Tag: Treasury

The press release issued by the Treasury on 10 November 2022.

Bounce Back Loans were government-backed loans designed to support businesses through the Covid pandemic. Under the rules of the scheme, companies were allowed to borrow up to 25% of their 2019 turnover, up to a maximum of a £50,000.

Malcolm Forbes, Avin Habash and Kamil Ozkan were directors of three separate companies that applied for Bounce Back Loans. But each caused their companies to abuse the covid support scheme, which was only uncovered after the companies entered into liquidation.

Malcolm Forbes, from Portsmouth, was the sole director of Nija Bite Limited, which operated as a takeaway called Iroko Lounge on Onslow Road in Southampton and a mobile food stand.

Enquiries uncovered that Malcolm Forbes received the maximum £50,000 Bounce Back Loan having submitted an application that declared a turnover of £225,000. However, Malcolm Forbes grossly exaggerated the company’s turnover, which was closer to £24,000 and this would have only entitled Nija Bite Limited to a £6,000 loan.

Liverpool’s Avin Habash, was the sole director of Hot Spot Liverpool Limited, which traded as Hot Spot, a takeaway in Liverpool city centre on Temple Court .

Avin Habash caused the company to apply for a Bounce Back Loan and secured £50,000 claiming a turnover of £200,000. Investigators, however, found that Hot Spot Liverpool Limited’s actual turnover was closer to £100,000, which should have only entitled the eatery to circa £26,000.

And Kamil Ozkan, from West Rainton, Houghton le Spring, was the sole director of Papa Peterlee Limited, trading as Martinos Italian Kitchen on York Road in Peterlee.

Investigators discovered that Papa Peterlee Limited successfully received a £50,000 Bounce Back Loan. But instead of using the loan for the economic benefit of the company, Kamil Ozkan caused the company to transfer up to £37,500 to his personal account.

The 3 restaurateurs are now banned from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Mike Smith, Chief Investigator for the Insolvency Service, said:

Covid support schemes provided a lifeline to businesses, protecting jobs and preserving businesses. However, Malcolm Forbes, Avin Habash and Kamil Ozkan flagrantly abused that support when they either personally benefited from the loan or exaggerated turnover to secure more money than they were entitled to.

The three restaurateurs have now been removed from the corporate arena and creditors will be protected from any further harm. Their bans clearly demonstrate that we will not hesitate to take action against directors who have abused Covid-19 financial support like this.

The press release issued by HM Treasury on 9 November 2022.

The press release issued by the Treasury on 8 November 2022.

Shafique Uddin, also known as Sofiq Uddin, was the director of Kazitula Limited. The company traded as Shafiques, a restaurant and takeaway on Goring Road in Worthing, West Sussex.

The company behind the restaurant, however, went into liquidation in April 2017 but Kazitula Limited’s insolvency triggered an investigation by the Insolvency Service.

Investigators uncovered that for nearly 7 years between April 2010 and January 2017 Shafique Uddin caused Kazitula Limited to file inaccurate tax returns.

This meant the restaurant underdeclared and underpaid taxes in the region of £320,000.

On 14 October 2022 in the High Court of Justice, Insolvency and Companies Court Judge Mullen made an 8-year disqualification order against Shafique Uddin.

When making the order, Judge Mullen said that “Mr Uddin caused the company to file inaccurate tax returns over nearly 7 years. It is impossible to avoid the conclusion that this was for personal gain. No other reason for concealing sales is offered.”

Effective from 4 November 2022, Shafique Uddin is banned for 8 years from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, said:

Considering that the suppression of the restaurant’s takings took place over 7 years, it is clear that Shafique Uddin knowingly caused the company to renege on the taxes it owed.

Much of the public service is funded by the correct amount of taxes being paid and that’s what makes Shafique Uddin’s misconduct all the more serious. The court recognised the severity of his actions and have removed Shafique Uddin from the corporate environment for a substantial amount of time.

The press release issued by HM Treasury on 6 November 2022.

From today the 1.25% point cut to National Insurance rates for employees and employers takes effect across the UK.

– The reversal of April’s rise in National Insurance takes effect across the UK from today

– Added to July’s increase in National Insurance thresholds, almost 30 million people will be £500 better off on average next year

– Most employees will start to receive this tax cut directly through payroll between November and February

The tax cut was announced by the government on 22 September, as part of the reversal of the Health and Social Care Levy.

Working people across the UK will begin receiving the tax cut in their payslips this month, with all expected to have started receiving it by February.

The move to reverse April National Insurance increase follows the rise in National Insurance thresholds in July. As a result of both measures, working people will be £500 better off, on average, next year.

Funding for health and social care services will be maintained at the same level as if the levy were in place.

It takes effect in all parts of the UK and means working people will keep more of the money they earn.

The press release issued by HM Treasury on 4 November 2022.

HM Treasury is supporting Sir Mark Hendrick’s Private Members’ Bill on Co-operatives, Mutuals, and Friendly Societies.

The Private Members Bill on Co-operatives, Mutuals and Friendly Societies grants HM Treasury the power to bring forward regulations to give those mutuals further flexibility in determining for themselves the best strategies for their business, relating to their surplus capital. This will provide additional safeguards against demutualisation for the societies that choose to adopt the so-called “asset lock”.

The Bill is therefore a valuable opportunity to support mutuals who wish to ensure that their underlying assets, in many cases built up over centuries by members pooling their resources together for the greater good, are protected and the mutual model preserved into the future.

By allowing for an iron-clad guarantee in legislation for mutuals that wish to adopt these restrictions, the Bill will make these asset locks harder to unpick. It will provide additional safeguards against demutualisation – where a mutual becomes a company with shareholders, a process which can, in some cases, aim to capture the asset value of the mutual as a windfall. It will ensure mutual capital is maintained for the purpose it is intended; to provide goods and services to those who need them now and for future generations.

Importantly, the Bill has been drafted to ensure the government has time to engage closely with the sector, regulators, and legal experts as the secondary legislation to give effect to the policy is developed.

This will allow the final design of the policy to take account of the existing rights and interests of consumers, particularly policyholders of financial mutuals, and to reflect the different types of business models in this diverse sector.

More broadly, the government aims to develop a modern and supportive business environment to set mutuals up for future growth and success and is currently exploring the options for reviewing key legislation underpinning the sector.

The press release issued by HM Treasury on 3 November 2022.

• Legislation laid today (3rd November) introduces a ban on UK ships and services facilitating the maritime transport of Russian crude oil from 5th December 2022
• This legislation will also pave the way for a cap on the price of seaborne Russian crude oil
• This follows commitment made by G7 Finance ministers in September

New legislation introduced today (3rd November) will prevent countries from using the UK’s services to transport Russian oil unless it is purchased at or below the Oil Price Cap set by the Price Cap Coalition of the G7 and Australia.

The move follows the decision made by the G7 Finance ministers in September who committed to the price cap as a way of undermining Putin’s ability to fund his war in Ukraine through inflated global oil prices, while ensuring that third countries can continue to secure affordable oil. The UK and its coalition partners will not make use of the cap, as they have introduced an import ban on Russian oil.

The ban on services, including insurance, brokerage and shipping, will be coupled with a General Licence, expected shortly, that lays the basis for an Oil Price Cap exception that will allow third countries to continue accessing services only if purchasing Russian oil at or below the cap. The level of the price cap will be set by the coalition in due course.

Insurance is one of the key services that enables the movement of oil by sea, particularly protection and indemnity (P&I) insurance which relates to third-party liability claims – the UK is a global leader in the provision of P&I cover, writing 60% of global cover.

Today’s legislation on crude oil will come into force on 5th December with further measures on refined oil products coming into force on the 5th February, to align with EU timelines for a parallel measure. To enforce the scheme the Treasury has set up a new team, based in the Office of Financial Sanctions Implementation. This team will set up the licensing and enforcement system for the Oil Price Cap; engage with industry to ensure readiness for the cap; and monitor the level and impact of the cap on an ongoing basis.

Chancellor of the Exchequer Jeremy Hunt said:

“We continue to stand by Ukraine in the face of Putin’s barbaric and illegal invasion. We’ve banned the import of Russian oil into the UK and are making good progress on phasing it out completely. This new measure continues to turn the screws on Putin’s war machine, making it even tougher for him to profiteer from his illegal war.”

The press release issued by HM Treasury on 2 November 2022.

Muhammad Rais, 42, from Leicester, has been disqualified for 9 years for exaggerating the turnover of his takeaway business to claim £31,000 of Bounce Back Loans to which the company was not entitled.

And Lee Mankelow, 42, of Arnold, Nottinghamshire has been disqualified as a director for 6 years, after claiming £50,000 from the loan scheme to support his timber supply business through the pandemic, before paying it all to a former director of the company.

The two directors received the money as part of a government scheme to support businesses that were facing hardship during the Covid outbreak.

Companies were entitled to claim Bounce Back Loans of up to 25% of their 2019 turnover, to a maximum of £50,000, for the economic support of their business.

Lee Mankelow was the director of Wolf Timber Ltd, which traded as a builders/providers of timber products. The company, however, entered into liquidation in December 2020 before Wolf Timber Ltd’s insolvency triggered an investigation by the Insolvency Service.

Investigators uncovered that Mankelow applied for a £50,000 Bounce Back Loan in June 2020, after the company had seen a rise in online business during Covid lockdowns.

Mankelow, however, transferred the full £50,000 the day after he received the loan to a former director of the company, breaching the terms of the loan which stated that the money must be used to support the business.

Investigators found no evidence to support Mankelow’s claims that the money was used to pay the wages, bonuses, dividends and expenses of the former director who had stayed on as an employee of the company.

And Muhammad Rais was the sole director of Lokma BBQ Ltd in Leicester until the company went into liquidation in January 2022.

The company came to the attention of the Insolvency Service following its liquidation before investigators uncovered that Rais applied for a £50,000 Bounce Back Loan, stating that the takeaway’s turnover the previous year had been £200,000.

However, Lokma BBQ’s actual turnover for 2019 had been around £74,000, resulting in the company receiving £31,000 of government-backed loans which it wasn’t entitled to.

Rais has agreed with the liquidator to re-pay £8,000 of the money owed through monthly installments.

The disqualifications prevent Mankelow and Rais from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Tom Phillips, Assistant Director of Investigation and Enforcement Services for the Insolvency Service, said:

“Bounce Back Loans were put in place to provide vital support to help viable businesses through the pandemic. Both Mankelow and Rais completely abused the government-backed loans to further their own interests, which was totally unacceptable.

“Mankelow and Rais’ bans should serve as a stark warning to other directors who may have misused financial support during the pandemic that we have the ability to bring your actions to account and remove you from the corporate arena.”

Notes to editors

Lee Mankelow is of Arnold, Nottinghamshire, and his date of birth is August 1980

Wolf Timber Ltd (Company number: 12174859)

Muhammad Rais is of Leicester and his date of birth is April 1980

Lokma BBQ Ltd (Company Reg no.11232141)

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

The press release issued by HM Treasury on 21 October 2022.

The Chancellor of the Exchequer has this day appointed Christian John Patrick Matheson to be Steward and Bailiff of the Three Hundreds of Chiltern.

The press release issued by HM Treasury on 20 October 2022.

More than one million claimant families receiving tax credits, and no other means-tested benefits, will get their second Cost of Living Payment from Wednesday 23 November 2022, HM Revenue and Customs (HMRC) has confirmed.

This £324 government payment will be paid automatically into most eligible tax credit-only customers’ bank accounts between 23 and 30 November 2022 across the United Kingdom.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said:

This second Cost of Living Payment will provide further financial support to eligible tax credit-only claimants across the UK.

The £324 will be paid automatically into bank accounts, so people don’t need to do anything to receive this extra help.

The second payment will see more than 8 million households across the UK receive their £324 cost of living cash boost by 30 November and follows the first cost of living payments of £326, which eligible families received from Department for Work and Pensions (DWP) from July and HMRC from September.

The government recently announced that households receiving DWP benefits will get their second Cost of Living Payment from 8 November continuing through to 23 November. This includes tax credit claimants who also receive other income-related benefits from DWP.

HMRC is making payments shortly after DWP in order to avoid duplicate payments.

This latest payment comes on top of wider government support with the cost of living this autumn and winter, including:

• the £150 Disability Cost of Living Payment, already paid to around 6 million disabled people
• more than 8 million pensioner households who will receive an extra one-off £300 Winter Fuel Payment this year

This is in addition to an extension to the Household Support Fund, which is providing an extra £421 million for use between October 2022 and March 2023 to help vulnerable people with the essentials. A £150 Council Tax rebate was sent earlier this year to those in Council Tax bands A to D in England, creating at least £1,200 in direct support for millions of households.

A £400 reduction on energy bills is also being given to all domestic electricity customers over the coming months, and the Energy Price Guarantee is protecting households from significant rises in their energy bills this winter.

The government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.

The press release issued by the Treasury on 18 October 2022.

The sixth meeting of the Specialised Committee on Financial Provisions (SCFP) was held today, 18 October 2022. The meeting was co-chaired by officials from the UK Government and the European Commission. This Committee is assigned by the Withdrawal Agreement Joint Committee to undertake work related to the implementation of the financial provisions in Part V of the Withdrawal Agreement.

The UK and the EU exchanged updates on the tasks carried out under the remit of this Specialised Committee. Both parties noted the positive engagement on the annual reporting package required by the Withdrawal Agreement and the associated invoices. The fourth invoice was provided by the European Commission in September. The payment of these amounts will be made in eight monthly instalments, with the first due date set on 31 October 2022, in accordance with the terms of the Withdrawal Agreement. The European Commission will continue submitting these payment communications to the UK twice annually, in April and September, until outstanding net liabilities are extinguished.

The UK and EU sides reaffirmed their commitment to complying with their legal obligations under the Withdrawal Agreement.

The two sides appreciated the ongoing good cooperation in this field, and committed to continue working collaboratively on a range of implementation issues, in recognition of the mutual benefit of a smooth implementation of the financial provisions of the Withdrawal Agreement.