Pro Installer May 2015 - Issue 26 | Page 56

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