Tag: Blick Rothenberg

Scammers will use Christmas and the New Year to target the public

Christmas is nearly with us, but it is not only the goose getting fat! Scammers, are ready, able, and keen to target the pubic, say leading tax and advisory firm Blick Rothenberg.

Fiona Fernie, a partner at the firm, said: “Christmas and the January sales may be ‘the most wonderful time of the year’, but they are also a time of mixed emotions, the desire to buy presents for friends and family, and anxiety about being able to pay the bills. Scammers are just waiting to take advantage.

“Scamming is a huge issue, which we all need to recognise and take action to mitigate.

“The increase in on-line shopping during the pandemic has provided scammers with an extra opportunity to obtain credit card details.  People have had their online accounts hacked enabling their credit cards to be used which has caused a great deal of distress.”

Fiona said: “There is also increasing evidence of people receiving emails purporting to be from major retailers such as the supermarkets, saying that the individual has been selected to receive some sort of reward for customer loyalty if they just key in their bank details. 

“Such emails play on concerns about the cost of Christmas and can look very much like the real thing, so it pays to be vigilant.”

She added: “It is always sensible to pay for items online using a credit card rather than a debit card and to check statements carefully each month.  Any item which you do not recognise should be reported to the credit card company immediately for investigation. 

“In addition, anybody who receives an email or SMS message suggesting that they are due a reward or owe money should take some basic precautions:

  • Use passphrases with a combination of upper- and lower-case letters, numbers, and symbols when online shopping.
  • Use different phrases for different online accounts.
  • Ensure that two-stage authentication is triggered on all credit cards and online bank accounts – preferably this will include sending a passcode to your mobile phone as well as using the appropriate passphrase.
  • Click on/hover over the “display name” email address from which you have received any email which offers you a reward.  This will show you the full details of the sender and will help to determine whether the email is likely to be from a legitimate source.  For example, I am currently receiving emails purporting to be from Amazon and Aldi but sent from websites and email addresses that are clearly not them.

If this happens to you:

  • Do not reply to the emails or SMSs; 
  • Do not call the phone number listed in an SMS; 
  • Do not click on any links or open any attachments in emails; 
  • Do not visit websites detailed in the messages;
  • Do not provide personal or financial details.”

Fiona said: “The problem does not stop with the order process either. 

“I have heard of several examples of deliveries being made to the doorstep but disappearing before individuals could take them in, so it is clearly sensible to have a reciprocal agreement with neighbours for taking in parcels when the intended recipient is not at home. 

“Don’t let scammers or opportunists spoil your Christmas!”

Three steps the UK Government must take now to solve the Brexit border chaos

The current trade disruption between the UK and the EU is the result of ignoring expert advice and a chaotic information campaign, which must urgently be solved in three steps, says leading London accountancy firm Blick Rothenberg.

Alex Altmann, a partner and head of the firm’s Brexit advisory group, says: “We warned about serious disruptions many months ago and advised the Government to introduce an implementation phase for businesses to cope with the new customs formalities.

“The foolishness and amateurism of the Government’s approach has created existential threats to many businesses on both sides that currently struggle to trade with each other. The disruptions must urgently be solved in three steps.

“First, the Government must temporarily relax the requirement for EU traders to have an office in the UK to import goods, and subsequently ask the EU commission to do the same. The most serious problem today is that businesses without a presence in the other market cannot import their goods without appointing a customs agent.

“ This is how the new customs rules have been designed by the UK and the EU as part of the Brexit deal. This is a serious flaw. Customs agents are rare and very expensive and the UK currently requires about 20,000 more agents to meet demand. The Government should take this step very urgently to avoid a major supply chain disaster in the weeks ahead.”

Altmann added: “Second, the Government needs to admit that their expensive Brexit information campaign has not prepared businesses well enough for the new trade relationship with the EU. The guidance provided by the UK Government contains conflicting information, not enough detail, and to some extent, wrong advice.

“This has become particularly apparent with regards to the new border situation with Northern Ireland. It has become clear that the Government’s guidance has not been drafted by trade and customs experts, which is a serious shortcoming.

“The Government must take a step back now and relax the rules for the time being, while redrafting guidance and advisory papers based on the final Brexit deal arrangements. This is the only way to overcome the misinformation and provide traders and freight carriers with the confidence they need to sell cross-border.”

Altmann, who is also a Chairman at the British Chamber of Commerce in Germany said: “  “Thirdly, there are some serious flaws in the Brexit trade deal that the Government must put high up on the agenda to clarify and potentially renegotiate with the EU.

“ One area that continues to create confusion among traders and their freight carriers is the new rules of origin provision. The Government presented the Brexit deal as a tariff and quota free agreement. This is only partly true. Tariffs still apply in the normal way for manufactured goods which contain more than 40 percent of ingredients with origins outside the UK or EU.

“There is no guidance of how businesses should calculate and document the origin analysis. This is causing major disruptions to supply chains. Again, we recommend that the new rules of origin are temporarily paused until there is sufficient guidance and expertise available to work this out.”

Tax relief for NHS and care home staff for PPE

NHS and care home staff who have had to buy their own personal protective equipment (PPE) so that they can support the nation during the COVID-19 crisis can claim tax relief, say leading tax and advisory firm Blick Rothenberg.

Paul Haywood-Schiefer, a manager in the firm, said: “At 8pm last night, as with every Thursday, the nation again opened its windows and doors, and clapped its appreciation in support of the fantastic work NHS staff and care workers are doing to help, not just those with COVID-19, but for all the patients in their care.

“Amidst all this goodwill, there have been many stories of shortages of PPE for NHS workers and those in care homes.

“For many, in this situation, who have had to buy their own, and have not been (or only partially) reimbursed by their employer, there is the opportunity to at least claim some tax relief.”

Below, Paul gives some guidance on how NHS and care home staff can make a claim:

“HMRC allows employees (who don’t already complete self-assessment tax returns) to make claims of up to £2,500 on employment related expenses incurred in a tax year, by using a form P87 (if non/partially reimbursed expenses for a tax year exceed this amount, the person will need to register to file a self-assessment tax return and make a claim through that). This includes for uniforms and protective clothing used in the line of duty.

“These claim forms can either be filled in through a person’s government gateway account (which can be set-up if you don’t have one, by following the instructions on the link) or by completing the form on screen, then printing this off and sending it off to HMRC.

Paul Said: “This will allow those who have made such a great sacrifice for the nation, at their own cost, to at least get some of their money back.”

Don’t be conned by cyber-skullduggery!

Thousands of people could be conned if they don’t pay attention, says leading tax and advisory firm Blick Rothenberg.

Fiona Fernie, a partner at the firm said: “Within hours of the Government’s Coronavirus Job Retention Scheme (CJRS) there was significant activity by cybercriminals trying to cash in on the scheme.

“These were in the form of emails that purported to come from the Government and suggested that HMRC needed bank account details into which the grant should be paid.

“The wording most commonly used to-date is:

‘Dear customer, we wrote to you last week to help you prepare to make a claim through the Coronavirus Job Retention Scheme. We are now writing to tell you how to access the COVID-19 relief. You will need to tell us which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you’.

Fiona added: “Most scams focus on obtaining the banking details of the recipient either by suggesting they can claim some kind of financial benefit from following the instructions in the correspondence, (for example a tax refund to help protect themselves from the Coronavirus outbreak, a goodwill payment from HMRC or a large sum of money in return for a set-up payment), or that they have a ‘fine’ to pay as a result of some misdemeanour: such as leaving the house more than once a day during lock down.

“The most frequent forms of communication are emails and text messages purporting to come from Government or HMRC officials and are designed to lure the recipient into precipitate action before thinking carefully about the substance of the message.

“People should be aware that neither HMRC specifically nor Government more widely communicates with individuals either by email or by text, unless you have signed up to the relevant protocol with them.  Certainly, payments that can be claimed by taxpayers or fines that can be imposed are not dealt with in this way.”

Fiona warned: “The communications are designed to look entirely legitimate and as well as using official logos, fraudsters change the ‘display name’ on their email address to only show the name of the body they purport to represent. They are very clever.

“It is imperative to treat any email or text apparently received from an official body with extreme caution – if you are taken in it could be a very costly mistake.

“WhatsApp or social media messages are also used by cybercriminals and should be treated with similar caution.”

So, what should you do if you receive one of these messages? 

Fiona lists below some of the things that you can do to protect yourself:

  • Do not reply to these emails, texts, WhatsApp or social media messages
  • Do not call the phone number listed in an email or text
  • Do not click on any links or open any attachments in emails
  • Do not provide any personal or financial details
  • If in doubt about whether an email or text is genuine, click on/hover over the ‘display name’ email address from which you have received the email. This will show you the full details of the sender and will make it clear whether the email is from a genuine Government or HMRC source
  • If you are in doubt about the source of one of these messages which appears to be from HMRC, forward it to them. You can do this via email at phishing@hmrc.gov.uk or via text at 60599 (network charges apply) and then delete it.

Fiona said: “In addition, the National Cyber Security Centre (NCSC) has recently launched a reporting service urging the public to forward any questionable emails to report@phishing.gov.uk.  The NCSC’s automated scanning system then checks them, and immediately shuts down and removes criminal sites.

“However, there are other scams which are even less easy to spot, and which are designed to play on the other major anxiety caused by the Coronavirus pandemic – protecting our health.

“Of the over 2,000 online coronavirus scams which have been removed over the last month by the NCSC, almost 500 were fake online shops selling personal protective equipment items such as gloves and face masks which either never arrive or do not meet the required standards.  Some of the sites also distribute malware which damages the computer systems of those who visit the sites.

“Even charities are at risk: some have been contacted by fraudsters claiming to be from an organisation able to provide helpful information such as a list of ‘at risk’ elderly people in the community who may require support from the charity.  The recipient is then directed to click on a link leading to a fake website or a request to make a cryptocurrency (such as Bitcoin) payment, to enable the release of the information.”

Fiona said: “The messages are not confined to scams allegedly coming from this Government; one received yesterday by a colleague purported to come from the National Crime Investigation Center, USA which is part of the FBI – it was another scam.”

Dear Scam victim,

This is National Crime Investigation Center USA.

In our investigations from banks on International and National Funds Transfer (INFT) protocols in the past 10 years from all banks worldwide. We have come across your contact details and records with one of these Banks. In view of the carried investigations, we have contacted you confidentially for vital information toward your transaction with this bank. It was clear that the bank have delayed your payment thereby looking for a means to divert your fund to different individual account not belonging to you.

However, all bank officials who mishandled your transaction has been duly sacked and management dissolved and dismissed from bank work as a result of this attempt. Upon our investigation conclusion, we found out that your transaction was legitimate and for this reason, a compensation amount of $3,150,567.00 (Three million one hundred and fifty thousand, five hundred and sixty seven dollars) has been allocated to you for immediate payment through our accredited bank, Federal Reserve Escrow.

Kindly contact the compensation paying officer with the below details.

Fiona said: “Sadly, there are always those who are happy to exploit the problems of others to their own advantage.  Despite the many pressures we are all under in these difficult and unprecedented times: we must be vigilant so that we do not become their victims.”

Hints and tips on managing money if you’ve been furloughed

The Government’s furlough scheme allows for 80% of salary, up to £2,500, to be reclaimed by the employer per month. 

Many companies are now taking advantage of this scheme in order to protect cash and ensure the longevity of the business when social distancing restrictions can be lifted later in the year, say tax and advisory firm Blick Rothenberg.

David Hough a partner at the first said: “For many employees this is a far better outcome than losing their job altogether, maintaining a slightly reduced income and in all likelihood being able to return to the same place of work later.

“However, many families will still feel the impact of this over the next few months whether it be from being placed on furlough, reduced income from the Government’s Self-Employed Income Support Scheme or loss of income altogether.”

He added: “There are some things that many people can do to help manage over the next few months.”

Remove your salary sacrifice deductions

Plenty of employees contribute into a pension pot through salary sacrifice deductions. It is important to save for your retirement, and the Government encourages this by making such deductions tax free, however removing or reducing these payments will increase your take home pay in the next few months. You can top up your pension later in the year when you have more certainty over your income.

Review your direct debits

Review your direct debits with your family to check you aren’t paying for things that you don’t really need. Gym memberships cannot be used at the moment and should be cancelled or deferred. Families should make sure they are not paying for multiple streaming services, or sports packages for which there is no live action. Companies like Spotify offer family memberships which will save money if a household has more than one account holder.

Defer some payments

Payment deferrals, including mortgage deferrals and other loan holidays, should be agreed with the other party but this approach should mean that you can continue pay for crucial items whilst catching up on other payments later in the year.

Many of us pay for our utilities on a monthly basis which is helpful because it means we can predict our monthly spend. However, you might have built up a credit for gas and electric or contributing more than you will actually use in the warmer months coming up. There is an opportunity to schedule these costs differently to help manage through this more challenging time.

Prepare a six-month budget

If you feel that your available cash is going to be less than normal for the next few months you should aim to make a six-month plan and budget your income and expenses over that period.

If restrictions are lifted in the early summer many people will gradually see their incomes return to a normalised level in months four to six.

You will find it helpful to see that your payments can be managed over a longer period and it will also highlight if there are items you are spending money on that you may need to cut back on at early stage.

Tax Free Grants for the Self-employed?

In an effort to help the current situation for the Self Employed, HEATHER SELF, a Partner at leading accounting and tax advisory firm Blick Rothenberg, makes  a number of suggestions which Government could embrace:

“It’s a difficult time for those who are self-employed and believe that they have been left behind. I am sure that this is not the case but it’s up to all of us to work together.

“Most self-employed people who have to make a self assessment return use an accountant so it is up to us to come up with ideas we think will help them and assist the government with its plans and calculations.

“This is what I have attempted to do with the following suggestions which I have sent to HMRC.”

a.  Anyone who has commenced self-employment prior to 1 January 2020 will be entitled to a tax-free grant

b.  For those who were self-employed in 2018/19 and were still self-employed at 1 January 2020 the initial amount of the grant will be the lower of:

–  50% of the personal allowance claimed in their 2018/19 tax return, and

–  50% of their self-employed income for 2018/19

c.   For those who commenced self-employment in 2019/20 the grant will be the lower of:

– 45% of the personal allowance they are entitled to for 2019/20, and

– 50% of their self-employed income for 2019/20

Heather added: “ The grant can be claimed in the 2019/20 tax return which is due to be filed by 31 January 2021.  If it produces a repayment, the repayment claim will be processed in the normal way. 

“While this would not produce any immediate cash, it would reassure the self-employed that funds they have set aside to pay their taxes could be used to tide them over.  Easy access to short term loans may also be needed, but the Government’s existing measures should help with this – and if not, they should be quickly extended.”

Heather said: “ This would get an initial grant of just under £6000 to a large proportion of the self-employed, and the figure would be easy to calculate.  Those fortunate to earn more than £125,000 would not qualify, as they do not get the personal allowance.

“Further help will also be needed in the coming weeks – perhaps a more sophisticated system of income support, based on average earnings over the last 3 years, as Norway are proposing.  But in the same way that the Chancellor has reassured employees, he needs to get some immediate help to the self-employed.”

The government is expected to make an announecement on support for the self-employed later today.