Commercial property taxes will increase by £400 million annually
According to the new policy announced last year, starting from April 2024, the UK government will increase Business Rates based on the inflation data from September 2023. The government has stated that they will announce the increased tax rates in October, and it is currently estimated to be at 6%. Preliminary data indicates that this will result in retail businesses incurring an additional cost of over £400 million annually.
Undoubtedly, this move places significant pressure on retailers, as a result, they will need to continue adjusting the pricing of their products to maintain their revenue streams. Ultimately, it is the citizens who will shoulder this substantial cost burden!
BMW announces a £600 million investment in the UK for the production of electric Mini vehicles
German automotive giant BMW is set to invest £600 million in upgrading its factory in Oxford, United Kingdom. This investment will be dedicated to producing the electric version of the Mini Cooper and the brand-new electric Mini Aceman crossover SUV.
It’s worth noting that BMW’s Mini brand was established in the year 2000. In 2019, BMW chose to develop electric versions of their Mini vehicles. However, last year, the company made the controversial decision to move the production of electric Minis to China, which sparked dissatisfaction within the UK industry.
Former Liverpool player owes £238,000 in taxes
Former Liverpool and England football player John Barnes is a celebrated athlete renowned for his contributions to Liverpool, Newcastle, and Watford. Between 1983 and 1995, he represented the England national team 79 times. Following his retirement from playing, he also served as the head coach of Celtic Football Club. Presently, he works as a writer and serves as a commentator and pundit for ESPN and SuperSport.
It is known that just from his time at Liverpool Football Club, his annual salary amounted to £200,000. This number does not include other sources of income.
However, this well-known player has reportedly not been paying his taxes on time or encountered financial difficulties preventing him from doing so. In recent months, the UK tax authorities have taken him to court. Representatives from the tax authority claim that the former football star owes £238,000 in taxes and have requested that he file for bankruptcy.
UK property prices have experienced a significant decline
This Monday, the UK bank Halifax released its latest property price data. The data indicates that the current average property price in the UK stands at £279,569. This marks a notable month-on-month decrease of 1.9%, which equates to approximately £5,000. This drop is the largest since November 2022. Compared to the same period last year, property prices have decreased roughly £14,000, bringing them back to levels seen at the beginning of 2022. However, it is important to note that they remain approximately £40,000 higher than pre-pandemic levels.
This data suggests that the rising costs of mortgages are further dampening people’s appetite for buying homes.
Specifically, property prices in the South of England, London, and Wales have experienced the most significant declines, while Scotland has exhibited more stability with comparatively smaller decreases. The data reveals that property prices in the Southeast have seen an annual decrease of 5.0%, resulting with in average price of £379,565. Wales has seen a 4.7% decrease, with an average price of £212,967, and the Southwest has seen a 4.4% decrease, with an average price of £298,496. Property prices in Greater London typically decrease by 4.1% annually, with an average price of £529,814. On the other hand, Scotland’s property prices have only decreased by 0.6% over the past year, making it the slowest-declining region in the UK, with an average price of £201,932.
HMRC reminds parents not to forget about childcare benefits
Tax-Free Childcare is a government benefit provided to parents in the UK. Families only need to open a Childcare Account, and for every £8 they deposit into the account, the government automatically adds an extra £2 as a subsidy. Each of your children can receive a maximum of £500 every 3 months (up to £2,000 per year) in childcare cost subsidies. If your child has a disability, you can receive up to £1,000 every 3 months (up to £4,000 per year).
The UK tax authority reminds parents that as the summer holidays come to an end, don’t forget to use your Tax-Free Childcare Account to pay for any approved childcare costs, including holiday clubs, breakfast and after-school clubs, childminders, and nurseries.
