![PRESS RELEASE : Electric Vehicles to be Liable for Road Tax [November 2022]](https://www.ukpol.co.uk/wp-content/uploads/2022/08/hmtreasury-150x150.png)
The press release issued by HM Treasury on 17 November 2022.
The shift to Electric Vehicles is continuing at pace as the UK moves to net zero. Therefore from 2025, road tax will be introduced for EVs so all motorists begin to pay a fair share. Support for charging infrastructure is continuing.
The press release issued by HM Treasury on 16 November 2022.
More than 401,300 families benefitted from £44.4 million in government funding towards childcare costs in September 2022, HM Revenue and Customs (HMRC) has revealed.
Compared to September 2021, the latest Tax-Free Childcare statistics show the number of families who are using Tax-Free Childcare has increased by 85,475. But thousands of families are still missing out on the top-up which could save them up to £2,000 a year per child towards the cost of their childcare.
Tax-Free Childcare provides working families, earning up to £100,000 a year, with financial help towards childcare. For every £8 paid into a Tax-Free Childcare online account, families will automatically receive an additional £2 from the government. This means they can receive up to £500 every three months (£2,000 a year), or £1,000 (£4,000 a year) if their child is disabled.
The top up payments can be used to pay for any approved childcare for children aged 11 or under, or up to 17 if the child has a disability whether your child goes to nursery, a child minder, has term-time wraparound care or goes to a holiday club.
Families can check their eligibility and see the options for childcare support at Childcare Choices.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
We know childcare can be expensive so using Tax-Free Childcare can make a huge difference to household finances. To find out more, search ‘Tax-Free Childcare’ on GOV.UK.
Families could be eligible for Tax-Free Childcare if they:
A full list of the eligibility criteria is available on GOV.UK.
Opening an online Tax-Free Childcare account is straightforward and can take around 20 minutes to sign up. Accounts can be opened at any time, money can be deposited and used straight away or when it’s needed. Unused money in the account can be withdrawn at any time. Go to GOV.UK to register to get started.
The government has launched an awareness raising advertising campaign to ensure families get the childcare support they are entitled to. Visit Childcare Choices to learn about the options and find out the best childcare offer for families.
The government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families could be eligible for.
The press release issued by HM Treasury on 16 November 2022.
Ben Hamilton, 34, from Middlesbrough, has been sentenced to 15 months imprisonment, suspended for 18 months, after being convicted under the Companies Act following abuse of the Bounce Back Loan financial support scheme in 2020.
Hamilton was director of Netelco Ltd, a telecommunications design and installation business based in Bishop Auckland.
The company had been incorporated in 2018 and in May 2020 Hamilton applied for a £25,000 Bounce Back Loan from his bank on behalf of his business. Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to £50,000.
The loan was paid into the company bank account on 14 May 2020 and the following day Hamilton filed paperwork with Companies House to have the business dissolved.
The striking-off application to dissolve the company was explicit that interested parties and creditors, such as a bank with an outstanding loan, must be notified within seven days of making an application to dissolve a company. The form also highlighted that failure to notify interested parties is a criminal offence, however Hamilton did not follow these rules.
The company was dissolved in December 2020, and was subsequently identified as likely Bounce Back Loan fraud as part of the government’s forensic counter-fraud work.
Hamilton did not co-operate with the Insolvency Service criminal investigation team, nor attend an interview when given the opportunity. Only when the Insolvency Service obtained a Proceeds of Crime Act restraining order on his bank accounts did he engage with the investigation, at which point he repaid the Bounce Back Loan in full.
He pleaded guilty to charges under the Companies Act 2006 at Teeside Magistrate’s Court on 14 October. He was sentenced on 15 November at Teeside Magistrate’s Court.
In addition to the suspended sentence, Hamilton was ordered to pay £2,500 in costs.
Julie Barnes, Chief Investigator at the Insolvency Service said:
This was a clear case of attempted fraud by a company director who thought he could abuse the Covid-19 financial support schemes and get away with it.
Even though Ben Hamilton has now repaid the loan, this sentence sends a clear warning to others that attempting to defraud taxpayers is not acceptable, and when prosecuting the Insolvency Service will use all of the tools in its armoury, including the Proceeds of Crime Act, to prevent criminals from retaining their benefit from crime”.
Ben Hamilton is of Middlesbrough and his date of birth is August 1988.
Netelco Ltd (company reg no. 11266825).
The sentence result was announced at Teeside Magistrate’s Court by judge Recorder Anthony Hawks.
The press release issued by HM Treasury on 15 November 2022.
Philip John Mottram, 55, from Sheffield, appeared at Sheffield Magistrates Court on 10 November 2022 where he was sentenced before District Judge Redhouse to a 12-month Community Order requiring 80 hours of unpaid work in the community and up to 10 rehabilitation activity requirement days. He also had to pay costs of £2,000 and Victim Surcharge of £60.
The court heard that Mottram was the sole director of Urbandeli Ltd, which traded as a café called Urban Deli on Campo Lane in Sheffield, until the business went into liquidation in March 2017.
But liquidators discovered that Mottram had been banned as a director for a year in April 2016, after a case had been brought against him by Companies House for failing to provide a copy of the company accounts.
Disqualified directors are banned from forming, managing or promoting companies for the duration of their ban. People who breach the terms of the disqualification are committing a criminal offence and could be fined and/or go to prison for up to 2 years.
Mottram also ignored requests by Urbandeli’s liquidators to hand over company books and records – a legal requirement during a company’s liquidation.
The liquidators shared their findings with the Insolvency Service, which triggered an investigation. But Mottram failed to answer investigators’ questions about his role in the company while he was banned as a director.
Following the investigation Mottram was charged with four separate offences, but twice failed to turn up to court hearings, which led to his arrest.
He previously pleaded guilty at Sheffield Magistrates Court to failing to hand over company books to liquidators, and to being in charge of a company during his one-year ban as a director.
Julie Barnes, Chief Investigator at the Insolvency Service, said:
Philip Mottram had scant regard for his disqualification as a company director, didn’t cooperate with investigators and showed little respect for the courts.
This type of criminality has a huge impact on the confidence of the UK Business community. Mottram’s sentencing will be a warning to others that the Insolvency Service is committed to bringing lawbreakers to justice.
The press release issued by HM Treasury on 15 November 2022.
Liam Mccreadie, 26, from Aberdeen, has been disqualified as a director for 4 years after failing to pay more than £1.1 million in taxes and not submitting tax returns for his two companies.
Mccreadie was the sole director of two companies that both traded as a call centre business.
Lakemere Global Holdings Ltd, was incorporated in October 2017 and traded as AGO Outsourcing in both East Kilbride and Newcastle until it went into liquidation in October 2019, owing more than £794,000.
His other company, EK Sales Ltd, was incorporated in September 2017 – just a month before Lakemere went into liquidation – and took over trading as AGO Outsourcing until it also went into liquidation in October 2020, with debts of more than £515,000.
The call centre sites had been billed by AGO Outsourcing managers as “state of the art” sales centres, but had reportedly become subject to disputes with staff over payment of wages by October 2019.
The liquidation of the two companies led to an investigation by the Insolvency Service which found that Lakemere Global Holdings Ltd had not submitted tax returns between May and October 2019 and owed business and employee-related tax of around £629,000.
Investigators also discovered that EK Sales Ltd had failed to submit tax returns between December 2019 and August 2020 and owed business and employee-related tax of around £513,000.
Across both companies, the repeat abuse of tax led to a debt to HM Revenue and Customs (HMRC) of more than £1,143,000.
The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Liam Mccreadie, after he didn’t dispute that he had failed to ensure that both Lakemere Global Holdings Ltd and EK Sales Ltd submitted returns and payment to HMRC, and caused the companies to trade to the detriment of HMRC in respect of business and employee-related tax.
His disqualification starts on 7 November 2022 and lasts for 4 years. The ban prevents Mccreadie from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.
Steven McGinty, Investigation Manager at the Insolvency Service, said
“The Insolvency Service will rigorously pursue traders who seek an unfair advantage over their competitors by not paying tax to the Government.
“If you run a limited company, you have statutory protections as well as obligations. If you fail to comply with your obligations, The Insolvency Service will investigate you and you could lose the protection of limited liability.
“Mr McCreadie has paid the price for failing to do that, as he cannot now carry on in business other than at his own risk.”
The press release issued by the Treasury on 10 November 2022.
The Chancellor of the Exchequer has this day appointed Katherine Anne Green to be Steward and Bailiff of the Manor of Northstead.
The press release issued by the Treasury on 10 November 2022.
New data released today (10th) reveals the full effect of UK sanctions on Russia – with £18.39 billion of Russian assets frozen and reported to the Office of Financial Sanctions Implementation (OFSI).
The figure, released for the first time in OFSI’s Annual Review, demonstrates the key role the UK has played in standing up to Russia following their illegal invasion of Ukraine. It is nearly £6 billion pounds more than reported across all other UK sanctions regimes.
In conjunction with its allies, the UK has imposed the most severe sanctions Russia has ever faced, designating more than 1,200 individuals, over 120 entities and freezing the assets of 19 Russian banks with global assets of £940 billion since they began their illegal invasion.
Economic Secretary to the Treasury, Andrew Griffith said:
As staunch defenders of democracy, the UK is united with its allies in opposition to Russia’s barbaric and unprovoked invasion of Ukraine. We have imposed the most severe sanctions ever on Russia and it is crippling their war machine.
To make sure we are doing all we can to keep the pressure on Putin’s corrupt cronies we are more than doubling OFSI’s headcount. Our message is clear: we will not allow Putin to succeed in this brutal war.
FCDO Minister of State, Anne-Marie Trevelyan said:
When Putin invaded Ukraine he assumed we would sit idly by. He was wrong. Instead, the UK and our international partners have stood shoulder to shoulder with Ukraine in their fight for territorial integrity and political independence.
Today’s report shows the scale of UK sanctions – freezing over £18 billion of Russian assets to stop Putin funding his war machine. We will continue to ramp up our sanctions to exert maximum economic pressure on the Russian regime until Ukraine prevail.
By implementing these sanctions alongside our international partners, the UK is degrading Russia’s military machine. Despite the Russian regime’s attempts to firefight, GDP is predicted to decline by up to 6.2% in 2022 when compared to pre–invasion forecasts, and decline a further 2.3% in 2023. 60% of Russia’s foreign reserves have been immobilised, Russia’s exports have plummeted, and imports of critical goods have dropped by 68% from sanctioning countries.
The £18.39 billion figure is a significant contribution to the $30 billion of frozen Russian assets reported by the Russian elites, proxies, and oligarchs (REPO) taskforce in June. All this is having a major impact on the Russian military complex – vital semiconductors are now being scavenged from fridges and soviet-era equipment is being sent to the front line.
In order to ensure that the most stringent financial sanctions in history on Russia have not adversely affected the UK’s private and voluntary sectors, where appropriate OFSI has worked with businesses and granted general and specific licences allowing UK businesses to move away from Russian facing positions without an increased risk.
These licences have been granted where sufficient evidence has been provided and are often for basic needs and legal fees. The careful granting of these licences by OFSI in line with legislation, has helped UK individuals and businesses to function throughout a challenging period and helped maintain the UK’s place as a centre for financial stability.
The Russia sanctions regime will continue to play a major part of the OFSI’s work for as long as Putin’s illegal war against Ukraine continues. The government has committed to ensuring that OFSI is fully resourced, more than doubling its headcount.
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.
Vulnerable countries hit by hurricanes and other climate catastrophes are set to be able to defer debt repayments, freeing up resources to fund disaster relief, as part of new UK-led initiatives unveiled at COP27 and in response to growing demands from developing countries for such innovations.
And today, UK Export Finance has become the first export credit agency in the world to offer this in its own direct lending to low-income countries and small island developing states.
In a speech in Egypt at COP27 Finance Day, Treasury Minister James Cartlidge announced publication of key design principles which will underpin Climate Resilient Debt Clauses (CRDCs) for use in private sector lending, and called for all creditors – including private banks, other bilateral lenders and the international financial institutions – to explore adopting these clauses.
This follows work spearheaded by the UK in recent months in collaboration with private sector institutions. A ‘model term sheet’ for private lending including CRDCs has been developed and is published today on the International Capital Markets Association website.
This is part of the UK’s wider commitment at COP26 to support developing countries adapt to the impacts of climate change and for the UK to be the world’s first net zero-aligned financial centre.
The UK continues deliver on our key funding commitments, spending £11.6 billion on international climate finance. At COP27, the Prime Minister announced that the Government will commit to triple funding for climate adaptation as part of that budget, from £500 million in 2019 to £1.5 billion in 2025.
This builds on the success of COP26 in Glasgow, which brought together nearly 200 countries and over 120 world leaders and saw nations adopt the Glasgow Climate Pact – the blueprint for accelerating climate action during this critical decade.
Exchequer Secretary to the Treasury, James Cartlidge, said:
Climate shocks are increasing in frequency and severity which is why we are supporting countries hit hardest. In the wake of a disaster, they face painful trade-offs between rebuilding their communities and making debt repayments.
Today is a significant milestone in our work to find innovative solutions to these global challenges, and I am proud that UK Export Finance is the first export credit agency in the world to offer loans which suspend debt service payments for countries hit by climate catastrophes and natural disasters.
Building on our COP26 legacy, we are committed to climate-resilient development, as the UK continues to play a leading role in reducing carbon emissions to net zero by 2050.
Speaking at COP27 Finance Day, Tim Reid, UK Export Finance’s Director of Business Group will say:
Some countries are now facing tough choices between protecting their citizens as they respond to climate shocks or paying down their debts. UKEF can play an important role in helping governments navigate these decisions. By suspending the debt service payments, UKEF will enable borrowing countries to focus on responding to and recovering from a crisis.
We encourage other official creditors to consider including similar provisions in their own lending to countries most vulnerable to climate change.
Avinash Persaud, Special Envoy to Barbados Prime Minister Mottley on Climate Finance, said:
Adopting Natural Disaster and Pandemic clauses in debt instruments is the single most impactful way of making the international financial system fitter for the new world of shocks and for international development. And they don’t cost borrowers or creditors a penny. We have them in our bonds. They can free up fiscal space for borrowers just when they need it most without hurting creditors on a net present value basis. I cannot welcome and commend this initiative by the UK Government enough.
On top of this, Multilateral Development Banks (MDBs) have agreed to collaborate through an informal working group to further explore CRDCs and other approaches, building on the Inter-American Development Bank’s leadership in this area. The UK is calling on all other lenders to explore adopting these flexibilities in loan contracts.
Earlier in the day, the Treasury Minister also welcomed the next step towards companies demonstrating how they will align their business with net zero. The publication of the UK Transition Plan Taskforce’s Disclosure Framework and Implementation Guidance for consultation sets out how companies can show consumers, investors and the public what steps they are taking to align their business with net zero. These documents set out clear recommendations for how firms can prepare and disclose their plans in the short-medium term.
The Government launched the Transition Plan Taskforce (TPT) in May to create the gold standard for transition plans. This comes after the Government committed at COP26 to move towards mandatory transition plan disclosures, with the FCA already introducing initial disclosure rules for transition plans from January.
The Government has taken world-leading action to green the global financial system, with London having ranked first in the world for a third consecutive year as a leading hub globally for sustainable finance, according to the Global Green Finance Index 10.
On top of this, the UK has raised over £20 billion from green gilts and NS&I’s Green Savings Bonds since September 2021 to finance projects in the UK and across the world to tackle climate change and other environmental challenges. Transactions in May and September contributed over £4 billion towards this.
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.