CONSUMER LAW
REGULATION OF CREDIT AND STORE CARDS
Options for change in four specific aspects of the way credit and store cards operate
have been published for consultation by the Dept for Business as the first step in
implementing the review of regulation that was one of the commitments made in the
White Paper -
The aim is to give consumers better control over their borrowing, while ensuring
any intervention is proportionate, transparent and targeted. The four aspects on
which views are sought are:-
• The allocation of payments;
• Minimum payments;
• Unsolicited credit limit increases;
• The re-
The options considered range from taking no action to banning one or more of the four activities.
'A better deal for consumers. Review of the regulation of credit and store cards: a consultation' (Urn 09/1392) is available at http://tinyurl.com/yg603t1 (DBIS Publications Orderline; tel: 0845 015 0010). Responses by 19 January 2010.
BOGUS DOORSTEP TRADERS
A campaign featuring the distribution of 7m leaflets written to help people stay in control when dealing with doorstep salespeople and have the confidence to say 'no', has been
launched by the Office of Fair Trading.
Called 'Your Doorstep, Your Decision', the campaign was supported by the simultaneous launch of YouGov research claiming that 3m people have fallen victim to a rogue doorstep trader, losing an average of £600 each. While people of all ages have been scammed, the elderly were the hardest hit, with people over 55 years losing almost £1,100 each on average.
For further information or advice, contact Consumer Direct on 08454 040506 or go to www.consumerdirect.gov.uk or a local authority Trading Standards Service.
FSA AND MPPI FIRMS AGREE CONSUMER MEASURES
Refunds of around £60m are included in an industry-
The agreement was reached after the industry responded to FSA concerns over recent
increases in premiums as well as reductions in "whatcustomers" are covered by their
policies. The industry has agreed the following measures, which reverse changes in
premiums or cover, putting affected customers back in the position they were in before
the policy was changed:-
• To proactively refund increases in premiums and reverse any reductions in cover made in 2009.
• Offer to reinstate policies where a customer had cancelled it within two months of an increase in premium or reduction in cover during 2009.
• Freeze premiums and cover for existing customers for at least the remainder of 2009.
• Amend MPPI contracts to ensure that all customers are made aware of the circumstances in which firms have the right to vary premiums and cover.
Further details of the agreement are set out in 'FSA and industry agreement for MPPI',
which is available at http://tinyurl.com/yzs2agf -
TIGHTENING THE REPOSSESSION RULES Mortgage lenders have to inform local authorities when repossession action is started against residents in their area so that councils can step in with advice and help for those most in need, under new court rules that came into force on 1 October to provide further protection for those struggling with mortgage arrears.
The Department for Communities has written to council leaders pointing out that this
help could include directing householders to free debt and legal advice, helping
them to apply for benefits such as Support for Mortgage Interest or, for the most
vulnerable households, assessing them for the Mortgage Rescue Scheme -
Anyone concerned about mortgage arrears should either go to www.direct.gov.uk/ mortgagehelp or contact the National Debtline on 0808 808 4000 or their local Citizens Advice Bureaux.
REMEDIES FOR FAULTY GOODS
UK consumers would retain their right to reject faulty goods and obtain a refund, under joint Law Commission and the Scottish Law Commission recommendations that challenge a draft European Consumer Sales Directive proposing repair or replacement as the first remedy. If adopted, this provision would require the UK to abolish the right to reject.
Currently, either UK or EU consumer law can be observed, creating confusion and complexity. The European Consumer Sales Directive is based on 'full harmonisation', which means that member states could not provide fewer or more rights than the proposed directive requires.
The law commissions -
• Clarifying the right to reject: Consumers would be required to exercise their right within 30 days in order to tackle current uncertainty over how long the right lasts.
• Moving from a repair or replacement to a refund: Consumers should be entitled to ask for a refund or price reduction after one failed repair or replacement; or where the goods have proved dangerous; or where the retailer's bad behaviour has undermined trust.
• The right to reject for minor defects. The law commissions reject the directive's proposal that consumers should not be entitled to a refund for 'minor' defects on the grounds that it could lead to unnecessary disputes.
• Rescinding a contract and the 'deduction for use' The law commissions agree with the directive's proposal to abolish the requirement for a consumer to make a 'deduction' for any use they may have had from a product when they rescind the contract.
• The proposed two-
continue to be those applying to general contractual claims in England, Scotland
and Wales, rather than being made subject to a proposed 2-
A summary of the Law Commissions' report is available at http://tinyurl.com/yd7kk9e
(pdf). The full report -
HOME BUYING MARKET RESEARCH
While the large majority of house sellers used a traditional estate agent, more than one third initially considered alternative routes such as selling privately, selling at auction or using online estate agents, according to research carried out by the Office of Fair Trading as part of its market study into home buying and selling.
Consumer satisfaction with the services provided by estate agents has improved since
the OFT survey of 2004, with 88% of both buyers and sellers -
On the question of fees received by estate agents for services provided to buyers
such as referrals for mortgages, surveys, legal advice etc, estate agents made recommendations
about the providers of such services to 650/o of buyers, 36% of whom went on to use
one or more of them. Overall, the OFT has published four research reports:-
A final report, which will be published in 2010, will look at, among other things, how new ways of buying and selling a home may develop in the future, whether there is scope to improve consumer protection enforcement, consumer awareness of potential pitfalls and ancillary services sold by estate agents.
REFORMS TO BANKRUPTCY PROCEDURES Individuals will be able to submit a bankruptcy application online or through the post, rather than in a court, under proposals that aim to make it faster and easier for people, who are overwhelmed by out of control debts, to seek relief through bankruptcy.
The proposals build on research by the courts and Insolvency Service that found debtors in some parts of England and Wales faced delays of up to three months between first contacting the court and the making of the bankruptcy order. Under the proposals, debtors will be able to file their applications directly to a decision maker, who is appointed by the Secretary of State and who will provide the applicant with a decision after carrying out rigorous checks. The proposals apply only to bankruptcy petitions made by the individual in debt. Petitions made by creditors will still have to be made to the court.
Additionally, the Dept for Business and Insolvency Service are also jointly proposing
to remove the discretionary ability that allows an Official Receiver to grant an
early discharge from bankruptcy before the usual 12-
'Consultation: reforming debtor petition: bankruptcy and early discharge from bankruptcy' is available at http://tinyurl.com/
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EMPLOYMENT
SELF-
While no changes have been made to the payment of Statutory Sick Pay (SSP) during
the swine flu pandemic, employers are being asked by the Dept of Health to help reduce
the burden on GPs by considering evidence other than a doctor's certificate as proof
of an employee's illness or by extending the self-
Under current rules, employees can self-
Further information from HM Revenue & Customs together with 'Guidance on sickness certification in response to the swine flu pandemic' from the Dept of Health, is available at http://tinyurl.com/y8uojcm (Dept of Health Customer Service Centre; tel: 020 7210 4850).
REVIEW OF DEFAULT RETIREMENT AGE Individuals and businesses have been invited to submit evidence on the following aspects of the
default retirement age, to inform the 2010 Dept for Business review:-
• The operation of the default retirement age (DRA) in practice.
• The reasons that businesses use mandatory retirement ages.
• The impact on businesses, individuals and the economy of raising or removing the DRA.
• The experience of businesses operating without a DRA.
• How could the costs of raising/lowering the DRA be mitigated and the benefits realised.
'DRA: call for evidence' is available at http:// tinyurl.com/yzxe771 (DBIS Public Enquiries; tel: 020 7215 5000). Responses by 10 February 2010.
PREVENTING WORKPLACE HARASSMENT AND VIOLENCE
Following a European agreement defining the different types of workplace harassment and violence, employers, unions and the
government have joined forces to promote new guidance that aims to give practical help and support to firms and their employees on preventing, identifying and managing such unacceptable behaviour.
The aim of the agreement is to:-
• Raise awareness and increase understanding on employers, workers and their representatives of workplace harassment and both internal and external third party violence.
• Provide employers, workers and their representatives with a framework of response.
'Preventing workplace harassment and violence -
IMPROVING MENTAL WELL-
Occupational health professionals should collaborate with, and offer advice and support
to, those working on government and Federation of Small Business programmes to help
small and medium sized businesses improve mental well-
excellence director for the National Institute for Health and Clinical Excellence (NICE).
New guidance published by NICE for those who have a direct or indirect role in promoting
well-
• Promote a culture of participation, equality and fairness based upon open communication and inclusion.
• Create an awareness and understanding of mental well-
• Ensure systems are in place for assessing and monitoring the mental well-
• If reasonably practical, provide employees with opportunities for flexible working according to their needs and aspirations in both their personal and working lives.
• Strengthen the role of line managers in promoting the mental well-
The guidance, 'Promoting mental wellbeing through productive and healthy working conditions: guidance for employees', is available at http://tinyurl.com/yk7xczq (NICE Enquiries; tel: 0845 003 7780).
NEW APPRENTICESHIP MODELS FOR SMALL BUSINESSES
Twelve organisations have won a share of £7m government funding to set up nine new
Apprentice Training Associations (ATAs) and three Group Training Associations (GTAs)
-
The Dept for Business claims the new model -
• GTAs, which have existed since the 1960s, help small businesses, which lack the capacity to undertake training on their own to share expertise with other employers and develop their own dedicated training.
Details of the models and of the wide range of apprenticeships available across industry are set out in a new brochure, 'The proven way to train your workforce', available at http://tiny url.com/yingwng (National Apprenticeship Service Enquiries; tel: 08000 150 600).
NEW RULES FOR MIGRANTS
A single clear concept of 'permission to be in the UK' will replace the five current
application categories available to migrants under measures in the Draft Immigration
Bill (Cm7666) (http://tinyurl.com/ykyfue3), which brings together recent changes
such as the introduction of e-
A new, temporary, time-
As part of a package to support the draft Bill the Home Office has issued a consultation, 'Simplifying immigration law: a new framework for immigration rules' which is available at http://tinyurl.com/yao34cm (pdf). Replies by 3 February 2010.
The Home Office simultaneously issued proposals for a new streamlined asylum support
system that includes:-
• Making the principles of the asylum system clear to all who apply, rewarding those who play by the rules and getting tough with those who don't.
• Streamlining the current complex system of support.
• Doing more to ensure the system works towards the return of those found to have no right to be in the UK.
'Reforming asylum support: effective support for those with protection needs' is available at http://tinyurl.com/ykmnhqf (pdf). Replies by 4 February 2010.
The Home Office has also accepted the Migration Advisory Committee's proposals for
a revised shortage occupation list, which sets out the skilled occupations where
the government considers there are shortages so that it is sensible for vacancies
to be filled by migrant workers from outside the EEA. The revised list -
SHARING INFORMATION ON ENFORCING WORKPLACE RIGHTS
A number of departments and agencies share responsibility for enforcing the basic
rights and protections that protect all UK workers -
example, HM Revenue & Customs enforces the National Minimum Wage, the Health & Safety Executive and local authorities enforce working time regulations and the Dept for Business' Employment Agency Standards Inspectorate enforces special rules governing the conduct of employment agencies.
The necessity for these bodies to collaborate more closely was highlighted in a 2008
report from the government's Vulnerable Worker Enforcement Forum. The proposals which
followed would create a Legislative Reform Order (LRO) that would remove legal barriers
to such collaboration by amending relevant legislation and introducing a limited
number of information-
In addition to seeking views on the strength of the case for such gateways, the DBIS
is seeking views on whether the proposals meet the special pre-
'Information-
ENVIRONMENT
REMOVING PLANNING BARRIERS TO RENEWABLE TECHNOLOGIES
Homeowners will be able to install their own on-
As well as contributing to national carbon reduction targets, the DCLG claims a well-
The proposals -
Wind turbines up to 15m high will be permitted in areas such as industrial estates and agricultural areas where they would not become a nuisance to residents.
'Permitted development rights for small-
Equipment and its installers will be expected to meet the standards of the Microgeneration Certification Scheme, which aims to ensure the quality and reliability of installations. Further details of the Scheme are available at http://tinyurl.com/ya5baof (MCS Helpdesk; tel: 020 7090 1082).
GUIDELINES ON TACKLING GREENHOUSE GAS EMISSIONS
New guidance that aims to help businesses and other organisations to measure and report their current carbon emissions and set reduction targets has been published jointly by Defra and DECC (Department of Energy & Climate Change), alongside advice on what it means to be carbon neutral.
Based on the Greenhouse Gas Protocol, which is the internationally recognised standard
for corporate accounting and reporting of greenhouse gas emissions, the guidance
is suitable for all sizes of businesses and organisations. Reporting on emissions
is voluntary and organisations using the guidance will not be required to submit
reports or make data available to government. The guidance on carbon neutrality includes
a three-
'Guidance on how to measure and report your greenhouse gas emissions' is available
at http://tinyurl.com/yfpepw4 (pdf). A complementary brochure entitled 'Small business
user guide: guidance on how to measure and report your carbon emissions' is available
at http://tinyurl.com/ykt6fdk -
REVISED WEEE REGULATIONS
Updated regulations that aim to streamline the UK's system for collection and treatment
of waste electrical and electronic equipment ('WEEE Regulations') and reduce administrative
burdens were brought into force on 1 January 2010 by The Waste Electrical and Electronic
Equipment (Amendment) Regulations 2009 / 2957, ISBN 0 11 148730 3, TSO, £5.50 (http://tinyurl.com/ykeb66q
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Key changes include:-
• A revised Producer Compliance Scheme (PCS) approval process, under which any scheme
applying for approval will be subject to open-
• Revised approval criteria for Authorised Treatment Facilities (AATEs) and exporters (AEs) include a requirement that the facility can meet the reprocessing targets contained in the Regulations.
• AATF or AE now issue evidence on the tonnage of WEEE received.
• Streamlined data reporting requires PCSs,
AATFs and AEs to provide the agencies with more focused and relevant data.
The Distributor Take-
FARMING, FISHING a FOOD
SAFE USE OF EGGS IN CATERING
Online guidance published by the Food Standards Agency on the safe use of eggs in catering covers handling, storing and cooking
eggs, using pasteurised egg and catering for vulnerable groups. The guidance includes tips on 'pooling' eggs, where caterers break lots of eggs into a bowl and use the mix throughout the day.
The guidance reminds caterers that eggs may contain salmonella bacteria inside or
on their shells and that the two main things to be avoided are:-
• Bacteria spreading by cross contamination ie. from eggs onto other foods, hands, work surfaces, utensils;
• Bacteria surviving because eggs are not properly cooked.
'Eggs: advice for caterers' is available at http://tinyurl.com/yjryok8 (Food Standards Agency Publications; tel: 0845 606 0667).
RE-
The average amount of energy from foods needed to maintain health (the Estimated
Average Requirement -
While confirming the new draft requirements are likely to provide a more accurate description of the current situation regarding how people balance their energy intake and physical activity, SACN stresses that people do not need to increase their calorie intake. It is clear that many people already take in more calories than they need, given the high and increasing number of obese people in the UK.
'SACN energy requirements working group draft report' is available at http://tinyurl.com/ yjcr7zw (SACN Secretariat, Food Standards Agency; tel: 020 7276 8928). Comments are required on the scientific content of the report only by 11 February 2010.
FINANCIAL AND LEGAL
MODERNISING STREET TRADING LAWS Following concerns that local authorities need tougher powers to tackle illegal street trading and pedlary, the Dept for Business is seeking views on proposals to modernise the existing laws while still allowing legitimate street traders and pedlars to go about their business.
Based on research carried out by Durham University, the key proposals include:-
• Modernising the Pedlars Act 1871, which includes the system for certifying pedlars.
The proposals seek views on whether local authorities rather than police should grant
certificates and whether locally issued certificates should be recognised nationally.
The options include creating a local authority-
• A more flexible enforcement regime, including fixed penalty notices and restriction of pedlar activity in specific areas.
• New draft guidance on how the current regime should be applied.
• Removing the Secretary of State as the final point of appeal for some street trading appeals in London.
The consultation, 'Street trading and pedlary laws: a joint consultation on modernising street trading and pedlar legislation and on draft guidance on the current regime' (Urn 09/1074), is available at http://tinyurl.com/y95lgze (DBIS Publications Orderline; tel: 0845 015 0010). Responses by 29 January 2010.
NEW RATEABLE VALUES
More than 1m businesses in England have now been informed by the Valuation Office
that the rates bills they receive in March 2010 will be lower than their current
rates. A £2bn relief scheme that will be self-
Small businesses are also being encouraged to apply for small business rate relief, which can help provide up to 500/o off their bills.
Overall, the Department of Communities claims that, as a result of revaluation and the relief arrangements, lm businesses will see an average decrease of £770 in 2010/11. The government will collect no additional revenue as a result of the revaluation.
The 'Business rates information letter' to local authorities is available at http://tinyurl.com/yhywzd2
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MINOR BUILDING REGULATIONS AMENDMENTS POSTPONED Implementation of the Building and Approved Inspectors (Amendment) Regulations 2009/1219 and the Building (Amendment No 2) Regulations 2009/2397 has been postponed
from 1 October 2009 to 6 April 2010 by The Building and Approved Inspectors (Amendment)
(No 2) Regulations 2009 / 2465 (http://tinyurl. com/ylh5nfa -
In addition to highlighting these amendments, the Department of Communities Circular 10/2009 also draws attention to corresponding changes to related transitional provisions and announces that Approved Document G (sanitation, hot water safety and water efficiency) will also not come into force until 6 April 2010.
DCLG Circular 10/2009 is available at http://tinyurl.com/y8ecu8r (DCLG Public Enquiries: tel: 0303 444 0000).
MAJOR REFORMS TO THE UK MORTGAGE MARKET
After 18 months of major upheaval in the UK mortgage market, the Financial Services Authority has proposed a series of reforms to address the issues identified as causing great financial distress for some borrowers and, in particular, to curtail irresponsible lending and ensure that firms only lend to people who can afford to pay the money back.
Published in the mortgage market review discussion paper, the proposals include:-
• Imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer's ability to pay.
• Banning 'self-
• Banning the sale of products that contain certain toxic combinations of characteristics that put borrowers at risk.
• Banning arrears charges when a borrower is already repaying and ensuring firms do not profit from people in arrears.
• Requiring all mortgage advisers to be fel personally accountable to the FSA.
• Calling for the FSA's scope to cover buy-
to-
The FSA stresses that it has not ruled out further change -
'Mortgage market review' (09/3) is available at http://tinyurl.com/yj3kq9a -
FSA TAKES OVER REGULATION OF 'DAY-
Regulation of the day-
Among the major benefits that FSA claims will be brought to consumers by its new
regime are:-
• Prospective customers must be provided with full information on the service or product that interests them.
• Advance notice of changes to key terms and conditions must be provided. For current and instant access accounts,
available at http://tinyurl.com/2bvwz -
customers must be given at least two months prior notice of any disadvantageous interest rate changes.
• Where a customer claims an unauthorised transaction has taken place, the bank must refund the amount unless they can show some good reason why they should investigate the claim.
• For current and instant access accounts, consumers will now begin receiving money transferred into their account from the moment the bank receives the funds.
• If a debit is made from a customer's credit or debit card, or via a direct debit, and it is more than they could reasonably have expected, the entire amount must be refunded by the bank unless they can provide evidence to justify refusing the refund within 10 days.
The FSA has also taken over regulation of money remitters, whose customers now have the protection of the Financial Ombudsman Service. Remitters will have to provide more information to their customers and clear
payments more quickly where transfers are made within the European Economic Area.
'The FSA policy statement, 'Regulating retail banking conduct of business' (09/6), is available at http://tinyurl.com/yenqdk3 (pdf). A new guide for consumers on bank accounts is at http://tiny url.com/y9envmx (pdf). A consumer guide for credit cards is at http://tinyurl.com/ ylasfqv (pdf). (FSA Publications; tel: 0845 608 2372.)
NEW SYSTEM FOR CALCULATING FSA REGULATORY FEES
All regulated firms will be required to pay a minimum fee of approximately £1,000 to cover the basic cost of being regulated by the Financial Services Authority, with variable additional fees over and above this basic increasing in direct relation to the firm's size, under proposals that aim to ensure that the FSA sets its fees in a fair way that is also transparent and easy to understand. Only smaller Credit Unions, which will continue to pay current minimum fees of £160 and £540, depending on size, are exempt from the minimum fee.
The FSA fees calculator is available at http://tinyurl.com/yalvmep to enable firms to calculate how the proposals affect their costs.
Depending on the outcome of the consultation, the FSA plans to consult in February 2010 on fee levels for 2010/11 using this new fee model.
The consultation document also covers various issues that have emerged over the past
year and provides advance notice of four topics on which FSA will be consulting in
due course:-
• Money guidance service: the government intends establishing an independent consumer education and information authority.
• Passporting: the discounts applied to inward passporting EEA and Treaty firms with branches in the UK.
• Credit rating agencies: proposals for fees to recover the costs of supervising and registering Credit Rating Agencies under the EU Regulation for Credit Rating Agencies.
• Electronic Money Directive: the EU's second Electronic Money Directive should be published in 2010 for implementation by Spring 2011.
• The FSCS (Financial Services Compensation Scheme) funding review -
'Regulatory fees and levies: Policy proposals for 2010/11' (CP09/26) is available
at http://tinyurl.com/ydsqx8w -
REVIEW OF DEBT MANAGEMENT PRACTICES
A review of levels of compliance in the debt management industry has been launched by the Office of Fair Trading in order to gain a deeper insight into the evolving practices of debt management firms since the last review in November 2003. The findings will inform any subsequent revision of the OFT's debt management guidance and could also lead to the OFT taking formal action to stop any identified consumer harm.
The review will include a sweep of online debt management advertising, an online form for consumers wishing to complain about a licensee and a questionnaire to licensees involved in debt management. A report will be published in 2010.
Since April 2008, the OFT has taken 24 formal enforcement actions either to obtain undertakings, impose requirements or revoke credit licences held by debt management businesses.
Further information on the review and questionnaires is available at http://tinyurl. com/dlzlaf. The questionnaires should be completed and returned by 25 February 2010. 'Debt management guidance' (Oft366) is
MICRO-
Micro businesses who buy insurance would be treated in the same way as consumers
for the purposes of pre-
Following a series of consultations that commenced in July 2007, the law commissions
are currently drafting a bill to reform consumer insurance law. It intends developing
its policy on micro-
CRIMINAL RECORDS BUREAU REDUCES FEES
The fee charged by the Criminal Records Bureau for a Standard Disclosure was reduced from £31 to £26 with effect from 1 October, because of the increase in the volume of applications after 12 October, when the Vetting and Barring Scheme came into force. Otherwise, fees charged by the agency remained unchanged for the third year running, with checks for volunteers continuing to be free of charge.
In addition to working with the Home Office to develop the systems and processes
for the Vetting and Barring Scheme, the CRB's Annual Report and Accounts and Business
has:-
• Launched the first electronic application channel, e-
• Extended the range of jobs, posts and positions that are entitled to a CRB check.
• Increased customer satisfaction rates to an all-
• Prevented 18,000 unsuitable people
gaining access to children and vulnerable
adults as a direct result of a CRB check.
'Criminal Records Bureau Fees and Service Standards' is available at http://tinyurl.com/ ykry96k (CRB General Enquiries; tel: 0870 90 90 811).
TOUGHER PENALTIES FOR MISUSE OF PERSONAL DATA?
Those found guilty of offences relating to the 'knowing or reckless' misuse of personal data could face a prison sentence, under Ministry of Justice proposals to toughen the current maximum penalty of a £5,000 fine in a magistrates court and an unlimited fine in the Crown Court.
Under the proposals, the maximum penalty for cases heard in the Crown Court would be two years imprisonment, while it would be 12 months for cases heard in a magistrate's court. The power to introduce custodial sentences was introduced in the Criminal Justice and Immigration Act 2008.
'Knowing or reckless misuse of personal data: introducing custodial sentences' (CP22/09)
is available at http://tinyurl.com/yhb5n78 -
SOCIAL NETWORKS AND CYBERCRIME The increasing popularity of online social networks such as Facebook, MySpace and Twitter has resulted in a rise in new forms of cybercrime, warns the Fraud Advisory Panel (FAP).
Cybercriminals aim to steal a person's bank account or credit card details or use
their computer in an attack on a third party and the FAP -
• Virus infection: links and files you share with other users are exploited to spread
viruses and spyware. Trojan viruses -
• Identity fraud: fraudsters collect personal details available online and use them to buy goods/services etc.
• Social engineering: using live chat facilities on social networking sites to try and persuade you to disclose personal information.
• Impersonation: a fraudster asks your
friends for money in your name.
• Money Laundering: the proceeds of illegal activities are used to buy goods or services from you online.
• Pyramid schemes: online schemes that cost a fee to join and offer commission for recruiting new members.
Factsheets listing the steps businesses and individuals can take to protect themselves
are available from FAP at http://tinyurl.com/ ygh3ua7. Business factsheets include:-
COMPULSORY PURCHASE POWERS Proposals to clarify the conditions that the Homes and Communities Agency (HCA) should take into account when submitting a compulsory purchase order (CPO) have been published by the Dept for Communities.
The proposals involve replacing Appendix C of the ODPM Circular 06/2004, 'Compulsory Purchase and the Crichel Down Rules'. The DCLG consultation seeks views on a proposed replacement draft, which also aims to clarify the secretary of state's considerations on whether to confirm or reject the HCA application for a CPO.
The power to acquire land either by agreement or compulsorily is central to the functions of the HCA, which was launched on 1 December 2008 to bring housing and regeneration into one national agency. Currently, Appendix C relates to CPOs made by one of its predecessors, English Partnerships.
'Replacement of appendix C of the ODPM
Circular 06/2004 "Compulsory purchase and the
Crichel Down rules" -
NEW ECONOMIC RECOVERY POWERS FOR COUNCILS AND RDAs
An action plan to engineer economic recovery in each region will be developed jointly
by the Regional Development Agencies and a new local authority leaders' board, under
new powers introduced by the Local Democracy, Economic Development and Construction
Act 2009 (Ch 20), ISBN 0 10 542009 5, TSO, £22 (http://tinyurl.com/yjk8jqf -
The Act includes a range of provisions that aim to strengthen the democratic role
of councils to support local people and businesses to rebuild the local economy,
increase jobs and skills, tackle housing shortages and improve infrastructure. They
include:-
• A new requirement for local authorities to undertake an economic assessment of their area.
• New powers to create 'Economic Prosperity Boards'.
• The provision of a further option for local authorities to work together through the creation of Multi Area Agreements (MAAs) with statutory duties.
• New powers for councils to set up mutual insurance companies.
• A new duty on councils to promote local democracy.
• A requirement for councils to respond to local petitions on issues of major importance.
• The provision of funding for a National Tenant Voice.
• The appointment of a scrutiny officer and a broadening of the scope of what joint overview and scrutiny committees can consider.
HEALTH & SAFETY
NEW HEALTH AND SAFETY RISK ASSESSMENT TOOLS
900/a of users who tested a new electronic template found that it helped them get their health and safety arrangements in place on average twice as quickly, claims the Health & Safety Executive, which developed the template for small and medium sized enterprises (SMEs). Almost 75% of businesses that took part in the tests also said that the example risk assessments provided via the template were very good or excellent.
The electronic template combines the requirements of a health and safety policy,
risk assessment and written record of health and safety arrangements into one document.
It is available, together with worked examples and a simple guide -
EU ARTIFICIAL LIGHT REGULATIONS
Draft regulations implementing the EU Physical Agents (Artificial Optical Radiation) Directive (2006/25/EC) that sets and harmonises standards in EU member states to protect the eyes and skin of workers from UV radiation, powerful lasers and other intense sources of light have been published by the Health & Safety Executive.
Workers in the UK are generally already well protected, with the majority of businesses knowing how to manage these risks effectively, and the draft regulations aim to ensure that businesses do not face unnecessary additional burdens. Office lights, photocopiers, computers and other common sources of light in the workplace will not be affected and the regulations will impact on a small number of businesses, for which HSE will produce guidance.
'A consultative document on legislation to implement the Physical Agents (Artificial
Optical Radiation) Directive' (CD227) is available at http://tinyurl.com/y96vw5x
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TAXATION
TAX INCENTIVES FOR BUSINESS GIVING The tax incentives available to businesses that give to charitable causes are listed in a new guide published by the Cabinet Office.
'A guide to giving for business' explains the different ways in which the private sector can contribute, including giving money, donating shares or equipment and seconding/volunteering employees to work with a third sector organisation. It also stresses benefits, such as staff development and motivation, which organisations derive from supporting their communities.
The guide is available at http://tinyurl.com/ yccjqyl -
RECORD NUMBERS OF 'SCAM TAX REFUND' EMAILS
A record 83,000 scam emails offering fake tax refunds (known as 'phishing') were reported to HM Revenue & Customs in September, with an unprecedented 10,000 reported in one day. The emails tell recipients they are due a tax refund and ask for bank account or credit card details. The latest version of the scam operates from
various websites, which change their domain name every 20 minutes.
HMRC has co-
2009/10 EMPLOYER ANNUAL RETURNS MUST BE FILED ONLINE
With virtually all employers required under the PAYE regulations introduced on 13 August 2009 to file their Employer Annual returns (P35 and P14s) online from the 2009/10 tax year onwards, the Employer Helpbook E10 'Finishing the tax year up to 5 April 2010' will not contain any guidance about online filing and is only relevant to the few exempt employers who wish to continue to file on paper. HM Revenue & Customs has written to employers explaining online filing and also written to VAT traders regarding the return of Vat to 17.5% on 1 January 2010.
Details of those employers who have the option of filing on paper and those who are specifically excluded from online filing are available, together with guidance on filing annual returns on paper, at http://tinyurl.com/ yh515tu (HMRC Helpdesk; tel: 0845 010 9000).
(— The Income Tax (PAYE) (Amendment No 2) Regulations 2009 / 2029, http://tinyurl.com/
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GUIDANCE TO IMPORTING/EXPORTING PROCEDURES
An information pack designed specifically to give those traders who are just starting to import and/or export a better understanding of the procedures involved, has been published by HM Revenue a Customs. In addition to separate sections dealing with import and export, the pack covers transit systems and explains Duty Relief Procedures.
'Guide to importing and exporting: Breaking down the barriers' is available at http://
tinyurl.com/27t654 -
ASSOCIATED COMPANY RULES
Options for reforming the 'associated
companies rules', which determine whether a small company should be associated with other small companies when deciding if it qualifies for Small Company Relief (SCR) from corporation tax, have been published by HM Treasury.
The SCR is set at 21% in 2009/10, compared with the main rate of CT at 28%. SCR currently applies to small companies whose annual profits do not exceed £300,000 (the 'lower relevant maximum amount'), while companies with profits between £300,000 and £1.5m (the 'upper relevant maximum amount') are liable for the main rate of CT, with a marginal relief. When a company is associated with other companies, however, the lower and upper relevant maximum amounts are reduced accordingly.
HMT's 'Associated Company Rules Consultation' seeks views on whether companies would
benefit from rules that provide a more targeted and objective test on whether companies
controlled by different people/persons are fragments of a wider economic whole as
a result of their interdependencies. It is available at http://tinyurl.com/yz4tm8z
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TELECOMMUNICATIONS
PENALTIES FOR PERSISTENTLY MAKING SILENT CALLS
A maximum fine of £2m could be imposed on call centres which cause nuisance or distress to consumers by persistently making silent or abandoned calls, under proposals published for consultation by the Dept for Business.
The current maximum fine of £50,000 would be increased to either £250,000, £500,000, £1 m or £2m under the proposals, which reflect Ofcom research that found 49% of adults felt 'very inconvenienced' by silent calls and 350/o of over 65s had received silent calls in the six months prior to June 2009.
'Raising the maximum penalty for persistent misuse of an electronic communications network or service to tackle the problem of silent and abandoned calls to consumers: a consultation document (Urn 09/1385)' is available at http://tinyurl.com/yzsduvb (DBIS Publications Orderline; tel: 0845 015 0010). Responses by 25 January 2010.
GUIDE TO CALL COSTS
A simple guide, designed to help consumers understand the many different types of phone numbers in use today, what they are used for and how much it will cost to call them on a BT landline, has been published by Ofcom.
The numbers covered range from geographic numbers beginning 01 or 02, through 03
numbers, which many companies now use as an alternative to more expensive 08 numbers,
030 numbers used by not-
'Number crunching: how much does a phone call really cost?' is available at http://tinyurl.
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SCAM TELEPHONE CALLS WARNING The Ministry of Justice is warning of a telephone scam, in which callers claiming to be from government, the Office of Fair Trading, a legitimate claims management company or a high street bank claim the consumer could receive repayment of bank charges or some other payment if they themselves first make an up front payment or provide personal information such as bank account details.
Consumers are urged to stay vigilant and quickly report suspicious approaches to the Moj Claims Management Helpline on 0333 200 0110. Further advice is also available at www.consumerdirect.gov.uk/watch_out/.
THE WIRELESS RADIO SPECTRUM MODERNISATION PROGRAMME
Proposals that aim to support delivery of the next generation of mobile telecommunications services by liberalising the licence regime for the 900MHz and 1800MHz spectrum have been published by the Independent Spectrum Broker (ISB).
Under the proposals, which are set out in a draft direction to Ofcom, the licences would be valid indefinitely and subject to annual licence fees that reflect their market value at the time. They would also be tradeable.
The proposals update an interim report published by the ISB in May 2009 on the scope for a voluntary spectrum trading solution. The ISB was created by the Dept for Business to help it achieve 'Digital Britain objectives' to support and promote the development of 2G telecommunications services.
'Digital Britain Report: a consultation on a direction to Ofcom to implement the wireless radio spectrum modernisation programme' (Urn 09/1326) is available at http://tinyurl.com/ ygqdxvh (DBIS Publications Orderline; tel: 0845 015 0010). Responses by 8 January 2010.
NEW 'WHITE SPACE' WIRELESS TECHNOLOGY
The potential of a new technology that could wirelessly link up different devices by searching out unoccupied radio waves called 'white spaces' between TV channels to transmit and receive wireless signals, is the subject of an Ofcom discussion document.
Compared with other technologies such as Bluetooth and WiFi, white space devices
use lower frequencies traditionally reserved for TV. As signals at these frequencies
travel further and more easily through walls, white space technology will potentially
allow innovations such as:-
White space technology is still at least three years away from commercial use and the discussion paper, 'Digital dividend: geolocation for cognitive access', focuses on the use of a 'geolocation database' to help determine whether white space devices can operate without interfering with the TV and otherwireless technologies with which they would share locations. The databases would contain live information about which frequencies are free to use.
'Digital dividend: geolocation for cognitive access' is available at http://tinyurl.com/yg7uder
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TRANSPORT
VEHICLE SCRAPPAGE SCHEME UPDATE The Vehicle Scrappage Scheme (VSS) will now cover up to 400,000 vehicles and run either until the end of February 2010 or until all the government funding has been used, following the Department of Business' decision to allocate another £100m to the scheme which was launched in 18 May 2009, bringing the scheme allocation to £400m.
Under the scheme, the government and vehicle manufacturers each contribute £1,000 to allow dealers to give motorists £2,000 or more towards a new vehicle if they trade in a car or van for scrap. To be eligible under the extended scheme, scrap cars must have been first registered before 28 February 2000 for cars and before 28 February 2002 for vans.
Full details of the VSS are available at http://tinyurl.com/Isx5kb (Dept for Business Public Enquiries; tel: 020 7215 5000).
NEW 'MEMORABLE' VEHICLE TAX LINE Motorists can now tax their vehicles 24/7 via a
new memorable 0300 number that takes less than 4 minutes to use. Launched by the
Driver & Vehicle Licensing Agency in response to customer demand, the number -
Since 1 August 2009, DVLA has charged 0870 calls at the geographical rate and the move to the cheaper 0300 numbers completes the switch over. Calls to 0300 / 0333 cost the same as standard landline numbers (eg 01 / 02) even from a mobile phone but DVLA advises users to check the exact cost with their providers.
PRIVATE HIRE VEHICLES CAN PROVIDE LOCAL BUS SERVICES
Owners of private hire vehicles (PHVs) can now use their vehicles to provide bus services, under new regulations that came into force on 27 November in England (outside London), Wales and Scotland. "The regulations bring PHV owners in line with licensed taxi owners, who have been able to run bus services since 1986.
Transport for London is responsible for making any regulations governing PHV buses in London.
*The Local Services (Operation by Licensed Hire Cars) Regulations 2009 / 2863, ISBN
0 11 148693 1, TSO, £4 (http://tinyurl.com/yhd6m5k -
DRIVER TESTING, TRAINING EXAMINATION AND LICENSING
Proposals to implement new requirements for motorcycle riders, lorry and bus drivers
and drivers who want to tow medium-
• Motorcyclists: The current two categories of motorbike will be replaced by three:-
• Trailer towing: Under the proposals, it will be permissible to tow a slightly larger trailer on a normal car driving licence if drivers take a further test or undertake training.
• Licence renewals for bus and lorry drivers: From 2013, under-
• Driving examiners: Compulsory initial qualification, periodic training and quality assurance checks will be required for driving examiners.
'Driver testing, training, examining and licensing: Implementing new European Union
requirements' is available at http://tinyurl.com/ yz3n5j7 -
STREET WORKS QUALIFICATIONS
A requirement that qualified street works supervisors and operatives must be re-
A guidance note had been published by the Dept for Transport to help utility companies,
their contractors, local authorities and training providers better understand how
the new regulations will affect them. 'New Roads and Street Works Act 1991: Street
works qualifications: how to qualify, register and reregister' is available at http://tinyurl.com/
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COMPULSORY LICENSING OF WHEEL CLAMPERS
It will be mandatory for all wheel clamping businesses to be licensed within the terms of a strict code of conduct, while motorists who feel unfairly penalised will have recourse to an independent appeals process, under key proposals for a tough new wheel clamping regime set out in the Crime and Security Bill.
Any company which breaches the terms of their licence could lose the right to practice
and face a substantial fine or up to five years in prison, under the proposals, which have been drawn up by the Home Office following discussions with motoring groups and the wheel clamping industry.
Currently, any individual undertaking wheel clamping must hold a front-
'Crime and Security Bill' (HoC3), together with Explanatory Notes, is available at http://tinyurl.com/yeejv5o (The Stationery Office; tel: 0870 600 5522).
VAT
VAT LIABILITY OF PROPERTY SERVICE CHARGES
Where property leasing and letting include the provision of charges for cleaning
and other services, HM Revenue & Customs treats the rent and service charges as a
single supply -
HMRC has stated that this policy has not been changed by the ECJ judgment in the
case of RLRE Tellmer (C-
HMRC's policy is fully explained in Revenue & Customs Brief 67/09, 'Vat -
VAT TREATMENT OF POSTAL SERVICES EU law provides a mandatory exemption from Vat for postal supplies made by the public postal services. While the European Court of Justice confirmed in the case of TNT Post UK Ltd** that Royal Mail is the only UK postal service eligible for this exemption, it also ruled that the exemption does not apply to those
supplies made by Royal Mail for which the terms have been individually negotiated. Some supplies made by Royal Mail and currently treated as exempt from Vat will therefore become liable for Vat.
HM Revenue & Customs and Royal Mail are working together to establish which services will be affected and will issue guidance once their discussions are complete. In the meantime, all Royal Mail postal services will remain Vat exempt.
**TNT Post UK Ltd v Commissioners of HMRC (C-
VAT LIABILITY OF 'ELECTRONIC LOTTERY TERMINALS'
Contrary to the claims of the manufacturers, HM Revenue & Customs considers that
amusement machines marketed as 'electronic lottery machines' fall within the definitions
of a gaming machine set out in section 23 of the Vat Act 1994 and section 25 of the
Betting and Gaming Duties Act 1981. Income from them is therefore standard-
HMRC Brief 70/09 explains that where machines are being operated without an AMLD licence, the operators should apply for a licence to cover future play and will avoid a penalty by including a voluntary declaration that they have provided a gaming machine for play for a specific period without a valid licence. The AML application is available at http://tinyurl.com/ ygyakft (pdf).
Under-
exceed £10,000 or b) if the net value of errors is between £10,000 and £50,000 but does not exceed 10/o of the net outputs Vat return declaration due for the return period in which the errors are discovered.
Operators who do not agree that their electronic lottery terminal is a gaming machine should call the HMRC helpline on 0845 010 9000. HMRC Brief 70/09 is available at http://tinyurl.com/ycv2bqp.