Connect with us
DAPA Banner

NewsBeat

Millions risk losing out under new pension salary sacrifice rules

Published

on

Millions risk losing out under new pension salary sacrifice rules

From April 2029, pension contributions made through salary sacrifice above £2,000 a year will no longer be exempt from national insurance contributions (NICs) – a move announced in the Budget.

Salary sacrifice schemes, widely used by employers, allow workers to swap part of their pay for higher pension contributions, cutting NICs while keeping take-home pay steady and boosting retirement savings.

But under the new rules, any pension contributions sacrificed above £2,000 will be treated like ordinary pension payments and hit with both employer and employee NICs, slashing the tax advantage.

Advertisement

Former pensions minister Sir Steve Webb has now sounded the alarm, pointing to a new document from the Office for Budget Responsibility (OBR) suggesting the fallout could spread far wider.

Sir Steve says: “This was a huge Budget change that will force employers to rethink pay and pensions. The OBR makes clear the impact won’t stop at those contributing over £2,000.”

Millions already set to lose

Figures released by HM Revenue and Customs (HMRC) show around 3.3 million pension savers are already on course to be directly affected.

In total, 7.7 million employees currently use salary sacrifice to pay into their pension, with 3.3 million sacrificing more than £2,000 in salary or bonuses each year.

Advertisement

The OBR warned that how employers and workers respond is “highly uncertain”, opening the door to unintended consequences.

Warning: even those under £2,000 could be hit

Sir Steve, now a partner at consultants Lane Clark & Peacock (LCP), said the changes could backfire badly.

“Far from ordinary workers being ‘protected’, we could see millions of people on modest incomes losing out, further undermining their incentive to save into a pension,” he said.

He added that some workers contributing less than £2,000 could still lose out if employers respond by holding down future pay rises or reducing contractual salaries.

Advertisement

Employers may freeze pay or rethink pensions

The OBR noted that firms could try to recreate tax benefits by increasing pension contributions instead of wage growth, or by lowering base pay in exchange for higher employer pension payments.

It also highlighted the risk of costs being “passed through” to workers – affecting salaries, bonuses or pension generosity.

In some cases, employers may scrap salary sacrifice schemes altogether, hitting entire workforces rather than just higher earners.

Industry fears ‘new era of under-saving’

Daniel Gallon, head of taxation at the Association of British Insurers, said the changes could ripple across the workforce.

Advertisement

“The OBR’s analysis shows the impact could reach far more people than expected,” he said.

A survey by the ABI and Reba found 99% of businesses expect to be affected, with many bracing for extra admin, reduced benefits and pressure on pension contributions.

“It’s a clear warning sign that constant tinkering with the tax system risks opening the door to a new era of pension under-saving,” Mr Gallon added.


Recommended reading:

Advertisement

A Treasury spokesperson defended the move, saying behavioural impacts were already factored in.

“Our reforms protect 95% of workers earning under £30,000 who use salary sacrifice, while tackling costs that were set to treble to £8 billion as high earners piled in bonuses tax-free,” they said.

But critics warn the real-world impact may be far broader – and that ordinary workers could pay the price.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

NewsBeat

Shoppers warned do not eat M&S greek yoghurt due to recall

Published

on

Shoppers warned do not eat M&S greek yoghurt due to recall

The supermarket is recalling its 500g pack of Authentic Greek Yoghurt with Vanilla as it’s “a possible health risk for anyone with an allergy or intolerance to gluten or have coeliac disease”, according to the Food Standards Agency (FSA).

The affected product has a use-by date of May 12, 2026 and barcode number 29308750.

M&S has issued the recall with a “do not consume” warning for anyone with a gluten allergy or intolerance.

Advertisement

It added: “Customer safety is of paramount importance to Marks & Spencer, and we take food safety extremely seriously.”

M&S reassured customers that “only the displayed date codes are impacted” and “no other M&S products are affected.”

The supermarket issued an apology “for any inconvenience caused”.

Advertisement

Food recalls explained


The FSA said: “If you have bought the above product and have an allergy or an intolerance to gluten or have coeliac disease, do not eat it.

“Instead return it to the store from where it was bought for a full refund.

“For more information contact Marks & Spencer on 0333301-48555.”

What is a food recall?

The FSA explains what a food recall is: “If there is a problem with a food product that means it should not be sold, then it might be ‘withdrawn’ (taken off the shelves) or ‘recalled’ (when customers are asked to return the product).

Advertisement

Recommended reading:


“The FSA issues Product Recall Information Notices to let consumers and local authorities know about problems associated with food.

“In some cases, a ‘Food Alert for Action’ is issued.

“This provides local authorities with details of specific action to be taken on behalf of consumers.”

Advertisement

Have you shopped at M&S recently? Let us know your favourite items in the comments below.

Source link

Advertisement
Continue Reading

NewsBeat

Tesco brings back F&F changing rooms after 6 years

Published

on

Tesco brings back F&F changing rooms after 6 years

Customers shared their frustration and after Tesco previously made the decision to axe its F&F changing rooms.

It was one of many supermarkets that removed their changing rooms during the pandemic, with many not re-opening them due to costs and shoplifting issues.

Tesco brings back F&F changing rooms after 6 years

One customer posted on Facebook on the Bargain Lovers group to share a picture of the F&F changing rooms.

They wrote: “Changing rooms are coming back to F&F in Tesco!”

Advertisement

Many fellow shoppers took to the comments with excitement to see the feature back after several years.

One said: “I hope this is true.”

“Another wrote: “About time too, I think!”

A third added: “Amazing news, please fit every Tesco store with changing rooms.”

Advertisement

Tesco told Newsquest that it has reopened its F&F fitting rooms as part of a trial across a small number of stores.

Tesco said it will listen to customer feedback from the trial to see how it can improve future in-store services.

If you are not able to try on in-store, Tesco customers can return F&F clothing to any large store within 30 days with their proof of purchase.

Tesco confirms major change in UK supermarket ‘first’

The reintroduction of some F&F changing rooms across various Tesco stores is not the only big change recently.

The supermarket giant is also switching from barcodes to QR codes in what is a first among UK supermarkets.

Advertisement

The UK’s biggest grocer described the move as “one of the most revolutionary retailing improvements in decades”, which would give customers access to a host of information about products via their smartphones.

The packaging of Tesco sausages which has been upgraded from barcodes to QR codesTesco is switching from barcodes to QR codes (Image: PA Wire)

QR codes will be applied to the packaging of 13 lines of Tesco’s own-brand sausages, including Tesco Pork Sausages, Tesco Pork Chipolatas, Tesco British Pork Sausage Meat, as well as British Cumberland Sausages and British Lincolnshire Sausages.

The codes can be used to provide additional product information to customers, such as nutritional content, with shoppers being able to use them to access recipes and competitions.


Recommended reading:

Advertisement

Tesco said adopting the new codes would give it better information about products in stores, helping it to order more accurately and improve efficiency, reducing unnecessary waste.

In the event of product recalls, QR codes will allow retailers to identify specific batches instead of removing all items, avoiding throwing products away unnecessarily and improving availability.

Retailers will also be able to block the sale of affected items at the till and contact customers who may have purchased them.

Would you like to see F&F changing rooms reintroduced at your local Tesco? Let us know in the comments.

Advertisement

Source link

Continue Reading

NewsBeat

‘Remarkable’ gated country home listed for sale in Tottington

Published

on

'Remarkable' gated country home listed for sale in Tottington

The gated estate’s main residence, annexe, and outbuildings are reached via a remote-controlled entrance, with a driveway and parking for several vehicles.

Extensive grounds on the Bradshaw Road, Tottington, include sweeping lawns, woodland, a stable block, and multiple storage areas.

Living room with wood-burning stove and triple aspect views (Image: Miller Metcalfe)

A further seven acres are available by separate negotiation, providing potential for additional land use.

Inside the main residence, there are three reception rooms.

Advertisement

The principal lounge includes a wood-burning stove set within a surround and is described as being “flooded with natural light”.

Kitchen with central island, bar, and sliding doors opening to garden (Image: Miller Metcalfe)

Another sitting room is designed for informal gatherings, and a further reception space incorporates a bespoke bar area.

Described in the listing as forming the “heart of the home,” the kitchen is open-plan and fitted with a central island and bespoke dining solution.

A selection of ‘Gaggenau’ appliances include a coffee machine, three double ovens with microwave, and an induction hob.

Advertisement

Main bathroom with freestanding bath, walk-in shower and countryside views (Image: Miller Metcalfe)

Sleek Corian worktops and a double-inset sink with hot water tap feature throughout the kitchen.

The utility room contains additional storage and is plumbed for a washing machine.

A double-glazed front door opens into an entrance hallway, with a further door leading to the main hallway, where a tiled floor and staircase are noted.

Fifteen acres of grazing land with mature woodland, pond and stable block (Image: Miller Metcalfe)

The listing highlights a guest WC with freestanding wash hand basin and sensor light mirror.

Advertisement

All principal rooms are described as taking advantage of “panoramic views” over the grounds.

On the first floor, there are four double bedrooms.

Both the main bedroom and a second double bedroom have dressing rooms and contemporary en-suite shower rooms.

Fifteen acres of grazing land with mature woodland, pond and stable block (Image: Miller Metcalfe)

The main bedroom includes a feature window overlooking the grounds.

Advertisement

The further two bedrooms are described as having “a lovely open aspect”.

A newly fitted family bathroom is also located upstairs, with a freestanding bath, double shower cubicle, and underfloor heating.

A detached annexe offers open-plan living, incorporating a modern kitchen, lounge/bedroom area, walk-in dressing room, and contemporary shower room.

Large windows provide views across the grounds, with a raised decked patio for outdoor use.

Advertisement

The estate’s outbuildings include a double detached garage, separate timber double garage, and a purpose-built stable block with four stables and a tack room.

Water and power are supplied to the stable area.

The grounds are described as private, with woodland, gardens, and grazing land, and are said to attract local wildlife including deer and owls.

Interested parties are urged to call Miller Metcalfe (Bury) on 01619 375383.

Advertisement

Source link

Continue Reading

NewsBeat

Westhoughton chiefs against plans to alter battery farm conditions

Published

on

Westhoughton chiefs against plans to alter battery farm conditions

FPC Electric Land was granted permission to build a battery storage system on land near Slack Lane in 2024, but council officers put several constraints on the project.

One of these constraints prevents work during active amphibian season – March until October.

This is the condition that FPC Electric Land want to have changed, as they believe it is too restrictive.

The site on Slack Lane (Image: Google)

But Westhoughton Town Council were firmly against this proposal when they discussed it on Monday (April 13).

Advertisement

Westhoughton councillor and Bolton Mayor David Chadwick said: “I think that we should all object to any changes in the planning application regarding amphibians.

“Our answer should be a very firm and stern ‘no’.”

All Westhoughton councillors at the meeting assented to Cllr Chadwick’s motion.

Cllr John McHugh said: “I completely agree with Cllr Chadwick.

Advertisement

“This provision is there to stop developers destroying our green spaces.”

Cllr McHugh also pointed out that the Planning Inspectorate put the provision on the original plan, and therefore it would not be right to change it.

Councillor Derek Gradwell, who chaired the meeting, said Cllr McHugh’s last point was probably the most relevant one out of all the comments made.

The site plan (Image: Electric Land)

FPC Electric Land are seeking to have the amphibian provision altered due to what they believe is overly-restrictive wording.

Advertisement

The restriction currently states: “Works shall be timed to prevent impacts to amphibians by avoiding active amphibian season between March-October.”

But FPC – through their agent Clive Fagg Planning – are arguing that these rules are only supposed to apply to ‘vegetation clearance works’, not to work in general.

The application states this was confirmed through a discussion with Envance, the environmental consultancy on whom Bolton Council bases their planning policy.

This application will go before Bolton Council’s planning department before any decision is made on whether to alter the amphibian provision or not.

Advertisement

Westhoughton Town Council unanimously voted against changing the provision, but they are merely an advisory body and cannot refuse or accept planning applications.

This is the only restriction on that FPC are requesting be changed.

Westhoughton residents fighting the original plans in 2023 (Image: Martini)

All other restrictions, including other restrictions relating specifically relating to amphibians, will remain the same.

The original plans were subject to around 200 objections from local residents.

Advertisement

The plans were initially rejected but were then accepted on appeal.

The Bolton News has contacted Envance for comment.

Source link

Advertisement
Continue Reading

NewsBeat

Man in hospital after Acklam Road crash as driver arrested

Published

on

Man in hospital after Acklam Road crash as driver arrested

Emergency services were called to a collision between a pedestrian and a car on Acklam Road in Middlesbrough, close to the Coronation Inn, at around 11.50am on Saturday (April 18)

Acklam Road in Middlesbrough was closed following a serious crash (Image: THE NORTHERN ECHO)

The injured man was taken to James Cook University Hospital, where he remains in a serious condition.

Cleveland Police said a 36-year-old man was arrested on suspicion of causing serious injury by dangerous driving. He has since been released on bail while enquiries continue.

The road was closed for several hours as officers carried out investigations, reopening later in the evening.

Advertisement

A man remains in hospital with serious injuries as another has been arrested after a serious crash on Acklam Road in Middlesbrough yesterday (April 18). (Image: THE NORTHERN ECHO)

A man remains in hospital with serious injuries as another has been arrested after a serious crash on Acklam Road in Middlesbrough yesterday (April 18). (Image: THE NORTHERN ECHO)

Acklam Road in Middlesbrough was closed following a serious crash (Image: THE NORTHERN ECHO)

A North East Ambulance Service spokesperson said: “We received a call at 11.41am on Saturday 18 April to reports of a road traffic incident on the junction of Acklam Road in Middlesbrough.

“We dispatched an ambulance crew and the medicar to the scene, and transported one patient to James Cook hospital for further treatment.”

Anyone with information is urged to contact us on 101, quoting reference number 072542.

Advertisement

Source link

Continue Reading

NewsBeat

Electric ambulances promise cleaner air for North East

Published

on

Electric ambulances promise cleaner air for North East

The North East Ambulance Service (NEAS) has unveiled a series of new electric vehicles, including response cars, ambulances, and patient transport vehicles, as part of its broader commitment to fleet modernisation and reducing emissions.

The electric vehicles include the Skoda Enyaq Rapid Response Vehicle, Renault E‑Master ambulance, and the Ford E‑Transit ambulance.

(Image: NEAS)

Kevin Scollay, chief executive of NEAS, said: “Moving towards a more sustainable ambulance service is a vital part of our responsibility to the patients and communities we serve.

“It’s an exciting moment for the service and a real opportunity to build momentum as we move into the next phase of our electric vehicle journey.”

Advertisement

The showcase supports the NHS’s net zero target and highlights how ambulances can reduce carbon emissions while maintaining high standards of patient care.

Mr Scollay said: “These electric vehicles have the potential to significantly improve both staff and patient experience.

“Features such as selfloading stretchers can help reduce musculoskeletal injuries and sickness absence, while quicker loading and improved reliability support better response times.”

A  event, held at the NEAS Driver Training Centre in Team Valley, Gateshead, was attended by NHS England, other UK ambulance trusts, vehicle manufacturers, and blue light partners.

Advertisement

Paul Leach, head of ambulance fleet at NHS England, welcomed the progress.

Mr Leach said: “It’s a pleasure to see first‑hand the progress NEAS is making with electric ambulances and how local innovation is helping to shape national strategy.


Read more:


“These vehicles bring clear benefits for patients through improved air quality and for staff through quieter, smoother vehicles that are well‑suited to the demands of the role.”

Advertisement

Dave Parkin, NEAS’s fleet operations manager, highlighted both the environmental and operational benefits of the transition.

Mr Parkin said: “Alongside environmental benefits, we are seeing clear operational advantages, including lower whole life running costs, reduced vehicle downtime and quicker servicing, which improves reliability and supports more efficient use of our fleet.”

Source link

Advertisement
Continue Reading

NewsBeat

Russian strikes kill 2 as Ukraine targets drone factory

Published

on

Russian strikes kill 2 as Ukraine targets drone factory

KYIV, Ukraine (AP) — Russian strikes killed at least two people in Ukraine, officials said Sunday, as the Ukrainian military struck a drone factory in southwestern Russia.

A “massive” nighttime drone strike on Chernihiv in northern Ukraine killed a 16-year-old boy and wounded four others, according to the head of the city’s military administration.

Rescuers found the teenager’s body as they cleared away rubble, Dmytro Bryzhynskyi reported on Telegram on Sunday morning. He said the drone strike also wounded three women and one man. Several houses were set on fire, he added.

Russian drones also attacked the southern city of Kherson on Sunday, local officials reported.

Advertisement

A man died of his wounds after a drone hit a van driving through the city center, according to Oleksandr Prokudin, the head of the regional administration. A second man was hospitalized with blast injuries, regional authorities said.

Russia launched 236 drones into Ukrainian territory overnight into Sunday, Ukraine’s air force reported. Of those, 203 drones were shot down while 32 hit targets in 18 separate locations, it said.

Kyiv says it struck a Russian drone factory

Meanwhile, Ukraine hit a drone factory in the city of Taganrog, Ukraine’s General Staff reported. The site lies some 55 kilometers (35 miles) east of Russian-occupied eastern Ukraine in southwestern Russia.

According to the military, Ukrainian drones sparked a fire at the Atlant Aero factory, which designs and produces strike and reconnaissance drones, as well as components for more powerful UAVs that can carry guided bombs weighing up to 250 kilograms (550 pounds).

Advertisement

Ukraine’s navy said it carried out the attack on the drone factory in southern Russia, using domestically manufactured Neptune cruise missiles.

“This defense enterprise is an important part of the Russian military-industrial complex, where drones were developed and manufactured,” the navy said in an online post.

It also posted images showing a huge cloud of smoke over the city, which it said was the impact of the strikes.

Three people were injured in a nighttime air attack on commercial infrastructure in Taganrog, according to the Russian regional governor, Yuri Slyusar. He did not specify what facility was hit, but said warehouses were set on fire following the strike.

Advertisement

Taganrog Mayor Svetlana Kambulova said the strike damaged “commercial enterprises” in the city, as well as a vocational school and multiple cars.

Russia’s Defense Ministry said its forces shot down 274 Ukrainian drones during the night, as well as guided aerial bombs and a Neptune cruise missile. The ministry did not say how many struck targets.

Ukraine launches inquiry into mass shooting in the capital

Ukraine’s Interior Ministry on Sunday launched an official inquiry into a mass shooting in Kyiv the previous day that killed six people and wounded at least 14 others.

A gunman wielding an automatic weapon killed six people and barricaded himself inside a supermarket with hostages in the Ukrainian capital before he was shot and killed by police, authorities said.

Interior Minister Ihor Klymenko described the attacker’s mental state as “clearly unstable.”

The 58-year-old gunman has not been named, but Ukrainian President Volodymyr Zelenskyy on Saturday said he was born in Russia. Authorities worked to piece together a motive for the violence.

Advertisement

Several police officers were suspended for allegedly failing to respond appropriately in the initial stages of the shooting. Klymenko, the interior minister, described their behavior as “shameful and unworthy” of their role as police officers.

He said there was no plan to toughen gun ownership laws, arguing that guns in the hands of law-abiding citizens had helped the country’s defense against Russia.

The mass shooting — unheard of in wartime Kyiv following Russia’s all-out invasion of Ukraine in 2022 — took place in a busy central district of the city, outside an apartment block and a nearby shopping center, leaving bodies on a crowded street as bystanders fled for safety.

An Associated Press reporter at the scene saw victims’ bodies covered with emergency blankets before they were taken away.

Advertisement

Zelenskyy hits out at U.S. sanctions waiver for Russian oil

Elsewhere, Zelenskyy responded with dismay to the Trump administration’s decision on Friday to extend its pause on sanctions on Russian oil shipments.

“Every dollar paid for Russian oil is money for the war,” Zelenskyy wrote in a post on X, arguing that any additional revenue the Kremlin gets from oil sales “is directly converted into new strikes against Ukraine.”

“That is why it is important that Russian tankers are stopped, not allowed to deliver oil to ports. The aggressor’s oil exports must decrease, and Ukraine’s long-range sanctions continue to work toward that goal,” he added.

The so-called general license, intended to ease supply constraints resulting from the Iran war, means U.S. sanctions will not apply for 30 days on deliveries of Russian oil that has been loaded on tankers as of Friday. It extended a similar 30-day license issued in March for Russian oil that had been loaded by March 11.

Advertisement

___

Follow AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine

Advertisement

Source link

Continue Reading

NewsBeat

Radev’s Progressive Bulgaria surges to a big lead in parliamentary vote, poll shows

Published

on

Radev’s Progressive Bulgaria surges to a big lead in parliamentary vote, poll shows

SOFIA, Bulgaria (AP) — A center-left coalition led by ex-President Rumen Radev will win Bulgaria ‘s parliamentary election, an exit poll suggested Sunday, though the list might not garner enough votes to rule alone, which could prolong a years-long political deadlock in the European Union country.

The election on Sunday was the country’s eighth in five years, illustrating a crippling political impasse that has gripped this Balkan nation.

The poll conducted by Trend research group showed Radev’s Progressive Bulgaria earning 39.2% support, edging out the center-right GERB party of its veteran leader, Boyko Borissov, which is expected to capture 15.1% of the vote. Despite the huge gap between the two groups, the predicted percentage may not be enough for Radev to form a one-party government, and he will face the uphill task of looking for partners to govern.

The exit poll also predicted that voter turnout stood at 43.4%, and that six parties could pass the 4% threshold to enter a fragmented parliament.

Advertisement

Radev said after the initial projections were announced that “we will do our best to prevent having to go to the polls” again.

“It (new election) will be a disaster for Bulgaria,” he said. “It would mean going from crisis to crisis when what we have to do is work very hard to emerge from these crises.”

The snap vote followed the resignation of a conservative-led government amid nationwide protests last December that drew hundreds of thousands, mainly young people, to the streets. The protesters called for an independent judiciary to tackle widespread corruption.

If confirmed in an official tally, the victory of Radev’s coalition could potentially bring to power a left-leaning leader who is seen by critics as pro-Russian. Last weekend, Hungarian voters rejected the authoritarian policies and global far-right movement of Viktor Orbán, who cultivated close ties with Russian President Vladimir Putin.

Advertisement

Radev resigned from the mostly ceremonial presidency in January, a few months before the end of his second term, to launch a bid to lead the government as prime minister.

The 62-year-old former fighter pilot and air force commander has promised to give the nation a fresh start. His supporters are split on those hoping he will put an end to the country’s oligarchic corruption and those lining up behind his Eurosceptic and Russia-friendly views.

Radev’s popularity surged as he has cast himself as an opponent of the country’s entrenched mafia and its ties to high-ranking politicians. At campaign rallies he vowed to “remove the corrupt, oligarchic model of governance from political power.”

Since 2021, the nation of 6.5 million has struggled with fragmented parliaments that produced weak governments, none of which managed to survive more than a year before being brought down by street protests or backroom deals in parliament.

Advertisement

After voting on Sunday, Radev said that Bulgaria now has a historic chance to change the alleged oligarchic model of governance. He urged people to go to the polls because mass “voting is the only way to drown vote-buying in a sea of free votes.”

Though Radev has officially denounced Russia’s invasion of Ukraine, he has repeatedly opposed military aid to Kyiv and has favored reopening talks with Russia as a way out of the conflict.

Radev’s relatively vague campaign has left him open for cooperation with almost any party in the future Parliament, according to Mario Bikarski, senior Eastern and Central Europe analyst at the risk intelligence company Verisk Maplecroft.

Radev, however, seems reluctant to enter a formal coalition with the hard right and openly pro-Russian Revival party, Bikarski said.

Advertisement

Bulgaria is a European Union and NATO member country, joined the eurozone on Jan. 1, shortly after entering the border-free Schengen travel area.

Source link

Advertisement
Continue Reading

NewsBeat

Fire crews at Frasers in Glasgow after ‘reports of smoke’ at store

Published

on

Daily Record

Three appliances attended the scene on Buchanan Street on Sunday afternoon.

Fire crews raced to Frasers in Glasgow city centre after receiving reports of smoke coming from the popular store.

Advertisement

Emergency personnel rushed to the shop at 2.41pm on Sunday, April 19. An alarm was raised following reports of a “small fire”.

Three appliances attended the scene on Buchanan Street, and firefighters discovered a small blaze within the building. The fire was extinguished, and there were no reported injuries, reports Glasgow Live.

The cause of the fire has not been confirmed, and all crews have since left the scene.

A spokesperson for the Scottish Fire and Rescue Service said: “We received a call at 2.41pm to Buchanan Street in Glasgow.

“We sent three appliances due to reports of smoke. There was a small fire that was extinguished by the fire service.

Advertisement

“We are no longer in attendance.”

Frasers has been contacted for comment by our sister title.

Get more Daily Record exclusives by signing up for free to Google’s preferred sources. Click HERE

Source link

Advertisement
Continue Reading

NewsBeat

US importers can begin seeking refunds for nullified tariffs on Monday

Published

on

US importers can begin seeking refunds for nullified tariffs on Monday

NEW YORK (AP) — A refund system for businesses that paid tariffs which the U.S. Supreme Court ruled President Donald Trump imposed without the constitutional authority to do so is scheduled to launch Monday.

Importers and their brokers will be able to begin claiming refunds through an online portal beginning at 8 a.m., according to U.S. Customs and Border Protection, the agency administering the system.

It’s the first step in a complicated process that also might eventually lead to refunds for consumers who were billed for some or all of the tariffs on products shipped to them from outside the United States.

Companies must submit declarations listing the goods on which they collectively put billions of dollars toward the import taxes the court subsequently struck down. If CBP approves a claim, it will take 60-90 days for a refund to be issued, the agency said.

Advertisement

The government expects to process refunds in phases, however, focusing first on more recent tariff payments. Any number of technical factors and procedural issues could delay an importer’s application, so any reimbursements businesses plan to make to customers likely would trickled down slowly.

In a 6-3 decision, the Supreme Court on Feb. 20 found that Trump usurped Congress’ tax-setting role last April when he set new import tax rates on products from almost every other country, citing the U.S. trade deficit as a national emergency that warranted his invoking of a 1977 emergency powers law. International Emergency Economic Powers Act (IEEPA).

Although the court majority did not address refunds in its ruling, a judge at the U.S. Court of International Trade determined last month that companies subjected to IEEPA tariffs were entitled to them.

Not all taxed imports immediately eligible

Customs and Border Protection said in court filings that over 330,000 importers paid a total of about $166 billion on over 53 million shipments.

Advertisement

Not all of those orders quality for the first phase of the refund system’s rollout, which is limited to cases in which tariffs were estimated but not finalized or within 80 days of receiving a final accounting.

To receive refunds, importers have to register for the CPB’s electronic payment system. As of April 14, 56,497 importers had completed registration and were eligible for refunds totaling $127 billion, including interest, the agency said.

System requires accuracy

Meghann Supino, a partner at Ice Miller, said the law firm has advised clients to carefully list in their declarations all of the document numbers for forms that went to CBP to describe imported goods and their value.

“If there is an entry on that file that does not qualify, it may cause the entire entry to be rejected or that line item might be rejected by Customs,” she said.

Advertisement

Supino thinks the portal going live will require composure as well as diligence.

“Like any electronic online program that goes live with a lot of interest, I would expect that there might be some hiccups with the program on Monday,” she said. “So we continue to ask everyone to be patient, because we think that patience will pay off.”

Nghi Huynh, the partner-in-charge of transfer pricing at accounting and consulting firm Armanino, said most companies claiming refunds will have imported a mix of items, and not all will qualify right away.

“It’s about having a clear process in place and keeping track of what’s been submitted and what’s been paid, so nothing falls through the cracks,” she said. “Each file can include thousands of entries, but accuracy is critical, as submissions can be rejected if formatting or data is incorrect.”

Patience with the process

Small businesses have eagerly awaited the chance to apply for refunds. Brad Jackson, co-founder of After Action Cigars in Rochester, Minnesota, said he starting compiling records and preparing to enter information into the system the minute CPB announced the launch date.

The company imports cigars and accessories from Nicaragua and the Dominican Republic. Last year, it paid $34,000 in tariffs and absorbed much of the cost instead of raising customer prices, Jackson said.

Advertisement

Last spring, he had a two-week delay in a shipment due to a missing document, so he is being more careful with refund documents, he said.

“My main concern is the turnaround time,” Jackson said. “A refund process that takes several months to complete doesn’t solve the cash flow problem that it is supposed to fix.”

Will consumers see refunds?

Tariffs are paid by importers, and some companies pass on the tax costs to consumers via higher prices.

The system starting up Monday will refund tariffs directly to the businesses that paid them, which are not obligated to share the proceeds with customers. However, class-action lawsuits that aim to force companies, ranging from Costco to Ray-Ban maker Essilor Luxottica, to reimburse shoppers are winding their way through the U.S. legal system.

Advertisement

Individuals may be more likely to receive refunds from delivery companies like FedEx and UPS, which collected tariffs on imports directly from consumers. FedEx has said it would return tariff refunds to customers when it receives them from the CPB.

“Supporting our customers as they navigate regulatory changes remains our top priority,” FedEx said in a statement. “We are working with our customers as CBP begins processing refunds and plan to begin filing claims on April 20.”

Advertisement

Source link

Continue Reading

Trending

Copyright © 2025