The soaring cost of goods and services have pushed the UK inflation rate to its highest level in almost 30 years, a major study has revealed.
Cost of living crisis: UK inflation rises to 30-year high
Business Blog
Claim up to £5,000 towards the cost of cloud accounting software under new Help to Grow: Digital scheme
Small businesses could get up to £5,000 to pay for cloud accounting software under the Help to Grow: Digital scheme, it has been announced.
Consultation on global minimum corporation tax for large multinationals
The Government has launched a consultation on how a worldwide 15 per cent minimum corporation tax can be implemented domestically, in a move designed to tackle avoidance and ensure a more level playing field for UK businesses.
Businesses that do not use MTD for VAT make more errors than those that do, study reveals
Small and medium-sized enterprises (SMEs) that do not use Making Tax Digital (MTD) for VAT make more errors than those that do, a major study has revealed.
HMRC’s guidance on reasonable excuses for late tax payments updated
It should perhaps be no surprise given the circumstances of the pandemic that individuals and businesses might have incurred penalties for late tax payments.
HMRC hikes late payment interest rates
The rate of interest charged on late payments by HM Revenue & Customs (HMRC) has increased, it has been announced.
Did you open presents or submit tax returns on Christmas?
According to HM Revenue & Customs (HMRC), over 31,000 Self Assessment tax returns were submitted between Christmas Eve and Boxing Day.
Outdoor markets and marquees to be made permanent in boost for hospitality sector
Temporary legislation permitting outdoor markets and marquees will be made permanent, the Government has confirmed.
How to protect clients from “Friday Afternoon Fraud”
“Friday afternoon fraud” is costing homebuyers millions of pounds every year, the Law Society for England and Wales has warned.
The notice comes as reports of payment diversion fraud soared in the year to September 2021.
Payment diversion fraud – also known as Friday afternoon, business email compromise, or mandate fraud – involves criminals contacting a business or customer pretending to be an employee from a company that the victim has been dealing with.
In the legal profession, this may involve a fraudster creating a fake email address similar to a genuine law firm’s and asking a homebuyer to make payment for a house.
As the client was expecting to make a payment, they are often tricked into handing over tens or even hundreds of thousands of pounds to a bank account controlled by the criminal.
According to the latest data available, there were more than 4,600 individual cases of payment diversion fraud reported to Action Fraud in the 12 months to September 2021.
The individual loss per victim was a jaw-dropping £30,000.
Commenting on the figures, Law Society president I. Stephanie Boyce said: “We are urging our members to share these flyers with their clients in order to help protect them from these highly-sophisticated and cruel schemes.
“These frauds can involve huge sums of money and have a devastating lifelong impact on the home buyer and their personal finances. Solicitors and their clients can all play a part in making such crimes more difficult for the criminals.”
Jon Shilland, fraud threat lead at the National Economic Crime Centre, added: “Payment diversion fraud is increasing and it is vital to be alive to the threat as criminals are targeting home-buyers due to the scale of the transactions.
“Whenever a client is making a payment to their solicitor for a house purchase, they should be highly suspicious of any change in account details or new instructions. Remind them to always check with a trusted known contact, and if they have any doubt not to transfer the money.”
How can I protect clients from payment diversion fraud?
Action Fraud, the UK’s national fraud and cyber crime reporting centre, warns individuals to “stop, challenge, and protect”:
- STOP: Taking a moment to stop and think before parting with your money or information could keep you safe.
- CHALLENGE: Could it be fake? It’s ok to reject, refuse or ignore any requests for your financial or personal details. Only criminals will try to rush or panic you.
- PROTECT: Contact your bank immediatelyif you think you’ve fallen for a scam, don’t feel ashamed or embarrassed – you are not alone.
For help and advice with related matters, please get in touch with our legal finance team today.
Fifth Anti-Money Laundering Directive: Solicitors set to benefit from new digital reporting service
Solicitors required to report discrepancies in people with significant control (PSC) information to Companies House will benefit from an improved online service.
The changes will affect professional firms under the scope of the Fifth Anti-Money Laundering Directive (5MLD).
Companies have been required to identify and record the details of the people who own or control their company – known as beneficial owners – since 2016.
But under anti-money laundering rules, obliged entities – such as solicitors and conveyancers – are ordered to carry out customer due diligence and report discrepancies in PSC information to Companies House.
It is a legal requirement to inform Companies House that there is a material difference between the information that they hold about a PSC of a company (including limited liability partnerships and Scottish limited or qualifying partnerships) and the information that’s on the PSC register.
Companies House says the new digital service will make this process both “faster and easier”.
“While our previous reporting tool has allowed obliged entities to submit discrepancy reports, the new service will drastically improve the user journey and quality of information reported,” said Lee Robins, Enforcement Service Manager at Companies House.
“All discrepancies investigated and data corrected directly improves the quality and integrity of the PSC register. This data is crucial in the wider challenge of tackling economic crime.”
Earlier this year, it was revealed that the maximum fine for failing to comply with anti-money laundering (AML) regulations would be increased from £2,000 to £25,000.
The Solicitors Regulation Authority (SRA) said the proposals would “resolve issues much more quickly” and allow the Solicitors Disciplinary Tribunal (SDT) to “focus on the most serious cases where there is need for greater fines and sanctions such as suspension and strike off”.
To report a discrepancy using the new online service, solicitors will need:
- the company number of the entity being reported as having a discrepancy
- the type of discrepancy
- the information on the PSC register you believe is incorrect, for example, an incorrect address or an error in the nature of control
- the correct information as you believe it should be shown on the register
- any other relevant information about the discrepancy that supports the report.
For help and advice with related matters, please get in touch with our legal finance team today.