Proposed Changes to CGT on Separation

In response to a recommendation by the Office of Tax Simplification the Government have introduced draft legislation for inclusion in Finance Bill 2023 that extends the no gain/no loss rule when a couple separate.

Under the current rules the no gain/no loss rule that means that there is no CGT on transfers of assets between spouses or civil partners only applies up to the end of the tax year in which they separate. The divorce settlement or court order that transfers assets between the couple often takes place many months after the separation and may lead to CGT being payable.

The main change proposed is that separating spouses or civil partners will be given up to three years after the year they cease to live together in which to make no gain/no loss transfers. Most divorces would be concluded within this period.

No gain/no loss treatment will also apply to assets transferred as part of a formal divorce agreement.

Advisory Fuel Rates

The figures in the table below are the HMRC suggested reimbursement rates for employees' private mileage using their company car from 1 September 2022. Remember that provided all private fuel is fully reimbursed the fuel benefit does not apply. 

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 tax free.

Where there has been a change the previous rate is shown in brackets.

Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new rates apply.

 

Back to School - Childcare Vouchers or Tax-Free Childcare Account

There continues to be poor take-up of the Government’s Tax-Free Childcare Accounts which provide a 25% subsidy towards the cost of childcare.

The system operates by topping up savings of up to £8,000 per child by 25%, potentially an extra £2,000 from the Government to spend on qualifying childcare. The scheme applies to children under 12 and the account can be used to pay nursery fees, breakfast clubs, after school clubs and registered childminders. In contrast childcare vouchers may be used to pay for childcare up to age 16. Despite the PAYE and NIC advantages not all employers provided childcare vouchers.

Tax free childcare accounts are available to both employees and the self-employed. To be eligible the parent generally needs to be working and earning at least the National Minimum Wage or Living Wage for 16 hours a week on average. For a 3 months period they need to earn at least £1,976 and they are not eligible if their adjusted net income is more than £100,000 a year.

We are recruiting! Bookkeeper Wanted

We are looking for a bookkeeper to join our accounting firm in Worle. They must be great with numbers, experienced in bookkeeping and VAT (Xero or Sage), and passionate about providing a professional and first-class customer service experience.

The position offers the opportunity to work closely with some of the area's most innovative and well-known businesses. We are a friendly, close-knit team and provide solid career prospects and progression for staff members.

If you know any family members, friends or associates that you think may be a good fit for this position, please ask them to contact me directly at steve@hillmans.co.uk. I'd love to speak to them! Many thanks.

The full job description can be found here: https://www.hillmans.co.uk/careers

Employers should prepare for a warmer future

The Health and Safety Executive (HSE) is advising businesses to think about how they need to adapt to warmer working conditions for their staff.

After last month’s record-breaking temperatures and with more hot weather this month, HSE is asking employers to ensure extreme heat becomes part of their long-term planning.

With temperatures reaching 40^oC in some parts of the UK in July, adapting to climate change is something all businesses will need to consider as warmer weather becomes more frequent.

Employers have a legal obligation under the Management of Health and Safety at Work Regulations to assess risks to the health and safety of their workers. They must review the risk controls they have in place and update them if needed. This includes risks from more frequent extreme weather, such as heatwaves.

While there is no maximum temperature for workplaces, all workers are entitled to an environment where risks to their health and safety are properly controlled. Heat is classed as a hazard and comes with legal obligations like any other hazard.

The Workplace (Health, Safety and Welfare) Regulations require employers to provide a reasonable temperature in the workplace.

John Rowe, HSE’s Acting Head of Operational Strategy, said:

“We expect employers to take this recent weather event as the prompt to review how they assess the risk of high temperatures in their workplace and identify now those changes that will future proof them.”

“All workplaces need to acknowledge that the working environment is changing. There are low-cost adaptations to the structure of work, but things like improved ventilation and air conditioning should also be considered, which will involve investment in the workplace.”

“Extreme heat that we have witnessed of late isn’t going to stop and we want employers to plan and respond to this now.”

Here, you can find more guidance on taking practical steps to work safely in hot conditions:

Temperature at work

Temperature: employees guide

Temperature: What the Law says

Temperature: Outdoor working

Workers’ health and safety

See: Heat warning: Employers must prepare for a warmer future | HSE Media Centre

 

Support and manage disability and health at work

Many employers are currently facing challenges in recruiting the people they need to help their businesses survive and prosper. It has never been more important for those employers to keep and develop the people they already have. It’s therefore crucial that businesses have the tools they need to prevent long-term absence and avoidable job loss because of ill health or disability.

The UK Government is testing a new online service for employers, which provides advice and guidance on managing health and disability in the workplace and also explains your legal obligations and good practice.

This may be particularly helpful for smaller businesses without an in-house HR function or access to an occupational health service.

By taking part, you will receive free information and guidance on disability and health-related employment issues. You could use it to help manage a current case, or simply take a look around the site to see what’s useful and identify improvements.

See: Support and manage disabled employees and employees with health conditions at work – Support and manage disabled employees and employees with health conditions at work – GOV.UK (dwp.gov.uk)

Does your company have a shareholders agreement?

For limited companies, when it comes to making decisions, company law states that shareholders who own more than 50% can pass a motion at a company meeting regardless of the views of other shareholders. If a shareholder(s) owns more than 75% of the shares, they control the company outright and can veto the decisions of all other shareholders. 

This may not suit all business situations, especially where you have two or more founders holding equal share capital or a group of owners with varying amounts of capital, some of whom are directors and some who are not, but who are all working together for the company’s success.

A shareholders’ agreement is entered into between all or some of the shareholders in a company. It regulates the relationship between the shareholders and the management of the company, ownership of the shares and the protection of the shareholders. They also govern the way in which the company is run.

The agreement can help define how a business makes decisions for the benefit of all owners, and is recommended where:

•       A small number of owners want to reach collective and fair decisions for the benefit of all.

•       Some owners may want to be able to influence decisions that are particularly relevant to them.

•       Some shareholders may not be directors and cannot influence operations on a day-to-day basis.

Typically, it is seeking to deal with the three “D’s” of death, disability and disagreement. It may also cover a variety of other significant areas, for example, retirement and buyback of shares. 

Key areas for any shareholder agreement

This is not a comprehensive list as each situation is different, but it may help you collect the thoughts of all shareholders before you draw up an agreement.

1.    Company details including structure, directors and officers

2.    Purpose and aims of the company

3.    Equity split of shareholders

4.    Parties to the agreement

5.    Shareholders' rights, obligations and commitments

6.    Decision-making processes on major issues, required voting majorities and day-to-day operating decisions

7.    Restrictions on the sale of shares

8.    Rights of first refusal and pre-emptive rights to acquire shares on leaving, retirement, death or disability

9.    Death, disability and other retirement compensation payments

10.  Management contracts, director approval and remuneration amounts

11.  Insurance and other protective requirements

12.  Professional advisers and change of professional advisers

13.  Dispute resolution

14.  Changes to and termination of the agreement

15.  Buy out provisions for leaving shareholders

16.  Valuation of shares on changes and valuations of the business

Our view is that a shareholders agreement is an essential document for any limited company and an equitably drafted agreement should provide comfort to all parties.

Please talk to us if you need help in planning for an agreement, especially where there are several shareholders, a new company is being formed, a shareholder wants to sell their shares or pass them to their children, someone is nearing retirement, or the company has borrowed money from a shareholder. We can help with share and company valuations and put the shareholders' wishes into an agreement with a local solicitor.

Back to school – childcare vouchers or tax-free childcare account?

Tax-free childcare accounts will gradually replace childcare voucher schemes as no new schemes could be set up after 4 October 2018. Those within voucher schemes continue to be eligible until their child is aged 16, provided the employer is willing to continue operating the scheme.

Many organisations provided the vouchers by way of salary sacrifice and there were tax and NIC advantages for both employers and employees. Despite the PAYE and NIC advantages, not all employers provided childcare vouchers. Depending upon when they joined the voucher scheme, employees could be provided with vouchers worth up to £55 a week (£2,860 p.a.) free of tax and NICs.

For more details see: Help paying for childcare: Childcare vouchers and other employer schemes - GOV.UK (www.gov.uk)

However, with many employees working from home during the pandemic and with the move to hybrid working, many families found that they were not using all of their vouchers and are choosing to leave the scheme and use the Government’s Tax-Free Childcare account instead. Note that that scheme is generally only available to pay for care for children up to age 12.

Which scheme an employee is better off with depends on their personal situation. They can use the Government’s childcare calculator to work out which type of support is best for them.

One other major difference between the two schemes is that Tax-Free Childcare accounts are available to the self-employed as well as to employees.

There continues to be poor take-up of the Government’s Tax-Free Childcare Accounts which provide a 25% subsidy towards the cost of childcare. The system operates by topping up savings of up to £8,000 per child by 25%, potentially an extra £2,000 from the Government to spend on qualifying childcare. The scheme generally applies to children under 12 and the account can be used to pay nursery fees, breakfast clubs, after-school clubs and registered childminders.

To be eligible, the parent generally needs to be working and earning at least the National Minimum Wage or Living Wage for 16 hours a week on average. In a 3-month period, they need to earn at least £1,976 and will not be eligible if their (or their partner's) adjusted net income is more than £100,000 a year.

Note that the two schemes are mutually exclusive, and employers must stop giving their employees childcare vouchers with income tax and NIC relief if the employee informs them that they’ve started using the Tax-Free Childcare scheme. Employees must notify their employer within 90 days of their application for a Tax-Free Childcare account. The employer may need to stop or change the employee’s salary sacrifice arrangement and must also update the employee’s contract and payroll.

Useful personal finance tips to manage inflation

Households need to brace for a prolonged period of high inflation and further interest rate rises. The Governor of the Bank of England, Andrew Bailey, has warned that he will take forceful action to tackle inflation, already running at 9.4% and forecast to hit double figures later this year. He defended the decision last week to raise interest rates, saying there is a "real risk" of soaring prices becoming "embedded". Interest rates rose to 1.75% - the biggest rise in 27 years - with inflation now set to hit more than 13%. The UK is forecast to fall into recession this year, with the longest downturn since 2008 predicted. Increasing interest rates is one way to try to control inflation as it raises borrowing costs.

Inflation is a problem for most of us. Savers find that the value of their cash is being rapidly eroded. At 10% inflation, the £100 you save today will only buy £90 worth of goods in a year’s time. Many people find that their household budgets are stressed. And even borrowers, who might be expected to benefit from inflation, suffer when inflation triggers increases in interest rates. So what can you do to protect your finances and combat inflation?

1.   Protect your retirement income.

Inflation has an enormous impact on how long retirement savings will last. The income that seems more than adequate when your start your golden years can look less than generous after 10 years of inflation, and a recipe for misery after 20.  A basic level annuity will mean having the buying power of your income eroded every year. An inflation-linked annuity will start off providing a much smaller income, but one that keeps increasing over time. A drawdown pension – where your pension pot remains invested and you draw down an income as you need it – is more flexible. However, you will still need to take care to avoid running out of cash.

2.   Avoid locking your cash savings away.

Savers should benefit when higher inflation leads to the Bank of England increasing the Bank Rate. But beware – although the rates offered by savings providers are rising, they have not yet done so enough to come anywhere near inflation.

However, with the Bank Rate forecast to rise further and with savings deals forecast to follow, there could be better deals to be had over the next few months. Shop around for the best deal and avoid locking your savings into a long-term deal because it could mean missing out on much better rates in the near future. 

3.   Look at your investment strategy.

In an inflationary world, investing – where your cash is used to buy something which could appreciate in price – could be more rewarding than saving.

While inflation erodes the value of cash savings, it actually works to boost the value of some investments. But how should you invest? Bond investment becomes less attractive in times of inflation, as the income provided by bonds is subject to inflation.

Investors can protect themselves by buying index-linked bonds, where the interest paid rises in line with inflation. Some business sectors will suffer during inflationary periods. Oil and mining companies, however, tend to do well as rising commodity prices are good for their bottom lines. Utility groups often pay dividends linked to inflation. However, inflation could be bad for others such as retailers and supermarkets, which may lack the ability to increase prices. Luxury goods may be shunned when households tighten their belts.

4.   Secure a low-rate mortgage before rates rise.

Inflation has already triggered rate rises, and mortgages are substantially more expensive than they were last year. This process could continue – the Bank of England has hinted as much. To avoid increasing interest costs, which could mean that buying your home becomes difficult or even impossible, it makes sense to secure the lowest rate you can, fixed for the longest possible period.

5.   Get some expert help.

Managing money in inflationary times can be challenging, but the challenges can be much more manageable if you have an expert to call. Talk to your financial adviser, or if you don’t have one, see: Choosing a financial adviser | MoneyHelper

 

Managing your cash in tough times

With ever-increasing supplier prices, a rise in interest rates and a looming recession, managing your business's cash and understanding the flow are now vital tools in maintaining resilience and being able to adopt flexible strategies for success.

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 into the health of specific products or services and overall market patterns.

Some types of businesses 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 straightforward 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:

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.

Next, create a yearly budget and look where cash could become tight and months where you can save to cover 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.

Finally, make sure you collect your money from those who owe you quickly. Reward customer loyalty by offering early bird discounts, and 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 upfront deposits or payments.

Talk to us about preparing a funds flow statement and annual budget so that you can work on your business for maximum success!  

Employment status rules still lack clarity

At the end of July, the government finally got around to publishing its response to the 2018 consultation on employment status. The consultation took place as the result of government concerns over false self-employment, particularly in the “Gig” economy. Employers and professional bodies have heavily criticised the updated guidance as it still lacks clarity. There is even separate guidance to employers and engagers dealing with employment rights and tax status:

Employment status and rights: checklist for employers and other engagers - GOV.UK (www.gov.uk)

Check employment status for tax - GOV.UK (www.gov.uk)

Part of the problem is the lack of detail in employment and tax legislation, which means that the law has to be interpreted by the courts. The HMRC Check Employment Status for Tax (CEST) tool in particular has been criticised by tax advisors for being too simplistic and biased towards the presumption of employment.

Whether a worker is classified as employed or self-employed has important implications in terms of their employment rights and also their tax treatment. The self-employed tend to pay less tax and National Insurance Contributions (NICs) at the expense of foregoing employment rights such as sick pay, holiday pay, pensions and the right to bring an action for unfair dismissal. Deciding whether an individual is employed or self-employed is not a matter of choice. It will depend upon the particular facts surrounding the relationship.

Getting employment status wrong can have serious tax consequences. If an organisation gets it wrong and treats an individual as self-employed when they should be treated as an employee, then they are liable for the PAYE and NICs that should have been deducted. This traditionally has led to many organisations insisting that the individual should supply their services via an agency or their own personal service company (PSC) to avoid this PAYE risk.

The ”off-payroll” working rules that were extended to large and medium-sized engagers from April 2021, now require engagers to determine whether a worker operating through a PSC would be treated as an employee if directly engaged and, if so, deduct PAYE and NICs. That worker is thus taxed as if an employee, but without full employment rights – the worst of all worlds.

Employment Agencies may be liable for the tax of PSCs

As mentioned above, many organisations have traditionally requested that workers supply their services via a PSC or an agency, because up until 2021, that avoided the organisation’s PAYE risk. The IR35 rules meant that if the individual would have been treated as an employee when considering the hypothetical contract between the worker and end-user client, the PAYE and NIC would be payable by the PSC and not the end-user client. Pursuing thousands of PSCs is very expensive and inefficient for HMRC.

When the Onshore Employment Intermediaries: False Self-Employment Legislation (s44 ITEPA 2003) was introduced, it had been considered that this would not apply to the situation where an employment agency supplied workers that operate through PSCs. Many felt that the rules only applied to self-employed individuals and that the IR35 rules would take priority if the worker had their own company. However, a recent Tax Tribunal case (K5K Ltd v HMRC) involving the supply of agency nurses and healthcare workers has determined that the agency can be liable for PAYE and NICs. It is clearly more efficient for HMRC to pursue the agency for PAYE and NICs rather than numerous PSCs.

Employment status is clearly a complex area so if you need advice please contact us.

Al fresco dining to continue for businesses

Pubs, cafes and restaurants will be able to take advantage of the warm weather and keep serving customers al fresco. Temporary changes brought in during COVID-19, which made it quicker, easier and cheaper for businesses to get a licence to serve food and drink on pavements and pedestrianised roads, have been extended. The extension will continue until the changes are made permanent in the spring.

The change was first introduced to help businesses keep operating during the pandemic and was widely welcomed by the public, café owners and pub landlords.

The government will make these changes permanent in the Levelling Up and Regeneration Bill.

The announcement will make sure that businesses can keep operating outside by extending the temporary provisions that were due to expire in September before the permanent changes become law.

See: Al fresco dining boost for businesses - GOV.UK (www.gov.uk)

The Great British Businesswoman Awards 2022

The Great British Businesswoman Awards brings together the whole Great British Businesswoman Series community to celebrate the women who are changing the face of business across the United Kingdom.

The awards showcase the business role models, advocates and mentors, as well as the inspirational women leading businesses and those ascending to new heights! More than just an awards ceremony, the Great British Businesswoman Awards is a year-round programme of engagement, delivering touch points throughout the year to support and champion.

The awards focus on community and collaboration by bringing together those who make it their business to inspire female business leaders, and are looking to support, celebrate and mentor the next generation via our winners, judging panel and supporters.

See: Great British Businesswoman Series | About The Awards (freshbusinessthinking.com)

More Details of MTD For Income Tax Reporting

HMRC are currently consulting on the precise details of what needs to be reported each quarter. As expected, it seems the accounting software will need to record and report income and expenditure in the same categories currently used for self-assessment.

The main categories are:

• Turnover/gross rents

• Costs of goods sold

• Materials 

• Wages and salaries of employees

• Sub-contractor costs

• Rent, rates, power and insurance

• Repairs and renewals

• Professional fees

• Telephone and other office costs

• Interest on bank and other loans

• Motor and travel expenses

HMRC also propose that those businesses with turnover below the £85,000 VAT threshold will only need to report the totals of income and expenditure each quarter which will be a welcome simplification for small businesses.

Making Tax Digital Update

Making Tax Digital (MTD) for VAT has been with us since April 2019, with the extension to all VAT registered businesses from April 2022. 

The next roll-out will be the introduction of MTD for income tax which is scheduled to start in April 2024. 

The obligation to keep records in a digital format and report information quarterly will apply to unincorporated businesses and property landlords with gross income from all business activities in excess of £10,000 a year. 

Businesses operating MTD for VAT may already have ‘functional compatible software’ for income tax purposes but will need to get into a new routine for income tax reporting.

The changes will be more significant for property landlord businesses, most of whom are not VAT registered and so have not already been through MTD for VAT. 

If you believe you need a new digital accounting system for your business, there are a number of MTD compliant accounting software packages on offer and we can advise you on the one that is most appropriate for your business. There are even relatively low-cost software packages specifically designed for property rental businesses.

Companies House Counter Services will not be re-opening

In response to the coronavirus pandemic, the Companies House office in London and the public counters in Cardiff, Belfast and Edinburgh were closed.

As Companies House continues to transform its services to provide a fully digital experience, it has been decided that its public counters will not re-open.

See: Companies House London office and counter services will not be re-opening - GOV.UK (www.gov.uk)

Attracting and Retaining Key Staff with Shares

In the increasingly competitive jobs market, it is important that employers are able to attract and retain talented people to help them grow their business. Within certain sectors, the opportunity to participate in the equity of the organisation that they work for is something that more employees are seeking and those employers that do not offer such opportunities could put themselves at a disadvantage when looking to retain and recruit.

For corporate employers, there are currently four HMRC ‘tax-advantaged’ schemes that provide employees and employers with income tax and National Insurance Contribution (NIC) advantages. The four tax-advantaged schemes are currently:

• Share Incentive Plan (SIP) and Save As You Earn (SAYE or Sharesave) schemes, which generally need to be made available to all employees after a qualifying period. 

• Probably more appropriate for SMEs are the Company Share Option Plan (CSOP), and the Enterprise Management Incentives (EMI) share option scheme as these are discretionary schemes which allow the management to award options to selected employees and directors that the organisation is looking to incentivise.

Shares acquired under these four schemes are generally free from income tax and NICs if correctly structured. Depending on the scheme used, the employer may also qualify for a corporation tax deduction for the difference between the price paid by the employee for their shares and the market value.

The scheme of first choice, provided the employer company qualifies, is currently the EMI share option scheme as it allows the employee or director to hold options over up to £250,000 of the employing company’s shares based on the market value when the option was granted. The shares, once acquired, potentially qualify for Capital Gains Tax business asset disposal relief when sold and thus the first £1million of gains would be taxed at just 10%.

The acquisition of shares and securities in connection with an employment other than through one of the four schemes outlined above are commonly referred to as ‘unapproved’ or ‘taxed’ schemes. This means that neither the employee nor the employer benefit from any income tax or NIC advantages. This could result in a significant income tax and NIC charge.

Please contact us if you would like to discuss introducing a share incentive scheme to help you attract and retain talented staff.

Beware Rogue R&D Consultants

In recent years HMRC have identified and successfully challenged a number of spurious claims for Research and Development (R&D) tax credit relief made by purported ‘R&D Consultants’.  

Many of these claims have been for projects that did not satisfy the criteria for the tax relief and some included overstated expenditure and consequently have been abusing the scheme.

The R&D rules offer legitimate claims generous tax breaks. For a company that is a Small or Medium-sized Entity (SME), qualifying expenditure attracts a tax deduction of 230% of the amount spent which can then be traded in for a tax refund of 14.5% if the company is loss making. Thus £100,000 of qualifying R&D expenditure would potentially result in a tax refund to a loss-making company of £33,350. Most R&D consultants charge a fee based on the amount of the claim.

To qualify for R&D relief, the expenditure must be incurred as part of a specific project to make an advance in science or technology. The project must relate to the company’s trade - either an existing one, or one that the directors intend to start up, based on the results of the R&D.

Further, the company must be able to explain how a project:

• looked for an advance in science and technology;

• had to overcome uncertainty;

• tried to overcome this uncertainty; and

• could not be easily worked out by a professional in the field.

In summary, R&D claims are often very worthwhile, but a number of strict requirements must first be met. If you are approached by an R&D Consultant or otherwise believe you may be incurring eligible R&D expenditure, please talk to us and we will help you file a compliant claim.

New reforms making it unlawful for employers to withhold tips from staff

New legislation to make it unlawful for employers to withhold tips from staff means that customers will be certain that all tips go to hard-working employees. The Tipping Bill will benefit more than 2 million workers and, for the first time, will give them the right to see an employer’s tipping record.

Despite most hospitality workers (many of whom earn the National Minimum Wage) relying on tips to top up their pay, there are still businesses that fail to pass on service charges from customers to their staff.

The Employment (Allocation of Tips) Bill will ensure that all tips go to staff by making it unlawful for businesses to hold back service charges from their employees.

See Cash boost for millions of workers as government backs new law to ensure all staff keep their tips - GOV.UK (www.gov.uk)

Parents whose babies require neonatal care to receive paid leave under a new law

Thousands of parents whose babies require specialist care after birth will be able to take additional paid time off work, under new legislation backed by the government.

A baby who is born prematurely or sick will receive neonatal care in a hospital or another agreed care setting – often for a prolonged period of time. This can put parents in a difficult position of having to use their existing leave entitlements to be by their baby’s side, or worse, having to return to work while their baby is still receiving hospital care.

The Neonatal Care (Leave and Pay) Bill, introduced by Stuart C McDonald MP and backed by the government, will allow parents to take up to 12 weeks of paid leave, in addition to other leave entitlements such as maternity and paternity leave, so that they can spend more time with their baby at what is a hugely stressful time.

Once in law, neonatal care leave will be available to employees from their first day in a new job and will apply to parents of babies who are admitted into hospital up to the age of 28 days, and who have a continuous stay in hospital of 7 full days or more.

As many parents across the UK are facing a rising cost of living, today’s reforms will help ease future pressures on families whose children require neonatal care by ensuring they aren’t forced with the choice of taking unpaid leave or continuing working. As well as supporting families, it will also help employers who want to better support their staff.

See: Parents whose babies require neonatal care to receive paid leave under new law backed by government - GOV.UK (www.gov.uk)

Help to Grow: Digital Scheme expanded

The government scheme that cuts the price of leading software, boosting productivity and growth of UK small businesses, will now benefit even more firms. The Digital Scheme eligibility has been expanded to businesses with at least one employee, meaning up to 1.2 million businesses could benefit.

This means businesses can now access a £5,000 discount on 30 software solutions from 14 leading technology suppliers for eCommerce, Digital Accounting and Customer Relationship Management software.

Additionally, the government has announced that Help to Grow: Digital will support one-to-one advice for SMEs on how best they can adopt digital technology. The government will be launching applications for advice platforms to partner with the scheme from today, and the advice service will go live later this year.

See: More than a million businesses now eligible for Help to Grow as software scheme receives a boost - GOV.UK (www.gov.uk)

The Ideas Marketplace

The Ideas Marketplace is an online networking collaboration platform where innovators can discuss, collaborate and share ideas with like-minded users. The goal is to overcome defence and security challenges and help deliver the next generation of defence and security tools and services.

It spans from helping innovators gain expertise and specialist support to develop technologies, to forming longstanding partnerships and finding new funding opportunities.

The Ideas Marketplace will help innovators to:

●        Hear about funding opportunities from across the UK Government;

●        Access exclusive competitions;

●        Collaborate with other innovators to make ideas a success;

●        Engage with industry leaders and learn more about the defence and security landscape; and

●        Foster collaborative relationships and partnerships.

See: Introducing the Ideas Marketplace - GOV.UK (www.gov.uk)

HMRC getting heavy on R&D claims

HMRC have started writing letters to some companies that have been making claims for Research and Development (R&D) relief suggesting that they may be fraudulent. This is the result of the system being abused by some spurious claims, but the tone of the letter may alarm some recipients.

The HMRC Fraud Investigations Services unit has made the following statement

“We have recently seen some concerning claims. To prevent abuse of the Research & Development relief and protect legitimate customers, we have conducted additional checks. Where evidence leads us to believe that fraudulent claims may have been made, we will issue these letters which ask for more information to help verify the claims.

We have not written to R&D claimants accusing them of fraud. These letters state that we have not opened a criminal investigation into suspected fraud but reserve the right to do so.”

The letter invites recipients to get in touch with HMRC within 30 days if they believe their claim is genuine. It warns that anything a company might say to HMRC about their claim could be used as evidence in respect of any future criminal investigation.

Please contact us immediately if you receive such a letter.