tag:blogger.com,1999:blog-90638991338805032252024-03-18T03:03:47.411+00:00Hillmans Chartered Accountants Blog - Weston-super-MareHillmans Chartered Accountants in Weston-super-Mare offer accounting and tax services to small businesses and tax payers. Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.comBlogger852125tag:blogger.com,1999:blog-9063899133880503225.post-54120192550487898982024-03-15T17:27:00.004+00:002024-03-15T17:27:35.628+00:00 15th March 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>Spring Budget – A budget for long-term growth?</strong><br />Jeremy Hunt, Chancellor of the Exchequer, delivered his Spring Budget 2024 speech on 6 March 2024. This potentially is the last budget before the next general election, which will need to be held before 28 January 2025. The Budget was designed to emphasise the government’s good achievements as well as to appear to lower taxes and curry favour with voters.<br /><br />There was a strong emphasis towards making work pay and most headlines have focused on the cuts in National Insurance contributions for both the employed and self-employed. The Chancellor reiterated his view that lower taxes lead to growth and a more vibrant economy.<br /><br />Efforts were also made to stimulate movement in the housing market with a reduction in capital gains tax for higher earners disposing of residential property. The government hopes that this may incentivise those with second homes and other residential properties to sell them and create additional housing supply for those looking to move home or get on to the property market.<br /><br />However, it was not all good news for taxpayers and the Budget signalled the end of some long-standing tax reliefs for furnished holiday lettings and those who currently have non-domiciled tax status.<br /><br />In their appraisal of the Budget, the Office for Budget Responsibility (OBR) has reported that while economic growth has been disappointing since November, they expect a steeper than expected fall in inflation and interest rates to lead to a strong recovery.<br /><br />The OBR note that the cut in national insurance will be partly recouped through other tax rises. They also note that there is no longer an increase in public services spending and so they feel that the Budget plans allow the Chancellor to meet the government's financial aims on debt, but with only a small margin to spare.<br /><u><br />If you are concerned about any aspect of the Budget and how it may affect your situation, please get in touch with us at any time. We will be happy to help! </u><br /> <br /><strong>Spring Budget - National insurance cuts – what they mean to you as an employer</strong><br />The national insurance cuts in the Spring Budget have made most of the Budget-related headlines. So, what is the effect of this on you as an employer?<br /><u><br />Your employees benefit</u><br />In last year’s autumn statement, employee’s national insurance was cut by 2 percentage points from 12% to 10%. This change went into effect on 6 January 2024.<br /><br />The Spring Budget extended this further by reducing the employee national insurance contribution by a further 2 percentage points, bringing the rate down to 8% from 6 April 2024.<br /><br />If you were planning to pay staff bonuses in your March payroll, then there may be some mileage in seeing if staff would like these payments deferred to April so that they benefit from the lower national insurance rate and keep more of the bonus.<br /><u><br />No change to employer’s national insurance</u><br />This reduction only affects the rate of national insurance paid by employees though. The rate of employer’s national insurance remains unchanged at 13.8% for any wages you pay in excess of £9,100 a year (£175 per week). So for an employer, unfortunately there is no immediate financial benefit from the cut to the employee rate.<br /><u><br />Payroll software</u><br />As an employer, you will need to be sure that your payroll software is updated for the change in rate prior to 6 April 2024. It is likely that most major providers of payroll software will be ready, but it would be a good idea to check this and that you are running the latest version.<br />If the payroll is not updated, then you will deduct the wrong amount of national insurance and will need to correct this later, which may not be straightforward.<br /><u><br />Employment allowance</u><br />As has been the case in recent years, eligible employers can still claim an employment allowance in 2024/25, worth £5,000 per year as a reduction on their total National Insurance liability. Please speak to us if you are not sure how to claim this.<br /><u><br />If you need any help with making sure that your payroll software is updated, please feel free to contact us. We will be happy to help you!</u><br /> <br /><strong>Spring Budget – National insurance cuts – what they mean to you as a self-employed business</strong><br />The Spring Budget further extended the national insurance cuts first announced in last year’s Autumn Statement, bringing good news to all self-employed businesses.<br /><br />The rate of class 4 national insurance, which is added as part of your tax bill at the year end, has been further reduced with effect from 6 April 2024. It will now drop from 9% to 6% for profits between £12,570 and £50,270. The rate for profits over £50,270 will continue to be 2%.<br /><br />If your trade profits for the 2024/25 tax year were £50,000, this rate reduction would give you a saving of £1,302 compared to the 2023/24 tax year. Of course, you will not necessarily feel this saving until you make your 2024/25 self assessment balancing payment on or before 31 January 2026.<br /><br />As announced in last year’s Autumn Statement and further confirmed by the Spring Budget, class 2 national insurance will effectively be abolished. This will save £179.40 a year.<br /><br />You do not need to do anything to benefit from either of these national insurance cuts. The reductions will be automatically applied to the calculation of your tax when your tax return is submitted.<br /><br />If you are self-employed, your class 2 national insurance payments have been ensuring that you accrue entitlement to a range of state benefits, including the state pension. If your profits exceed £6,725 in 2024/25 you will continue to accrue entitlement to state benefits despite not paying class 2 national insurance. If your profits are less than £6,725, or you make a loss, you have the option of making class 2 contributions voluntarily, at £3.45 per week, so that you maintain your state benefit entitlement.<br /><br />The government has announced that it will consult on how it will deliver the final abolition of class 2 national insurance contributions later this year. Once this happens there will likely be a new method or criteria for accruing state benefit entitlements.<br /><u><br />If you are unsure how these national insurance changes affect you personally, please feel free to get in touch and we will be happy to run through the changes with you.</u><br /> <br /><strong>Spring Budget - Furnished Holiday Lettings regime to be abolished</strong><br />If you run a holiday let, then you are likely well aware of the useful tax advantages that holiday lets have had for many years. Because furnished holiday lets can be treated as a trade rather than as a rental property, there are more generous deductions against income available. Also, there has been a significant advantage in property capital gains tax when selling a furnished holiday let.<br /><br />During the Spring Budget, the Chancellor Jeremy Hunt announced that the Furnished Holiday Lettings regime is to be abolished with effect from 6 April 2025.<br /><br />This means that your holiday let profits will need to be calculated and taxed based on the same tax laws as other rental property profits. Unfortunately, that will mean that if your holiday let income remains the same you are likely to see an increase in the amount of tax payable.<br /><br />Particularly disappointing is that if you sell your holiday let after 6 April 2025, Business Asset Disposal Relief, with its potentially low 10% capital gains tax rate, will not be available.<br /><br />While there is another year yet before the abolition happens, there will be measures in place from 6 March 2024 (the day of the Budget announcement) to prevent tax planning steps that may try to manipulate the sale date of a holiday let so that it appears to occur before 6 April 2025.<br /><br />Detailed legislation covering the change has not been released yet, but if you are thinking about selling your holiday let it may be worth giving some early thought to the timing of the sale so that you do not pay more tax than necessary. Of course, as with all tax planning, you should also consider your overall tax situation, any potential downsides, and your personal priorities.<br /><u><br />We can prepare a personalised analysis of how the withdrawal of the furnished holiday letting regime will affect you. Please get in touch and will be happy to talk this through with you.</u><br /> <br /><strong>Spring Budget – High-Income Child Benefit Charge changes mean benefits for more</strong><br />The High Income Child Benefit Charge (HICBC) has attracted a lot of criticism since its introduction because of the way it penalises couples that have a single high earner.<br /><br />Currently, a couple where the two parents both earn £49,000 each are unaffected by the HICBC. However, another couple where one parent earns £60,000 while the other parent doesn't work lose their entire child benefit amount.<br /><br />To reduce this unfairness, the Spring Budget increased the ‘high-income’ threshold from £50,000 to £60,000 with effect from 6 April 2024.<br /><br />Not only that but the HICBC will now be calculated at 1% of the child benefit received for every £200 of income above the threshold. This is a slower rate of clawback than in the 2023/24 tax year and now means that child benefit is only fully clawed back where the income exceeds £80,000, rather than £60,000 in 2023/24.<br /><br />This change means that many more couples will be able to keep their child benefit.<br /><br />The Chancellor, Jeremy Hunt, also announced plans to change the HICBC so that it applies to household rather than individual income. This is expected to happen by April 2026.<br /> <br /><strong>Spring Budget – VAT registration threshold increases</strong><br />The thresholds for VAT registration and deregistration have remained static for the last 7 years, however an increase in the thresholds was announced in the Spring Budget.<br /><br />The new registration threshold is now £90,000, increased from £85,000. The deregistration threshold has also increased to £88,000 (from £83,000).<br />VAT registration becomes compulsory if by the end of any month, your business’s VAT taxable turnover for the previous 12 months goes above the threshold. This needs to be looked at on a rolling monthly basis, and not just at your accounting year end.<br /><br />It is possible to apply for a registration ‘exception’ if you believe that you are only temporarily going above the threshold, for instance, because of winning a large one-off project. Provided you can show evidence as to why your turnover will be below the deregistration threshold in the next 12 months then HM Revenue and Customs are willing to consider making an exception.<br /><br />In view of the rate of inflation since the thresholds were last revised, the latest increase seems to be a token gesture. However, it may help you to stay out of VAT and the administrative work that it brings with it.<br /><u><br />If you think your business turnover is nearing the threshold amounts, please do get in touch with us. We will be happy to confirm whether you need to register and can help you with the process of getting set up for VAT.</u><br /> <br /><strong>Spring Budget – Reduction in capital gains tax higher rate</strong><br />A couple of changes were made to capital gains tax (CGT) allowances and tax rates in the Spring Budget that will be of particular interest to anyone that owns residential property in addition to their own home.<br /><u><br />Annual exemption</u><br />Each individual has a CGT annual exemption – an amount of capital gain that you can make without paying any tax on it. This is being reduced for 2024/25 to £3,000 (currently £6,000). This means that anyone selling capital assets, such as property or shares, will pay more tax.<br /><br />Since we still have a few weeks before the start of the new tax year, if you are currently planning to sell any of your capital assets (and are able to do so before 6 April) then it may be worth giving some thought to the timing of when you do that. Please contact us and we will be happy to give you a personalised recommendation based on your overall tax situation.<br /><u><br />Rates</u><br />The main rates of CGT remain at 10% if your gains fall into your unused basic rate band, or if you are disposing of a business that qualifies for Business Asset Disposal Relief. It is then 20% in most other cases, with the exception of residential property sales.<br /><br />If you sell your own private residence then no CGT will be due, however if you sell a residential property that is not your own private residence then increased CGT rates will apply. From 6 April 2024, the residential property CGT rate will remain at 18% for gains falling into your unused basic rate band but will reduce to 24% (from 28%) for any residential property gains that fall outside of an individual’s basic rate tax band.<br /><br />The government are hoping that this reduction will encourage more activity in the property market, benefiting those looking to move home or get on the property ladder.<br /><u><br />If you are wondering how these changes could affect you, please feel free to contact us at any time and we will be pleased to give you a personalised analysis. Remember too that where CGT applies to a property disposal there can be tax payment and reporting requirements that need to be dealt with within 60 days of the completion date. So, please be sure to get advice in plenty of time.</u><br /> <br /><strong>Salary sacrifice: Potentially a win-win strategy for your business and your employees</strong><br />Business and employees are both constantly looking for ways to optimise their financial strategies. One often overlooked strategy in doing this is salary sacrifice.<br /><br />Salary sacrifice involves an agreement between an employee and their employer to reduce the employee’s salary in exchange for certain non-cash benefits. While it may seem counterintuitive at first glance, salary sacrifice can be a useful tool for saving taxes for both parties involved.<br /><u><br />Benefits for the business</u><br />For a business, implementing salary sacrifice schemes can lead to good tax savings. For instance, offering non-cash benefits such as pension contributions or cycle-to-work schemes in exchange for salary can reduce employers’ National Insurance contributions. This lowers the overall tax burden for the business.<br /><br />The benefits to the business are not just confined to the tax savings though. Offering attractive benefits through salary sacrifice can enhance feelings of job satisfaction for employees and improve staff retention.<br /><u><br />Benefits for the employee</u><br />From an employee perspective, salary sacrifice offers a number of tax-saving opportunities. By opting to receive non-cash benefits instead of additional salary, employees can reduce their taxable income and so reduce the tax they pay.<br /><br />For instance, contributions to a workplace pension are deducted from the employee’s gross salary before tax is applied. Therefore, if an employee sacrifices some of their salary to make additional pension contributions, the amount of tax they pay will reduce.<br /><br />Furthermore, salary sacrifice arrangements can enable employees to access valuable benefits that they might not otherwise be able to afford.<br /><u><br />Are there any downsides?</u><br />While salary sacrifice can be a good tax saving strategy, it is not suitable for every situation.<br /><br />Many salary sacrifice schemes are caught by tax regulations or have set requirements, so it pays to understand these and make sure a scheme will be suitable for your business. Employees too need to carefully assess their individual financial circumstances and priorities before entering into salary sacrifice agreements.<br /><br />In conclusion, salary sacrifice can be a win-win for both businesses and employees. Business can use non-cash benefits to reduce their tax liabilities while enhancing employee satisfaction and retention. Meanwhile, employees can enjoy tax savings and access benefits they find valuable and that contribute to their overall well-being. With careful planning and implementation, salary sacrifice can be a powerful tool for businesses and their employees.<br /><u><br />We have tools that can help you calculate the tax consequences and any potential savings from salary sacrifice arrangements involving company cars, pensions, and bikes. Please feel free to get in touch and we will be happy to help you!</u><br /> <br /><strong>Construction industry steps up efforts to combat work-related stress</strong><br />The Health and Safety Executive (HSE) sponsored Working Minds campaign has announced six new partners from the construction industry.<br /><br />The Contract Flooring Association (CFA), the Chartered Institute of Plumbing and Heating Engineering (CIPHE), Asbestos Removal Contractors Association (ARCA), the National Federation of Demolition Contractors (NFDC), the Electrical Contractors’ Association (ECA) and the National Federation of Roofing Contractors (NFRC) have all committed to the campaign.<br /><br />Stress in the construction industry can be considerable, with long hours and tight deadlines a normal part of working life. Working Minds provides free online learning to help employers in preventing stress and supporting good mental health. The learning tool usually takes less than an hour to complete and helps employers understand what the law requires and how they can comply.<br /><br />Working Minds has five simple risk assessment based steps, which are:<br /></span></p><ul><li><span style="font-family: arial;"><strong>Reach out</strong> and have conversations,</span></li><li><span style="font-family: arial;"><strong>Recognise</strong> the signs and cause of stress,</span></li><li><span style="font-family: arial;"><strong>Respond</strong> to any risks that have been identified,</span></li><li><span style="font-family: arial;"><strong>Reflect</strong> on actions that have been agreed and taken, and</span></li><li><span style="font-family: arial;"><strong>Routine</strong> – to make it the norm to talk about stress and how people are feeling and coping on site.</span></li></ul><span style="font-family: arial;">Employers are legally required to protect workers from stress at work by carrying out and acting on a stress risk assessment. The Working Minds online learning can help employers understand and meet this requirement.<br /><br />The Working Minds website, which includes sector-specific advice for the construction industry and other sectors, can be found here: <a data-cke-saved-href="https://workright.campaign.gov.uk/campaigns/working-minds-sectors/" href="https://workright.campaign.gov.uk/campaigns/working-minds-sectors/">https://workright.campaign.gov.uk/campaigns/working-minds-sectors/</a><br /> <br /><strong>In a mental health emergency – can you share staff data?</strong><br />New guidance has been published by the Information Commissioner’s Office (ICO) to help employers with whether they can share staff data if they have a mental health emergency.<br /><br />An employer may become aware that an employee, because of their mental health, is at risk of causing serious harm to others or themselves. In this situation, the ICO advises that they should feel able to share information with the relevant and appropriate emergency services or health professionals without delay.<br /><br />The guidance helps employers to identify what a mental health emergency is and what they should do, as well as what they could do, in that situation without running the risk of getting into trouble for sharing data.<br /><br />Since a mental health emergency can happen at any time, the guidance also sets out steps employers can take in advance so that they are prepared.<br /><br />See the guidance at: <a data-cke-saved-href="https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/information-sharing-in-mental-health-emergencies-at-work/" href="https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/information-sharing-in-mental-health-emergencies-at-work/">https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/employment/information-sharing-in-mental-health-emergencies-at-work/</a><br /> <br /><strong>Charities given new guidance on decisions about donations</strong><br />The Charity Commission has published new guidance designed to help charities when they face decisions over whether to refuse or return a donation.<br />Generally, the starting point for a charity is to accept donations given to the charity. However, they are certain circumstances where they must refuse a donation and the new guidelines help to make this clearer.<br /><br />The guidelines set out the type of donations that legally must be refused or returned. These include donations received from illegal sources or come with illegal conditions. An example would be where the donation has come from terrorist or other criminal activity.<br /><br />Other situations where there is a legal obligation to refuse or return a donation include where the donation:<br /></span><ul><li><span style="font-family: arial;">has come from someone who does not have the mental ability to decide to donate.</span></li><li><span style="font-family: arial;">cannot legally be given to the charity. This might happen if the donor does not actually own what they are donating.</span></li><li><span style="font-family: arial;">has terms requiring its return. For instance, a donation might have a term that it must be used within a certain period of time, which would require any unused funds to be returned at that time.</span></li></ul><p><span style="font-family: arial;">There are, though, other reasons why a charity might be likely to need to refuse or return a donation, and these are discussed in the guidance. The guidance also reviews steps that a charity might be able to take so that it can accept the donation.<br /><br />The guidelines are available to review here: <a data-cke-saved-href="https://www.gov.uk/guidance/accepting-refusing-and-returning-donations-to-your-charity#what-we-mean-by-a-donation" href="https://www.gov.uk/guidance/accepting-refusing-and-returning-donations-to-your-charity#what-we-mean-by-a-donation">https://www.gov.uk/guidance/accepting-refusing-and-returning-donations-to-your-charity#what-we-mean-by-a-donation</a><br /> <br /><strong>New Companies House powers come into force</strong><br />New powers for Companies House based on the Economic Crime and Corporate Transparency Act 2023 (ECCT Act) finally came into force last week.<br /><br />The new measures allow Companies House to combat the criminal acts and money laundering being carried by criminals abusing the company registration system.<br /><br />The powers include being able to query information and request supporting evidence, make stronger checks on company names, and tackle and remove factually inaccurate information.<br /><br />It will no longer be possible for a company to use a PO Box as their registered office address, and Companies House now have the ability to share data with other government departments and law enforcement agencies.<br /><br />The new measures are accompanied by new criminal offences and civil penalties to help with their enforcement.<br /><br />It is hoped that the new measures will not cause too much additional hassle for genuine businesses.<br /><br />The ECCT Act also introduces other measures, including identity verification and accounts reform, but these will not be introduced until a later date.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/companies-house-begins-phased-roll-out-of-new-powers-to-tackle-fraud" href="https://www.gov.uk/government/news/companies-house-begins-phased-roll-out-of-new-powers-to-tackle-fraud">https://www.gov.uk/government/news/companies-house-begins-phased-roll-out-of-new-powers-to-tackle-fraud</a><br /> <br /><strong>Spring Update –Multiple Dwellings Relief axed from 1 June 2024</strong><br />Multiple Dwellings Relief (MDR) is a stamp duty land tax (SDLT) relief that is currently available if you buy two or more residential properties in a single transaction or a series of linked transactions.<br /><br />It allows the rate of tax to be calculated based on the average value of the properties purchased rather than the aggregate value, which saves SDLT on the overall purchase.<br /><br />The relief was originally intended to promote investment in residential property and increase the amount of private rented houses available. However, an external review initiated by the government has concluded that the relief has not really helped with these aims.<br /><br />Therefore, the Spring Budget announced that MDR will be abolished with effect from 1 June 2024.<br /><br />Provided the contracts on a purchase you might be currently undertaking were exchanged before 6 March 2024 (Budget Day), and there’s no change in the contracts afterwards, then MDR can be claimed regardless of when the purchase is completed.<br /><br />Obviously, MDR can also apply to any purchases where the contracts have not yet exchanged but the transaction will complete before 1 June 2024.<br /><br />If you need help working out whether MDR can apply to your purchase please feel free to get in touch. We will be happy to help you.</span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-58762430763901092562024-03-08T13:26:00.001+00:002024-03-08T13:26:03.927+00:008th March 2024 – Hillmans Weekly Update: Budget 2024<p><span style="font-family: arial;">I hope you are keeping well.</span></p><span style="font-family: arial;"><strong>8th March 2024 – Hillmans Weekly Update: Budget 2024</strong><br /><br />Welcome to our latest 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!<br /><br />Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>BUDGET 2024</strong><br /><br />On 6 March 2024, Chancellor Jeremy Hunt presented his Spring Budget to Parliament. In the knowledge that the government must hold a general election before 28 January 2025, this was a Budget designed to restore confidence and win voters. But on the heels of Britain entering a recession and downgraded Office for Budget Responsibility (OBR) forecasts, the Chancellor had his work cut out. </span></p><p><span style="font-family: arial;">Headlines included further cuts in National Insurance Contributions for workers and the self-employed, a slight increase in the VAT registration threshold and an increase in thresholds to reduce the number of people affected by the high-income child benefit charge. There has also been a cut in capital gains tax for higher earners disposing of residential property. However, income tax rates and thresholds remained static and inheritance tax continues to apply to the largest estates. </span></p><p><span style="font-family: arial;">Below, we talk more about the Budget and what it means for you. </span></p><p><strong><span style="font-family: arial;">INCOME TAX</span></strong></p><p><span style="font-family: arial;">Please note that ‘tax years’ run to 5 April each year and that, for example, 2024/25 signifies the year to 5 April 2025.</span></p><p><span style="font-family: arial;">Your personal allowance</span></p><p><span style="font-family: arial;">Your tax-free personal allowance will remain at £12,570 in 2024/25. The personal allowance is partially withdrawn if your income is over £100,000 and then fully withdrawn if your income is over £125,140. </span></p><p><span style="font-family: arial;">Income tax rates and allowances</span></p><p><span style="font-family: arial;">For 2024/25, income tax rates and thresholds remain frozen at their 2023/24 levels. </span></p><p><span style="font-family: arial;">After your tax-free ‘personal allowance’ has been deducted, your remaining income is taxed in bands in 2024/25 as follows.</span></p><p><span style="font-family: arial;">For the Basic rate, applicable to incomes from £1 to £37,700:</span></p><ul><li><span style="font-family: arial;">• 'Other income' is taxed at 20%.</span></li><li><span style="font-family: arial;">• Savings income is taxed at 20%.</span></li><li><span style="font-family: arial;">• Dividend income is taxed at 8.75%.</span></li></ul><p><span style="font-family: arial;">For the Higher rate, applicable to incomes from £37,701 to £125,140:</span></p><ul><li><span style="font-family: arial;">• 'Other income' is taxed at 40%.</span></li><li><span style="font-family: arial;">• Savings income is taxed at 40%.</span></li><li><span style="font-family: arial;">• Dividend income is taxed at 33.75%.</span></li></ul><p><span style="font-family: arial;">For the Additional rate, applicable to incomes over £125,140:</span></p><ul><li><span style="font-family: arial;">• 'Other income' is taxed at 45%.</span></li><li><span style="font-family: arial;">• Savings income is taxed at 45%.</span></li><li><span style="font-family: arial;">• Dividend income is taxed at 39.35%.</span></li></ul><p><span style="font-family: arial;">‘Other income’ means income other than from savings or dividends. This includes salaries, bonuses, profits made by a sole trader or partner in a business, rental income, pension income and anything else that is not exempt.</span></p><p><span style="font-family: arial;"><strong>So what? </strong>Without inflationary increases to the income tax bands, the Chancellor is effectively imposing an income tax increase; as wages and earnings rise and a larger proportion falls into higher tax bands. This is known as ‘fiscal drag’. </span></p><p><span style="font-family: arial;">Scottish taxpayers</span></p><p><span style="font-family: arial;">If your main residence is in Scotland or you are otherwise classed as a ‘Scottish taxpayer’, the application of income tax rates and bands applies differently where ‘other income’ is concerned. After the ‘personal allowance’ has been deducted, your ‘other income’ is taxed in bands as follows:</span></p><p><span style="font-family: arial;">For the tax year 2024/25:</span></p><ul><li><span style="font-family: arial;">• Starter rate: Incomes from £1 to £2,306 are taxed at 19%.</span></li><li><span style="font-family: arial;">• Basic rate: Incomes from £2,307 to £13,991 are taxed at 20%.</span></li><li><span style="font-family: arial;">• Intermediate rate: Incomes from £13,992 to £31,092 are taxed at 21%.</span></li><li><span style="font-family: arial;">• Higher rate: Incomes from £31,093 to £62,430 are taxed at 42%.</span></li><li><span style="font-family: arial;">• Advanced rate: Incomes from £62,431 to £125,140 are taxed at 45%.</span></li><li><span style="font-family: arial;">• Top rate: Incomes over £125,140 are taxed at 48%.</span></li></ul><p><span style="font-family: arial;">For the tax year 2023/24:</span></p><ul><li><span style="font-family: arial;">• Starter rate: Incomes from £1 to £2,162 are taxed at 19%.</span></li><li><span style="font-family: arial;">• Basic rate: Incomes from £2,163 to £13,118 are taxed at 20%.</span></li><li><span style="font-family: arial;">• Intermediate rate: Incomes from £13,119 to £31,092 are taxed at 21%.</span></li><li><span style="font-family: arial;">• Higher rate: Incomes from £31,093 to £125,140 are taxed at 42%.</span></li><li><span style="font-family: arial;">• Top rate: Incomes over £125,140 are taxed at 47%.</span></li></ul><p><span style="font-family: arial;">The Scottish Budget was held on 19 December 2023 and made changes including the introduction of the new ‘advanced rate’ of income tax for 2024/25. </span></p><p><span style="font-family: arial;">Tax on savings income</span></p><p><span style="font-family: arial;">A savings allowance determines how much savings income you can receive at 0% taxation, instead of the usual tax rates for savings income as shown above.</span></p><p><span style="font-family: arial;">This continues to be set at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. </span></p><p><span style="font-family: arial;">Further, interest income from an Individual Savings Account (ISA) continues to be exempt from tax.</span></p><p><span style="font-family: arial;">Tax on dividend income</span></p><p><span style="font-family: arial;">A dividend allowance determines how much dividend income you can receive at 0% taxation, instead of the usual tax rates for dividend income as shown above.</span></p><p><span style="font-family: arial;">As expected, this allowance will drop to £500 in 2024/25, down from the £1,000 2023/24 allowance. </span></p><p><span style="font-family: arial;">However, dividend income from a ‘stocks and shares’ ISA continues to be exempt from tax.</span></p><p><span style="font-family: arial;">Individual Savings Accounts (ISAs)</span></p><p><span style="font-family: arial;">The limit on how much you can save into ISAs (including cash and stocks and shares ISAs) in 2024/25 remains at £20,000 overall. </span></p><p><span style="font-family: arial;">The Chancellor did announce that the government will introduce a new ‘UK ISA’ with an additional allowance of £5,000 a year but this is subject to consultation, and we do not yet have a start date.</span></p><p><span style="font-family: arial;">The high-income child benefit charge</span></p><p><span style="font-family: arial;">In an effort to reduce unfairness, the thresholds for the high-income child benefit charge (HICBC) will be increased from 2024/25.</span></p><p><span style="font-family: arial;">You may have to pay the HICBC if you are considered to have ‘high income’ and child benefit is being paid in relation to a child that lives with you, regardless of whether you are a parent of that child. If you are living with another person in a marriage, civil-partnership or long-term relationship, you will only be liable to HICBC if you are the higher earner of the two of you.</span></p><p><span style="font-family: arial;">For the tax year 2024/25:</span></p><p><span style="font-family: arial;">The 'high-income' threshold for Child Benefit is £60,000.</span></p><p><span style="font-family: arial;">The income level at which Child Benefit is fully clawed back is £80,000.</span></p><p><span style="font-family: arial;">For the tax year 2023/24:</span></p><p><span style="font-family: arial;">The 'high-income' threshold for Child Benefit is £50,000.</span></p><p><span style="font-family: arial;">The income level at which Child Benefit is fully clawed back is £60,000.</span></p><p><span style="font-family: arial;">From 2024/25, the HICBC will be calculated at 1% of the child benefit received for every £200 of income above the threshold. This is a slower rate of claw back than in 2023/24 and now means that child benefit is only fully clawed back where income exceeds £80,000, rather than £60,000 in 2023/24. </span></p><p><span style="font-family: arial;">The HICBC does not apply if the child benefit claimant opts out from receiving the payments.</span></p><p><span style="font-family: arial;">The Chancellor also announced plans to administer the HICBC on the basis of total household income, rather than the income of the highest earner in the household, by April 2026.</span></p><p><span style="font-family: arial;"><strong>So what?</strong> Disregarding for this purpose the other changes announced in the Budget, if we take a couple claiming child benefit in respect of two children and the higher earner earns £70,000, the household will be £1,106 better off than if the threshold had not been increased. If the higher earner instead earns £60,000, the household will be £2,212 better off in 2024/25 and the higher earner will not be required to submit a self-assessment tax return in respect of the HICBC.</span></p><p><strong><span style="font-family: arial;">EMPLOYMENT TAXES</span></strong></p><p><span style="font-family: arial;">For employees</span></p><p><span style="font-family: arial;">As announced in Autumn Statement 2023 and in effect since 6 January 2024, the main rate of Class 1 National Insurance Contributions (NICs) has already reduced from 12% to 10%. </span></p><p><span style="font-family: arial;">In the Budget, the Chancellor cut this by a further 2 percentage points to 8%, taking effect from 6 April 2024. </span></p><p><span style="font-family: arial;">For 2024/25, this combined 4% reduction will apply to your annual earnings between £12,570 and £50,270. The NIC rate on your earnings above £50,270 a year remains at 2%. </span></p><p><span style="font-family: arial;"><strong>So what? </strong>This combined NIC reduction means that someone with employment income of, say, £50,000 will pay £1,497 less NICs in 2024/25 than if the rate had remained at 12%. Or, to look at it another way, their monthly pay packet will increase by almost £125. </span></p><p><span style="font-family: arial;">For employers</span></p><p><span style="font-family: arial;">There have been no changes to the rate or thresholds for employer’s Class 1 NICs, which remains at 13.8% for wages paid in excess of £9,100 a year (£175 per week). For eligible employers, the employment allowance remains at £5,000 per year, reducing their total employer’s NIC liability by this sum. </span></p><p><span style="font-family: arial;">Benefits in kind</span></p><p><span style="font-family: arial;">Employees are required to pay income tax on certain non-cash benefits. For example, the provision of a company car constitutes a taxable ‘benefit in kind’. Employers also pay Class 1A NIC at 13.8% on the value of benefits.</span></p><p><span style="font-family: arial;">The set percentages used to calculate company car benefits are fixed until 5 April 2026 before slight increases apply to most car types, including electronic and ultra-low emission, from 6 April 2026.</span></p><p><span style="font-family: arial;">The figures used to calculate benefits-in-kind on employer-provided vans, van fuel (for private journeys in company vans), and car fuel (for private journeys in company cars) remain fixed at their 2023/24 levels in 2024/25. These are:</span></p><ul><li><span style="font-family: arial;">• Van benefit £3,960</span></li><li><span style="font-family: arial;">• Van fuel benefit £757</span></li><li><span style="font-family: arial;">• Car fuel benefit multiplier £27,800</span></li></ul><p><strong><span style="font-family: arial;">NATIONAL MINIMUM WAGE (NMW)</span></strong></p><p><span style="font-family: arial;">Employers must pay their employees at least the national living wage (for workers aged over 21) / national minimum wage. The minimum hourly rates change on 1 April each year and depend on the worker’s age and if they are an apprentice. </span></p><p><span style="font-family: arial;">For the period 1 April 2024 – 31 March 2025:</span></p><ul><li><span style="font-family: arial;">• Age 23 and over: £11.44 per hour</span></li><li><span style="font-family: arial;">• Age 21 and over (21-22 year old rate): £8.60 per hour</span></li><li><span style="font-family: arial;">• Age 18-20 year old rate: £6.40 per hour</span></li><li><span style="font-family: arial;">• Age 16-17 year old rate: £6.40 per hour</span></li><li><span style="font-family: arial;">• Apprentice rate: £6.40 per hour</span></li></ul><p><span style="font-family: arial;">For the period 1 April 2023 – 31 March 2024:</span></p><ul><li><span style="font-family: arial;">• Age 23 and over: £10.42 per hour</span></li><li><span style="font-family: arial;">• Age 21 and over (21-22 year old rate): £10.18 per hour</span></li><li><span style="font-family: arial;">• Age 18-20 year old rate: £7.49 per hour</span></li><li><span style="font-family: arial;">• Age 16-17 year old rate: £5.28 per hour</span></li><li><span style="font-family: arial;">• Apprentice rate: £5.28 per hour</span></li></ul><p><span style="font-family: arial;">These increases are not insubstantial, and the affordability of the rates will need to be carefully considered by employers when planning their headcount for the year ahead.</span></p><p><strong><span style="font-family: arial;">NATIONAL INSURANCE FOR THE SELF-EMPLOYED</span></strong></p><p><span style="font-family: arial;">Self-employed individuals with profits of more than £12,570 a year pay two types of NIC: Class 2 and Class 4. Two key changes come into effect from 6 April 2024, as previously announced in Autumn Statement 2023 and further extended in this Budget:</span></p><ol><li><span style="font-family: arial;">1. The main rate of Class 4 NICs will be cut from 9% to 6% in 2024/25. Class 4 NICs will continue to be calculated at 2% on profits over £50,270. </span></li><li><span style="font-family: arial;">2. Class 2 NICs will effectively be abolished, saving £179.40 per annum. </span></li></ol><p><span style="font-family: arial;"><strong>So what? </strong>This NIC reduction means that a sole trader with, say, trade profits of £50,000 will pay £1,302 less NICs in 2024/25 than will be due for the 2023/24 tax year. Just be aware that this saving may not be felt until the 2024/25 self-assessment balancing payment is made on or before 31 January 2026.</span></p><p><span style="font-family: arial;">Entitlement to state benefits including the state pension</span></p><p><span style="font-family: arial;">If you are self-employed, your Class 2 NIC payments have ensured you accrue entitlement to a range of state benefits, including the state pension. If your profits exceed £6,725 in 2024/25 you will continue to accrue entitlement to state benefits despite not paying Class 2 NICs. If your profits are less than £6,725, or you make a loss, you may need to pay Class 2 NICs on a voluntary basis to maintain your state benefit entitlement. </span></p><p><strong><span style="font-family: arial;">VAT</span></strong></p><p><span style="font-family: arial;">From 1 April 2024, the VAT registration threshold and deregistration thresholds will each increase by £5,000 to £90,000 and £88,000 respectively. The thresholds had previously been frozen at £85,000 and £83,000 since 1 April 2017. There have been no changes to the rates of VAT and the standard rate continues to be set at 20%.</span></p><p><strong><span style="font-family: arial;">CORPORATE TAXES</span></strong></p><p><span style="font-family: arial;">Rates from 1 April 2024</span></p><p><span style="font-family: arial;">Corporation tax rates and thresholds remain at the levels used in the year to 31 March 2024 as follows:</span></p><p><span style="font-family: arial;">Financial year to 31 March 2025</span></p><p><span style="font-family: arial;">Main rate: 25%</span></p><p><span style="font-family: arial;">Small profits rate: 19%</span></p><p><span style="font-family: arial;">Lower threshold: £50,000</span></p><p><span style="font-family: arial;">Upper threshold: £250,000</span></p><p><span style="font-family: arial;">Marginal relief fraction: 3/200</span></p><p><span style="font-family: arial;">Effective marginal relief rate: 26.5%</span></p><p><span style="font-family: arial;">Companies with profits between the lower and upper thresholds will qualify for marginal relief, which means they pay tax at 19% up to the lower threshold and at 26.5% on the remainder of the profits. </span></p><p><span style="font-family: arial;">The thresholds must be equally shared between companies in a group and those controlled by the same person or persons.</span></p><p><span style="font-family: arial;">It has been confirmed in the Budget that the same rates and thresholds will also apply in the year to 31 March 2026.</span></p><p><span style="font-family: arial;">Research & Development (R&D) reliefs</span></p><p><span style="font-family: arial;">For company accounting periods commencing on or after 1 April 2024, a new R&D scheme will come into effect, merging the current R&D Expenditure Credit (RDEC) scheme (for larger companies) with the Small and Medium Enterprise (SME) scheme. There will also be a second new R&D scheme for ‘R&D intensive SMEs’ along with other amendments as part of a government campaign to tackle fraud and abuse of the scheme. </span></p><p><span style="font-family: arial;">These are significant changes and come on top of a raft of changes already seen in 2023. </span></p><p><span style="font-family: arial;">Any company claiming (or considering claiming) R&D reliefs will need enhanced support to adopt the new rules and framework and make successful claims. Please do get in touch if we can assist you with this.</span></p><p><span style="font-family: arial;">Annual Tax on Enveloped Dwellings (ATED)</span></p><p><span style="font-family: arial;">Companies and some other entities may need to file ATED returns or pay ATED if they hold residential property. The rates of ATED will increase from 1 April 2024 so please contact us if you require any support with this.</span></p><p><strong><span style="font-family: arial;">BUSINESS TAX</span></strong></p><p><span style="font-family: arial;">Tax relief for expenditure on plant and machinery</span></p><p><span style="font-family: arial;">By way of a £1million Annual Investment Allowance (AIA) and, for companies only, unlimited ‘full expensing’, your business is likely to be able to claim 100% tax relief on qualifying equipment purchases. </span></p><p><span style="font-family: arial;">Conditions may apply and, in some cases, the rate of tax relief in the year of purchase can be 50% or less. In particular, some connected or group businesses need to share their £1million AIA limit between them and this is something that HMRC are currently focusing on so please do talk to us if you have any concerns. </span></p><p><span style="font-family: arial;">Motor vehicles</span></p><p><span style="font-family: arial;">While vans and commercial vehicles will often qualify for 100% tax relief when purchased, the rate of tax relief for a car will be less, unless it is both brand-new and electric. The cost of buying other cars is tax relieved by way of an 18% or 6% annual writing down allowance, based on whether the car has carbon dioxide emissions of up to or more than 50g/km respectively.</span></p><p><span style="font-family: arial;">HMRC had planned to update their guidance so that double-cab pick-ups with a payload of 1 tonne or more were reclassified from commercial goods vehicles to cars from 1 July 2024. This would have significantly hindered the tax reliefs available. However, in February they backtracked and committed to retaining the commercial vehicle tax treatment. Although it was not part of the Budget speech, legislation will soon follow to cement the commercial vehicle approach. This applies for both capital allowances and benefit-in-kind purposes (above).</span></p><p><span style="font-family: arial;">Making Tax Digital (MTD) </span></p><p><span style="font-family: arial;">Under the government’s MTD initiative, businesses will keep digital records and send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. These requirements will be phased in from April 2026, starting with income tax paying sole traders and property landlords with gross income over £50,000. </span></p><p><span style="font-family: arial;">HMRC is re-launching its optional beta testing, with eligible businesses able to opt-in from April 2024. Please talk to us if you’d like to know more.</span></p><p><span style="font-family: arial;">Using the cash basis to compute business profits</span></p><p><span style="font-family: arial;">As first announced at last year’s Autumn Statement, it should be remembered that most unincorporated businesses will default onto the ‘cash basis’ of calculating taxable profits for the 2024/25 tax year and onwards. As a simplification measure for some, it will mean that your annual profits are calculated based on when you receive payments from customers and make payments to suppliers. Adjustments for stock and amounts owing by or to you will not be possible. </span></p><p><span style="font-family: arial;">Some small businesses are already using the cash basis voluntarily and won’t be affected by the change. </span></p><p><span style="font-family: arial;">It is possible to ‘opt-out’ of the cash basis and instead use traditional ‘accruals’ accounts (with adjustments for stock etc.) for tax purposes. The decision will affect the timing of your tax liabilities and will ultimately be based on your personal circumstances. Please talk to us for more information and to plan the approach for your business.</span></p><p><span style="font-family: arial;">Tax relief for training costs</span></p><p><span style="font-family: arial;">Alongside the Budget, HMRC has published updated guidance on tax deductions available to sole traders and self-employed individuals. Amid the AI revolution, the guidance clarifies that tax relief can be claimed on training costs relating to updating existing skills, maintaining pace with technological advancements, or changes in industry practices. </span></p><p><strong><span style="font-family: arial;">CAPITAL GAINS TAX</span></strong></p><p><span style="font-family: arial;">Annual exemption</span></p><p><span style="font-family: arial;">The capital gains tax (CGT) annual exemption will drop to £3,000 in 2024/25, down from £6,000 in 2023/24. This change will mean that those selling capital assets such as property or shares will pay more tax. </span></p><p><span style="font-family: arial;">Rates</span></p><p><span style="font-family: arial;">The main rates of CGT remain at 10% for basic rate taxpayers (or those disposing of a business that qualifies for Business Asset Disposal Relief) and then 20% in most other cases. </span></p><p><span style="font-family: arial;">However, increased rates apply when the asset being sold is a residential property that is not your private residence. From 6 April 2024, the residential property CGT rate will remain at 18% for basic rate taxpayers but will reduce from 28% to 24% for those with residential property gains falling outside of their basic rate band. </span></p><p><span style="font-family: arial;">This measure is intended to generate more transactions in the property market, benefitting those looking to move home or get on the property ladder.</span></p><p><span style="font-family: arial;">Remember, for property disposals that give rise to CGT, tax payment and reporting obligations can arise just 60 days after your completion date so make sure you take advice in good time.</span></p><p><strong><span style="font-family: arial;">TAX REGIME FOR FURNISHED HOLIDAY LETS</span></strong></p><p><span style="font-family: arial;">If you let out residential or commercial property, the profits are taxed as part of your ‘other income’. If you sell property that has been rented out, capital gains tax is likely to apply. Generally, rental business activity attracts fewer tax reliefs than trading ventures. However, if a residential property meets the strict definition of a ‘furnished holiday let’ (FHL), enhanced tax relief rules are currently available.</span></p><p><span style="font-family: arial;">It has been announced in the Budget that, from 6 April 2025, the concept of FHLs and their beneficial tax treatment will be abolished. Going forward, profits from FHLs will be taxed in the same way as any other rental property profits. If you own FHLs this will be disappointing, especially the loss of your possible claim to ‘Business Asset Disposal Relief’ on any future sale. </span></p><p><span style="font-family: arial;">While the abolition won’t happen until 6 April 2025, it should be noted that there will be measures in place from Budget Day (6 March 2024) to prevent tax planning steps that artificially accelerate the disposal date of an FHL to a date before 6 April 2025. </span></p><p><span style="font-family: arial;">Please get in touch for a more detailed analysis of how the withdrawal of the FHL status will affect you.</span></p><p><strong><span style="font-family: arial;">INHERITANCE TAX</span></strong></p><p><span style="font-family: arial;">Rates and thresholds</span></p><p><span style="font-family: arial;">The main rate of inheritance tax remains at 40%, reduced to 36% for estates where 10% or more is left to charity.</span></p><p><span style="font-family: arial;">The inheritance tax nil rate band continues to be frozen at £325,000. The residence nil rate band will also remain at £175,000 and the residence nil rate band taper will continue to start at £2million.</span></p><p><span style="font-family: arial;">Agricultural property and woodlands relief</span></p><p><span style="font-family: arial;">From 6 April 2024 the scope of agricultural property and woodlands relief will be limited to property in the UK. Property located in the European Economic Area (EEA), the Channel Islands and the Isle of Man will be treated the same as other property located outside the UK. </span></p><p><span style="font-family: arial;">Payment of inheritance tax before probate</span></p><p><span style="font-family: arial;">From 1 April 2024, personal representatives of estates will no longer need to have sought commercial loans to pay inheritance tax before applying to obtain a ‘grant on credit’ from HMRC. This is a welcome relaxation.</span></p><p><strong><span style="font-family: arial;">UK RESIDENCY AND DOMICILE</span></strong></p><p><span style="font-family: arial;">Significant tax changes have been announced for individuals resident in the UK but not permanently settled here (known as non-domiciled). </span></p><p><span style="font-family: arial;">While individuals resident and domiciled in the UK must pay UK taxes on their worldwide income and capital gains, it is possible for UK resident but non-domiciled individuals to claim a ‘remittance basis’ of taxation for overseas income and capital gains. In return for paying a remittance basis charge of up to £60,000 a year, non-domiciled individuals are able to shelter their overseas income and capital gains from UK taxation, as long as they do not bring (remit) those monies to the UK. </span></p><p><span style="font-family: arial;">The remittance basis of taxation will be abolished from 6 April 2025. It will be replaced with a simpler residence-based regime and new arrivals to the UK will not pay UK tax on their overseas income and gains for their first 4 years of UK residence.</span></p><p><span style="font-family: arial;">In addition, inheritance tax rules apply to the worldwide assets of a UK-domiciled individual but, broadly, just to the UK assets of a non UK-domiciled individual. The non-domicile rules for inheritance tax are also likely to move to a residence-based regime from 6 April 2025 but the government plans to consult on options.</span></p><p><span style="font-family: arial;">If you are not domiciled in the UK, please talk to us about how the new rules and the transition to them will affect you.</span></p><p><strong><span style="font-family: arial;">STAMP DUTY</span></strong></p><p><span style="font-family: arial;">England and Northern Ireland - thresholds</span></p><p><span style="font-family: arial;">The £250,000 0% threshold for Stamp Duty Land Tax (SDLT), applicable in England and Northern Ireland, remains unchanged until 31 March 2025. The same is true of the £425,000 0% threshold for first-time buyers.</span></p><p><span style="font-family: arial;">These thresholds are set to revert to £125,000 and £300,000 respectively from 1 April 2025 and while there were rumours that the increased thresholds would be extended beyond 2025, no mention was made of this in the Budget.</span></p><p><span style="font-family: arial;">England and Northern Ireland - Multiple Dwellings Relief</span></p><p><span style="font-family: arial;">Multiple Dwellings Relief (MDR) is a relief currently available when buying two or more dwellings in a single transaction or series of linked transactions. </span></p><p><span style="font-family: arial;">MDR is to be abolished for purchases of residential property in England and Northern Ireland with an effective date on or after 1 June 2024.</span></p><p><span style="font-family: arial;">Transitional rules apply to the abolition, so that MDR can still be claimed in some situations where contracts were exchanged on or before 6 March 2024, regardless of when completion takes place. </span></p><p><span style="font-family: arial;">First-time Buyers’ Relief: leases and nominees</span></p><p><span style="font-family: arial;">Following the Budget, the definition of a ‘First-time Buyer’ has been amended. Anyone who leases a residential property via a nominee or bare trust with an effective date (usually the completion date) on or after 6 March 2024 will potentially be eligible for First-time Buyers’ Relief, in the same way as any other qualifying first-time buyer. Transitional rules may apply where contracts were exchanged prior to 6 March but completed or substantially performed afterwards.</span></p><p><span style="font-family: arial;">Scotland and Wales</span></p><p><span style="font-family: arial;">Property purchasers in Scotland and Wales do not pay SDLT. Rather, if you buy a property in Scotland you pay Land and Buildings Transaction Tax, and in Wales you pay Land Transaction Tax. No amendments to these transaction taxes have been announced.</span></p><p><strong><span style="font-family: arial;">ALCOHOL AND FUEL DUTIES</span></strong></p><p><span style="font-family: arial;">In Budget news, the government has confirmed that alcohol duty will remain frozen until 1 February 2025 and that the previous 5p per litre cut in fuel duty will remain in place until March 2025.</span></p><p><strong><span style="font-family: arial;">CHARITIES AND GIFT AID</span></strong></p><p><span style="font-family: arial;">In anticipation of enhanced protections for consumers who take out subscription contracts, the government will soon introduce rules to ensure that charities which operate subscription models can continue to claim Gift Aid on those subscriptions.</span></p><p><strong><span style="font-family: arial;">IN CONCLUSION</span></strong></p><p><span style="font-family: arial;">As we move into 2024/25, there are a lot of tax changes on the horizon, with more likely to come alongside the general election. Where the government gives with one hand (e.g. NIC cuts for workers) they may take with the other hand (e.g. frozen income tax thresholds) and it can be hard to keep up.</span></p><p><span style="font-family: arial;">We are here to work alongside you and help you prosper so please do get in touch at any time. </span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-31549895793946532072024-03-01T07:26:00.006+00:002024-03-01T07:26:41.645+00:001st March 2024 – Hillmans Weekly Update<p><span style="background-color: #fefdfa; color: #333333;"><span style="font-family: arial;">Welcome to our latest 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!</span></span></p><span style="background-color: #fefdfa; color: #333333;"><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk/" style="color: #7fba00; text-decoration-line: none;" target="_blank">https://www.hillmans.co.uk</a></span></span><div><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;"><br /></span></span></b></div><div><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Companies House fees to increase
from 1 May 2024</span></span></b></div><div>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Companies House have reviewed the fees they
charge and have released details of the new charges that will apply from 1 May
2024.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Companies House work on a cost recovery
basis, so the fees are set to cover their costs rather than to make a profit.
Due to the measures introduced by the Economic Crime and Corporate Transparency
(ECCT) Bill, costs for Companies House are increasing and so the fees are being
adjusted in part to cover this.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The increases are quite significant. For
instance, the fee for an annual confirmation statement, if submitted digitally,
will rise to £34. The cost is currently £13. Depending on your current filing
date, it may be worth filing early to pay the lower fee one last time.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">For a full list of the prices from 1 May
2024, see: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/">https://changestoukcompanylaw.campaign.gov.uk/changes-to-companies-house-fees/</a></span></span><span style="color: #595959; line-height: 107%;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The twin-cab pickup makes a
U-turn: What happened?</span></span></b></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">In an announcement made on 19 February, the government
confirmed that twin-cab pickup vehicles with payloads of 1 tonne or more will
continue to be treated as goods vehicles for both capital allowances and
benefit-in-kind purposes.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">This is an example of what has become known
as a ‘U-turn’. On 12 February, HM Revenue & Customs (HMRC) had updated its
guidance on the tax treatment of twin-cab pickups following a 2020 Court of
Appeal judgment. The guidance had confirmed that, from 1 July 2024, twin-cab
pickups with a payload of one tonne or more would be treated as cars rather
than goods vehicles for both capital allowances and benefit-in-kind purposes.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The updated treatment was extremely unpopular
because goods vehicles attract more beneficial tax treatment than cars. For
example, a business buying a goods vehicle is able to claim more tax relief, in
the form of capital allowances, than if it were to buy a car. Similarly, if an
employee were provided with an employer-owned vehicle, the income tax and
employer’s National Insurance charge on the benefit-in-kind would be lower on a
goods vehicle than on a car.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The government says that it has listened to
carefully to views from the farming and motoring industries and has U-turned
because the 12 February guidance update “could have an impact on businesses and
individuals in a way that is not consistent with the government’s wider aims to
support businesses”.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">The U-turn means that that the capital
allowances and benefit-in-kind tax treatment of twin-cab pickups with payloads
of 1 tonne or more will continue to be aligned with the VAT treatment. For more
information, see: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.gov.uk/government/news/update-on-hmrc-double-cab-pick-up-guidance">Update
on HMRC Double Cab Pick Up Guidance - GOV.UK (www.gov.uk)</a></span></span></span><span style="color: #595959; font-family: arial;"> </span></p>
<p class="MsoNormal"><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Update expected to the Code of
Practice on requests for flexible working<o:p></o:p></span></span></b></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Advisory, Conciliation and Arbitration
Service (ACAS) has released a final draft of a new Code of Practice on requests
for flexible working. The draft Code received consultation in 2023 and is now
awaiting parliamentary approval. If it is approved, then the new Code is
expected to come into force in April 2024.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Flexible working refers to any working
arrangement that meets the needs of the employee and employer on where, when,
and how an employee works. This would include part-time work, homeworking,
hybrid working, job sharing, compressed hours, term-time working and so on.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Employers and employees can make informal arrangements,
but if an employee makes a statutory request for flexible working, then the
Code must be followed.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The new Code introduces a number of new
changes. These include:<o:p></o:p></span></span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Right to request<o:p></o:p></span></span></u></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">An employee will now have a statutory right
to request flexible working from the first day of their employment. Currently
they cannot do so until they have given 26 weeks of employment service.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Currently there is a limit of one request
that an employee can make in any 12 month period. However, under the new Code
they will be able to make two statutory requests in any 12-month period, with a
maximum of one live at any one time.<o:p></o:p></span></span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Handling a request<o:p></o:p></span></span></u></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Currently, employers are required to consider
a request and can reject it on the basis of a business reason that is set out
in the Employment Rights Act 1996. The new Code is more positive and
specifically states: “Employers must agree to a flexible working request unless
there is a genuine business reason not to”. The business reasons for rejecting
a request continue to be those set out in the legislation.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The new Code introduces requirements to
prevent discrimination where a request is because an employee is seeking a
reasonable adjustment because of a disability.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">While the current Code encourages a
discussion with the employee, particularly where the employer rejects or wants
to modify the request, the new code specifies that unless the employer decides
to agree to the employee’s written request in full, they must now consult the
employee. The new Code provides guidance on how the meeting should be held and
its content.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The new Code requires that a request be
decided on within a statutory two-month period including any appeal. Currently
three months are allowed.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The new Code also now specifies that the
decision is communicated in writing and what this should contain. It also sets
out appeal procedures.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">Until the new Code receives parliamentary
approach, then any statutory requests you receive can still be handled in
accordance with the current Code of Practice (</span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.acas.org.uk/acas-code-of-practice-on-flexible-working-requests/html">https://www.acas.org.uk/acas-code-of-practice-on-flexible-working-requests/html</a></span></span><span style="color: #595959; line-height: 107%;">)<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">However, with parliamentary approval expected
by April, it would be well to be prepared with your policies.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">To review the new Code of Practice, please
see: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.acas.org.uk/acas-code-of-practice-on-flexible-working-requests/2024">https://www.acas.org.uk/acas-code-of-practice-on-flexible-working-requests/2024</a></span></span><span style="color: #595959; line-height: 107%;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><b><span style="color: #595959; line-height: 107%;">Are you getting minimum wage
payments right?</span></b><span style="color: #595959; line-height: 107%;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Last Tuesday, the government named and shamed
524 businesses for failing to pay the minimum wage to their staff.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">These failures amounted to a total of nearly
£16 million that had not been paid to their workers. Each of the employers
named has had to repay their staff for the shortfall and have also faced
financial penalties of up to 200% of their underpayment.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The list includes businesses of all sizes,
including some major high street brands. For instance, Estee Lauder, Easyjet,
Greggs, Moss Bros, Currys, and NHS Highland all appear on the list.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">It is clear that the government will take
enforcement action against employers that do not pay their staff correctly.
Since it can be easy to unintentionally underpay a worker, such as when they
hit 18 or 21 when there is a mandatory increase, it is a good idea to regularly
review your payment rates.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">This is especially important as we come to
the start of a new tax year on 6<sup>th</sup> April as the rates of pay are
increasing as set out in the table below.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">For the fiscal year 2023/24, the rates are as
follows:<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The National Living Wage for those aged 21
and over (previously for those 23 and over) is £10.42.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">For individuals aged 18 to 20, the rate is
£7.49.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">For those under 18, the rate is £5.28.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Apprentice rate is also £5.28.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Accommodation Offset rate is £9.10.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">For the fiscal year 2024/25, the rates will
be:<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;"> </span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The National Living Wage for those aged 21
and over increases to £11.44.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">For individuals aged 18 to 20, the rate will
be £8.60.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">For those under 18, the rate will increase to
£6.40.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Apprentice rate will also be £6.40.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Accommodation Offset rate will be £9.99.</span></span><span style="color: #595959; font-family: arial;"> </span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">If you need any help with your
payroll or reviewing whether your wage payments are correct please feel free to
contact us we would be happy to help you!<o:p></o:p></span></span></u></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">See: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.gov.uk/government/news/over-500-companies-named-for-not-paying-minimum-wage">https://www.gov.uk/government/news/over-500-companies-named-for-not-paying-minimum-wage</a></span></span><span style="color: #595959; line-height: 107%;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Body Shop goes into
administration</span></span></b></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The latest casualty of the difficulties
hitting the high street is The Body Shop, which entered administration on 13 February
2024.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Administration can be a worrying time for
employees as well as customers and suppliers. However, administration is not as
serious as when a company immediately goes into liquidation. Let us explain.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">When a company goes into administration, it
essentially means that it is placed under the management of licensed insolvency
practitioners. These insolvency practitioners, known as administrators, help
salvage the business or its assets. This process is typically started when a
company is struggling financially and cannot pay its bills or other financial
obligations.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">During administration, the administrators
take control of all the company’s operations, finances and assets. Their goal
is to maximise the returns for creditors. This might involve restructuring the
business, selling off parts of the business, or seeking new investment that
will stabilise the company’s financial position.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Going into administration provides the
company with protection from legal action by creditors, giving it breathing space
to weigh up its options and find a solution. It can also help to preserve jobs.
And because it allows for a more orderly resolution of the financial
difficulties the company is facing, it helps to keep more value for the various
stakeholders in the business.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Ultimately, the aim of administration is
either to rehabilitate the company and return it to a solvent trading position,
or to achieve a better outcome for creditors than would be possible through an
immediate liquidation.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">If you have any concerns about your company’s
financial position, please contact us at your convenience. We will be happy to
talk and guide you through the options available to you.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">See: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.gov.uk/government/news/the-body-shop-in-administration-information-for-employees-and-creditors">https://www.gov.uk/government/news/the-body-shop-in-administration-information-for-employees-and-creditors</a></span></span></span><span style="color: #595959; font-family: arial;"> </span></p>
<p class="MsoNormal"><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Cuts to National Insurance: Reminders
about changes<o:p></o:p></span></span></b></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">In November 2023’s Autumn Statement, the
government announced some National Insurance (NI) changes. Some of these
changes went into effect in January 2024, whereas others will come into effect
on 6 April 2024. Here is a reminder of the changes.<o:p></o:p></span></span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Cut to the main rate of Class 1
employee NI contributions from 12% to 10%<o:p></o:p></span></span></u></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">This reduction received the most headlines.
This change went into effect from 6 January 2024, and you have likely already
made this adjustment.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">In some cases, employers were not able to
make the change in time due to software not being ready. If that is the case
for you then an incorrect amount of NI will have been deducted from your
employees and this will need correcting. Details on how to do so are here: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.gov.uk/payroll-errors/correcting-your-fps-or-eps">https://www.gov.uk/payroll-errors/correcting-your-fps-or-eps</a></span></span><span style="color: #595959; line-height: 107%;"> But, please feel free to contact us if you need any help.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">HM Revenue and Customs (HMRC) have recently
confirmed that the 2% cut also applies to the married woman’s reduced rate of
NI contributions, where the rate has dropped from 5.85% to 3.85%. The married
woman’s reduced rate of NI contributions applies to married women who opted in
before the scheme ended in April 1977.<o:p></o:p></span></span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Cut to the main rate of Class 4
self-employed NI contributions from 9% to 8%<o:p></o:p></span></span></u></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Class 4 NI applies to the taxable profits of
a self-employed business. It is calculated when your self-assessment tax return
is prepared and collected as part of your income tax bill.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">This cut comes into effect for profits earned
from 6 April 2024 onwards. There is nothing you need to do to benefit from this
cut, it will be automatically applied when your tax bill is calculated.<o:p></o:p></span></span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Removal of liability to pay Class
2 self-employed NI<o:p></o:p></span></span></u></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Sometimes known as the self-employed ‘stamp’,
Class 2 NI has been a feature for self-employed taxpayers for many years. It is
quoted by HMRC as a weekly rate (£3.45 per week for the 2023/24 tax year) and
is usually collected as part of your self-assessment tax bill.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">From 6 April 2024 the liability to pay this
has been removed. For 2024/25, if your trade profits are above £6,725, you will
accrue entitlement to state benefits without paying Class 2 NICs so the charge
effectively becomes £nil. However, if your trade profits are below £6,725 and
you wish to continue accruing entitlement to state benefits, you’ll need to pay
class 2 NICs on a voluntary basis.<o:p></o:p></span></span></p>
<p class="MsoNormal"><u><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">If you have any concerns or
questions about the NI you are paying, please contact us, we will be happy to
help you!</span></span></u><span style="color: #595959; font-family: arial;"> </span></p>
<p class="MsoNormal"><b><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Resources on learning to export<o:p></o:p></span></span></b></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The Department for Business & Trade has
made available learning resources for businesses to help with what is involved
with exporting. These resources are designed both for new and experienced
exporters.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">The resources cover:<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #595959; line-height: 107%;">Learning how to identify
opportunities abroad and find the best target markets;<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #595959; line-height: 107%;">Preparing to sell into a new
country, such as how to find customers and win bids;<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #595959; line-height: 107%;">Understanding international rules
and how to get your goods to their destination; and<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18.0pt;"><!--[if !supportLists]--><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">·<span style="font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #595959; line-height: 107%;">Learning how to raise funds, get
paid and manage exchange rates.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">There is an opportunity to sign up and gain
some additional benefits.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="color: #595959; line-height: 107%;"><span style="font-family: arial;">Exporting can also involve additional Customs
and VAT requirements. If you need any help with this or would like to discuss
your plans, please feel free to contact us!<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-family: arial;"><span style="color: #595959; line-height: 107%;">For more about this resource, please see: </span><span class="MsoHyperlink"><span style="line-height: 107%;"><a href="https://www.great.gov.uk/learn/categories/">https://www.great.gov.uk/learn/categories/</a></span></span></span><span style="color: #595959; font-family: "Arial",sans-serif; font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></p></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-88641642849310983252024-02-23T14:15:00.002+00:002024-02-23T14:15:12.475+00:0023rd February 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>Navigating recession: Key considerations for your business</strong><br />The Office of National Statistics released official figures last week showing the UK is now officially in recession.<br /><br />Gross domestic product (GDP) for the October to December 2023 quarter dropped by 0.3%. This followed a fall in the July to September 2023 quarter of 0.1%. A fall in GDP in two or more consecutive quarters constitutes a recession.<br /><br />Experts will generally assess the health of an economy on a number of factors, rather than solely look at the headline GDP rates. However, the “recession” word quickly takes hold in news headlines and brings apprehension and uncertainty with it.<br /><br />While it may be a time for concern, proactive measures can mitigate its impact and even present opportunities for growth. Here are some key things for businesses to look at when navigating the onset of a recession.<br /><u><br />Financial resilience:</u><br />Assess how your business’s finances currently look. Where possible, look to strengthen cash reserves and reduce unnecessary expenses. <br /><br />Are there ways you could diversify your income sources so as to avoid being overly reliant on 1 or 2 major customers?<br /><br />Prepare cashflow forecasts and see if you can predict where a potential downturn in income might come. Based on this, you may be able to make some contingency plans or time payments on essential expenditure so you don’t leave yourself short at the wrong time.<br /><u><br />Analyse your customers’ behaviour:</u><br />During economic downturns, spending behaviours generally often change. Priorities are put on essential purchases while what is seen as non-essential or non-urgent is put on the back burner. How will this affect how your customers buy from you? Could you tailor your marketing strategy or the products or services you offer your customers so that they appeal to their current needs and price sensitivities?<br /><u><br />Review your supply chain:</u><br />It’s a good time to evaluate the resilience of your supply chain. Do you have key suppliers that may struggle with a down-turn? It could be that exploring alternatives would be wise. On the other hand, if you are in a relatively strong financial position, it could be a good time to support a trusted supplier, perhaps ensuring reduced pricing or longer-term loyalty.<br /><br />Strengthening your relationships with key suppliers and maintaining open communication with them can also help you to anticipate and address potential challenges.<br /><u><br />Nurture staff morale:</u><br />Continue to invest in and nurture staff morale. Staff can also become anxious in an economic downturn, and this can easily affect morale and productivity. Consider cost-effective strategies that will help you retain talented staff. For instance, flexible work arrangements, skill development programs and performance incentives can help to keep staff incentivised.<br /><br />Your staff may also have good ideas that will help your business to adapt. Spending time talking with them and giving them the authority to contribute innovative solutions can provide you with a very valuable resource.<br /><u><br />Strategic investments:</u><br />While there are uncertainties in an economic downturn, there are usually also opportunities. It can be well worth exploring investment opportunities if you are in a position to do so.<br /><br />Look for undervalued assets or potential mergers or acquisitions that can be done for a reduced price. You may be able to capitalise on the downturn to buy assets at a favourable price and position your business for long-term growth.<br /><u><br />Government assistance:</u><br />There are many government assistance programs available, and additional ones may be added to support business continuity through a recession. Policy changes, tax relief measures, funding schemes, and loan financing assistance are all possibilities that your business could take advantage of. Stay informed about what is available, as these programs can provide much needed support.<br /><u><br />Long-term vision and a positive attitude:</u><br />Maintain a long-term perspective, as it will help prevent you getting caught up in negative thinking that can stifle your ability to successfully adapt to change. A recession is a technical marker of the UK-wide economic landscape, but it is not necessarily an indicator for how your business can perform. Keeping a positive attitude will allow you to see the opportunities you have available to you and give you the drive to see them through.<br /><br />In conclusion, navigating a recession takes good planning and adaptability. But by taking proactive steps, like those we have mentioned, your business can not only weather the economic downturn but also emerge stronger and more competitive in the long run.<br /><u><br />We are here to support you during tough times, why not ask us about our Tough Times Action Pack that is designed to provide you with useful guidance and support. </u><br /> <br /><strong>Customer satisfaction index drops: how can you avoid the same in your business?</strong><br />The Institute of Customer Service published its latest UK Customer Satisfaction Index (UKCSI) figures for January 2024. The Index has fallen by 1.7 points since last January to 76.0 (out of 100) - <a data-cke-saved-href="https://www.instituteofcustomerservice.com/research-insight/ukcsi/" href="https://www.instituteofcustomerservice.com/research-insight/ukcsi/">https://www.instituteofcustomerservice.com/research-insight/ukcsi/</a><br /><br />Each of the 13 UKCSI sectors showed lower customer satisfaction than a year ago, with Utilities, Transport, Insurance and Service declining by more than 2 points. The highest rated organisations are Ocado (85.7), first direct (85.3) and John Lewis (85.1).<br /><br />Looking at an index update like this can provide a good opportunity to reflect on the customer satisfaction of your own customers. Good customer service is characterised by several key elements that prioritise and promote positive experiences for customers.<br /><u><br />Effective communication</u><br />Clear and concise communication that demonstrates an understanding of customers’ inquiries and addresses them promptly is key. This needs to be true wherever the interaction happens, whether through in-person interactions, phone calls, emails, or live chat support.<br /><u><br />Empathy</u><br />Empathy is essential for demonstrating that you understand a customer’s needs, emotions and concerns. Empathetic customer service will allow your customers to feel a rapport with you that builds trust.<br /><u><br />Responsiveness</u><br />Customers expect their needs and any issues they have to be dealt with in a timely manner. Prompt response times tell a customer that they are important to you and build loyalty.<br /><u><br />Consistency</u><br />A high service level in one area of the business can be compromised if other areas of the business do not maintain the same standard. For instance, a high standard in pre-sales support will be undermined if after-sales support is lacking. Consistency across all touchpoints and interactions with customers is therefore important. It gives your customers confidence in your business and contributes to you winning repeat business.<br /><u><br />Flexibility</u><br />Each customer is unique, so being able to accommodate customers’ preferences and resolve unique situations or challenges is an important part of being able to keep your customers happy. Being willing to go the extra mile, and to tailor solutions to individual customer needs, can significantly enhance satisfaction and loyalty in your customers.<br /><u><br />Continuous improvement</u><br />Regularly collecting feedback from customers and implementing the insights that it gives you will allow you to adapt and evolve your customer service practices to meet their changing needs and preferences.<br /><u><br />Good business systems</u><br />Having good business systems in place helps staff in their quest to provide excellent, consistent customer service. Good systems mean that staff know who is responsible for what, and where or who to get information and authorisations from when they need it.<br /><u><br />Why not talk to us about how we can help you with improving your business systems for growth? We would be happy to help you!</u><br /> <br /><strong>Inflation stays flat</strong><br />Official figures were released last week showing that inflation remains at 4% in the year to January.<br /><br />Energy prices have increased due to the new energy price cap, and the price for second-hand cars also rose by 1.5%. However, food prices fell for the first time in two years by 0.4%. Discounts offered by retailers for furniture and household goods in the January sales have also exerted a downward push on inflation.<br /><br />Of course, inflation staying flat does not mean that prices are not increasing. A 4% inflation rate means that prices are still going up at double the rate targeted by the Bank of England.<br /><br />The Office of National Statistics (ONS) have also released figures showing that pay, excluding bonuses, grew by 6.2% in the last quarter of 2023. While this and the number of job vacancies have reduced since the summer, pay growth still exceeds inflation. The former deputy governor of the Bank of England said that he would be surprised to see the Bank lowering the base rate until this changes.<br /><br />Businesses therefore continue to face increased prices for supplies and pressure to increase staff wages to meet their costs of living, while trying to balance what can be passed on to customers.<br /><br />However, Chancellor Jeremy Hunt took the news as a positive, saying: “Inflation never falls in a perfect straight line, but the plan is working.”<br /><br />See: <a data-cke-saved-href="https://www.bbc.co.uk/news/business-68285819" href="https://www.bbc.co.uk/news/business-68285819">https://www.bbc.co.uk/news/business-68285819</a><br /><strong><br />Some self-catering holiday let owners being asked to provide trade information</strong><br />The Valuation Office Agency (VOA) is contacting the owners of some self-catering holiday lets. The lets in question are ones that are currently being assessed for business rates.<br /><br />The VOA are looking for additional information about the income and expenditure of these properties. This will assist in calculating the rateable value of the property.<br /><br />This enquiry follows an exercise undertaken by the VOA last year to contact self-catering holiday let owners. The information requested at that time enabled the VOA to decide whether the properties should be assessed for business rates or Council Tax.<br /><br />The rateable values of self-catering holiday lets must be updated by the VOA every three years, and the information being requested helps them to revalue properties correctly.<br /><br />Forms will be sent out between February and August. If you receive one, then it must be returned within 56 days to avoid paying a penalty.<br /><br />If you receive a form and need any help with completing it, please contact us and we will be happy to help. If you are expecting a form and do not receive one, or otherwise believe that the rateable value for your holiday let is incorrect, let us know and we’ll be pleased to help.<br /><br />For more information on how properties are valued, see: <a data-cke-saved-href="https://valuationoffice.blog.gov.uk/2023/02/20/how-we-value-self-catering-holiday-homes/" href="https://valuationoffice.blog.gov.uk/2023/02/20/how-we-value-self-catering-holiday-homes/">https://valuationoffice.blog.gov.uk/2023/02/20/how-we-value-self-catering-holiday-homes/</a><br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/providing-trade-information-for-self-catering-holiday-lets" href="https://www.gov.uk/government/news/providing-trade-information-for-self-catering-holiday-lets">https://www.gov.uk/government/news/providing-trade-information-for-self-catering-holiday-lets</a><br /> <br /><strong>Violence and abuse towards shop workers increases to 1,300 incidents a day</strong><br />A crime survey carried out by the British Retail Consortium (BRC) shows a 50% increase in levels of violence and abuse towards shop workers. During 2022/23 there were 1,300 incidents a day compared with 870 a day in the previous year.<br /><br />The abuse includes racial abuse, sexual harassment, physical assault and threats with weapons, and is on a par with the levels of abuse retail workers experienced during the pandemic when safety measures frustrated many.<br /><br />Theft costs have increased to £1.8 billion from £953 million the year before, with 45,000 incidents a day.<br /><br />These increases are all despite retailers investing £1.2 billion (compared with £722 million in the previous year) on CCTV, increased security personnel, body worn cameras and other security measures.<br /><br />The survey also indicated a high level of dissatisfaction with the police, 60% of respondents describing police response as ‘poor’ or ‘very poor’.<br /><br />Katy Bourne OBE, Sussex Police & Crime Commissioner and APCC Lead for Business Crime, has described the levels of retail crime as revealing “an unprecedented level of selfish lawlessness.” She has urged greater police focus on the problem.<br /><br />Calls are being made for a standalone offence to be introduced for assaulting, threatening, or abusing a retail worker in the hope that this will help deter offenders. Retail workers in Scotland already benefit from such a law, where this offence was introduced in 2021.<br />Retail business owners continue to need to assess the risks and consider what measures they can take to effectively protect their staff and business.<br /><br />See: <a data-cke-saved-href="https://brc.org.uk/news/corporate-affairs/retail-crime-a-crisis-that-demands-action/" href="https://brc.org.uk/news/corporate-affairs/retail-crime-a-crisis-that-demands-action/">https://brc.org.uk/news/corporate-affairs/retail-crime-a-crisis-that-demands-action/</a><br /> <br /><strong>HMRC warns about an increase in tax refund scams</strong><br />HM Revenue and Customs (HMRC) are warning that fraudsters could focus on Self Assessment taxpayers.<br />With the tax return filing deadline having just passed at the end of January, an email, phone call or text message that offers a tax rebate may appear more believable than usual.<br /><br />HMRC say that they have responded to 207,800 referrals in the year to January, with more than 79,000 relating to fake tax rebates. The total number of referrals has increased by 14% over the previous year, suggesting fraudsters are increasing their efforts.<br /><br />Scammers are looking to get personal details that they can sell on to criminals, or to gain access to bank accounts and phish for these details using emails, phone calls or texts that appear to mimic an HMRC message.<br /><br />To protect yourself, avoid rushing into anything and always protect your personal information.<br /><br />HMRC have confirmed that they will not email, text or phone a customer to tell them that they are due a refund, or to ask them to request a refund. Repayments will be made automatically into the account chosen when filing the tax return. Alternatively repayment amounts can be seen and payment requested in your online HMRC account or in the HMRC app.<br /><br />If you receive contact that you are suspicious of, you are encouraged to report it to HMRC. You can:<br /></span></p><ul><li><span style="font-family: arial;">Forward emails to <a data-cke-saved-href="mailto:phishing@hmrc.gov.uk" href="mailto:phishing@hmrc.gov.uk">phishing@hmrc.gov.uk</a>;</span></li><li><span style="font-family: arial;">Report tax scam phone calls to HMRC on GOV.UK; or</span></li><li><span style="font-family: arial;">Forward suspicious texts claiming to be from HMRC to 60599.</span></li></ul><span style="font-family: arial;">If you are in any doubt whether contact you have received is genuinely from HMRC, please do not hesitate to contact us and we will be pleased to help you!<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/warning-to-self-assessment-customers-as-scam-referrals-exceed-200000" href="https://www.gov.uk/government/news/warning-to-self-assessment-customers-as-scam-referrals-exceed-200000">https://www.gov.uk/government/news/warning-to-self-assessment-customers-as-scam-referrals-exceed-200000</a><br /> <br /><strong>New trade and investment partnership with Nigeria</strong><br />Last week the UK signed an Enhanced Trade and Investment Partnership with Nigeria to boost trade and investment between the two countries.<br /><br />In the year to September 2023, trade between the two countries totalled £7 billion. UK exports to Nigeria were £4 billion in that year, which represented a 3% increase in current prices over the previous year.<br /><br />The partnership will allow for additional opportunities in the financial and legal services sector, the film and media industry and for UK education providers to offer education in Nigeria.<br /><br />Lawyers in both the UK and Nigeria will benefit from the agreement that facilitates them practising foreign and international law in each other’s country.<br /><br />Nigeria’s economy is the biggest in Africa and is predicted to be in the world’s top 20 by GDP by 2035.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-signs-landmark-economic-partnership-with-nigeria" href="https://www.gov.uk/government/news/uk-signs-landmark-economic-partnership-with-nigeria">https://www.gov.uk/government/news/uk-signs-landmark-economic-partnership-with-nigeria</a><br /> <br /><strong>What’s your policy on scanning QR codes?</strong><br />Since the COVID lockdowns, QR codes have become increasingly commonplace as a quick way to direct people to websites, to log into online video services on smart TVs and TV boxes, or to order or pay for goods and services.<br /><br />But is your business protected from the risks that may come from criminals using malicious QR codes? Do you have a policy for your staff in place? What issues do you need to consider?<br /><br />The National Cyber Security Centre (NCSC) have provided some guidance on the subject in a recent blog post.<br /><br />They advise that QR code related scams are relatively small compared to other types of cyber fraud. The majority of QR code-related fraud usually happens in stations, car parks or other open spaces and often feature an element of social engineering, such as a criminal posing as a bank employee calling to continue the deception.<br /><br />QR codes are increasingly being used in phishing emails, sometimes called ‘quishing’. This is because people are more suspicious of links in emails and so QR codes may more easily disguise a link to a malicious website. Also, security tools that detect phishing emails may not scan images and so let a QR code through.<br /><br />Criminals are also aware that a person is likely to use their personal phone to scan a QR code. Personal devices don’t usually have the same security protections as an employer-provided computer.<br /><br />NCSC make the following recommendations that could be used as the basis for a work policy on use of QR codes:<br /></span><ul><li><span style="font-family: arial;">QR codes used in pubs and restaurants are likely to be safe.</span></li><li><span style="font-family: arial;">Scanning QR codes in stations, car parks and other open spaces is likely to be riskier. Whenever you are being asked to provide what feels like too much information you should be suspicious.</span></li><li><span style="font-family: arial;">Exercise caution about scanning a QR code in an email. These types of quishing attacks are on the increase.</span></li><li><span style="font-family: arial;">Use the QR scanner that comes with your phone rather than using an app downloaded from an app store.</span></li></ul><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.ncsc.gov.uk/blog-post/qr-codes-whats-real-risk" href="https://www.ncsc.gov.uk/blog-post/qr-codes-whats-real-risk">https://www.ncsc.gov.uk/blog-post/qr-codes-whats-real-risk</a><br /> <br /><strong>A reminder for businesses on waste recycling responsibilities</strong><br />A Buckinghamshire-based company has recently made the news, not for their innovative products or services, but for their failure to adhere to regulations on recycling waste packaging.<br /><br />Hi-Tech Coatings International Limited, located in Aylesbury, found themselves in hot water for neglecting their obligations under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007. As a result of their oversight, the company has had to make a significant financial contribution of nearly £21,000 to a local charity, in addition to covering Environment Agency costs.<br /><br />The company were proactive in making amends and showing how they will comply with the law in the future. The Environment Agency were willing to accept the company’s offer and did not proceed to prosecution in this case.<br /><br />Berks, Bucks and Oxon Wildlife Trust are the beneficiaries of the company’s contribution. The money will be used to help protect local wildlife habitats and wetland areas in Buckinghamshire.<br /><br />The regulations are designed to ensure that businesses take responsibility for the recycling of packaging waste. A senior technical officer for the Environment Agency, Jake Richardson, has said: “Any company handling more than 50 tonnes of packaging a year, and with turnover in excess of £2 million, must register with the Environment Agency or a packaging compliance scheme, and meet their responsibilities for recycling waste packaging.”<br /><br />This financial penalty serves as a stark reminder of the importance for businesses to stay aware of their environmental responsibilities, particularly when it comes to waste management and recycling. By fulfilling their responsibilities for recycling waste packaging, companies not only mitigate financial and legal risks but also contribute to the preservation of natural ecosystems and the well-being of future generations.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/buckinghamshire-firm-pays-heavily-for-packaging-oversight" href="https://www.gov.uk/government/news/buckinghamshire-firm-pays-heavily-for-packaging-oversight">https://www.gov.uk/government/news/buckinghamshire-firm-pays-heavily-for-packaging-oversight</a><br /> <br /><strong>Sustainable Farming Incentive receives thousands of applications</strong><br />The Department for Environment, Food & Rural Affairs (Defra) has announced that more than 10,000 farmers across England have applied for the improved Sustainable Farming Incentive since it opened for applications in September.<br /><br />The Sustainable Farming Incentive provides financial help to farmers for taking actions that support food production, farm productivity and resilience, while protecting and enhancing the environment.<br /><br />Based on feedback received from farmers, the Incentive has been expanded and improved to include around 50 new actions that farmers can be paid for. The application process has also been made more straightforward and farmers have more flexibility now to choose which actions work best for them.<br /><br />Farmers are being encouraged to apply now, and Defra are holding webinars in February and March, as well as a presence at upcoming agricultural shows throughout England.<br /><br />For more information and to apply, see: <a data-cke-saved-href="https://farming.campaign.gov.uk" href="https://farming.campaign.gov.uk">https://farming.campaign.gov.uk/</a><br /> <br /><strong>Nature benefits from new legal requirement for developers</strong><br />All major housing developments in England are now required to deliver at least a 10% benefit for nature. This Biodiversity Net Gain requirement, which was introduced in the Environment Act, is now a legal requirement for all new planning applications.<br /><br />Biodiversity Net Gain means that a development needs to avoid harming nature, or if that is unavoidable, new habitats need to be created or existing ones enhanced so that the net result is more nature after a development than before. The gain is preferably to be made within the new site itself, but the requirements can also be satisfied by investing in nature sites elsewhere.<br /><br />Measures are included in the new requirements to ensure that the Biodiversity Net Gain provides a lasting benefit to the environment over the long term. For instance, significant on-site and off-site gains will need a legal agreement with a responsible body or local authority to monitor the habitat improvements.<br /><br />Many developers already work to improve nature in their developments, but the new requirements have been welcomed as a positive move in bringing nature back into towns and cities.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-housing-developments-to-deliver-nature-boost-in-landmark-move" href="https://www.gov.uk/government/news/new-housing-developments-to-deliver-nature-boost-in-landmark-move">https://www.gov.uk/government/news/new-housing-developments-to-deliver-nature-boost-in-landmark-move</a></span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-53372967690198475952024-02-16T07:55:00.006+00:002024-02-16T07:55:46.266+00:0016th February 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>Year-End Tax Planning: Maximising benefits for your business</strong><br />We are now within the final two months of the tax year, and for many businesses, the end of the tax year is also the end of the business’s financial year. This can be a good time to review your business tax planning to ensure that you minimise tax.<br /><u><br />Assessing profit extraction methods</u><br />Particularly for limited companies, profit extraction methods can be a key part of tax planning. Whether it involves salaries, bonuses, dividends, or a combination of these, choosing the right strategy can significantly impact tax liabilities.<br /><br />Optimising the method and timing of when you extract profits can mitigate tax while ensuring that owners and key staff are compensated fairly.<br /><u><br />Dividends</u><br />Dividends are a fundamental part of the way any company distributes profit. For an owner managed company, though, dividends frequently play a key role in the owner’s remuneration strategy.<br /><br />Particularly as the tax year concludes, it is important to check the timing of your dividend payments. For instance, have you earned more this year than you expected? Might another dividend payment push you into higher rate tax? If so, deferring a dividend may help you.<br /><br />By aligning dividend payments with tax thresholds and allowances, you may be able to reduce your tax exposure.<br /><u><br />Capital allowances</u><br />Capital allowances are a tax relief available on many types of capital expenditure. Bringing forward or delaying the purchase of capital items, for example IT equipment or a refurb project, can help you to maximise the allowances available.<br /><br />For companies whose profit level means they pay at the marginal relief rate, optimising capital allowance claims can also help to reduce the tax rate that a company would otherwise pay.<br /><br />Naturally, it is always important to avoid letting the tax ‘tail wag the dog,’ but using capital allowances effectively can not only reduce tax liabilities but also help to fund vital investment in business assets.<br /><u><br />Research and Development Tax Credits</u><br />If your limited company is involved in innovating, research and development (R&D) tax credits can be very worthwhile. However, claiming R&D tax credits requires thorough documentation and there are specific criteria that need to be adhered to.<br /><br />As the business approaches its year end, it is a good time to check that records of R&D activity are up-to-date and complete.<br /><br />R&D tax credits can reduce tax liabilities as well as provide funding for future innovative activities that keep your business on the front foot.<br /><br />In conclusion, tax planning as the tax year-end approaches is an important part of leveraging the tax incentives available to you, minimising tax liabilities while staying compliant with tax laws.<br /><u><br />If you would like help in proactively managing your tax liabilities, we have a range of tools and calculators as well as expert knowledge of the tax laws. Please feel free to call us, we will be pleased to help you!</u><br /> <br /><strong>How to recognise tax scam phone calls, emails and text messages</strong><br />HM Revenue and Customs (HMRC) have recently published updated their guidance on how to identify tax scams made by phone, email, or text.<br /><br />They advise that if you receive a phone call, email, or text message that purports to be from HMRC, it is likely to be fake if it:<br /></span></p><ul><li><span style="font-family: arial;">rushes you;</span></li><li><span style="font-family: arial;">is threatening;</span></li><li><span style="font-family: arial;">is unexpected;</span></li><li><span style="font-family: arial;">asks for personal information, such as bank details;</span></li><li><span style="font-family: arial;">tells you to transfer money; or</span></li><li><span style="font-family: arial;">offers a refund, tax rebate or grant.</span></li></ul><span style="font-family: arial;">HMRC also confirm what they will and won’t do if they contact you.<br /><u><br />By phone:</u><br />HMRC will never threaten arrest or leave a voicemail threatening legal action.<br /><u><br />By text:</u><br />HMRC do send text messages that may include a link to GOV.UK information or HMRC webchat. They will never ask for personal or financial information. So, a text message that offers a tax refund in exchange for personal or financial details cannot be from them.<br /><u><br />By WhatsApp:</u><br />If you have subscribed to the UK Government Channel, you may receive occasional tax-related reminders, but you will not be able to reply. HMRC don’t otherwise use WhatsApp to communicate with taxpayers.<br /><br />HMRC does use QR codes in its letters to take you to guidance on GOV.UK, but they confirm that you would never be taken to a page that requires you to provide personal information. QR codes might also be used after you have already logged in to redirect you to, say, your bank login page.<br /><br />You can check whether a phone call, email or text is genuine by consulting HMRC’s website here: <a data-cke-saved-href="https://www.gov.uk/government/collections/check-a-list-of-genuine-hmrc-contacts" href="https://www.gov.uk/government/collections/check-a-list-of-genuine-hmrc-contacts">https://www.gov.uk/government/collections/check-a-list-of-genuine-hmrc-contacts</a><br /><br />Guidance, including some examples of HMRC related phishing emails, suspicious phone calls and texts is available here: <a data-cke-saved-href="https://www.gov.uk/government/publications/phishing-and-bogus-emails-hm-revenue-and-customs-examples/phishing-emails-and-bogus-contact-hm-revenue-and-customs-examples" href="https://www.gov.uk/government/publications/phishing-and-bogus-emails-hm-revenue-and-customs-examples/phishing-emails-and-bogus-contact-hm-revenue-and-customs-examples">https://www.gov.uk/government/publications/phishing-and-bogus-emails-hm-revenue-and-customs-examples/phishing-emails-and-bogus-contact-hm-revenue-and-customs-examples</a><br /><u><br />If you are concerned about any phone calls, emails, or texts that you have received from HMRC, please do not hesitate to contact us and we will be happy to confirm whether or not it is genuine!</u><br /> <br /><strong>New Economic Crime Unit to tackle financial crime in the waste sector</strong><br />A new Economic Crime Unit has been launched by the Environment Agency. Its role is to tackle money laundering and carry out financial investigations in the waste sector.<br /><br />The Environment Agency has already been targeting waste crime with its Financial Investigations Team, and this new Unit will build on that work.<br /><br />The Unit will be made up of two teams: the Asset Denial Team and the Money Laundering Investigations Team. The Asset Denial Team will focus on account freezing orders, cash seizures, pre-charge restraints and confiscations. The Money Laundering Investigations Team will be involved in conducting dedicated money laundering investigations that target environmental offences. A money laundering offence could result in a 14-year prison sentence for the offender.<br /><br />To indicate the scale of the problem that waste crime is causing, Alan Lovell, Chair of the Environment Agency said that waste crime “costs our economy an estimated £1 billion every year.”<br /><br />The Environment Agency is keen to tackle this problem. For instance, in November 2023 they successfully prosecuted the operators of a quarry near Stevenage. The operators were handed prison sentences for storing and burying enough illegal waste to fill the Royal Albert Hall nearly three times over.<br /><br />It is hoped that the new Unit will increase the Environment Agency’s effectiveness in this area thereby reducing the load on legitimate business.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/ensuring-crime-doesnt-pay-new-economic-crime-unit-to-tackle-money-laundering-and-carry-out-financial-investigations" href="https://www.gov.uk/government/news/ensuring-crime-doesnt-pay-new-economic-crime-unit-to-tackle-money-laundering-and-carry-out-financial-investigations">https://www.gov.uk/government/news/ensuring-crime-doesnt-pay-new-economic-crime-unit-to-tackle-money-laundering-and-carry-out-financial-investigations</a><br /><strong><br />Guidance for small businesses using online services</strong><br />The National Cyber Security Centre have issued some new guidance on “Using online services safely.”<br /><br />To avoid having to set up and manage their own IT infrastructure, many small businesses use online or cloud services. For instance, these might include email, online storage, online accounting and managing of invoicing, website hosting, and social media.<br /><br />The guidance is designed to help small businesses reduce the likelihood of cyber attacks when using these services.<br /><br />The guidance provides help on:<br /></span><ul><li><span style="font-family: arial;">Choosing a good service,</span></li><li><span style="font-family: arial;">Backing up critical data,</span></li><li><span style="font-family: arial;">Protecting the domain name you use for your website and email addresses,</span></li><li><span style="font-family: arial;">Creating separate user accounts and securing them,</span></li><li><span style="font-family: arial;">Protecting your admin accounts,</span></li><li><span style="font-family: arial;">Defending against malware,</span></li><li><span style="font-family: arial;">Using the security features that are built into the service, and</span></li><li><span style="font-family: arial;">Recovering a hacked account or service.</span></li></ul><p><span style="font-family: arial;">If you are a small business without the resources to employ a dedicated IT specialist, this advice can help you to consider and cover off the risks you face when using online services.<br /><br />For the guidance, see: <a data-cke-saved-href="https://www.ncsc.gov.uk/collection/using-online-services-safely" href="https://www.ncsc.gov.uk/collection/using-online-services-safely">https://www.ncsc.gov.uk/collection/using-online-services-safely</a><br /> <br /><strong>Bounce Back Loan fraudster sentenced</strong><br />Salih Ozhot from North London has been given a suspended prison sentence of 2 years for applying for a Bounce Back loan in 2020 for his business but then using the funds personally. He is also required to repay the £50,000 he borrowed in full at the rate of £500 per month.<br /><br />Insolvency Service Investigators found that Mr Ozhot had withdrawn £19,000 within one week of receiving the loan. Their analysis of subsequent transactions showed that he used the money for personal rather than business reasons. Mr Ozhot was declared bankrupt in October 2021.<br /><br />The Insolvency Service described Mr Ozhot’s actions as “cynical,” “sophisticated,” and “pre-planned.” He is now barred from acting as a company director without permission from a court.<br /><br />Bounce Back Loans were government guaranteed loans made available to support businesses during COVID-19. However, the Department for Business has come under criticism for being too lax with the application process and HMRC has estimated that the total amount of error and fraud across all COVID-19 support schemes could be as much as £5bn. The government has subsequently launched pilot programs to try and detect potential fraud.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/court-orders-cynical-fraudster-who-abused-covid-support-scheme-to-repay-loan-in-full" href="https://www.gov.uk/government/news/court-orders-cynical-fraudster-who-abused-covid-support-scheme-to-repay-loan-in-full">https://www.gov.uk/government/news/court-orders-cynical-fraudster-who-abused-covid-support-scheme-to-repay-loan-in-full</a><br /> <br /><strong>Unlocking efficiency and growth: The benefits of cloud accounting</strong><br />In business, staying ahead of, or at least up with, the curve is crucial for success. Over recent years, one of the revolutionary tools that has transformed the way businesses manage their finances is cloud accounting. Cloud accounting offers many benefits over traditional, on-premise accounting systems. Let’s discuss some of them.<br /><u><br />What are the benefits of cloud accounting?</u><br /><u>Accessibility</u><br /><br />Traditional accounting systems often tie businesses to a specific location, requiring users to be physically present in the office to be able to access financial data. Cloud accounting frees a business from this constraint. It gives users access to real-time financial information anytime, anywhere. This kind of flexibility and access can be very valuable, allowing teams to collaborate and decisions to be made regardless of location.<br /><u><br />Cost efficiency</u><br />Cloud accounting operates on a subscription-based model, avoiding the up-front software licence costs usually involved in traditional accounting systems. Cloud accounting systems also typically receive automatic updates and maintenance, which can reduce the demand for IT support.<br /><u><br />Security</u><br />The security of financial information is naturally a top concern for a business. Cloud accounting providers use advanced encryption measures to ensure that sensitive information is kept safe. These providers usually have dedicated teams focused on monitoring and addressing security threats too. This provides a level of protection that may be difficult to replicate on your own premises. Cloud accounting systems also include robust backup processes, which reduce the risk of losing data because of hardware failing.<br /><u><br />Automation</u><br />With many cloud accounting systems - or by means of subscribing to linked automated data entry software – data entry can be automated. By uploading a copy of the invoice or receipt the software can ‘read’ the data and create the entry needed by the accounts system. While such systems rarely achieve 100% accuracy, the time-savings can be considerable and allow those dealing with finance to concentrate on more strategic work.<br /><br />The benefits of cloud accounting can be transformative to a business and give you a competitive edge in today’s dynamic market. Embracing this technology is not just a trend but can be considered a strategic move towards a more agile, responsive and prosperous business.<br /><u><br />We have experience of various cloud accounting systems. If you would like an assessment of your current system to see how cloud accounting might help you, please do not hesitate to contact us!</u><br /> <br /><strong>Data sharing powers to continue following statutory review</strong><br />The Digital Economy Act 2017 gave the government data sharing powers that allow it to combat fraud committed against the public sector.<br /><br />A statutory review, which was published last week, shows that taxpayers have been saved £137 million because of these data sharing powers. The review showed that the Act has enabled more than 100 data sharing pilots across both local authorities and governments or agencies.<br /><br />The savings were categorised as £99.5 million from identifying Covid-19 loan scheme fraud, £14.9 million from fraud identified in council tax and housing benefit systems, £5.1 million from identifying companies that were fraudulently misstating their accounting and corporate practices to avoid paying tax, and £5 million from council tax debt owed by those in employment.<br /><br />As a result of the review, Baroness Neville-Rolfe, who is Minister of State for the Cabinet Office, decided to keep the fraud and debt powers contained in the Digital Economy Act. The government subsequently put a report to the UK and Scottish Parliaments and Welsh and Northern Ireland Assemblies summarising the conclusions of the review.<br /><br />Four of the data sharing pilots have already been converted to standard practice and there are plans for more to join them. Respondents to the consultation expressed that they had no privacy concerns about the powers.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-data-sharing-powers-save-taxpayers-137-million-since-introduction" href="https://www.gov.uk/government/news/new-data-sharing-powers-save-taxpayers-137-million-since-introduction">https://www.gov.uk/government/news/new-data-sharing-powers-save-taxpayers-137-million-since-introduction</a><br /> <br /><strong>New digital labelling legislation cuts red tape</strong><br />UK businesses are welcoming new legislation that introduces digital import labels. The legislation aims to reduce red tape and cut millions in unnecessary regulation costs.<br /><br />The move towards digital labelling allows businesses to upload regulatory and manufacturing information online rather than physically printing it on products. <br /><br />This should save both time and money that can be better invested in other business areas.<br /><br />The new legislation includes continuing to recognise CE marking for products like toys and machinery.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-laws-to-introduce-digital-labelling-for-businesses-and-reduce-regulation-costs" href="https://www.gov.uk/government/news/new-laws-to-introduce-digital-labelling-for-businesses-and-reduce-regulation-costs">https://www.gov.uk/government/news/new-laws-to-introduce-digital-labelling-for-businesses-and-reduce-regulation-costs</a><br /> <br /><strong>Next generation broadband coming to a location near you?</strong><br />The UK government has announced the signing of six new contracts that will allow suppliers to connect businesses and homes in hard-to-reach areas to lightning-fast full fibre internet.<br /><br />Rural communities in Buckinghamshire, Hertfordshire, Berkshire, Leicestershire, Warwickshire, Sussex, Kent, Bedfordshire, Northamptonshire, Milton Keynes, Nottinghamshire, and West Lincolnshire are the subject of these contracts. It is expected that some 236,000 premises will benefit from the uprated connections with the first being connected in early 2025.<br /><br />For any business using the internet, speed and reliability make a big difference to productivity. Full fibre can deliver internet speeds of up to 1,000 megabits (or one gigabit) per second. This is up to 30 times faster than connections that rely on traditional copper cables.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/over-1-billion-awarded-to-roll-out-lightning-fast-broadband-in-hard-to-reach-towns-and-villages" href="https://www.gov.uk/government/news/over-1-billion-awarded-to-roll-out-lightning-fast-broadband-in-hard-to-reach-towns-and-villages">https://www.gov.uk/government/news/over-1-billion-awarded-to-roll-out-lightning-fast-broadband-in-hard-to-reach-towns-and-villages</a></span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-60074574863717799142024-02-09T16:09:00.008+00:002024-02-09T16:09:44.121+00:009th February 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><strong><span style="font-family: arial;">Streamlining your business: Strategies to speed up customer payments and improve cash flow</span></strong></p><p><span style="font-family: arial;">Begbies Traynor, a firm of business rescue and recovery specialists, have published their latest <a data-cke-saved-href="https://www.begbies-traynorgroup.com/news/firm-news/more-than-47000-uk-businesses-start-2024-on-the-edge-of-collapse-after-critical-financial-distress-jumps-over-25-again" href="https://www.begbies-traynorgroup.com/news/firm-news/more-than-47000-uk-businesses-start-2024-on-the-edge-of-collapse-after-critical-financial-distress-jumps-over-25-again">Red Flag Alert</a> based on financial data from the last quarter of 2023. It makes worrying reading as they estimate that more than 47,000 businesses in the UK are near collapse because of being in critical financial distress. This is a startling increase of 25.9% from the previous quarter, with particular concern raised for the construction and real estate sectors.</span></p><p><span style="font-family: arial;">Of course, the Christmas trading period and an expectation that inflation will continue to fall and interest rates with it, provide some counter to any pessimistic claims. However, in the face of such worries, your attention may naturally turn to optimising cash flow, which is essential for sustained growth and success.</span></p><p><span style="font-family: arial;">One key aspect that significantly impacts a company’s financial health is how quickly customers pay you. Efficiently managing and improving the speed at which customers pay can bolster your cash flow, improve liquidity, and contribute to overall business resilience.</span></p><p><span style="font-family: arial;">Here are some strategies that can help you to streamline and speed up the payment process.</span></p><span style="font-family: arial;">1. Clear and transparent invoicing<br />Make sure that your invoices are clear and easy to understand. Show itemised charges so that a customer knows exactly what they are being charged for and include detail of payment due dates and accepted payment methods. Transparency in your billing process fosters trust and can lead to faster payments.<br /><br />2. Use digital payment platforms<br />Digital payment solutions provide convenience to your customers. Offering options like online payments, credit cards, and electronic fund transfers can significantly reduce the time it takes for funds to reach your account. Digital platforms not only speed up the payment process, they also enhance accuracy.<br /><br />3. Implement automated payment reminders<br />Set up automated reminders to gently prompt customers about upcoming or overdue payments. Automated systems can be customised to send emails or notifications and can help avoid misunderstandings and encourage timely payments.<br /><br />4. Reward early payments<br />Consider offering discounts or other incentives for customers who pay their invoices promptly. This strategy can motivate clients to prioritise your invoices and settle their accounts faster to take advantage of the benefits you provide for early payments.<br /><br />5. Establish clear payment terms<br />Clearly communicate payment terms and conditions upfront. Whether it's 15 days, 30 days, or any other arrangement, ensure that your customers are aware of what you expect regarding payment timelines. Setting clear expectations can help manage customer behaviour and get them to align them with the payment schedule you want.<br /><br />6. Build strong customer relationships<br />Cultivate strong, positive relationships with your customers. Businesses are often more inclined to put first payments to suppliers they trust and have a good working relationship with. Regular communication and exceptional customer service can all contribute to quicker payments.<br /><br />7. Use invoice financing or factoring<br />In cases where immediate cash flow is crucial to you, explore invoice financing or factoring services. These financial tools allow you to receive a percentage of the invoice amount upfront, with the remaining balance paid when the customer settles the invoice. While there are usually costs associated with these services, they can provide a quick infusion of cash if this is what you need.</span><p><span style="font-family: arial;">In conclusion, speeding up customer payments needs a combination of clear communication, strategic use of technology, and a customer-centric approach. A seamless and transparent experience for your customers will translate into more prompt payments. By implementing these strategies, you can streamline your payment processes, improve cash flow, and build a solid foundation for sustainable growth.</span></p><p><span style="font-family: arial;">As experienced business advisors, we have information and tools that can help you and your business weather the tough times. Why not get in touch and see how we can help you!<br /><br /></span></p><p><strong><span style="font-family: arial;">Cuts to National Insurance rates benefit January pay packets</span></strong></p><p><span style="font-family: arial;">The 12% to 10% employees national insurance rate cut first announced in the Autumn Statement came into effect in January. This means that many employees will have seen a boost in their take home pay in their January pay packet.</span></p><p><span style="font-family: arial;">HM Revenue and Customs launched a tool (https://www.tax.service.gov.uk/estimate-jan-24-nic-changes) that enabled workers to estimate how the changes will affect them.</span></p><p><span style="font-family: arial;">The government is naturally keen to emphasise its generosity in this measure and have claimed that a household with two average earners will be starting to see a yearly benefit from the cut of almost £1,000. Naturally, how much benefit earners actually receive will depend on how near the average their earnings are.</span></p><p><span style="font-family: arial;">The rate reduction only applies to employees’ national insurance, and not employers’ national insurance. This means there is no direct saving for businesses. However, with many businesses under stress to grant pay rises that will combat the increasing cost of living, the reduction may prove to be a helpful component of pay strategy.</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-january-2024" href="https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-january-2024">https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-january-2024</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Pizzeria owner banned for six years for employing illegal workers</span></strong></p><p><span style="font-family: arial;">The owner of a pizzeria in Cumbria who failed to conduct right-to-work checks when hiring two illegal workers has been banned from acting as a company director for the next six years.</span></p><p><span style="font-family: arial;">The workers were found when the premises were visited by Immigration Enforcement in October 2020. Immigration Enforcement subsequently handed the business a £20,000 fine, which remained unpaid at the liquidation of the company.</span></p><p><span style="font-family: arial;">The owner, Dondu Ozmicco, was the sole director of NM Catering Ltd from its formation in 2019 until it was liquidated in March 2022.</span></p><p><span style="font-family: arial;">The Chief Investigator at the Insolvency Service, Kevin Read, said: “Dondu Ozmicco’s failure to ensure the required right-to-work checks were carried out led to the employment of two illegal workers, in contravention of the Immigration, Asylum and Nationality Act 2006. This represents a serious breach of legislation and of the standards expected of company directors. As a result of this breach, she cannot be involved in the promotion, formation or management of a company in the UK until January 2030.”</span></p><p><span style="font-family: arial;">A case like this serves as a stark reminder of the vital importance of conducting right-to-work checks when hiring new staff. If you need help with your payroll procedures including onboarding of new staff, please call us; we will be happy to help you!</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/six-year-ban-for-pizzeria-boss-who-employed-illegal-workers" href="https://www.gov.uk/government/news/six-year-ban-for-pizzeria-boss-who-employed-illegal-workers">https://www.gov.uk/government/news/six-year-ban-for-pizzeria-boss-who-employed-illegal-workers</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">No final decision yet on a digital pound</span></strong></p><p><span style="font-family: arial;">The Bank of England and HM Treasury have published their response to a consultation on a digital pound that was started in February 2023.</span></p><p><span style="font-family: arial;">The proposals for a digital pound include:</span></p><ul><li><span style="font-family: arial;">• It would complement the role of cash and give people and businesses more choice in how they make and accept payments.</span></li><li><span style="font-family: arial;">• The Bank of England would issue it and it would be convenient and widely available.</span></li><li><span style="font-family: arial;">• It would hold the same value as the equivalent banknote or coin, i.e. £10 of digital pound would always be worth the same as £10 in banknotes or coins.</span></li><li><span style="font-family: arial;">• It would be easily exchangeable with other forms of money, such as cash.</span></li><li><span style="font-family: arial;">• The public and businesses would access their digital pounds through digital wallets offered by the private sector through smartphones or smartcards.</span></li><li><span style="font-family: arial;">• It would be intended for payments online, in-store, and between individuals. It would not be used for savings and it would not pay interest.</span></li><li><span style="font-family: arial;">• At least initially, there would be restrictions on how much a business or individual could hold.</span></li></ul><p><span style="font-family: arial;">A digital pound would be a claim on the Bank of England, like banknotes. So, it would have intrinsic value and be stable, unlike cryptoassets that are unbacked.</span></p><p><span style="font-family: arial;">There has been no final decision to pursue a digital pound, but work will continue to explore its feasibility and potential design choices.</span></p><p><span style="font-family: arial;">Feedback received from the consultation seems largely to have been supportive, however concerns have been raised about what a digital pound implies for access to cash, privacy for users, and control of their money.</span></p><p><span style="font-family: arial;">The published response has confirmed that legislation would be introduced to protect and guarantee users’ privacy and control if the decision to go ahead does occur. It also confirms that neither the Bank of England nor the government would have any access to personal data and users would be free to spend their digital pounds as they choose.</span></p><p><span style="font-family: arial;">While there is no final decision as yet, clearly there is a willingness to continue considering the idea of a digital pound and this is unlikely to be the last word on the subject.</span></p><p><span style="font-family: arial;">See the response in full at: <a data-cke-saved-href="https://www.bankofengland.co.uk/paper/2024/responses-to-the-digital-pound-consultation-paper" href="https://www.bankofengland.co.uk/paper/2024/responses-to-the-digital-pound-consultation-paper">https://www.bankofengland.co.uk/paper/2024/responses-to-the-digital-pound-consultation-paper</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">ICO Targets Non-Compliant Advertising Cookies: A Call to Action for Website Owners</span></strong></p><p><span style="font-family: arial;">The Information Commissioner's Office (ICO) is intensifying its efforts to ensure compliance with data protection laws regarding advertising cookies, targeting some of the UK's top websites. In November, the ICO sent letters to 53 of the country's top 100 websites, cautioning them about potential enforcement action if changes were not made to align with data protection regulations.</span></p><p><span style="font-family: arial;">The ICO report that the response was positive. Out of the 53 organizations contacted, 38 have already adjusted their cookie banners to comply with regulations. Additionally, four organizations have committed to achieving compliance within the next month.</span></p><p><span style="font-family: arial;">In line with data protection laws, websites are expected to offer users a fair choice in consenting to the use of advertising cookies or similar technologies. Businesses that disregard these legal requirements will face consequences, as the ICO vows to extend its enforcement beyond the top 100 websites. The regulator is already gearing up to contact the next 100, and the 100 after that!</span></p><p><span style="font-family: arial;">To speed up their work in this area, the ICO is developing an artificial intelligence solution that will help them identify websites with non-compliant cookie banners. A 'hackathon' event scheduled for early 2024 will explore the practical implementation of this AI solution.</span></p><p><span style="font-family: arial;">The ICO's advice to all organizations is clear: take proactive measures to achieve compliance now, before they come knocking.</span></p><p><span style="font-family: arial;">With the ICO taking proactive steps to uphold data protection laws, it may be a good time for you to consider whether your website’s cookie banners are compliant.</span></p><p><span style="font-family: arial;">For guidance on the use of cookies, see: <a data-cke-saved-href="https://ico.org.uk/for-organisations/direct-marketing-and-privacy-and-electronic-communications/guide-to-pecr/guidance-on-the-use-of-cookies-and-similar-technologies/" href="https://ico.org.uk/for-organisations/direct-marketing-and-privacy-and-electronic-communications/guide-to-pecr/guidance-on-the-use-of-cookies-and-similar-technologies/">https://ico.org.uk/for-organisations/direct-marketing-and-privacy-and-electronic-communications/guide-to-pecr/guidance-on-the-use-of-cookies-and-similar-technologies/</a></span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/01/ico-warns-organisations-to-proactively-make-advertising-cookies-compliant/" href="https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/01/ico-warns-organisations-to-proactively-make-advertising-cookies-compliant/">https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/01/ico-warns-organisations-to-proactively-make-advertising-cookies-compliant/</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">AI Opportunity Forum members now appointed</span></strong></p><p><span style="font-family: arial;">AI continues to be high on the agenda in business and UK government policy. Members for a new forum, the AI Opportunity Forum, have now been appointed to help boost AI adoption amongst businesses.</span></p><p><span style="font-family: arial;">Microsoft, Google, Barclays and Vodafone are all included in the member ranks, with the first meeting to take place in February.</span></p><p><span style="font-family: arial;">AI is a hot topic in business, but adoption is slow. Estimates are that only one-in-ten organisations are currently fully prepared to roll out the technology. Whether those promoting AI fully understand the reasons for slow adoption is unclear from the press release. However, it is hoped that the new Forum will help to share best practice and identify measures businesses can adopt to improve their readiness for AI.</span></p><p><span style="font-family: arial;">Talking about the Forum, Michelle Donelan, who is Technology Secretary, said: “We want to see organisations across the UK tapping into the transformative power of AI to boost their productivity, unlock new opportunities, and drive growth. The AI Opportunity Forum brings together our brightest minds from the worlds of AI and business to drive forward that effort.”</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/business-and-tech-heavyweights-to-boost-productivity-through-ai" href="https://www.gov.uk/government/news/business-and-tech-heavyweights-to-boost-productivity-through-ai">https://www.gov.uk/government/news/business-and-tech-heavyweights-to-boost-productivity-through-ai</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">January 2024 Labour Market Overview highlights</span></strong></p><p><span style="font-family: arial;">The latest Labour Market Overview by the Office for National Statistics (ONS) showed the following highlights for the final months of 2023.</span></p><p><span style="font-family: arial;">Vacancies decline yet remain above pre-COVID levels:<br />The report reveals a continued decline in job vacancies, with the estimated number of vacancies in the UK decreasing by 49,000 in October to December 2023, marking the 18th consecutive quarterly fall. However, despite this prolonged decrease, the current estimate of 934,000 vacancies remains above the pre-coronavirus pandemic levels.</span></p><p><span style="font-family: arial;">Robust earnings growth:<br />Annual growth in regular earnings (excluding bonuses) reached 6.6% in September to November 2023. Simultaneously, the annual growth in employees' average total earnings, including bonuses, was 6.5% during the same period. In real terms, accounting for inflation, total pay rose by 1.3% year-on-year, and regular pay saw a 1.4% increase.</span></p><p><span style="font-family: arial;">Lowest working days lost due to labour disputes since May 2022:<br />The report highlights a significant drop in working days lost due to labour disputes in November 2023, totalling 69,000. This marks the lowest number since May 2022. Notably, over half of the labour disputes that did occur were in the transport, storage, information, and communication industries.</span></p><p><span style="font-family: arial;">Payrolled employees decrease in December 2023:<br />Estimates of payrolled employees in the UK for December 2023 show a decrease of 24,000 from the November 2023 figure, settling at 30.2 million. However, the number of payrolled employees is well above pre pandemic levels.</span></p><p><span style="font-family: arial;">Alternative employment estimates introduced:<br />Due to increased uncertainty surrounding the Labour Force Survey (LFS) estimates, the ONS have introduced an alternative series of estimates for September to November 2023. These figures indicate a 0.1 percentage point increase in the UK employment rate (16 to 64 years), bringing it to 75.8%. The unemployment rate (16 years and over) remained largely unchanged at 4.2%, while the economic inactivity rate (16 to 64 years) decreased by 0.1 percentage points to 20.8%.</span></p><p><span style="font-family: arial;">What do these statistics mean for you?</span></p><p><span style="font-family: arial;">The fact that job vacancies have decreased but the number of payrolled employees has also dropped suggests that there has been an overall reduction in jobs available. This may be further supported by the fact that while the unemployment rate has stayed unchanged, it is up on the year and remains higher than pre-pandemic rates.</span></p><p><span style="font-family: arial;">With the tight economic climate, businesses may well be looking at their workforce and reviewing the value of certain roles, not replacing leavers or even making some roles redundant.</span></p><p><span style="font-family: arial;">This highlights the value of taking time to think strategically about your business. While no one wants to make an employee redundant, an employee leaving does provide a trigger point for reviewing the requirements of a role. Questioning whether a leaving employee needs to be directly replaced can open the door to savings, or to improving business processes and efficiency.</span></p><p><span style="font-family: arial;">Strategic thinking about your business often starts with having a plan in place that you can regularly review. If you need help putting together a strategic plan for your business, please get in touch. We will be pleased to help you!</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabou" href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabou">https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/january2024</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Launch of 2024 Business Council</span></strong></p><p><span style="font-family: arial;">On 31<sup>st</sup> January 2024, the Prime Minister, Rishi Sunak, launched this year’s Business Council. The Council is comprised of leaders from FTSE 100 companies to small and medium-sized businesses. It will meet with the Prime Minister at Downing Street on a regular basis to share information.</span></p><p><span style="font-family: arial;">Chief executives from businesses such as BT Group, Nationwide, Scottish Power, Unilever, Barratt Developments, ITV, Raspberry Pi, and Greggs, as well as many other firms, will represent their business on the Council. The firms involved account for over 200,000 employees and cover a spread of industries across the UK.</span></p><p><span style="font-family: arial;">It is hoped that the Business Council will help to bring a real-world perspective on how business is being impacted by the current economic climate, as well as look at how government and industry can work together.</span></p><p><span style="font-family: arial;">For more information, see: <a data-cke-saved-href="https://www.gov.uk/government/news/2024-business-council-launched" href="https://www.gov.uk/government/news/2024-business-council-launched">https://www.gov.uk/government/news/2024-business-council-launched</a></span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-62553641940309794622024-02-02T15:33:00.004+00:002024-02-02T15:36:25.643+00:002nd February 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><h1><span style="font-family: arial;">YEAR END TAX PLANNING</span></h1><span style="font-family: arial;">It’s not too late to undertake some end of year tax planning. If you have some spare cash, an obvious tax planning point would be to maximise your ISA allowances for the 2023/24 tax year (currently £20,000 each). You might also want to consider increasing your pension savings before 5 April 2024.<br /></span><h1><span style="font-family: arial;">USE A LIFETIME ISA (LISA) TO SAVE FOR YOUR FIRST HOME</span></h1><span style="font-family: arial;">Those aged between 18 and 40 can set up a Lifetime ISA (Individual Savings Account) to buy their first home or save for later life. You can put in up to £4,000 each year until you’re 50. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. Note that the Lifetime ISA limit of £4,000 counts towards your £20,000 annual ISA limit.<br />You can withdraw money from your ISA if you’re:<br /></span><ul><li><span style="font-family: arial;">buying your first home,</span></li><li><span style="font-family: arial;">aged 60 or over, or</span></li><li><span style="font-family: arial;">terminally ill, with less than 12 months to live.</span></li></ul><span style="font-family: arial;">However, you’ll pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason (an unauthorised withdrawal). This recovers the government bonus you received on your original savings.<br /></span><h1><span style="font-family: arial;">PENSION PLANNING</span></h1><span style="font-family: arial;">Under the current rules, the government adds to your pension contributions at the 20% basic rate. For instance, if you save £4,000 in a personal pension, the government tops this up to £5,000. If you are a higher rate taxpayer there is a further £1,000 tax relief when your tax liability is calculated, reducing the net cost to £3,000.<br /><br />Additional pension contributions can be even more effective if your income is between £100,000 and £125,140 as the gross pension contribution reduces net income for the purposes of the reduction in the personal allowance. Note that for every £2 of income in excess of £100,000, the £12,570 personal allowance is reduced by £1, with reduction to nil where net income is £125,140 or more. This is effectively a 60% tax saving.<br /></span><h1><span style="font-family: arial;">CAPITAL GAINS TAX PLANNING</span></h1><span style="font-family: arial;">You might wish to consider bringing forward capital gains to before 6 April 2024 where you haven’t used your £6,000 CGT annual exemption. This exempt amount reduces to just £3,000 for gains made in 2024/25.<br /></span><h1><span style="font-family: arial;">CAPITAL EXPENDITURE PLANNING</span></h1><span style="font-family: arial;">Unless the business year end is 31 March or 5 April, the end of the tax year is not a significant date as far as capital allowances are concerned. In order for new equipment to attract capital allowances, the expenditure must be incurred on or before the end of the accounting period. Limited companies buying new (not second hand) equipment are entitled to fully expense the cost of most acquisitions against business profits. There is no financial limit on expenditure qualifying for this “full expensing” relief.<br /><br />Unincorporated businesses are entitled to 100% write off for the first £1 million spent on new and used equipment in a 12 month period. This “annual investment allowance” (AIA) is also available to limited companies buying second hand equipment. The AIA does not apply to motor cars but there is a special 100% tax relief if you buy a new zero-emissions motor car.<br /><br />Where equipment is bought under a hire purchase contract, the capital allowances outlined above are available on the full cost of the asset provided it has been brought into use by the end of the accounting period. This is despite the fact that the payments may be spread over a number of months.<br /></span><h1><span style="font-family: arial;">GET READY FOR MORE R&D CHANGES</span></h1><span style="font-family: arial;">On top of the major changes to research and development (R&D) tax relief that took effect from 1 April 2023, there are yet more changes that take effect from 1 April 2024.<br /><br />The main change from 1 April 2024 is that most companies carrying out qualifying R&D will be entitled to a 20% expenditure credit. The 20% is calculated on the amount of qualifying expenditure. Qualifying expenditure is extended to include subsidised expenditure from 1 April 2024, although R&D carried out overseas will no longer qualify unless the work cannot be undertaken in the UK.<br /><br />“R&D intensive” companies that make trading losses will continue to be entitled to a tax refund instead of the expenditure credit. The definition of “R&D intensive” is reduced from 40% to 30% from 1 April 2024, which means a company that spends at least 30% of total expenditure on qualifying R&D.<br />R&D tax relief continues to be a complex area and we can work with you to help you prepare a valid claim.<br /></span><h1><span style="font-family: arial;">ADVISORY FUEL RATE FOR COMPANY CARS</span></h1><span style="font-family: arial;">The table below sets out the HMRC advisory fuel rates from 1 March 2024. These are the suggested reimbursement rates for employees' private mileage using their company car.<br /> <br />Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.<br /> </span><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpwYqY2RYB6MePxxikk2URDDmXSdZejfOSSATUfUi0LojuB0l0kKxDYElg0ng1q9jUMcf8p78YGH6LVogqZjTCd1mIjA-Q7WvwhU3hhlm2wDLqS3qTKtfcCGljkQYPWM_IRKHYk13Lq6324W9djAZZuiv-6AnL_aoaG0GPqz4XTSgk3nBKQFjrbmOcOwMn/s285/Screenshot%202024-02-02%20at%2015.35.13.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="261" data-original-width="285" height="261" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpwYqY2RYB6MePxxikk2URDDmXSdZejfOSSATUfUi0LojuB0l0kKxDYElg0ng1q9jUMcf8p78YGH6LVogqZjTCd1mIjA-Q7WvwhU3hhlm2wDLqS3qTKtfcCGljkQYPWM_IRKHYk13Lq6324W9djAZZuiv-6AnL_aoaG0GPqz4XTSgk3nBKQFjrbmOcOwMn/s1600/Screenshot%202024-02-02%20at%2015.35.13.png" width="285" /></a></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><br /><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br />Where there has been a change the previous rate is shown in brackets.<br /> <br />You can also continue to use the previous rates for up to 1 month from the date the new rates apply.<br />Note that for hybrid cars you must use the petrol or diesel rate.<br />For fully electric vehicles the rate is 9p per mile.</span><h1><span style="font-family: arial;">DON’T BE LATE IN PAYING YOUR PERSONAL TAX BILL</span></h1><p><span style="font-family: arial;">2022/23 income tax, CGT, class 2 and 4 NIC liabilities should have been paid by 31 January 2024 unless you have agreed a payment plan with HMRC. Note that if the balance is still unpaid at the end of February 2024, a 5% surcharge penalty is added in addition to the normal interest charge unless a payment plan has been agreed.</span></p></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-46890508663344021762024-01-26T21:07:00.002+00:002024-01-26T21:07:07.571+00:0026th January 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>Mastering Cash Flow Forecasting</strong><br />In the dynamic world of managing a business, one of the most critical elements to success is effective cash flow management. Cash flow forecasting is a fundamental tool for business owners to navigate financial challenges and ensure sustained growth.<br /><br />In this article, we will delve into the importance of cash flow forecasting and talk about what is needed to master this essential financial practice.<br /><br /><u>Understanding Cash Flow Forecasting</u><br />Cash flow forecasting involves projecting future cash inflows and outflows to determine the financial health of a business. By anticipating cash needs and planning accordingly, you can make informed decisions that will help your business avoid potential pitfalls and enable the business to make the best of opportunities.<br /><br /><u>Why is Cash Flow Forecasting Crucial for Businesses?</u></span></p><ol><li><span style="font-family: arial;"><u>Anticipating and Preventing Shortfalls:</u> Unforeseen expenses or delays in receiving payment are a normal part of business and make it imperative to predict potential cash shortages. A cash flow forecast allows business owners to identify and address issues before they escalate, ensuring that there is always enough cash available to cover essential expenses. </span></li><li value="2"><span style="font-family: arial;"><u>Strategic Decision-Making:</u> Cash flow forecasts serve as invaluable tools for strategic decision-making. Whether planning an expansion, investing in new equipment, or hiring additional staff, having a clear understanding of the business's financial position enables you to make informed choices that align with your growth objectives. </span></li><li value="3"><span style="font-family: arial;"><u>Building Credibility with Stakeholders:</u> Lenders, investors, and suppliers are more likely to engage with businesses that demonstrate financial stability. Accurate cash flow forecasts instill confidence in them that your business is well managed. They also provide a way for you to communicate and provide reassurance on your business's financial plans.</span></li></ol> <u><span style="font-family: arial;">Steps to Master Cash Flow Forecasting:</span></u><ol><li><span style="font-family: arial;"><u>Gather Historical Data:</u> Begin by collecting historical financial data, such as income statements and balance sheets. This information serves as a foundation for predicting future cash flows. </span></li><li value="2"><span style="font-family: arial;"><u>Identify Income Sources:</u> List all potential sources of income, such as sales, loans, or investments. Estimate the timing and amounts of these income sources. Be realistic rather than optimistic in your estimating. Consider too whether the income will repeat regularly or not. </span></li><li value="3"><span style="font-family: arial;"><u>Track Fixed and Variable Expenses:</u> List all expenses and split them between those that are fixed and those that are variable. Fixed costs are those that remain constant, such as rent and utilities. Variable costs on the other hand will fluctuate, for example, raw materials or staff costs. Estimate the amount of these costs. The temptation can be to minimise the amount of these expenses, but again, be realistic in your estimating. </span></li><li value="4"><span style="font-family: arial;"><u>Consider Seasonal Trends:</u> If applicable, account for seasonal fluctuations in your business. Adjust your forecast to reflect periods of increased or decreased demand. This will help you ensure your business can navigate both peak and off-peak seasons. </span></li><li value="5"><span style="font-family: arial;"><u>Account for Contingencies:</u> Factor in unexpected events. It is not possible to plan for every possible scenario, and considering too many possible negative factors can discourage you from taking any positive steps. The point is just to build some contingencies into your forecast so that you have a buffer against unforeseen challenges. </span></li><li value="6"><span style="font-family: arial;"><u>Update Regularly:</u> A static cash flow forecast becomes obsolete quickly. Regularly update your projections based on actual performance. This allows you to refine your forecasting techniques and adapt to any changes. </span></li><li value="7"><span style="font-family: arial;"><u>Use Technology:</u> Use your accounting software and financial tools to streamline the cash flow forecasting process. These tools can automate data entry, track expenses, and generate accurate forecasts, saving you time and reducing the margin of error.</span></li></ol><span style="font-family: arial;"> In conclusion, cash flow forecasting is indispensable for business owners. Clearly understanding the cash position of your business and accurately projecting future cashflow will give you greater confidence. A robust cash flow forecasting system empowers you to make informed decisions, build credibility with stakeholders, and ensure long-term financial stability.<br /><br /><u>Please talk to us if you would like any help in this area. We have tools and resources that can help you with your cashflow forecasting and we would be happy to help!</u><br /> <br /><strong>UK businesses to save time and money on cross-border legal disputes</strong><br />Lord Bellamy, representing the UK, has now signed the 2019 Hague Convention, which the UK originally committed to joining in November 2023. Once ratified there is a wait of 12 months for the Convention to come into force in the UK, but at that point, it will apply to any judgments commenced after that date.<br /><br />The Hague Convention is a private law convention that sets out common rules to recognise and enforce foreign judgments in civil and commercial cases between the signatory states of the Convention. For instance, a judgment made by a court in the UK about a company will be recognised and enforced by the court of another nation that has signed up to the treaty.<br /><br />Businesses that trade internationally with businesses in other countries that have signed up to the Convention will benefit from this treaty. They will have greater certainty when dealing with litigation on contracts for international business and will save time and money if they need to enforce a judgment in another country.<br /><br />Lord Bellamy, the Justice Minister, said: "Joining the Hague Convention marks a significant step forward for the UK within private international law and strengthens our appeal to businesses as a centre for dispute resolution. <br /><br />"The robust and reliable regime the Convention offers for the recognition and enforcement of judgments will provide confidence to people and businesses who are involved in civil and commercial disputes as they live, work and do business across borders."<br /><br />Currently, there are 29 parties to the Hague Convention - the 27 EU Member States, the EU and Ukraine. Uruguay also joins from 1 October 2024. Israel, Costa Rica, the Russian Federation, and the United States have also signed the Convention and, like the UK, await ratification before joining.<br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-citizens-and-businesses-to-be-spared-time-and-money-on-cross-border-legal-disputes?" href="https://www.gov.uk/government/news/uk-citizens-and-businesses-to-be-spared-time-and-money-on-cross-border-legal-disputes?">https://www.gov.uk/government/news/uk-citizens-and-businesses-to-be-spared-time-and-money-on-cross-border-legal-disputes?</a><br /> <br /><strong>Financial fiasco: Company director given six-year ban after failing to explain spending of £3.5 million</strong><br />Mr Shakar Habib, director at Vista Training Solutions Limited, has been given a six-year ban following the discovery of significant financial irregularities.<br /><br />The company, in collaboration with other partner organisations, worked to help students find apprenticeships across London and received most of its funding from the Education and Skills Funding Agency (ESFA). Mr Habib served as sole director of the company from November 2015 through to the company's abrupt liquidation in February 2020.<br /><br />The company liquidated with a debt due to ESFA of more than £2.5 million. A subsequent investigation, jointly conducted by the Insolvency Service and ESFA, found that Mr Habib was unable to account for a staggering £3.5 million from the company's accounts.<br /><br />Investigators found that Mr Habib had not kept adequate company accounts, and records from April 2019 onwards were missing altogether. This meant that it was impossible to verify whether or not the £3.5 million were legitimate expenses of the company.<br />In addition, because there were no financial records, the investigators could not account for £525,000 in assets. Work is continuing to see whether it is possible to recover any of the money.<br /><br />Mr Habib's ban prevents him from promoting, forming, or managing a company without the court's permission.<br /><br />Of course, it is difficult to imagine that these financial irregularities were just the result of poor record keeping. However, it is a good reminder that directors have a legal obligation to keep proper accounting records. If you are finding it a challenge to keep your accounts up to date, why not give us a call and see how we can help?<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/six-year-ban-for-boss-of-collapsed-training-company-who-failed-to-explain-35-million-spending?" href="https://www.gov.uk/government/news/six-year-ban-for-boss-of-collapsed-training-company-who-failed-to-explain-35-million-spending?">https://www.gov.uk/government/news/six-year-ban-for-boss-of-collapsed-training-company-who-failed-to-explain-35-million-spending?</a><br /> <br /><strong>Nuclear power to expand in the UK</strong><br />The UK government has announced plans for expanding nuclear power in the UK. The Civil Nuclear Roadmap sets out how the UK will increase generation of nuclear-powered electricity so that by 2050 it is enough to provide a quarter of the UK's electricity needs.<br /><br />Prompted by price volatility, increasing uncertainty abroad, and environmental concerns, the roadmap will help to continue the UK's efforts to have a more secure electricity supply and meet carbon neutral targets.<br /><br />The roadmap acknowledges that investment in nuclear energy has fallen back in recent decades but commits to reverse this trend.<br />Besides the projects currently being developed at Hinkley Point and Sizewell, there are plans to explore a further large-scale reactor project.<br /><br />There are also plans to deploy Small Modular Reactors (SMR). These are reactors that are smaller and can be manufactured in factories rather than on-site - as is currently the case with Large-Scale Nuclear Reactors such as Hinkley Point and Sizewell. It is hoped that these will make construction faster and less expensive.<br /><br />Investment is also planned in research and development on more efficient means of producing nuclear power, as well as producing nuclear fuel for use in the UK and sale overseas.<br /><br />These ambitious plans will create opportunities for businesses and developers that are in or linked to the Civil Nuclear industry.<br /><br />See: <a data-cke-saved-href="https://assets.publishing.service.gov.uk/media/659fb2783308d200131fbe17/6.8610_DESNZ_Civil_Nuclear_Roadmap_report.pdf" href="https://assets.publishing.service.gov.uk/media/659fb2783308d200131fbe17/6.8610_DESNZ_Civil_Nuclear_Roadmap_report.pdf">https://assets.publishing.service.gov.uk/media/659fb2783308d200131fbe17/6.8610_DESNZ_Civil_Nuclear_Roadmap_report.pdf</a><br /><br /><strong>HMRC approve tax bill payment plans for 44,800 taxpayers</strong><br />HM Revenue and Customs (HMRC) have announced that nearly 44,800 people have sorted their upcoming 31 January tax bill by setting up a payment plan.<br /><br />HMRC provide the option of a monthly payment called Time to Pay (see link below). Provided taxpayers owe less than £30,000, they can use HMRC's affordability checker for help to decide on what arrangement will work best for them.<br /><br />This arrangement must be set up before 31 January to avoid facing a penalty. Interest will be applied to any outstanding balances from 1 February.<br />If you need help working out how to make your tax payment or to set up a payment arrangement, please call us and we will be happy to help!<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments" href="https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments">https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments</a><br /> <br /><strong>Post Office Horizon scandal: A stark reminder to prioritise people over systems</strong><br />The recent Post Office Horizon scandal, given further exposure by the related TV drama, provides a cautionary tale about the perils of overlooking the human impact of technology decisions.<br /><br />The Post Office's Horizon accounting system erroneously implicated postmasters in financial irregularities and led to severe consequences, including loss of reputation and even imprisonment, for innocent individuals.<br /><br />These mistakes have underscored the importance of emphasising the human element in decision-making processes and the danger of relying too heavily on technology. This is a particularly pertinent reminder in view of the increased use of AI in business processes.<br /><br />For business owners keen to avoid a similar pitfall, it would be prudent to give adequate thought to key questions such as:</span><ul><li><span style="font-family: arial;">What safeguards and oversight mechanisms do we have in place to prevent unintended consequences that could harm individuals or communities? </span></li><li><span style="font-family: arial;">Before implementing new technologies or systems, have we done thorough due diligence to assess the potential consequences on individuals, customers, and employees? </span></li><li><span style="font-family: arial;">Do we conduct a reasonableness check before accepting a conclusion direct from a technology source? </span></li><li><span style="font-family: arial;">Are we so reliant on technology that we would not be able to tell whether a mistake has been made?</span></li></ul><span style="font-family: arial;"> Looking at the ramifications and costs of the scandal, placing people at the forefront of decision-making processes is not just ethically sound but could be vital for the ongoing success and sustainability of the business.<br /> <br /><strong>CMA publishes provisional approach to implementing the new Digital Markets competition regime</strong><br />The Competition and Markets Authority (CMA) has published an overview of its provisional approach to implementing the new Digital Markets competition regime.<br /><br />UK parliament is currently considering the Digital Markets, Competition and Consumers Bill (the DMCC Bill). This legislation is designed to tackle the problem of many digital services across digital markets being provided by the same small number of tech firms and recognising that current anti-competition legislation does not adequately cater for digital markets.<br /><br />The overview sets out how the CMA plan to apply the legislation. They are committed to using a targeted, evidence-based, and proportionate approach, but it is clear that they are keen to make use of the legislation to level the competition playing field. They already plan to start 3 to 4 investigations within the first year, looking at whether the business concerned has Strategic Market Status in relation to one or more digital activities.<br /><br />Where the CMA detects that a business is leveraging its status for an unfair competitive edge, it will take action to address this behaviour. This may include imposing conduct requirements.<br /><br />Examples of these requirements might include prohibiting the business from giving preferential treatment to their own products and services, allowing interoperability of products and services from other businesses with their own offerings, or compelling them to enhance transparency around certain aspects of their algorithms.<br /><br />If approved, the new digital markets competition regime will help tech challenger businesses compete and help all - businesses and consumers alike - to be more confident of getting great choices and fair deals when buying digital services.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/publications/overview-of-the-cmas-provisional-approach-to-implement-the-new-digital-markets-competition-regime" href="https://www.gov.uk/government/publications/overview-of-the-cmas-provisional-approach-to-implement-the-new-digital-markets-competition-regime">https://www.gov.uk/government/publications/overview-of-the-cmas-provisional-approach-to-implement-the-new-digital-markets-competition-regime</a><br /> <br /><strong>Inflation up but interest rate cuts still expected</strong><br />Inflation figures for December show a small increase to 4% from 3.9% in November.<br /><br />Economists had expected inflation to fall slightly, but a 12.9% increase in prices for alcohol and tobacco were behind the rise.<br /><br />Expectations for the Bank of England to cut the base rate later in the year remain though. Energy bills are predicted to drop in 2024 and inflation has fallen from its peak of 11.1% in October 2022 more quickly than the Bank predicted.<br /><br />The Bank's target is 2%, so December's inflation figure of 4% is still double the target.<br /><br />Deputy chief UK economist at Capital Economics, Ruth Gregory, has been quoted as saying that she expects inflation to have fallen below 2% by April and feels that interest rates could be cut by June.<br /><br />The Bank of England's base rate is currently 5.25%.<br /><br />See: <a data-cke-saved-href="https://www.bbc.co.uk/news/business-67993276" href="https://www.bbc.co.uk/news/business-67993276">https://www.bbc.co.uk/news/business-67993276</a><br /> <br /><strong>Consultation on proposals for a new threshold for businesses to be able to access the Energy Ombudsman</strong><br />A UK government consultation is in process looking at introducing a new threshold for bringing cases to the Energy Ombudsman that will include small businesses.<br /><br />Currently, most small businesses that have a dispute with their energy supplier are unable to access the Energy Ombudsman for help with dispute<br />resolution.<br /><br />The consultation proposes that there be a new small business definition that will expand access to businesses with:</span><ul><li><span style="font-family: arial;">up to 50 employees; and</span></li><li><span style="font-family: arial;">less than £6.5 million annual turnover or £5 million balance sheet total; or</span></li><li><span style="font-family: arial;">annual electricity consumption of less than 500,000kWh; or</span></li><li><span style="font-family: arial;">annual gas consumption of less than 500,000kWh</span></li></ul><p><span style="font-family: arial;">The consultation proposals and details for how to respond are available at: <a data-cke-saved-href="https://www.gov.uk/government/consultations/new-threshold-for-businesses-accessing-the-energy-ombudsman" href="https://www.gov.uk/government/consultations/new-threshold-for-businesses-accessing-the-energy-ombudsman">https://www.gov.uk/government/consultations/new-threshold-for-businesses-accessing-the-energy-ombudsman</a><br /> <br /><strong>Changes to import procedures for Irish goods from 31 January</strong><br />The Border Target Operating Model sets out the UK's final plans for a new approach to importing goods into Great Britain. The changes will be introduced progressively from 31 January 2024.<br /><br />Where goods are being imported directly from Ireland (and not being moved from or through Northern Ireland), there will be new checks and controls in place. This will apply, for instance, to goods being moved from Dublin and Rosslare ports to Liverpool and Holyhead ports.<br /><br />New biosecurity and security controls are being introduced from the end of January for all imported goods. However, full customs controls are being brought in for Irish goods being imported directly from this date too. This is a change to current arrangements.<br /><br />When moving these goods, it will generally be necessary to make import customs declarations at the point of import. Ports will not release goods unless they have received customs clearance.<br /><br />Where these regulations apply to your business, it is important that you or your staff know what to do from 31 January 2024.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023?&utm_source=te&utm_medium=stk_email&utm_campaign=northern_ireland&utm_content=07_11_2023" href="https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023?&utm_source=te&utm_medium=stk_email&utm_campaign=northern_ireland&utm_content=07_11_2023">https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023?&utm_source=te&utm_medium=stk_email&utm_campaign=northern_ireland&utm_content=07_11_2023</a></span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-25633630311756429742024-01-19T07:39:00.001+00:002024-01-19T07:39:07.171+00:0019th January 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>Adapting to Change: Essential Strategies for Business Success</strong><br />With all the changeable weather we have been having recently we hope you have been able to stay dry and warm!<br /><br />Change is not only confined to the weather, but it is also an inevitable facet of the business landscape. Whether prompted by technological advancements, market fluctuations, or internal restructuring, the ability to manage and navigate change effectively is crucial for sustained success. Businesses that embrace change as an opportunity rather than a threat are better positioned to thrive in today's dynamic environments.<br /><br />What can help us to adapt to change successfully?<br /><br /><u>Understanding the Need for Change:</u><br />The first step in managing change is acknowledging the need for it. Recognise the factors driving change - be they evolving consumer preferences, disruptive technologies, or competitive pressures. A thorough understanding of what is causing the change enables businesses to develop a proactive approach that may even be able to control the effects of the change, rather than simply reacting, which often means acting too late.<br /><br /><u>Effective Communication:</u><br />Communication lies at the heart of successful change management. Transparent and open communication help to convey the reasons behind change, its potential impact, and the vision for the path forward. Engage with your employees, stakeholders, and partners, fostering a culture where ideas, concerns, and feedback are valued.<br /><br /><u>Leadership and Vision:</u><br />Strong leadership is pivotal during times of change. Leaders need to articulate a compelling vision that inspires and motivates the workforce. A clear direction provides a sense of purpose and will help guide everyone through the transition so that everyone’s efforts stay aligned with the end goals.<br /><br /><u>Embrace Flexibility and Adaptability:</u><br />Flexibility is key in adapting to change. Businesses must be prepared to pivot, adjust strategies, and adopt new approaches as circumstances evolve. An agile, flexible mindset allows a business to respond quickly to challenges and opportunities.<br /><br /><u>Empower and Involve Employees:</u><br />Involve your employees in the change process. Invite their input, involve them in decision-making, and provide training and skill development opportunities so that they are equipped for what the changes will bring. Empowered employees become advocates of the change you want and will help to drive implementation from within.<br /><br /><u>Manage Resistance Effectively:</u><br />Resistance to change is natural, so it is important to acknowledge concerns and address them sympathetically. Encourage open discussion, providing support where necessary. Offer clarity on how the change will benefit individuals and the business as a whole. If you can address resistance early, you can prevent it from becoming a roadblock.<br /><br /><u>Evaluate and Learn:</u><br />It is crucial to continuously evaluate and learn throughout the change process. Monitor progress, gather feedback, and be willing to make adjustments as necessary. Avoid viewing setbacks as failures; instead see them as an opportunity to learn lessons that will help you in the future.<br /><br /><u>Celebrate Milestones:</u><br />Recognize and celebrate achievements and milestones reached during the change journey. This promotes a sense of accomplishment, boosts morale, and reinforces the positive aspects of change, motivating individuals for future endeavours.<br /><br />In conclusion, managing change in business is not just about navigating through it, but rather it can be embraced as an opportunity for your business to grow and innovate. Your successfully managing change not only ensures resilience but positions your business for sustained success in an ever-evolving marketplace.<br /><br /><u>We have useful tools and checklists to help you assess your systems and manage change. Please talk to us about how we can help you to continue making your business a success!</u><br /> <br /><strong>Holiday pay and entitlement reforms</strong><br />Coming into force from 1 January 2024, the Working Time Regulations, as amended by The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, introduced reforms that simplify holiday pay and entitlements.<br /><br />Following Brexit, any European laws that were retained in the UK automatically expired on December 31 unless legislation was brought in to keep them.<br />The Employment Rights Regulations 2023 do just that and are applicable across the UK. As well as reinstating some EU laws, these regulations make several changes to existing laws.<br /><br />These reforms include changes that affect rates of holiday pay and annual leave. They also cover handling irregular hours and part-year workers, accrual of COVID-19 carryover of leave, and rolled-up holiday pay.<br /><br /><u>Holiday entitlement</u><br />The Regulations define what an irregular hours or part-year worker is and makes changes for how their holiday entitlement for holiday years beginning 1 April 2024 and onwards are accrued.<br /><br />Employers will need to calculate holiday entitlement for such workers at 12.07% of the hours worked in any pay period. This does not apply to the calculations for regular hours workers.<br /><br /><u>Holiday pay</u><br />The Regulations specify that all full-year workers are legally entitled to 5.6 weeks of paid statutory holiday entitlement per year. These are split into two pots.</span></p><ul><li><span style="font-family: arial;">Four weeks - the original EU leave entitlement - must be paid at the employee's 'normal' rate of pay and the regulations now specify that this includes overtime pay, commission and allowances.</span></li><li><span style="font-family: arial;">The remaining 1.6 weeks - an addition made by the UK - only have to be paid at the employee's 'basic' rate of pay.</span></li></ul><span style="font-family: arial;"> The government has produced guidance containing examples and calculation methods based on the legal minimums set out in the Regulations.<br /><br />Of course, many workers have contracts that entitle them to holiday that exceeds the statutory minimum. Or the changes may make the standard holiday clauses used in an employer’s employment contract no longer legal. Businesses are therefore encouraged to first check individual employment contracts, and if necessary, seek independent legal advice.<br /><br />If you need any help with running your payroll, please get in touch with us. We will be very happy to help you!<br /><br />See the guidance here: <a data-cke-saved-href="https://www.gov.uk/government/publications/simplifying-holiday-entitlement-and-holiday-pay-calculations/holiday-pay-and-entitlement-reforms-from-1-january-2024" href="https://www.gov.uk/government/publications/simplifying-holiday-entitlement-and-holiday-pay-calculations/holiday-pay-and-entitlement-reforms-from-1-january-2024">https://www.gov.uk/government/publications/simplifying-holiday-entitlement-and-holiday-pay-calculations/holiday-pay-and-entitlement-reforms-from-1-january-2024</a><br /> <br /><strong>Self Assessment tax return and payment of tax bill due by 31 January 2024</strong><br />The deadline for filing Self Assessment tax returns and paying tax bills for the 2022/23 tax year is Wednesday 31 January 2024 at 11:59pm.<br /><br />HM Revenue and Customs is encouraging taxpayers to get their tax return filed as early as possible so that they can know how much tax they owe and be ready to make the payment by 31 January.<br /><br />Support is available for taxpayers that are unable to pay in full. However, failing to file and pay tax by the deadline will result in penalties and interest.<br /><br />If you need any help with filing your Self Assessment tax return, please call us and we will be happy to help!<br /> <br /><strong>Pilot project to help directors deal with cyber security risk</strong><br />Arculus Ltd, a cyber security consultancy, has been tasked by the UK government to lead a pilot project that is aimed at helping directors of UK organisations in managing their cyber security risks.<br /><br />The government are looking to improve the cyber resilience of organisations and this project will help inform policy that can help with this.<br /><br />Arculus is actively seeking participants from organisations of all sizes and sectors. They are looking for directors, non-executive directors, and senior leaders who are responsible for managing cyber security risks in their organisations. This could include heads of departments, business owners, or charity trustees.<br /><br /><u>What will be involved?</u><br />Participants will be asked to implement suggested cyber governance principles within their organisation and then share their feedback based on their experiences.<br /><br />A non-technical questionnaire will need to be completed at the start of the project, and then again at the end. There will be multiple online sessions for<br />feedback discussions.<br /><br />The government and Articulus have reassured participants that their involvement is entirely confidential and voluntary, and no specific IT knowledge or technical expertise is needed.<br /><br />The project is scheduled to run from early January to early March 2024. A detailed report on the findings will be publicly released on gov.uk, however any participating organisations will remain anonymous on the report.<br /><br />For inquiries or to register interest in participating, email: copresearch@dsit.gov.uk<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/publications/uk-cyber-governance-project?utm_source=pocket_saves" href="https://www.gov.uk/government/publications/uk-cyber-governance-project?utm_source=pocket_saves">https://www.gov.uk/government/publications/uk-cyber-governance-project?utm_source=pocket_saves</a><br /> <br /><strong>Make your wellbeing a priority in 2024</strong><br />Many of us make resolutions in January to try and reduce work-related stress and improve our wellbeing. But they can quickly fall by the wayside once we get back into the swing of work and running our business.<br /><br />Are there any simple practical steps you could take to improve your wellbeing and that of your staff in 2024?<br /><br /><u>1. Set boundaries</u><br />Technology has brought many gains in productivity and efficiency, but it has also meant that we are more connected to work than ever. Being constantly available can make it difficult to switch off and may lead to feelings of burnout.<br /><br />Setting boundaries so that work doesn't invade your home life can give you proper rest and help you to feel more energised. Exactly where those boundaries lie is likely to be unique to you, so the important thing is to decide what is right for you and then communicate that to others.<br /><br />Why not try:</span><ul><li><span style="font-family: arial;">Using your status message on Teams, or 'out of office,' to show when you are or aren't available?</span></li><li><span style="font-family: arial;">Having separate communication methods - email address or messaging apps - for your work and private life?</span></li><li><span style="font-family: arial;">If you work from home, creating a workspace environment where you can shut the door at the end of the day and finish work?</span></li><li><span style="font-family: arial;">Scheduling down time and treating that time as important and urgent as any work appointment?</span></li></ul> <span style="font-family: arial;"><u>2. Stay connected</u><br />We can feel that a situation we are going through or an experience we have had is unique to us. However, this is rarely the case. Often there are others in our network, whether professional or personal, who have undergone or are undergoing something similar. Tapping into this resource can help us to find successful coping strategies.<br /><br />Therefore, rather than isolating and trying to work even harder when under stress, why not try reaching out to others?<br /><br />Could you regularly take some time out for a coffee or lunch with someone you have not seen for a while? Do you belong to (or could you join) a professional organisation that has networking opportunities?<br /><br />Building up in-person connections can help you to gain a greater sense of community and a feeling of being connected that will make a huge difference to your wellbeing.<br /><br /><u>3. Give back</u><br />Giving not only benefits the recipient, but also has considerable effects on the wellbeing of the giver.<br /><br />Work can provide many opportunities for giving back. Why not try:</span><ul><li><span style="font-family: arial;">Offering to help a colleague or business contact with something?</span></li><li><span style="font-family: arial;">Making a coffee for colleagues?</span></li><li><span style="font-family: arial;">Giving a card or small gift to a colleague who has been through a life event?</span></li><li><span style="font-family: arial;">Volunteering to mentor or coach someone, whether in the workplace or via a voluntary role in a membership organisation you belong to?</span></li></ul><span style="font-family: arial;"> Caring for wellbeing is a constant balancing act, but setting boundaries that allow you to get proper rest, staying connected with others, and finding opportunities to give back can all help!<br /> <br /><strong>Great Taste Awards - Entries open in January 2024</strong><br />For food or drink producers, the Guild of Fine Food's Great Taste awards can be an excellent way to promote products and get them noticed by more consumers. Entries for the 2024 awards have now started.<br /><br />According to the Guild, winning a Great Taste award encourages confidence and commercial success for small businesses, as well as motivating your team and generating greater awareness for products. Entering also provides an opportunity to get cost-effective feedback from industry experts since each entry will be given constructive feedback, regardless of whether the produce gets an award.<br /><br />A panel of over 500 experts will be used to test food or drink who then issue a star rating. 1, 2, and 3-star winners can then use branded labels, bunting, and aprons to promote their products. Logo artwork and certificates are also available. The Guild will also help with finding potential UK stockists.<br /><br />Guild members have a fortnight head start on entry and a lower entry cost during 8 - 22 January. General entry opens on 22 January 2024 and closes on 6 February 2024.<br /><br />Judging will take place during March to June 2024 with results being announced and feedback given on 30 July 2024.<br /><br />To find out more and enter please see: <a data-cke-saved-href="https://gff.co.uk/for-producers/great-taste/" href="https://gff.co.uk/for-producers/great-taste/">https://gff.co.uk/for-producers/great-taste/</a><br /> <br /><strong>Discover Digital Transformation – A free online training programme</strong><br />Innovate UK BridgeAI is funding an online training course to help businesses and organisations explore digital, data-driven and AI technologies.<br /><br />The training course is designed with decision-makers in mind, in businesses and organisations of any size in agriculture, creative industries, construction, and transportation. It will help you decide what your organisation needs and put together an action plan for making your business digital ready.<br /><br />This introductory-level series will explain why and how to implement AI to best benefit your business.<br /><br />There are five sessions that can be taken individually or as a series. The sessions include:</span><ul><li><span style="font-family: arial;">Making data work for you</span></li><li><span style="font-family: arial;">AI applications in industry</span></li><li><span style="font-family: arial;">Modelling: A fundamental capability</span></li><li><span style="font-family: arial;">Why digital twins?</span></li><li><span style="font-family: arial;">Scalable platforms supporting digital transformation</span></li></ul><span style="font-family: arial;"> The 5 sessions are first being run in a weekly series starting Wednesday 24 January 2024. A second series begins on Tuesday 2 April 2024, with a third series commencing Wednesday 18 September 2024.<br /><br />The training programme is free and you can register on this page: <a data-cke-saved-href="https://iuk.ktn-uk.org/opportunities/discover-digital-transformation-training-programme/?dm_i=2VFU,1FVAJ,8U1M3N,5PJA3,1" href="https://iuk.ktn-uk.org/opportunities/discover-digital-transformation-training-programme/?dm_i=2VFU,1FVAJ,8U1M3N,5PJA3,1">https://iuk.ktn-uk.org/opportunities/discover-digital-transformation-training-programme/?dm_i=2VFU,1FVAJ,8U1M3N,5PJA3,1</a><br /> <br /><strong>Second call for Digital Innovation Fund</strong><br />A second round of funding has been launched by Smart Manufacturing Data Hub (SMDH) for their Digital Innovation Fund. This funding is available to all small and medium sized businesses across the UK.<br /><br />SMDH state that this second call "focusses on developing rapid demonstrator solutions that enable SMEs to advance their smart manufacturing journeys, de-risking major investment yet enabling growth."<br /><br />Small and medium sized businesses in the manufacturing sector that can demonstrate demand for a new data driven solution can apply for grant funding of up to £50,000.<br /><br />The funding can then be used to help develop the concept into a market ready solution. A requirement of the grant is that this be done within 6 months of the grant award.<br /><br />Further information about the grant and how to apply can be found here: <a data-cke-saved-href="https://smdh.uk/demonstrator" href="https://smdh.uk/demonstrator">https://smdh.uk/demonstrator</a><br /> <br /><strong>Funding for needle free medicine delivery available</strong><br />Innovate UK, a part of UK Research and Innovation, are aiming to invest up to £1 million in projects that will support developing and manufacturing needle free technologies to administer medicine.<br /><br />The funding is available for feasibility studies that investigate the technologies enabling administering medicine without needles.<br /><br />A grant funding request must be between £50,000 and £100,000 and needs to show how the project will improve the productivity, competitiveness and growth for at least one UK micro, small or medium sized enterprise involved in the project.<br /><br />The deadline for applications is 11am on 14 February 2024.<br /> <br />Further details about what is involved and how to apply can be found here: <a data-cke-saved-href="https://apply-for-innovation-funding.service.gov.uk/competition/1832/overview/3430c599-f5e8-4eb3-9693-8b7e12cb0a20" href="https://apply-for-innovation-funding.service.gov.uk/competition/1832/overview/3430c599-f5e8-4eb3-9693-8b7e12cb0a20">https://apply-for-innovation-funding.service.gov.uk/competition/1832/overview/3430c599-f5e8-4eb3-9693-8b7e12cb0a20</a><br /> <br /><strong>Support for flood damage available</strong><br />Storm Henk caused widespread flooding and damage across England during the first few days of 2024, affecting households and businesses alike.<br /><br />Following this, the government has announced that financial support is available to eligible areas in England that have experienced exceptional localised<br />flooding.<br /><br />In these eligible areas, the following help will be made available to significantly affected and eligible businesses:</span><ul><li><span style="font-family: arial;">100% business rates relief for at least 3 months;</span></li><li><span style="font-family: arial;">Up to £2,500 from the Business Recovery Grant that can be applied for by small-to-medium sized businesses to help quickly return to business as usual;</span></li><li><span style="font-family: arial;">£5,000 from the Property Flood Resilience Repair Grant Scheme to help business property owners make their business more resilient to future flooding; and</span></li><li><span style="font-family: arial;">£25,000 through the Farming Recovery Land towards repair and reinstatement costs for farmers suffering uninsurable damage to their land.</span></li></ul><p><span style="font-family: arial;">This help is available through a scheme called the Flood Recovery Framework. This framework is used to help support councils and communities in exceptional circumstances after severe flooding.<br /><br />The support can be accessed through councils in the eligible areas. The councils will announce additional details on who is eligible and how to apply.</span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-30833538206649968072024-01-12T09:56:00.008+00:002024-01-12T09:58:19.975+00:00 12th January 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Happy New Year, and welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>2024 - A year for flexibility?</strong><br /><br />Looking back at 2023, we have been amazed at the resilient way our clients have handled the uncertain economy. You have demonstrated to us how we can all be flexible and readily adapt to a change in circumstances!<br /><br />We hope that by this time next year we all will be looking back on a more settled 2024. However, we have to admit that uncertainty is an inevitable part of business life.<br /><br />With this in mind, for January, we are encouraging all clients to take time to prepare a 2024 Strategic Plan. A plan that will set you on a course to success.<br /><em>"A sailor without a destination will never get a favourable wind!"</em><br /><br />We all know this simple truth: It is easier to get to your destination with a plan. When you are driving from A to B, it helps to know where B is and the direction you need to take to get there.<br /><br />If you have a vision of what you want your business to look like when it is "complete" then you will be able to 'drive' your business towards that vision and monitor how you are doing as you go along.<br /><br />Without a strategic plan, you could end up like flotsam in the sea; being blown 'this way and that way' without any control.<br /><br />On the other hand, a plan helps you to keep your business focused on the things it is good at doing. It helps you determine where to spend time, resources and money for the best effect.<br /><br /><u>How do you put together a strategic plan?</u></span></p><ul><li><span style="font-family: arial;"><strong>Take time to review your own personal objectives.</strong> The business is there to provide you with what you want from life. Do not forget this.</span></li><li><span style="font-family: arial;"><strong>Look at where you are now.</strong> Assess your strengths, weaknesses, opportunities, and threats. Identify your position in the marketplace, the competition, your systems, and what you are good (and not good) at. </span></li><li><span style="font-family: arial;"><strong>Focus on where you want to be.</strong> Look ahead (say) 2 years. What do you want your business to look like when it is running profitably and successfully? This will help you determine your priorities - the big issues on which you need to focus. This is the strategic plan! </span></li><li><span style="font-family: arial;"><strong>Write your vision down (or type it up!).</strong> Define what must be achieved and the actions you need to take.</span></li><li><span style="font-family: arial;"><strong>Allocate responsibility.</strong> Specify who is responsible for doing what. </span></li><li><span style="font-family: arial;"><strong>Monitor, review and adjust.</strong> Monitor how you are doing each month against your plan and consider what needs to be done to keep you moving forward. If your plan begins to look unrealistic, be prepared to review and adjust it.</span></li></ul> <span style="font-family: arial;"><u>We have useful tools and checklists to help you analyse where you are now, set a strategy, agree actions and then monitor them. Please talk to us about how we can help you achieve your goals - we have helped many other businesses grow and succeed!</u><br /> <br /><strong>Zero emission vehicle transition by 2035 now law</strong><br />The government has set a pathway towards all new cars and vans being zero emission by 2035. This zero emission vehicle mandate became law on 3 January 2024.<br /><br />The press release marking the commencement of the new laws comments that the UK now has the most ambitious regulatory framework for the switch to electric vehicles of any country in the world. The mandate is expected to help the car industry and manufacturers to have certainty and be able to safeguard jobs.<br /><br />Originally the ban on new diesel and petrol cars was set to come into force in 2030, however this was pushed back to 2035 by the Prime Minister, Rishi Sunak, in September 2023. Availability of new electric cars, high costs, concerns about practicality from small businesses, and a lack of nationwide charging infrastructure were cited as the main reasons for the decision.<br /><br />The postponement took the pressure off businesses and consumers alike but added uncertainty for businesses and investors involved in electric cars and the related technology. By making the mandate law it seems the government hopes to demonstrate a solid commitment to their pathway for zero emission vehicle transition by 2035.<br /><br />In addition to setting the end date, the zero emission vehicle mandate also specifies the percentage of new zero emission cars and vans that manufacturers will have to produce each year up until 2030. The mandate requires that 80% of new cars and 70% of new vans sold in Great Britain be zero emission by 2030. This will then increase to 100% by 2035.<br /><br />The UK's charging network continues to grow. The government reports that there are now over 50,000 public chargepoints, a 44% increase on this time last year. The target is 300,000 chargepoints by 2030.<br /><br />Businesses should therefore be considering this mandate when reviewing company car and van purchases. There are tax advantages to having an electric vehicle as a company car with reduced benefit in kind costs, although these need to be weighed against the purchase cost.<br /><br />It is also worth remembering that there is a plug-in van grant of up to £2,500 for small vans and £5,000 for large vans available at least until 2025 that can help defray the cost. For guidance on the grant, click here: <a data-cke-saved-href="https://www.gov.uk/plug-in-vehicle-grants/vans" href="https://www.gov.uk/plug-in-vehicle-grants/vans">Plug-in Van Grant guidance</a><br /><br />If you would like any help with assessing the costs and tax on electric vehicles, please feel free to contact us. We would be happy to help!<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/pathway-for-zero-emission-vehicle-transition-by-2035-becomes-law" href="https://www.gov.uk/government/news/pathway-for-zero-emission-vehicle-transition-by-2035-becomes-law">https://www.gov.uk/government/news/pathway-for-zero-emission-vehicle-transition-by-2035-becomes-law</a><br /> <br /><strong>Draft business guidance to boost skills and unlock the benefits of AI</strong><br />Businesses across the UK are to receive new support in unlocking the full potential of AI within their workforce.<br /><br />As part of the UK government's National AI Strategy, The Alan Turing Institute is developing guidance designed to empower businesses and individuals to embrace AI. They published a draft version of the new guidance last month and held a brief public consultation inviting feedback from employers and training providers.<br /><br />According to The Alan Turing Institute, this document is "the first step towards developing a full framework, which aims to support employers, employees, and training providers to identify upskilling routes and understand the competencies required to deliver value from AI."<br /><br />The guidance is a high-level reference that sets out the competences needed across five key areas and will help employers to identify upskilling needs across their workforce.<br /><br />You can download a copy of the draft "AI Skills for Business Competency Framework" document here: <a data-cke-saved-href="https://iuk.ktn-uk.org/wp-content/uploads/2023/11/Final_BridgeAI_Framework.pdf" href="https://iuk.ktn-uk.org/wp-content/uploads/2023/11/Final_BridgeAI_Framework.pdf">https://iuk.ktn-uk.org/wp-content/uploads/2023/11/Final_BridgeAI_Framework.pdf</a><br /><br />Given the growing use of AI in businesses across the country, this could serve as a useful tool for employers to ensure their business harnesses the potential of AI technology. By upskilling workers, businesses will also ramp up productivity and ensure their workforce can focus on the tasks that will make the biggest impact.<br /><br />This first step will be followed up by further consultation with the business community to develop sector-specific case studies and resources and a full skills framework.<br /><br />See: <a data-cke-saved-href="https://iuk.ktn-uk.org/news/ai-skills-for-business-guidance-feedback-consultation-call-from-the-alan-turing-institute/" href="https://iuk.ktn-uk.org/news/ai-skills-for-business-guidance-feedback-consultation-call-from-the-alan-turing-institute/">https://iuk.ktn-uk.org/news/ai-skills-for-business-guidance-feedback-consultation-call-from-the-alan-turing-institute/</a><br /> <br /><strong>Data protection - UK-US data bridge - a factsheet for UK organisations</strong><br />Following a review of the current handling and protection of personal data, the UK and US have established a "data bridge". This allows personal data to freely move between UK businesses and certified organisations in the US.<br /><br />International data transfers are central to the transactions of many businesses, and under previous arrangements, any transfer of personal data to the US required costly contract clauses to ensure privacy and protection standards.<br /><br />Now, where the US organisation is appropriately certified, the new bridge removes this burden.<br /><br />A US organisation is placed onto the Data Privacy Framework List (DPF list) on the DPF website once they have been certified. They can then receive UK personal data through a UK-US data bridge.<br /><br />UK businesses will need to ensure they update their privacy policies and document their data processing activities to reflect any changes in how they transfer personal data to the US.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/publications/uk-us-data-bridge-supporting-documents/uk-us-data-bridge-factsheet-for-uk-organisations" href="https://www.gov.uk/government/publications/uk-us-data-bridge-supporting-documents/uk-us-data-bridge-factsheet-for-uk-organisations">https://www.gov.uk/government/publications/uk-us-data-bridge-supporting-documents/uk-us-data-bridge-factsheet-for-uk-organisations</a><br /> <br /><strong>Is it too cold to work?</strong><br />This winter has been one of the mildest on record so far, but there is still time for a cold snap, and this often raises questions about whether it is too cold to work. In fact, this question is one of the most popular topics on the HSE website.<br /><br />The Workplace (Health, Safety and Welfare) Regulations puts a requirement on employers to provide a reasonable indoor temperature in the workplace.<br /><br />Clearly this will depend on what work is being done and the environmental conditions, but for an indoor workplace, the minimum temperature should normally be at least 16 degrees Celsius. This drops to 13 degrees Celsius where the work involves rigorous physical effort.<br /><br />Under the same Regulations, employers have to assess the risks to workers and put in place controls to protect them. Temperature, whether indoors or outdoors, is one of those risks.<br /><br />This means that employers need to be alert to ensuring that the heating in each workroom is capable of maintaining a comfortable temperature. The heating system too needs to be well maintained so that it doesn't give off dangerous fumes or offensive smells.<br /><br />It may also help to check that doors and windows can be closed properly to prevent cold drafts. Flexible working hours or early/late starts may help staff to avoid low temperatures. And relaxing formal dress codes may help staff be able to dress more appropriately for the temperature.<br /><br />Further guidance is available on the HSE website.<br /><br />See: <a data-cke-saved-href="https://www.hse.gov.uk/temperature/employer/index.htm" href="https://www.hse.gov.uk/temperature/employer/index.htm">https://www.hse.gov.uk/temperature/employer/index.htm</a><br /> <br /><strong>4,757 festive tax return filers</strong><br />HMRC announced that 4,757 taxpayers filed their Self Assessment tax return on Christmas Day.<br /><br />This added to 8,876 being filed on Christmas Eve and a further 12,136 being filed on Boxing Day. Apparently, the peak time was between 12 and 1pm on Boxing Day when HMRC received 1,121 returns.<br /><br />Myrtle Lloyd, HMRC's Director General for Customer Services, used the opportunity to encourage all to file their return in good time when he said: "Our Christmas Day filers proved that there is no time like the present to get started on Self Assessment ... There's no need to delay, getting it done ahead of the 31 January deadline means less stress and longer to work out payment options."<br /><br />If you need help with your tax return, or haven't let us have your tax return information yet, please don't hesitate to get in touch. We will be happy to help you complete this essential job!<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/many-happy-returns-from-4757-festive-filers-on-christmas-day" href="https://www.gov.uk/government/news/many-happy-returns-from-4757-festive-filers-on-christmas-day">https://www.gov.uk/government/news/many-happy-returns-from-4757-festive-filers-on-christmas-day</a><br /> <br /><strong>Government reforms on reuse and recycling of electrical goods</strong><br />The government has announced new UK-wide plans designed to make it easier to recycle electrical goods.<br /><br />A range of measures are proposed, including:</span><ul><li><span style="font-family: arial;">Collecting waste electrical items directly from households. These collections would be financed by the manufacturers, and not the taxpayer. </span></li><li><span style="font-family: arial;">Free of charge collection drop points for electrical items being provided by large retailers, without a need to buy a replacement product from the retailer. </span></li><li><span style="font-family: arial;">When delivering replacement large electrical items, such as fridges and cookers, the retailer being responsible for collecting the old one.</span></li></ul><span style="font-family: arial;"> The proposals mean that recycling of electrical goods can be a convenient part of a person's regular routine.<br /><br />It is estimated that 155,000 tonnes of smaller electrical items, including cables, toasters, kettles, and power tools, are currently thrown in the bin each year with no thought to recycling. In addition, it is estimated that a further 527 million unwanted electrical items are currently sitting unused in UK homes but contain valuable materials such as gold, silver, and platinum that could be reused.<br /><br />Just during the Christmas period, 500 tonnes of Christmas lights are thrown away each year in the UK.<br /><br />The scale of the problem and the potential for reuse of materials mean these proposals have the potential to drive further growth in the UK's treatment and re-use sector and benefit those businesses working or expanding into this area.<br /><br />The announcement also reports on a recent study on public attitudes and behaviours around recycling. The study found that around 86% of people in the UK think that recycling and the associated time it takes to do this properly is worthwhile. More than 77% of householders would see a retailer offering an electrical recycling service as more environmentally responsible.<br /><br />Therefore, being able to demonstrate an environmentally conscious approach is likely to benefit any business and is well worth considering in your business plans and marketing.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/government-reforms-set-to-spark-greater-reuse-and-recycling-of-electrical-goods" href="https://www.gov.uk/government/news/government-reforms-set-to-spark-greater-reuse-and-recycling-of-electrical-goods">https://www.gov.uk/government/news/government-reforms-set-to-spark-greater-reuse-and-recycling-of-electrical-goods</a><br /> <br /><strong>Paying tax on cryptoasset transactions</strong><br />HMRC recently launched a new campaign targeted at crypto investors as part of a crackdown on tax evasion. They have introduced a new disclosure and payment service for taxpayers to voluntarily disclose and pay any unpaid taxes associated with cryptoassets.<br /><br />Cryptoassets (also known as tokens or cryptocurrencies) include exchange tokens (for example, bitcoin), non-fungible tokens and utility tokens.<br /><br />HMRC view the profits or losses incurred from buying and selling such cryptoassets as liable for capital gains tax. Only in exceptional circumstances would they recognise crypto trading as a taxable 'business' trade.<br /><br />Many who own cryptoassets may not be aware of the tax obligations on these digital assets. This voluntary disclosure service provides an opportunity to put things right with potentially lower penalties than if HMRC discover the underpayment for themselves.<br /><br />Such a discovery is likely to become easier for HMRC. Tax avoidance from using cryptoassets is a subject of international concern, and there are moves to require crypto platforms to share taxpayer information with tax authorities.<br /><br />If you or anyone you know needs any advice or help in this area, please don't hesitate to contact us!<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/guidance/tell-hmrc-about-unpaid-tax-on-cryptoassets" href="https://www.gov.uk/guidance/tell-hmrc-about-unpaid-tax-on-cryptoassets">https://www.gov.uk/guidance/tell-hmrc-about-unpaid-tax-on-cryptoassets</a><br /> <br /><strong>Minimum wage rates increase from 1 April 2024</strong><br />Employers should be aware that all minimum wage rates increase on 1 April of each year. For 2024, these increases are substantial. The increases apply to all National Minimum Wage rates and the National Living Wage rate.<br /><br />Another change that comes with the new rates is that the National Living Wage is being extended to include those aged 21 years old and over.<br /><br /><u>Minimum wage - increased rates from April 2024</u><br /><br />See the table below that shows the current minimum wage rates and new rates from 1 April 2024:</span><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1vyi8UOFfelemTxDPyKTbk8gJlT7qWxeZToiFYWk44bA-v0N8lxu5NCi-9ZI9DpahnX_xvTh5UNvRH5pgapNMGlbFzewegV3AbHlEVD1ad0t3M2ncz_mKKc8PYD_EOYaMGxMwPjwRtSVvY9Fj0m0PbBIBzdntRHBDcC0OlGguDTW06LKDMK3r1jwygb6t/s616/Screenshot%202024-01-12%20at%2009.57.28.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="286" data-original-width="616" height="186" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1vyi8UOFfelemTxDPyKTbk8gJlT7qWxeZToiFYWk44bA-v0N8lxu5NCi-9ZI9DpahnX_xvTh5UNvRH5pgapNMGlbFzewegV3AbHlEVD1ad0t3M2ncz_mKKc8PYD_EOYaMGxMwPjwRtSVvY9Fj0m0PbBIBzdntRHBDcC0OlGguDTW06LKDMK3r1jwygb6t/w400-h186/Screenshot%202024-01-12%20at%2009.57.28.png" width="400" /></a></div><br /> </span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span><p><span style="font-family: arial;">If you would like help with your payroll, please don’t hesitate to call us; we are here to help!<br /> <br /><strong>Date set for Spring Budget 2024</strong><br /><br />The Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside his Spring Budget on 6 March 2024.<br /><br />We will keep you updated with any announcements that could affect you or your business.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/spring-budget-2024-date-confirmed" href="https://www.gov.uk/government/news/spring-budget-2024-date-confirmed">https://www.gov.uk/government/news/spring-budget-2024-date-confirmed</a><br /> <br /><strong>£7 million funding boost to level up high streets</strong><br />A new government pilot, the High Street Accelerators programme, will be trialling efforts to regenerate high streets in 10 areas across England.<br />The idea is that communities will work in partnership with local authorities and businesses to tackle problems such as empty shops, anti-social behaviour and a lack of foot traffic on the high street.<br /><br />The 10 selected areas will each receive an initial £237,000 to kickstart their partnerships. However, they can also apply for a share of a further pot totalling £5 million to improve green spaces and pleasant socialising environments for residents.<br /><br />Over the next 2 years this funding will be spent and the impact it has on the designated high streets will be evaluated. This will help the government decide on what further action can be taken to revive high streets in these and other areas.<br /><br />This pilot programme is just one initiative that the government is using to try and revive England’s high streets. New High Street Rental Auctions regulations are also to be introduced later this year that will give local authorities the ability to sell off the rental rights for empty properties to willing tenants. These could include businesses and community groups.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/high-streets-levelled-up-with-7-million-funding-boost" href="https://www.gov.uk/government/news/high-streets-levelled-up-with-7-million-funding-boost">https://www.gov.uk/government/news/high-streets-levelled-up-with-7-million-funding-boost</a><br /> <br /><strong>The Levelling Up Home Building Fund</strong><br />Home England is providing development loans from £250,000 to £10 million to housebuilders based in England that are finding it difficult to borrow from traditional lenders.<br /><br />Whether building for sale or rent, the loans can be used to cover the development costs. Community-led housing projects, serviced plots for custom and self-builders, off-site manufacturing, new builders, and groups of small firms working together can all access this financing.<br />Home England state that their flexible approach, along with their in-depth knowledge of the housing sector, put them in a good position to help businesses deliver homes.<br /><br />The Fund is available to UK-registered corporate entities and limited liability partnerships if they plan to build five or more homes on a site in England. A controlling interest in the land along with outline planning permission is also a must.<br /><br />More information on how to apply can be found in the Home England guidance. They also provide some case studies of situations where the financing has been used.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/find-out-how-the-levelling-up-home-building-fund-can-support-you" href="https://www.gov.uk/government/news/find-out-how-the-levelling-up-home-building-fund-can-support-you">https://www.gov.uk/government/news/find-out-how-the-levelling-up-home-building-fund-can-support-you</a></span></p></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-77192470846631342292024-01-05T07:16:00.004+00:002024-01-05T07:18:17.989+00:005th January 2024 – Hillmans Weekly Update<p><span style="font-family: arial;">Happy New Year, and welcome to our latest 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!</span></p><span style="font-family: arial;">Have a great weekend.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /></span><p><span style="font-family: arial;"><strong>NEW YEAR RESOLUTIONS TO SAVE TAX</strong><br /><br />At this time of year, we think about New Year’s resolutions. It is also a good time to start planning your tax affairs before the end of the tax year on 5<sup>th</sup> April.<br /> <br />An obvious tax planning point would be to maximise your ISA allowances for the 2023/24 tax year (currently £20,000 each). You might also want to consider increasing your pension savings before 5 April 2024, as the unused annual pension allowance from 2020/21 lapses after three years.</span></p><p><span style="font-family: arial;"><br />Many of us get together with the family at Christmas and that prompts us to think about making or updating our Will.<br /> <br /><strong>TIME TO REVIEW, OR MAKE A WILL?</strong><br /><br />At the top of the New Year to do list for many individuals is to make or update their Will. Many think this is something to leave until later in life, but it is important to get things in place once property is acquired or when children come along.<br /> <br />In the absence of a will there are statutory rules which dictate how your assets are distributed on death. Those statutory intestacy rules may not be tax efficient, and you might to want to make specific provision in your Will for your unmarried partner or for the guardianship of your children.<br /> <br />People often think that if they die without making a Will, their spouse (or civil partner) will automatically inherit everything, but this is not necessarily the case. According to the laws of intestacy in England, for deaths occurring on or after 26 July 2023, the surviving spouse would inherit a statutory legacy of £322,000, all of the personal effects, and half of the remaining estate. The deceased’s surviving children (or their descendants) would split the remaining half of the estate equally. If those descendants are under the age of 18, their inheritance is kept back for them until they turn 18. Note that intestacy rules are different in Scotland, Wales and Northern Ireland.<br /> <br /><strong>PASSING ON THE FAMILY HOME</strong><br /> <br />When considering the wording of your Will, you should note that the inheritance tax (IHT) nil rate band continues to be frozen at £325,000, subject to any announcements in the Spring Budget. There is currently an additional nil rate band of up to £175,000 for passing on the family home to direct descendants on death. We can work with your solicitor to make sure your Will is tax efficient.<br /> <br />Where some of the nil bands are unused on the death of the first spouse, the balance is available on the death of the surviving spouse, potentially allowing a married couple (or civil partners) to pass on assets of up to £1 million at today’s rates without paying IHT.<br /> <br />The residence nil band is even available when you downsize to a cheaper property. For example, if a married couple currently live in a large house worth £500,000 and downsize to a flat worth £300,000, they could give away some of the proceeds during their lifetime and yet still benefit from inheritance tax relief based on the higher valued property. They could even sell the house and move into a rental property or a care home and still benefit from this nil band.<br /> <br /><strong>LEAVING MONEY IN YOUR WILL TO CHARITY</strong><br /> <br />If you leave at least 10% of your estate to charity, the rate of Inheritance tax on the amount chargeable Is reduced from 40% over the nil rate bands to just 36%. This would reduce the amount passing to other beneficiaries and needs to be carefully considered.<br /> <br /><strong>YEAR END INHERITANCE TAX PLANNING</strong><br /> <br />Many were expecting an announcement from the Chancellor in the Autumn Statement about cuts to, or the possible abolition of, inheritance tax (IHT). Maybe he is saving that for his Spring Budget, but in the meantime, it may be worth utilising the £3,000 gifts annual exemption for 2023/24 and, if available, the unused amount from 2022/23. Note that £3,000 is the overall exemption for the tax year, not the amount for each done. More generous amounts can be given away by taking advantage of the exemption for regular gifts out of income.<br /> <br /><strong>REGULAR GIFTS OUT OF YOUR INCOME CAN SAVE IHT</strong><br /> <br />One tax planning opportunity that many thought the chancellor might restrict was the exemption from inheritance tax for regular gifts out of an individual’s surplus income. Inheritance tax is designed to tax transfers of capital, so if the donor can demonstrate that the gifts are made out of surplus income then the transfers are not taken into consideration for IHT. The exemption applies where there is a regularity to the payments, such as a standing order to pay school fees or pension contributions on behalf of children or grandchildren. HMRC will also require proof that the payments are paid out of post-tax income and do not limit the donor’s normal lifestyle. Detailed records are required, and we can help you with a suitable spreadsheet.<br /> <br /><strong>PENSION CONTRIBUTIONS ON BEHALF OF OTHERS</strong><br /> <br />Normally an individual’s payments into a pension scheme are limited to their relevant earnings in a given tax year. This restriction does not apply where the contributions are less than £3,600 gross, allowing parents and grandparents to make payments on behalf of children and grandchildren with limited income. Payments of £2,880 a year would attract a 25% uplift from the government which could grow to a substantial amount by the time the child reaches retirement age (currently age 55, but increasing to 57 in 2028). The parent or grandparent may be able to justify that the payments qualify for the regular gifts out of income exemption from inheritance tax mentioned above if a standing order was set up for no more than £240 a month.<br /> <br /><strong>UPDATE PAYROLL SOFTWARE FOR THE JANUARY NIC CUT</strong><br /> <br />The chancellor’s announcement of a 2% cut in national insurance contributions (NICs) for employees applies to payments on or after 6 January 2024. That doesn’t allow much time to update payroll software, particularly with the Christmas holidays in between. Note that for employees other than directors, NIC is not calculated on a cumulative basis so, where over-deductions are made, the error is not automatically corrected in later months.<br /> <br /><strong>ADVISORY FUEL RATE FOR COMPANY CARS</strong><br /> <br />The table below sets out the HMRC advisory fuel rates from 1 December 2023. These are the suggested reimbursement rates for employees' private mileage using their company car.<br /> <br />Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.</span></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg96-5Wb8F3fCXxiBtZBoGHoeH-dZZnRF33T8jOKfjCsuk86XTvOB_K9DkKgRD4XY9TwU_HJQ65S8IvmoPm2qKh__Hq8u1VyrZj3Rzmu0Er9qTlunlCbjQNPnoB3cne-VMUUfP6dAwPklP9huWCCOxTzIuqw1PrfxwjYrH_tGXOzUlD8E4BiTlUJuYhkOaz/s280/Screenshot%202024-01-05%20at%2007.16.58.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="252" data-original-width="280" height="252" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg96-5Wb8F3fCXxiBtZBoGHoeH-dZZnRF33T8jOKfjCsuk86XTvOB_K9DkKgRD4XY9TwU_HJQ65S8IvmoPm2qKh__Hq8u1VyrZj3Rzmu0Er9qTlunlCbjQNPnoB3cne-VMUUfP6dAwPklP9huWCCOxTzIuqw1PrfxwjYrH_tGXOzUlD8E4BiTlUJuYhkOaz/s1600/Screenshot%202024-01-05%20at%2007.16.58.png" width="280" /></a></div><br /><span style="font-family: arial;"><br /></span><p></p><span style="font-family: arial;"><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div>Where there has been a change the previous rate is shown in brackets.<br /> <br />You can also continue to use the previous rates for up to 1 month from the date the new rates apply.<br /><br />Note that for hybrid cars you must use the petrol or diesel rate.<br /><br />For fully electric vehicles the rate is 9p (10p) per mile.<br /> <br /><strong>DIARY OF MAIN TAX EVENTS</strong><br /><strong>JANUARY/ FEBRUARY 2024</strong></span><div><span style="font-family: arial;"><b><br /></b></span></div><div><span style="font-family: arial;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7F20rCFDFFzx03MKo3DhoPaeF_4ej59S30IsKSwCl9kAbzBNCXW_gyuEqAK7MyJ9cPKPpdHFpC9z_DiXSpodGd3S7SZbs9qbn98pzaEohqaKpP375si4lJK2QZ-abw-tpFDXJl4EBrY8Vfpx7zo91aZyioMUQouKvicTvlPfP_GpTHEMmp2UTBbybvPEs/s525/Screenshot%202024-01-05%20at%2007.17.39.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="326" data-original-width="525" height="402" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7F20rCFDFFzx03MKo3DhoPaeF_4ej59S30IsKSwCl9kAbzBNCXW_gyuEqAK7MyJ9cPKPpdHFpC9z_DiXSpodGd3S7SZbs9qbn98pzaEohqaKpP375si4lJK2QZ-abw-tpFDXJl4EBrY8Vfpx7zo91aZyioMUQouKvicTvlPfP_GpTHEMmp2UTBbybvPEs/w647-h402/Screenshot%202024-01-05%20at%2007.17.39.png" width="647" /></a></div><br /><b><br /></b></span><p><span style="font-family: arial;"> </span></p></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-53185280912790393682023-12-23T20:24:00.006+00:002023-12-23T20:24:46.024+00:00Christmas and New Year Office Hours<div class="separator" style="clear: both; text-align: left;"><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjwMlha3-98QLO69YpYytg8elQS-ZmvEf3oV5Odmfoj0At4393DbyJr2g9EpqBf7KYNrJ0oouLEQZcjHiY7xRsRzx6MmP4WBbbZ7Jt9tVgL15ZxwAMGTS0fzE5dfrpQYDPKVllNMHMd5Zgd7MdZsMV5nVm7efjb8-YJXKKbs_Ga67R0z9e8j6r-D1xaHpOk" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="465" data-original-width="700" height="266" src="https://blogger.googleusercontent.com/img/a/AVvXsEjwMlha3-98QLO69YpYytg8elQS-ZmvEf3oV5Odmfoj0At4393DbyJr2g9EpqBf7KYNrJ0oouLEQZcjHiY7xRsRzx6MmP4WBbbZ7Jt9tVgL15ZxwAMGTS0fzE5dfrpQYDPKVllNMHMd5Zgd7MdZsMV5nVm7efjb8-YJXKKbs_Ga67R0z9e8j6r-D1xaHpOk=w400-h266" width="400" /></a></div><br /><span style="font-family: arial; text-align: left;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial; text-align: left;">The Hillmans Team would like to wish you a Merry Christmas and a Happy, Prosperous New Year.</span></div></div></div><p></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;">Please note our office will be closed for the Christmas and New Year period from 5pm on Friday, 22nd December 2023, re-opening at 9am on Tuesday, 2nd January 2024.</span></div><div><br /></div></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-34607716931666360272023-12-22T14:44:00.003+00:002023-12-22T14:44:36.248+00:00Merry Christmas<p><span style="font-family: arial;">Merry Christmas and a Happy Prosperous New Year from all the team at Hillmans Chartered Accountants. </span></p><span style="font-family: arial;">I wish you and those close to you the happiest and safest of Christmases.<br /><br /><strong>Our Christmas Opening Hours</strong><br /><br />Our office will be closed for the Christmas and New Year period from 5pm on Friday, 22nd December 2023, re-opening at 9am on Tuesday, 2nd January 2024.<br /><br /><strong>22nd December 2023 – Hillmans Weekly Update:</strong><br /><br />Welcome also to the final round-up of tax news and updates for 2023. Please contact us if you want to talk about how these updates affect you. We are here to support you!<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a></span><p><span style="font-family: arial;"><strong>Looking for some New Year business ideas?</strong><br />If you are looking for some new business ideas then ask us for a copy of our guide called “57 Ways to Grow Your Business”! Our publication is packed full of bright ideas for the Serious Entrepreneur and starts with the four basics of growth.<br /><br />All the ideas in this guide ultimately revolve around four basic insights about growing a business:</span></p><ul><li><span style="font-family: arial;">Increase the number of customers;</span></li><li><span style="font-family: arial;">Increase the number of times each one does business with you;</span></li><li><span style="font-family: arial;">Increase the average value of each transaction; and</span></li><li><span style="font-family: arial;">Increase your own effectiveness and efficiency.</span></li></ul><span style="font-family: arial;"> Here are some other business principles that we explore in the guide:</span><ul><li><span style="font-family: arial;">What you can measure you can manage;</span></li><li><span style="font-family: arial;">Build in unique core differentiators and focus on them constantly;</span></li><li><span style="font-family: arial;">It’s more important to be different than it is to be better;</span></li><li><span style="font-family: arial;">Cutting the price is always an option but there is usually a better way – increasing value;</span></li><li><span style="font-family: arial;">Break compromises and lower the barriers to people doing business with you;</span></li><li><span style="font-family: arial;">Systemise every aspect of your business;</span></li><li><span style="font-family: arial;">Empower your team to make it right for every customer; and</span></li><li><span style="font-family: arial;">Create a clear and detailed action plan.</span></li></ul> <span style="font-family: arial;"><u>Ask us for a copy – you never know there may be a gem or two in there for you to help you grow faster!</u><br /> <br /><strong>Power up your business with Innovation!</strong><br />Innovation has generally been recognised as essential for value creation, both for individual companies and for the UK economy as a whole. The development of new ideas, processes and technologies and their flow across different sectors is a significant driver of economic growth and productivity.<br /><br />Recently, innovation has also been identified as crucial to the transition of the economy away from fossil fuels and carbon-intensive business activities.<br /><br />There are many factors that affect whether and how businesses innovate, for example the availability of skills and capital and government policy measures such as tax incentives.<br /><br />However, none are more important that the company’s own culture, capabilities and internal systems – all of which are aspects of its governance. Unless companies are governed in a way that is conducive to innovation, they are unlikely to be in a position to take advantage of new opportunities.<br /><br />Our most innovative clients share some key characteristics:</span><ul><li><span style="font-family: arial;">They invest in activities with uncertain outcomes for which the likely commercial return is difficult to quantify and the risk of failure is higher than normal;</span></li><li><span style="font-family: arial;">They have a culture which encourages flexibility, experimentation and a high level of individual decision making; and</span></li><li><span style="font-family: arial;">They require a longer-term time investment horizon than many other kinds of business activity.</span></li></ul><span style="font-family: arial;"> Research and Development (R & D) is the process of taking an innovative idea and transforming it into a fully-fledged product or procedure.<br /><br />If you are looking for long term finance to support innovation then you will need to ensure your management accounts are up to date, you make available current detailed lists of debtors and creditors, and you might need up to date projections before an expert will consider your application.<br /><br />In the recent Autumn Statement, the government announced a new simplified research and development (R&D) tax relief, combining the existing R&D expenditure, credit and assembly schemes.<br /><br /><u>Please talk to us about R & D tax breaks and long-term finance, our independent experts have many years of experience and success in advising business across a wide range of sectors. </u><br /> <br /><strong>Building business resilience</strong><br />The British Business Bank’s Guide to building business resilience contains impartial, practical, and actionable information and support to help smaller businesses manage their costs, boost their long-term profitability, and increase their resilience.<br /><br />There is guidance on everything from energy efficiency to investing in technology, included to help make your business more innovative and resilient.<br /><br />Other topics covered in the guide include:</span><ul><li><span style="font-family: arial;">Foundations for growth;</span></li><li><span style="font-family: arial;">Managing business costs;</span></li><li><span style="font-family: arial;">Securing funds and controlling debt;</span></li><li><span style="font-family: arial;">Focusing on customers;</span></li><li><span style="font-family: arial;">Optimising your supply chain; and</span></li><li><span style="font-family: arial;">Controlling staff overheads.</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://www.british-business-bank.co.uk/finance-hub/guide-to-building-business-resilience/?utm_source=nations_and_regions&utm_medium=shared_link&utm_campaign=business_resilience_guide_2023&dm_i=45HG,1HM6N,65ULK0,6WNDN,1" href="https://www.british-business-bank.co.uk/finance-hub/guide-to-building-business-resilience/?utm_source=nations_and_regions&utm_medium=shared_link&utm_campaign=business_resilience_guide_2023&dm_i=45HG,1HM6N,65ULK0,6WNDN,1">Guide to building business resilience - British Business Bank (british-business-bank.co.uk)</a><br /> <br /><strong>Protecting Employees from Stress at Work</strong><br />The Working Minds campaign has been created by the Health and Safety Executive (HSE), Britain’s national regulator for workplace health and safety is committed to improving the health of workers.<br /><br />Tackling stress isn’t just the right thing to do, it’s a legal obligation. Working Minds can help you make it a routine priority for your business.<br /><br />There are three main reasons employers should be looking to prevent stress and support good mental health in business:</span><ol><li><span style="font-family: arial;">It's the law;</span></li><li><span style="font-family: arial;">It’s good for business; and</span></li><li><span style="font-family: arial;">It’s the right thing to do.</span></li></ol><span style="font-family: arial;"> Whether you’re a small business or a large corporation, the law requires all employers to prevent work-related stress to support good mental health in the workplace.<br /><br />It’s important to remember that in the end we’re all just people – and every one of us face pressures in and out of the workplace. By treating each other with respect and compassion at work we support our teams and colleagues to stay well.<br /><br />The earlier a problem is tackled, the less impact it will have for the person and your business. Stress affects people differently – what stresses one person may not affect another. Factors like skills and experience, age, or disability may all affect someone’s ability to cope.<br /><br />You can get started today with these 5 steps: </span><ol><li><span style="font-family: arial;">Reach out and have conversations.</span></li><li><span style="font-family: arial;">Recognise the signs and causes of stress.</span></li><li><span style="font-family: arial;">Respond to any risks identified by agreeing action points between employer and worker.</span></li><li><span style="font-family: arial;">Reflect on the actions taken – have things improved?</span></li><li><span style="font-family: arial;">Make it Routine to check back in on how things are going.</span></li></ol><span style="font-family: arial;"> If you think that a worker is having problems, encourage them to talk to someone, whether it’s their line manager, trade union representative, GP, or their occupational health team.<br /><br />See: <a data-cke-saved-href="https://workright.campaign.gov.uk/campaigns/workingminds/working-minds-employers/?utm_source=govdelivery&utm_medium=email&utm_campaign=working-minds&utm_term=steps&utm_content=wm-31-aug-22" href="https://workright.campaign.gov.uk/campaigns/workingminds/working-minds-employers/?utm_source=govdelivery&utm_medium=email&utm_campaign=working-minds&utm_term=steps&utm_content=wm-31-aug-22">Working Minds Employers - Work Right to keep Britain safe</a><br /> <br /><strong>Exploring Closure Options for Solvent businesses</strong><br />There are many reasons a solvent company needs to be brought to an end; perhaps due to retirement, illness, or simply a desire to extract the proceeds tied up in the company.<br /><br />Once a decision has been made to cease trading and begin winding up the company’s affairs, the next step is to determine the most appropriate way of closing the business down officially. When looking at your options, there are a number of processes which should be fully explored to ensure maximum suitability is achieved.<br /><br />This decision will be determined, in the main, by the financial position of the company at the time of closure, as well as the future ambitions of its directors and shareholders.<br /><br /><u>Strike Off/ Dissolution</u><br />Strike off – also known as dissolution – is an informal way of closing down an unwanted limited company quickly and easily. An application for voluntary company strike off is made using the DS01 form submitted directly to Companies House. This will then be published in the Gazette, with any parties affected by the proposed strike off invited to make an objection. So long as no objections are received, the company will be removed from the register held at Companies House and the company will subsequently cease to exist as a legal entity. <br /><br />Any property or assets remaining in the company at the time of strike off will become bono vacantia and ownership will pass to the Crown, therefore any loose ends should be tied up in advance of the application being made. <br /><br />While there is the possibility for a company which has been struck off to be restored to the register at a later date, this can be a lengthy and complex process, so strike off should only be opted for if there is no likely reason the company will be required again in the future.<br /><br /><u>Make The Company Dormant</u><br />If there is a possibility that the company may be required at some point, making the company dormant may be the most appropriate solution. When a company is marked as dormant it remains on the Companies House register, meaning it can be immediately resurrected if trade recommences. Minimal filing obligations are required during this period and all outstanding tax liabilities and obligations must be fully up to date before HMRC will consider your request. <br /><br />Making a company dormant prevents another entity incorporating a company using the same name; this can be hugely beneficial is retaining the valuable reputation that has been built up over the years of trading. As a company can remain dormant for any length of time it chooses, this could be a great option for those who know they don’t currently require the company but are unsure as to what the future may hold.<br /><br /><u>Members’ Voluntary Liquidation (MVL)</u><br />If there are significant assets (typically in excess of £20,000 in total) then opting to place the company into liquidation could be the most cost-effective and tax-efficient way of extracting these funds. Solvent liquidation is achieved using a formal process known as a Members’ Voluntary Liquidation (MVL) and must be overseen by a licensed insolvency practitioner. With an MVL, money is distributed to shareholders as capital gains rather than income; as capital gains are taxed at 20%, this can represent a huge tax advantage. Directors can also benefit from Business Asset Disposal Relief (up to a lifetime limit of £1m worth of gains) which halves the effective capital gains tax rate down to just 10%.<br /><br />As an MVL involves the input of a licensed insolvency practitioner, there are professional fees which need to be accounted for when considering the suitability of this process; however, many find that this cost is eclipsed by the potential savings able to be made elsewhere.<br /><br />Directors will be required to sign a declaration of solvency, attesting to the fact that the company is able to fulfil its obligations to creditors within 12 months of the date of liquidation. Falsely swearing a declaration of solvency is considered an act of perjury, therefore, it is vital an accurate Statement of Affairs is drawn up and any contingent liabilities accounted for before the company enters liquidation.<br /><br /><u>Please contact us if you would like further information on your options, we are here to help!</u><br /> <br /><strong>Consultation on new Climate Change Agreements scheme</strong><br />The Department for Energy Security and Net Zero (DESNZ) has launched a consultation seeking views on proposals for a new six-year Climate Change Agreements scheme to begin in 2025.<br /><br />The new scheme would add three new target periods running from 2025 to 2030, resulting in three certification periods running to 31 March 2033. It will provide further reductions in the Climate Change Levy for eligible participants.<br /><br />The scheme would be open to new entrants who qualify under the current eligibility criteria.<br /><br />The consultation outlines:</span><ul><li><span style="font-family: arial;">aspects of the current scheme that will be retained for the new scheme, as well as some policy decisions following on from proposals in a previous DESNZ consultation.</span></li><li><span style="font-family: arial;">further proposals for a future scheme, including the possibility for new sectors to apply to be eligible for the scheme, target setting, reporting and how performance will be measured.</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://www.gov.uk/government/consultations/climate-change-agreements-consultation-on-a-new-scheme" href="https://www.gov.uk/government/consultations/climate-change-agreements-consultation-on-a-new-scheme">Climate Change Agreements: consultation on a new scheme - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Funding for digital supply chain innovation</strong><br />The <a data-cke-saved-href="https://digitalsupplychainhub.uk/" href="https://digitalsupplychainhub.uk/" target="_blank" title="Programme working to advance inclusion of digital technology in UK supply chains">Made Smarter Innovation | Digital Supply Chain Hub</a> (DSCH) is inviting applications from businesses interested in developing and deploying digital technology solutions in the DSCH testbeds.<br /><br />A supply chain testbed can be defined as an end-to-end supply chain environment, where technologies can be deployed and tested using real data but<br />without risking business disruption.<br /><br />Together with the testbed companies, the DSCH has identified seven potential challenge areas:</span><ul><li><span style="font-family: arial;">standardised naming system for automotive spare parts;</span></li><li><span style="font-family: arial;">project finance and market modelling in the emerging hydrogen supply chain;</span></li><li><span style="font-family: arial;">digital product passport for the textile supply chain;</span></li><li><span style="font-family: arial;">connected life cycle assessment in the textile supply chain;</span></li><li><span style="font-family: arial;">logistics pricing engine in the textile supply chain;</span></li><li><span style="font-family: arial;">data driven best before date in the food supply chain; and</span></li><li><span style="font-family: arial;">a marketplace for investment in sustainable farming.</span></li></ul><p><span style="font-family: arial;">Each challenge comes with £100,000 available for a tech solution provider to work with an Industry Challenge Sponsor to address critical supply-chain challenges and develop a solution which will be deployed into one of the testbeds. Find out how to <a data-cke-saved-href="https://digitalsupplychainhub.uk/get-involved/unlock-funding/" href="https://digitalsupplychainhub.uk/get-involved/unlock-funding/" target="_blank" title="Funding opportunity for innovative digital solutions for supply chain challenges">unlock funding for digital supply chain innovation</a>.<br /><br />Experience within the manufacturing sector is not essential, however, knowledge of how to apply this to industry and relevance to the challenge is<br />required. The deadline for applications is 22 December 2023.<br /><br />See: <a data-cke-saved-href="https://digitalsupplychainhub.uk/get-involved/unlock-funding/" href="https://digitalsupplychainhub.uk/get-involved/unlock-funding/">Unlock Funding for Digital Supply Chain Innovation - Apply now - Made Smarter Digital Supply Chain Hub - Virtual Hub</a></span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-38733754297921092582023-12-15T17:27:00.001+00:002023-12-15T17:27:28.926+00:0015th December 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Just an advance courtesy note to advise our office will be closed for the Christmas and New Year period from 5pm on Friday, 22nd December 2023, re-opening at 9am on Tuesday, 2nd January 2024.<br /><br />Have a great weekend, and I look forward to speaking with you next week prior to the Christmas break.<br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /></span><p><strong><span style="font-family: arial;">Reporting PAYE information in real time – Early Christmas Payments </span></strong></p><p><span style="font-family: arial;">Some employers pay their employees earlier than usual over the Christmas period. This can be for a number of reasons, for example, during the Christmas period the business may close, meaning workers need to be paid earlier than normal.</span></p><p><span style="font-family: arial;">If you do pay early over the Christmas period, please report your normal or contractual payday as the payment date on your Full Payment Submission (FPS) and ensure that the FPS is submitted on or before this date.</span></p><p><span style="font-family: arial;">For example, if you pay on Friday 15 December 2023 but the normal or contractual payment date is Friday 29 December 2023, you will need to report the payment date on the FPS as 29 December 2023 and ensure the submission is sent on or before 29 December 2023.</span></p><p><span style="font-family: arial;">This will help to protect any of your employees who are eligible for Universal Credit. Reporting the payday as the date payment is made may affect current and future entitlements to Universal Credit.</span></p><p><span style="font-family: arial;">The overriding PAYE reporting obligation for employers is unaffected by this exception and remains that you must report payments on or before the date the employee is paid.</span></p><p><span style="font-family: arial;">Please talk to us if you have any queries regarding early PAYE reporting and payments, we are here to help!</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/running-payroll" href="https://www.gov.uk/running-payroll">Running payroll: Overview - GOV.UK (www.gov.uk)</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Latest Recommended Christmas Posting Dates</span></strong></p><p><span style="font-family: arial;">Beat the festive rush and get all your letters and parcels in the post on time.</span></p><p><span style="font-family: arial;">This year’s latest recommended posting dates are:</span></p><ul><li><span style="font-family: arial;">• Monday 18 December 2023 – 2nd Class, 2nd Class Signed For.</span></li><li><span style="font-family: arial;">• Tuesday 19 December 2023 – 1st Class, 1st Class Signed For.</span></li><li><span style="font-family: arial;">• Wednesday 20 December 2023 – Royal Mail Tracked 48®**.</span></li><li><span style="font-family: arial;">• Thursday 21 December – Royal Mail Tracked 24®**.</span></li><li><span style="font-family: arial;">• Friday 22 December 2023 – Special Delivery Guaranteed® (Guaranteed Saturday delivery for an extra fee).</span></li></ul><p><span style="font-family: arial;">** Royal Mail Tracked 24® and Royal Mail Tracked 48® are not available to purchase at Post Office® branches.</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.royalmail.com/christmas/last-posting-dates" href="https://www.royalmail.com/christmas/last-posting-dates">Get ready for Christmas 2023 | Royal Mail Group Ltd</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Posting documents to Companies House (CH)</span></strong></p><p><span style="font-family: arial;">From 4 March 2024, all companies who want to file paper documents will need to post them to the Cardiff office:</span></p><p><span style="font-family: arial;">Companies House<br />Crown Way<br />Cardiff<br />CF14 3UZ</span></p><p><span style="font-family: arial;">CH will not accept post or hand deliveries at the Belfast office from 4 March 2024. <a data-cke-saved-href="https://www.gov.uk/government/news/companies-house-edinburgh-office-is-moving" href="https://www.gov.uk/government/news/companies-house-edinburgh-office-is-moving">Since September 2023, companies registered in Scotland post their documents to the Cardiff office.</a></span></p><p><span style="font-family: arial;">Most companies can file online instead of posting paper documents. </span></p><p><span style="font-family: arial;">By filing online, you will: </span></p><ul><li><span style="font-family: arial;">• save your company time and money;</span></li><li><span style="font-family: arial;">• get confirmation that we’ve received your submission; </span></li><li><span style="font-family: arial;">• avoid rejects and be less likely to get late filing penalties; and</span></li><li><span style="font-family: arial;">• get access to additional online services. </span></li></ul><p><span style="font-family: arial;">CH will continue to accept post in the Belfast office until 1 March 2024. If you post documents to the Belfast office after 1 March 2024, your documents will be re-directed, and they will take longer to reach the Cardiff office. </span></p><p><span style="font-family: arial;">Over 65% of companies now use software filing as their preferred method.</span></p><p><span style="font-family: arial;">There are a variety of <a data-cke-saved-href="https://www.gov.uk/company-filing-software/filing-annual-accounts-returns-and-tax-accounts" href="https://www.gov.uk/company-filing-software/filing-annual-accounts-returns-and-tax-accounts">software providers</a> which offer a range of accounting packages to prepare and file accounts. Most types of accounts can be filed using software, depending on the functionality of the software package you are using.</span></p><p><span style="font-family: arial;">If you file using our online services, CXH will send you an email to confirm they have received your accounts. They will also send you another email when they have registered your accounts.</span></p><p><span style="font-family: arial;">To file online, you may need your <a data-cke-saved-href="https://www.gov.uk/guidance/company-authentication-codes-for-online-filing" href="https://www.gov.uk/guidance/company-authentication-codes-for-online-filing">company authentication code</a>. If you need to request a new code, you should allow up to 5 days for this to arrive at the company’s registered office.</span></p><p><span style="font-family: arial;">Anyone filing with Companies House should understand their legal responsibilities and <a data-cke-saved-href="https://www.gov.uk/guidance/being-a-company-director" href="https://www.gov.uk/guidance/being-a-company-director">duties of being a company director</a>, including the responsibility to file documents on time.</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/posting-documents-to-companies-house" href="https://www.gov.uk/government/news/posting-documents-to-companies-house">Posting documents to Companies House - GOV.UK (www.gov.uk)</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Restructuring Options for struggling companies</span></strong></p><p><span style="font-family: arial;">While we all want to see our businesses thrive and grow, this is unfortunately not always the case. As a trusted adviser, accountants are often the first port of call for company directors facing the possibility of insolvency and we can often point them in the right direction.</span></p><p><span style="font-family: arial;">Enlisting the assistance of a licensed insolvency practitioner during this stage is highly recommended, particularly if your business is already in an insolvent position, or you believe it will soon become insolvent. </span></p><p><span style="font-family: arial;">Depending on the current position of the company in question, together with its likely future viability, there are several options which can be considered. Key questions to ask during this time include: How much debt is owing? Can this be repaid? Who does the company owe this to? Are they likely to be amenable to negotiations regarding repayment? Is the company likely to be viable long-term or have its problems taken it beyond the point of rescue?</span></p><p><span style="font-family: arial;">For a company which is currently struggling, yet is ultimately viable going forwards, a form of restructuring could be what is needed to get the business back on track.</span></p><p><span style="font-family: arial;">This could be achieved by entering into a formal repayment plan with creditors, known as a Company Voluntary Arrangement (CVA). This legally binding agreement requires the indebted company to make regular contributions towards its current debts which will be distributed amongst creditors on a pre-agreed proportional basis. While this can be a great way for a company to refinance its debt, a CVA does require creditor approval, something which could be difficult to obtain if relations have soured due to previous non-payment of monies owed.</span></p><p><span style="font-family: arial;">Placing the company into administration could be an alternative if a CVA is unlikely to secure creditor approval. While in administration, the company is protected by a moratorium which prevents creditors starting – or continuing – legal action against the business. This gives valuable time and breathing space for directors to consider their options moving forwards. It may be the case that unprofitable elements of the company are identified and wound down, allowing the revenue-generating arms of the business to flourish.</span></p><p><span style="font-family: arial;">While the majority of companies will experience some form of financial or operational difficulty at some point, in some cases, these pressures will become too much for the company to withstand. When a company is beyond rescue, options for bringing the company to an end in an orderly and legally compliant manner need to be explored.</span></p><p><span style="font-family: arial;">If a company has reached the end of its useful life but is able to repay all its outstanding liabilities prior to closure, then applying for strike-off directly to Companies House could be appropriate. This is done by submitting a DS01 form and is also known as dissolving a company. Be aware that if a company which is insolvent files for strike off, it is highly likely that its creditors will submit an objection which will stop the dissolution process in its tracks.</span></p><p><span style="font-family: arial;">For a company which is insolvent, strike-off is not an appropriate solution; instead, the company must be closed using a formal liquidation process. Liquidation can be entered into both voluntarily by the directors of an insolvent business, or otherwise it can be forced into liquidation by order of the courts.</span></p><p><span style="font-family: arial;">Please talk to us about restructuring options, we are here to help. </span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">What is Peer to Peer (P2P) lending?</span></strong></p><p><span style="font-family: arial;">P2P is a relatively new concept which bypasses the banks to allow businesses to borrow money directly from ordinary people. Businesses get the funding they need, and lenders get a better rate than they would from leaving their money in the bank. In between the borrower and the lender stands the P2P platform which handles the collection and distribution of loans and repayments.</span></p><p><span style="font-family: arial;">P2P is very bespoke. The idea is to assess what the business needs first, rather than attempting to fit them into a ‘product’. Consequently, an early informal chat-through is often the best way to progress. Our P2P experts will guide you through the funding process, advising you every step of the way; their knowledge of the market and the lending platforms is unrivalled.</span></p><p><span style="font-family: arial;">Our P2P experts have been involved in advising businesses on the raising of funds via P2P platforms since its emergence. They have even advised some newly emerging platforms on how to construct their lending guidelines and how they should treat new borrowers.</span></p><p><span style="font-family: arial;">Please talk to us about financing options – we can introduce you to an expert!</span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Bespoke AI and data science advice for SMEs</span></strong></p><p><span style="font-family: arial;">Artificial Intelligence (AI) holds enormous potential for businesses, enhancing productivity and competitiveness. However, adopting AI technology can be challenging. That’s where “BridgeAI” comes in to support businesses harness the power of AI and unlock their full potential. </span></p><p><span style="font-family: arial;">The Alan Turing Institute, a partner of the Innovate UK BridgeAI programme, is offering artificial intelligence (AI) mentoring support for small and medium-sized businesses</span></p><p><span style="font-family: arial;">This support is targeted at companies and organisations facing barriers to data science and AI adoption who would benefit from a bespoke approach.</span></p><p><span style="font-family: arial;">While other BridgeAI offerings focus on skill-building and knowledge transfer, this bespoke advice initiative addresses the unique challenges that standard solutions can't reach.</span></p><p><span style="font-family: arial;">You can get direct access to experts, collaborating with top experts from The Alan Turing Institute, in addition to specialist support and guidance around your specific AI adoption challenges. The goal is to provide ongoing support that aligns AI with your long-term business strategies.</span></p><p><span style="font-family: arial;">The scheme launches soon, with the panel of advisors expected to be available by January 2024.</span></p><p><span style="font-family: arial;"><a data-cke-saved-href="https://info.ktn-uk.org/p/2VFU-GP4/engaging-with-independent-scientific-advisors%22%20%5Ct%20%22_blank%22%20%5Co%20%22Expression%20of%20Interest%20form%20for%20companies%20and%20organisations%20interested%20in%20engaging%20with%20Independent%20Scientific%20Advisors" href="https://info.ktn-uk.org/p/2VFU-GP4/engaging-with-independent-scientific-advisors%22%20%5Ct%20%22_blank%22%20%5Co%20%22Expression%20of%20Interest%20form%20for%20companies%20and%20organisations%20interested%20in%20engaging%20with%20Independent%20Scientific%20Advisors">Submit your expression of interest by 21 December 2023</a>. Submissions will be reviewed and selected companies will be informed of the next steps. If you are facing unique hurdles and see AI as a crucial part of your future, this is your opportunity to get specialist support and insights to help you transform your business.</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://iuk.ktn-uk.org/opportunities/bespoke-ai-and-data-science-advice-for-smes-from-the-alan-turing-institute/" href="https://iuk.ktn-uk.org/opportunities/bespoke-ai-and-data-science-advice-for-smes-from-the-alan-turing-institute/">Bespoke AI and Data Science Advice for SMEs from The Alan Turing Institute - Innovate UK KTN (ktn-uk.org)</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Autumn Finance Bill published</span></strong></p><p><span style="font-family: arial;">The Autumn Finance Bill 2023 has been published to enshrine tax changes into law.</span></p><p><span style="font-family: arial;">Measures in the Bill include helping businesses invest for less and making full expensing- an effective corporate tax cut - permanent.</span></p><p><span style="font-family: arial;">In March 2021, the former Chancellor announced the super-deduction, under which companies saved up to 25p in each pound they invested. Then at Spring Budget 2023, the now Chancellor introduced temporary full expensing, a three-year capital allowances policy which also delivered up to a 25p saving for every £1 invested.</span></p><p><span style="font-family: arial;">To provide certainty, when announcing full expensing, the Chancellor was clear that his ambition was to make it permanent when fiscal conditions allowed. At the Autumn Statement, the Chancellor has delivered on this by confirming he will make full expensing permanent. </span></p><p><span style="font-family: arial;">The Bill also simplifies R&D and extends the Enterprise Investment Scheme and Venture Capital Trust schemes by an extra ten years each to 2035, ensuring younger companies can attract the finance they need today to become the unicorns of tomorrow.</span></p><p><span style="font-family: arial;">The changes to National Insurance, which will take effect on 6 January 2024 for employees and 6 April for self-employed people, is being legislated through a separate Bill to the Autumn Finance Bill 2023. The majority of tax changes in the Bill will take effect from April 2024.</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://bills.parliament.uk/bills/3514/publications" href="https://bills.parliament.uk/bills/3514/publications">Finance Bill publications - Parliamentary Bills - UK Parliament</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">New investment in green industries and major reform of power network</span></strong></p><p><span style="font-family: arial;">Major plans to speed up connections and increase capacity on the electricity grid have been set out alongside £960 million investment in green industries. </span></p><p><span style="font-family: arial;">The package of measures will bring forward investment by building network infrastructure faster and speeding up grid connections. </span></p><p><span style="font-family: arial;">Launched by the Chancellor and Energy Security Secretary, government has published its <a data-cke-saved-href="https://www.gov.uk/government/publications/electricity-networks-transmission-acceleration-action-plan" href="https://www.gov.uk/government/publications/electricity-networks-transmission-acceleration-action-plan">response to Electricity Networks Commissioner</a>, Nick Winser CBE, accepting his recommendations in all areas. These measures will halve the time it takes to build high-voltage power lines from 14 years to 7. </span></p><p><span style="font-family: arial;">Building on this, the <a data-cke-saved-href="https://www.gov.uk/government/publications/electricity-networks-connections-action-plan" href="https://www.gov.uk/government/publications/electricity-networks-connections-action-plan">Connections Action Plan</a> will cut the average delay time projects face to connect to the grid from 5 years to just 6 months. It will also see the end of the existing ‘first-come, first-served’ system, which had led to a long queue of projects to connect to the grid – holding back low-carbon investment. </span></p><p><span style="font-family: arial;">Communities hosting new power infrastructure could benefit directly with lower electricity bills and money for projects in their local areas. They will have the power to decide how this is spent, for example on apprenticeships, energy efficiency measures, local parks or community energy generation. Properties closest to new transmission infrastructure will potentially receive up to £1,000 a year off electricity bills over 10 years. </span></p><p><span style="font-family: arial;">The government has also committed £960 million for the Green Industries Growth Accelerator, which will accelerate advanced manufacturing capacity in key net zero sectors, including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear. </span></p><p><span style="font-family: arial;">As demand for renewables grows, with international competition across supply chains, the government is attempting to ensure the UK has the right conditions for further investment and growth. </span></p><p><span style="font-family: arial;">The new package announced at the Autumn Statement is expected to bring forward £90 billion of investment over the next 10 years and will ensure the country’s infrastructure is fit for the green industries of the future. </span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/huge-boost-for-uk-green-industries-with-960-million-government-investment-and-major-reform-of-power-network" href="https://www.gov.uk/government/news/huge-boost-for-uk-green-industries-with-960-million-government-investment-and-major-reform-of-power-network">Huge boost for UK green industries with £960 million government investment and major reform of power network - GOV.UK (www.gov.uk)</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Ofcom webinar series: what does the Online Safety Act mean for you or your business?</span></strong></p><p><span style="font-family: arial;">The UK’s Online Safety Act has recently become law and Ofcom has recently published their first <a data-cke-saved-href="https://www.ofcom.org.uk/consultations-and-statements/category-1/protecting-people-from-illegal-content-online?utm_medium=email&utm_campaign=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business&utm_content=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business+CID_7a062b280575e439b1b6c621cff2290b&utm_source=updates&utm_term=consultation" href="https://www.ofcom.org.uk/consultations-and-statements/category-1/protecting-people-from-illegal-content-online?utm_medium=email&utm_campaign=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business&utm_content=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business+CID_7a062b280575e439b1b6c621cff2290b&utm_source=updates&utm_term=consultation">consultation</a> on implementing the new rules, including draft codes of practice and guidance.</span></p><p><span style="font-family: arial;">Businesses are invited to a series of webinars which will cover Ofcom’s proposals on how online services should approach the new duties relating to illegal content.</span></p><p><span style="font-family: arial;">This webinar series will provide an overview of how Ofcom proposes to implement the law in practice, the draft guidance and codes published, what businesses will need to do to comply with the new illegal content duties, and how you can respond to the consultation.</span></p><p><span style="font-family: arial;">Dates and focus for each webinar are as follows:</span></p><ul><li><span style="font-family: arial;">• Webinar 1: 12 December 2023, 11am to 12pm: Introduction to the Online Safety Act and the illegal harms consultation – what does this mean for you and your business? <a data-cke-saved-href="https://events.teams.microsoft.com/event/045e75f2-63ae-407e-9966-f1011a226348@0af648de-310c-4068-8ae4-f9418bae24cc" href="https://events.teams.microsoft.com/event/045e75f2-63ae-407e-9966-f1011a226348@0af648de-310c-4068-8ae4-f9418bae24cc">Register for Webinar 1</a>.</span></li><li><span style="font-family: arial;">• Webinar 2: 16 January 2024, 10am to 11am: An introduction to illegal content risk assessments - how the risk assessment can help you improve safety for your users. <a data-cke-saved-href="https://events.teams.microsoft.com/event/706f2df8-4781-4ff4-bf91-06a82d678201@0af648de-310c-4068-8ae4-f9418bae24cc" href="https://events.teams.microsoft.com/event/706f2df8-4781-4ff4-bf91-06a82d678201@0af648de-310c-4068-8ae4-f9418bae24cc">Register for Webinar 2</a>.</span></li><li><span style="font-family: arial;">• Webinar 3: 18 January 2024, 11am to 12pm: An introduction to Ofcom’s draft Codes of Practice for illegal harm - how you can minimise the risk of illegal harm on your service. <a data-cke-saved-href="https://events.teams.microsoft.com/event/a76b7ff0-60df-4feb-9f51-b10882c17cbb@0af648de-310c-4068-8ae4-f9418bae24cc" href="https://events.teams.microsoft.com/event/a76b7ff0-60df-4feb-9f51-b10882c17cbb@0af648de-310c-4068-8ae4-f9418bae24cc">Register for Webinar 3</a>.</span></li></ul><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.ofcom.org.uk/consultations-and-statements/category-1/protecting-people-from-illegal-content-online?utm_medium=email&utm_campaign=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business&utm_content=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business+CID_7a062b280575e439b1b6c621cff2290b&utm_source=updates&utm_term=consultation" href="https://www.ofcom.org.uk/consultations-and-statements/category-1/protecting-people-from-illegal-content-online?utm_medium=email&utm_campaign=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business&utm_content=Ofcom%20webinar%20series%20what%20does%20the%20Online%20Safety%20Act%20mean%20for%20you%20or%20your%20business+CID_7a062b280575e439b1b6c621cff2290b&utm_source=updates&utm_term=consultation">Consultation: Protecting people from illegal harms online - Ofcom</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">UK rejoins Horizon research programme</span></strong></p><p><span style="font-family: arial;">The UK’s association to the world-leading Horizon and Copernicus programmes was officially sealed last week as Science and Technology Secretary Michelle Donelan visited Brussels in an effort to reinstate the UK’s involvement.</span></p><p><span style="font-family: arial;">This deal is set to create and support thousands of jobs as part of the next generation of research talent which were at risk following Brexit. </span></p><p><span style="font-family: arial;">As part of the new deal negotiated over the last six months, the UK states it “Secured improved financial terms of association to Horizon that are right for the UK – increasing the benefits to UK scientists, and value for money for the UK taxpayer”.</span></p><p><span style="font-family: arial;">The Secretary of State has met with the EU Research and Innovation Commissioner Iliana Ivanova, as officials signed the agreement to formalise the bespoke arrangement.</span></p><p><span style="font-family: arial;">Time will tell how the arrangement works out and how the scientific community reacts.</span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/landmark-moment-for-scientists-researchers-and-businesses-as-uk-association-to-80-billion-horizon-research-programme-officially-sealed" href="https://www.gov.uk/government/news/landmark-moment-for-scientists-researchers-and-businesses-as-uk-association-to-80-billion-horizon-research-programme-officially-sealed">Landmark moment for scientists, researchers and businesses as UK association to £80 billion Horizon research programme officially sealed - GOV.UK (www.gov.uk)</a></span></p><p><span style="font-family: arial;"><br /></span></p><p><strong><span style="font-family: arial;">Grants for domestic tree production re-open</span></strong></p><p><span style="font-family: arial;">Professional foresters, landowners, nurseries, and seed suppliers are being encouraged to come forward for the latest round of Seed Sourcing Grant and Tree Production Capital Grants, which opened on the 5 December.</span></p><p><span style="font-family: arial;">The Tree Production Capital Grant supports efforts to build nursery capacity and grow trees and seed supply chains for the long-term. Funding will increase domestic production of trees and seeds, supporting investments in expansion, automation, and mechanisation of facilities and equipment. It has been designed to complement the <a data-cke-saved-href="https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fguidance%2Ftree-production-innovation-fund&data=05%7C01%7CGrace.Cullen%40defra.gov.uk%7C385409abd9fa42a1916d08dbf574e2ca%7C770a245002274c6290c74e38537f1102%7C0%7C0%7C638373654594236393%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=jLjIM6mmydB3dbq6PfQ6S8nnxMBbBdN%2Fn10wIPBmP0E%3D&reserved=0" href="https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fguidance%2Ftree-production-innovation-fund&data=05%7C01%7CGrace.Cullen%40defra.gov.uk%7C385409abd9fa42a1916d08dbf574e2ca%7C770a245002274c6290c74e38537f1102%7C0%7C0%7C638373654594236393%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=jLjIM6mmydB3dbq6PfQ6S8nnxMBbBdN%2Fn10wIPBmP0E%3D&reserved=0">Tree Production Innovation Fund,</a> which provides support for research projects that enhance tree production methods in England. </span></p><p><span style="font-family: arial;">The Seed Sourcing Grant helps boost domestic tree seed production and support green jobs, helping meet the increased demand for trees and achieve our ambitious tree planting targets. Due to shortages of seed globally, it is vital that we improve not only the quantity but also the quality, diversity, and biosecurity of our seed supply.</span></p><p><span style="font-family: arial;">Eligible activities for the Seed Sourcing Grant include:</span></p><ul><li><span style="font-family: arial;">• Management of existing Seed Stands, to ensure they are productive for seed collectors;</span></li><li><span style="font-family: arial;">• Desk studies and field studies to identify and bring additional Seed Stands onto the National Register of Basic Material; </span></li><li><span style="font-family: arial;">• Planning and planting of new Seed Stands; and</span></li><li><span style="font-family: arial;">• Planning and planting of new Seed Orchards. </span></li></ul><p><span style="font-family: arial;">Examples of eligible projects for the Tree Production Capital Grant may include:</span></p><p><span style="font-family: arial;">Intelligent transplanting systems;</span></p><p><span style="font-family: arial;">Polytunnel infrastructure and equipment;</span></p><p><span style="font-family: arial;">Seed processing and storage equipment; and</span></p><p><span style="font-family: arial;">Biosecurity investments such as water treatment and refrigeration equipment. </span></p><p><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/grants-for-domestic-tree-production-re-open" href="https://www.gov.uk/government/news/grants-for-domestic-tree-production-re-open">Grants for domestic tree production re-open - GOV.UK (www.gov.uk)</a></span></p>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0tag:blogger.com,1999:blog-9063899133880503225.post-16356993574517396262023-12-08T12:20:00.001+00:002023-12-08T12:20:06.112+00:008th December 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>Changes to UK company law</strong><br />The Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023 and will introduce a number of changes over the next few years.<br /><br />The act gives Companies House the power to play a more significant role in tackling economic crime and supporting economic growth. Over time, the measures will lead to improved transparency and more accurate and trusted information on Companies House registers.<br /><br />Under the Act, there will be new responsibilities for: </span><ul><li><span style="font-family: arial;">all new and existing company directors;</span></li><li><span style="font-family: arial;">people with significant control of a company (PSCs); and</span></li><li><span style="font-family: arial;">anyone who files on behalf of a company.</span></li></ul><span style="font-family: arial;"> The new legislation generally applies to all entities registered with Companies House, including:</span><ul><li><span style="font-family: arial;">private limited companies; </span></li><li><span style="font-family: arial;">public limited companies (PLCs); </span></li><li><span style="font-family: arial;">limited liability partnerships (LLPs); </span></li><li><span style="font-family: arial;">limited partnerships (LPs); </span></li><li><span style="font-family: arial;">community interest companies (CICs); and </span></li><li><span style="font-family: arial;">overseas companies. </span></li></ul><span style="font-family: arial;"> The legislation applies to companies and other entities registered in England and Wales, Scotland, and Northern Ireland and applies to anyone who files on behalf of clients, such as accountants and company formation agents.<br /><br />If you are planning on starting a new company or another entity type, you will need to consider the changes and new responsibilities introduced by the act. For existing directors and companies, it is important to understand how these changes will affect you.<br /><br />Some of the changes include:</span><ul><li><span style="font-family: arial;">Greater powers for Companies House to query information, stronger checks on company names, new rules for registered office addresses, and new lawful purpose statements;</span></li><li><span style="font-family: arial;">Identity verification - Anyone setting up, running, owning, or controlling a company in the UK will need to verify their identity;</span></li><li><span style="font-family: arial;">Transitioning towards filing accounts by software only, and changes to small company accounts filing options; </span></li><li><span style="font-family: arial;">Increasing Companies House fees to take new future expenditure into account, as well as making sure costs are recovered from existing expenditure;</span></li><li><span style="font-family: arial;">Protecting personal information - Individuals will be able to apply to suppress personal information from historical documents and apply to have personal information protected from public view because of risk of harm;</span></li><li><span style="font-family: arial;">Changes for limited partnerships – these will need to file their information through authorised agents, and they will need to file more information with Companies House; and</span></li><li><span style="font-family: arial;">More effective investigation and enforcement powers for Companies House, and new powers to share data with law enforcement agencies and other government departments. </span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://changestoukcompanylaw.campaign.gov.uk/changes-at-a-glance/" href="https://changestoukcompanylaw.campaign.gov.uk/changes-at-a-glance/">Changes at a glance - Changes to UK company law Companies House changes</a><br /> <br /><strong>Travel support for UK businesses to attend European events</strong><br />Innovate UK is offering travel support for businesses to attend consortia-building events in Europe.<br /><br />The travel awards support businesses who want to expand their networks across Europe and make an impact in collaborative international research and development (R&D) projects.<br /><br />The awards encourage UK participation, engagement, and visibility at international events and aim to accelerate UK involvement in European research programmes (including Horizon Europe and EUREKA).<br /><br />To be eligible for support, you need to be a for-profit, UK-based, R&D performing SME according to the <a data-cke-saved-href="http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en" href="http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en" target="_blank" title="SME definition">EU definition</a>.<br /><br />If successful in your application for travel and accommodation costs, you will receive proactive support from Innovate UK to help you maximise the benefit of attending.<br /><br />Up to £700 is available to help cover travel and subsistence costs needed to attend the following events:</span><ul><li><span style="font-family: arial;"><a data-cke-saved-href="https://spaceconference.eu/" href="https://spaceconference.eu/" target="_blank" title="Shaping the future of European Space ambition">16th European Space Conference</a>, 23-24 January 2024, Brussels, Belgium (Deadline to apply: 2 January 2024, Notification date: 8 January 2023)</span></li><li><span style="font-family: arial;"><a data-cke-saved-href="https://rtrconference.us18.list-manage.com/subscribe?u=d41526073b8e7be4f5f5d9d23&id=2a4b4f6455" href="https://rtrconference.us18.list-manage.com/subscribe?u=d41526073b8e7be4f5f5d9d23&id=2a4b4f6455" target="_blank" title="RTR Conference 2024 Registration ">Road Transport Research Conference</a>, 5-7 February 2024, Brussels, Belgium (Deadline to apply: 24 January 2024, Notification date: 29 January 2024)</span></li><li><span style="font-family: arial;"><a data-cke-saved-href="https://bluepartnership.eu/events/charting-course-towards-sustainable-blue-economy-symposium" href="https://bluepartnership.eu/events/charting-course-towards-sustainable-blue-economy-symposium" target="_blank" title="European event to promote the transformation towards a sustainable blue economy">‘Charting the course towards a Sustainable Blue Economy’ Symposium</a>, 13-14 February 2024, Brussels, Belgium (Deadline to apply: 23 January 2024, Notification date: 24 January 2024)</span></li><li><span style="font-family: arial;"><a data-cke-saved-href="https://www.clean-aviation.eu/media/events/charting-the-skies-of-tomorrow-the-sustainable-aviation-revolution" href="https://www.clean-aviation.eu/media/events/charting-the-skies-of-tomorrow-the-sustainable-aviation-revolution" target="_blank" title="Save the date for Clean Aviation Annual Forum 2024">Clean Aviation Annual Forum</a>, 5-6 March 2024, Brussels, Belgium (Deadline to apply: 21 February 2024, Notification date: 26 February 2024)</span></li><li><span style="font-family: arial;"><a data-cke-saved-href="https://traconference.eu/" href="https://traconference.eu/" target="_blank" title="European transport event that covers all transport modes and all aspects of mobility">Transport Research Arena</a>, 15-18 April 2024, Dublin, Ireland (Deadline to apply: 3 April 2024, Notification date: 8 April 2024)</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://iuk.ktn-uk.org/news/travel-support-now-available/" href="https://iuk.ktn-uk.org/news/travel-support-now-available/">Travel support for UK businesses to attend European events - Apply now! - Innovate UK KTN (ktn-uk.org)</a><br /> <br /><strong>The Unified R&D Tax Credit Scheme</strong><br />The UK government has announced reforms to its Research and Development (R&D) tax credit system. This transformation seeks to combine the Research and Development Expenditure Credit (RDEC) and the SME relief into a singular scheme, effective from accounting periods beginning on or after 1 April 2024.<br /><br />The new “merged approach” intends to streamline the system by introducing a single set of qualifying rules. The merging of these two schemes may raise concerns about the scheme's overall effectiveness compared to the older, higher-rate SME scheme. The new unified scheme's impact on fostering R&D investment and innovation, especially for smaller enterprises, remains to be fully identified.<br /><br />The key changes in the UK's new unified R&D tax relief scheme include:</span><ul><li><span style="font-family: arial;">The introduction of a single set of qualifying rules, rather than separate rules for SME and RDEC claims.</span></li><li><span style="font-family: arial;">The scheme allows companies making R&D decisions and bearing risks to claim relief for subcontracted R&D.</span></li><li><span style="font-family: arial;">Subsidised expenditure rules from the SME scheme will not be carried forward to the new scheme, meaning external funding won't reduce the available support. Grant funded projects remain claimable, which is a welcome announcement.</span></li></ul><span style="font-family: arial;"> The rate under the new scheme is set at the current RDEC rate of 20%. This credit will be subject to corporation tax.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/publications/research-development-rd-tax-relief-reforms" href="https://www.gov.uk/government/publications/research-development-rd-tax-relief-reforms">Research & Development (R&D) tax relief reforms - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Advisory fuel rate for company cars</strong><br />The table below sets out the HMRC advisory fuel rates from 1 December 2023. These are the suggested reimbursement rates for employees' private mileage using their company car.<br /><br />Where the employer does not pay for any fuel for the company car, these are the amounts that can be reimbursed in respect of business journeys without the amount being taxable on the employee.<br /><br /></span><table border="1" cellpadding="0" cellspacing="0" style="width: 0px;"><tbody><tr><td style="height: 27px; width: 96px;"><span style="font-family: arial;">Engine Size</span></td><td style="height: 27px; width: 57px;"><span style="font-family: arial;">Petrol</span></td><td style="height: 27px; width: 57px;"><span style="font-family: arial;">Diesel</span></td><td style="height: 27px; width: 57px;"><span style="font-family: arial;">LPG</span></td></tr><tr><td style="height: 35px; width: 96px;"><span style="font-family: arial;">1400cc or less</span></td><td style="height: 35px; width: 57px;"><span style="font-family: arial;">14p<br />(13p)</span></td><td style="height: 35px; width: 57px;"><span style="font-family: arial;"><br /></span></td><td style="height: 35px; width: 57px;"><span style="font-family: arial;">10p<br /><br /></span></td></tr><tr><td style="height: 35px; width: 96px;"><span style="font-family: arial;">1600cc or less</span></td><td style="height: 35px; width: 57px;"><span style="font-family: arial;"><br /></span></td><td style="height: 35px; width: 57px;"><span style="font-family: arial;">13p<br />(12p)</span></td><td style="height: 35px; width: 57px;"><span style="font-family: arial;"><br /></span></td></tr><tr><td style="height: 42px; width: 96px;"><span style="font-family: arial;">1401cc to 2000cc</span></td><td style="height: 42px; width: 57px;"><span style="font-family: arial;">16p<br /><br /></span></td><td style="height: 42px; width: 57px;"><span style="font-family: arial;"><br /></span></td><td style="height: 42px; width: 57px;"><span style="font-family: arial;">12p<br /><br /></span></td></tr><tr><td style="height: 42px; width: 96px;"><span style="font-family: arial;">1601 to 2000cc</span></td><td style="height: 42px; width: 57px;"><span style="font-family: arial;"><br /></span></td><td style="height: 42px; width: 57px;"><span style="font-family: arial;">15p<br />(14p)</span></td><td style="height: 42px; width: 57px;"><span style="font-family: arial;"><br /></span></td></tr><tr><td style="height: 46px; width: 96px;"><span style="font-family: arial;">Over 2000cc</span></td><td style="height: 46px; width: 57px;"><span style="font-family: arial;">26p<br />(25p)</span></td><td style="height: 46px; width: 57px;"><span style="font-family: arial;">20p<br />(19p)</span></td><td style="height: 46px; width: 57px;"><span style="font-family: arial;">18p<br />(19p)</span></td></tr></tbody></table><span style="font-family: arial;"> <br />Where there has been a change, the previous rate is shown in brackets.<br /><br />You can also continue to use the previous rates for up to 1 month from the date the new rates apply.<br /><br />Note that for hybrid cars you must use the petrol or diesel rate. For fully electric vehicles the rate is 9p (10p) per mile.<br /><br /><u>Please contact us if you need help in applying the new rates.</u><br /> <br /><strong>IP and Business Growth survey</strong><br />The Intellectual Property Office (IPO) is inviting businesses to share their views on how intellectual property (IP) helps them scale and grow.<br /><br />In a modern global economy, innovation, creativity, design, and brand recognition are increasingly important to business success. All these elements are underpinned by IP rights, such as copyright, trademarks, patents, and designs.<br /><br />The IPO wants to support businesses to manage their IP rights effectively. It is conducting a review of UK's IP-backed finance ecosystem and IP insurance landscape. The new survey forms part of this review.<br />The survey covers a broad range of topics. Responses will help the IPO:</span><ul><li><span style="font-family: arial;">better understand how businesses may raise external finance - including leveraging their IP assets to secure funding;</span></li><li><span style="font-family: arial;">explore awareness, perception and use of IP litigation insurance products among businesses; and</span></li><li><span style="font-family: arial;">better understand how to support businesses most effectively in managing their IP assets.</span></li></ul><span style="font-family: arial;"> The IPO wants to hear from businesses of all sizes, and from a wide range of sectors, which hold IP - whether an individual entrepreneur, start-up, established firm, or large corporate.<br /><br />The survey closes on 2 February 2024.<br /><br />See: <a data-cke-saved-href="https://ipoconsultations.citizenspace.com/ipo/ip-and-business-growth-survey/#IPandBSWeb" href="https://ipoconsultations.citizenspace.com/ipo/ip-and-business-growth-survey/#IPandBSWeb">IP and Business Growth Survey - Intellectual Property Office - Citizen Space</a><br /><br /><strong>New funding for space technology projects</strong><br />The UK Space Agency has announced 23 projects that could help the UK with new space technologies and applications around the world.<br /><br />The Enabling Technologies Programme (ETP) provides opportunities for the UK space sector to accelerate the development of leading-edge technologies that could be used to tackle global problems and benefit the work of space organisations internationally. <br /><br />The total government funding is £4 million - made up of £3.2 million from the UK Space Agency with £800,000 contributed by the Science and Technology Facilities Council (STFC), part of UK Research and Innovation (UKRI). <br /><br />The projects from academia and industry explore how space can be used more efficiently for purposes such as weather prediction, climate-change monitoring, and space debris removal through methods of propulsion, sterilisation, in-orbit servicing, imaging, and more. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-uk-funding-for-space-technology-projects" href="https://www.gov.uk/government/news/new-uk-funding-for-space-technology-projects">New UK funding for space technology projects - GOV.UK (www.gov.uk)</a><br /> <br /><strong>UK and South Korea launch talks on new trade deal</strong><br />The UK and South Korea have entered talks on a modernised trade deal to boost trade and strengthen their relationship. <br />It comes as Korean businesses commit £21 billion of investment into the UK, backing renewable energy and infrastructure projects across the country and supporting more than 1,500 highly skilled jobs. <br /><br />South Korea is the 13th largest economy in the world and its import demand is set to grow rapidly. With around 45 million middle class consumers and an import market expected to grow by 45% by 2035, it presents massive opportunities for UK companies. <br /><br />The UK and South Korea are both major modern economies with big digital sectors and the current trade deal, negotiated more than a decade ago, doesn’t include digital chapters that reflect the modern economy. <br /><br />With nearly 80% of UK services exports to Korea delivered digitally in 2021, securing modern digital provisions could unlock big opportunities for UK businesses. <br /><br />The UK’s trade with South Korea has more than doubled in current prices since our existing trade deal was agreed in 2011. An upgraded trade deal is expected to boost our £16 billion annual trading relationship with South Korea, supporting jobs and livelihoods up and down the UK. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-and-south-korea-to-launch-talks-on-new-trade-deal-as-korean-businesses-back-britain-with-21-billion-of-investment" href="https://www.gov.uk/government/news/uk-and-south-korea-to-launch-talks-on-new-trade-deal-as-korean-businesses-back-britain-with-21-billion-of-investment">UK and South Korea to launch talks on new trade deal as Korean businesses back Britain with £21 billion of investment - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Changes to data protection laws – The Data Protection and Digital Information Bill</strong><br />A raft of changes to the Data Protection rules have been laid before Parliament in the Digital Information Bill which aims to build an innovative data protection regime in the UK.<br /><br />The changes include new powers to require data from third parties, particularly banks and financial organisations, to help the UK government reduce fraud and save the taxpayer up to £600 million over the next five years. Currently, Department for Work and Pensions (DWP) can only undertake fraud checks on a claimant on an individual basis, where there is already a suspicion of fraud. <br /><br />The new proposals would allow regular checks to be carried out on the bank accounts held by benefit claimants to spot increases in their savings which push them over the benefit eligibility threshold, or when people spend more time overseas than the benefit rules allow for. This will help to identify fraud and take action more quickly. To make sure that privacy concerns are at the heart of these new measures, only a minimum amount of data will be accessed and only in instances which show a potential risk of fraud and error.<br /><br />Another measure offers vital reassurance and support to families as they grieve the loss of a child. In cases where a child has died through suicide, a proposed ‘data preservation process’ would require social media companies to keep any relevant personal data which could then be used in subsequent investigations or inquests.<br /><br />Current rules mean that social media companies aren’t obliged to hold onto this data for longer than is needed, meaning that data which could prove vital to coroner investigations could be deleted as part of a platform’s routine maintenance. The change tabled before Parliament represents an important step for families coming to terms with the loss of a loved one and takes further steps to help ensure harmful content has no place online.<br /><br />The use of biometric data, such as fingerprints, to strengthen national security is also covered by the amendments, with the ability of Counter Terrorism Police to hold onto the biometrics of individuals who pose a potential threat, and which are supplied by organisations such as Interpol, being bolstered.<br /><br />This would see officers being able to retain biometric data for as long as an INTERPOL notice is in force, matching this process up with INTERPOL’s own retention rules. The amendments will also ensure that where an individual has a foreign conviction, their biometrics will be able to be retained indefinitely in the same way as is already possible for individuals with UK convictions – this is particularly important where foreign nationals may have existing convictions for serious offences, including terrorist offences.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/changes-to-data-protection-laws-to-unlock-post-brexit-opportunity" href="https://www.gov.uk/government/news/changes-to-data-protection-laws-to-unlock-post-brexit-opportunity">Changes to data protection laws to unlock post-Brexit opportunity - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Made in the UK, Sold to the World Awards 2024</strong><br />The annual Made in the UK, Sold to the World awards recognises and celebrates the global trading success of SMEs from across the UK.<br /><br />The Department for Business and Trade’s (DBT's) 2024 Made in the UK, Sold to the World awards are now open for entries.<br /><br />There are ten categories of awards to enter:</span><ul><li><span style="font-family: arial;">Agriculture, Food & Drink;</span></li><li><span style="font-family: arial;">Consultancy & Professional Services;</span></li><li><span style="font-family: arial;">Creative Industries;</span></li><li><span style="font-family: arial;">Education & EdTech;</span></li><li><span style="font-family: arial;">Financial Services & FinTech;</span></li><li><span style="font-family: arial;">Healthcare;</span></li><li><span style="font-family: arial;">Infrastructure & Engineering;</span></li><li><span style="font-family: arial;">Low Carbon Energy;</span></li><li><span style="font-family: arial;">Manufacturing, Advanced Manufacturing & Construction; and</span></li><li><span style="font-family: arial;">Retail & Consumer Goods.</span></li></ul><span style="font-family: arial;"> There will be one winner from each category and up to three highly commended businesses.<br /><br />Winners will receive a 2024 winner's trophy, certificate, and digital badge, as well as a year’s free business membership to the Institute of Export and<br />International Trade (IoEIT). Your business will also receive tailored promotion across Department for Business and Trade channels.<br /><br />Highly commended businesses will receive a certificate, digital badge and a year’s free business membership to the Institute of Export and International Trade.<br /><br />If you have a story to tell about how your business is successfully selling its products or services to the world, DBT want to hear from you. Entries for the 2024 awards will close Sunday 14 January 2024.<br /><br />See: <a data-cke-saved-href="https://www.great.gov.uk/campaign-site/2024-made-in-the-uk-awards/" href="https://www.great.gov.uk/campaign-site/2024-made-in-the-uk-awards/">Awards now open for entries - great.gov.uk</a><br /><br /><strong>UK government funding for jobs in AI sector</strong><br />Up to £17 million in government funding will create more scholarships for AI and data science conversion courses, helping young people from groups underrepresented in the tech industry including women, black people, people with disabilities, and people from disadvantaged socioeconomic backgrounds join the UK’s world-leading Artificial Intelligence (AI) industry.<br /><br />The government is encouraging companies to play their part in creating a future pipeline of AI talent by co-funding the AI scholarships for the conversion courses. Industry support for these scholarships will help get more people into the AI and data science job market quicker and strengthen UK businesses.<br />Together, government and industry funding will create two thousand scholarships for masters AI and data science conversion courses, each worth £10,000. The programme is enabling graduates to do further study courses in the field even if their undergraduate course is not directly related, creating a new generation of experts in data science and AI.<br /><br />Courses are open to anyone who meets a participating university’s entry requirements. Details of how to apply are available on the universities’ websites. Eligible applicants can apply for a scholarship through their university. Please visit the <a data-cke-saved-href="https://www.officeforstudents.org.uk/for-students/planning-to-study/study-artificial-intelligence-and-data-science-as-a-postgraduate/" href="https://www.officeforstudents.org.uk/for-students/planning-to-study/study-artificial-intelligence-and-data-science-as-a-postgraduate/">Office for Student’s website</a> for more information.<br /><br />The UK is ranked third in the world for private venture capital investment into AI companies (2019 investment into the UK reached almost £2.5 billion) and is home to a third of Europe’s total AI companies.<br /><br />The new scholarships will ensure more people can build careers in AI, create, and develop new and bigger businesses, and will improve the diversity of this growing and innovative sector. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/23-million-to-boost-skills-and-diversity-in-ai-jobs" href="https://www.gov.uk/government/news/23-million-to-boost-skills-and-diversity-in-ai-jobs">£17 million to boost skills and diversity in AI jobs - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-4596581847283514902023-12-01T05:40:00.008+00:002023-12-01T05:40:58.922+00:001st December 2023 – Hillmans Weekly Update:<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>The Autumn Statement </strong><br />Chancellor Jeremy Hunt last week unveiled the government’s tax and spending plans in the Autumn Statement. He started his speech by saying that there were 110 measures to “Help grow the British economy”.<br /><br />Growth is better than expected this year according to the Office for Budget Responsibility (OBR), although they state the impact of the Autumn Statement on output growth will be “modest”. <br /><br />They state that the economy recovered more fully from the pandemic and weathered the energy shock better than expected, but they expect inflation to remain higher for longer, taking until the second quarter of 2025 to return to the 2 per cent target, more than a year later than forecast in March. More persistent inflation means markets expect interest rates to be more than a full percentage point higher than assumed in March.<br /><br />The full OBR Economic and fiscal outlook can be seen here: <a data-cke-saved-href="https://obr.uk/docs/dlm_uploads/E03004355_November-Economic-and-Fiscal-Outlook_Web-Accessible.pdf" href="https://obr.uk/docs/dlm_uploads/E03004355_November-Economic-and-Fiscal-Outlook_Web-Accessible.pdf">CP 944 – Office for Budget Responsibility – Economic and fiscal outlook – November 2023 (obr.uk)</a><br /><br />The 2% cut in employee National Insurance Contributions (NIC) will be welcomed by most employees but it is worth pointing out that in October the Institute for Fiscal Studies (IFS) stated that this has been the biggest tax-raising parliament since records began, pushing UK tax revenues to historically high levels. They comment “At the time of the last general election, UK tax revenues amounted to around 33% of national income. By the time of the next election in 2024, on current forecasts, taxes will amount to around 37% of national income – a level not sustained in the post-war period. Compared with a world in which taxes had stayed at 33% of national income, the UK government will be raising upwards of £100 billion more in tax revenues next year. This is equivalent to around £3,500 more per household, though of course the tax rise will not be shared equally. The government argues the pandemic and the energy shock need to be repaid and hence the higher level of tax.<br /><br />On the high level of public spending, the Chancellor said that the country needs “a more productive state, not a bigger state” and he set out a new target for the public sector to increase productivity by at least 5% per year. These measures should ensure growth in the public sector is always lower than growth in the economy. He also stated that the government would meet its fiscal rule on borrowing below 3% of growth domestic product within 5 years of the latest OBR forecast. <br /><u><br />The key business and taxation points made by the chancellor include:</u><br /></span><ul><li><span style="font-family: arial;">A cut in employees National Insurance contributions from 12% to 10% from 6 January 2024.</span></li><li><span style="font-family: arial;">Measures to support corporate capital expenditure - the capital expenditure tax break for businesses that allows them to save on corporation tax by investing, has been made permanent.</span></li><li><span style="font-family: arial;">A new simplified research and development (R&D) tax relief, combining the existing R&D expenditure credit (RDEC) and SME schemes.</span></li><li><span style="font-family: arial;">Business rate relief extended - a freeze on the small business multiplier for a further year.</span></li><li><span style="font-family: arial;">The 75% business rates relief for retail, hospitality, and leisure to be extended to 2025.</span></li><li><span style="font-family: arial;">A 9.8% increase to the minimum wage to £11.44 per hour from April, which will be expanded to 21 and 22-year olds.</span></li><li><span style="font-family: arial;">A consultation on giving pension savers a "legal right to require a new employer to pay pension contributions into their existing pension".</span></li><li><span style="font-family: arial;">Class 2 National Insurance contributions (NIC) for the self-employed will not be required from 6 April 2024.</span></li><li><span style="font-family: arial;">A cut in the rate of Class 4 NIC from 9% to 8% on self-employment/partnership profits between £12,570 and £50,270. </span></li><li><span style="font-family: arial;">Targeted investments for advanced manufacturing and green energy. </span></li><li><span style="font-family: arial;">Further funding of £50M to increase apprenticeships in engineering and other key sectors.</span></li><li><span style="font-family: arial;">Additional levelling up and Artificial intelligence funding. </span></li><li><span style="font-family: arial;">Extending the financial incentives for Investment Zones and tax reliefs for Freeports from five to 10 years.</span></li><li><u><span style="font-family: arial;">Some of the other key statements made include:</span></u></li><li><span style="font-family: arial;">Welfare recipients will be made to undertake a mandatory work placement if they are still looking for a job after 18 months.</span></li><li><span style="font-family: arial;">Universal Credit and disability benefits will increase next year by 6.7%.</span></li><li><span style="font-family: arial;">State pensions will increase by 8.5% in April 2024, honouring the “Triple lock” in full. </span></li><li><span style="font-family: arial;">Tobacco duty will rise by 10% above the tobacco escalator and alcohol duty is frozen until 1 August 2024.</span></li><li><span style="font-family: arial;">The UK will continue to meet its NATO defence spending target of 2% of GDP.</span></li><li><span style="font-family: arial;">The local housing allowance will increase with an average increase of £800 for 1.6 million households.</span></li><li><span style="font-family: arial;">Plans to speed up planning applications.</span></li></ul><span style="font-family: arial;">You can read the Autumn Statement in full here: <a data-cke-saved-href="https://assets.publishing.service.gov.uk/media/655df827544aea000dfb3277/E02982473_Autumn_Statement_Nov_23_Accessible_v2.pdf" href="https://assets.publishing.service.gov.uk/media/655df827544aea000dfb3277/E02982473_Autumn_Statement_Nov_23_Accessible_v2.pdf">Autumn Statement 2023 (publishing.service.gov.uk)</a> <br /><u><br />So, are there any tax planning opportunities ahead of the new tax year?</u><br />The new tax year starts 6 April 2024, so you have four months to consider your planning options. Once we pass this date, the majority of the tax planning options for Income Tax and Capital Gains Tax purposes will cease unless actioned.<br /><u><br />Do you fall into any of these categories?</u><br /></span><ul><li><span style="font-family: arial;">You have or are thinking about a change in your personal status (single, married, separating, joining, or dissolving a civil partnership);</span></li><li><span style="font-family: arial;">You are thinking about selling a capital asset, such as shares or a property;</span></li><li><span style="font-family: arial;">You or your child’s other parent claims Child Benefit and the income of either parent is likely to exceed £50,000 for the first time during tax year 2023-24;</span></li><li><span style="font-family: arial;">Your annual income is approaching or above £100,000;</span></li><li><span style="font-family: arial;">You have not yet topped up your pension contributions for tax year 2023-24;</span></li><li><span style="font-family: arial;">You are self-employed with a 31 March 2024 year-end;</span></li><li><span style="font-family: arial;">You are thinking about the purchase of equipment or vehicles; or</span></li><li><span style="font-family: arial;">You are the director and/or shareholder of a limited company and have not yet considered voting dividends or bonuses for 2023-24.</span></li></ul><span style="font-family: arial;"><u>If you do, we can help you discuss your options ahead of the April 2024 deadline.</u><br />The above list is not comprehensive, and we specialise in helping clients with all taxes, including PAYE. Please contact us!<br /> <br /><strong>Where does the money go?</strong><br />With ever increasing supplier prices, managing your businesses cash and understanding the flow are now vital tools in maintaining resilience and being able to adopt flexible strategies for success.<br /><br />Fund flows are a reflection of all the cash that is flowing in and out of a business. Owners can look at the direction of the cash flows for insights about the health of specific products or services and overall market patterns.<br /><br />Some types of business are more likely to run into cash flow problems, while other types appear to be more resilient. If you are a business owner, you might be wondering which category your business falls into. No matter how inventive or simple your business model is, you can still have problems with cash flow. Here are our thoughts on managing the flow of cash in your business:<br /><br />The first stage of understanding and predicting how funds flow is to perform a health check on your accounts. Look at your latest profit and loss statement and check that your income is sufficient to cover your expenses. If your profit is falling behind your expenses and cash flow is slowing down, you might need to take action. Prepare a funds flow statement so you know where the money goes.<br /><br />Next, create a yearly budget and look where cash could become tight and months where you can save to cover off the quieter times. Look at those quieter months and think about flexible work scheduling, new products or services, or other activities to tide you over.<br /><br />Finally, make sure you collect your money from those who owe you quickly. Reward customer loyalty by offering early bird discounts; set credit limits and payment terms to ensure customers follow the rules. If you take on new customers, make credit checks. Penalise late payers and request up front deposits or payment.<br /><u><br />Talk to us about preparing a funds flow statement and annual budget so that you can work on your business for maximum success! </u><br /> <br /><strong>What is Working Capital Finance?</strong><br />Working capital finance solutions offer businesses the opportunity to improve cash flow. The world of commercial finance and asset based lending (ABL) is complex and expansive with products, terminology and contractual interpretation varying from lender-to-lender.<br /><br />The Benefits of arranging Working Capital are:<br /></span><ul><li><span style="font-family: arial;">Up to 90% of outstanding invoice value can be advanced within 24 hours;</span></li><li><span style="font-family: arial;">Flexible lending – funding increases in line with your growth (UK and Export);</span></li><li><span style="font-family: arial;">Confidentiality – lenders can offer a completely confidential service – your customers need not know you have a facility in place;</span></li><li><span style="font-family: arial;">Lenders allow you to manage your funding at all times;</span></li><li><span style="font-family: arial;">Sector-specific finance is often available;</span></li><li><span style="font-family: arial;">Structured ABL – funding for management buy-outs/management buy-ins; and</span></li><li><span style="font-family: arial;">Trade Finance & Supply Chain Finance Solutions.</span></li></ul><span style="font-family: arial;">Specialists in this area can advise on:<br /></span><ul><li><span style="font-family: arial;">Invoice Finance - an effective way of quickly accessing a proportion of the value (up to 90%) of your invoices. Effectively, a business ‘sells’ its invoices to the lender in return for accessing cash at the point products and services are sold. Specific sector-based offerings are available, as is the ability to arrange finance for selected invoices only.</span></li><li><span style="font-family: arial;">Structured ABL - generate a higher level of funding by unlocking the maximum value tied up in the combined assets within your business, including Debtors, Inventory, Plant & Machinery and Property. Additional forms of funding can be structured in addition to this, such as top up loans in order to drive growth.</span></li><li><span style="font-family: arial;">Trade Finance - supply chain finance with various options, enabling the purchasing of goods from overseas where you are otherwise unable to obtain credit from suppliers.</span></li></ul><span style="font-family: arial;">Typically, you will need to ensure your management accounts are up to date, you make available current detailed lists of debtors and creditors, and you might need up to date projections before an expert will consider your application. Please talk to us about finance; our working capital finance experts have many years of experience and success in advising businesses across a wide range of sectors in obtaining working capital finance solutions.<br /><strong><br />HSE guidance on keeping workplace temperature reasonable</strong><br />As winter takes hold, you can find helpful advice from the Health and Safety Executive (HSE) on keeping people as comfortable as possible when working in the cold. <br /><br />The guidance has been refreshed to make it easier to find and understand advice on how to protect workers in both low and high temperatures.<br /><br />The Workplace (Health, Safety and Welfare) Regulations require employers to provide a reasonable indoor temperature in the workplace.<br /><br />The guidance explains how you can assess the risks to workers and put controls in place to protect them.<br /><br />There is a workplace temperature checklist to help you carry out a basic risk assessment. HSE have also updated sources of advice, including practical steps you can take in the summer months to protect workers during a heatwave.<br /><br />See: <a data-cke-saved-href="https://www.hse.gov.uk/temperature/index.htm?utm_source=govdelivery&utm_medium=email&utm_campaign=temp-winter-2223&utm_term=temp-headline&utm_content=digest-1-dec-22" href="https://www.hse.gov.uk/temperature/index.htm?utm_source=govdelivery&utm_medium=email&utm_campaign=temp-winter-2223&utm_term=temp-headline&utm_content=digest-1-dec-22">Temperature (hse.gov.uk)</a><br /> <br /><strong>Stay safe in the snow</strong><br />The Met Office have some practical advice and information on what to do to stay safe in the snow.<br /><br />When there is a snow warning in place the guidance covers:<br /><br />1. What to do if you need to drive somewhere;<br />2. Driving safely in snow;<br />3. Thinking ahead and acting now so you can cope if cut off;<br />4. Staying safe if you are cut off; and<br />5. What you can do in a power cut<br />See: <a data-cke-saved-href="https://www.metoffice.gov.uk/weather/warnings-and-advice/seasonal-advice/stay-safe-in-snow" href="https://www.metoffice.gov.uk/weather/warnings-and-advice/seasonal-advice/stay-safe-in-snow">5 tips for staying safe in snow - Met Office</a><br /> <br /><strong>ICO guidance on international data transfers</strong><br />The Information Commissioner's Office (ICO) has guidance on international transfers guidance:<br /></span><ul><li><span style="font-family: arial;">a section on <a data-cke-saved-href="https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/international-transfers/international-data-transfer-agreement-and-guidance/international-data-transfer-agreement-and-guidance/transfer-risk-assessments/" href="https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/international-transfers/international-data-transfer-agreement-and-guidance/international-data-transfer-agreement-and-guidance/transfer-risk-assessments/">transfer risk assessments (TRAs)</a>; and</span></li></ul><ul><li><span style="font-family: arial;">a downloadable <a data-cke-saved-href="https://ico.org.uk/media/for-organisations/documents/4022649/transfer-risk-assessments-tool-20221117.doc" href="https://ico.org.uk/media/for-organisations/documents/4022649/transfer-risk-assessments-tool-20221117.doc" target="_blank" title="Questions, guidance and a template to help you complete a transfer risk assessment">TRA tool (DOC, 368K)</a>.</span></li></ul><span style="font-family: arial;">This information aims to help organisations know how to protect people's personal information when making international transfers. The guidance clarifies an alternative transfer risk assessment approach to the one put forward by the European Data Protection Board.<br /><br />With the guidance, and the six-question TRA tool, the ICO offers a framework to help people identify an initial risk level for categories of data and focus on whether the transfer significantly increases the risk of either privacy or other human rights breach. The ICO believes this approach captures the key risk to the people the data is about and is also achievable.<br /><br />See: <a data-cke-saved-href="https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/international-transfers/" href="https://ico.org.uk/for-organisations/guide-to-data-protection/guide-to-the-general-data-protection-regulation-gdpr/international-transfers/">International transfers | ICO</a><br /> <br /><strong>Changes to Digital Markets Bill introduced to ensure fairer competition in tech industry</strong><br />The Digital Markets, Competition and Consumers Bill is set to introduce a new targeted and proportionate regulatory regime to address concerns around competition in the digital industry while ensuring that the UK remains one of the best places to invest in and innovate new technology. <br /><br />At the heart of the Bill is a new approach to digital market regulation, allowing the Competition and Markets Authority (CMA) to intervene quickly and flexibly to promote competition.<br /><br />Amendments to the Bill recently proposed by the Government will maintain the appeals process for all regulatory decisions (except fines) on the basis of judicial review principles. This will mean that eligible tech firms can challenge regulatory decisions on proportionality grounds through this process.<br /><br />This approach will enable the CMA to encourage the most powerful firms in dynamic digital markets to work with regulators to ensure competition is maintained on an ongoing basis, rather than allowing legal challenges to cause the regime to get bogged down in the courts. This will also act as a further <br />incentive on the CMA to ensure that it is always acting proportionately and exploring the intervention that is most likely to achieve the best outcome for consumers.<br /><br />Under the Bill, certain firms may also be subject to fines that could reach tens of billions of pounds. To make sure these huge fines are balanced by rigorous checks and balances, these firms will now be able to challenge these decisions “on their merits”. These changes allow firms to challenge fines on the substance of the decision, as well as the process to reach that decision. <br /><br />The legislation will also make clear that the regulator cannot impose a conduct requirement or pro-competition intervention on a firm unless it is proportionate to do so and there is a strong evidence base behind the intervention.<br /><br />These amendments bring the digital markets regime in line with the approach taken for decisions under the CMA’s Mergers and Markets regimes, where the decisions about the level of a fine can be appealed on the merits.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/changes-to-digital-markets-bill-introduced-to-ensure-fairer-competition-in-tech-industry" href="https://www.gov.uk/government/news/changes-to-digital-markets-bill-introduced-to-ensure-fairer-competition-in-tech-industry">Changes to Digital Markets Bill introduced to ensure fairer competition in tech industry - GOV.UK (www.gov.uk)</a><br /> <br /><strong>UK opens electronic travel authorisation scheme</strong><br />The UK’s electronic travel authorisation (ETA) scheme has officially opened for Qatari nationals who, from today, need one to travel to the UK. <br /><br />This demonstrates the UK government’s delivery in transforming and digitising the UK border, enabling an increasingly seamless customer experience in the future for the millions of legitimate visitors who come to the UK.<br /><br />Qataris have been able to apply for their ETA since 25 October 2023, with most doing so using the mobile app, which allows for a simple and fast application. <br /><br />Nationals of Bahrain, Kuwait, Oman, United Arab Emirates, Saudi Arabia and Jordan will need an ETA if they’re visiting the UK from 22 February 2024, and can apply for their ETA from 1 February 2024. <br /><br />ETAs are replacing Electronic Visa Waivers (EVW) which the majority of Gulf nationals currently apply for. An ETA is an improvement from the EVW, being a third of the price at £10 and allowing unlimited visits to the UK over two years, or until the holder’s passport expires – whichever is sooner. The move to the ETA scheme means that the visa requirement will be removed for short stays to the UK for nationals from the Gulf and Jordan. <br /><br />When applying for an ETA, applicants need to provide biographic and biometric information, and answer questions on suitability and criminality. The application process ensures that those who pose a danger to the UK’s security, such as criminals, are not allowed to travel here. Once individuals have successfully applied, their ETA is digitally linked to their passport. <br /><br />While the standard processing time for an application is 3 working days, the majority of applications so far have been decided within hours. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-opens-electronic-travel-authorisation-scheme" href="https://www.gov.uk/government/news/uk-opens-electronic-travel-authorisation-scheme">UK opens electronic travel authorisation scheme - GOV.UK (www.gov.uk)</a><br /> <br /><strong>The StartUp Awards 2024</strong><br />With over 35 categories ranging from Creative StartUp of the Year, Technology Services StartUp of the Year, Global StartUp of the Year, and Innovative StartUp of the Year; businesses providing any services across any industry are in with the chance of winning regional StartUp of the Year! <br /><br />The StartUp Awards offer a chance for businesses to gain recognition and exposure, build brand visibility, make industry contacts, and network with potential investors, all while celebrating the incredible achievements of StartUps in the early years of their business journey.<br />Applications open in December 2023.<br /><br />The StartUp Awards is completely free to enter and offers applicants access to a supportive community of peers, experts, and supporters. <br /><br />See: <a data-cke-saved-href="https://startupawards.uk/info/" href="https://startupawards.uk/info/">What are the StartUp Awards? – Start Up Awards</a><br /> <br /><strong>The Smart Data Discovery Challenge</strong><br />There are few aspects of our lives today that are not influenced, informed, or driven by data.<br /><br />We generate data constantly in our daily lives: when we spend and save; when we use energy or watch TV; when we shop, travel, or use the internet. But most of this data remains locked away in individual companies and organisations, rather than being put in the hands of consumers.<br /><br />The Department for Business & Trade (DBT), Challenge Works, the Open Data Institute (ODI) and Smart Data Foundry are inviting individuals, innovators, entrepreneurs, academia, and civil society to identifying innovative ways in which Smart Data could make a difference for consumers, small businesses, and wider society.<br /><br />This open call isn’t seeking fully-formed solutions, but cross-sector Smart Data use case ideas that use data from at least one of the following five sectors:<br /></span><ul><li><span style="font-family: arial;">Financial services,</span></li><li><span style="font-family: arial;">Home buying,</span></li><li><span style="font-family: arial;">Energy,</span></li><li><span style="font-family: arial;">Transport, and</span></li><li><span style="font-family: arial;">Retail.</span></li></ul><span style="font-family: arial;">Following the Discovery Challenge, the aim is to launch a Smart Data challenge prize later in 2024. Participants in this prize will benefit from a share of up to £750,000 to prototype and test solutions that demonstrate a range of promising cross-sector Smart Data use cases in action.<br /><br />You must submit your entries by 4pm on 8 December 2023.<br /><br />See: <a data-cke-saved-href="https://smartdata.challenges.org/" href="https://smartdata.challenges.org/">Home - Smart Data Challenge (challenges.org)<br /><br /></a><u><strong>Free course on ethical AI for creative industries</strong></u><br />As part of the Innovate UK BridgeAI programme, the Alan Turing Institute is hosting a series of free virtual courses that will look at relating the concepts of ethical artificial intelligence (AI) principles into the systems design process.<br /><br />The first course is open to applications from small and medium businesses in the creative industries only.<br /><br />The 'Operationalising ethics in AI in creative industries' live training course will consist of two sessions taking place online on:<br /></span><ul><li><span style="font-family: arial;">Thursday 7 December 2023 (10am - 1pm), and</span></li><li><span style="font-family: arial;">Thursday 14 December 2023 (10am - 1pm).</span></li></ul><span style="font-family: arial;">Participants will engage with real-world case studies and provocative thought experiments to challenge and stimulate understanding of ethical considerations in AI. The learning experience will provide ample opportunities for discussion with experts and peers about how these concepts apply in the creative industries sector.<br /><br />The course is open to creative industries SMEs. Participants should be currently developing or using AI solutions or looking to employ them in their organisation.<br /><br />No prerequisite skills are required; however, it would be useful to have an interest in or a basic understanding of AI and the existing regulatory landscape.<br /><br />Registration is open until 11:30pm on 3 December 2023.<br /><br />See: <a data-cke-saved-href="https://www.eventsforce.net/turingevents/frontend/reg/thome.csp?pageID=130701&eventID=328&traceRedir=2" href="https://www.eventsforce.net/turingevents/frontend/reg/thome.csp?pageID=130701&eventID=328&traceRedir=2">BridgeAI live training course: Operationalising Ethics in AI (eventsforce.net)</a><br /> <br /><strong>Dispute resolution – Modernising the framework</strong><br />The new Arbitration Bill could benefit businesses and individuals around the world who look to the UK as the best place to resolve disputes from family law and rent reviews to international commercial contracts and claims by foreign investors made against entire countries. <br /><br />Modernising the framework for arbitration in this country for the first time in 26 years – making it quicker, cheaper, and more efficient –could cement the position of this high-value sector in the face of growing competition from other centres such as Singapore and Paris. <br /><br />With arbitrations in England and Wales worth £2.5 billion to the British economy each year in fees alone, the Bill should help the UK’s world-leading legal services sector to continue to flourish. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/modernised-laws-to-secure-uk-as-world-leader-in-dispute-resolution" href="https://www.gov.uk/government/news/modernised-laws-to-secure-uk-as-world-leader-in-dispute-resolution">Modernised laws to secure UK as world leader in dispute resolution - GOV.UK (www.gov.uk)</a><br /> <br /><strong>UK Export Finance deal secures investment in North-East England</strong><br />UK Export Finance (UKEF) and South Korea’s export credit agency Korea Trade Insurance Corporation (K-Sure) have helped SeAH Wind UK to secure £367 million in Standard Chartered Bank and HSBC UK financing to build the world’s largest wind monopile manufacturing facility.<br /><br />The financing will secure inward investment which will create 750 jobs in Teesside and ensures construction of the world’s largest wind monopile factory in Redcar.<br /><br />Issuing its first ever ‘Invest-to-Export’ loan guarantee to secure overseas investment in British industry, UKEF together with K-Sure has ensured that SeAH Wind UK can fund the construction project – worth almost £500 million. The facility was also eligible for longer and more flexible repayment terms as a ‘Clean-Growth’ facility.<br /><br />Wind monopiles act as the foundation for most offshore wind turbines and are considered important to the growth of the global renewable energy sector. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/ground-breaking-uk-export-finance-deal-secures-huge-investment-in-north-east-england" href="https://www.gov.uk/government/news/ground-breaking-uk-export-finance-deal-secures-huge-investment-in-north-east-england">Ground-breaking UK Export Finance deal secures huge investment in North-East England - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Investment to reduce water and air pollution from slurry</strong><br />A further £74 million is being made available to help farmers invest in improved slurry infrastructure to tackle water pollution, improve air quality, and make better use of organic nutrients, the government announced last week. <br /><br />Applications are now open for the second round of the <a data-cke-saved-href="https://www.gov.uk/government/publications/slurry-infrastructure-grant-round-2-applicant-guidance." href="https://www.gov.uk/government/publications/slurry-infrastructure-grant-round-2-applicant-guidance.">Slurry Infrastructure Grant</a> which forms part of a total £200 million being invested in infrastructure and equipment to tackle agricultural pollution from slurry over the agricultural transition period. <br /><br />The second round has more than double the funding on offer than the first round of the scheme to help meet increased demand. Based on feedback from farmers, several improvements are being made to the scheme, including how much storage pig farms can apply for, offering grants towards a slurry separator, and the option to retrofit covers onto existing stores. <br /><br />Under the Slurry Infrastructure Grant, farmers can apply for grants of £25,000 to £250,000 to replace, expand, build extra, and cover slurry stores, and fund equipment such as separators, reception pits and agitators.<br /><br />The grant forms a key component of the government’s Plan for Water which sets out more investment, stronger regulation, and tougher enforcement to tackle every source of water pollution. It also delivers on vital commitments under the Environmental Improvement Plan to reduce air pollution, halt biodiversity decline, and support recovery of protected sites. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/74m-investment-to-reduce-water-and-air-pollutionfrom-slurry" href="https://www.gov.uk/government/news/74m-investment-to-reduce-water-and-air-pollutionfrom-slurry">£74m investment to reduce water and air pollution from slurry - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-55895566146794655012023-11-24T10:38:00.001+00:002023-11-24T10:40:19.938+00:0024th November 2023 – Hillmans Weekly Update (Autumn Statement 2023)<p><strong><span style="font-family: arial;">24th November 2023 – Hillmans Weekly Update (Tax E-News – Autumn Statement 2023):</span></strong></p><span style="font-family: arial;">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!<br /><br />Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br />On 22 November 2023, Chancellor Jeremy Hunt presented his Autumn Statement to Parliament and started making, in his words, the long-term decisions necessary to strengthen the economy and build a brighter future. Fueled by falling inflation and stabilised public finances, focus is now being applied to reducing debt, cutting tax and rewarding hard work.<br /><br />Headlines included generous National Insurance Contribution (NIC) cuts for workers and the self-employed and the ‘biggest permanent tax cut in modern British history for businesses’. Some other anticipated measures appear to be on hold ahead of a full Budget next Spring and an expected 2024 general election.<br /><br />Below, we talk more about the Autumn Statement headlines and other measures announced. Please note that ‘tax years’ run to 5 April each year and that, for example, 2024/25 signifies the year to 5 April 2025.<br /></span><h1><span style="font-family: arial;">CUTTING TAX AND REWARDING HARD WORK</span></h1> <span style="font-family: arial;"><u>For employees</u><br />In addition to income tax, all employees earning more than £12,570 a year pay Class 1 NICs. The main rate of Class 1 NICs will be cut from 12% to 10% from 6 January 2024. This will come into effect from January 2024 and, over a full year, the average worker on £35,400 will receive a NIC reduction of over £450. Workers earning more than £50,270 a year will receive a NIC reduction of £754.<br /><br />The Class 1 NIC rate will remain at 2% for earnings above £50,270 a year.<br /><br />Similarly, there are no changes to the rate of employer’s Class 1 NICs, which remains at 13.8%.<br /><br /><u>For the self-employed</u><br />Self-employed individuals with profits of more than £12,570 a year pay two types of NIC: Class 2 and Class 4.</span><ul><li><span style="font-family: arial;">Class 2 NICs have been at a flat rate sum of £179.40 a year (£3.45 a week) in 2023/24 but no one will be required to pay the charge from 6 April 2024.</span></li><li><span style="font-family: arial;">The main rate of Class 4 NICs will be cut from 9% to 8% from 6 April 2024. Class 4 NICs will continue to be calculated at 2% on profits over £50,270.</span></li></ul><span style="font-family: arial;"> Taken together these changes will result in an average self-employed person with profits of £28,200 saving £336 in 2024/25. <br /><br />Class 2 NICs currently provide the self-employed with access to a range of state benefits, including the State Pension. From 6 April 2024, self-employed people with annual profits;</span><ul><li><span style="font-family: arial;">Above £12,570 – will continue to receive access to the benefits.</span></li><li><span style="font-family: arial;">Between £6,725 and £12,570 - will continue to receive access to the benefits, via a National Insurance credit.</span></li><li><span style="font-family: arial;">Under £6,725 (or with losses) – will be able to continue to pay Class 2 NICs on a voluntary basis in order to maintain their access to state benefits. Class 2 NICs had been due to increase in 2024/25 but it seems that these will be maintained at the current £3.45 weekly level for those in this bracket.</span></li></ul><h1><span style="font-family: arial;">STATE BENEFITS</span></h1><span style="font-family: arial;"> The government will uprate all working age benefits for 2024/25 by the September 2023 Consumer Price Index (CPI) of 6.7% and will continue to protect pensioner incomes by maintaining the promised ‘triple lock’ and uprating the basic State Pension, new State Pension and Pension Credit standard minimum guarantee for 2024/25 in line with highest of the three possible measures, namely average earnings growth of 8.5%.</span><h1><span style="font-family: arial;">NATIONAL MINIMUM WAGE (NMW)</span></h1><span style="font-family: arial;"> The biggest ever increase to the National Living Wage has been announced, with the government fully accepting the recommendations made by the Low Pay Commission. Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21-year-olds for the first time. It was previously for those aged 23 and over only. From 1 April 2024 the minimum pay rates will be as follows:<br /><br /></span><table border="1" cellpadding="0" cellspacing="0"><tbody><tr><td style="width: 302px;"><span style="font-family: arial;"><br /></span></td><td style="width: 95px;"><span style="font-family: arial;"><strong>NMW rate</strong><br /><strong>£</strong></span></td><td style="width: 76px;"><span style="font-family: arial;"><strong>Increase </strong><br /><strong>£</strong></span></td><td style="width: 76px;"><span style="font-family: arial;"><strong>Increase</strong><br /><strong>%</strong></span></td></tr><tr><td style="width: 302px;"><span style="font-family: arial;">National Living Wage (age 21 and over)</span></td><td style="width: 95px;"><span style="font-family: arial;">11.44</span></td><td style="width: 76px;"><span style="font-family: arial;">1.02</span></td><td style="width: 76px;"><span style="font-family: arial;">9.8</span></td></tr><tr><td style="width: 302px;"><span style="font-family: arial;">18-20 year old rate</span></td><td style="width: 95px;"><span style="font-family: arial;">8.60</span></td><td style="width: 76px;"><span style="font-family: arial;">1.11</span></td><td style="width: 76px;"><span style="font-family: arial;">14.8</span></td></tr><tr><td style="width: 302px;"><span style="font-family: arial;">16-17 year old rate</span></td><td style="width: 95px;"><span style="font-family: arial;">6.40</span></td><td style="width: 76px;"><span style="font-family: arial;">1.12</span></td><td style="width: 76px;"><span style="font-family: arial;">21.2</span></td></tr><tr><td style="width: 302px;"><span style="font-family: arial;">Apprentice rate</span></td><td style="width: 95px;"><span style="font-family: arial;">6.40</span></td><td style="width: 76px;"><span style="font-family: arial;">1.12</span></td><td style="width: 76px;"><span style="font-family: arial;">21.2</span></td></tr></tbody></table><h1><span style="font-family: arial;">BACKING BRITISH BUSINESS</span></h1> <span style="font-family: arial;"><u>Tax Relief for expenditure on plant and machinery</u><br />The Annual Investment Allowance (AIA) is now permanently set at £1million. This means that businesses can claim tax relief at 100% on up to £1million of expenditure on qualifying plant and machinery (e.g. capital equipment).<br /><br />‘Full expensing’ is an additional and alternative relief for companies only. It allows unlimited 100% upfront tax relief on qualifying plant and machinery that is purchased in a new condition on or after 1 April 2023. There is also an associated 50% allowance for expenditure on certain types of plant and machinery that does not qualify for the full 100% (including space and water heating systems, for example).<br /><br />This ‘full expensing’ regime was initially introduced in Spring 2023 and had an original end date of 31 March 2026. It has now been announced that it will be made permanently available. Described as the ‘<em>biggest business tax cut in modern British history</em>’ it must be noted that it will usually only benefit companies or groups of companies that have already utilised their £1million AIA. It is not available at all for unincorporated businesses, although the expansion of the cash-basis (see below) achieves a very similar effect for sole traders and partnerships.<br /><br />Full expensing does come with some quite complicated rules on the amount of upfront relief and the calculation of tax charges that may apply when the purchased plant and machinery is sold. Please talk to us for more details.<br /><br /><u>Making Tax Digital (MTD) for Income Tax</u><br />Under MTD for income tax, businesses will keep digital records and send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. These requirements will be phased in from April 2026, starting with sole traders and property landlords with gross income over £50,000.<br /><br />In readiness, some ‘design changes’ to the scheme have now been announced to simplify and improve the system. These include:</span><ul><li><span style="font-family: arial;">Simplifying the requirements for providing quarterly updates by making them cumulative and adding functionality to amend or correct errors throughout the year;</span></li><li><span style="font-family: arial;">Simplifying the rules for taxpayers with more complex affairs, such as landlords with jointly-owned property;</span></li><li><span style="font-family: arial;">Removing the requirement to provide an End of Period Statement, with emphasis instead placed on a final declaration;</span></li><li><span style="font-family: arial;">Exempting some taxpayers altogether, including foster carers and those without a National Insurance number; and</span></li><li><span style="font-family: arial;">Enabling taxpayers using MTD to be represented by more than one tax agent.</span></li></ul><span style="font-family: arial;"> There will also be new rules to ensure that taxpayers who volunteer to join MTD for income tax from April 2024 will be subject to the new, fairer points-based penalty regime for late filing of tax returns and late payment of tax, as already implemented for VAT. This approach assures the compliant majority that an occasional failure in the context of overall good compliance will not be treated in the same way as persistent poor compliance.<br /><br /><u>Business Rates</u><br />A new business rates support package worth £4.3 billion will be made available over the next five years to support small businesses and the high street.<br /><br />For 2024/25, the small business multiplier will continue to be frozen and the 75% Retail, Hospitality and Leisure business rates relief will continue to apply.<br /><br />The standard rate multiplier will be uprated in line with the September 2023 CPI of 6.7%. While this will increase business rates bills for some, large retailers are expected to benefit from hundreds of millions of pounds of tax relief per year as a result of full expensing.<br /><br /><u>Getting Paid</u><br />One of the key challenges facing small businesses is the cash-flow implications of late payments, which hold them back from investing and innovating.<br /><br />The government plans to lead by example by introducing more stringent payment time requirements for firms bidding for large government contracts. From April 2024, firms bidding for government contracts over £5million will have to demonstrate that they pay their own invoices within an average of 55 days, tightening to 45 days in April 2025, and to 30 days in the coming years.<br /><br /><u>Upskilling</u><br />Various initiatives are on the cards for business leaders to acquire the vital skills and opportunities they need to stay relevant, increase productivity and grow their businesses.<br /><br />This includes a pledge that HMRC will rewrite its guidance on the tax deductibility of training costs for sole traders and the self-employed, to provide more clarity to business on what costs are deductible. This will ensure that individuals can be confident that updating existing skills, or maintaining pace with technological advances or changes in industry practices, are allowable costs for tax purposes.<br /><br /><u>Unincorporated businesses and their accounting year-ends</u><br />Unincorporated businesses that prepare annual accounts to a year-end date other than 31 March or 5 April will soon need to either change their accounting year-end or adopt a new process for how the profits or losses arising in their accounts are reported to HMRC.<br /><br />At present, ‘basis period’ rules apply that broadly allow annual accounts that end during a tax year to act as the basis of profits or losses arising in that tax year.<br /><br />A new system starts with transitional rules in 2023/24. From 2024/25, actual profits (or losses) arising in a tax year must be reported to HMRC by calculating and combining appropriate proportions of tax-adjusted profits (or losses) for the parts of each accounting period that overlap with a tax year.<br />Unfortunately, this will make it harder for some self-employed individuals to fulfil their tax compliance obligations and predict their income tax liabilities, but we will be on hand to help you.<br /><br /><u>Using the cash basis to compute business profits</u><br />The ‘cash basis’ can be a simplified way of calculating taxable profits for income tax purposes. It is based on simply declaring income received and expenses paid, without adjustments seen in more sophisticated accounts prepared in accordance with traditional ‘accruals based’ principles (e.g. to include adjustments for stock valuations and amounts owed by customers). The cash basis is currently an option for sole traders and partnerships if their annual business turnover is £150,000 or less.<br /><br />In a significant shift from 6 April 2024, the cash basis will become the default accounting basis for all unincorporated businesses. The £150,000 turnover limit will be removed and some of the restrictions within the current regime that limit relief for interest deductions and loss relief will also be removed.<br /><br />Businesses can ‘opt out’ of the cash basis and continue to prepare a balance sheet and use the ‘accruals basis’ if they wish. This will be an important choice, particularly in relation to business intelligence and management reporting, so please do talk to us about the options if this affects you.<br /><br /><u>Investment Zones and Freeports</u><br />Earlier this year, the government announced that it would establish 12 ‘Investment Zones’ across the UK. These Zones target tax and other incentives on high potential industry sectors to boost productivity and growth. A number of the Zones have now been announced and the Chancellor has now pledged to extend the program of funding and tax reliefs for these Zones from 5 to 10 years.<br /><br />The tax incentives include relief from Stamp Duty Land Tax (SDLT), enhanced capital allowances for plant and machinery, enhanced structures and buildings allowances, business rates relief and reduced employer NICs on the earnings of eligible employees.<br /><br />There has also been an associated extension to the window to claim Freeport tax reliefs in England; from 5 to 10 years, until September 2031. The tax benefits on offer in these port-based locations are similar to Investment Zones but also give extra VAT and Customs benefits.</span><h1><span style="font-family: arial;">VAT</span></h1><span style="font-family: arial;"> The VAT registration and deregistration thresholds continue to be frozen at £85,000 and £83,000 respectively, instead of increasing each year in line with inflation. This is thought to be a blocker to growth in small businesses and so will be one to watch in the Spring Budget next year.<br /><br />There have been no change to rates of VAT.</span><h1><span style="font-family: arial;">INCOME TAX</span></h1> <span style="font-family: arial;"><u>‘Stealth’ increases</u><br />The personal allowance and basic rate band threshold are still frozen at their 2021/22 levels and, subject to the outcome of the next general election, are expected to remain at such until 5 April 2028. As earnings increase, individuals will move into higher tax bands. This is often referred to as ‘fiscal drag’ because it will raise more tax without the government increasing income tax rates.<br /><br />The tax-free personal allowance of £12,570 continues to be partially and then fully withdrawn for higher earners, with £1 of personal allowance lost for every £2 of adjusted net income over £100,000.<br /><br /><u>Income tax rates and allowances for 2024/25</u><br />Held at their 2023/24 levels, the following income tax rates will apply to taxable income, after the personal allowance has been utilised.</span><div><span style="font-family: arial;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_xuoz331AVBo17ABZmiMcxISU7o5qJSHtQYxY7Rs3VnZV3XQ-Bm7GhjUvdx4VYi3RIzpZnIfMPbyJXPCCwPprKxjWr1A8zV6HlcNzu_mt7fgiROJoIlzjxH8E0Nt-aCfBSAAqyVphmC28qWrexxe01CugvwEp0ds7_ba1Of3sSarnBH8jbIYX1ISSRDUo/s348/Screenshot%202023-11-24%20at%2010.39.07.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="347" data-original-width="348" height="319" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh_xuoz331AVBo17ABZmiMcxISU7o5qJSHtQYxY7Rs3VnZV3XQ-Bm7GhjUvdx4VYi3RIzpZnIfMPbyJXPCCwPprKxjWr1A8zV6HlcNzu_mt7fgiROJoIlzjxH8E0Nt-aCfBSAAqyVphmC28qWrexxe01CugvwEp0ds7_ba1Of3sSarnBH8jbIYX1ISSRDUo/s320/Screenshot%202023-11-24%20at%2010.39.07.png" width="320" /></a></div><br /><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br /><u>Other allowances </u><br />Savings income continues to benefit from a 0% personal savings allowance of £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.<br />Dividend income attracts a 0% dividend allowance of £500 in 2024/25, down from the £1,000 allowance seen in 2023/24.<br /><br /><u>Scotland </u><br />Individuals living in Scotland and classed as Scottish taxpayers are also entitled to the personal allowance of up to £12,570 but have a slightly different banding system for ‘earned income’ as follows:</span></div><div><span style="font-family: arial;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSO2PjcviLR_A-osdzSOQ5F4awz0GFAF-EiPEBcJTrk2JC65c0kgb8sX5xRtfb90nAxDZ4fIv0tVIyO9Vg15g-8bB9jCBiLluVf1uwLA6fxi-0d855EAw7PEP9wmq_lcoC854RiwRYOo0cjRStzyu3pty2ZU4OFX1HuZ3TQAr6EOka-wL_YASl7ofLt8bb/s312/Screenshot%202023-11-24%20at%2010.39.48.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="312" data-original-width="231" height="312" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSO2PjcviLR_A-osdzSOQ5F4awz0GFAF-EiPEBcJTrk2JC65c0kgb8sX5xRtfb90nAxDZ4fIv0tVIyO9Vg15g-8bB9jCBiLluVf1uwLA6fxi-0d855EAw7PEP9wmq_lcoC854RiwRYOo0cjRStzyu3pty2ZU4OFX1HuZ3TQAr6EOka-wL_YASl7ofLt8bb/s1600/Screenshot%202023-11-24%20at%2010.39.48.png" width="231" /></a></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><br /><span style="font-family: arial;"><br /></span></div><div><span style="font-family: arial;"><br />The application of income tax to savings and dividends income is the same as for taxpayers based elsewhere in the UK.<br />The Scottish Budget, in which rates and bands for 2024/25 are expected to be announced, is set to take place on 19 December 2023.<br /><br /><u>Tax Efficient Savings</u><br />The annual limits for Individual Savings Accounts (ISAs), Child Trust Funds and the Junior ISA remain at £20,000, £9,000 and £9,000 respectively in 2024/25. The lifetime ISA annual subscription limit also remains unchanged at £4,000 (excluding the government top-up bonus).<br /><br />The government is making changes to simplify ISAs and provide more choice, meaning it will be easier to choose the best ISA accounts and move money between them. This involves digitalising the ISA reporting system to make it more effective, as well as expanding the investment opportunities available in ISAs.<br /><br /><u>Pension tax relief</u><br />Annual allowances determine the maximum amount that an individual can save into their pension pots in a tax year before tax relief starts to be withdrawn by way of pension tax charges.<br /><br />These allowances will remain fixed in 2024/25 at their 2023/24 rates, being the £60,000 annual allowance applicable in most circumstances and the £10,000 money purchase annual allowance for those who have flexibly accessed their pension pot. The annual allowance is reduced for those with a high income of more than £260,000.</span><h1><span style="font-family: arial;">PENSION REFORM</span></h1><span style="font-family: arial;"> The government has announced a comprehensive package of pension reforms that aim to provide better outcomes for savers, drive a more consolidated pensions market and enable pension funds to invest in a diverse portfolio.<br />With people (especially younger generations) changing jobs more frequently than used to be the case, the government wants to tackle the long-standing problem of “small pot” pensions that accumulate with each short to medium term employment. There will be a call for evidence on a ‘lifetime provider model’ which would allow individuals to have contributions paid into their existing pension scheme when they change employer, providing greater agency and control over their pension.</span><h1><span style="font-family: arial;">CAPITAL GAINS TAX</span></h1><span style="font-family: arial;"> The capital gains tax annual exemption is set to drop to £3,000 in 2024/25, down from £6,000 in 2023/24. This change will mean that those selling capital assets such as property or shares will pay more tax, where the new lower annual exemption is exceeded. Capital gains tax rates range from 10% to 28% in 2023/24, depending on the tax status of the seller and the type of asset sold.<br />If you are planning any capital disposals, please contact us to discuss the best strategy for the disposal.</span><h1><span style="font-family: arial;">INHERITANCE TAX</span></h1><span style="font-family: arial;"> The inheritance tax nil rate band continues to be frozen at £325,000 until April 2028. The residence nil rate band will also remain at £175,000 and the residence nil rate band taper will continue to start at £2million. Despite prior rumours to the contrary, there has been no change to inheritance tax rates.</span><h1><span style="font-family: arial;">CORPORATE TAXES</span></h1> <span style="font-family: arial;"><u>Rates from 1 April 2024</u><br />From 1 April 2024, the rate of Corporation Tax will continue to be 25% if a company’s profits exceed £250,000 a year. The small profits rate of 19% will apply where profits are no more than £50,000 a year.<br /><br />Where a company’s profits fall between £50,000 and £250,000 a year, the profits are taxed at the higher 25% rate, but a ‘marginal relief’ is given to reduce the liability, with the effective rate being closer to 19% the closer profits are to £50,000.<br /><br />Companies in the same corporate group (or otherwise connected by association) must share the £50,000 and £250,000 thresholds between them, making the 25% rate more likely to apply. A similar rule applies to the £1.5million threshold which, if exceeded, means that companies are required to pay their corporation tax earlier and in instalments.<br /><br /><u>Research & Development (R&D) Reliefs</u><br />For company accounting periods commencing on or after 1 April 2024, a new R&D scheme for limited companies will come into effect, merging the current R&D Expenditure Credit (RDEC) scheme (for larger companies) with the Small and Medium Enterprise (SME) scheme. There will also be a second new R&D scheme for ‘R&D intensive SMEs’.<br /><br />These are significant changes and come on top of a raft of changes already seen in 2023. HMRC say that further action may still be needed to reduce the unacceptably high levels of non-compliance with tax rules in the R&D sector.<br /><br />Within the new rules there are new provisions in relation to:</span><ul><li><span style="font-family: arial;">Who can claim relief when companies contract out R&D activities;</span></li><li><span style="font-family: arial;">The definition of qualifying expenditure, taking into account whether the R&D has been undertaken in the UK,</span></li><li><span style="font-family: arial;">The qualifying criteria for ‘R&D intensive’ companies, along with a new approach for companies who many fluctuate in and out of the status; and</span></li><li><span style="font-family: arial;">Restrictions on nominations and assignments of R&D relief payments.</span></li></ul><span style="font-family: arial;"> Any company claiming (or considering claiming) R&D reliefs will need enhanced support to both ensure compliance and to adopt the new rules and framework. Please do get in touch if we can assist you with this.<br /><br /><u>Creative Industries</u><br />Film, TV and video games tax reliefs will be reformed into refundable expenditure credits. In particular, an Audio-Visual Expenditure Credit (AVEC) for film and TV programmes and a Video Games Expenditure Credit (VGEC) for video games. The credits will be available from 1 January 2024.<br /><br /><u>Annual Tax on Enveloped Dwellings (ATED)</u><br />The ATED annual charges will rise by 6.7% from 1 April 2024 in line with the September 2023 CPI.</span><h1><span style="font-family: arial;">EMPLOYMENT TAXES</span></h1> <span style="font-family: arial;"><u>National Insurance Contributions (NICs)</u><br />Like the main income tax bandings, employer and employee NIC thresholds are now also frozen until 5 April 2028. This broadly means that, in 2024/25, employers’ NIC will continue to apply at 13.8% to earnings in excess of £9,100 a year (£175 per week) and employees will pay at the reduced 10% rate on earnings between £12,570 and £50,270 and 2% thereafter.<br /><br />For eligible employers, the employment allowance remains at £5,000 per year, reducing their employer’s NIC liability by this sum. Eligible employers should remember to opt in on their payroll software to ensure that the allowance is received.<br /><br /><u>Company Cars and Other Benefits</u><br />Employees are required to pay income tax on certain non-cash benefits. For example, the provision of a company car constitutes a taxable ‘benefit in kind’. Employers also pay Class 1A NIC at 13.8% on the value of benefits.<br /><br />The set percentages used to calculate company car benefits are fixed until 5 April 2026 before slight increases apply to most car types, including electronic and ultra-low emission, from 6 April 2026.<br /><br />The figures used to calculate benefits-in-kind on employer-provided vans, van fuel (for private journeys in company vans), and car fuel (for private journeys in company cars) remain fixed at their 2023/24 levels in 2024/25. These are:</span><ul><li><span style="font-family: arial;">Van benefit £3,960</span></li><li><span style="font-family: arial;">Van fuel benefit £757</span></li><li><span style="font-family: arial;">Car fuel benefit multiplier £27,800</span></li></ul> <span style="font-family: arial;"><u>PAYE and Tax Returns</u><br />For individuals with income taxed only through PAYE, they currently only need to file a self-assessment tax return if their income exceeds £150,000. From 2024/25 this threshold will be removed altogether, removing up to 338,000 individuals from the self-assessment system.<br /><br /><u>Off-payroll Working (IR35)</u><br />Off-payroll working rules ensure that a worker who provides services through an intermediary company to a ‘deemed employer’ pays broadly the same income tax and NIC as an employee would. The rules are complicated and apply differently depending on the size and type of the deemed employing entity.<br /><br />The new rules deal with cases where HMRC is collecting underpaid PAYE from the deemed employer and will allow them to give credit for any tax and NIC already paid by the worker and their intermediary. This is to avoid the potential over-collection of tax.</span><h1><span style="font-family: arial;">TACKLING THE TAX GAP AND COLLECTING HMRC DEBT</span></h1><span style="font-family: arial;"> The government continues to commit to a tax system that is easy for businesses and individuals to engage with, and where everyone pays their fair share. <br /><br />A ‘Tackling the Tax Gap’ package of measures has been announced, with plans to raise £5 billion of tax revenue over the next five years. The government is investing in HMRC’s ability to better target their debt collection activity, pursuing those with tax debts that can afford to pay, and providing support to those that are temporarily unable to pay. The government is also taking action against those who continue to bend or break the rules, by reducing opportunities for tax fraud in the construction industry and taking strong action against promoters of tax avoidance. Sentences for the most egregious forms of tax fraud will be doubled from 7 to 14 years.</span><h1><span style="font-family: arial;">TAX ADMINISTRATION FRAMEWORK</span></h1><span style="font-family: arial;"> New measures will be introduced to strengthen HMRC’s data gathering powers. From 2025/26:</span><ul><li><span style="font-family: arial;">Employers will be required to provide data on employee hours paid as part of their PAYE reporting; and</span></li><li><span style="font-family: arial;">Shareholders in owner-managed businesses will be required to include on their self-assessment tax return their percentage shareholding and dividend income from their company (separately to any other dividend income they may receive).</span></li></ul><span style="font-family: arial;"> These measures will build on previously announced HMRC powers that will enable them to access taxpayer data from online marketplaces (e.g. from airbnb) from 1 January 2024.</span><h1><span style="font-family: arial;">IN CONCLUSION</span></h1><span style="font-family: arial;"> As we move into 2024, there are a lot of tax changes already scheduled, plus we can expect more with a Spring Budget and a general election on the horizon.<br /><br />We are here to work alongside you and help you prosper so please do get in touch at any time.</span></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-52612330614772217902023-11-17T07:15:00.002+00:002023-11-17T07:15:12.914+00:0017th November 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>Inheritance Tax Planning Tips</strong><br />With inheritance tax receipts to HMRC set to reach new levels this financial year, now more than ever are families needing to plan for their future.<br />Inheritance tax could take a large proportion of your wealth – 40% of everything above £325,000 -and stop your family members enjoying the results of your hard work. Avoiding or reducing inheritance tax is possible if you have expert advice and plan accordingly. Below are three essentials to mitigate inheritance tax. <br /><br /><u>Talk to your family.</u><br />The first step towards a successful inheritance plan for all families is communication. Talk to your spouse, children, and stepchildren. Understand their concerns, expectations, and spot the potential conflicts. Some items may have emotional as well as purely monetary significance to some family members. That ring that has been passed down on one side of the family for years or the old picture that was part of a first home. You need to find out what items are significant to each family member, and you may need to find some compromises. They can’t all have your watch or your diamond ring. If you have children who no longer have much contact with you, you may still need to discuss your plans with them, even if it takes a special effort. One solution may be to allot each beneficiary the most appropriate sentimental item and divide up wealth equally.<br /><br /><u>Take stock of your assets</u><br />The next step in your inheritance planning journey is creating an inventory of your financial assets: your home and any other property, investments, savings, and any valuable possessions. If you have a surviving partner, they might be your first priority, but you need to look at what happens when they are gone. Your home may be the biggest challenge. It can be difficult to balance its value against other assets and giving it to one beneficiary may lead to resentment. Stipulating that it should be sold, and the proceeds shared is one answer. A shared bequest that allows one beneficiary to buy out the shares of the others is an alternative. You also need to look at the liabilities or debts that eat into your estate. You want to leave financial security and happy memories, not debts. Knowing what you have now can be the basis for devising a fair inheritance plan that takes into consideration the needs of everyone who survives you. Look at your life insurance as part of this review. It can help ensure equal inheritance for all parties. The payout from a life insurance policy can be divided among the beneficiaries, helping to balance any disparities in the value of your other assets.<br /><br /><u>Write a will</u><br />A well-crafted will is the linchpin of any inheritance plan, and for all families, it is crucial. Work with an experienced solicitor to draft a will that clearly outlines your wishes and specify the exact percentage or value that each heir, whether biological or stepchild, will inherit. This ensures that your intentions are legally binding and minimises potential disputes later on. Review and update beneficiary designations on retirement plans, investment accounts, and insurance policies. Beneficiary designations override instructions in your will. Failing to update can lead to unintended consequences – money intended to go to a current partner still being earmarked for a previous spouse is not uncommon.<br /><br />Seeking the guidance of a qualified financial adviser is vital for any family. Please talk to us about any tax related questions you may have and if you need a financial adviser.<br /> <br /><strong>Growing your business? – Just keep going!</strong><br />The Bank of England (BOE) recently held interest rates at 5.25% and warned that the restrictive policy will remain for an extended period, despite the bleak economic outlook. BOE forecasts suggest the UK will not get to the 2% inflation target until the end of 2025. They expect inflation to fall to around 5% by the end of this year. Their forecasts also predict that output will remain stagnant in 2024. The Chancellor, Jeremy Hunt, remains more optimistic and was quoted as saying that the UK economy has remained far more resilient than many expected. <br /><br />Clearly things are changing rapidly right now in this chaotic world, and it is difficult to maintain a sense of control, but the most successful people we meet “Just Keep going!”<br /><br />Growing your business is all about enthusiasm and a mindset to power on with the goal of striving for success. Below are a few thoughts to help you think ahead and focus on your business growth. <br /><br />A growth strategy starts with identifying and accessing opportunities within your market. The strategy addresses how your company is going to evolve to meet the challenges of today and in the future. A growth strategy gives your company purpose, and it answers questions about your long-term plans.<br />Having a growth strategy is important because it keeps your company working towards goals that go beyond what is happening in the market today. They keep both owners and employees focused and aligned, and they allow you to think long-term.<br /><br />The first step is to look at five important areas that will help you develop a growth strategy:</span><ol><li><span style="font-family: arial;">Think long term – invest time in understanding where the market is going and what this means for your customers. Short term decisions do not help grow a business.</span></li><li><span style="font-family: arial;">Having a good value proposition is essential – this states the relevance of your product or service, what it does, and why customers need it. What is yours? </span></li><li><span style="font-family: arial;">Expanding your reach – who is your target customer and what do you need to do to let them know you exist and that your product or service is relevant to them?</span></li><li><span style="font-family: arial;">Growth means new people, systems, and (maybe) different ways of doing things. Grow at a pace you can manage.</span></li><li><span style="font-family: arial;">How will your marketing get your value proposition to relevant customers?</span></li></ol><span style="font-family: arial;"> Once you have taken some time to write out your growth strategy and where you want your business to be in (say) 2 years, the next step is to work out your marketing plan.<br /><br />A marketing plan is a business document outlining your marketing strategy and tactics. It is often focused on a specific period of time (i.e., over the next 12 months) and covers a variety of marketing-related details, such as costs, goals, and action steps. But like your business plan, a marketing plan is not a static document. It should outline:</span><ol><li><span style="font-family: arial;">How you are going to keep existing customers happy and returning to buy more often;</span></li><li><span style="font-family: arial;">What the goals are for getting new customers; and</span></li><li><span style="font-family: arial;">The marketing methods you are going to use to achieve 1 and 2.</span></li></ol> <span style="font-family: arial;"><u>Please talk to us about helping you formulate your expansion plans; we have considerable experience in helping our clients grow their businesses.</u><br /> <br /><strong>Tools available to help SMEs tackle cyber security issues</strong><br />The National Cyber Security Centre (NCSC) has several online tools for small organisations to help find and fix any cyber security issues.<br />The NCSC unveiled the services to coincide with the latest phase of its <a data-cke-saved-href="https://www.ncsc.gov.uk/cyberaware" href="https://www.ncsc.gov.uk/cyberaware" target="_blank" title="Find out about the Cyber Aware initiative">Cyber Aware</a> campaign, which is aiming to raise awareness of cyber security among the UK's small businesses, microbusinesses, other organisations, and sole traders.<br /><br />With official statistics showing that more than a third of small businesses suffered a cyber-attack last year, the NCSC urged them to make use of their Cyber Action Plan and Check Your Cyber Security tools.<br /> <br />The <a data-cke-saved-href="https://www.ncsc.gov.uk/cyberaware/actionplan" href="https://www.ncsc.gov.uk/cyberaware/actionplan" target="_blank" title="Complete the NCSC's Cyber Action plan">Cyber Action Plan</a> can be completed online in under five minutes and results in tailored advice for businesses on how they can improve their cyber security.<br /><br /><a data-cke-saved-href="https://checkcybersecurity.service.ncsc.gov.uk/" href="https://checkcybersecurity.service.ncsc.gov.uk/" target="_blank" title="Use the Check your Cyber Security tool from the NCSC">Check your Cyber Security</a> – which is accessible via the Action Plan – can be used by any small organisation including schools and charities and enables non-tech users to identify and fix cyber security issues within their businesses.<br /><br />Small businesses are a common target for cyber criminals, with the government's last <a data-cke-saved-href="https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2022" href="https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2022" target="_blank" title="Cyber security breaches survey 2022">cyber breaches survey</a> revealing that 38% of the UK's small businesses suffered a cyber incident over a 12-month period.<br /><br />The range of attacks can vary widely, from business email compromise to denial of service and ransomware attacks.<br /><br />See: <a data-cke-saved-href="https://www.ncsc.gov.uk/section/active-cyber-defence/introduction" href="https://www.ncsc.gov.uk/section/active-cyber-defence/introduction">Introduction - NCSC.GOV.UK</a><br /> <br /><strong>Can you create more “productive “time? </strong><br />For many small business owners, if they have one consistent issue, it would be that there is simply not enough time in the day to achieve all the things that need to be done.<br /> <br />Have you ever got to the end of the day, having worked your “socks off” for the entire day, and asked the question “what on earth have I done today?” If the answer is yes, then the next question is “how many days per week do you get this feeling?”<br /><br />So, what can you do, in an office environment for example, to free up some time for productive and focussed activities?<br /><br /><u>Do Not Disturb (DND)!</u><br />By far, the simplest technique to create time is to ensure that you set time aside for you to carry out the tasks on your “To Do List”.<br />We have all heard employees announce, “I have so much to do; I am working from home tomorrow”. This is an example of putting yourself into a DND mode to allow you to complete tasks that are on your “To Do List”.<br /><br />Why is this so? - All too often, we come into our business premises with list of tasks that we intend to complete. The telephone rings, customers and suppliers want time, fellow employees come into your office also seeking your time, and emails and correspondence continues to flow onto your desk – Is this a familiar feeling?<br /><br />If you meet with your team and agree with them that this is the case for many of them, then it makes sense to agree to do something about it.<br /><br />The recommendation is to switch the office into a DND mode for typically 1 to 2 hours every day.<br /><br />The DND mode includes no external telephone calls coming through to employees, no internal telephone calls, no disturbing employees internally and a discipline to switch off emails other than for those relevant for the “To Do List” of the individual employee. Many businesses rotate their DND time amongst their employees.<br /><br />The net result of this is that people get more of a sense of achievement at the end of a day, and this often results in a feeling of satisfaction and far less stress.<br /><br /><u>Here are some other “time saving” techniques that might work in your business: </u></span><ul><li><span style="font-family: arial;">If you have ever found yourself thinking “it is easier to do it myself”, then maybe try and discipline yourself not to do so and delegate (and if necessary, train) where at all possible. There is a fine line between delegation and abdication – supervision is required when one delegates, and feedback is helpful so you can keep control of the process.</span></li><li><span style="font-family: arial;">If you have asked somebody to do something, there has to be an assumption that this will done be unless you have been told otherwise. It is a mistake to allow anybody not to tell you if they can’t do something that has been agreed to be done. This may sound obvious, but the research is quite clear; there are too many occasions where things just simply do not get done despite requests and therefore failings, and it can be very time consuming to redeem the position.</span></li></ul><ul><li><span style="font-family: arial;">We all receive too many emails and the methodology that may work for some employees is to have emails sent to another supporting source, whose job it is to read all emails with the following three outcomes:</span><ul><li><span style="font-family: arial;">Delete emails because they are not relevant;</span></li><li><span style="font-family: arial;">Forward onto the relevant employee with the words “Please read but no action required”; or</span></li><li><span style="font-family: arial;">Forward onto the relevant employee with the words “Please read - action required”.</span></li></ul></li><li><span style="font-family: arial;">The “One touch” only rule – in the ideal world the best efficiencies come from reading an email or letter once and dealing and responding directly to the customer. To have to re-read is generally considered inefficient.</span></li></ul><ul><li><span style="font-family: arial;">Don’t laugh, but if you have a chair in or around your desk, people will sit in it! If people sit in a chair, the discussion will take longer than if they are standing. So, do you want to have a chair for people near your desk?</span></li></ul><span style="font-family: arial;"> By adopting some or all of the ideas listed above, you, as an employer, could create an additional amount of productive time which may also improve employee confidence.<br /> <br /><strong>Future-proofing the UK’s Artificial Intelligence (AI) skills base</strong><br />The UK government is attempting to future-proof the AI skills base with funding to foster skills, including postgraduate research centres and scholarships.<br />Because of the pace of change in AI development, it is considered important that the UK cultivates the top AI research talent to drive progress in crucial areas like AI safety, and to ensure the whole country can feel any gains that AI will unlock.<br /><br />The UK government states, “This will ensure the country has the top global expertise and fosters the next generation of researchers needed to seize the transformational benefits of this technology.<br /><br />This includes naming, for the first time, the further 12 Centres for Doctoral Training in AI that will benefit from £117 million in previously announced government backing through UK Research and Innovation (UKRI), while a new visa scheme will make it easier for the most innovative businesses to bring talented AI researchers in their early careers, to the UK.<br /><br />This is on top of funding for 15 science and technology scholarships at some of the UK’s universities, a £1 million grants scheme to help top AI talent relocate to the UK, and the pilot of a new STEM Olympiad scholarship scheme ‘Backing Invisible Geniuses’. It builds on a further £8.1 million recently announced, for postgraduate course scholarships in AI and data science”.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/britain-to-be-made-ai-match-fit-with-118-million-skills-package" href="https://www.gov.uk/government/news/britain-to-be-made-ai-match-fit-with-118-million-skills-package">Britain to be made AI match-fit with £118 million skills package - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Freight Innovation Fund Accelerator 2024</strong><br />The Department for Transport (DfT,) through Connected Places Catapult, has opened applications for the Freight Innovation Fund Accelerator 2024, a multi-faceted programme which will accelerate the adoption of commercially ready solutions into the sector.<br />The Accelerator will support up to 10 small and medium-sized enterprises (SMEs) to trial their solutions in real-world environments to help solve pressing challenges within the freight sector. The SMEs will be selected by DfT and Connected Places Catapult to join a 6-month programme, where each of them can access up to £150,000 of grant funding to trial their solutions.<br /><br />SMEs have two options when applying to the programme:<br /><br /><u>Apply to be matched with an industry partner</u><br />Connected Places Catapult will work with industry partners, who will provide access to testing environments and internal expertise. They will also play an active role in the SME selection as part of the due diligence process.<br /><br />The industry partners supporting the accelerator programme are Maritime Transport, Freightliner, Wincanton, FedEx Express, Portsmouth International Port, and Port of Tyne.<br /><br /><u>Apply with your own Industry Partner</u><br />Applications are welcomed from SMEs who already have a partner they wish to trial their solutions with and can offer access to testbed facilities.<br />Applications are open until Sunday 26 November 2023.<br /><br />See: <a data-cke-saved-href="https://cp.catapult.org.uk/opportunity/freight-innovation-fund-accelerator-2024/" href="https://cp.catapult.org.uk/opportunity/freight-innovation-fund-accelerator-2024/">Freight Innovation Fund Accelerator 2024 - Connected Places Catapult</a><br /> <br /><strong>Zero emission HGV and coach infrastructure consultation</strong><br />The UK government is seeking information to inform them on the development of a strategy for zero emission heavy goods vehicle (HGV) and coach infrastructure.<br /><br />It seeks information about:</span><ul><li><span style="font-family: arial;">the current and future supply, uptake, and use of zero emission HGVs and coaches across the United Kingdom; and</span></li><li><span style="font-family: arial;">their refuelling and recharging requirements.</span></li></ul><span style="font-family: arial;"> Views are sought from persons or organisations with an interest in the manufacture or use of zero emission HGVs and coaches, and their associated infrastructure. The aims are to gather evidence:</span><ul><li><span style="font-family: arial;">to support the development of a zero emission HGV and coach infrastructure strategy for the UK;</span></li><li><span style="font-family: arial;">regarding the zero emission HGV and coach markets in the UK, including its infrastructure, both public and private (for example, depot-based); and</span></li><li><span style="font-family: arial;">to inform future decision-making about zero emission HGVs and coaches.</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://www.gov.uk/government/calls-for-evidence/infrastructure-for-zero-emission-heavy-goods-vehicles-and-coaches/infrastructure-for-zero-emission-heavy-goods-vehicles-and-coaches" href="https://www.gov.uk/government/calls-for-evidence/infrastructure-for-zero-emission-heavy-goods-vehicles-and-coaches/infrastructure-for-zero-emission-heavy-goods-vehicles-and-coaches">Infrastructure for zero emission heavy goods vehicles and coaches - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Expert regional innovation hubs given £75 million boost to local research, businesses, and economies across UK</strong><br />Regional clusters of innovation across the UK are being backed by a share of £75 million that will enhance local economies and pioneer game-changing solutions from healthcare to net zero.<br /><br />Following pilots in Liverpool and Teesside, launched earlier this year, a further 8 Launchpads, facilitated by Innovate UK, will be rolled out across every nation of the UK. These initiatives will build on existing clusters of high-tech innovation in each region, such as renewable energy in Southwest Wales,<br />Agri-tech in East Anglia, and digital health in Yorkshire. <br /><br />Launchpads is a programme that supports emerging clusters of small and medium-sized enterprises (SMEs) by providing each Launchpad up to £7.5 million from Innovate UK to fund innovation projects led by local businesses.<br /><br />The £7.5 million bespoke funding from each Launchpad will allow SMEs in each region to bid for support that is tailored to the unique needs of each business cluster, helping them drive innovation, expand operations, and boost their local economies.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/expert-regional-innovation-hubs-given-75-million-boost-to-local-research-businesses-and-economies-across-uk" href="https://www.gov.uk/government/news/expert-regional-innovation-hubs-given-75-million-boost-to-local-research-businesses-and-economies-across-uk">Expert regional innovation hubs given £75 million boost to local research, businesses and economies across UK - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Fairness Innovation Challenge</strong><br />UK registered organisations can apply for a share of up to £400,000 for projects resulting in new solutions to address bias and discrimination in AI systems. This funding is from the Centre for Data Ethics and Innovation (CDEI).<br /><br />The competition closes on Wednesday 13 December 2023.<br /><br />Innovate UK will work with the <a data-cke-saved-href="https://www.gov.uk/government/organisations/centre-for-data-ethics-and-innovation" href="https://www.gov.uk/government/organisations/centre-for-data-ethics-and-innovation">Centre for Data Ethics and Innovation</a> (CDEI), part of the Department for Science Innovation and Technology (DSIT), to invest up to £400,000 in innovation projects.<br /><br />The aim of this competition is to drive the development of novel solutions to address bias and discrimination in artificial intelligence (AI) systems.<br /><br />The objectives are to:</span><ul><li><span style="font-family: arial;">encourage the development of socio-technical approaches to fairness;</span></li><li><span style="font-family: arial;">test how strategies to address bias and discrimination in AI systems can comply with relevant regulation including the <a data-cke-saved-href="https://www.legislation.gov.uk/ukpga/2010/15/contents" href="https://www.legislation.gov.uk/ukpga/2010/15/contents">Equality Act 2010</a>, the UK General Data Protection Regulation (GDPR) and the <a data-cke-saved-href="https://www.legislation.gov.uk/ukpga/2018/12/contents/enacted" href="https://www.legislation.gov.uk/ukpga/2018/12/contents/enacted">Data Protection Act 2018</a>; and</span></li><li><span style="font-family: arial;">provide greater clarity about how different assurance techniques can be applied in practice.</span></li></ul><span style="font-family: arial;"> Your proposal must address bias and discrimination in one of the following use cases:</span><ul><li><span style="font-family: arial;">provided healthcare use case, or</span></li><li><span style="font-family: arial;">open use case.</span></li></ul><span style="font-family: arial;"> Your proposed solution must adopt a socio-technical approach to fairness, seeking to address not only statistical, but also human and structural biases associated with the AI system in question.<br /><br />In applying to this competition, you are entering into a competitive process.<br /><br />See: <a data-cke-saved-href="https://apply-for-innovation-funding.service.gov.uk/competition/1732/overview/c9153422-dbfd-4bc1-99a5-aed7e99dc91a" href="https://apply-for-innovation-funding.service.gov.uk/competition/1732/overview/c9153422-dbfd-4bc1-99a5-aed7e99dc91a">Competition overview - Fairness Innovation Challenge - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)</a><br /> <br /><strong>Shake up to procurement regulations </strong><br />New procurement rules have become law, following the Royal Assent of the Procurement Act.<br /><br />The new rules are one of the largest shake ups to procurement rules in this country’s history.<br /><br />The Act establishes a new public procurement regime following the UK’s exit from the EU and aims to create a simpler and more transparent system that delivers better value for money, reducing costs for business and the public sector.<br /><br />The new regime will deliver simpler, more effective public sector procurement, and help small and medium-sized enterprises (SMEs) secure a greater share of approximately £300bn of expenditure per year. <br /><br />The new rules will aim to protect against national security risks in public contracts.<br /><br />Significant new powers will enable high-risk suppliers to be put on a public debarment list and be prevented from bidding for some categories of goods or services, such as areas related to defence and national security, while allowing them to continue to bid for contracts in non-sensitive areas. <br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/small-businesses-to-benefit-from-one-of-the-largest-shake-ups-to-procurement-regulations-in-uk-history" href="https://www.gov.uk/government/news/small-businesses-to-benefit-from-one-of-the-largest-shake-ups-to-procurement-regulations-in-uk-history">Small businesses to benefit from one of the largest shake ups to procurement regulations in UK history - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-31952635323689476212023-11-10T07:18:00.004+00:002023-11-10T07:18:23.583+00:0010th November 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;"><br />Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>How much is my business really worth?</strong><br />This is a question many business owners want answering. The truth is, it depends on a range of factors and any valuation is only useful as a guide for planning forward. The ultimate value of a business is the price a willing buyer is prepared to pay for it.<br /><br />The prevailing economic climate and state of the business’ sector can affect company valuation for better or worse, as can your reasons for selling. If you need a fast sale due to ill health, for instance, the value may be lower than if a sale was taking place under more favourable circumstances.<br /><u><br />Valuing a business is a complex process and we can support you throughout. </u><br />So, what are the most common methods of valuing a business?<br /><u><br />Price to earnings ratio (P/E)</u><br />The price to earnings ratio uses multiples of profit, so may be an appropriate valuation method if you own a well-established business with a good track record of profits. ‘Price’ refers to the company’s current share price, and ‘earnings’ to the earnings per share (EPS). The P/E ratio indicates the business’s expected growth in earnings per share in the future.<br /><u><br />Discounted cash flow</u><br />Discounted cash flow relies on estimating future cash flows for the company, and a residual business value, and may be suited to businesses with few assets.<br /><u><br />Entry cost</u><br />Entry cost valuation involves calculating how much it would cost to build your business to the stage that it’s reached now, including start up and recruitment costs, marketing, and the value of assets. Any savings that could have been made should then be deducted to arrive at the valuation.<br /><u><br />Asset valuation</u><br />The asset valuation method may be suitable if your business is well established and owns high levels of tangible assets. The Net Book Value (NBV) of assets is calculated, and then adjusted to take account of external factors such as depreciation and inflation.<br /><u><br />Valuation based on industry</u><br />Some businesses are valued based on the industry in which they operate. The retail industry is one such example, where the number of outlets is an essential element for consideration. Industry ‘rules of thumb’ use factors specific to an industry and can provide a more accurate calculation in some cases.<br /><u><br />Other considerations when valuing your business</u><br />Intangible assets are a key factor when valuing a business. Intellectual property, goodwill, business reputation, and even a premium business location, can all add considerable value in the eyes of potential purchasers.<br /><br />Spotlighting these intangible assets also allows you to improve their value where appropriate – for example, registering ownership of a trademark or patent, building up their reputation even further, or improving the condition of premises.<br /><u><br />Please talk to us about valuing your business as this can lead to a range of important considerations and actions. </u><br /> <br /><strong>Self-Assessment – less than 90 days to go!</strong><br />There are less than 90 days to go until the deadline for filing your Self-Assessment return online.<br /><br />You need to file your return by 31 January 2024. Filing your return early is an option and means you can find out how much you owe and help you budget and plan for your payment. If you are due a refund, you can claim it back sooner.<br /><br />If we’ve already sent HMRC your return and you’ve paid, you don’t need to do anything else. <br /><u><br />If you need assistance in completing your tax return please contact us ahead of the deadline and we will do our best to make sure it’s accurate and filed on time.</u><br /> <br /><strong>Tax-Free Childcare costs </strong><br />HM Revenue and Customs (HMRC) is reminding working families to give their childcare budget a boost by opening a Tax-Free Childcare account.<br /> <br />Parents can use Tax-Free Childcare to help with childcare costs for school holiday clubs, breakfast or after school clubs, childminders or nurseries.<br /><br />You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year).<br /><br />If you get Tax-Free Childcare, you will have to set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider.<br /><br />You can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.<br /><br />You can use it to pay for <a data-cke-saved-href="https://www.gov.uk/help-with-childcare-costs" href="https://www.gov.uk/help-with-childcare-costs">approved childcare</a>, for example:<br /></span><ul><li><span style="font-family: arial;">childminders, nurseries and nannies; and</span></li><li><span style="font-family: arial;">after school clubs and play schemes.</span></li></ul><span style="font-family: arial;">Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare. Check with your provider to see if they’re signed up.<br /><u><br />If your child is disabled</u><br />You can use the extra Tax-Free Childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child, such as mobility aids. Talk to them about what equipment your child can get.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/save-up-to-2000-a-year-on-childcare-costs-for-your-little-pumpkins" href="https://www.gov.uk/government/news/save-up-to-2000-a-year-on-childcare-costs-for-your-little-pumpkins">Save up to £2,000 a year on childcare costs for your little pumpkins - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Funding for digital supply chain innovation</strong><br />Up to £100,000 is available for tech solution providers to address critical supply chain challenges across textiles, farming, hydrogen, food and automotive sectors.<br /><br />The <a data-cke-saved-href="https://digitalsupplychainhub.uk/" href="https://digitalsupplychainhub.uk/" target="_blank" title="Programme working to advance inclusion of digital technology in UK supply chains">Made Smarter Innovation | Digital Supply Chain Hub</a> (DSCH) is inviting expressions of interest from businesses interested in developing and deploying digital technology solutions in the DSCH testbeds.<br /><br />A supply chain testbed can be defined as an end-to-end supply chain environment, where technologies can be deployed and tested using real data but without risking business disruption.<br /><br />Together with the testbed companies, the DSCH has identified seven potential challenge areas:<br /></span><ul><li><span style="font-family: arial;">standardised naming system for automotive spare parts;</span></li><li><span style="font-family: arial;">project finance and market modelling in the emerging hydrogen supply chain;</span></li><li><span style="font-family: arial;">digital product passport for the textile supply chain;</span></li><li><span style="font-family: arial;">connected life cycle assessment in the textile supply chain;</span></li><li><span style="font-family: arial;">logistics pricing engine in the textile supply chain;</span></li><li><span style="font-family: arial;">data driven best before date in the food supply chain; and</span></li><li><span style="font-family: arial;">a marketplace for investment in sustainable farming.</span></li></ul><span style="font-family: arial;">Each challenge comes with £100,000 available for a tech solution provider to work with an Industry Challenge Sponsor to address critical supply-chain challenges and develop a solution which will be deployed into one of the testbeds.<br /><br />See: <a data-cke-saved-href="https://digitalsupplychainhub.uk/get-involved/unlock-funding-for-digital-supply-chain-innovation-expression-of-interest/" href="https://digitalsupplychainhub.uk/get-involved/unlock-funding-for-digital-supply-chain-innovation-expression-of-interest/">Unlock Funding for Digital Supply Chain Innovation - Expression of Interest - Made Smarter Digital Supply Chain Hub - Virtual Hub</a><br /> <br /><strong>How can digital marketing help your business?</strong><br />There are numerous benefits to businesses, enabling you to thrive in the digital age and stay ahead of the competition. Let's explore some of the ways digital marketing can help you.<br /><u><br />Cost-Effective Marketing</u>: Compared to traditional marketing methods, digital marketing is often more cost-effective. Online advertising, email, and content marketing campaigns can be tailored to fit various budgets, making it accessible for businesses of all sizes.<br /><u><br />Content Marketing</u>: Creating valuable content such as blog posts, eBooks, and webinars can establish you as the expert in your field.<br /><u><br />Enhanced Online Visibility</u>: Strategies such as search engine optimisation (SEO) and pay-per-click advertising (PPC) can improve your online visibility.<br /><u><br />Targeted Marketing</u>: You can target specific demographics and audiences. Through techniques like audience segmentation, you can tailor your marketing efforts to reach the most relevant prospects, ensuring your messages resonate with the right people.<br /><u><br />Lead Generation</u>: You may be able to create free content such as guides and landing pages. Email capture forms can help capture contact information from interested prospects.<br /><u><br />Customer Engagement:</u> Social media platforms and email marketing enable accounting firms to engage with existing clients and keep them informed about important updates, changes in tax laws, and new services.<br /><u><br />Data Analytics</u>: Viewing the data and results on any activity allows for continuous improvement and refinement of marketing strategies. Using tools such as Google Analytics can help you measure the effectiveness of marketing campaigns, track website traffic, and gather insights.<br /><u><br />Competitive Advantage</u>: If you embrace the digital landscape, you're more likely to stay relevant and attract tech-savvy clients (and staff).<br /><u><br />Setting the right goals is crucial for success!</u><br />Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Consider objectives like increasing website traffic, generating a certain number of leads, or growing your social media following. Your goals should be aligned with your business’s overall objectives and customer needs. <br /><br />Regularly track and analyse your progress using key performance indicators (KPIs) to make data-driven adjustments.<br /><u><br />Our most profitable clients spend time on their marketing strategy. If you haven’t got a marketing plan, please ask us for a template! </u><br /> <br /><strong>Can you lower your energy bills this winter?</strong><br />The UK Government have updated their ‘<a data-cke-saved-href="https://helpforhouseholds.campaign.gov.uk/energy-saving-advice/?_ga=2.159164607.408360913.1697619259-831208520.1671795945&_gl=1*e7b59m*_ga*ODMxMjA4NTIwLjE2NzE3OTU5NDU.*_ga_S5RQ7FTGVR*MTY5NzYzNzcyMy40ODIuMS4xNjk3NjM4NjUyLjAuMC4w" href="https://helpforhouseholds.campaign.gov.uk/energy-saving-advice/?_ga=2.159164607.408360913.1697619259-831208520.1671795945&_gl=1*e7b59m*_ga*ODMxMjA4NTIwLjE2NzE3OTU5NDU.*_ga_S5RQ7FTGVR*MTY5NzYzNzcyMy40ODIuMS4xNjk3NjM4NjUyLjAuMC4w">Help for Households</a>‘ website for 2023.<br /><br />Find out what actions you can take to get ready for winter and save money on your energy bills by reading their ‘<a data-cke-saved-href="https://www.gov.uk/government/news/families-to-cut-bills-with-energy-saving-tips-and-support-for-most-vulnerable" href="https://www.gov.uk/government/news/families-to-cut-bills-with-energy-saving-tips-and-support-for-most-vulnerable">It All Adds Up</a>’ campaign.<br /><br />The latest cost-of-living instalment of £300 is currently being paid to low-income households across the UK, without the need to make a claim.<br /><u><br />Warm Home Discount Scheme</u><br />You could get £150 off your electricity bill for winter 2023 to 2024 under the Warm Home Discount Scheme. The money is not paid to you - it’s a one-off discount applied to your electricity bill between early October 2023 and 31 March 2024.<br /><br />Find out if you’re eligible for <a data-cke-saved-href="https://www.gov.uk/the-warm-home-discount-scheme" href="https://www.gov.uk/the-warm-home-discount-scheme">Warm Home Discount Scheme: Overview - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Global Entrepreneurship Week 2023</strong><br />Global Entrepreneurship Week (GEW) is a collection of tens of thousands of events, activities and competitions each November that inspire millions to explore their potential as an entrepreneur while fostering connections with investors, researchers, policymakers and other startup champions.<br /><br />This year’s takes place from 13 November to 19 November 2023.<br /><br />See: <a data-cke-saved-href="https://www.genglobal.org/gew" href="https://www.genglobal.org/gew">Global Entrepreneurship Week | Global Entrepreneurship Network (genglobal.org)</a><br /> <br /><strong>Eureka GlobalStars Japan Round 2</strong><br />UK registered businesses can apply for a share of up to £2 million to develop innovative proposals in partnership with Japan and other participating Eureka members. The competition closes on Wednesday 31 January 2024.<br /><br />The EUREKA members confirmed as participating in this competition are:<br /></span><ul><li><span style="font-family: arial;">Canada,</span></li><li><span style="font-family: arial;">Czech Republic,</span></li><li><span style="font-family: arial;">France,</span></li><li><span style="font-family: arial;">Netherlands,</span></li><li><span style="font-family: arial;">Singapore, and</span></li><li><span style="font-family: arial;">Spain.</span></li></ul><span style="font-family: arial;">The aim of this competition is to fund business-led, collaborative research and development (CR&D) projects focused on industrial research. This competition will be for innovative proposals developed between the UK, Japan and the other participating Eureka members. Innovate UK will be funding the UK partners only.<br /><br />Your project must have high market potential and develop at least one of the following:<br /></span><ul><li><span style="font-family: arial;">innovative products,</span></li><li><span style="font-family: arial;">technology-based applications, and</span></li><li><span style="font-family: arial;">technology-based services.</span></li></ul><span style="font-family: arial;">Projects must be co-ordinated by a lead partner from the UK and a lead partner from Japan as a minimum requirement. Any additional partners from each Eureka member should also nominate a lead from that country.<br />UK participants must complete the UK application on the Innovation Funding Service (IFS) and provide all documents required by 11am UK time on the deadline stated.<br /><br />See: <a data-cke-saved-href="https://apply-for-innovation-funding.service.gov.uk/competition/1752/overview/fc1fc0f6-bb40-4dce-98e9-72a2eaff95b0" href="https://apply-for-innovation-funding.service.gov.uk/competition/1752/overview/fc1fc0f6-bb40-4dce-98e9-72a2eaff95b0">Competition overview - Eureka GlobalStars Japan Round 2 - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)</a><br /> <br /><strong>New regulation to reform waste system</strong><br />A new, simpler common-sense approach to recycling means people across England will be able to recycle the same materials, whether at home, work or school, putting an end to confusion over what can and can’t be recycled in different parts of the country.<br /><br />Weekly collections of food waste will also be introduced for most households across England by 2026. The government is proposing new exemptions to make sure that waste collectors will be able to collect dry recyclables together, in the same bin or bag, and collect organic waste together, to reduce the number of bins required. <br /><br />The government states that the new plans for simpler recycling will make sure that households will not need an excessive number of bins. The reforms will bring in a more convenient and practical system which prevents councils from being hit with extra complexity, while making sure all local authorities collect the required recyclable waste streams: glass, metal, plastic, paper and card, food waste, and garden waste.<br /><br />This means manufacturers can design packaging and know it can be recycled across the nation, ensuring there is more recycled material in the products we buy and allowing the UK recycling industry to grow.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/simpler-recycling-collections-and-tougher-regulation-to-reform-waste-system" href="https://www.gov.uk/government/news/simpler-recycling-collections-and-tougher-regulation-to-reform-waste-system">Simpler recycling collections and tougher regulation to reform waste system - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-83160308676315571032023-11-03T06:55:00.002+00:002023-11-03T06:55:08.318+00:003rd Novemeber 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>Do you have a side hustle?</strong></span><div><span style="font-family: arial;"><b><br /></b>If have a side hustle then you are probably aware of the requirement to disclose this on your Self-Assessment tax return. It is important to record any side hustle income accurately and HMRC is going to be able to see exactly how much income you receive when using a digital platform from 1 January 2024.<br /><br />HMRC have new powers which means that anyone in the UK who makes money selling goods or services online will have their incomes recorded on the digital platform that they use and HMRC will have direct access to this.<br /><br />Digital platforms include apps and websites which facilitate the provision of goods and services such as the provision of taxi and private hire services, food delivery services, freelance work, and the letting of short-term accommodation.<br /><br />HMRC will have access to the digital records of businesses such as Airbnb, Fiverr, Upwork, Uber, Deliveroo, Etsy and other online businesses. The change is part of a wider plan for HMRC to keep a more accurate eye on people adding to their existing income through side profits or freelancing and they will be checking tax returns to ensure the figures tally with the records from the platforms themselves.<br /><br />The power to enable these regulations to be made was introduced under section 349 of the Finance (No.2) Act 2023.<br /><br />From 1 January 2025, certain UK digital platforms will be required to report information to HMRC about the income of sellers of goods and services on their platform. HMRC will then exchange the information with the other participating tax authorities for the jurisdictions where the sellers are tax resident.<br /><br />Under the Organisation for Economic Co-operation and Development (OECD) rules, digital platforms in participating jurisdictions will be required to provide a copy of the information to the taxpayer to help them comply with their tax obligations.<br /><br />The legislation, ‘The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023’, as issued in July 2023, can be seen here: <a data-cke-saved-href="https://www.legislation.gov.uk/uksi/2023/817/made" href="https://www.legislation.gov.uk/uksi/2023/817/made">The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023 (legislation.gov.uk)</a> and the reporting rules for digital platforms can be seen here: <a data-cke-saved-href="https://www.gov.uk/government/publications/reporting-rules-for-digital-platforms/reporting-rules-for-digital-platforms" href="https://www.gov.uk/government/publications/reporting-rules-for-digital-platforms/reporting-rules-for-digital-platforms">Reporting rules for digital platforms - GOV.UK (www.gov.uk)</a><br /><br />If you are not currently filing a tax return then you can check how to register for Self-Assessment here: <a data-cke-saved-href="https://www.gov.uk/register-for-self-assessment" href="https://www.gov.uk/register-for-self-assessment">Check how to register for Self Assessment - GOV.UK (www.gov.uk)</a><br /><br /><strong>Please talk to us if you have any questions about a side hustle and how to declare this on your tax return, we have considerable experience in helping our clients comply with the complex HMRC disclosure requirements.</strong><br /> <br /><strong>Inflation holds steady at 6.7%</strong><br /><br /></span></div><div><span style="font-family: arial;">UK inflation unexpectedly held stable in September at 6.7% as rising fuel costs offset the first monthly fall in food prices for two years to maintain pressure on households during the cost of living crisis.<br /><br />The largest downward contributions to the monthly change came from food and non-alcoholic beverages, where prices fell on the month for the first time since September 2021, and furniture and household goods, where prices rose by less than they did a year ago.<br /><br />The Consumer Prices Index including owner-occupiers' housing costs (CPIH) rose by 6.3% in the 12 months to September 2023, the same rate as in August.<br /><br />The Office for National Statistics (ONS) said the annual inflation rate as measured by the consumer prices index (CPI) remained unchanged from August’s reading, already raising questions by experts over the Bank of England’s next decision on interest rates due in November. City economists had forecast a modest fall to 6.6%.<br /><br />Occupiers’ Housing Costs (OOH) increased by 5% in the twelve months to September 2023.<br /> <br />Source: Office for National Statistics.<br /><br /><u>So what actions can a business take now to remain resilient to any changes in the economy</u>?<br />Here are a few suggestions to help you think about your business: </span><ul><li><span style="font-family: arial;">Review your Budgets and set realistic and achievable targets for 2024.</span></li><li><span style="font-family: arial;">Review your debtors list and chase up overdue invoices (if appropriate).</span></li><li><span style="font-family: arial;">Assign responsibility to one individual for invoicing and collections.</span></li><li><span style="font-family: arial;">Put extra effort into making sure your relationships with your better customers are solid.</span></li><li><span style="font-family: arial;">Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc) and challenge the need for each step.</span></li><li><span style="font-family: arial;">Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).</span></li><li><span style="font-family: arial;">Review your staffing needs over the next few months. </span></li><li><span style="font-family: arial;">Review your list of products and services and eliminate those that are unprofitable or not core products/services.</span></li></ul> <span style="font-family: arial;"><strong>Talk to us about your business, we have many clients who have changed the way they do things and some really innovative stories to share with you! </strong><br /> <br /><strong>The new UK supply chain directory</strong><br /><br /></span></div><div><span style="font-family: arial;">The High Value Manufacturing (HVM) Catapult could make it easier for domestic manufacturers to connect with a new, free to use, UK Supply Chain Directory.<br /><br />The platform harnesses the power of machine learning to provide up-to-date information on UK manufacturers. It combines publicly accessible data with web scraping to create the single most data-rich source of UK's manufacturers and suppliers. It also allows companies to put up their company profile to update and enrich their content.<br /><br />HVM keep Companies House as a reference and it joins information coming from companies' websites, CreditSafe, and Dealroom.<br />This new tool is bringing together hundreds of thousands of businesses across UK industry in one online resource.<br /><br />The tool is free to sign up for and access, and businesses can use it to:<br />• find new suppliers and customers; and<br />• map the UK's capability in their sector or area.<br /><br />Users can search the directory according to company size, location, and specialist areas, with a wide range of other filters. Using data-driven classification, users can also find suppliers or supply chains based on manufacturing capability.<br /><br />See: <a data-cke-saved-href="https://uksupplychaindirectory.com/" href="https://uksupplychaindirectory.com/">uksupplychaindirectory.com</a><br /> <br /><strong>Real Living Wage rates for 2023/24</strong><br /><br /></span></div><div><span style="font-family: arial;">By paying the real Living Wage, employers are voluntarily taking a stand to ensure their employees can earn a wage which is enough to live on. <br /><br />As well as it being the right thing to do, there is a growing body of evidence demonstrating the business benefits of becoming a Living Wage employer.<br /><br />The Living Wage rates are independently calculated based on the real cost of living in the UK and London.<br /> <br />The new rates for 2023/24 are:</span><ul><li><span style="font-family: arial;">£12 per hour UK rate; and</span></li><li><span style="font-family: arial;">£13.15 London rate.</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://www.livingwage.org.uk/news/real-living-wage-increases-%C2%A312-uk-and-%C2%A31315-london" href="https://www.livingwage.org.uk/news/real-living-wage-increases-%C2%A312-uk-and-%C2%A31315-london">Real Living Wage increases to £12 in UK and £13.15 in London | Living Wage Foundation</a><br /> <br /><strong>Innovate UK Smart Grants</strong><br /><br /></span></div><div><span style="font-family: arial;">Innovate UK, part of UK Research and Innovation, is investing up to £25 million in the best game-changing and world-leading ideas.<br /><br />Ideas need to be designed for swift, successful commercialisation and be genuinely new and novel, not just disruptive within their sector.<br /><br />All proposals must be business-focused, with deliverable, realistic, adequately resourced plans to achieve return on investment, growth and market share following project completion.<br /><br />Applications can come from any area of technology and be applied to any part of the economy, such as, but not exclusively:<br />• net-zero,<br />• the arts, and<br />• design and media.<br /><br />To be in scope, your proposal must demonstrate (among other things):<br />• a game-changing, innovative, and disruptive idea that will lead to new products, processes or services;<br />• an idea that is significantly ahead of others in the field, set for rapid commercialisation; and<br />• clear potential to positively impact the UK's position, productivity and competitiveness within the global economy.<br /><br />Innovate UK will fund feasibility projects, industrial research projects and experimental development projects, as defined in the <a data-cke-saved-href="https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/general-guidance/categories-of-research-and-development/#contents-list" href="https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/general-guidance/categories-of-research-and-development/#contents-list">guidance on categories of research</a>.<br /><br />Your application must include at least one <a data-cke-saved-href="http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en" href="http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en">micro, small or medium-sized enterprise</a> (SME) as the lead or a collaborative grant claiming partner.<br /><br />Read the <a data-cke-saved-href="https://apply-for-innovation-funding.service.gov.uk/competition/1719/overview/b45c28c8-bced-4e87-96ba-69cc10ed15ca" href="https://apply-for-innovation-funding.service.gov.uk/competition/1719/overview/b45c28c8-bced-4e87-96ba-69cc10ed15ca">full eligibility criteria and scope for Innovate UK Smart Grants</a>.<br /><br />The competition closes at 11am on Wednesday 17 January 2024.<br /> <br /><strong>New wine industry reforms</strong><br /><br /></span></div><div><span style="font-family: arial;">Following a <a data-cke-saved-href="https://www.gov.uk/government/consultations/wine-reforms-to-retained-eu-law" href="https://www.gov.uk/government/consultations/wine-reforms-to-retained-eu-law">public consultation, Wine: reforms to retained EU law</a>, the UK government has set out reforms for the wine sector which will begin in 2024.<br /><br />Feedback from the wine industry has shown that certain regulations within the current 400-page rulebook have been stifling innovation and preventing the introduction of more efficient and sustainable practices.<br /><br />Changes will include removing some packaging requirements – such as ending the mandatory requirement that certain sparkling wines must have foil caps and mushroom-shaped stoppers. This will reduce unnecessary waste and packaging costs for businesses. Outdated rules around bottle shapes will also be scrapped, freeing up producers to use different types.<br /><br />The government will also remove the requirement for imported wines to have an importer address on the label - the Food Business Operator (FBO) responsible for ensuring all legal requirements are met will still need to be identified on the label, as is the standard requirement for food products. This will create more frictionless trade and reduce administrative burdens.<br /><br />Further reforms will also give producers more freedom to use hybrid varieties of grapes. This will enable growers to choose the variety that works best for them and reduce vine loss due to disease or climate change, while also providing greater choice to consumers.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-wine-reforms-to-boost-investment-and-ease-burdens-on-industry" href="https://www.gov.uk/government/news/new-wine-reforms-to-boost-investment-and-ease-burdens-on-industry">New wine reforms to boost investment and ease burdens on industry - GOV.UK (www.gov.uk)</a></span></div>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-9311377889692104392023-10-20T07:47:00.001+01:002023-10-20T07:47:06.614+01:0020th October 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>Applying Circular Economy principles in a business</strong><br />A circular economy (CE) is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.<br /> <br />CE aims to tackle global challenges such as climate change, biodiversity loss, waste, and pollution by emphasizing the design-based implementation of the three base principles of the model. The three principles required for the transformation to a circular economy are: designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.<br /><br />CE has been gaining popularity because it helps to minimize emissions and consumption of raw materials, open up new market prospects, increase the sustainability of consumption, and improve resource efficiency.<br /><br />Introducing circular economy principles into your business offers a range of opportunities that could positively impact your bottom line, brand reputation, and long-term sustainability. Here's why you could consider adopting CE principles:<br /></span><ul><li><span style="font-family: arial;">Cost Savings – optimise your resource use and extend the life of products and materials through strategies like repair, refurbishment, and remanufacturing; reducing the need for raw materials leads to lower production costs.</span></li><li><span style="font-family: arial;">Competitive Advantage – differentiate your business from competitors by demonstrating environmental responsibility and sustainability, enhancing your brand image.</span></li><li><span style="font-family: arial;">Growth Opportunities – encourage innovative product design and alternative business models, which can lead to new revenue streams and business growth.</span></li><li><span style="font-family: arial;">Regulatory Compliance – be better positioned to comply with evolving laws and regulations related to waste management, resource consumption, and emissions reduction.</span></li><li><span style="font-family: arial;">Enhanced Supply Chain Resilience – strengthen your supply chain resilience by being more innovative and resource-efficient in the face of resource scarcity, geopolitical instability, and increasing climate-related natural disasters.</span></li></ul><span style="font-family: arial;">Transitioning to CE requires a shift in mindset and business strategies. This is made possible by increased knowledge and innovation skills and should be part of any business’s strategic plan.<br /><br />If you have a vision of what you want your business to look like when it is “complete” then you are in a position to drive your business towards that vision and you can monitor how you are doing as you go along.<br /><br />If you agree it is hard to accomplish anything without a plan, we can help you start thinking about putting one in place. A strategic plan also helps you determine where to spend time, resources and money to achieve your objectives.<br /><u><br />So how do you do a strategic plan?</u><br /></span><ol><li><span style="font-family: arial;">Take time to review your own personal objectives – the business is there to provide you with what you want from life; do not forget this.</span></li><li><span style="font-family: arial;">Look at where you are now, your strengths, weaknesses, opportunities and threats. Take external advice so you have a clear understanding of your position in the marketplace, the competition, your systems, the way you do things - what you are good at and what you are not.</span></li><li><span style="font-family: arial;">Focus on where you want to be (say) in 5 years; what you want your business to look like when it is “complete” or running profitably and applying CE principles. Then you can determine your priorities – the big issues that you need to focus on – this is the strategic plan!</span></li><li><span style="font-family: arial;">Write down your vision and define what you must achieve and the actions you need to take. Monitor how you are progressing towards your vision each month, what actions have been completed and what needs to be done to keep you moving towards your plan.</span></li><li><span style="font-family: arial;">Allocate responsibility for taking the actions.</span></li><li><span style="font-family: arial;">Monitor, review, and adjust your regular activities to keep you on track towards your plan.</span></li></ol><span style="font-family: arial;">The long-term benefits regarding sustainability, cost savings, and business growth can be substantial, making it a worthwhile endeavour for forward-thinking businesses. Talk to us about helping you achieve your objectives; we have considerable experience in helping our clients take their businesses to new levels. <br /><br />The UK government’s policy statement on CE can be seen here: <a data-cke-saved-href="https://www.gov.uk/government/publications/circular-economy-package-policy-statement/circular-economy-package-policy-statement" href="https://www.gov.uk/government/publications/circular-economy-package-policy-statement/circular-economy-package-policy-statement">Circular Economy Package policy statement - GOV.UK (www.gov.uk)</a><br /> <br /><strong>UK businesses support Britain’s plan for digital trade borders</strong><br />UK businesses have given a thumbs up to incoming changes set to digitalise Britain’s trade borders and make the UK the third country in the world able to accept electronic trade documents.<br /><br />This move will take the UK a further step towards having a digital border system that is important for the improvement of the efficiency and sustainability of international trade for generations to come.<br /><br />Research from a recent poll, commissioned by The Institute of Export and International Trade (IOE&IT) finds that the majority of UK businesses welcome this move to digital trade.<br /><br />The poll finds that 75% of businesses who attended a recent IOE&IT event on the Electronic Trade Documents Act (ETDA) believe it will have a positive impact on their business, 29% of which feel it will have a ‘very positive impact’. A quarter say it will have a neutral impact – and, significantly, none believe it will have a negative impact on their business.<br /><br />The ETDA came into force on 20<sup>th</sup> September, and allows for key trade documents, such as bills of lading and bills of exchange, to be accepted in both paper and electronic format at the border and allowing for a streamlined process of the movement of goods.<br /><br />See: <a data-cke-saved-href="https://www.export.org.uk/news/news.asp?id=651946&hhSearchTerms=%22ETDA%22" href="https://www.export.org.uk/news/news.asp?id=651946&hhSearchTerms=%22ETDA%22">Electronic Trade Document Act enters into force with backing of UK businesses - The Institute of Export and International Trade</a><br /> <br /><strong>Understanding the right to work and minimum wage eligibility</strong><br />All employers in the UK have a responsibility to prevent illegal working. You do this by conducting simple right to work checks before you employ someone, to make sure the individual is not disqualified from carrying out the work in question by reason of their immigration status.<br /><br />Most people employed as employees or workers must be paid the National Minimum Wage or National Living Wage, but are you aware of how to check if they are entitled?<br /><u><br />Joint HMRC and Home Office webinar: understanding right to work and minimum wage eligibility</u><br /><br />The Home Office Immigration Enforcement and HMRC’s National Minimum Wage (NMW) teams are offering joint webinars covering:<br />• when an employer needs to conduct a right to work check;<br />• what type of right to work check they need to conduct;<br />• how to use the Home Office Employer Checking Service;<br />• civil penalties and prosecutions when employers do not comply with the right to work legislation;<br />• how to report immigration crime;<br />• who is a worker for NMW purposes;<br />• how to establish if someone is self-employed; and<br />• exemptions to minimum wage eligibility.<br /><br />Register here for the 17 October webinar: <a data-cke-saved-href="https://register.gotowebinar.com/rt/5191632656077717848?source=HMRC" href="https://register.gotowebinar.com/rt/5191632656077717848?source=HMRC">Registration (gotowebinar.com)</a><br /> <br /><strong>Working from home and the £6 per week allowance</strong><br />During the COVID pandemic the government relaxed the conditions to enable those working from home to be paid £6 a week tax free by their employer, or, where that was not paid by the employer, they could claim relief for £6 a week against their employment income for a tax refund from HMRC. Those relaxed rules applied for 2020/21 and 2021/22. Many employers and employees may not be aware that from 6 April 2022 the rules reverted to the strict statutory position. Employees can claim tax relief if they have to work from home under a homeworking agreement, for example because:<br /></span><ul><li><span style="font-family: arial;">their job requires them to live far away from the office,</span></li><li><span style="font-family: arial;">their employer does not have an office, or</span></li><li><span style="font-family: arial;">the office is closed every Friday and employees are required to work from home that day.</span></li></ul><span style="font-family: arial;">Tax relief cannot be claimed if the employee chooses to work from home.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/tax-relief-for-employees/working-at-home" href="https://www.gov.uk/tax-relief-for-employees/working-at-home">Claim tax relief for your job expenses: Working from home - GOV.UK (www.gov.uk)</a><br /><strong><br />New one-stop shop to find the topics government is interested in researching</strong><br />A new database of Areas of Research Interest has been developed by the Government Office for Science and the Economic and Social Research Council. The new tool which brings together all Areas of Research Interest (ARI) documents from across government departments in a one-stop shop is now live.<br /><br />ARIs are lists of research questions or topics which government departments and agencies would welcome more research on to inform their policies and help close the evidence policy gap.<br /><br />This <a data-cke-saved-href="https://ari.org.uk/" href="https://ari.org.uk/">new database</a> allows anyone accessing it to search for particular areas of research interest and find out what are the main research questions facing government departments.<br /><br />If applicable, the database will also find research already funded by UK Research and Innovation (UKRI) and connected to the searched topic, thereby <br />making it easier to identify existing evidence and experts in the field.<br /><br />This new tool improves accessibility, transparency, and openness around the knowledge priorities of departments, improving opportunities for collaboration and prioritisation. ARIs can be found in the database via keywords, year, government department, and via other basic metadata.<br /><br />The tool has been developed and co-funded by the Government Office for Science and ESRC, as a response to widespread demand to improve both the awareness and accessibility of ARIs. To date, over 1,500 ARIs have been published and are publicly available in pdf or html format on GOV.UK.<br /><br />The database was produced by Overton, a pioneering technology start-up whose mission is to support evidence-based decision-making across the world.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-one-stop-shop-to-find-the-topics-government-is-interested-in-researching" href="https://www.gov.uk/government/news/new-one-stop-shop-to-find-the-topics-government-is-interested-in-researching">New one-stop shop to find the topics government is interested in researching - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Latest UK Export Academy webinars</strong><br />Listed below are upcoming UK Export Academy webinars to help business owners and entrepreneurs across the UK boost their exporting skills and sell their goods and services to new markets worldwide.<br /><br />The UK Export Academy is delivered in various stages depending on your skill level. These include:<br /><u><br />Essentials</u><br />Build your knowledge and confidence if you’re relatively new to selling internationally or interested in learning how to start. These webinars offer a step-by-step guide to becoming an exporter.<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/understanding-export-controls--1/" href="https://www.events.nibusinessinfo.co.uk/en/events/understanding-export-controls--1/" title="Understanding export controls | UK Export Academy webinars"><br />20 Oct - Understanding export controls</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/how-to-sell-your-services-overseas-part-1-of-2--1/" href="https://www.events.nibusinessinfo.co.uk/en/events/how-to-sell-your-services-overseas-part-1-of-2--1/" title="How to Sell your Services Overseas (Part 1 of 2) | UK Export Academy webinars">24 Oct - How to sell your services overseas (Part 1 of 2)</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/how-to-sell-your-services-overseas-part-2-of-2--1/" href="https://www.events.nibusinessinfo.co.uk/en/events/how-to-sell-your-services-overseas-part-2-of-2--1/" title="How to Sell your Services Overseas (Part 2 of 2) | UK Export Academy webinars">26 Oct - How to sell your services overseas (Part 2 of 2)</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/intensive-series-an-introduction-to-exporting-part-1-of-2/" href="https://www.events.nibusinessinfo.co.uk/en/events/intensive-series-an-introduction-to-exporting-part-1-of-2/" title="Intensive series: An introduction to exporting (part 1 of 2) | UK Export Academy webinars">27 Oct - Intensive series: An introduction to exporting (part 1 of 2)</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/intensive-series-getting-your-exports-from-a-to-b-part-2/" href="https://www.events.nibusinessinfo.co.uk/en/events/intensive-series-getting-your-exports-from-a-to-b-part-2/" title="Intensive series: Getting your exports from A to B (part 2) | UK Export Academy webinars">31 Oct - Intensive series: Getting your exports from A to B (part 2)</a><br /> <br /><u>Masterclasses</u><br />Already have a good understanding of the export basics? Attend these masterclasses to broaden your knowledge.<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/fuel-your-vision-grantifys-guide-to-grant-funding-for-innovators/" href="https://www.events.nibusinessinfo.co.uk/en/events/fuel-your-vision-grantifys-guide-to-grant-funding-for-innovators/" title="Fuel your vision: Grantify's guide to grant funding for innovators | UK Export Academy webinars">23 Oct - Fuel your vision: Grantify's guide to grant funding for innovators</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/say-it-just-right-the-importance-of-translation/" href="https://www.events.nibusinessinfo.co.uk/en/events/say-it-just-right-the-importance-of-translation/" title="Say it just right: the importance of translation! | UK Export Academy webinars">25 Oct - Say it just right: the importance of translation!</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/ask-an-exporter-round-table-with-dbt-export-champions/" href="https://www.events.nibusinessinfo.co.uk/en/events/ask-an-exporter-round-table-with-dbt-export-champions/" title="Ask an exporter: Round table with DBT Export Champions | UK Export Academy webinars">30 Oct - Ask an exporter: Round table with DBT Export Champions</a><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/top-tips-for-understanding-vat-in-europe--2/" href="https://www.events.nibusinessinfo.co.uk/en/events/top-tips-for-understanding-vat-in-europe--2/" title="Top Tips for understanding VAT in Europe | UK Export Academy webinars">31 Oct - Top tips for understanding VAT in Europe</a><br /> <br />See: <a data-cke-saved-href="https://www.great.gov.uk/export-academy/?gclid=75c44d72ac901b23c885285118c4033b&gclsrc=3p.ds&utm_source=bing&utm_medium=cpc&utm_campaign=03389667_DIT_DIT_MADE%20IN%20THE%20UK_SME_BSTART_NONE_W03_026Y_Paid%20Search_SE__GCS-Y_EA&utm_term=export%20academy&utm_content=Brand%20-%20PHR%20-%20Support" href="https://www.great.gov.uk/export-academy/?gclid=75c44d72ac901b23c885285118c4033b&gclsrc=3p.ds&utm_source=bing&utm_medium=cpc&utm_campaign=03389667_DIT_DIT_MADE%20IN%20THE%20UK_SME_BSTART_NONE_W03_026Y_Paid%20Search_SE__GCS-Y_EA&utm_term=export%20academy&utm_content=Brand%20-%20PHR%20-%20Support">UK Export Academy — Great.gov.uk</a><br /> <br /><strong>Regional Talent Engines programme</strong><br />The Royal Academy of Engineering has opened a new round of applications for its Regional Talent Engines programme.<br /><br />This six-month pre-accelerator programme for early-stage founders aims to support entrepreneurial mid-late career engineers who wish to bring an innovative concept to market.<br /> <br />The programme is open to individuals in Northern Ireland, Northern England, and Wales.<br /><br />The Regional Talent Engines programme offers a unique package of support as a startup accelerator, including:<br /></span><ul><li><span style="font-family: arial;">an equity-free grant of £20,000 towards for living costs;</span></li><li><span style="font-family: arial;">hybrid training workshops, roundtables, and speaker events;</span></li><li><span style="font-family: arial;">one-to-one business coaching and mentoring support; and</span></li><li><span style="font-family: arial;">access to co-working and meeting spaces in London and Belfast.</span></li></ul><span style="font-family: arial;">Successful participants will also get a lifetime membership of the Royal Academy of Engineering's Enterprise Hub, including access to facilities, training, and networking within a supportive entrepreneurial community.<br /><br />To be eligible, applicants:<br /></span><ul><li><span style="font-family: arial;">must have technical understanding in their area of innovation; and </span></li><li><span style="font-family: arial;">should normally be experienced engineers or skilled tech professionals.</span></li></ul><span style="font-family: arial;">You must also be resident in, and committed to establishing a new startup in, the region where you are applying to take part in the programme. <br /><br />Applications are open until 4pm on 30 October 2023.<br /><br />See: <a data-cke-saved-href="https://enterprisehub.raeng.org.uk/regional-talent-engines" href="https://enterprisehub.raeng.org.uk/regional-talent-engines">Regional Talent Engines - Pre-Accelerator Programme (raeng.org.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-32860263226197006932023-10-13T12:06:00.004+01:002023-10-13T12:06:24.845+01:0013th October 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>This UK Government is the biggest tax-raising parliament since records began</strong><br />The Institute for Fiscal Studies (IFS) has stated that this has been the biggest tax-raising parliament since records began, pushing UK tax revenues to historically high levels. They comment “At the time of the last general election, UK tax revenues amounted to around 33% of national income. By the time of the next election in 2024, on current forecasts, taxes will amount to around 37% of national income – a level not sustained in the post-war period.<br /><br />Compared with a world in which taxes had stayed at 33% of national income, the UK government will be raising upwards of £100 billion more in tax revenues next year. This is equivalent to around £3,500 more per household, though of course the tax rise will not be shared equally.<br /><br />The government may decide to announce tax cuts in the run-up to the next election. But there is no world in which this parliament – or indeed the period since Rishi Sunak became Prime Minister – turns out to be anything other than a tax-raising one. In fact, it is currently on track to be the biggest tax-increasing parliament since comparable records began.<br /><br />The UK government is currently raising more in tax revenue, as a percentage of national income, than at any time since the 1940s. This is, in no small part, due to a raft of tax-raising measures announced over the past few years. Notable examples include the big increase in the main rate of corporation tax from 19% to 25%, the energy profits levy, and freezes to various income tax and National Insurance thresholds. Economic developments mean that some of these measures will now raise considerably more than originally planned or intended. That is <a data-cke-saved-href="https://ifs.org.uk/publications/reforms-roll-outs-and-freezes-tax-and-benefit-system" href="https://ifs.org.uk/publications/reforms-roll-outs-and-freezes-tax-and-benefit-system" target="_blank">particularly true of freezes</a> to income tax allowances (which would otherwise have risen in line with inflation).<br /><br /><u>So are there any tax Planning opportunities ahead of the new tax year?</u><br />The new tax year starts 6 April 2024, so you have six months to consider your planning options. Once we pass this date the majority of the tax planning options for Income Tax and Capital Gains Tax purposes will cease unless actioned.<br /><br /><u>Do you fall into any of these categories?</u></span><ul><li><span style="font-family: arial;">You have or are thinking about a change in your personal status (single, married, separating, joining or dissolving a civil partnership).</span></li><li><span style="font-family: arial;">You are thinking about selling a capital asset, such as shares or a property.</span></li><li><span style="font-family: arial;">You or your child’s other parent claims Child Benefit and the income of either parent is likely to exceed £50,000 for the first time during tax year 2023-24.</span></li><li><span style="font-family: arial;">Your annual income is approaching or above £100,000.</span></li><li><span style="font-family: arial;">You have not yet topped up your pension contributions for tax year 2023-24.</span></li><li><span style="font-family: arial;">You are self-employed with a 31 March 2024 year-end.</span></li><li><span style="font-family: arial;">You are thinking about the purchase of equipment or vehicles.</span></li><li><span style="font-family: arial;">You are the director and/or shareholder of a limited company and have not yet considered voting dividends or bonuses for 2023-24.</span></li></ul><span style="font-family: arial;"> If you do, we can help you discuss your options ahead of the April 2024 deadline.<br /><br />The above list is not comprehensive, and we specialise in helping clients with all taxes including PAYE, NIC, VAT, Corporation, Capital Gains, and tax.<br />Please contact us now!<br /><br />See: <a data-cke-saved-href="https://ifs.org.uk/articles/will-be-biggest-tax-raising-parliament-record" href="https://ifs.org.uk/articles/will-be-biggest-tax-raising-parliament-record">This will be the biggest tax-raising parliament on record | Institute for Fiscal Studies (ifs.org.uk)</a><br /> <br /><strong>Millions Heading for Retirement Without a Financial Plan</strong><br />Millions of over-55s in the UK are at risk of encountering financial difficulties in their retirement, new research has revealed.<br /><br />One of the UK’s leading at-retirement advisers commissioned an independent survey of 2,000 UK adults, finding that less than half (46%) of respondents currently have a financial plan in place for their retirement – with this figure only rising to 47% for those aged 55 and above.<br /><br />When it comes to retirement savings, just 51% of UK adults know how much is in their pensions – again, there is only a slight increase (to 56%) among those aged 55 and above.<br /><br />The research also showed that less than a third (32%) of over-55s are confident they will retire with enough money to achieve their desired lifestyle.<br /><br />Research has also shown that only 16% of over-55s regularly use the services of a wealth manager or independent financial adviser (IFA), while just 19% have spoken with an IFA in the past 12 months to help them understand how to adapt their pension plans to the current economic climate.<br /><br /><u>Do you own a business?</u><br />The ultimate aim of every serious business person is to build a company that has value, so that it can be sold or transferred, allowing the entrepreneur to exit gracefully and profitably.<br /><br />Recently, we have been helping a number of our entrepreneur clients develop exit strategies. There are many issues to consider:</span><ul><li><span style="font-family: arial;">When do you want to retire?</span></li><li><span style="font-family: arial;">Can the business be sold to your employees?</span></li><li><span style="font-family: arial;">Is a trade sale more likely?</span></li><li><span style="font-family: arial;">Are there children involved?</span></li><li><span style="font-family: arial;">How much is the business worth?</span></li><li><span style="font-family: arial;">What needs to be done to enhance the value of the business?</span></li><li><span style="font-family: arial;">How long will it take?</span></li><li><span style="font-family: arial;">Do you want/need to stay on after sale or transfer?</span></li><li><span style="font-family: arial;">What are the tax consequences?</span></li></ul><span style="font-family: arial;"> We have a tried and tested methodology to address these issues and to help you prepare your business for sale, find potential buyers and help you negotiate to get the maximum price a buyer feels your business is worth.<br /><br /><u>If you would like to discuss your personal exit plans we would be happy to do so with you — please call us!</u><br /> <br /><strong>UK government announces more legislation to tackle late payments</strong><br />The UK government has announced tougher measures to tackle the issue of late payments to small businesses. These new measures will be included in the upcoming Prompt Payment & Cash Flow Review, due to be published shortly and will improve delivery and enforcement of policies, enabling more small businesses to get paid on time.<br /><br />New measures to be announced in the review will include:</span><ul><li><span style="font-family: arial;">Extending the Reporting on Payment Practices and Performance Regulations 2017. Following consultation, Government will take forward legislation to extend payment performance reporting obligations. Also included will be new metrics for reporting, including a value metric, so businesses and commentators can see the value of invoices, including invoices paid late, and a disputed invoices metric. Government will also introduce reporting on retention payments for businesses in the construction sector.</span></li><li><span style="font-family: arial;">Providing greater advice to small businesses on negotiating payment terms that better suit them, and on how going digital can help them get paid quicker and manage their cash flow.</span></li><li><span style="font-family: arial;">Broadening the powers of the Small Business Commissioner: Introducing broader responsibilities, enabling the Commissioner to undertake investigations and publish reports where necessary on the basis of anonymous information and intelligence. This will require primary legislation, so will be subject to the legislative timetable.</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://www.gov.uk/government/news/government-takes-action-to-back-small-businesses-and-tackle-late-payments" href="https://www.gov.uk/government/news/government-takes-action-to-back-small-businesses-and-tackle-late-payments">Government takes action to back small businesses and tackle late payments - GOV.UK (www.gov.uk)</a><br /> <br /><strong>1 in 4 Employers Have Seen an Increase in Staff Sickness</strong><br />A new survey from Acas has found that one in four employers have seen an increase in staff being off sick compared to a year ago. Acas commissioned YouGov to ask employers at the end of August if they had seen any changes to the number of employees being off sick compared to 12 months ago. The poll found that:</span><ul><li><span style="font-family: arial;">26% of employers had seen an increase in sickness absence;</span></li><li><span style="font-family: arial;">Almost 1 in ten (9%) had seen a decrease;</span></li><li><span style="font-family: arial;">Over half (59%) said that the number of staff being off sick had roughly stayed the same; and</span></li><li><span style="font-family: arial;">6% didn’t know or were not sure.</span></li></ul><span style="font-family: arial;"> Acas advice is that businesses that effectively address sickness can improve staff morale and wellbeing, boost productivity, reduce absence levels as well as save money. Steps that can help to reduce sickness absence include:</span><ul><li><span style="font-family: arial;">Having an absence policy that is clear on what is expected of managers and their staff if they need time off work;</span></li><li><span style="font-family: arial;">Create a culture at work where staff feel supported and comfortable raising problems that they trust will be taken seriously; and</span></li><li><span style="font-family: arial;">Deal with the causes of absence such as work-related stress or workers struggling to balance work and caring responsibilities.</span></li></ul><span style="font-family: arial;"> Acas advises that a good work-life balance can lead to lower levels of sickness absence. To help staff, employers should:</span><ul><li><span style="font-family: arial;">Encourage staff to speak up if they feel they’re under too much pressure at work;</span></li><li><span style="font-family: arial;">Train managers to spot signs of a poor work-life balance;</span></li><li><span style="font-family: arial;">Offer flexible working where possible;</span></li><li><span style="font-family: arial;">Encourage breaks from work, including during the day and making sure employees take holidays;</span></li><li><span style="font-family: arial;">Regularly review workloads; and</span></li><li><span style="font-family: arial;">Lead by example – if managers and senior leaders have a good work-life balance, this will create a culture for employees to follow.</span></li></ul><span style="font-family: arial;"> See: <a data-cke-saved-href="https://www.acas.org.uk/recording-and-reducing-sickness-absence/reducing-sickness-absence" href="https://www.acas.org.uk/recording-and-reducing-sickness-absence/reducing-sickness-absence">Reducing sickness absence: Recording and reducing sickness absence - Acas</a><br /> <br /><strong>Digital Innovation Fund opens for applications</strong><br />The Made Smarter Innovation - Smart Manufacturing Data Hub (SMDH) is now accepting applications for funded projects that will support manufacturing small and medium-sized businesses (SMEs) on their smart manufacturing journey.<br /><br />The fund aims to support the development of concepts into a market-ready solution for deployment and dissemination to SMEs.<br /><br />There are three different funding opportunities based on the needs of the company:</span><ul><li><span style="font-family: arial;"><a data-cke-saved-href="https://smdh.uk/lighthouses" href="https://smdh.uk/lighthouses" target="_blank" title="Support for SMEs to embark on a smart manufacturing journey">Lighthouses</a> - aims to develop already proven digital products and processes into readily accessible solutions which meet the needs of manufacturing SMEs. Grant funding of up to £315,000 is available per project.</span></li><li><span style="font-family: arial;"><a data-cke-saved-href="https://smdh.uk/testbeds" href="https://smdh.uk/testbeds" target="_blank" title="Support for National Digital Twin and Virtual Manufacturing Testbeds">Virtual Testbeds</a> - aims to provide financial support and opportunities to bring pre-existing testbeds to the SMDH community and enable SMEs to utilise them. Grant funding of up to £100,000 is available per project.</span></li><li><span style="font-family: arial;"><a data-cke-saved-href="https://smdh.uk/demonstrator" href="https://smdh.uk/demonstrator" target="_blank" title="Support for solutions that enable SMEs to advance their smart manufacturing journeys">Rapid Demonstrators</a> - aims to support SMEs with sensor installation, data analysis or similar to enable levelling-up the opportunities for SMEs to exceed and expand. Grant funding of up to £50,000 per project is available.</span></li></ul><span style="font-family: arial;"> The fund is open to any UK-based industrial or professional sector organisation which can provide skills, support or solutions for manufacturing SMEs.<br /><br />The deadline for applications is 31 October 2023.<br /><br />See: <a data-cke-saved-href="https://smdh.uk/funding" href="https://smdh.uk/funding">Apply for Digital Innovation Funding (smdh.uk)</a><br /> <br /><strong>IPO Transformation: Second consultation</strong><br />The UK Intellectual Property Office (IPO) is seeking views on a package of changes to improve their digital services<br /><br />The <a data-cke-saved-href="https://www.gov.uk/government/publications/one-ipo-transformation-one-year-until-the-new-patents-service/transformation-one-year-to-go-for-patents-html" href="https://www.gov.uk/government/publications/one-ipo-transformation-one-year-until-the-new-patents-service/transformation-one-year-to-go-for-patents-html" target="_blank" title="Information on the rollout of the new patent service from the IPO">IPO's Transformation programme</a> is designed to modernise and improve the IPO's services. By the end of 2025, it aims to replace the IPO's existing processes with a digital system for all registered IP rights (patents, trademarks and designs).<br /><br />In 2022, the IPO ran a <a data-cke-saved-href="https://www.gov.uk/government/consultations/potential-legislative-changes-for-ipo-digital-transformation" href="https://www.gov.uk/government/consultations/potential-legislative-changes-for-ipo-digital-transformation" target="_blank" title="Potential legislative changes for IPO digital transformation">first public consultation</a>, which mainly focused on changes related the launch of the new digital patents service in 2024.<br /><br />The <a data-cke-saved-href="https://www.gov.uk/government/consultations/potential-legislative-changes-for-ipo-digital-transformation" href="https://www.gov.uk/government/consultations/potential-legislative-changes-for-ipo-digital-transformation" target="_blank" title="Key outcomes of the IPO digital transformation consultation ">government response</a> to that consultation was published on 1 August 2023. This will inform some of the potential legal and practice changes to enable transformation and the build of the service.<br /><br />A second consultation is now necessary to inform and support the next phase of the programme, which is chiefly concerned with trademarks, designs and IPO tribunal services.<br /><br />See: <a data-cke-saved-href="https://www.nibusinessinfo.co.uk/content/ipo-transformation-second-consultation" href="https://www.nibusinessinfo.co.uk/content/ipo-transformation-second-consultation">IPO Transformation: Second consultation (nibusinessinfo.co.uk)</a><br /> <br /><strong>Content Fund for high potential games studios</strong><br />The Department for Culture, Media and Sport (DCMS) has announced £5 million for the UK Games Fund as part of the Creative Industries Sector Vision, a joint plan between Government and industry to drive growth, build talent and develop skills across the creative sectors.<br /><br />The Content Fund is offering £50,000 to £150,000 commercial games-for-entertainment content grants. The aim of the funding is to support a mix of existing and/or new employees, alongside a lesser proportion of contracted staff.<br /><br />Applicant companies must be UK registered SMEs with PAYE employees engaged in games development work in the UK and have a prototype in place.<br />Overall project costs must be at least double the requested grant, and the funding must make a demonstrable difference in terms of unlocking additional resources, new relationships, platform or audience access.<br /><br />There is a rolling deadline for this programme, however the application portal may be closed periodically for ten to fourteen days whilst batches of applications are reviewed, re-opening as soon as possible.<br /><br />There are also fixed allocations of funding to administer within different financial years so early applications are encouraged, in particular for financial year 2023/24.<br /><br />See: <a data-cke-saved-href="https://contentfund.ukgamesfund.com/" href="https://contentfund.ukgamesfund.com/">Home - Content Fund (ukgamesfund.com)</a><br /> <br /><strong>New bans and restrictions on polluting single-use plastics </strong><br />Government action to tackle the scourge of litter and protect the environment from plastic pollution came into force on the 1 October, with bans and restrictions on a range of polluting single-use plastic items.<br /><br />No business – whether retailer, takeaway, food vendor or part of the hospitality industry – will now be able to sell single-use plastic cutlery, balloon sticks nor polystyrene cups and food containers in England. The supply of single-use plastic plates, trays and bowls has also been restricted. <a data-cke-saved-href="https://www.gov.uk/government/news/far-reaching-ban-on-single-use-plastics-in-england" href="https://www.gov.uk/government/news/far-reaching-ban-on-single-use-plastics-in-england">The new regulations were announced in January</a> and extensive work has taken place throughout 2023 to provide <a data-cke-saved-href="https://www.gov.uk/guidance/single-use-plastics-ban-plates-bowls-trays-containers-cutlery-and-balloon-sticks" href="https://www.gov.uk/guidance/single-use-plastics-ban-plates-bowls-trays-containers-cutlery-and-balloon-sticks">further guidance on the ban for businesses</a>.<br /><br />Plastic pollution takes hundreds of years to break down and inflicts serious damage on our ocean, rivers and land. It is also a source of greenhouse gas emissions, from its production and manufacture to the way it is disposed.<br /><br />Research shows people across England use 2.7 billion items of mostly plastic single-use cutlery and 721 million single-use plates every year, but only 10% of these are recycled. If 2.7 billion pieces of cutlery were lined up, they would go round the world more than eight-and-a-half times.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-bans-and-restrictions-on-polluting-single-use-plastics-come-into-force" href="https://www.gov.uk/government/news/new-bans-and-restrictions-on-polluting-single-use-plastics-come-into-force">New bans and restrictions on polluting single-use plastics come into force - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-53763576711254139242023-10-06T07:00:00.001+01:002023-10-07T07:01:51.747+01:006th October 2023 – Hillmans Weekly Update:<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>The REALLY important stuff!</strong><br />With the constant news surrounding the economy, interest rate uncertainty, and high inflation, it is difficult not to worry about these issues and lose sight of what’s really important – the health and welfare of you and your loved ones. <br /><br />The issue we all face is a potent mix of inflation, recession, high debts, and the core reason for it all, a wartime energy shock. <br />It is not the market driving the crisis; it is geopolitics, diplomacy, and conflict. On an individual level these events are not within our control, so what can we do to keep rational whilst this crisis unfolds?<br /><br />It is worth remembering a quote from the singer Celine Dion: “Life imposes things on you that you can’t control, but you still have the choice of how you’re going to live through this”.<br /><br />Firstly, know that you can only control your life and those close to you. Everything else going on is typically uncontrollable just now. So, take time to set some long-term goals to give yourself a sense of agency and control. Next, list the things that make you happy and safe; by doing this you can focus on the good things and not the other stuff. Thirdly, take time out to do things you enjoy. Doing something you are good at reinforces a sense of self-worth and purpose.<br /><u><br />If you own a business, then: </u><br /></span><ol><li><span style="font-family: arial;">Take time to review your personal objectives – the business is there to provide you with what you want from life, not the other way round!</span></li><li><span style="font-family: arial;">Look at where the business is now: its strengths, weaknesses, opportunities, and threats. Get a clear understanding of its position in the marketplace, the competition, the systems, the way things are done, and the improvements that could be made.</span></li><li><span style="font-family: arial;">Focus on what the business is to look like when it is “complete” or running profitably and successfully. Then you can determine priorities – the big issues that need to be focussed on.</span></li></ol><span style="font-family: arial;">It is also a good idea to look at where you are now and plan for a range of scenarios “good and bad” so that you can be flexible about the direction you should take. <br /><br />Ask us about our One Page Analyst, a “what if” scenario planner which takes your projected 2024 figures and allows you to work out the effect on profit of reducing expenses, increasing sales, increasing or decreasing prices.<br /><u><br />If you need help during the next few months, then please call us – we are here to support you! </u><br /> <br /><strong>Managing your cash flow</strong><br />With increasing supplier prices and economic uncertainty, managing your business’s cash and understanding its flow are now vital tools in maintaining resilience and being able to adopt flexible strategies for success.<br /><br />Cash flows are a reflection of all the cash that is flowing in and out of a business. Owners can look at the direction of the cash flows for insights about the health of specific products or services and overall market patterns.<br /><br />Some types of business are more likely to run into cash flow problems, while other types appear to be more resilient. If you are a business owner, you might be wondering which category your business falls into. No matter how inventive or simple your business model is, you can still have problems with cash flow. Here are our thoughts on managing the flow of cash in your business:<br /><br />The first stage of understanding and predicting how funds flow is to perform a health check on your accounts. Look at your latest profit and loss statement and check that your income is sufficient to cover your expenses. If your profit is falling behind your expenses and cash flow is slowing down, you might need to take action. Prepare a funds flow statement so you know where the money goes.<br /><br />Next, create a yearly budget and look at where cash could become tight, identifying months where you can save to cover off the quieter times. Look at those quieter months and think about flexible work scheduling, new products or services, or other activities to tide you over.<br /><br />Finally, make sure you collect your money from those who owe you quickly. Reward customer loyalty by offering early bird discounts, set credit limits and payment terms to ensure customers follow the rules. If you take on new customers, make credit checks. Penalise late payers and request up front deposits or payment.<br /><u><br />Talk to us about preparing a funds flow statement and annual budget so that you can work on your business for maximum success! </u><br /> <br /><strong>Business Finance Week 2023</strong><br />From 6 to 10 November 2023, the British Business Bank, along with several partners from across the UK, will host Business Finance Week 2023.<br /><br />With a host of free nationwide and regional in-person events and webinars, Business Finance Week 2023 aims to help smaller businesses learn about the different finance options available to them to support their individual needs.<br /><u><br />Events coming up as part of the week include:</u><br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/making-sense-of-start-up-funding-where-do-i-start/" href="https://www.events.nibusinessinfo.co.uk/en/events/making-sense-of-start-up-funding-where-do-i-start/" target="_blank" title="Making sense of start-up funding: Where do I start? - event details"><br />Making sense of start-up funding: Where do I start?</a><br />Monday 6 November 2023, 12:30pm to 1:30pm, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/unlocking-potential-for-your-business-through-diversity-and-sustainability/" href="https://www.events.nibusinessinfo.co.uk/en/events/unlocking-potential-for-your-business-through-diversity-and-sustainability/" target="_blank" title="Unlocking potential for your business through diversity and sustainability - event details">Unlocking potential for your business through diversity and sustainability</a><br />Tuesday 7 November 2023, 10am to 11:30am, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/growing-your-business-an-interview-with-a-founder-7-november/" href="https://www.events.nibusinessinfo.co.uk/en/events/growing-your-business-an-interview-with-a-founder-7-november/" target="_blank" title="Growing your business: An interview with a founder - event details">Growing your business: An interview with a founder</a><br />Tuesday 7 November 2023, 12:30pm to 1pm, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/maintaining-healthy-levels-of-working-capital/" href="https://www.events.nibusinessinfo.co.uk/en/events/maintaining-healthy-levels-of-working-capital/" target="_blank" title="Maintaining healthy levels of working capital - event details">Maintaining healthy levels of working capital</a><br />Wednesday 8 November 2023, 10am to 11:30am, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/prepare-your-business-for-external-finance/" href="https://www.events.nibusinessinfo.co.uk/en/events/prepare-your-business-for-external-finance/" target="_blank" title="Prepare your business for external finance - event details">Prepare your business for external finance</a><br />Wednesday 8 November 2023, 12:30pm to 1:20pm, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/exploring-working-capital-in-northern-ireland/" href="https://www.events.nibusinessinfo.co.uk/en/events/exploring-working-capital-in-northern-ireland/" target="_blank" title="Exploring working capital in Northern Ireland - event details">Exploring working capital in Northern Ireland</a><br />Wednesday 8 November 2023, 2pm to 3:30pm, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/investment-for-innovation/" href="https://www.events.nibusinessinfo.co.uk/en/events/investment-for-innovation/" target="_blank" title="Investment for innovation - event details">Investment for innovation</a><br />Thursday 9 November 2023, 9:30am to 11am, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/growing-your-business-an-interview-with-a-founder-9-november/" href="https://www.events.nibusinessinfo.co.uk/en/events/growing-your-business-an-interview-with-a-founder-9-november/" target="_blank" title="Growing your business: An interview with a founder - event details">Growing your business: An interview with a founder - 9 November</a><br />Thursday 9 November 2023, 12:30pm to 1pm, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/what-next-finance-as-a-journey/" href="https://www.events.nibusinessinfo.co.uk/en/events/what-next-finance-as-a-journey/" target="_blank" title="What next? Finance as a journey - event details">What next? Finance as a journey</a><br />Friday 10 November 2023, 12:30pm to 1:30pm, online event<br /><a data-cke-saved-href="https://www.events.nibusinessinfo.co.uk/en/events/inspiring-inclusive-entrepreneurship--2/" href="https://www.events.nibusinessinfo.co.uk/en/events/inspiring-inclusive-entrepreneurship--2/" target="_blank" title="Inspiring inclusive entrepreneurship - event details">Inspiring inclusive entrepreneurship</a><br />Friday 10 November 2023, 10am to 12:30pm, The Duncairn, Belfast<br />See: <a data-cke-saved-href="https://www.british-business-bank.co.uk/finance-hub/business-finance-week/" href="https://www.british-business-bank.co.uk/finance-hub/business-finance-week/">Business Finance Week 2023 - British Business Bank (british-business-bank.co.uk)</a><br /> <br /><strong>First time tax return?</strong><br />Taxpayers who are new to Self-Assessment for the 2022 to 2023 tax year may include:<br /></span><ul><li><span style="font-family: arial;">those who are newly self-employed and earned more than £1,000;</span></li><li><span style="font-family: arial;">a new partner in a business partnership;</span></li><li><span style="font-family: arial;">those who had a total taxable income of more than £100,000;</span></li><li><span style="font-family: arial;">those who have received any untaxed income such as tips, commission, money from renting out a property or income from savings, investments, and dividends; and</span></li><li><span style="font-family: arial;">those claiming Child Benefit but they or their partner have an income above £50,000.</span></li></ul><span style="font-family: arial;">Self-employed taxpayers must also register for Class 2 National Insurance contributions.<br /><br />You should register with HMRC by 5 October 2023 here: <a data-cke-saved-href="https://www.gov.uk/register-for-self-assessment" href="https://www.gov.uk/register-for-self-assessment">Register for Self Assessment - GOV.UK (www.gov.uk)</a><br /><u><br />Paper tax return deadline</u><br />The tax return deadline for the 2022 to 2023 tax year is Tuesday 31 October 2023 for those completed on paper forms.<br /><u><br />Online tax return deadline</u><br />The tax return deadline for the 2022 to 2023 tax year is Wednesday 31 January 2024 for online returns and to pay any tax owed.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return" href="https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return">Self Assessment tax returns: Who must send a tax return - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Innovation Loans Future Economy competition: round 11</strong><br />Innovate UK is offering up to £25 million in loans to micro, small, and medium-sized enterprises (SMEs). Loans are for highly innovative late-stage research and development (R&D) projects with the best potential for the future. There should be a clear route to commercialisation and economic impact.<br /><br />Your project must lead to new products, processes, or services that are significantly ahead of others currently available, or propose an innovative use of existing products, processes, or services. It can also involve a new or innovative business model.<br /><br />See: <a data-cke-saved-href="https://apply-for-innovation-funding.service.gov.uk/competition/1717/overview/4b1d658f-9679-4563-96bd-758a18b74116" href="https://apply-for-innovation-funding.service.gov.uk/competition/1717/overview/4b1d658f-9679-4563-96bd-758a18b74116">Competition overview - Innovate UK innovation loans future economy: round 11 - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)</a><br /> <br /><strong>Made in the UK, Sold to the World Awards 2024</strong><br />The annual Made in the UK, Sold to the World awards recognises and celebrates the global trading success of SMEs from across the UK.<br /><br />The Department for Business and Trade’s 2024 Made in the UK, Sold to the World awards will open for entries on Friday 10 November 2023, during this year's International Trade Week (6 to 13 November 2023).<br /><br />There will be ten categories of awards to enter:<br /></span><ul><li><span style="font-family: arial;">Agriculture, Food & Drink;</span></li><li><span style="font-family: arial;">Consultancy & Professional Services;</span></li><li><span style="font-family: arial;">Creative Industries;</span></li><li><span style="font-family: arial;">Education & EdTech;</span></li><li><span style="font-family: arial;">Financial Services & FinTech;</span></li><li><span style="font-family: arial;">Healthcare;</span></li><li><span style="font-family: arial;">Infrastructure & Engineering;</span></li><li><span style="font-family: arial;">Low Carbon Energy;</span></li><li><span style="font-family: arial;">Manufacturing, Advanced Manufacturing & Construction; and</span></li><li><span style="font-family: arial;">Retail & Consumer Goods.</span></li></ul><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.great.gov.uk/campaign-site/2024-made-in-the-uk-awards/2024-Awards/" href="https://www.great.gov.uk/campaign-site/2024-made-in-the-uk-awards/2024-Awards/">2024 Awards Information - great.gov.uk</a><br /> <br /><strong>New training places available for retrofitting, heat networks, and heat pump installations</strong><br />A new wave of low-carbon heating and insulation installers will be created through thousands of heavily discounted training spaces in a boost to the green jobs sector.<br /><br />Up to 8,000 people – including current installers and those who are new to the industry – will be able to develop the skills and expert knowledge needed to retrofit homes and install insulation through a host of training providers thanks to the Home Decarbonisation Skills Training scheme.<br /><br />A further 4,000 people will also be able to get £500 towards training to install and maintain heat networks through the Heat Training Grant.<br /><br />The Low Carbon Heating Technician Apprenticeship, the first of its kind, will provide people with the chance to learn how to install low-carbon heating systems on the job, supporting delivery of the expanded Boiler Upgrade Scheme which gives hard-working families the opportunity to make the switch away from fossil fuel heating.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/thousands-of-low-cost-training-spaces-available-in-boost-to-green-jobs-sector" href="https://www.gov.uk/government/news/thousands-of-low-cost-training-spaces-available-in-boost-to-green-jobs-sector">Thousands of low-cost training spaces available in boost to green jobs sector - GOV.UK (www.gov.uk)</a><br /> <br /><strong>UK signs sixth US state deal with Washington State</strong><br />The UK and the US state of Washington signed a new Memorandum of Understanding (MoU) on trade and investment last week.<br /><br />Washington State is home to major US business including Amazon, Starbucks, Microsoft and Boeing, and has a GDP roughly equivalent to Poland. The MoU marks the sixth delivered as part of the UK’s state-level strategy to increase trade with the US and means that the combined GDP of states the UK has MoUs with now totals £2.2 trillion.<br /><br />The UK has signed MoUs with Indiana, North Carolina, South Carolina, Oklahoma, Utah, and now Washington. Collectively these states imported £5.1 billion of UK goods in 2022.<br /><br />The Government is actively engaging with further states including Florida, Texas, California, Colorado, and Illinois.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-signs-sixth-us-state-deal-with-washington-state" href="https://www.gov.uk/government/news/uk-signs-sixth-us-state-deal-with-washington-state">UK signs sixth US state deal with Washington State - GOV.UK (www.gov.uk)</a><br /> <br /><strong>World’s first fully digitalised goods shipment sent from Burnley </strong><br />The first ever fully digitalised goods shipment landed in Singapore from Burnley after the UK introduced legislation to digitise trade documents to make importing and exporting easier for businesses.<br /><br />A valve produced by Burnley-based manufacturer Fort Vale set off from Manchester Airport on Thursday, facilitated by UK and Singapore based tech company LogChain, and arrived in Singapore. For the first time ever, the shipment was processed entirely digitally, rather than via physical customs documents.<br /><br />The news comes following the UK’s digital trade agreement with Singapore, which facilitated electronic trade, as well as the introduction of the UK’s Electronic Trade Documents Act (ETDA) which came into force last week.<br /><br />The Act made the UK the first G7 country to place electronic trade documents on the same legal footing as paper documents. <br /><br />It is estimated the move could generate £1.14 billion for the UK economy over the next decade.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/worlds-first-fully-digitalised-goods-shipment-sent-from-burnley-in-billion-pound-brexit-boost-for-british-businesses" href="https://www.gov.uk/government/news/worlds-first-fully-digitalised-goods-shipment-sent-from-burnley-in-billion-pound-brexit-boost-for-british-businesses">World’s first fully digitalised goods shipment sent from Burnley in billion-pound Brexit boost for British businesses - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Christmas and new year holidays </strong><br />The Christmas season has a big impact on most businesses and employees in the UK. It will be a time when there is likely to be extra demand for products, services, and sales in some businesses whilst others may experience a quiet period or may shut for the Christmas holidays.<br /><br />This year, Christmas Day, 25 December 2023 falls on a Monday and Boxing Day, 26 December 2023, falls on a Tuesday. New Year’s Day also falls on a Monday.<br /><br />The Advisory, Conciliation and Arbitration Service (ACAS) has useful guidance for both employers and employees on their website about holiday entitlement.<br /><br />See: <a data-cke-saved-href="https://www.acas.org.uk/holiday-sickness-leave" href="https://www.acas.org.uk/holiday-sickness-leave">Holiday, sickness and leave | Acas</a><br /> <br /><strong>£25 million for projects using nature to increase flood resilience</strong><br />The ring-fenced funding, provided by the Government and the Environment Agency, will support natural flood management schemes across England that use techniques such as planting trees and creating wetlands to slow and store water to reduce the risk of flooding. These schemes are also proven to improve air and water quality, provide habitats for wildlife, and create green spaces for communities.<br /><br />This new funding builds on the <a data-cke-saved-href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1027997/Using_the_power_of_nature_to_increase_flood_resilience.PDF" href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1027997/Using_the_power_of_nature_to_increase_flood_resilience.PDF">£15m natural flood management pilot programme</a> which ran until 2021. Across the 60 pilot projects supported by this programme, the equivalent of 1.6 million cubic metres of water storage was created and 15,000 homes were better protected from flooding, while 4,000 hectares of habitat and 610 kilometres of river were improved, and 100 hectares of woodland were planted.<br /><br />The £25 million will also help harness the power of nature and support the <a data-cke-saved-href="https://www.gov.uk/government/publications/national-flood-and-coastal-erosion-risk-management-strategy-for-england--2" href="https://www.gov.uk/government/publications/national-flood-and-coastal-erosion-risk-management-strategy-for-england--2">Environment Agency’s FCERM Strategy</a>, which provides a longer-term vision of how we will create climate-resilient places and better protect and prepare homes and businesses from flooding and coastal change.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/25-million-for-projects-using-nature-to-increase-flood-resilience" href="https://www.gov.uk/government/news/25-million-for-projects-using-nature-to-increase-flood-resilience">£25 million for projects using nature to increase flood resilience - GOV.UK (www.gov.uk)</a><br /> <br /><strong>Bus fares in rural England to rise on the 1 November 2023</strong><br />Last week, <a data-cke-saved-href="https://www.gov.uk/government/statistics/quarterly-bus-fares-statistics-april-to-june-2023" href="https://www.gov.uk/government/statistics/quarterly-bus-fares-statistics-april-to-june-2023">new statistics</a> from the Department of Transport (DfT) showed the overall price of bus fares in England, outside London, has dropped by 7.4% between June 2022 and June 2023, mainly due to the extension of the <a data-cke-saved-href="https://www.gov.uk/guidance/2-bus-fare-cap" href="https://www.gov.uk/guidance/2-bus-fare-cap">Get Around for £2</a> scheme.<br /><br />Starting in January 2023 and originally scheduled to end on 31 March 2023, the Get Around for £2 scheme has been extended until 31 October this year and will then run at £2.50 until the end of November 2024.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/bus-fares-in-rural-england-drop-11-thanks-to-governments-2-fare-cap" href="https://www.gov.uk/government/news/bus-fares-in-rural-england-drop-11-thanks-to-governments-2-fare-cap">Bus fares in rural England drop 11% thanks to government's £2 fare cap - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0Weston-super-Mare, UK51.345606 -2.961262423.035372163821151 -38.1175124 79.655839836178842 32.1949876tag:blogger.com,1999:blog-9063899133880503225.post-83794394395932288902023-09-29T17:29:00.003+01:002023-09-29T17:29:37.900+01:0029th September 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk<br /><br /></a><strong>Start-up loans for new businesses</strong><br />Start Up Loans are personal loans designed to help new businesses begin trading. They were created to support would-be business owners who have struggled to secure finance from traditional lenders.<br /><br />To date, over 100,000 small firms have received loans, designed to help scale up activities. Delivered through the state-owned British Business Bank, the Start Up Loan scheme was developed and launched by the government in 2012 to help new and early-stage UK businesses without sufficient personal funds or support from friends and family to access affordable finance and mentoring support.<br /><br />Through this combined access to finance, more small businesses can develop and reach their potential, delivering economic growth and a boost to local communities.<br /><br />Start Up Loans differ from small-business bank loans in that they are personal loans for business purposes. They are also unsecured, which means you don’t have to use your house or any other asset as security to receive the money.<br /><br />Start Up Loans are provided by <a data-cke-saved-href="https://2020innovationtraining-my.sharepoint.com/personal/emma_gilbertsmith_2020innovation_com/Documents/Documents%201/Em%20work%20stuff/BUSINESS%20NEWS/25%20September/BN%20England%2025%20September%2023.docx" href="https://2020innovationtraining-my.sharepoint.com/personal/emma_gilbertsmith_2020innovation_com/Documents/Documents%201/Em%20work%20stuff/BUSINESS%20NEWS/25%20September/BN%20England%2025%20September%2023.docx" target="_blank" title="Link opens in a new window">the Start Up Loans Company</a>, which is funded by the UK Government. You can borrow between £500 and £25,000, payable over one to five years, at a fixed interest rate of 6% per annum.<br /><br />When you apply, you’re paired with a dedicated business adviser, who supports you with completing your application form. If your application is successful, your loan comes with the option of 12 months of <a data-cke-saved-href="https://www.startuploans.co.uk/mentoring/" href="https://www.startuploans.co.uk/mentoring/" target="_blank" title="Link opens in a new window">free mentoring</a>.<br /><br />To qualify for a Start Up Loan, you must meet the following criteria:<br /></span><ul><li><span style="font-family: arial;">You are aged 18 or over;</span></li><li><span style="font-family: arial;">You live in the UK;</span></li><li><span style="font-family: arial;">You are starting a new business, or your business is less than three years old;</span></li><li><span style="font-family: arial;">Your business is/will be based in the UK; and</span></li><li><span style="font-family: arial;">You have the right to work in the UK.</span></li></ul><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.british-business-bank.co.uk/finance-hub/start-up-loan/" href="https://www.british-business-bank.co.uk/finance-hub/start-up-loan/">Start Up Loans - British Business Bank (british-business-bank.co.uk)</a><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank"></a><br /><br /><strong>Creating value through innovation </strong><br />Innovation has generally been recognised as essential for value creation, both for individual companies and for the UK economy as a whole. The development of new ideas, processes, and technologies and their flow across different sectors is a significant driver of economic growth and productivity. <br /><br />Recently, innovation has also been identified as crucial to the transition of the economy away from fossil fuels and carbon-intensive business activities.<br /><br />There are many factors that affect whether and how businesses innovate, for example the availability of skills and capital and government policy measures such as tax incentives.<br /><br />However, none are more important that the company’s own culture, capabilities and internal systems – all of which are aspects of its governance. Unless companies are governed in a way that is conducive to innovation, they are unlikely to be in a position to take advantage of new opportunities.<br /><br />Our most innovative clients share some key characteristics:<br /></span><ul><li><span style="font-family: arial;">They invest in activities with uncertain outcomes for which the likely commercial return is difficult to quantify and the risk of failure is higher than normal;</span></li><li><span style="font-family: arial;">They benefit from the availability of company-specific skills, which may be highly specialised;</span></li><li><span style="font-family: arial;">They have a culture which encourages flexibility, experimentation, and a high level of individual decision making; and</span></li><li><span style="font-family: arial;">They require a longer-term time investment horizon than many other kinds of business activity.</span></li></ul><span style="font-family: arial;">Research and Development (R & D) is the process of taking an idea and transforming it into a fully-fledged product or procedure. R & D tax credits are a government incentive designed to encourage innovation across multiple industries. This is an opportunity for you to reduce your corporation tax bill or receive a refund from HMRC based upon the number of working hours and relevant costs your business dedicates to Research & Development. Under the scheme, SME’s can claim back up to 33% of the costs associated with R & D.<br /><br />If you are looking for long term finance to support innovation then you will need to ensure your management accounts are up to date, you make available current detailed lists of debtors and creditors, and you might need up to date projections before an expert will consider your application.<br /><u><br />Please talk to us about R & D tax credits and long-term finance, our independent experts have many years of experience and success in advising business across a wide range of sectors. </u><br /> <br /><strong>UK Manufacturing Climbs to 8th in World Rankings</strong><br />The UK’s manufacturing sector has climbed one place to eighth in the world rankings, overtaking France in the process, according to analysis of the latest official data published by Make UK.<br /><br />The figures are contained in the latest annual ‘Manufacturing – The Facts’ which contains a wide variety of data about the contribution of manufacturing to the economy, including <a data-cke-saved-href="https://link.businessnewswales.com/bwep" href="https://link.businessnewswales.com/bwep" target="_blank">exports</a>, sectoral breakdown, how the UK compares to other nations and salary levels.<br /><br />The data shows that in 2021 (the latest year for which global comparisons are available), UK manufacturing output was worth some $272bn, compared to $262bn for France, but behind Italy ($314bn). To put this data in context, China is the largest manufacturing nation worth $4.9tn, followed by the United States $2.5tn and Japan $995bn. Germany, the fourth highest, remains the largest European manufacturing country at $803bn.<br /><br />According to Make UK, while the climb up the rankings is encouraging, it is strongly cautioned that it is only the third time since 2002 that the UK has ranked above France and cannot be attributed to any post Brexit bounce or other specific factor.<br /><br />Separate data for 2022 from the ONS places UK manufacturing output at £224bn and Make UK believes that, if the Government commits to its call for a manufacturing target of 15% of GDP, (which Make UK estimates would add £142bn to the UK economy) then the sector could aim to match seventh-ranked Italy. With many competitor nations having their own versions of an Industrial Strategy, Make UK has also repeated its calls for a long-term, modern, and robust Strategy which could help turn the 15% ambition into a reality.<br /><br />The analysis by Make UK also shows that, contrary to popular opinion, manufacturing jobs are better paid than both services and the economy overall. <br /><br />According to official data the average salary in manufacturing in 2022 was £36,488, which compares to £33,402 for the economy overall and £32,676 for services.<br /><br />The North West remains the biggest manufacturing area of the UK, worth £28.2bn in output and employing 314,000 people. The sector accounts for almost 15% of North West economic output and 8% of regional employment.<br /><br />See: <a data-cke-saved-href="https://www.makeuk.org/insights/publications/uk-manufacturing-the-facts-2023#/" href="https://www.makeuk.org/insights/publications/uk-manufacturing-the-facts-2023#/">UK-Manufacturing-The-Facts-2023 | Make UK</a><br /> <br /><strong>New fire safety legislation</strong><br />From 1st October 2023 new fire safety legislation comes into effect. This will mean that many businesses and building owners need to check if and how this affects them to ensure they are complying with the regulations. The main changes are: <br /></span><ul><li><span style="font-family: arial;">All businesses will need to record a fire risk assessment and fire safety arrangements in full – regardless of the number of employees, and size or type of business;</span></li><li><span style="font-family: arial;">There are increased requirements for cooperation and coordination between Responsible Persons in multi occupied buildings or those where the occupier and owner are not the same person; and</span></li><li><span style="font-family: arial;">In residential buildings with two or more domestic premises, residents must be provided with information on the risks from fire and the fire safety measures provided to keep them safe.</span></li></ul><span style="font-family: arial;">See: <a data-cke-saved-href="https://www.gov.uk/government/news/new-fire-safety-guidance-comes-into-force-on-1-october-2023" href="https://www.gov.uk/government/news/new-fire-safety-guidance-comes-into-force-on-1-october-2023">New fire safety guidance comes into force on 1 October 2023 - GOV.UK (www.gov.uk)</a><br /><strong><br /></strong><strong>Small Business Saturday – “The Tour 2023”</strong><br />The iconic Small Business Saturday UK Tour is back again this November.<br /><br />The countdown to Small Business Saturday is officially on, as ‘The Tour’ returns to spotlight and supports small businesses all over the country.<br /><br />Once again supported by <a data-cke-saved-href="https://www.bt.com/skillsfortomorrow/" href="https://www.bt.com/skillsfortomorrow/" target="_blank">BT Skills for Tomorrow</a>, ‘The Tour’ will call at twenty three different towns and cities across the UK throughout November, visiting small businesses and shining a light on their contribution to the UK economy and local communities.<br /><br />It will also offer a jam-packed free daily programme of online events - including workshops, webinars, mentoring and inspiring entrepreneurial stories - open to all small businesses.<br /><br />Kicking off on Monday 30th October, The Tour will travel across the UK for five weeks and make use of electric vehicles – including a state-of-the-art eco-friendly electric bike from Stirling Eco – to limit emissions and reflect the sustainable switches many small business owners are making as part of their vital role in the race to net zero.<br /><br />See: <a data-cke-saved-href="https://smallbusinesssaturdayuk.com/the-tour" href="https://smallbusinesssaturdayuk.com/the-tour">Small Business Saturday UK | Another year making a Big Difference!</a><br /> <br /><strong>AI solutions to improve productivity in key sectors</strong><br />Innovate UK, part of UK Research and Innovation, will invest up to £32 million in innovation projects to support the development and adoption of artificial intelligence (AI) and machine learning (ML) solutions in the priority sectors of:<br /></span><ul><li><span style="font-family: arial;">Transport,</span></li><li><span style="font-family: arial;">Construction,</span></li><li><span style="font-family: arial;">Agriculture, and</span></li><li><span style="font-family: arial;">creative industries.</span></li></ul><span style="font-family: arial;">Your project can focus on one or more of the following:<br /></span><ul><li><span style="font-family: arial;">data driven decision making,</span></li><li><span style="font-family: arial;">automation of administrative tasks,</span></li><li><span style="font-family: arial;">project management optimization,</span></li><li><span style="font-family: arial;">supply chain optimisation and forecast models,</span></li><li><span style="font-family: arial;">waste management,</span></li><li><span style="font-family: arial;">intellectual property (IP) management, and</span></li><li><span style="font-family: arial;">design.</span></li></ul><span style="font-family: arial;">The competition is split into two strands, offering support to:<br /></span><ul><li><span style="font-family: arial;">single entities, and</span></li><li><span style="font-family: arial;">collaborative R&D projects.</span></li></ul><span style="font-family: arial;">For both strands, Innovate UK will fund industrial research projects and experimental development projects, as defined in the guidance on categories of research.<br /><br />In terms of project sizes, the total grant funding request for single entities must be up to £100,000. If you're applying for collaborative R&D funding, your project's total grant funding request must be between £700,000 and £1.2 million.<br /><br />This competition opens on Wednesday 27 September. The deadline for applications to both strands is 11am on Wednesday 8 November 2023.<br /><br />Potential applicants can join Innovate UK's briefing event on Friday 29 September 2023 to find out more about eligibility, the application process, and securing funding for impactful AI initiatives.<br /><br />See: <a data-cke-saved-href="https://iuk.ktn-uk.org/events/bridgeai-briefing-event-collaborative-ai-solutions-to-improve-productivity-in-key-sectors/" href="https://iuk.ktn-uk.org/events/bridgeai-briefing-event-collaborative-ai-solutions-to-improve-productivity-in-key-sectors/">BridgeAI Briefing Event: Collaborative AI Solutions to improve productivity in key sectors - Innovate UK KTN (ktn-uk.org)</a><br /> <br /><strong>Student finance bill becomes law</strong><br />New measures have been enshrined in law that will transform the student finance system, allowing colleges and universities to charge different fees for different courses for the first time and opening up opportunities for adults to study in a way that works for them.<br /><br />The Lifelong Learning Entitlement (LLE) (formerly the Lifelong Loan Entitlement) will give all adults from 2025 access to loans, worth up to £37,000 in today’s fees, that they can use flexibly over their working lives to upskill or retrain.<br /><br />The LLE will mean people will be able to take out a student loan to pay for full-time courses such as university degrees or Higher Technical Qualifications (HTQs), as well as for some individual modules of courses.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/transformative-student-finance-bill-becomes-law" href="https://www.gov.uk/government/news/transformative-student-finance-bill-becomes-law">Transformative student finance bill becomes law - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0tag:blogger.com,1999:blog-9063899133880503225.post-51956421370295483492023-09-22T14:33:00.001+01:002023-09-22T14:33:19.782+01:0022nd September 2023 – Hillmans Weekly Update<p><span style="font-family: arial;">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!</span></p><span style="font-family: arial;">Have a great weekend. <br /><br />Kind regards,<br /> <br />Steve<br /> <br /><strong>Steven Hillman </strong>BSc (Hons) FCA<br />Chartered Accountant<br />Tel: 01934 444100<br /><a data-cke-saved-href="https://www.hillmans.co.uk" href="https://www.hillmans.co.uk" target="_blank">https://www.hillmans.co.uk</a><br /><br /><strong>Children and Taxes</strong><br />Today, we tackle a subject that's a bit different but increasingly relevant—children and their side hustles (small, independent income streams).<br /><br />Gone are the days when a paper round was the only choice of work for children. In today's digital age, options range from setting up YouTube channels and streaming games to engaging in online e-commerce ventures and more. Therefore, understanding when or if your child needs to register and pay tax on these earnings has become a more common question among parents.<br /><br /><u>When Can Children Start Work?</u><br />In the UK, children can work part-time from 13 years old, although there are exceptions for certain industries like television and modelling. Full-time employment becomes an option after the child reaches the minimum school-leaving age of 16.<br /><br /><u>When Do Children Start Paying Taxes?</u><br />The UK tax system doesn't differentiate by age but rather by income. Therefore, a child who earns over £12,570 during the 2023/2024 tax year will be subject to income tax. Income from interest or dividends is usually attributed to the parents for tax purposes.<br /><br /><u>HMRC Registration: When and How</u><br />If your child's annual earnings from a side hustle business exceed £1,000 (this is sales income, not profit), you are required to register them for self-assessment with HMRC. Below this threshold, the £1,000 trading income allowance applies, making the earnings tax-free.<br /><br />Registering a minor for self-assessment can be a bit tricky since HMRC typically asks for a National Insurance number, which your child will only get at 16. There is a workaround, so please feel free to reach out to our office for further guidance on this.<br /><br /><u>National Insurance Number: The 16-Year Milestone</u><br />Your child will automatically be assigned a National Insurance Number around their 16th birthday. From this point, they'll start paying National Insurance contributions if they earn above £12,570.<br /><br /><u>Don't Miss the Registration Deadline</u><br />You must register your child with HMRC by the 5th of October in their second tax year of working. For instance, if your child started working in January 2023, the registration deadline would be the 5th of October 2023.<br /><br /><u>Closing Thoughts</u><br />We hope this provides some clarity on a topic that's becoming more common in family households across the UK. If you have further questions or need personalised advice, we are always here to assist you.<br /><br /><strong>The Autumn Statement is scheduled for 22 November 2023</strong><br />The Chancellor of the Exchequer, Jeremy Hunt, has confirmed that the Autumn Statement will be on 22 November 2023. The Autumn Statement can affect tax policy, benefits, and much more. The Chancellor will make his announcement to Parliament, setting out the Government’s plans on all matters fiscal and economic. Interestingly, this could be the Chancellor’s last statement before the next General Election, depending on the time frame that the government chooses. <br /><br />Included in the announcement was the news that ‘The Office for Budget Responsibility (OBR) have been commissioned to prepare an economic and fiscal forecast to be presented to Parliament alongside his Autumn Statement.’<br /><br />Rumours have already started about what the Chancellor will – and won't – announce, so what are some of the likely changes?<br /><br />Mr Hunt is already playing down the prospect of income tax cuts and he insists inflation needs to come down further from its rate of 6.4%, he has recently stated that to put money into people’s pockets quickly, the fastest thing would be to deliver on the pledge to halve inflation. Indeed, some news outlets are predicting a tax rise in a number of other areas.<br /><br />He has lately talked of a four-point growth plan focusing on enterprise, education, employment, and investment opportunities. <br /><br />We could see some promises around the cost of living, with energy bills still relatively high and winter approaching.<br /><br />Pensions and benefits are always a big focus of any financial statement, though there are not many rumours about potential changes. We predict the ‘triple lock’ on pensions will stay in place for now and pensioners can expect around an 8% increase to their state pension. Rumours flourish that this may change after the next general election. There may be other changes to pensions reliefs and benefits, and we will keep you up to date as and when we hear any news. <br /><br />The government is currently analysing responses to several tax consultations that closed in the summer. These include reform of the Construction Industry Scheme (CIS), expanding the cash basis for unincorporated businesses, and merging the two Research &Development (R&D) schemes for limited companies into one. It’s reasonable to expect the Chancellor to make announcements in these areas.<br /><br />Alongside any announcements to tax policy, the Chancellor will be looking at budgets for schools, the police, hospitals, and the military. Expect to see some changes to these.<br /><u><br />Whatever happens on the 22 November, we can be sure that tax rules and business regulations are progressively becoming more complicated. Getting expert help is essential. Please contact us about planning for change. We can provide a full tax review which will help identify the marginal tax traps waiting for you – and help you to avoid them.</u><br /> <br /><strong>Do you know of anyone starting a business?</strong><br />Then ask us about our comprehensive guide to the financial, tax, and accounting considerations of starting a business, “The New Business Kit”, which we offer free to start ups or those who have recently made the jump into business ownership.<br /><br />The guide helps start-ups think about:<br /></span><ul><li><span style="font-family: arial;">Selecting a legal entity;</span></li><li><span style="font-family: arial;">Registering with the tax authorities;</span></li><li><span style="font-family: arial;">Accounting and bookkeeping;</span></li><li><span style="font-family: arial;">Value Added Tax;</span></li></ul><ul><li><span style="font-family: arial;">Payroll taxes and pensions;</span></li><li><span style="font-family: arial;">Income and corporation tax;</span></li><li><span style="font-family: arial;">Cash planning and forecasting;</span></li><li><span style="font-family: arial;">Insurance;</span></li><li><span style="font-family: arial;">Selecting professional advisers; and</span></li><li><span style="font-family: arial;">Digital accounting systems.</span></li></ul><span style="font-family: arial;">In addition, there is a section of useful names, addresses, and telephone numbers. Just ask – it is free!<br /> <br /><strong>UK rejoins Horizon Europe </strong><br />UK scientists now have access to the world’s largest research collaboration programme, Horizon Europe, which was lost as a result of Brexit. <br />From 7 September, UK researchers can apply for grants and bid to take part in projects under the Horizon programme, with certainty that the UK will be participating as a fully associated member for the remaining life of the programme to 2027.<br /><br />Once adopted, the UK will also be able to join the governance of EU programmes – which the UK has been excluded from over the last three years – ensuring we can shape collaboration taking place next year. UK researchers will also be able to lead consortia in the next work programme of Horizon Europe projects.<br /><br />The UK will also associate to Copernicus, the European Earth Observation programme. This will provide the UK’s earth observation sector with access to unique data – valuable to helping with early flood and fire warnings, for example – and with the ability to bid for contracts, which they haven’t been able to access for three years since Brexit.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-joins-horizon-europe-under-a-new-bespoke-deal" href="https://www.gov.uk/government/news/uk-joins-horizon-europe-under-a-new-bespoke-deal">UK joins Horizon Europe under a new bespoke deal - GOV.UK (www.gov.uk)</a><br /> <br /><strong>ICO consultation on the draft biometric data guidance</strong><br />The Information Commissioner's Office (ICO) has produced guidance on biometric data and biometric technologies.<br /><br />The draft guidance looks at the definition of biometric data under the <a data-cke-saved-href="https://www.nibusinessinfo.co.uk/content/uk-general-data-protection-regulation-uk-gdpr" href="https://www.nibusinessinfo.co.uk/content/uk-general-data-protection-regulation-uk-gdpr" title="Guidance on data protection in the UK">UK General Data Protection Regulation (UK GDPR)</a> and how data protection law applies when using biometric recognition systems.<br /><br />Biometric recognition systems are tools used by businesses to verify customers' identity in the digital world. For example, facial recognition technology, voice recognition, fingerprint scanning, etc.<br /><br />The ICO's draft guidance covers:<br /></span><ul><li><span style="font-family: arial;">what biometric data is;</span></li><li><span style="font-family: arial;">when it is considered special category data;</span></li><li><span style="font-family: arial;">its use in biometric recognition systems; and</span></li><li><span style="font-family: arial;">the data protection requirements you need to comply with.</span></li></ul><span style="font-family: arial;">This guidance is for organisations that use or are considering using biometric recognition systems. It is also for vendors of these systems. The aim of the guide is to help businesses and organisations understand the law and the ICO's recommendations for good practice.<br /><br />See: <a data-cke-saved-href="https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/guidance-on-biometric-data/" href="https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/guidance-on-biometric-data/">Guidance on biometric data | ICO</a><br /> <br /><strong>National Manufacturing Day 2023</strong><br />National Manufacturing Day is on Thursday 28 September 2023. Manufacturers throughout the UK will once again be opening their doors to members of the public who will be invited into factories and sites for a behind-the-scenes look at how Manufacturers' facilities work, as part of this UK-wide Open House.<br /><br />Local communities will have the chance to see the potential careers and jobs on offer within the wonderfully diverse manufacturing sector, as employers engage with all age groups - from school leavers, graduates, people looking to reskill, and the local residents. <br /><br />For Make UK and Manufacturers, this is an opportunity to showcase the diversity of a truly fascinating sector, the range of highly skilled jobs on offer, and the amazing opportunities for reskilling and career development within manufacturing in the UK.<br /><br />Join the ever-growing number of employers who have pledged to open their doors on National Manufacturing Day and help to grow the awareness of manufacturing and the fantastic careers which can be made for the next generation.<br /><br />See: <a data-cke-saved-href="https://www.nationalmanufacturingday.org/" href="https://www.nationalmanufacturingday.org/">Home | NMD 2023 (nationalmanufacturingday.org)</a><br /> <br /><strong>AI Safety Summit </strong><br />The AI Safety Summit will take place on the 1st and 2nd November at Bletchley Park.<br /><br />The summit will bring together key countries, as well as leading technology organisations, academia, and civil society to inform rapid national and international action at the frontier of Artificial Intelligence (AI) development.<br /><br />The summit will focus on risks created or significantly exacerbated by the most powerful AI systems, particularly those associated with the potentially dangerous capabilities of these systems. For example, this would include the proliferation of access to information which could undermine biosecurity. The summit will also focus on how safe AI can be used for public good and to improve people’s lives – from lifesaving medical technology to safer transport.<br /><br />The summit will draw on a range of perspectives both prior to and at the event itself to inform these discussions. The UK government has stated that it looks forward to working closely with global partners on these issues to make frontier AI safe, and to ensure nations and citizens globally can realise its benefits, now and in the future. As part of an iterative and consultative process, the UK is now sharing the five objectives which will be progressed. These build upon initial stakeholder consultation and evidence-gathering and will frame the discussion at the summit:<br /></span><ul><li><span style="font-family: arial;">a shared understanding of the risks posed by frontier AI and the need for action;</span></li><li><span style="font-family: arial;">a forward process for international collaboration on frontier AI safety, including how best to support national and international frameworks;</span></li><li><span style="font-family: arial;">appropriate measures which individual organisations should take to increase frontier AI safety;</span></li><li><span style="font-family: arial;">areas for potential collaboration on AI safety research, including evaluating model capabilities and the development of new standards to support governance; and</span></li><li><span style="font-family: arial;">showcase how ensuring the safe development of AI will enable AI to be used for good globally.</span></li></ul><span style="font-family: arial;">Accelerating AI investment, deployment and capabilities represents enormous opportunities for productivity and public good. The emergence of models with increasingly general capabilities, and step changes in accessibility and application, have created the prospect of up to $7 trillion in growth over the next 10 years and significantly faster drug discovery.<br /><br />However, without appropriate guardrails, this technology also poses significant risks in ways that do not respect national boundaries. The need to address these risks, including at an international level, is increasingly urgent.<br /><br />Individual countries, international organisations, businesses, academia, and civil society are already taking forward critical work and driving international collaboration on AI including at the UN, Organization for Economic Co-operation and Development (OECD), Global Partnership on Artificial Intelligence (GPAI), Council of Europe, G7, G20, and standard development organisations. The summit will build on these important initiatives by agreeing practical next steps to address risks from frontier AI. This will include further discussions on how to operationalise risk-mitigation measures at frontier AI organisations, assessment of the most important areas for international collaboration to support safe frontier AI, and a roadmap for longer-term action.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/uk-government-sets-out-ai-safety-summit-ambitions" href="https://www.gov.uk/government/news/uk-government-sets-out-ai-safety-summit-ambitions">UK government sets out AI Safety Summit ambitions - GOV.UK (www.gov.uk)</a><br /> <br /><strong>New Hospitality Employment Programme</strong><br />The pilot scheme, set to launch in Liverpool before being rolled out to other major cities over the coming months, will see benefit claimants gain an industry recognised accreditation, endorsed by industry leaders including Greene King, Marriot Hotels, and ACC Liverpool.<br /><br />The Hospitality Sector-based Work Academy Programme (SWAP) combines a programme of learning launched by the Department for Work and Pensions (DWP) in collaboration with UKHospitality.<br /><br />The scheme is designed to provide tailored training for jobseekers from industry experts, allowing them to move into a career in hospitality, while boosting workforce participation in the sector and helping to grow the economy.<br /><br />Benefit claimants will complete qualifications and accredited training in areas such as health and safety, food safety, licensing, and conflict resolution to add to their Hospitality Skills Passport – a digital pass which can be added to CVs to show employers jobseekers have the skillset required by the sector. <br /><br />They will also receive training in confidence and assertiveness to build personal skills and strength.<br /><br />The programme will culminate with a guaranteed job interview for all participants, helping jobseekers with an opportunity to apply their new skills and a pathway to apprenticeships.<br /><br />See: <a data-cke-saved-href="https://www.gov.uk/government/news/government-joins-forces-with-industry-to-create-next-generation-of-hospitality-leaders" href="https://www.gov.uk/government/news/government-joins-forces-with-industry-to-create-next-generation-of-hospitality-leaders">Government joins forces with industry to create next generation of hospitality leaders - GOV.UK (www.gov.uk)</a></span>Hillmans Chartered Accountantshttp://www.blogger.com/profile/09383589308243296786noreply@blogger.com0