The Bank of England’s Monetary Policy Committee (MPC) met on 5 February and in a 7-2 vote decided to reduce interest rates by 25 basis points to 4.5%. The two remaining members voted to reduce the rate further to 4.25%. This was the third interest rate cut since August 2024.

This means that the late payment interest rate applied to the main taxes and duties that HMRC charges interest will be reduced to from 7.25% to 7%.

These changes will come into effect on:

• 17 February 2025 for quarterly instalment payments
• 25 February 2025 for non-quarterly instalments payments

The repayment interest rates applied to the main taxes and duties that HMRC pays interest on will also decrease by 0.25% to 3.50% from 25 February 2025. The repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.

Stopping future payments from being made on your debit or credit card is crucial for avoiding unwanted charges and managing your finances effectively. Here’s how you can do it:

The first step is to contact the company taking the payments. Request that they cancel the recurring charge and provide confirmation in writing or via email.

If the merchant refuses to stop the payments, you can contact your bank or card provider. Under UK law, you have the right to cancel recurring payments (also known as Continuous Payment Authorities, CPAs) at any time. Banks are legally required to stop the payment when requested.

Many banks allow you to manage subscriptions and regular payments through their online or mobile banking services. Look for options under “Manage Payments” or “Recurring Transactions” to cancel them yourself.

If all else fails, cancelling your debit or credit card and requesting a new one can be an effective way to stop unauthorised charges. However, this should be a last resort, as it can cause disruption to other legitimate payments.

Regularly checking your bank statements ensures that no unauthorised payments slip through. If you spot an issue, report it immediately to your bank.

Taking these steps will help you stay in control of your finances and prevent unwanted payments from continuing.

In a significant move to enhance trust in online reviews, Google has agreed to implement substantial changes to combat fake reviews, following an investigation by the UK's Competition and Markets Authority (CMA). This initiative aims to ensure consumers can rely on genuine feedback when making purchasing decisions.

Background

The CMA launched an investigation into Google over concerns that it wasn't doing enough to detect and remove fake reviews, address suspicious behaviours, or properly sanction those involved in fraudulent review activities. Given that online reviews can significantly influence consumer spending—with estimates suggesting that up to £23 billion of UK consumer spending is potentially swayed by online reviews annually—ensuring their authenticity is crucial.

Google's Commitments

In response to the CMA's concerns, Google has committed to several key actions:

• Enhanced Detection and Removal: Google will implement rigorous steps to identify and eliminate fake reviews swiftly.
• Sanctions for Offenders:
  • Reviewers: Individuals who repeatedly post fake or misleading reviews about UK businesses will have their reviews deleted and will be banned from posting new ones, regardless of their location.
  • Businesses: Companies found to be artificially boosting their star ratings through fake reviews will have prominent 'warning' alerts added to their Google profiles. Additionally, their review function may be deactivated, preventing new reviews. Repeat offenders could see all their reviews from the past six months or more deleted.
• User Reporting: Google will establish a robust reporting system, allowing consumers to easily flag concerning reviews, including those where incentives were offered in exchange for positive feedback.

To ensure compliance, Google will report to the CMA over a three-year period. This move is part of a broader effort to promote fair practices online and protect consumers from misleading information.

The UK government offers a robust safety net for savers through the Financial Services Compensation Scheme (FSCS). This scheme is designed to protect individuals, small businesses, and charities if a bank, building society, or credit union fails, ensuring greater financial security and peace of mind.

How the Scheme Works

The FSCS guarantees deposits of up to £85,000 per person, per authorised institution. For joint accounts, the protection doubles to £170,000, as each account holder is covered individually. This means that if your bank or financial institution collapses, you will not lose your money up to this limit.

Temporary High Balances

In certain situations, the FSCS provides additional cover for temporary high balances, such as when you’ve recently sold a house, received an inheritance, or a large insurance payout. These balances are protected up to £1 million for six months, offering reassurance during significant life events.

Eligibility and Scope

The FSCS covers accounts held in UK-authorised institutions, including current accounts, savings accounts, ISAs, and certain fixed-term deposits. However, it’s essential to check that the Prudential Regulation Authority (PRA) regulates your bank. Many banks operate under the same authorisation, so splitting funds between accounts at institutions under one licence won’t increase your protection.

Beyond Deposits

While the FSCS is best known for protecting deposits, it also covers investments, insurance, and pensions under specific terms. However, these protections are subject to separate limits and conditions.

Why It Matters

The FSCS strengthens trust in the UK’s financial system, ensuring that consumers feel confident about saving and investing. For more detailed information, you can visit the FSCS website or check your bank’s coverage status directly.

The scheme stands as a cornerstone of financial stability, giving UK savers valuable protection in uncertain times.

Navigating financial challenges can be daunting, but understanding the tools available can make a significant difference. One such tool is a Debt Management Plan (DMP), designed to help individuals regain control over their finances.

What is a Debt Management Plan?

A DMP is an informal agreement between you and your creditors to repay your non-priority, unsecured debts at an affordable rate. This plan is particularly useful if you can only manage to pay a small amount each month or if you're facing temporary financial difficulties but expect your situation to improve soon.

How Does it Work?

You can set up a DMP through a licensed debt management company authorised by the Financial Conduct Authority (FCA). The process typically involves:

1. Assessment: Providing details about your financial situation, including assets, debts, income, and creditors.
2. Proposal: The company calculates a monthly payment based on what you can afford.
3. Negotiation: They contact your creditors to seek agreement on the proposed plan.

Once in place, you'll make regular payments to the debt management company, which will then distribute the funds to your creditors. It's important to note that while many creditors may agree to freeze interest and charges, they are not obligated to do so.

Costs Involved

Some debt management companies may charge:

• A setup fee.
• A handling fee for each payment made.

Ensure you understand any costs involved and how they will affect your repayments.

Eligibility Criteria

DMPs are suitable for managing 'unsecured' debts, such as:

• Credit card debt.
• Personal loans.
• Overdrafts.

They are not applicable for 'secured' debts like mortgages or car finance agreements.

Advantages of a DMP

• Single Monthly Payment: Simplifies your finances by consolidating multiple debts into one payment.
• Professional Negotiation: The debt management company negotiates with creditors on your behalf.
• Flexibility: Payments can be adjusted if your financial situation changes.

Disadvantages of a DMP

• No Legal Protection: Creditors are not legally bound to agree to the plan and may still contact you or take legal action.
• Impact on Credit Rating: Entering a DMP can negatively affect your credit score.
• Potential Costs: Fees charged by some companies can extend the time it takes to repay your debts.

Your Responsibilities

It's crucial to maintain the agreed-upon payments. Missing payments can lead to the cancellation of the plan, and creditors may resume collection actions.

Seeking Free Advice

Before committing to a DMP, consider seeking free, impartial advice from organisations like MoneyHelper, which can guide you through your options and help you make an informed decision.

The charity commission has offered the following guidance to charities following the recent public disorder events.

The main points are summarised below:

• Are you operating in an area which has seen or is at risk of unrest? If so and you wish to continue to operate what changes could be made to mitigate any risk to your staff, visitors or beneficiaries?
• Have you reviewed the entry points to your property for weaknesses should there be unrest? Can you restrict access/improve secure entry to the property?
• Are different entrances available?
• Do you have alternative exit routes from the property if required? Are these clear and communicated to staff visitors on arrival?
• Should an incident occur do you have a clear procedure in place for what staff / visitors should do to stay safe? Is everyone briefed on this procedure and is it clear who will issue instructions should an incident occur?
• Do you need to have first aid trained staff or volunteers onsite?
• Have you contacted the local police force community liaison team to agree contact points for sharing of specific risks or to seek specific advice and guidance on operating?

Some risks may be specific, or time bound such as an alert from police of a specific risk / threat based on their monitoring of social media or intelligence. You may therefore want to consider:

• Who in your charity / how your charity continually reviews the latest advice, guidance or alerts from police forces or other local authorities including monitoring of social media channels.
• If you are at higher risk do you need a procedure at the start of each day to assess risk and a clear channel or method to communicate with staff or beneficiaries prior to start of operations on whether or not they should attend site.
• Ensuring you have a clear process or nominated person responsible for acting upon any urgent alert or risk.

Charities should not hesitate to call emergency services if their staff, volunteers or beneficiaries face abuse, feel threatened, or are in danger.

The Competition and Markets Authority (CMA) has published an update on the widespread action it is taking to ensure that people can get the best possible choices and prices in the face of ongoing cost of living pressures. New analysis highlights how the cost to drivers of weakened competition in the fuel sector persists, but competition in the groceries sector appears to be more effective in bearing down on retail margins.

In its recent monitoring update, the CMA found:

• Retailers’ fuel margins – the difference between what a retailer pays for its fuel and what it sells at – are still significantly above historic levels.
• Supermarkets’ fuel margins are roughly double what they were in 2019.
• The total cost to all drivers from the increase in retail fuel margins since 2019 was over £1.6bn in 2023 alone.
• Competition among fuel retailers is failing consumers, just as it was in July last year when the CMA published its road fuel market study.

The CMA is currently monitoring developments in the fuel market using information provided voluntarily by fuel retailers. It has created a temporary price data-sharing scheme, and it is positive that some major players have started to integrate this into consumer-facing products, like apps. However, the current scheme covers only 40% of fuel retail sites and is not comprehensive enough to be used by map apps or satnavs to bring accurate, live information to people – and this is what would have a substantial impact on the market.

The proposed introduction of the Digital Information and Smart Data Bill by the new government could provide the legislative basis to set up a compulsory and comprehensive scheme that would change this – which the CMA would welcome.

The new Chancellor of the Exchequer, Rachel Reeves, delivered her widely anticipated House of Commons statement on 29 July 2024. The Chancellor asserted that the new government has inherited a £22bn hole in the public finances. The Chancellor said that she will take the “difficult decisions” necessary to find £5.5 billion of savings this year and £8.1 billion next year.

The main measures announced by the Chancellor included the following:

• The scrapping of the Winter Fuel Payment for those not in receipt of Pension Credit from this year onwards. The Government will continue to provide Winter Fuel Payments worth £200 to households receiving Pension Credit or £300 for households in receipt of Pension Credit with someone aged over 80. Winter Fuel Payments are devolved in Scotland and Northern Ireland.
• VAT will be charged at the standard rate of 20% on private school fees from 1 January 2025. This will apply to any fees for the term starting in January 2025 that are charged from 29 July 2024.
• The planned cap on care costs for adult social care due to be introduced in October 2025 has been scrapped.
• The scrapping of the Rwanda migration partnership and scrapping retrospection of the Illegal Migration Act.
• The cancelling of a number of large-scale road and railway schemes.

A date for the next Budget was also confirmed. The Chancellor announced that this will take place on Wednesday 30 October 2024. The Chancellor restated Labour’s manifesto commitment not to increase the basic, higher or additional rate of income tax, National Insurance or VAT.

However, we can expect additional tax and spending cuts in the upcoming Budget. The Chancellor still has scope to increase other taxes including Capital Gains Tax, Inheritance Tax, Stamp Duty and Fuel Duties at the upcoming Budget.

More than a million parents will receive reminders to extend Child Benefit for their teenagers if they are continuing their education or training after their GCSEs.

HM Revenue and Customs (HMRC) is sending more than 1.4 million Child Benefit reconfirmation letters to parents between 24 May and 17 July. The letters will include a QR code which, when scanned, directs them straight to GOV.UK to update their claim quickly and easily online.

Child Benefit is worth up to £1,331 a year for the first or only child, and up to £881 a year for each additional child. Payments will automatically stop on 31 August on or after the child has turned 16 unless parents renew their claim where their child is continuing in education.

Parents have until 31 August to act, or their payments will automatically stop.

Letting HMRC know digitally that a child is continuing in education is the quickest way to get it sorted, with no need to contact HMRC by phone or post.

If you have not received a letter by 17 July, there is no need to worry – if eligible, you can still extend your Child Benefit claim via GOV.UK or the HMRC app.

Child Benefit can continue to be paid for children who are studying full time in approved non-advanced education, which includes:

• A levels or Scottish Highers
• International Baccalaureate
• Home education – if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority
• T levels
• NVQs, up to level 3.

Child Benefit will also continue for children studying on one of these unpaid approved training courses:

• in Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme;
• in Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work;
• in Scotland: Employability Fund programme and No One Left Behind.

If a child changes their mind about further education or training, parents can simply inform HMRC online or in the HMRC app and payments will be adjusted accordingly.

Parents will need a Government Gateway user ID and password to use HMRC’s online services. If they do not have one already, they can register on GOV.UK  and will just need their National Insurance number or postcode, and 2 forms of ID.

HMRC can enquire into any statutory return (or amendment of that return) or statutory claim to check if the return / claim has been prepared correctly or if further information is required.

HMRC’s internal manuals state that there is no statutory definition of an enquiry, so it carries its normal dictionary meaning of `seeking information, asking, questioning’. In practice the nature and extent of enquiries will vary considerably.

HMRC has historically referred to ‘full enquiries’ covering a tax return as a whole, and ‘aspect enquiries’ dealing with one or more matter(s). However, the legislation does not distinguish between different types of enquiries. Therefore, all enquiries into tax returns are legally enquiries into the full return, even if in practice HMRC only need to check part of the return.

If HMRC make no enquiries within the period allowed, or if they have completed an enquiry, the return becomes final unless

• the taxpayer is still within time to amend their return;
• the taxpayer has carelessly or deliberately caused a loss of tax; or
• HMRC discover that the return was incorrect, and the taxpayer had not disclosed enough information to show this. This is known as a discovery assessment. If a discovery is made in such circumstances HMRC can make a discovery assessment up to 6 years (20 years if the taxpayer has failed to notify chargeability) after the end of the relevant accounting period.