More than a million parents will receive reminders to extend Child Benefit for their teenagers if they are continuing their education or training after their GCSEs.

HM Revenue and Customs (HMRC) is sending more than 1.4 million Child Benefit reconfirmation letters to parents between 24 May and 17 July. The letters will include a QR code which, when scanned, directs them straight to GOV.UK to update their claim quickly and easily online.

Child Benefit is worth up to £1,331 a year for the first or only child, and up to £881 a year for each additional child. Payments will automatically stop on 31 August on or after the child has turned 16 unless parents renew their claim where their child is continuing in education.

Parents have until 31 August to act, or their payments will automatically stop.

Letting HMRC know digitally that a child is continuing in education is the quickest way to get it sorted, with no need to contact HMRC by phone or post.

If you have not received a letter by 17 July, there is no need to worry – if eligible, you can still extend your Child Benefit claim via GOV.UK or the HMRC app.

Child Benefit can continue to be paid for children who are studying full time in approved non-advanced education, which includes:

• A levels or Scottish Highers
• International Baccalaureate
• Home education – if it started before their child turned 16, or after 16 if they have a statement of special educational needs and it was assessed by the local authority
• T levels
• NVQs, up to level 3.

Child Benefit will also continue for children studying on one of these unpaid approved training courses:

• in Wales: Foundation Apprenticeships, Traineeships or the Jobs Growth Wales+ scheme;
• in Northern Ireland: PEACEPLUS Youth Programme 3.2, Training for Success or Skills for Life and Work;
• in Scotland: Employability Fund programme and No One Left Behind.

If a child changes their mind about further education or training, parents can simply inform HMRC online or in the HMRC app and payments will be adjusted accordingly.

Parents will need a Government Gateway user ID and password to use HMRC’s online services. If they do not have one already, they can register on GOV.UK  and will just need their National Insurance number or postcode, and 2 forms of ID.

HMRC can enquire into any statutory return (or amendment of that return) or statutory claim to check if the return / claim has been prepared correctly or if further information is required.

HMRC’s internal manuals state that there is no statutory definition of an enquiry, so it carries its normal dictionary meaning of `seeking information, asking, questioning’. In practice the nature and extent of enquiries will vary considerably.

HMRC has historically referred to ‘full enquiries’ covering a tax return as a whole, and ‘aspect enquiries’ dealing with one or more matter(s). However, the legislation does not distinguish between different types of enquiries. Therefore, all enquiries into tax returns are legally enquiries into the full return, even if in practice HMRC only need to check part of the return.

If HMRC make no enquiries within the period allowed, or if they have completed an enquiry, the return becomes final unless

• the taxpayer is still within time to amend their return;
• the taxpayer has carelessly or deliberately caused a loss of tax; or
• HMRC discover that the return was incorrect, and the taxpayer had not disclosed enough information to show this. This is known as a discovery assessment. If a discovery is made in such circumstances HMRC can make a discovery assessment up to 6 years (20 years if the taxpayer has failed to notify chargeability) after the end of the relevant accounting period.

There is a French saying “Plus ca change, plus c’est la meme chose” meaning, the more things change, the more they stay the same.

Its interesting to apply this to a change that is about to come about, if, as expected, the Labour Party form the next government from the 5^{th of} July.

The present Shadow Chancellor, Rachael Reeves, has indicated that there will be no immediate post-election budget, which means no immediate tax changes.

Both sides (Conservative and Labour) have underlined that they will not add to UK debt by increasing government spending. Instead, they have asserted they will cover any expenditure with tax funding.

But don’t hold your breath. Once the new government is safely ensconced at Downing Street who knows what may be in store for us.

One thing is certain, we may have to rethink any financial planning that we have implemented thus far if we have a Labour administration. There longer term focus is likely to be tackling income inequalities and levelling up. We shall see…

Meantime, expect no immediate, drastic changes in economic policy. But expect movement next year as the new government becomes familiar with facts and figures. We may see evidence short-term that policy may appear to stay the same, but it’s unlikely that this will continue long-term.

The Digital Markets, Competition and Consumers Act has become law after receiving Royal Assent.

The Act paves the way to give consumers rights across the UK, with greater control and clarity over online purchases. 

It does this by requiring businesses to provide clearer information to consumers before they enter a subscription contract, remind consumers that their free trial or low-cost trial is coming to an end, and ensure consumers can easily exit a contract. 

Unavoidable hidden fees will also need to be included in the initial cost or clearly illustrated at the start of the purchasing journey. This will ensure consumers are clear from the offset about what they’re spending. 

The Digital Markets, Competition and Consumers Act will also give new tools to the Competition and Markets Authority (CMA) to address the challenges to competition in digital markets.

These tools will allow the competition regulator to set tailored ‘conduct requirements’ which require a powerful tech company to change the way it operates if it is not treating users fairly. These rules could give consumers the room to freely choose the services they use or stop companies from withholding information consumers need to make good decisions.  

The Act also gives the regulator powers to intervene and direct a firm to change its behaviour to boost competition – whether that is to benefit people using smartphones or businesses dependent on cloud services.   

The Act will also give new powers to the CMA to closely monitor road fuel prices and report any sign of malpractice to the government.

Only a handful of the most powerful global technology companies will be subject to these new rules if, following an investigation, they are deemed to hold ‘strategic market status’.

The Prime Minister, Rishi Sunak, declared from the steps of Downing Street (on 22 May 2024) that the next general election will take place on 4 July 2024. 

The Prime Minister confirmed that he had spoken with His Majesty the King to request the dissolution of parliament. The King granted this request, thereby confirming that the general election will take place on the 4 July 2024. This will be the first election to take place in July since 1945.

Following the announcement by the Prime Minister the Chief Executive of the Electoral Commission, said:

“The electoral community will now be putting all its planning into action, working to support voters and delivering well-run polls. I’m very grateful to all involved for their crucial work supporting our democracy. 

Voters need to be registered to take part in the election. Applying only takes five minutes at www.gov.uk/register-to-vote and must be done by 18 June. Voters can choose whether to vote at a polling station, by post or by proxy. 

For the first time at a UK general election, those voting at a polling station will need to show photo ID. Voters should check now if they have an accepted form of ID, and if not to apply for free ID, called the Voter Authority Certificate."

Key dates:

An economist from the Treasury explains exactly what a fall in inflation means for you.

How will lower inflation help the economy?  

Lower inflation supports people by maintaining the purchasing power of their money.  

If prices only rise slowly, people can plan their budgets more effectively – encouraging spending and investment, which fuels the economy.  

Lower inflation also helps businesses grow by providing a stable, predictable environment for them to operate in – allowing for more job opportunities or the ability to research new products and services. 

Finally, low inflation enhances the UK’s competitiveness in a global market. When the economy is stable and predictable, other countries are more interested in investing in the UK.  

This can bring in more money from foreign investors, give us better trade deals, and make the overall economy stronger. 

How will lower inflation help my business?  

If inflation is lower, it means the price of materials businesses use to produce their goods and services aren’t rising as quickly, so there is less pressure on them to pass price increases onto their customers. 

For example, a coffee shop won’t face large increases in the cost of their coffee beans, paper cups, or the energy to turn on the lights in the coffee shop.  

Because none of those things are getting drastically more expensive, they don’t have to pass those costs on to coffee for their customers.

Lower inflation provides a sense of stability for businesses, which is important to empower them to make decisions about their future. 

If inflation is high and volatile, businesses aren’t able to plan for their future spending decisions.  

For example, if you want to invest in a factory that will take a year to build, it’s important to know how much things will cost in a year’s time.  

What does inflation going down mean for my mortgage?  

Inflation influences mortgage rates indirectly, through financial market’s expectations for the Bank of England’s base interest rate.  

The base interest rate, which is also known as the Bank Rate, is the tool used by the Bank of England to bring inflation down. 

Mortgages are generally priced to reflect what the financial markets expect future interest rates to be. 

This means that if markets start to expect higher inflation, they will raise their expectations for the Bank Rate, in order to cool the economy and bring inflation back to target. This is in turn reflected in mortgage interest rates.  

If inflation falls more quickly than expected, it may lead to reductions in market expectations for the base interest rate and therefore reductions in mortgage rates offered.

The Annual Tax Summary is a document provided by HMRC that shows details of the tax you pay and how this is used by government.

The Annual Tax Summary shows:

• your taxable income from all sources that HMRC knew about at the time that it was prepared;
• the rates used to calculate your Income Tax and National Insurance contributions; and
• a breakdown of how the UK government spends your taxes – this makes government spending more transparent.

HMRC makes it clear that the tax summaries are for information purposes only and neither taxpayers nor agents should take any action based on the contents of the summary. The summaries are available online via the Government Gateway.

Taxpayers cannot access an Annual Tax Summary if they have paid no income tax or if information is outstanding. The Annual Tax Summary might also be different from other HMRC tax calculations because a taxpayer's circumstances have changed, or sources of income were not included.

Universal Credit claimants working less than half of a full-time week will have to look to increase their hours but will be able to benefit from extra work coach support. These changes will see 400,000 Universal Credit claimants receive more help to progress in work.

The changes come as the PM announces once in a generation welfare reforms to help people find work, boost their earnings, and grow the economy.

Before 2022, someone could work only nine hours a week and remain on benefits without being expected to look for more work.

The latest rise in the Administrative Earnings Threshold (AET) means someone working less than 18 hours – half of a full-time week – will have to look for more work.

These Universal Credit claimants will move into the ‘Intensive Work Search group’, meeting with their work coaches more regularly to plan their job progression, boost their earnings and advance the journey off welfare altogether.

Combined with previous increases, 400,000 claimants are now subject to more intensive Jobcentre support – and with that the expectation that those who can work must engage with the support available or face losing their benefits.

The move comes as last month the Prime Minister announced a once in a generation package of welfare reforms to help thousands more people benefit from employment, building on the Government’s £2.5 billion Back to Work Plan providing extra help to over a million people to break down barriers to work.

In a recent press release the Department for Education confirmed that parents of children from 9 months old can now apply to access government-funded childcare from September 2024, as England’s largest ever childcare expansion continues.

From 12 May 2024, eligible working parents of children who will be 9 months old by 31 August can apply to access 15 hours of funded childcare a week – set to benefit hundreds of thousands of families across the country.

This is the second step in the government’s long-term plan to support hard-working parents to balance their family and career. As the successful launch of the offer in April demonstrates, this plan is working.

Since the launch of the offer, 211,027 two-year-olds are already benefitting from government-funded places, providing parents with financial support to return to work or increase their hours and kick-starting the government’s commitment to grow the economy through affordable access to quality childcare.

Working parents whose children will be aged between 9-months and 23-months old on 31 August 2024 can apply for their government-funded childcare code via the childcare service, which they then take to their chosen childcare provider to validate. 

In this next stage, the historic rollout will deliver direct government support with childcare costs from the term after their child turns 9 months old, until they start school. By September 2025, support will increase to 30 government-funded hours a week, saving families an average of £6,900 per year.

The Ministry of Justice has published an urgent warning for anyone with unclaimed dormant funds held by the Courts Funds Office (CFO). Recent changes in legislation have changed the rules for individuals or entities with dormant funds held by the CFO.

The new rules come into effect from 1 June 2024 and mean that any account that has been held dormant within the CFO for 30 years or more will be surrendered and any future right to claim the funds will be extinguished.

Funds are classified as dormant if they have been held by CFO for an extended period, with no activity on the account, and any efforts to trace the intended beneficiary have been unsuccessful.

There is now less than 1 month left to claims funds dating back 30 years or more. Going forward, any account that subsequently reaches 30 years of dormancy will be surrendered on the date that this milestone is passed.

There is a range of reasons why CFO hold funds including, but not limited to, the following:

• damages that were awarded to children as a result of civil legal action in a county court in England, Wales, or the High Court of Justice;
• assets belonging to people who lack capacity to manage their own financial affairs and where the Court of Protection has appointed someone else to do so; and
• pending settlements of civil court action, or on behalf of dissenting shareholders, widows, and other clients.

If you think you may be affected there is an online database available at https://find-unclaimed-court-money.service.justice.gov.uk/ or you can contact the CFO directly.