Business News - August 2009

M&A activity in the UK over the past 6 months has undoubtedly endured a rollercoaster ride as the effects of the recession have been felt by British businesses. As one would expect, businesses have been more cautious in their approach to mergers and acquisitions. Indeed, statistics from Corpfin (part of Experian) indicate that the number of deals that took place between February and August this year, 865, was much lower than the figure from the previous 6 months, 1028. Furthermore, the 865 deals were considerably down on the 1716 deals in the same period from February to August 2008.

HM Revenue & Customs (HMRC) has confirmed the details of a new disclosure initiative that will allow people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate.

Businesses are being warned to undertake more rigorous checks into applicants’ backgrounds as the number of prosecutions for employing illegal workers increased over 500%, according to Giant Precision a business process outsourcer.

HMRC are reminding employers that since the beginning of the current tax year automatic penalties have been introduced for those who do not comply with the National Minimum Wage (NMW) Regulations.

According to government figures, as at the end of April 2009, over 116,000 businesses have agreed time to pay tax arrangements with HMRC to the value of two billion pounds.