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October 2014
Warm autumn impacts sales - 27.10.2014
UK high street sales fell in September, causing concern over the state of the economic recovery, according to the Office for National Statistics (ONS).
During a time which has traditionally seen a large rise in shoppers seeking winter clothes and other seasonal purchases, sales volumes fell by 0.3% over the month of September. The ONS said that clothing and footwear sales in particular fell by 7.8% on the previous month, while shop prices fell by 1.4% compared to September 2013 – the steepest fall in five years.
An ONS spokesperson said: ‘Feedback from retailers suggested the fall was a result of unseasonably warm weather meaning consumers have delayed purchases of autumn and winter clothing’.
A preliminary estimate of current gross domestic product (GDP) has been released by the ONS, fulfilling expectations of 0.7% growth between July and September – lower than the 0.9% growth reported in the previous quarter, but overall 3% higher than the same quarter last year.
Their report also indicates increased output in the four main industrial groups: services, production, construction and agriculture.
With an imminent shift in weather, and the clocks having changed, it may well be that sales improve as more people wrap up warm and the dry spell ends.
During a time which has traditionally seen a large rise in shoppers seeking winter clothes and other seasonal purchases, sales volumes fell by 0.3% over the month of September. The ONS said that clothing and footwear sales in particular fell by 7.8% on the previous month, while shop prices fell by 1.4% compared to September 2013 – the steepest fall in five years.
An ONS spokesperson said: ‘Feedback from retailers suggested the fall was a result of unseasonably warm weather meaning consumers have delayed purchases of autumn and winter clothing’.
A preliminary estimate of current gross domestic product (GDP) has been released by the ONS, fulfilling expectations of 0.7% growth between July and September – lower than the 0.9% growth reported in the previous quarter, but overall 3% higher than the same quarter last year.
Their report also indicates increased output in the four main industrial groups: services, production, construction and agriculture.
With an imminent shift in weather, and the clocks having changed, it may well be that sales improve as more people wrap up warm and the dry spell ends.
House building highest since 2007 - 23.10.2014
The National House Building Council (NHBC) has released figures showing that house building activity is at its strongest since before the financial crisis.
The organisation recorded 107,017 registrations to build houses between January and September this year. This is a 6% increase on 2013. Also, between July and September the number of registrations was 36,343 – up 8% on last year.
NHBC Chief Executive, Mike Quinton, said: ‘Our figures show that the sharp housing upturn we have seen over the last couple of years is a genuine broad-based recovery across the whole of the country, with pockets of strong growth in the North East, Yorkshire and Humberside and West Midlands.
‘It is now increasingly apparent that housing growth is no longer London and south-east-centric, with these regions beginning to show signs of cooling’. But he also warned that small builders are still struggling to raise finance, describing lenders as ‘risk averse’.
The Home Builders’ Federation (HBF) said: ‘Help to Buy has increased the demand for new homes and builders are responding. The industry has increased its output at the quickest rate for 40 years’.
The organisation recorded 107,017 registrations to build houses between January and September this year. This is a 6% increase on 2013. Also, between July and September the number of registrations was 36,343 – up 8% on last year.
NHBC Chief Executive, Mike Quinton, said: ‘Our figures show that the sharp housing upturn we have seen over the last couple of years is a genuine broad-based recovery across the whole of the country, with pockets of strong growth in the North East, Yorkshire and Humberside and West Midlands.
‘It is now increasingly apparent that housing growth is no longer London and south-east-centric, with these regions beginning to show signs of cooling’. But he also warned that small builders are still struggling to raise finance, describing lenders as ‘risk averse’.
The Home Builders’ Federation (HBF) said: ‘Help to Buy has increased the demand for new homes and builders are responding. The industry has increased its output at the quickest rate for 40 years’.
New pension changes to be announced - 14.10.2014
With details to be set out in parliament, the Treasury is offering savers more freedom over their pension pots.
Current rules allow people over the age of 55 to withdraw 25% of their pension as a tax-free amount. The new changes will mean that those savers can dip into their pension pots whenever they like, and each time 25% will be tax free.
Chancellor George Osborne said: ‘People who have worked hard and saved all their lives should be free to choose what they do with their money, and that freedom is central to our long-term economic plan.
‘From next year they’ll be able to access as much or as little of their defined contribution pensions as they want and pass on their hard-earned pension to their families tax free.
Previous announcements on pensions this year have included flexible access to pension pots for up to 320,000 individuals, and the ability to pass on unused defined contribution funds to a nominated beneficiary upon death, foregoing the 55% tax charge.
Current rules allow people over the age of 55 to withdraw 25% of their pension as a tax-free amount. The new changes will mean that those savers can dip into their pension pots whenever they like, and each time 25% will be tax free.
Chancellor George Osborne said: ‘People who have worked hard and saved all their lives should be free to choose what they do with their money, and that freedom is central to our long-term economic plan.
‘From next year they’ll be able to access as much or as little of their defined contribution pensions as they want and pass on their hard-earned pension to their families tax free.
Previous announcements on pensions this year have included flexible access to pension pots for up to 320,000 individuals, and the ability to pass on unused defined contribution funds to a nominated beneficiary upon death, foregoing the 55% tax charge.
Fake HMRC scam email warning for taxpayers - 8.10.2014
Yet another fake HMRC phishing scam email targeting taxpayers has been circulating, so recipients are warned not to click on the link it contains.
Purporting to come from HMRC, the email states the recipient is no longer eligible to receive a tax return and needs to sign up with their current details to get back into the system. The email carries an HMRC logo but the spelling mistakes and poor formatting will probably alert many recipients to it being a fake. It also comes from a non-official email address.
The full text of this latest scam email (including original typos) is:
From: HMRC [mailto:[email protected]]
Sent: 18 September 2014 11:09
To: Recipients
Subject: HMRC - HM Revenue & Customs
Dear Taxpayer
We wish to inform you that as of September 20 you are no longer eligible to receive a Tax Return. The reason being the expiration of your current information regarding the method by which you receive your Tax Returns. To alleviate this problem you must renew this information by filling out and submiting this form
Untill you complete this process you will not be able to receive any Tax Return. Please note: Submitting invalid records can lead to the inability to receive Tax Returns for a period of 6 months.
Please submit the Tax Return Information Update Form and allow us 6-9 days in order to process it.
Thank you.
Make sure that you don't click on the link in the e-mail. Instead, forward the suspicious e-mail to HMRC at [email protected] and then delete it.
You can check known more phishing email scams at the HMRC website: http://www.hmrc.gov.uk/security/examples.htm
Purporting to come from HMRC, the email states the recipient is no longer eligible to receive a tax return and needs to sign up with their current details to get back into the system. The email carries an HMRC logo but the spelling mistakes and poor formatting will probably alert many recipients to it being a fake. It also comes from a non-official email address.
The full text of this latest scam email (including original typos) is:
From: HMRC [mailto:[email protected]]
Sent: 18 September 2014 11:09
To: Recipients
Subject: HMRC - HM Revenue & Customs
Dear Taxpayer
We wish to inform you that as of September 20 you are no longer eligible to receive a Tax Return. The reason being the expiration of your current information regarding the method by which you receive your Tax Returns. To alleviate this problem you must renew this information by filling out and submiting this form
Untill you complete this process you will not be able to receive any Tax Return. Please note: Submitting invalid records can lead to the inability to receive Tax Returns for a period of 6 months.
Please submit the Tax Return Information Update Form and allow us 6-9 days in order to process it.
Thank you.
Make sure that you don't click on the link in the e-mail. Instead, forward the suspicious e-mail to HMRC at [email protected] and then delete it.
You can check known more phishing email scams at the HMRC website: http://www.hmrc.gov.uk/security/examples.htm
Large rise in stamp duty collection as house prices rise - 1.10.2014
HMRC collected some £12.4 billion in stamp duty in the 2013/14 tax year, a 35% rise on the previous year and the largest taking since 2007, before the financial crisis.
A rise in house prices was the main driver of the increase, with three-quarters of the taxes coming from property transactions and the rest paid by savers and traders when buying shares.
With house prices rising fastest in London and the south east, those regions alone accounted for £4.6 billion, some two-thirds of the total residential stamp duty tax paid in England for the whole year.
David Hollingworth of mortgage brokerage London & Country, said: "There has been a huge upsurge in activity in London and the south over the past 12 months … and these stamp duty takings underline that. They will provoke controversy, though, because of the way the tax is charged, effectively as soon as you trip over a certain band the higher rate is charged on the whole purchase price. That seems unfair and it is no surprise there are calls for reform."
Stamp duty is charged at 1% on all properties that sell for more than £125,000 and 3% on the entire amount if sold for £250,001 and above. It rises to 4% above £500,000, 5% if between £1 million and £2 million, and 7% above that
A study by estate agents Haart suggests the average house price will reach the 3% threshold by 2016. Paula Higgins, chief executive of the HomeOwners Alliance, said: "These latest figures show just how wrong stamp duty is. It was a tax introduced to apply to the few but is now a tax on families and first-time buyers buying homes to live in as they have to save thousands to pay this upfront tax."
A rise in house prices was the main driver of the increase, with three-quarters of the taxes coming from property transactions and the rest paid by savers and traders when buying shares.
With house prices rising fastest in London and the south east, those regions alone accounted for £4.6 billion, some two-thirds of the total residential stamp duty tax paid in England for the whole year.
David Hollingworth of mortgage brokerage London & Country, said: "There has been a huge upsurge in activity in London and the south over the past 12 months … and these stamp duty takings underline that. They will provoke controversy, though, because of the way the tax is charged, effectively as soon as you trip over a certain band the higher rate is charged on the whole purchase price. That seems unfair and it is no surprise there are calls for reform."
Stamp duty is charged at 1% on all properties that sell for more than £125,000 and 3% on the entire amount if sold for £250,001 and above. It rises to 4% above £500,000, 5% if between £1 million and £2 million, and 7% above that
A study by estate agents Haart suggests the average house price will reach the 3% threshold by 2016. Paula Higgins, chief executive of the HomeOwners Alliance, said: "These latest figures show just how wrong stamp duty is. It was a tax introduced to apply to the few but is now a tax on families and first-time buyers buying homes to live in as they have to save thousands to pay this upfront tax."
