56
MAY 2015 PRO INSTALLER
PRO BUSINESS
www.proinstaller.co.uk
CONSUMER
RIGHTS BILL “BE PREPARED”
The Glass and Glazing Federation (GGF) has urged companies to be
prepared ahead of the implementation of the Consumer Rights Act which
was granted Royal Assent and became law on 26 March 2015.
The Act is a major part of the government’s reform of UK consumer
law and is predicted to boost the
economy by £4 billion over the next
decade by streamlining complicated
law from eight pieces of legislation
into one place.
It will also introduce a range of new rights
for consumers when it comes into force on
1st October 2015 including a 30-day time
period to return faulty goods and replacement rights for faulty digital content.
Brian Smith, GGF Home Improvement
Director, commented:
“The new Consumer Rights Act will have
far reaching consequences for all companies in our industry. The GGF is doing
everything in its power to ensure its Members are given the support and information
needed to cope with this new law.”
Vince Cable, Business Secretary, said:
“This is the biggest shake up of consumer
law for a generation, bringing legislation
in line with the fact many people now buy
online. Consumers will now be much better
informed and protected when buying goods
or services on the internet. They will now
be entitled to get for the first time a free
repair or replacement for any faulty digital
content.”
Under the Act, consumers and businesses
will have clearer rights and responsibilities
to those introduced in June 2014 by the
Consumer Contracts Regulations, including:
• consumers having a clear right to demand
that substandard services are redone or
failing that receive a price reduction
• a 30-day time period to return faulty
goods and get a full refund. The law is
currently unclear on how long this period
should last
• consumers being entitled to some money
back after one failed repair of faulty
goods (or one faulty replacement) even if
more than 30 days have passed
• consumers being able to challenge terms
and conditions which are not fair or are
hidden in the small print
Government
defers trivial
benefits
exemption
Plans to make limited company contractors and other small employers
exempt from having to report trivial
benefits have been shelved by the
Government for the time being.
Brian Smith, GGF Home
Improvement Director
Measures have also been included in the
Act to specifically reduce the burdens of
understanding and applying consumer law,
including;
• a new requirement for enforcers such
as Trading Standards Officers to give 48
hours’ notice to businesses when carrying
out routine inspections. Trading Standards Officers will still be able to carry
out unannounced inspections where they
suspect illegal activity
• faster and lower cost remedies for businesses who have been disadvantaged
from breaches in competition law
The GGF has arranged for a presentation
by a Trading Standards Lead Officer, on
the “Likely effect the new Act will have on
our industry” at the GGF Joint Window and
Door Group and Conservatory Association
meeting.
www.ggf.org.uk
‘The new Consumer
Rights Act will
have far reaching
consequences for
all companies in
our industry’
As a result, contractors and small firms
must continue to use HM Revenue and
Customs’ (HMRC) “imprecise” guidance and
“informal” agreements they have for any
benefits in kind under £50.
Previously, employers will have been
considering changing their processes to
reflect the commencement of an exemption
for trivial benefits in kind under £50, but
they will now have to revert to the original
rules.
Although the decision will appear controversial in the eyes of small business owners,
tax legislation experts are largely supportive
of the £50 threshold not going ahead, at
least for now.
A spokesperson for the Association of Taxation Technicians said: “We felt that HMRC’s
understandable zeal to eliminate scope for
potential abuse of the proposed exemption
had undermined its very purpose; namely
the removal of the administrative burden of
reporting tax and NIC on low value benefits.
“We were therefore pleased to see that
the measure had been dropped from the
pre-election Finance Bill.
Steve Webb, employment tax director,
KPMG, believes the delay can be attributed
to a £300 cap on gifts to family members in
close companies being recently announced
as an anti-avoidance tax measure.
The cap, which was unveiled at Budget
2015, was not labelled the cause of the
delay by the Treasury, which it said owed to
the “accelerated parliamentary process” that
the bill was subjected to.
Source: www.taxassist.co.uk