The Government’s draft finance bill has been shelved as we countdown to the general election on 12 December 2019. The consultation on the draft legislation has closed, but the prorogation controversy and Brexit issues meant there was no time for the Government to respond to any of the issues raised.

The Bill contained the legislation for some of the tax measures that were announced by the Government at Autumn Budget 2018. Many of these measures have been the subject of further consultation. The measures expected to come into force from April 2020 included: the extension of off-payroll working rules to the private sector, the introduction of the Digital Services Tax and the new Corporate Capital Loss Restriction. If the Conservatives are re-elected, we are likely to see these measures revived whilst a new Government could make significant changes.

The Chancellor, Sajid Javid, cancelled the Budget that was meant to be presented to Parliament on 6 November 2019. Once again, the cancellation was in response to the calling of a general election. This leaves us with a significant gap since the last Budget was held on 29 October 2018. The next Budget will likely take place during January / February 2020. There are also issues for Scotland's Budget which is currently scheduled for 12 December 2019, and which is expected to be deferred.

Sajid Javid has cancelled the Budget that was due to be presented to Parliament 6th November.

As the UK will not be leaving the EU at the end of this month and as Boris Johnson is proposing a general election on 12th December, both of these events have rendered a budget inappropriate at this time.

As and when a new date is agreed we will publish details on this news feed.

HM Treasury has announced the trial launch of a new PrizeSaver account with participating credit unions. The new account was launched as part of the International Credit Union Day. Eligible savers who open the new account can win up to £5,000 a month by saving as little as £1 a month.

The Treasury has teamed up with 15 credit unions across the UK to launch the new accounts.  Accounts can be opened now with the initial group of participating credit unions. The first prize draws will take place in mid-December. Every month’s prize draw will see a top prize of £5,000 awarded to the winning saver, with a further 20 smaller prizes of £20 also awarded.

The launch of this pilot was announced at last year's Budget and is, according to HM Treasury, designed to help improve people’s financial resilience by encouraging greater saving for the future, as well as raise awareness of credit unions and the services they offer.

The launch of the new scheme was partly inspired by the 'Save to Win' scheme in the US, which has helped credit union members save $200m and has awarded $3.1m in prizes nationwide. The pilot will run until the end of March 2021 and will help inform understanding of the PrizeSaver model. If the pilot is successful, it is expected to be rolled out more widely across the country.

Credit unions are a type of member-owned cooperative, controlled and run by members. Most either serve specific local areas or certain professions like the police. Credit unions redistribute their profits to members through interest or dividends or by investing in new services to meet the needs of their members.

There are a number of options if you find yourself in disagreement with a tax decision issued by HMRC. As a first step, it is usually possible to make an appeal against a tax decision. There is normally a 30-day deadline for making a claim, so time is of the essence. HMRC will then carry out a review, usually by using HMRC officers that were not involved in the original decision. A response to an appeal is usually made within 45 days but can take longer for complex issues.

In certain cases, it is possible to appeal against penalties on the grounds that you have a 'reasonable excuse' for not complying on time.

HMRC’s guidance lists the following examples of what may count as a reasonable excuse:

• your partner or another close relative died shortly before the tax return or payment deadline
• you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
• you had a serious or life-threatening illness
• your computer or software failed just before or while you were preparing your online return
• service issues with HMRC online services
• a fire, flood or theft prevented you from completing your tax return
• postal delays that you couldn’t have predicted
• delays related to a disability you have

However, not receiving a reminder, relying on someone else or making a mistake are amongst the reasons not counted as reasonable excuses.

If you still disagree with HMRC’s review, there are further options available which include making an appeal to a tax tribunal or using the Alternative Dispute Resolution (ADR) process.

We can help. Call if you need guidance on the best way to proceed.

What happens if your bank becomes insolvent and you stand to lose any funds deposited?

The bank deposit guarantee limit is the amount of money that is guaranteed, for savers in UK banks and building societies, should the institution become insolvent. The Financial Services Compensation Scheme (FSCS) guaranteed amount is currently £85,000 per person, per authorised bank or building society.

There is additional protection available to savers with certain types of temporary high balances, for example proceeds from a house sale, benefits payable under an insurance policy and inheritances. The additional FSCS protection covers amounts of up to £1m per depositor per life event and is available for up to six months. The FSCS offers unlimited cover for personal injury claims.

The limit is enough to cover the deposits of more than 95% of all savers in the UK. However, savers with more than £85,000 should consider opening multiple bank accounts with separate banks and building societies in order to increase their guaranteed savings limits. The FSCS was set up mainly to assist private individuals, although some businesses and small local authorities (such as parish councils) are also covered. The compensation limit is doubled for joint account holders.

The Governor of the Bank of England, Mark Carney, has unveiled the design of the new £20 note featuring the artist JMW Turner. The new note will be launched on 20 February 2020 and will join the current £5 and £10 notes in being printed on polymer, a thin flexible plastic. The new plastic £20 note will include a number of new security features including two windows and a two-colour foil, making it very difficult to counterfeit.

The Governor said:

'Our banknotes celebrate the UK’s heritage, salute its culture, and testify to the achievements of its most notable individuals.  And so, it is with the new £20 banknote, featuring JMW Turner, launched today at Turner Contemporary in Margate. Turner’s contribution to art extends well beyond his favourite stretch of shoreline.  Turner’s painting was transformative, his influence spanned lifetimes, and his legacy endures today. The new £20 note celebrates Turner, his art and his legacy in all their radiant, colourful, evocative glory.'

Once the new plastic £20 note is launched, the process of withdrawing the current paper £20 notes from circulation will begin. The paper £20 notes will remain as legal tender until they are withdrawn. The exact date that the paper notes are to be withdrawn has not yet been announced but at least 6 months in advance notice will be given. It has already been confirmed that a new £50 note will be issued in 2021, featuring Alan Turing, completing the updating of all current Bank of England banknotes.

The Chancellor of the Exchequer, Sajid Javid, has announced that he is planning to hold his first Autumn Budget 2019 on Wednesday, 6 November 2019. However, this date is based on the UK leaving the EU with a deal on 31 October 2019. At the time of going to press, this was certainly not a foregone conclusion.

The Chancellor did confirm that if the UK leaves the EU without a deal then the Government would act quickly to announce emergency measures to support the economy, businesses and households. This would then be followed by a Budget in the weeks thereafter. No announcement was made as to what will happen if there is a further extension to Brexit.

The Chancellor said:

'This will be the first Budget after leaving the EU. I will be setting out our plan to shape the economy for the future and triggering the start of our infrastructure revolution. This is the right and responsible thing to do – we must get on with governing.'

HM Treasury has also confirmed that the opportunity to submit representations for the Budget 2019 is now available. A Budget representation is a written representation from an interest group, individual or representative body to HM Treasury with the aim of commenting on Government policy and / or suggesting new policy ideas for inclusion in the Budget. Any submissions should be sent to HM Treasury by 30 October 2019.

Details of all the Budget announcements will be made on a special section of the GOV.UK website which will be updated following completion of the Chancellor’s speech.

The Chancellor is set to announce a new package of measures to help the UK prepare for a post-Brexit future. We are told that these measures will also help to support the next generation and promote economic growth.

It has also been confirmed that British organisations that are receiving certain EU funding, will continue to do so even after a no-deal Brexit. If the EU cease to fund UK organisations, the Government has guaranteed to commit funding. This will replace certain EU programme funding (such as the European Regional Development Fund and Horizon 2020). The Chancellor said that the total amount covered by the guarantee would be £4.3bn in 2019/20, and £16.6bn over its lifetime – providing reassurance to charities, businesses, universities and other affected organisations.

There is now less than one month until the expected Brexit date of 31 October 2019, and if you listen to the Prime Minister's rhetoric the prospect of a no deal exit still remains a strong possibility. The Government has certainly ramped-up its Brexit planning and it will be interesting to see the full package of post-Brexit measures from the Chancellor as they are announced.

The Treasury has announced that Sir Amyas Morse, the former Comptroller and Auditor General and Chief Executive of the National Audit Office (NAO), will lead an independent review of the loan charge. This announcement gives some hope to many people affected by the contentious loan charge. This review will consider concerns raised by MPs and campaigners lobbying for the withdrawal of the loan charge.

The review will examine whether the loan charge is an appropriate way of dealing with loans schemes (also known as disguised remuneration tax avoidance schemes) that have been used by a number of employers and individuals in order to avoid paying Income Tax and National Insurance contributions (NICs). HMRC has never approved these schemes and has always said they are ineffective.

HMRC has confirmed that whilst the review is under way, the Loan Charge remains in force. As part of this announcement, HMRC has confirmed that, if you are not settling your disguised remuneration scheme, you will still need to complete an additional information return by 30 September 2019. If you fail to do so HMRC reserves the right to charge penalties.

HM Treasury has asked Sir Amyas Morse to report back with his recommendations by mid-November. This will give taxpayers who are liable to the charge time to prepare ahead of the planned January 2020 deadline for making payment.