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UK TAX
Weekly News 18th Nov
Home Office stops issuing and renewal BRP cards
The Home Office has confirmed that after 31 October 2024, Biometric Residence Permit (BRP) cards will no longer be issued or replaced.
Individuals holding various UK visa categories must create an account on the UKVI website by the end of 2024 to obtain an electronic visa (eVisa), which will serve as proof of their immigration status.
An eVisa is a digital record of an individual’s immigration status. It applies to those who recently applied for immigration permission using the UK Immigration ID Check app (or the EU Exit app). Applicants need to create a UKVI account and verify their information to apply for an eVisa. Once approved, they will receive a ‘digital ID’, allowing them to view visa information and status through their UKVI account and share it with third parties when needed.
Current BRP cards will expire on 31 December 2024, so applicants must complete their eVisa applications before that date. The UK government advises previous holders to retain their BRP cards as it may still serve as a personal record or historical visa evidence for future applications.
Whilst official guidance on whether cards will be collected is unclear, some BRP cards might be taken during customs checks. However, once you have an eVisa, presenting the BRP card at customs is unnecessary as staff can access your immigration status online.
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Record number of corporate bankruptcies reported after Autumn Budget
Following the announcement of increased taxes in the Autumn Budget by Chancellor Rachel Reeves, the number of corporate bankruptcies in the UK has surged.
In the week ending 8 November, company insolvencies rose 64% compared to the same period in 2023, with over 1,000 companies filing for bankruptcy. Reports suggest that news of an employer National Insurance hike led some solvent companies to initiate liquidation early.
Meanwhile, over 200 hospitality industry leaders wrote to Reeves, warning that raising National Insurance would be ‘unsustainable’ and could lead to business closures and layoffs, potentially costing the sector £3.4 billion annually.
Bloomberg further predicts that the UK economy will slow in Q3 2023, with reduced consumer spending further straining economic growth.
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Treasury plans major pension reforms to boost economic growth
Chancellor Rachel Reeves is planning a ‘once-in-decades pension reform’ to drive economic growth. This involves merging 86 local authority pension schemes into fewer ‘megafunds’ to channel billions of pounds into sectors such as energy infrastructure, tech startups, and public services.
For public sector employees, defined benefit pensions (based on salary and tenure) will remain largely unaffected. However, private sector defined contribution schemes may face a minimum size requirement, consolidating approximately 60 multi-employer schemes managing £800 billion in investments.
Helen Morrissey, a pensions expert at Hargreaves Lansdown, stated that the UK’s pension market is ‘incredibly fragmented’, incurring high administrative, governance, and management costs. Merging smaller funds into larger ones could unlock investments in large projects and reduce expenses through greater bargaining power, potentially increasing returns if managed well.
However, larger investments carry higher risks. For example, Canada’s Public Sector Pension Investment Board recently invested over £1.5 billion in airports, but similar funds like Ontario Municipal Employees Retirement System are major investors in the struggling Thames Water company.
