Tag: Press Release

The press release issued by HM Treasury on 3 January 2023.

There is less than one month for around 5.7 million Self Assessment customers to file their tax return or they may face a penalty, HM Revenue and Customs (HMRC) said.

More than 12 million customers are expected to file a tax return for the 2021 to 2022 tax year by 31 January 2023. HMRC has revealed that 129 customers submitted theirs on 1 January between 00:00 and 00:59, joining those customers who have already met their obligations.

More than 42,500 customers chose to see in the new year by submitting their return on 31 December and 1 January:

New Year’s Eve: 25,043 tax returns were filed. The peak time for filing was between 14:00 and 14:59, when 2,713 returns were received.
New Year’s Day: 17,571 tax returns were filed. The peak time for filing was between 15:00 and 15:59, when 1,697 returns were received.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

There is less than one month for customers to submit their tax returns and my message to those yet to start is: don’t delay, do it online. HMRC provides lots of useful information to help you get started. Visit GOV.UK and search ‘Self Assessment’.

HMRC is warning customers that the deadline to submit a paper return has passed and tax returns can only be submitted online. Anyone who files after 31 January may face a penalty.

HMRC will treat those with genuine excuses leniently, as it focuses on those who persistently fail to complete their tax returns and deliberate tax evaders. Customers who provide HMRC with a reasonable excuse before the 31 January deadline can avoid a penalty after this date. The penalties for late tax returns are:

an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
after 12 months, another 5% or £300 charge, whichever is greater
There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

The press release issued by HM Treasury on 2 December 2004.

The Government today announced the outcome of its review of the regulations facing small firms and their ‘business angel’ investors. This formed part of the two year review of the Financial Services and Markets Act 2000 (FSMA).

The key changes are:

• Introducing self-certification for high net worth and sophisticated investors, making it much easier for these groups to exempt themselves from the financial promotion rules. This will make it easier for small firms to approach wealthy or experienced investors.
• Making it easier for small firms to promote to potential investors by allowing them to promote to anyone they ‘reasonably believe’ to be self-certified high net worth or sophisticated.
• Ensuring consumer protection by ensuring that unapproved financial promotions come with a prominent health warning, and by including clear warnings, tested with consumers, on the self-certification statements.

The Government believes today’s changes will mean that many companies facing difficulties in obtaining funding will find it easier to approach and attract investors. Addressing barriers to finance is a key part of delivering the Government’s agenda to build a more enterprising Britain. The changes are in response to a consultation paper on informal capital raising and the financial promotions regime published earlier in the year.

Announcing the outcome of this part of the two-year review, Stephen Timms said:

“Today’s changes should improve access to finance for small and high growth firms who are looking for equity investment from business angels.  It is an excellent example of Government responding to concerns that legislation isn’t doing its job. Now business angels should find it easier to become certificated, and small firms should find it easier to reach a pool of certificated investors. Both groups will face less burdensome regulation.”

The press release issued by HM Treasury on 8 December 2004.

Better regulation holds the key to jobs and growth in Europe, according to a new joint statement on regulatory reform agreed yesterday. The statement was signed by the Chancellor, the Secretary of State for Trade and Industry, and the Finance and Economics Ministers of Ireland, the Netherlands, Luxembourg, Austria and Finland.

The joint statement, endorsed by the six consecutive Presidencies of the European Union during 2004, 2005 and 2006, highlights the important advances made in reforming EU regulation since the launch of the original Four Presidency statement in January of this year. It presents further concrete proposals to reduce the economic burden of EU regulation.

The joint statement, Advancing regulatory reform in Europe, notes both the EU’s achievements over the past year, and the challenges that lie ahead if Europe is genuinely to put in place a world-class regulatory framework. In particular, it calls for further action to:

• reduce the administrative burden associated with EU regulation, with regulatory impact assessments to measure and explain administrative costs by the end of 2005;
• ensure that new regulations are effectively scrutinised for their impact on competitiveness, with a cross-cutting role for the EU’s Competitiveness Council of Ministers;
• tackle economic burdens in the stock of existing EU law, with further action taken in 2005 to identify priority areas for simplification;
• establish clear and measurable objectives and goals for monitoring and controlling the economic and administrative burden of EU law;
• strengthen business input into the regulatory process, for example through a new standing business taskforce to advise on reform and report annually to the EU institutions;
• develop new arrangements for formal external audit and quality control of EU regulatory impact assessments;
• enhance pre-legislative consultation, including through greater use of Green and White Papers; and
• ensure non-legislative options get stronger consideration in EU policy discussions.

The statement builds on the announcements in last week’s Pre-Budget Report on changes to relieve regulatory burdens on businesses in the UK, including the interim report of the Hampton Review, the extension of common commencement dates, and systematic post-implementation reviews.

The press release issued by HM Treasury on 10 December 2004.

Paul Boateng, the Chief Secretary to the Treasury this week jointly chaired the UK-China Finance Dialogue, designed to extend and deepen the “comprehensive and strategic partnership” between the UK and China.

The dialogue covered UK and Chinese macroeconomic developments, industrial restructuring in a globalised economy; G7 and G8 co-operation, and financial reform. It also covered the need to promote enterprise and increase investment in science and innovation, to ensure that both nations and their citizens are equipped to cope with the challenges of greater global competition and the pace of technological change.

Paul Boateng and senior representatives from the UK financial services sector participated in a roundtable with counterparts from the Chinese banking sector.  They discussed a broad range of issues, covering in particular financial market liberalisation and the mutual benefit to the UK and China of closer co-operation.  Paul Boateng offered UK expertise in aiding the ongoing financial reform programme in China, an offer which was warmly received.

The meeting comes after the Pre-Budget Report produced a detailed analysis of the long term economic challenges and opportunities facing the UK, including the growth of China as a major economic power, with the Chancellor saying:

“By 2015 Asia will be responsible for as much as 25 per cent of world trade.  Yet only 1 per cent of British exports go to China and just 1 per cent to India. So having set an objective to build trade links with Asia that match those in Europe and America, we propose that the China-UK Financial Dialogue now expand its role with enhanced private sector participation.”

Mr Boateng held a number of bilateral meetings including with the Finance Minister, the Governor of the People’s Bank of China, the senior Vice Minister at the National Development and Reform Commission (NDRC), and the Chairman of the China Banking Regulatory Commission.

Mr Boateng said:

“The emergence of China as a modern economic powerhouse is having a major impact on world markets, and this is set to increase.

We know that a more open and prosperous China will be to the benefit of us all – and we welcome this opportunity to strengthen the economic ties between our countries, and to develop stronger links between our Governments, and also between our businesses and our citizens.”

The press release issued by HM Treasury on 13 December 2004.

The Government will for the first time pay Child Benefit to the families of 16-19 year olds in unwaged work-based learning and 19 year olds completing a course of education or training, thanks to measures set out in the Child Benefit Bill published today.

Supporting young people to achieve, published alongside Budget 2004, set out a package of short-term measures and a long-term vision to improve financial support for 16-19s, to ensure that all young people can stay on in education or training after 16.

The Bill, which is the first Child Benefit Bill since 1975, is an important step towards implementing these proposals.

The measures have been developed in consultation with voluntary sector youth organisations, learning providers and businesses.

Commenting on the Bill, the Paymaster General Dawn Primarolo said: m“We want to see all young people reach the age of 19 ready for higher education or skilled employment.  This is essential to increase individual opportunity and build a flexible, productive and high skilled economy.

“The successful national roll out of the Education Maintenance Allowance has demonstrated the importance of financial support and incentives in delivering higher post-16 staying on rates.  Building on this success, the Child Benefit Bill will support young people’s choices between education and work-based learning, and ensure that young people are supported until they finish their course.”

The press release issued by HM Treasury on 17 December 2004.

The Government asked Sir Derek Morris to conduct a wide-ranging independent review of the UK actuarial profession. Sir Derek Morris has today published his interim assessment.

The issues identified in the interim assessment include:

• the profession overall has been too insular and slow to adapt to changing circumstances;
• there has been insufficient transparency in actuarial advice;
• there has been inadequate scrutiny, challenge and market-testing of actuarial advice by users: such as some pension fund trustees and Boards of insurers;
•  there has been a lack of clarity about the accountability of actuaries to the wider public interest;
• in the past the educational syllabus has failed to take full account of developments in actuarial and non-actuarial thinking;
• professional standards have been weak, ambiguous or too limited in range; and perceived as too influenced by commercial interests;
• self-regulation has not been sufficient to address these issues.

The interim report identifies issues and policy options in three broad areas: the level of choice and competition in the market for actuarial services, the regulatory framework for the actuarial profession and the future role of the Government Actuary and the Government Actuary’s Department.

The review’s preliminary finding is that there is a reasonable level of choice and competition in the market for actuarial services for all but the largest pension funds but that there is inadequate market-testing and scrutiny of actuarial advice. The review identifies a need to encourage market testing; discourage the bundling of actuarial advice; improve actuaries’ communication skills and to increase user knowledge and understanding.

The review identifies a number of weaknesses in the current self-regulatory framework of the actuarial profession: including weaknesses in professional actuarial standards; inadequate protection of the interests of consumers and pension scheme members and the perception that commercial interests may have superseded the interests of the wider public.

The report proposes three alternative models of regulation: continued self-regulation by the profession; independent oversight of the profession’s self-regulation and full statutory regulation. The review’s current thinking is that independent oversight of the profession’s self-regulation may be the best way to combine professional actuarial input into the regulatory framework with sufficient independence from the profession to provide the necessary protection and assurance for the public. The review identifies the Financial Reporting Council as a possible independent oversight body.

Many clients of the Government Actuary’s Department (GAD) were satisfied with the services that they received but a number of issues were also raised:

• public service pensions schemes are required in statute to use GAD’s services: the review’s current thinking is to deregulate to give users of these services a choice of provider;
• there may be more efficient ways of producing the UK population projections and the occupational pension scheme survey: the review is considering transferring the population projections work to the ONS and the pensions scheme survey to The Pensions Regulator;
• there is a continued need for independent advice on the National Insurance Fund and statements of broad comparability of pensions when staff are transferred from the public to the private sector: the review recognises that there may be an ongoing role for the Government Actuary in providing independent sign-off on these activities; and
• GAD competes for overseas work: the review is not currently considering any changes in this area.

Sir Derek Morris said:

“The review has no reason to doubt that the overwhelming majority of actuaries in the UK are dedicated, skilled professionals providing important and useful advice, with commitment, integrity and a strong sense of duty. However, the review also identifies a number of quite serious problems faced by the profession in the UK.”

“Against this background, the central question for this review, and for the actuarial profession, is how it can encourage and ensure the availability of best practice actuarial services to users.”

“I am grateful to the many contributors who have taken the time to put forward their views to the review team. I am keen to hear the views of interested parties on the issues and possible policy options that I set out in the interim assessment.”

The press release issued by HM Treasury on 17 December 2004.

Progress positive but further work needed, the Government said today, as it brought forward new proposals to strengthen the Myners principles. This follows the conclusion of its review into how effective the Myners principles have been in improving pension schemes’ investment decision-making.

The review marks another important step in the Government’s programme of reform to improve the efficiency of the investment chain which links savers and the companies in which they invest.  This is of vital economic importance for productivity and long-term growth, because the investment chain is a critical mechanism for ensuring that investment is efficiently allocated.

Announcing publication, Financial Secretary Stephen Timms MP said:

“I welcome the efforts that pension schemes, particularly the larger ones, are making to adopt the Myners principles: everyone – consumers, industry and Government, but especially pension schemes themselves – stands to benefit as a result.  However, our review shows that further action is needed to accelerate progress in key areas, in particular in relation to trustee expertise and decision-making processes.”

Paul Myners, author of the original Myners Review, said:

“I am very pleased that the principles are now widely accepted as the benchmark of best practice for investment decision-making. But more change is needed before the vision of a much-better functioning system I set out in my original report will be realised.”

The Government proposes to strengthen and amplify the Myners principles in respect of the areas where progress has lagged.  These revisions will make clear that:

• the chair of the board should be responsible for ensuring that trustees taking investment decisions are familiar with investment issues and that the board has sufficient trustees for that purpose;
• for funds with more than 5,000 members, the chair of the board and at least one-third of trustees should be familiar with investment issues (even where investment decisions have been delegated to an investment subcommittee);
• funds with more than 5,000 members should have access to in-house investment expertise equivalent at least to one full-time staff member familiar with investment issues;
• as well as contracting separately for investment and actuarial advice (as the principles currently require), in relation to investment advice, funds should also contract separately for strategic asset allocation and fund manager selection advice. (This is consistent with Sir Derek Morris’s analysis in his interim assessment of his review of the actuarial profession – see below.);
• trustees should provide the results of monitoring of their own performance to members, and ensure that key information provided to members is also available on a dedicated fund website.

The Government will also explore, in conjunction with stakeholders, the practicalities of a voluntary, independently-compiled report on compliance with the Myners principles by trustees, akin to the FRAG reports commissioned by custodians to demonstrate to clients their compliance with various internal control procedures. This would help provide an informed commentary on how the principles are being implemented, and help trustees validate and benchmark their decision-making procedures more effectively.

The interim assessment of Sir Derek Morris’s review of the actuarial profession, also published today, provides further analysis of the investment consultancy market, and identifies a need: to increase trustee knowledge and understanding; to encourage greater scrutiny and market testing of advice; and to discourage the supply of such advice being bundled with other services.

The press release issued by HM Treasury on 20 December 2004.

Paul Myners today published his report on the corporate governance of life mutuals commissioned by the Treasury in March 2004.

The Government welcomes the report, which provides a thorough analysis of the issues, and a proportionate and pragmatic set of recommendations. The review builds on the work of Sir Derek Higgs on corporate governance and complements the reviews by Sir Derek Morris, Paul Myners and Ron Sandler in improving the efficiency of the investment chain which links savers and the businesses in which they invest.  The issues identified by Paul Myners in this report concerning the influence of members of life mutuals echo those he considered in the review of institutional investment for members of occupational pension schemes.

Paul Myners’ report recommends adoption by life mutuals of the Combined Code on corporate governance, which has been annotated to reflect the circumstances of life mutuals.  The annotations serve to emphasise the importance, in the life mutual context of greater transparency and accountability in the boardroom, formal performance appraisal, proactive support for non-executive directors and closer links between non-executive directors and mutual members.  Complementary proposals aim to foster accountability by life mutuals to their members and to other market monitors through promoting better member relations and disclosure of relevant information.

The Government believes Paul Myners recommendations will encourage the success of the sector and protect the interests of its members. It calls on the mutual life sector to begin implementing the recommendations put forward by the review now. The Financial Secretary to the Treasury, Stephen Timms MP, plans shortly to meet industry leaders to affirm this message.

The Government will be reviewing the impact of implementing the proposals after two years after the Code comes into effect.

Stephen Timms said:

 “Mutual life offices are an important part of the UK’s financial services sector, providing a home for the savings of nearly 10 million members.  The way in which these organisations are run is important to the overall health of the economy as well as to the financial well-being of the individual policyholders concerned.   The challenge for life mutuals – and in particular its representative bodies – is to build on the momentum of this report to drive forward the review’s recommendations.  The Government is now looking for life mutuals to respond.”

The press release issued by HM Treasury on 20 December 2004.

Launching the final report of his independent review of the governance of mutual life offices, Paul Myners said:

“Good corporate governance is essential to all forms of business. It provides the checks and balances that ensure that firms are run efficiently and meet the objectives of their owners, whether shareholders or the members of a life mutual.”

“It also has its limitations. In formulating the review’s recommendations, I have recognised that risk is inherent in the conduct of business, and necessarily so.    Good corporate governance can ensure those risks are identified and appropriately managed, but it does not eliminate them, and it should not be believed that it does.   Indeed measures that sought to eliminate risk could destroy the very purpose of these entities.”

Commenting on the review’s recommendations, he said:

“The recommendations I am making today aim to achieve greater accountability by life mutuals to their members.  In doing so I have looked to develop a package of measures to help improve accountability, recognising that there are limits on what can be expected of life mutual members.  This includes measures to better enable other external monitors to scrutinise life mutuals, promoting better internal scrutiny of management by firm’s boards as well as the role of the Financial Services Authority.”

“My approach is to address these issues in a realistic and proportionate way, with recommendations based on established practice and common sense.  Taken together they provide the basis for life mutuals to ensure that their governance will compare very favourably to best practice in proprietary companies.  I am not recommending legislation, as the issues identified do not warrant it.  I expect the recommendations in the report to be taken forward by life mutuals and their trade bodies, supported by FSA supervision.”

“The FSA has made considerable strides in recent years in recognising the importance of good corporate governance to good regulation.  I hope it will take into account the lessons from this review as it further develops and refines its approach.”

Recommendations include:

• Promoting greater engagement by life mutuals of their members, through guidance on fair and accessible voting procedures on a member relations strategy.  This includes promoting dialogue with members as well as facilitating communication among members.  Members also have a clear responsibility to look after their own interests as the effective owners of life mutuals;
• Proposals to better inform life mutual members and the market through providing better information, including on directors’ remuneration, and for large mutuals, publication of forward-looking strategic information in the form of an Operating and Financial Review;
• Promoting adherence to best practice corporate governance through producing a life mutual specific piece of guidance.  This takes the form of a number of annotations to the Combined Code to reflect the particular characteristics of life mutuals. The Review’s objective is that this Code will be used by the FSA as its benchmark when it looks at governance as part of its risk monitoring process;
• Proposals that give particular prominence to the need for a strong independent element on life mutuals’ boards, and underlines the importance of board appraisals.  Monitoring of business risks should be an explicit function of the non-executive directors; and
• Helping equip non-executives to deal with the challenges they face in monitoring a complex, technical business. Proposals in the report aim to foster informed discussion and challenge. The company secretary or equivalent in friendly societies has a very valuable and pro-active role to play in this regard and in supporting non-executives more generally.

Commenting on the report, Sir Derek Higgs said:

“I welcome Paul Myners’ proposals for enhancing the governance of life mutuals. They build pragmatically on the sound, common sense principles of the Combined Code.”

Financial Reporting Council (FRC) chairman Sir Bryan Nicholson commented:

“These are sensible, proportionate recommendations that build on the principles of good corporate governance set out in the Combined Code.  The FRC stands ready to support the Association of Mutual Insurers in promoting best practice in the life mutual sector through the Code.”

Callum McCarthy, Chairman of the FSA said:

“The FSA sees effective corporate governance in authorised firms as being crucial to our statutory objectives of maintaining market confidence and consumer protection.   So we welcome the recommendations of this report that are aimed at strengthening governance in one of the sectors we regulate.  In particular, we support the aims behind the annotations to the Combined Code which we hope, when they are finalised, will provide a useful benchmark against which we will be able to measure governance standards in mutual life offices.”