We have a number of clients who have received letters indicating that they have a need to register their business under the Data Protection Agency. While there maybe a need to register under the Data Protection Act 1998 if your business records information on individuals which is processed automatically or stored in a structured filing system, these letters indicating a need to register are unfortunately a scam.

A number of opportunists are currently confusing many businesses in the UK by sending what appears to be official notification of non-registration under the Data Protection Act. The purpose of the letters is to worry the recipient into making a payment of perhaps £100 to register their business.

The letters look like an official government letter. They come from a number of sources with names that begin with “Data Protection…” and ‘Data Registration…’.

These ‘opportunists’ ask for a fee to register your business. The actual Government fee for doing this is £35 (no vat payable). The object is to relieve you of £65 for administering your registration. Once you have paid you are sent a form to sign (this must be the signature of someone in authority within the business: business owner, manager etc). As you can get this form on online (an easy step-by-step form, see link at end) there is NOTHING the opportunist can do, that you cannot do easily for yourself.

The main issue with the opportunist is that their trading name is too close to the actual government body who deal with registrations, therefore, confusing and misleading to you and me. An example is ‘Data Collection Enforcement Agency’: little doubt as to the deception with this name, and the ‘Enforcement’ part is bordering on extortion! There is also the issue of targeting vulnerable businesses for no good reason: the small business owner is the main target.

The Information Commissioner, Elizabeth France, is investigating a number of these rogue traders. Meanwhile, if you receive such a demand you are advised to pass it on to the Office of Fair Trading.

Coincidentally whilst putting this article together we received an e-mail from one of our contacts explaining that she had received a letter from the “The Data Collection Enforcement Agency” asking for £95 to register her company against the Data Protection Notification. She contacted the office of Fair Trading who are investigating this scam and have asked if anyone receives one of these letters that they should ignore it and pass it on to the Fair Trading office for the attention of Michelle Vaughan, Office of Fair Trading, Fleet Bank House, Salisbury Square, London EC4 8JX.

Companies who do get caught by this scam need to enclose a letter explaining why they were duped as the Office of Fair Trading need these to obtain a Court Injunction.

It is however essential that most businesses, no matter how small, who process data on individuals should check to see if they should be registered with the Data Protection Act. To find out more about the Data Protection Act with links to further sources of information and how to register visit www.dpr.gov.uk

The Data Protection web site also lists the names and addresses of the companies who have no connection with the Information Commissioner’s Office. Companies, who wish to complain about correspondence received from these businesses, should again contact their local Trading Standards Office.

If you have any queries regarding this article please contact Douglas Brown, Partner at Nunn Hayward.

Company car drivers who receive fuel from their employers for private motoring face potentially significant increases in their tax bills from April this year.

From April 2003 the present fuel scale charge will be abolished and car tax benefits and bills will be calculated using vehicles’ carbon dioxide (CO2) emissions.

Unwary company car drivers could end up paying hundreds of pounds more in tax. The new calculation will be based on a car’s CO2 emission as a percentage of a set figure – which will be set by the Inland Revenue each year.

For example, in the current year, the scale fuel charge benefit for a 2.0 litre Ford Focus will result in the driver paying a tax bill of £2,850. Using the new formula, the same car will cost its driver £3,600 in 2003: the CO2 based emission is 207g/km, which equals 25% of the set figure of £14,400 = £3,600.

Drivers of the smaller engined Focus 1.6 who also currently have the same scale fuel charge of £2,850 will face a smaller tax bill next year of £2,592, a difference of over £1,000 between the two engine sizes. In this case, the CO2 emission is 174g/km, again 18% x of the set figure of £14,400, which equals a tax charge of £2,592.

Steve Cook Taxation Partner said: “Many drivers will suddenly find themselves faced with very steep rises in their tax bills. The future of company car taxation is to create a trend towards people driving smaller engined cars and more fuel efficient cars, but some people will be caught by higher charges before they are given the option of changing their company car”.

He added: “I strongly recommend individuals and businesses who are considering changing vehicles to review their choice of vehicles in light of the upcoming tax changes. Do watch for new Notices of Coding being issued that increase your taxable income next year.

If you have any queries or would like to learn more contact Steve Cook, Tax Partner or your normal contact.