the EU to adopt a longer-
'European regulation on new car CO2 emissions -
CIVIL ENFORCEMENT OF ILLEGAL PARKING A measure that allows non-
Contraventions (England) General (Amendment) Regulations 2008 / 1513, ISBN 0 11 081842,
TSO, £3 (http://tinyurl.com/6jybmn -
VAT
VAT REVERSE CHARGE FOR MOBILE PHONES The Vat reverse charge rules applying to sales of mobile phones and/or computer chips are explained in HM Revenue Et Customs Notice 735.
The reverse charge makes it the responsibility of the customers rather than the supplier
to account for Vat. It applies to sales of specified goods valued at more than £5,000
made from one Vat-
The reverse charge does not apply to mobile phones supplied with a contract for airtime,
mobile phone accessories supplied separately from the phone, walkie-
The guidance explains the checks businesses must make, how the reverse charge operates and how it affects accounting schemes.
HMRC-
PARTIAL VAT EXEMPTION
Ideas for simplifying three areas of the Vat partial exemption rules have been published
for consultation by HM Revenue Et Customs in Brief 30/08. The rules apply to businesses
that incur costs relating to both taxable and exempt supplies and therefore need
to calculate how much Vat they can recover. The areas under consideration are:-
• The standard method, which is the
calculation by which most smaller partly exempt businesses determine the amount of input tax they can recover.
• The de minimis rules, which apply to businesses which incur insignificant amounts
of Vat in making exempt supplies and can therefore recover all business-
• Capital goods schemes, which mainly affect larger businesses that incur costs on capital items such as land or buildings.
The consultation paper, 'Simplifying the Vat partial exemption and capital goods
scheme rules', also invites comments on the possibility of combining partial exemption
and business/non-
FUTURE REGULATION OF VAT INVOICING HM Revenue Et Customs is seeking the views of
businesses on the approach it should adopt in negotiations with the European Commission
on the future regulation of Vat invoicing, including electronic invoicing. In particular
it is seeking views on:-
• The principles underlying negotiation and change -
• Changes to current Vat invoicing.
• The future of Vat invoicing, such as the introduction of European standard invoices.
• Electronic invoicing -
• Involvement of the JVCC through the establishment of a sub-
'Future regulation of Vat invoicing' (HMRC ref: JVCC (08) 08) is available at http://tinyurl.com/5j7uun (pdf) (Customs and Excise National Advice Service; tel: 0845 010 9000). (Although the consultation closed on 29 August, please refer to the information on 'Consultation Documents'.)