CONSUMER LAW

PLANS TO BAN 'BILLS OF SALE' LENDING The increasing use of an archaic 19th century law to sell excessively high cost 'bill of sale' loans has resulted in proposals by the Dept for Business to ban the practice.

Typically used for 'logbook loans' secured against the value of the consumer's car, some 40,000 registered bills of sale, involving some £30m in loans, were made between April 2008 and March 2009. They resulted in 1,000 complaints by consumers to the Office of Fair Trading and 100% increase in consumer enquiries to Citizens Advice. Complaints relate to lack of protection for people who fall into arrears, unfair collection practices, complex and confusing language in loan agreements and excessively high cost.

The Dept for Business is seeking views on three options:- banning the use of bills of sale for consumer lending; non-statutory regulations or a voluntary code of practice; targeted reform to bills of sale legislation.

'A better deal for consumers: consultation on proposals to ban the use of bills of sale for consumer lending' (Urn 09/1595) is available at http://tinyurl.com/y9t6z5a - pdf (DBIS Publications Orderline; tel: 0845 015 0010). Responses by 15 March.

CONSUMER RIGHTS ABROAD

A range of information on consumer rights and laws that apply when buying services in other European countries is now available from a free service launched by the Dept for Business. Advice from the European Consumer Centre for Services covers the following areas:- tourism, construction, estate/letting agents, private education, accountancy and law. Hosted by the Trading Standards Institute and linked to the existing European Consumer Centre - which covers goods - the ECCS can be accessed by telephone on 0845 608 9494, online at http://www.ukecc-services.net and by email at eccs@tsi.org.uk.

MORE PROTECTION FOR MORTGAGE HOLDERS

Current lending practice would be put into law to ensure borrowers can access protections offered by the court, under Ministry of Justice proposals to allow a mortgage lender to repossess and sell owner-occupied properties only after either obtaining a court order or the consent of the borrower. The proposals would:-

• Only apply to owner-occupied dwellings and not to buy-to-let or other commercial loans.

• Not affect other remedies upon the lender.Not change the practice where the borrower hands in the keys and the lender accepts them.

• Provide legal certainty in the case of abandoned properties.

• Not change practice in the majority of cases, where lenders already obtain possession orders before selling.

The proposals follow on from the High Court ruling in the case of Horsham Properties v Clark and Beech,* which raised awareness that homes might be sold without a court order. They are

set out in the consultation paper, 'Mortgages: power of sale and residential property', which is available at http://tinyurl.com/yjga9oz - pdf (Ministry of Justice General Enquiries; tel: 020 7210 8500). Responses by 28 March.

*Horsham Properties v Clark and Beech, High Court (Chancery Division), Judgment 8 October 2008 (http://tinyurl.com/ye6aeco)

EMPLOYMENT

ACAS EXPANDS PRE-CLAIM RECONCILIATION (PCC) SERVICE

The ACAS Pre-Claim Conciliation (PCC) service, which has resolved 70% of the 3,500 cases referred to it without going to Tribunal since it was launched in April 2009 alongside the new Acas Code of Practice on Disciplinary and Grievance Procedures, is to be expanded to cover all major types of workplace issues.

By tackling workplace issues early, Acas claims PCC saves businesses time, money and stress. On average employers spent slightly more than three days using the PCC service, compared to nearly 14 days when a claim escalates to an employment tribunal hearing. A new Code of Practice has been launched to help encourage better communication and relationships - and Acas believes the savings from the PCC services will become even more significant as HR professionals and employees become more accustomed to resolving workplace disputes internally.

PCC is available - often free of charge - for any type of workplace issue that could turn into an employment tribunal claim, including disputes over:-

• Unfair dismissal.

• All forms of workplace discrimination.

• Redundancy payments or selection procedures.

• Deductions from wages or unpaid notice/holiday pay.

• Rights to time off or flexible working.

• Equal pay.

In addition to the expansion of the PCC service, Acas has expanded its helpline.

Employers and employees can now find out more about the PCC service on 08457 47 47 47 which is manned from 8 am - 8 pm Monday to Friday and 9 am - 1 pm on Saturdays. Further information is also available at http://www.acas.org.uk/pcc.

EMPLOYER FINED FOR HAVING NO COMPULSORY INSURANCE

The Health & Safety Executive has warned employers that it will take action against them if they are found not to have compulsory insurance to protect their staff, following a court action on 12 November 2009 that resulted in a Cambridgeshire retailer being fined a total of £1,000 for two offences plus £539 costs.

Dipak Kumar Kantial Solanki, the owner of Melbourn Stores in Melbourn, failed to produce a current Employers' Liability Compulsory Insurance (ELCI) certificate when an Environmental Health Officer visited his store. He subsequently pleaded guilty at Cambridge Magistrates Court to two breaches of section 1(1) of the Employers' Liability Compulsory Insurance Act 1969.

ENVIRONMENT

NEW BIO-ENERGY FUND

Businesses and community organisations in England such as schools and hospitals can now obtain additional help towards the cost of buying and installing biomass-fuelled heating and combined heat and power technology from a new £4m fund introduced under Round 6 of the Bio-Energy Capital Grants Scheme. Individual projects can access up to £500,000 to pay for up to 40% of the difference in cost between a biomass boiler and its fossil fuel alternative.

Full details of the grant and how to apply for it are available at http://tinyurl.com/93uegx (Dept of Energy a Climate Change; tel: 0300 060 4000).

TACKLING SHODDY BUILDING

A requirement for 'competent person' (CP) schemes to publish how, and how quickly, they deal with complaints, as well as allowing the public to search online for a suitably qualified local builder to carry out specific work, has been proposed by the Dept for Communities & Local Govt.

There are currently 12 CP schemes, which were introduced in 2002 as a way of ensuring building work is carried out to the safety and environmental standards required by the Building Regulations without it needing to be signed off by local councils or approved inspectors. The consultation - 'Building Regulations: Competent person self-certification schemes' - sets out how DCLG proposes to improve and harmonise the standards across the board. It is available at http://tinyurl.com/ya23fpz (DCLG Public Enquiries; tel: 0303 444 0000). Responses by 19 March.

OVERHAULING THE GREEN RATING STANDARD FOR NEW HOMES

The Dept for Communities Ft Local Govt has published proposals to improve three key areas of the Code for Sustainable Homes, in order to align it with changes to Part L of the Building Regulations and the proposed approach to adopting the 2016 definition of zero carbon.

The Code was introduced in April 2007 to help green-proof homes and reduce future utility bills by allocating stars in nine categories such as energy use, waste, materials and water. The most significant proposed changes are within the area of energy but the proposals also aim to streamline the standard and its processes to ensure it is focused on issues of greatest significance and to resolve the problems that have arisen in use.

The Code, which is voluntary, allocates from 1 to 6 stars, with 1 being entry level but still above the mandatory legislative level and 6 representing exemplar sustainable development, in each category. 300,000 homes have been registered to 'build to Code' standards and almost 2,000 have completed Code certificates.

'Sustainable new homes: the Road to Zero Carbon: Consultation on the Code for Sustainable Homes and the Energy Efficient standard for zero carbon homes' (ISBN 9781409821212) is available at http:// tinyurl.com/yh7b3kf (DCLG Public Enquiries; tel: 0303 444 0000). Responses by 24 March.

GARDEN DEVELOPMENTS

While the issue of garden development has been contentious in recent years, inappropriate building in back gardens is not a widespread national problem, claims the Dept for Communities & Local Govt, and is often linked to councils' failure to have local policies in place. Councils in garden development hot-spots have the powers to act if they establish clear local policies.

Only 50 of 127 local authorities who responded to a government-sponsored survey considered garden development to be an issue of some kind, with those authorities which did regard it as being of greatest significance concentrated in London, the West Midlands and - most of all - the south east. Garden developments contributed most to the housing stock where houses were in the region of £300,000 - well above the national average.

'Garden developments: understanding the issues. An investigation into residential development on gardens in England' is available at http://tinyurl.com/yhuhwo8 (DCLG Public Enquiries: tel: 0303 444 0000).

NATIONAL BOILER SCRAPPAGE SCHEME Up to 125,000 households in England with working 'G-rated' boilers can now apply to the Energy Saving Trust for a voucher that entitles them to £400 off the price of a new, 'A-rated' boiler or a renewable heating system, such as a biomass boiler or heat pump.

According to the Dept for Energy & Climate Change, the scheme will help sustain work for 130,000 installers and more than 25 UK-based boiler manufacturers, cut household energy bills by £200-£235 pa and save some 140,000 tonnes of CO2, which is equivalent to taking 45,000 cars off the road.

Vouchers have been issued since 18 January on a first come, first served basis to households which register either by telephone (0800 512 012) or on the Trust's website at http:// www.est.org.uk or http://tinyurl.com/yebcotr.

INCREASING THE CARBON EMISSIONS REDUCTION TARGET (CERT)

A new, higher target of 293m tonnes of lifetime CO2 savings by December 2012 is one of the key proposals set out in a Dept of Energy Ft Climate Change consultation on the previously announced extension of the Carbon Emissions Reduction Target (CERT), which was originally scheduled to run from 1 April 2008 to 31 March 2011. In July 2009 the original target CO2 saving was increased by 20% to 185m tonnes.

Other proposed new measures include:- the provision of an insulation minimum and the removal of compact fluorescent lights as eligible measures that will help achieve a target of insulating 6m homes by December 2011; a new super priority group obligation to ensure that the assistance is offered to the most vulnerable householders who are least able to afford energy saving measures.

'Extending the Carbon Emissions Reduction Target: consultation on a CERT framework for the period April 2011 to December 2012' (Urn 09D/845) is available at http://tinyurl.

com/ycgmgsf - pdf (Dept of Energy & Climate Change; tel: 0300 060 4000). Responses by 14 March.

MINIMUM ENERGY EFFICIENCY STANDARDS FOR PRODUCTS

The role of product policy in encouraging the supply chain to make and sell the most energy efficient products is discussed in a Defra consultation seeking views on the impact that can be achieved by measures such as:- minimum standards; labelling; obligations on energy suppliers; tax incentives and market instruments.

The consultation assesses product policy in the context of wider energy savingscommitments. Measures to remove the worst performing domestic and commercial products from the market and promote those that perform best are already projected to reduce fuel bills by £1bn and cut CO2 emissions by 7m tonnes.

'Saving energy through better products and appliances: a consultation on analysis, aims and indicative standards for energy efficient products 2009-2030' is available at http://tinyurl.com/ye7sbdw (Defra Publications; tel: 0845 955 6000). Replies by 12 March.

BATTERY RECYCLING RULES

A requirement for businesses that place more than 1 tonne a year of industrial and automotive batteries on the market to pay for their disposal by joining a Batteries Compliance Scheme (BCS) that will collect, treat and recycle them on their behalf, was brought into force on 1 January by The Waste Batteries and Accumulators Regulations 2009 / 890 (http://tinyurl.com/cl5xnx - pdf) (Explanatory Memo - http://tinyurl.com/dg3ppb (pdf).

The regulations also ban landfill disposal or incineration of such batteries and set targets for collecting and recycling at least 25% of portable batteries by 2012, increasing to at least 45% by 2016.

The regulations complement The Batteries and Accumulators (Placing on the Market) Regulations 2008 / 2164, which came into force on 26 September 2008 (http://tinyurl.com/ 5zgx4m). (The Stationery Office; tel: 0870 600 5522.)

From 1 February 2010, they require distributors / retailers supplying 32kg or more portable batteries a year (equivalent to one pack of four AA batteries a day), either to the public or business, to provide a take-back facility ('Be Positive') that accepts all types of portable batteries, whether they sell them or not, and is free of charge to the end-user. BCSs pay for their collection, treatment and recycling.

A calculator to help distributors /

retailers check whether they are supplying 32kg of batteries or more per annum is available from Defra at http://tinyurl.com/ yakmgpj (Defra Public Enquiries; tel: 0845 933 5577). More information is available at http://www.businesslink.gov.uk/batteries.

FARMING, FISHING a FOOD

CALORIES ON MENUS

Some 800 outlets operated by 21 catering companies have been helping their customers make healthier choices by displaying the calorie content of the dishes displayed on their menus, as part of a joint initiative with the Food Standards Agency. The initiative aims to support the establishment of voluntary calorie labelling schemes in outlets ranging from restaurants and pubs to leisure attractions and coffee shops.

The key principles of a scheme based on the work undertaken by the FSA with the 21 companies have been set out by FSA in a consultation paper seeking the views of both the public and the wider catering industry on how calorie information should appear in a voluntary, industry-wide initiative.

An independent evaluation published in conjunction with the consultation shows that the participating companies were able to introduce calorie information with relative ease. It identifies visibility, understanding and consumer engagement as the three factors with the greatest impact on customers' inclination to use the calorie information.

'Provision of calorie labelling at point of choice in catering outlets' is available, together with a report on the evaluation study, at http://tinyurl.com/ycrvx56 (Food Standards Agency Publications; tel: 0845 606 0667). Responses by 11 March.

CONSUMER VIEWS ON 'COUNTRY OF ORIGIN' LABELLING

While consumers are aware of 'origin' labelling, it is not one of their main concerns when shopping, concludes a package of research commissioned by the Food Standards Agency to inform discussions about European proposals on country of origin food labelling. Both price and food safety information on labels was, on the whole, considered to be more important although some consumers were willing to pay a small amount more if the origin of their food was important to them.

Other key findings of the research, which used a range of measures to investigate customer attitudes, included:-

• People most frequently identified meat and meat products as the foods on which they would most like to see origin labelling.

• Consumers are nevertheless confused whether country of origin refers to where animals are born raised or slaughtered or where the meat is processed.

• 780/o of meat and meat products now carry a country of origin statement, compared with 690/a in 2005.

• 440/o of meat products now give the origin of meat ingredients, compared with just 19% in 2005.

'Country of origin labelling: a synthesis of research' is available at http://tinyurl.com/ yblwrfj.

Proposed European labelling rules will require businesses that make origin claims to provide further information so people know where their food comes from, rather than just where it was processed. Current FSA 'Country of origin labelling guidance' - which was first published in October 2008 and revised last September -supports this approach. It is available at http://tinyurl.com/yd19m17 (Food Standards Agency Publications; tel: 0845 606 0667).

HEALTHIER SAVOURY SNACK OPTIONS

A series of voluntary recommendations, which, if adopted by the food industry, would reduce saturated fat and increase the availability of

healthier options and smaller portion sizes in savoury snacks, have been published for consultation by the Food Standards Agency.

The main recommendations are:-

• Dairy foods: promote 10/o fat (or less) milk, reduced-fat Cheddar cheese and lower-fat ice cream;

• Meat products: reduce the saturated fat
content of sausages, meat pies and

pastries;

• Savoury snacks: make single packs of 30g or less more widely available and promote consumer interest in smaller pack sizes;

• All products: focus marketing efforts more on the promotion of reduced/low fat options, with particular emphasis on lower-fat spreads.

The consultation - which follows on from the 2009 consultation covering soft drinks with added sugar, cakes and confectionery -contributes to the Dept of Health's 'Healthy weight, healthy lives' strategy.

'Draft recommendations on promotion of lower fat products, including dairy products, fat and saturated fat reductions for meat products and portion size availability for savoury snacks' is available at http://tinyurl.com/ygnvcrg - pdf (Food Standards Agency Publications; tel: 0845 606 0667). Responses by 9 March.

FOOD HYGIENE TOOLS

A range of guides, videos and an assessment pack are among the tools available from the Food Standards Agency to help businesses comply with food hygiene law. They include the following, which are currently being promoted by the FSA in a poster and advertisement campaign:-

• Safer Food, Better Business - an

'innovative and practical' approach to food safety management for small businesses.

• CookSafe and RetailSafe - packages to respectively help caterers and retailers in Scotland.

• Safe Catering - FSA Northern Ireland's food safety management guide.

• Good Hygiene Practice for Industry - the FSA will recognise any national guide assessed under the these guidelines.

• Bacteria Bite Business - a video focusing on the '4 Cs' - Cleaning, Cooking, Chilling and Cross-Contamination.

• Hygiene Guidance - covering legislation, including the 2006 food hygiene rules.

Information on these tools, and other FSA publications, is available at http://tinyurl.com/ yku92el (Food Standards Agency Publications; tel: 0845 606 0667).

FUNDING FOR ENERGY EFFICIENT FARM EQUIPMENT

British farmers can access unsecured, interest-free loans for amounts between £3,000 and £20,000 to purchase more energy efficient equipment, under a new 'Green Funding Deal' scheme available from 1 February by the Carbon Trust as part of its Big Business Refit campaign.

The loans are designed to pay for themselves over one to four years through direct energy savings and will be available for farmers on a first come, first served basis. Examples of qualifying energy efficient equipment include:-thermal screens used in greenhouses; milk cooling systems; insulation in field horticultural crop stores; grain drying humidity stores, etc.

Further information on the Energy Efficiency Loans scheme is available at http://www. carbontrust.co.uk/loans (Carbon Trust

Enquiries: tel: 0800 085 2005). Farmers can also request a call-back from the Trust on 01865 885846.

FINANCIAL AND LEGAL

PRESERVING THE PINT

Businesses are allowed to continue to use imperial units such as the pint, ounce and mile alongside metric until the UK government alone decides otherwise, under regulations* that implement an indefinite exemption to EU laws, which came into force on 1 January 2010 in the UK.

"The Units of Measurement Regulations 2009 / 3046 (http://tinyurl.com/ybh4gpz -pdf) (Explanatory Memo - http://tinyurl. com/ygvtg8d (pdf). (The Stationery Office; tel: 0870 600 5522.)

POST OFFICE BANKING SERVICES

Proposals for financial and banking products that could be added to the wide range already available from the Post Office, have been published for consultation by the Dept for Business. The consultation paper also sets out the services already available and the government's vision for PO banking, as well as drawing comparisons with PO banks all over the world.

The main services proposed are:-

• A PO current account.

• A children's account that would encourage saving from an early age.

• A weekly budgeting account to allow those on low incomes to take advantage of direct debits and reduced bills.

• New services for small businesses,

including a business account.

'Post Office banking: a consultation on developing the banking and financial services available at the post office' (Urn 09/1482) is available at http://tinyurl.com/y92c4rn - pdf (DBIS Publications Orderline; tel: 0845 015 0010). (Although the consultation closed on 24 February please see the information on 'Consultation Documents'.)

BOOSTING BUSINESS GROWTH IN TOWN CENTRES

Town centre and economic development policy has been combined into a single, streamlined Planning Policy Statement 4, that has been designed to support economic growth, protect local markets and small shops and help councils make decisions that speed up economic recovery in town centres. The new 32-page Statement replaces the previous 137-page guidance.

In addition to retaining the sequential test, which requires town centre, rather than out-of-town, sites to be developed first for shops, leisure and offices, the new Statement includes a new 'impact test' that replaces the dysfunctional 'needs test', giving councils better controls over big developments that put small shops and town centres at risk. Under the new test, town centres will be assessed against factors such as climate change, impact on the high street, jobs, and consumer choice and spending.

'PPS 4: Planning for sustainable economic growth' is available at http://tinyurl.com/ ydmeq8z (DCLG Publications: tel: 0300 123 1124).

STREAMLINING THE PLANNING SYSTEM Councils and developers will work together before planning applications for businesses, offices, shops, schools etc are submitted, in order to help ensure they are assessed quickly, under proposed guidance developed by the Dept for Communities & Local Govt as part of its on-going radical overhaul of the planning process.

Together with proposals to reduce the number of conditions applying to planning permissions, the latest proposed measures are expected to save businesses Ell m, and councils £25m per annum when they come into force later this year. Combined with proposals announced earlier in 2009 to reduce the amount of information submitted with applications, the total potential savings for businesses is claimed to be E120m pa.

The latest consultation outlines how councils should support developers who propose appropriate developments from pre-application through to completion of new buildings, as well as offering expert advice and highlighting potential problems with future projects. New guidelines will also require councils to ensure local residents are kept better informed by advertising planning applications on their websites, as well as in newspapers.

New rules will aim to improve the performance of key bodies such as the Environment Agency and English Heritage, and to ensure they provide information on, for example, flood prevention or protection of old buildings as early in the process as possible.

The proposals are covered in three consultations, which complement the changes already made to the process:-

'Development management: proactive planning from pre-application to delivery' (http://tinyurl.com/yda3va6) : 'Improving the use and discharge of planning conditions' (http://tinyurl.com/yj7uzxv) : 'Improving engagement by statutory and non-statutory consultees' (http://tinyurl.com/yf59mf7). (DCLG Public Enquiries; tel: 0303 444 0000.) Responses By 19 March.

PROPOSED CHANGES TO 'RELEVANT OFFENCES'

The existing list of offences that are treated as 'relevant for consideration' in applications for a personal licence under Part 6 of the Licensing Act 2003 will be significantly extended by the Dept for Culture, Media & Sport proposals to bring 'conspiracy' and 'attempting' to commit any of the existing list of relevant offences within the scope of the licence application.

The Act, which came into force in November 2005, brought eight existing licensing regimes into one and regulates the sale and supply of alcohol, public entertainment, theatre, cinema, late night refreshment and late night cafes. The consultation seeks views on whether any of the existing relevant offences should be removed and identifies two areas for further consideration.

The consultation, 'Proposal to amend Licensing Act 2003 (Personal Licence: Relevant Offences)', is available at http://tinyurl.com/ yev5x9e (Dept for Culture, Media & Sport General Enquiries; tel: 020 7211 6200). Responses by 12 March.

LICENSING EXEMPTION FOR SMALL LIVE MUSIC EVENTS

Small live music performances for 100 people or less will no longer need to be licensed, under proposals for an exemption to the Licensing Act 2003 that would make it easier for unlicensed premises, such as cafes, village halls, record shops etc as well as pubs and clubs to stage small scale live music indoors between 8 am and 11 pm. Currently, venues wishing to stage live music must have a have a premises licence, a club premises certificate or a temporary event notice.

'Consultation on a proposal to exempt small live music events from the requirements of the

Licensing Act 2003' is available at http://tinyurl.com/ybd864f (Dept for Culture, Media & Sport General Enquiries; tel: 020 7211 6200). Responses by 26 March.

FREE USE OF ORDNANCE SURVEY INFORMATION

Options for making certain geographical data sets from Ordnance Survey (OS) available without restrictions for free re-use have been published for consultation by the Dept for Communities & Local Govt.

The proposals support the 'Making public data public' initiative launched in June 2009, which aims to use open access to government data in order to drive greater democratic accountability, improve public services and support economic growth. They also take account of other strategic options for OS, plus the current high levels of growth in the wider geographic information market.

OS, which acts as the national mapping agency of Great Britain, is currently completely self-funded through revenue from licensing its data but it is facing medium term competition in its core market from changing technology. The consultation recognises the need to identify a sustainable business model that will allow OS to thrive in the changing market, without compromising the world-class quality of its data.

'Policy options for geographic information from Ordnance Survey: consultation' is available at http://tinyurl.com/y15k35j - pdf (DCLG Public Enquiries: tel: 0303 444 0000). Responses by 17 March.

INLAND WATERWAYS

Significant investment in the past decade has left Britain's inland waterways and their surroundings in better condition than at any time since the second world war, claims Defra in a new consultation seeking views on what actions should be taken to build upon the benefits arising from this investment.

The consultation identifies the main public benefits as:- creating space for recreation and healthy activity; acting as a catalyst for regeneration; encouraging more people to holiday at home; encouraging green transport; and creating green jobs and volunteering opportunities.

In addition to considering the relative merits of these benefits, the consultation asks whether all the potential benefits have been captured and how those who benefit from the waterways can be encouraged to contribute to their upkeep. It also asks whether alternative models such as mutual or charitable status could offer waterways a more sustainable future.

'Consultation on the government's strategy for the inland waterways of England and Wales - waterways for everyone' is available at http://tinyurl.com/yzjh937 (Defra Publications; tel: 0845 955 6000). Responses by 26 March.

REVISED GUIDANCE ON THE GROUNDWATER REGULATIONS

Defra is seeking views on proposals for revised Guidance to The Groundwater (England and Wales) Regulations

2009/2902 (http://tinyurl.com/yb9n5u2 -pdf), which were brought into force on 30 October 2009 to replace the Groundwater Regulations 1998. While there are differences in detail, the principles of groundwater protection are largely unchanged by the regulations, which provide for five different classes of permit.

An Explanatory Memo to the 2009.  Regulations is available at http://tinyurl.

com/y8cjsuf - pdf (The Stationery Office; tel: 0870 600 5522).

'Consultation on revised guidance on the Groundwater (England and Wales) Regulations 2009' is available at http://tinyurl.com/yjg54oh (Defra Publications; tel: 0845 955 6000). Responses by 29 March.

NEW DRINKING WATER REGULATIONS 42,000 private water supplies in England are required to meet the same water quality standards as public water supplies, under The Private Water Supply Regulations 2009 / 3101 (http://tinyurl.com/y8s7pyb - pdf) which came into force on 1 January. The new regulations, which replaced the Private Water Supplies Regulations 1991, specify new monitoring and risk assessment as well as setting new quality standards. An Explanatory Memo to the 2009 Regulations is available at http://tinyurl.com/ yhndaju - pdf (The Stationery Office; tel: 0870 600 5522).

Further information is available at http://tinyurl.com/y8g9ytm (Defra Public Enquiries; tel: 0845 933 5577). The website now includes a summary of the key provisions of the Floods and Water Management Bill, published last November. Designed to provide better management of flood risk for people, homes and businesses, the Bill will help safeguard community groups from unaffordable rises in surface water drainage charges and protect water supplies to the consumer.

HELPING SMALLER FIRMS BID FOR GOVERNMENT CONTRACTS

A free online procurement course, 'Winning the contract', designed to help smaller firms in particular bid for the £220bn of public sector contracts awarded each year is now available at http://tinyurl.com/yjjss2x (Office of Government Commerce Helpline; tel: 0845 000 4999).

One of a series of government initiatives to make the procurement market clearer and simpler, the course shows participants how to identify opportunities, explains the public procurement process and demonstrates how to submit tenders. It includes other tips on the bidding process and identifies where to find public sector contract opportunities.

RAISING PROFESSIONAL STANDARDS FOR INVESTMENT ADVISORS

By the end of 2012, all investment advisors -whether independent or restricted - will need to demonstrate greater knowledge and skills and meet enhanced standards in dealing with clients, under a key element of the wide-ranging reforms introduced by the Financial Services Authority under the Retail Distribution Review.

The FSA has proposed that a new in-house governance structure should be created to ensure advisors achieve this greater level of professionalism on an ongoing basis through the achievement of new, higher level qualifications, meeting continuing professional development targets and adhering to common ethical standards.

In order to clarify issues about the new level of qualifications that advisers will need to meet by the end of 2012, FSA has published a list of qualifications it guarantees would exempt them from taking further exams once the content of the new qualification standard has been

confirmed.

Consultation paper CP09/31, 'Delivering the Retail Distribution Review: Professionalism; Corporate Pensions; and Applicability of RDR proposals to pure protection advice', is available at http://tinyurl.com/y654h7h - pdf (FSA Switchboard; tel: 020 7066 1000). Responses by 16 March.

NEW POWERS TO TACKLE ALCOHOL CRIME Five mandatory powers to tackle alcohol-related crime and disorder - which are estimated to cost the UK between £8bn and £13bn pa - are among the elements that make up a proposed mandatory code for retailers that takes account of a national consultation that generated more than 7,000 responses. The proposed conditions are:-

• Banning irresponsible promotions such as 'all you can drink for £10' offers, 'women drink free' deals and speed drinking competitions.

• Banning 'dentists chairs', where drink is poured directly into customers' mouths.

• Ensuring free tap water is available for customers.

• Ensuring all alcohol retailers have an age verification policy in place requiring them

to check the ID of anyone who looks under 18.

• Making sure that trade premises give customers the option of buying small measures of beer, wine and spirits.

The first three conditions are scheduled to come into effect on 6 April with the remaining two by 1 October.

Premises that break the code or any secondary conditions will face a range of tough possible sanctions, including losing their licence, having additional conditions imposed on their licence or, on summary conviction, a maximum £20,000 fine and/or 6-months imprisonment.

The key themes identified from analysis of the findings of a 2009 consultation on the proposed code are set out in 'Safe, sensible, social. Selling alcohol responsibly: government response to the consultation on the code of practice for alcohol retailers'. It is available at http://tinyurl.com/ycoulmg, together with 'Selling alcohol responsibly: a consultation on the new code of practice for alcohol retailers -overview report'. (Home Office General Enquiries; tel: 020 7035 4848.)

PROTECTION FOR SCOTCH WHISKY

The £3bn Scotch whisky industry and its customers have been given greater protection from counterfeit products and insufficient labelling by The Scotch Whisky Regulations 2009 / 2890, ISBN 0 11 148707 5, TSO, £5.50 (http://tinyurl.com/ycjdye8 - pdf), which came into force on 23 November 2009 in the UK. An explanatory memo is available at http://tinyurl.com/yjgvjrj - pdf (The Stationery Office; tel: 0870 600 5522).

The regulations, which are supported by new criminal sanctions, define 5 categories of Scotch whisky. In addition to introducing new rules on compulsory sales descriptions, the use of distillery and distillers' names on labels and the use of local and regional geographic indications, they include provisions to:-

• Ban the use of the term 'pure malt' and derivatives.

• Introduce tighter rules on maturation, age and distillation statements.

• Ban the export of Single Malt unless it is bottled.

• Ban the export of Scotch whisky in wooden casks and other wooden containers.

• Introduce criminal sanctions.

A two-year transitional period applies to the new labelling requirements, while a three-year transitional period applies to the new bottling requirements.

MINIMUM PENSION AGE

As part of the pension reforms announced in 2003, the normal pension age will rise from 50 to 55 after 6 April 2010. This means people will only be allowed to start receiving payments from an occupational or a personal pension scheme when they are 55 or older, unless they have severe health problems or can start their pensions at a lower age that is protected by the pension tax law. Other implications of the reforms include:-

• Flexible retirement: people no longer have to leave employment to access an employer's occupational pension, with employers being allowed to offer their employees the option of flexible retirement, which means they can either work longer or combine work and pension income however they wish, so long as their own pension scheme allows it.

• Changes to schemes' minimum ages: instead of schemes having to set a minimum age when a member can draw a pension in order for contributions to qualify for tax relief, the 2003 reforms introduced a single minimum age of 50 until 6 April 2010, when it will increase to 55. The upper age limit of drawing a pension remains at 75.

Guidance in the form of Frequently Asked Questions and a glossary of pension terms is available at http://tinyurl.com/yfeekbj - pdf. For information about the tax rules, call the HM Revenue a Customs Helpline on 0845 600 2622.

CREDIT LICENCE FEE STRUCTURES

A number of criteria will be used to differentiate between classes of applicant for consumer credit licences and the relevant fees they are charged under Office of Fair Trading proposals to replace the current fee structure where the differential is based only on whether the applicant is a sole trader, a corporate body or a partnership. The criteria that might be chosen to differentiate between different classes of applicant under the OFT's proposals for a fairer and more proportionate structure, include:-

• Type of business.

• Type of credit activity.

• Number of categories applied for.

• Size of credit business.

• Overall size of business.

The OFT is also seeking views on whether applications from certain types of body, such as charitable debt advice agencies, should continue to be exempt from fees.

'Review of Consumer Credit Licensing Fees' (Oft1149con) is available at http://tinyurl.com/ yavhxmp - pdf (Office of Fair Trading Publications; tel: 0800 389 3158). Responses by 11 March.

HEALTH & SAFETY

FIRST AID AT WORK

The aspects of first aid that all employers (including those with less than five employees) must address to comply with the Health and Safety (First-Aid) Regulations 1981 are set out in the latest edition of the Approved Code of Practice (AcoP) and guidance. Revised to give employers greater flexibility in determining their first aid provision, the code includes details of the new training regime for first­aiders in the workplace.

'First aid at work: The Health and Safety (First Aid) Regulations 1981. AcoP and guidance (L74)' is available at http://tinyurl.com/y9inson (HSE Books; tel: 01787 881165).

The revised guidance is complemented by a new tool that has been developed by the Health a Safety Executive to help employers determine the number and type of first aid personnel they should provide in the workplace. HSE claims it only takes five minutes to use the tool, whichrequires users to enter information on the degree of hazard and number of employees involved. A series of questions highlight additional factors. The 'First Aid at Work Assessment Tool' is also available at the above web address (HSE Infoline; tel: 0845 345 0055).

VIOLENCE AT WORK

Although the 2008/09 British Crime Survey (BCS) reports an estimated 321,000 assaults at work and 305,000 threats of violence, the Health a Safety Executive points out that the risk of being a victim of real or threatened victim of violence at work is actually low, with only 1.4% of working adults being the victims of one or more violent incidents. The number of incidents has actually fallen by 55% from the 1995 peak of 1,404,000.

Analysis of the nature of the violence found that 36% of all people assaulted or threatened were repeat victims, with strangers being the offenders in 590/a of cases.

HSE's 'Violence at Work' report, which 'interrogates' the results, is available at http://tinyurl.com/yb54x2a (HSE Books; tel: 01787 881165).

As part of its on-going work to tackle violence at work, HSE is currently seeking users' views both on its work-related website and the 'Managing violence in licensed and retail premises' toolkit it has developed in partnership with local authorities. The latter includes practical advice on carrying out a risk assessment and includes information on a wide range of control measures. The information it contains is summarised in a leaflet.

The toolkit, leaflet and an online survey are available at http://tinyurl.com/51cg37 (HSE Infoline; tel: 0845 345 0055).

PUBLIC PATHS - TO GRIT OR NOT TO GRIT? Contrary to stories in both the Sunday Telegraph and Mail on Sunday, the Institution of  Occupational Safety and Health (IOSH) says it has never issued guidance warning its members not to grit public paths because it could lead to legal action. In seeking to put the record straight, IOSH has clarified that its position, generally speaking, is to encourage businesses to be good employers and neighbours by gritting access roads outside their properties if it helps staff and customers to arrive and leave safely - but to make sure that they do it thoroughly.

IOSH's Free Enquiry Service is available at http://tinyurl.com/yedduqx (Institution of Occuptional Safety & Health (IOSH)

Enquiry Service; tel: 0116 257 3199).

TAXATION

GUIDANCE ON THE LATE PAYMENT

PENALTY REGIME

With the new penalty regime for late payment of PAYE coming into force in May this year, for tax years 2010-11 onwards, HM Revenue a Customs has updated its Frequently Asked Questions (FAQ) guidance, which includes an important update on late payment interest.

The topics covered by a total of more than 40 questions range from general issues such as when do the rules start, what do they cover and what is the situation regarding minor transgressions such as being a day or two late, to more specific technical issues.

'PAYE - Penalties for late payment - FAQs' is available at http://tinyurl.com/yk9fczj (HMRC National Advice Service; tel: 0845 010 9000).

BRINGING INDIRECT TAXES AND EXCISE DUTIES INTO THE NEW PENALTY REGIME Draft legislation, which will bring the final tranche of indirect taxes and excise duties within HM Revenue a Customs' new late filing and late penalty regime, has been published for consultation. It will affect insurance premium tax, aggregates duty, climate change levy, landfill tax, excise duties and Vat - which were not covered by the penalty models introduced last year by the Finance Act 2009 for a broad range of taxes (including income tax, corporation tax, PAYE, CIS, inheritance tax, petroleum revenue tax and stamp duties).

As these latest taxes to be brought within the aligned penalty regime have a wider range of periods to which payment and filing obligations may apply, special penalty models based upon the principles enshrined in the 2009 Finance Act have had to be drawn up. The draft legislation amends the late filing and penalty regimes set out in schedules 55 and 56 of the 2009 Act, with Schedule 55 built round a table indicating each tax and the return or other document required with it.

'Meeting the obligations to file returns and pay tax on time' is available at http://tinyurl.com/yg9wtuc - pdf (HMRC National Advice Service; tel: 0845 010 9000). Responses by 3 March.

ONLINE FILING AND ELECTRONIC PAYMENT CONSULTATIONS

A summary of the consultation responses to key points in draft regulations implementing two key online services, have been published, together with examples of the changes that were made as a result of the responses, by HM Revenue & Customs. The draft regulations, which were published for consultation on 7 May, 2009, will introduce:-

• Online filing of company tax returns using XBRL standard for all returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010.

• Electronic payment of all corporation tax liabilities after 31 March 2011.

The response document to 'HMRC Carter programme - Compulsory online filing of company tax returns and electronic payment of corporation tax', is available at http://tinyurl. com/ya9jm4t - pdf.

HMRC has published a similar summary of responses to the consultation on compulsory online filing of Vat returns and electronic payment of returns. The draft legislation proposed:-

• Online filing of Vat returns and electronic payment of Vat for existing businesses with an annual turnover of £100,000 or more for accounting periods starting on or after 1 April 2010.

• Online filing of Vat returns and electronic payment of Vat for all newly registered businesses with an effective date of registration on or after 1 April 2010 (whatever their turnover).

The summary of responses to 'Compulsory online filing of Vat returns and electronic payment of Vat' is available at http://tinyurl. com/y9kjrzw - pdf.

Despite the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Taxation both making a case for postponing compulsory online filing, HMRC proposes not to make any changes to the timetable. Further information is available at 'Compulsory deadlines for online filing - an introduction' (http:// tinyurl.com/yeru91b). (HMRC National Advice Service; tel: 0845 010 9000.)

A NEW FRAMEWORK FOR EXCISE DUTIES COMPLIANCE

HM Revenue & Customs is seeking views on draft legislation to establish a compliance framework covering record-keeping, information and inspection powers and increases in time limits for assessments and claims in respect of excise duties.

The draft legislation, which takes account of feedback from an earlier consultation, deals with amendments, clarification and extension of excise civil powers used to check that people have registered, are operating honestly and have paid excise accurately and on time. It will affect those involved in dealing with duties on alcohol, tobacco, energy products, gambling and air passenger duty.

'Excise: Modernisation and compliance checks: the next stage' is available at http:// tinyurl.com/yev7fag - pdf (HMRC National Advice Service; tel: 0845 010 9000). Responses by 3 March.

TELECOMMUNICATIONS

BUSINESSES 'MISSING OUT ON BEST TELECOM DEALS'

Despite spending £13.9bn on telecoms services in 2008 and accounting for 45% of total retail telecoms turnover, UK businesses are still missing out on the best deals because they are not taking full advantage of opportunities to switch providers, according to new research by Ofcom.

The research, 'Business Consumer Experience', found that telecoms services were becoming more important to UK businesses, with communicating on the move now vital for many firms. The mix of services is also changing, with mobile, internet and data services playing an increasingly important role. While the research found that more than 85% of businesses were satisfied with the range of products and services, it also highlighted the following areas of concern:-

• Some dissatisfaction with customer service and broadband speeds.

• Difficulties in negotiating a better deal and switching suppliers.

• Problems with mobile 'not-spots' in certain areas of the UK.

• The cost of landlines and inadequate customer service.

• Poor quality connections with mobile and internet/data services.

• Being kept on hold by customer services.

'Business Consumer Experience' (December 2009) is available at http://tinyurl.com/yb4m6ba (Ofcom Switchboard; tel: 0300 123 3000 / Ofcom Enquiries; tel: 0300 123 3333).

A new short guide produced by Ofcom to help small businesses get the best deal for their telecoms services is available at http://tinyurl. com/y9yvvj5 - pdf.

£1BN INVESTMENT IN SUPER-FAST NEXT GENERATION BROADBAND

With estimates suggesting that private investment will only take super-fast broadband to 70% of the UK, the Dept for Business is making £1bn available in a Next Generation Fund to help the upgraded digital infrastructure reach rural communities and other hard-to­reach areas.

In addition to supporting the aim stated in 'Digital Britain' to roll out NG networks to at least 900/a of the UK by 2017, the fund aims to incentivise market investment in communications infrastructure. It will also maximise government links to the Universal

Service Commitment - a parallel broadband investment programme that aims to ensure every community has access to 2Mbps broadband connection by 2012.

In addition to seeking views on how best to deploy the investment, 'Consultation on proposals for a Next Generation Fund' (Urn 10/507) also outlines the opportunities to capitalise on the high-level economic benefits offered by NG broadband in areas such as teleworking, 'cloud computing' and telemedicine. It is available at http://tinyurl. com/ykj5wmb -pdf (DBIS Publications Orderline; tel: 0845 015 0010). Responses by 1 April.

TRANSPORT

SECOND-HAND CARS MARKET

190/a of people buying a second-hand car experienced problems with it after the sale, with 860/a of problems arising within three months of purchase, reveals one of four research reports undertaken as part of the Office of Fair Trading's market study into the sale of second-hand cars. Only 470/o of respondents who subsequently made contact with the dealer about the problem said it was completely rectified, while nearly 30% said it had not been rectified at all.

The four reports cover surveys of second­hand car buyers, dealers and local authority trading standards services, plus a mystery shopping exercise which found 27% of shoppers felt the information they received about their target vehicle and the services available at the dealership were 'insufficient' or 'extremely insufficient:

The OFT launched its market study in May 2009 following concerns about the large number of consumer complaints arising from the market. The full market study report will be published later this year and the OFT is also consulting on draft guidance for second-hand car dealers on compliance with the Consumer Protection from Unfair Trading Regulations 2008 and the Sale of Goods Act 1979, as amended. While aimed mainly at dealers, the OFT believes the guidance will also help consumer bodies and trading standards officers understand the relevant laws better.

'OFT guidance for second-hand car dealers -

a consultation', and the four research reports, 4 are available at http://tinyurl.com/yj7ul7t (Office of Fair Trading Publications; tel: 0800 389 3158). Responses by 12 March.

TEN VEHICLE CLASSES TO LOSE HGV TESTING EXEMPTION?

Proposals to remove the current exemption from the annual HGV roadworthiness testing scheme that covers 10 classes of vehicle have been published by the Dept for Transport following concerns about road safety and questions of fairness between operators raised by a review of the growing list of exemptions.

The classes of vehicles that would lose their exemptions include mobile cranes, breakdown vehicles, tower wagons, electrically propelled motor vehicles and tractor units pulling exempt trailers. The full list of exemptions is set out, together with the DfT proposals, in 'HGV MoT Testing exemptions: a consultation: It is available at http://tinyurl.com/ydel3nf (DfT Publications; tel: 0300 123 1102). Responses by 19 March.

IMPROVING LORRY PARKING

A 10-point action plan to improve lorry parking provision in England, establish consistently high standards and tackle shortage of facilities in specific areas has been published by the Dept for Transport as the first step towards a long ­term solution that meets the transport industry's demand for a co-ordinated approach to lorry parking policy.

Key action points include:- the development by NT of guidance for operators and councils to help improve the consistency and quality of the services offered to drivers; the introduction of a lorry parking model to map areas associated with demand and capacity issues and inform decision making at regional, local and national level. Increased coverage of new lorry parking facilities in local and national planning documents and allowing the facilities to be accessed directly from the motorway are among measures intended to encourage private sector investors.

The action plan links into six strategic objectives and their associated aims, which are set out in tabulated form in the DfT's 'Strategy for lorry parking provision in England: It is available at http://tinyurl.com/yasafsu (DfT Publications; tel: 0300 123 1102).

INCREASED PENALTIES FOR DISRUPTIVE ROAD WORKS

A swingeing, tenfold increase from £2,500 to £25,000 in the current maximum daily charge imposed on utility companies when their road works on traffic sensitive routes overrun, is among a range of measures proposed by the Dept for Transport to encourage the companies to complete their works on time.

Other key elements in the plan - which was drawn up by the DfT following a road works summit in October, 2009 attended by road user groups, utilities, bus operators and local authorities - include:-

• Revised inspection regulations to ensure companies with a poor performance record face a greater inspection burden.

• New regulations introducing lane rental schemes for companies wanting to carry out works on the most sensitive routes.

• The production of a good practice guide to help utilities and councils improve communication with road users and communities.

• Guidance for councils on drawing up an application for permit schemes.

• The development of a scoring system to improve data on companies' road works performance.

'The street works summit report and action plan' is available at http://tinyurl.com/y8psyn8 - pdf (DfT Publications; tel: 0300 123 1102). A consultation from the Dept of Transport is planned for later in the year.

SMALL PERSONAL ELECTRIC VEHICLES The Dept for Transport is seeking views on whether, in the light of new technologies, the law should now be changed to permit the use of small electric personal vehicles (EPVs) on public roads and cycle tracks. Currently, EPVs that do no comply with existing road traffic law may only be used on private land with the landowner's permission.

The consultation does not cover so-called mobility scooters, nor does it include consideration of the use of EPVs on pedestrian footways or footpaths. 'Electrical Personal Vehicle (EPV) Consultation' is available at http://tinyurl.com/yfc8bgv (DfT Publications; tel: 0300 123 1102). Responses by 30 March.

ELECTRICALLY ASSISTED PEDAL CYCLES (EAPCs)

Requirements for electrically assisted pedal cycles (EAPS) are currently specified in GB by the Electrically Powered Pedal Cycle (EAPC) Regulations 1983, which do not match the current European harmonising rules and EAPC standard. In order to provide greater clarity for retailers and consumers, and to avoid a legal challenge from Europe, the Dept for Transport has published proposed amendments to the British regulations, which maintain the current safety level while ensuring consistency with the European approach.

'Proposed amendments to the EAPC Regulations 1983' is available at http://tinyurl. com/ycmkpmo (DfT Publications; tel: 0300 123 1102). Responses by 30 March.

'TICKETLESS' TRANSPORT ON THE WAY Passengers on public transport in England's major cities will be able to travel without a paper ticket within five years, claims transport secretary, Lord Adonis, following the launch of the Dept for Transport's Smart and Integrated Ticketing Strategy.

To facilitate the introduction of the 'smart' ticketing that will replace paper tickets, the Off is making a £2.2m grant available towards the cost of implementing ITSO smart ticket schemes in each of England's nine largest urban areas. Each area will be required to submit spending plans for the funding early in 2010.

An extra 80% is to be paid to buses equipped with ITSO smart ticketing equipment from April 2010 and bus operators will also receive a further 20/0 increase in the Bus Service Operator Grant if they install GPS technology that allows them to track their buses.

ITSO Limited is an independent, not-for­profit organisation set up by the DfT and stakeholders to develop and maintain an open specification to facilitate interoperable smart ticketing. Allowing travellers to load up their tickets or credit in advance of travelling reduces queuing and could speed up boarding times by as much as 500%.

Smart tickets are also harder to replicate and can be 'killed' if they are lost or stolen. They can ensure travellers always pay the best ticket price available and allow operators to introduce their own loyalty schemes. Smart tickets can also link into other services, such as leisure centres, libraries, parking, benefit entitlement etc. A recent survey commissioned by DfT estimated that ITS() tickets have the potential to attract up to 250/o of current, non public transport users and increase some individuals' trip rates by more than 140/o.

'Smart and integrated ticketing strategy' is available at http://tinyurl.com/yb2shgf (DfT Publications; tel: 0300 123 1102). Further information about the Bus Service Operator Grant is at http://tinyurl.com/ydgjc7q.

VAT

GUIDANCE FOR USERS OF LABOUR PROVIDERS

It is good practice for all businesses to check the credibility and legitimacy of their suppliers, customers and supplies, warns HM Revenue & Customs, which has identified increasing problems with fraud and unpaid taxes when labour providers are used.

New guidance warns those who use labour supplied by a third party and those who supply, or make arrangements to supply, labour that they will lose their right to recover the Vat they incurred in transactions which they knew, or should have known, that the transactions they entered into were connected with Vat fraud. It goes on to identify the checks they need to carry out and the questions they should be asking in order to fulfil their due diligence.

'Use of labour providers: advice on due diligence' is available at http://tinyurl.com/ y9cqfm9 - pdf (HMRC National Advice Service; tel: 0845 010 9000).

GUIDANCE TO NEW VAT AND EXCISE 'WRONGDOING PENALTY'

A simple guide has been published by HM Revenue & Customs to explain how to understand and avoid the new penalties it will impose after 1 April 2010 on those who abuse the Vat and Excise tax systems. It also explains how the penalties will be calculated.

The penalties will apply where a person:-

• Issues an invoice that includes Vat which
the person is not entitled to charge.

• Issues goods on which excise duty had not been paid or deferred.

• Uses a product in a way that means more excise Duty should have been paid.

• Supplies a product at a lower rate of Duty

while knowing it will be used in a way that

requires a higher rate of Duty to be paid.

The two-page leaflet, 'Take care to avoid a Vat and excise wrongdoing penalty', is available at http://tinyurl.com/ya513ur - pdf (HMRC National Advice Service; tel: 0845 010 9000).

CROSS-BORDER VAT CHANGES 2010 Significant changes to the Vat rules relating to cross-border supplies of services came into force on 1 January, together with important changes to the intra-EU reporting regime for goods. Businesses supplying services to and/or receiving services from overseas businesses are affected, as are businesses supplying goods to other EC countries or wanting to reclaim Vat incurred in another EC country.

HM Revenue & Customs claims the changes simplify the current rules relating to cross-border supplies of services, make the recovery of Vat on purchases made in other EC countries more efficient and help counter Vat fraud. Initial guidance will be updated as outstanding issues are resolved.

Key changes are:-

• Place of Supply Rules: from 1 January, most services to business customers will be treated as supplied in the country where the business customer is established and the business customer will account for Vat under the reverse charge mechanism. Services to non-business customers remain

generally liable to Vat in the country of the supplier. Changes to the general rules will be phased in on 1 January 2010, 1 January 2011, 1 January 2013 and 1 January 2015.

• Time of Supply Rules: the time at which Vat must be accounted for under the reverse charge changed on 1 January and will be introduced by legislation later this year. HMRC is informally consulting with business groups to minimise the additional burden imposed by the new rules.

• New ESLs (European Sales List) for services and changes to ESLs for goods: Vat-registered UK businesses supplying services to EU businesses where the place of supply is the customer's country are required to complete ESLs for each calendar quarter, submitting paper returns within 14 days and electronic returns within 21 days. Businesses supplying goods to EU customers have been required to submit ESL returns within the same reduced time limit since 1 January. Where the value of the goods they supply exceeds £70,000 in the current quarter or any of the previous four quarters, monthly ESLs are required. The threshold will fall to £35,000 from 1 January 2012.

• Vat Refunds: The current paper-based system of Vat refunds was replaced by an electronic system on 1 January.

HMRC provides an overview of the changes and details of relevant guidance, legislation etc in 'Vat: Cross-border Vat changes 2010'. It is available at http://tinyurl.com/ybmv3ea (HMRC National Advice Service; tel: 0845 010 9000).

NEW POLICY ON LENNARTZ ACCOUNTING Use of so called 'Lennartz accounting' (under which organisations opt to treat goods used for both business and non-business purposes as wholly business assets) has been limited in the light of the European Court of Justice ruling on 12 February 2009 in the case of Vereniging Noordelijke Land-en Tuinbouw Organiste (VNLTO) v Staatssecretaris van Financien (C­515/07) (http://tinyurl.com/ylmd4aa).

VNLTO, which is an association promoting the interests of members trading in the agricultural sector, charges a membership fee which it largely uses to finance activities that promote members' interests. The ECJ held that even though these are not 'business' activities normally within the scope of Vat, 'business' in the Lennartz accounting context extends beyond economic activities that fall within the scope of Vat to include such activities.

Since 22 January, therefore, Lennartz accounting will only be available where:- a) goods are used in part for making supplies in the course of an economic activity that give a right to input Vat deduction and b) they are also used in part for the private purposes of the trader or his staff or, exceptionally, for other uses which are wholly outside the purpose of the taxpayer's enterprise or undertaking.

The implications of the ruling for businesses using Lennartz accounting are explained in HM Revenue & Customs Brief 02/10 'Vat: Lennartz accounting - new policy following ECJ case'

which is available at http://tinyurl.com/yh5a7bb (HMRC National Advice Service; tel: 0845 010 9000).

If you require this document in an alternative format please ring 01253 336036 or email accessability@fsb.org.uk