Welcome to our round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!
I hope you have a good weekend.Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk
UK Government to crack down on ‘fire and rehire’ practices
The government is taking action against unscrupulous employers that use the controversial practice of ‘fire and rehire’, it has announced.
Last year P&O Ferries sought to evade the law by sacking 786 seafarers without due consultation. Having made no efforts to inform the Business Secretary at the time, they failed to follow best practice or do the right thing for their employees. As a result, the transport Secretary introduced a 9-point plan including primary legislation to tackle these issues.
Through a planned statutory code of practice, the government is protecting employees and cracking down on employers that use controversial dismissal tactics. The code, subject to a consultation first, will make it explicitly clear to employers that they must not use threats of dismissal to pressurise employees into accepting new terms, and that they should have honest and open-minded discussions with their employees and representatives.
‘Fire and rehire’ refers to when an employer fires an employee and offers them a new contract on new, often less-favourable terms. The government has been clear on its opposition to this practice being used as a negotiating tactic and is now making it clear how it expects employers to behave.
This new statutory code of practice will set out employers’ responsibilities when seeking to change contractual terms and conditions of employment, including that businesses must consult with employees in a fair and transparent way when proposing changes to their employment terms.
Once in force, Courts and Employment Tribunals will be able to take the code into account when considering relevant cases, including unfair dismissal. They will have the power to apply a 25% uplift to an employee’s compensation in certain circumstances if an employer is found to not comply with the statutory code.
See: Government cracks down on ‘fire and rehire’ practices - GOV.UK (www.gov.uk)
Minimum wage rates increase from 1 April 2023
Employers should be aware that all minimum wage rates increase on 1 April of each year. This includes all National Minimum Wage rates and the National Living Wage rate.
See the table below that shows the current minimum wage rates and new rates from April 2023:
See: National Minimum Wage and National Living Wage rates - GOV.UK (www.gov.uk)
Selling online and paying taxes
If you regularly sell goods or services through an online marketplace, you could be classed as a ‘trader’.
And if you earn more than £1,000 before deducting expenses through your trading, you will need to pay Income Tax on this.
For tax, an online marketplace is any website or mobile phone app that handles and enables the sale of goods and services from individuals and/or businesses to customers.
If you only sell items occasionally, you can check if you need to tell HMRC about this income.
If you’ve never declared income through a Self-Assessment tax return, you can register for HMRC Online Services.
Please talk to us if you need any advice in this area.
See: Selling online and paying taxes - information sheet - GOV.UK (www.gov.uk)
UK sets out plans to regulate cryptoasset activities – Consultation announced
Plans to protect consumers and grow the economy by regulating cryptoasset activities have been announced by the UK government.
Cryptoassets – commonly known as ‘crypto’ – are a relatively new, diverse, and constantly evolving class of assets that have a range of potential benefits, as well as posing risks to the consumer.
As is common in emerging technology markets, the crypto sector continues to experience high levels of volatility and a number of recent failures have exposed the structural vulnerability of some business models in the sector.
Under plans set out by the government last week, it will seek to regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance.
These proposals will place responsibility on crypto trading venues for defining the detailed content requirements for admission and disclosure documents – ensuring crypto exchanges have fair and robust standards.
The proposals will also strengthen the rules around financial intermediaries and custodians – which have responsibility for facilitating transactions and safely storing customer assets.
In addition, to address industry concerns about the small number of Financial Conduct Authority (FCA) authorised cryptoasset firms who can issue their own promotions, HM Treasury is also introducing a time limited exemption. Cryptoasset businesses that are registered with the FCA for anti-money laundering purposes will be allowed to issue their own promotions, while the broader cryptoasset regulatory regime is being introduced.
This approach delivers on the original policy intention of the measure to promote innovation, enhance consumer protection and ensure that cryptoasset promotions can be held to equivalent standards as promotions of financial services products with similar risk profiles.
The government’s approach to regulation mitigates the most significant risks, while harnessing the advantages of crypto technologies. They state that this enables a new and exciting sector to safely flourish and grow, boosting jobs and investment.
See: UK sets out plans to regulate crypto and protect consumers - GOV.UK (www.gov.uk)
Six weeks for developers to sign contract to fix unsafe buildings
Developers have received legally binding contracts that will commit them to pay to repair unsafe buildings. The government has set a six-week deadline for developers to sign the legal agreements and is warning that companies who fail to sign and comply with the terms of the contract will face significant consequences.
Legislation will be brought forward in the spring, giving the Secretary of State powers to prevent developers from operating freely in the housing market if they fail to sign and comply with the remediation contract.
The contract, which has been drawn up by the Department for Levelling Up, Housing and Communities, will protect thousands of leaseholders living in hundreds of buildings across England. These innocent households would otherwise face costly repairs for serious safety defects, including non-cladding related issues.
Under the contract, developers will commit an estimated £2 billion or more for repairs to buildings they developed or refurbished over the past 30 years. This means that together with the Building Safety Levy, industry is directly paying an estimated £5 billion to make their buildings safe.
The contract also requires developers to reimburse taxpayers where public money has been used to fix unsafe buildings.
See: https://www.gov.uk/government/news/six-weeks-for-developers-to-sign-contract-to-fix-unsafe-buildings
Business Charity Awards 2023
The Business Charity Awards provide the perfect platform to reflect on your efforts, share best practice and reward your achievements within the community.
The Awards recognise the outstanding contribution made by UK businesses to good causes. The awards not only recognise the role that individuals, teams and entire companies play in supporting charitable activity both at home and abroad, but also help to educate the wider business community about the best ways to support good causes.
Charities may enter on behalf of their corporate partners and joint entries from companies and their corporate foundations will also be accepted for their work with charity partners.
The awards are open to companies of all sizes and across all industries.
The deadline for entries 23 February 2023.
See: Home - Business Charity Awards
Selling online and paying taxes
If you regularly sell goods or services through an online marketplace, you could be classed as a ‘trader’.
And if you earn more than £1,000 before deducting expenses through your trading, you will need to pay Income Tax on this.
For tax, an online marketplace is any website or mobile phone app that handles and enables the sale of goods and services from individuals and/or businesses to customers.
If you only sell items occasionally, you can check if you need to tell HMRC about this income.
If you’ve never declared income through a Self-Assessment tax return, you can register for HMRC Online Services.
Please talk to us if you need any advice in this area.
See: Selling online and paying taxes - information sheet - GOV.UK (www.gov.uk)
UK sets out plans to regulate cryptoasset activities – Consultation announced
Plans to protect consumers and grow the economy by regulating cryptoasset activities have been announced by the UK government.
Cryptoassets – commonly known as ‘crypto’ – are a relatively new, diverse, and constantly evolving class of assets that have a range of potential benefits, as well as posing risks to the consumer.
As is common in emerging technology markets, the crypto sector continues to experience high levels of volatility and a number of recent failures have exposed the structural vulnerability of some business models in the sector.
Under plans set out by the government last week, it will seek to regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance.
These proposals will place responsibility on crypto trading venues for defining the detailed content requirements for admission and disclosure documents – ensuring crypto exchanges have fair and robust standards.
The proposals will also strengthen the rules around financial intermediaries and custodians – which have responsibility for facilitating transactions and safely storing customer assets.
In addition, to address industry concerns about the small number of Financial Conduct Authority (FCA) authorised cryptoasset firms who can issue their own promotions, HM Treasury is also introducing a time limited exemption. Cryptoasset businesses that are registered with the FCA for anti-money laundering purposes will be allowed to issue their own promotions, while the broader cryptoasset regulatory regime is being introduced.
This approach delivers on the original policy intention of the measure to promote innovation, enhance consumer protection and ensure that cryptoasset promotions can be held to equivalent standards as promotions of financial services products with similar risk profiles.
The government’s approach to regulation mitigates the most significant risks, while harnessing the advantages of crypto technologies. They state that this enables a new and exciting sector to safely flourish and grow, boosting jobs and investment.
See: UK sets out plans to regulate crypto and protect consumers - GOV.UK (www.gov.uk)
Six weeks for developers to sign contract to fix unsafe buildings
Developers have received legally binding contracts that will commit them to pay to repair unsafe buildings. The government has set a six-week deadline for developers to sign the legal agreements and is warning that companies who fail to sign and comply with the terms of the contract will face significant consequences.
Legislation will be brought forward in the spring, giving the Secretary of State powers to prevent developers from operating freely in the housing market if they fail to sign and comply with the remediation contract.
The contract, which has been drawn up by the Department for Levelling Up, Housing and Communities, will protect thousands of leaseholders living in hundreds of buildings across England. These innocent households would otherwise face costly repairs for serious safety defects, including non-cladding related issues.
Under the contract, developers will commit an estimated £2 billion or more for repairs to buildings they developed or refurbished over the past 30 years. This means that together with the Building Safety Levy, industry is directly paying an estimated £5 billion to make their buildings safe.
The contract also requires developers to reimburse taxpayers where public money has been used to fix unsafe buildings.
See: https://www.gov.uk/government/news/six-weeks-for-developers-to-sign-contract-to-fix-unsafe-buildings
Business Charity Awards 2023
The Business Charity Awards provide the perfect platform to reflect on your efforts, share best practice and reward your achievements within the community.
The Awards recognise the outstanding contribution made by UK businesses to good causes. The awards not only recognise the role that individuals, teams and entire companies play in supporting charitable activity both at home and abroad, but also help to educate the wider business community about the best ways to support good causes.
Charities may enter on behalf of their corporate partners and joint entries from companies and their corporate foundations will also be accepted for their work with charity partners.
The awards are open to companies of all sizes and across all industries.
The deadline for entries 23 February 2023.
See: Home - Business Charity Awards
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