Welcome to our round-up of the latest business news for our clients. Please contact us if you want to talk about how these updates affect your business. We are here to support you!
U-turn on the top rate of tax
Facing huge criticism and market turbulence
following his announcement of a series of “growth” measures, Chancellor Kwasi
Kwarteng has backtracked on his decision to abolish the 45p rate of income tax
paid by people earning more than £150,000 a year. The proposal to scrap the
rate had been criticised as unfair at this time of rising living costs.
Following the mini budget markets reacted
poorly and we saw a falling pound, higher interest rates, a collapse in
mortgage products and the Bank of England stepping in to calm markets. Prime
Minister Liz Truss has admitted yesterday she should have "laid the ground
better" for her mini budget, after it sparked days of market turmoil.
We will keep you updated on the effects of
this and other decisions in good time for the new tax year which commences on 6
April 2023.
Update your payroll software for 6 November NIC changes
The 23
September mini budget announced the scrapping the Health and Social Care Levy
and important changes to employee and employer National Insurance Contributions
(NICs) that take effect in just six weeks’ time. Software developers are
frantically working to make sure that payroll software is ready for the 6
November rate change.
Unlike PAYE
which generally works on a cumulative basis NIC for employees, who are not
directors, is calculated weekly or monthly based on the limits and rates for
that particular payroll period. This means that if the wrong NIC is calculated
the error cannot be corrected in the next pay period and the employer will have
to claim a refund from HMRC. This is because there is currently no procedure to
retrospectively correct the earlier NIC calculation. Unless a simple NIC
reclaim system is introduced this could be time consuming for both the employer
and HMRC.
Consider delaying end of October payroll to 6 November?
Employers may
wish to consider negotiating with employees to delay the end of October payroll
to 6 November to benefit from the 1.25% NIC reduction.
For a senior
employee on £10,000 a month this would save £125 for both the employer and
employee, or a lot more for some Premier League footballers. Cristiano Ronaldo
is allegedly on £20 million a year so a delay to 6 November would save him and
Manchester United £20,833!
This would of
course impact on the employees’ ability to make bank payments such as mortgages
and other direct debits scheduled to be made at the end of October or early
November.
Please contact
us if you wish to talk through your payroll options.
Dealing with the rising costs of
living
Retail sales
fell steeply in August as the rising cost of living put pressure on households,
figures show. According to the Office for National Statistics (ONS), sales fell
by 1.6% which is much larger than economists predicted, continuing a fall since
the summer of 2021.
Retail sales in all the main sectors - food, non-food, online and fuel - fell over the month and supermarkets' sales volumes fell by 0.9% in August. However, alcohol and tobacco sales rose by 6.3%. August's sales figures signalled the largest month-on-month drop since December 2021.
If you are
struggling with your finances, there are some steps you can take to start
managing your situation. Make a list of the organisations that you need to make
a payment to.
Note down how
much you pay and whether you are behind on any payments. This includes
essential household bills such as electricity and gas, as well as loans and any
other debts or repayments you have.
If you find
this too difficult, a debt adviser can help you for free.
The MoneyHelper Debt Advice Locator tool can help you find out where to
access free debt advice near you.
It’s important
that you prioritise your debts. Some debts will be more urgent than others
because the consequences of not paying them can be more serious. These may
include:
●
Mortgage
or rent
●
Council
tax/rates
●
Gas
or electricity bills
MoneyHelper has
useful information on how to prioritise your debts.
Once
you know which debts are a priority, you can work out a budget.
This will help
you understand how much money you have to pay your commitments as you go
forward.
You might want
to use a budget tool, such as the MoneyHelper online budget planner, or a tool provided by a debt adviser to help you.
If you are
worried about not being able to make future payments, it is important to
contact the organisations you make payments to and let them know. They may be
able to talk to you about options for changing how or when you pay.
If you are
finding it difficult to pay your mortgage, credit card or personal loan, your
lender should provide you with support tailored to your individual
circumstances. This support will be available if you’re struggling for the
first time or if you’ve already had help.
Your options
could include:
●
Making
reduced payments for a temporary period.
●
Changing
your mortgage or loan term to make your payments more affordable.
●
Making
no payments for a temporary period.
●
Being
directed to sources of free debt advice.
Contact your
lender as soon as possible if you’re finding it difficult to make payments.
Just talking to
your lender will not affect your credit file, and they can help you. If you
agree on an arrangement with them, that will be reflected on your file, but
this would also be the case with any missed payments.
If your lender
is not treating you fairly, you have the right to complain directly to them. If
you aren’t satisfied with their response, you can contact the Financial
Ombudsman Service.
See: Dealing with the financial impact of rising costs of
living | FCA
Protecting employees from stress
at work
The Working
Minds campaign has been created by the Health and Safety Executive (HSE),
Britain’s national regulator for workplace health and safety and is committed
to improving the health of workers.
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.
There are three
main reasons employers should be looking to prevent stress and support good
mental health in business:
- It's the law
- It’s good for business
- It’s the right thing to do
Whether you’re
a small business or a large corporation, the law requires all employers to
prevent work-related stress and support good mental health in the workplace.
It’s important
to remember that in the end, we’re all just people. Every one of us faces
pressures in and out of the workplace and by treating each other with respect
and compassion at work, we support our teams and colleagues to stay well.
The earlier a
problem is tackled, the less impact it will have on the person and your
business. Stress affects people differently – what stresses one person may not
affect another. Factors like skills, experience, age or disability may affect
someone’s coping ability.
You can get
started today with these 5 steps:
- Reach out and have conversations.
- Recognise the signs and causes of stress.
- Respond to any risks identified by agreeing
on action points between employer and workers.
- Reflect on the actions taken – have things
improved?
- Make it routine to check back in on how
things are going.
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.
See: Working Minds Employers - Work Right to keep Britain safe
Fit notes: new professions able to
issue fit notes
From 1 July
2022, nurses, occupational therapists, pharmacists and physiotherapists are all
able to legally certify fit notes in addition to doctors. This makes it easier
to get advice certified by the most relevant healthcare professional. The
legislation does not otherwise alter the purpose and function of the fit note,
which will continue to support and empower better conversations about work and
health between employers and workers. These professionals should be
working within general practice or delivering NHS services as access to the new
version of the fit note is limited to these settings.
See: Fit note: guidance for employers and line managers -
GOV.UK (www.gov.uk)
Business asset finance explained
Business asset
finance is an agreement that enables businesses to obtain the assets needed to
manage and/or expand effectively and spread the cost/outlay.
Regardless of
the size of the business, the decision to invest in assets is always difficult.
However, there are some key benefits, including:
●
It’s
a great alternative to a traditional bank loan.
●
Increased
tax benefits.
●
Payments
can be budgeted according to cash flow.
●
Lenders
secure against the asset.
Specialists can
advise on:
●
Hire
purchase - allows you to buy an asset and pay for it over a period of time,
spreading the cost via an agreement with a finance company. An initial deposit
is payable; and
●
Finance
lease – a rental agreement through which an asset can be obtained for a fixed
term. At the end of the initial term, the agreement can be extended or sold
with a rebate of the sale proceeds to the client.
You will need
to ensure that your management accounts are up to date, that you have current
detailed lists of debtors, creditors and all assets, and you might need
up-to-date projections before a lender will consider your application. Please
talk to us about finance. We can introduce you to finance specialists who have
many years of experience and success in advising businesses across a wide range
of sectors.
Submitting your Self Assessment
return early
HMRC has seen a
growing trend in customers submitting their Self Assessment returns early. In
the last five years, the number of customers choosing to file their return on
the first day of the tax year has almost doubled.
You have until
31 January 2023 to send HMRC your Self Assessment tax return and to pay any tax
you may owe.
Learn more
about getting started with Self Assessment, including registration, tax
returns, tax bills and payments on the webpage below.
See: HMRC email updates, videos and webinars for Self
Assessment - GOV.UK (www.gov.uk)
Christmas holidays 2022
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 shut down
for the Christmas holidays.
This year,
Christmas Day (25 December 2022), falls on a Sunday and Boxing Day falls on a
Monday, which means Tuesday 27 December 2022 will be a bank holiday.
Many employees
will request time off to spend time with their family, go on holiday or attend
religious services. Employees working over the Christmas period may experience
different working patterns, a change in the nature of their workload or face difficulties
getting to and from work.
An
organisation's annual leave policy should give guidance on how to book time
off. However, employers may wish to look at being a little more flexible when
allowing employees leave during this period.
The key is for both
parties to try to come to an agreement and plan as early as possible while
being fair and consistent with all staff.
See: Bank holidays and Christmas: Checking holiday entitlement
- Acas
UK Trade & Export Finance
Forum 2022
The UK Trade
& Export Finance Forum brings together finance and business leaders for a
full day of presentations, case studies, panels, workshops and networking,
covering the latest developments in export and trade finance.
Whether you are
a UK supplier looking to export overseas or an international corporate
considering long-term financing, this forum will provide you with insight and
business connections to support you in your export journey.
Now in its
fifth year, the event will take place on Thursday 17 November 2022 and will
return in hybrid format, bringing together over 600 attendees online and in
central London.
The Forum will
explore the importance of realising the export potential of emerging net zero
technologies. You’ll hear about the UK government’s support for new sectors and
recent product developments to help companies make the transition to clean
energy, with case studies from SMEs to large corporates.
The International
Workshops will also return, giving unique insights into the opportunities
within key trading markets globally.
You can expect:
●
The
opportunity to meet with decision-makers at major global companies to discuss
their supply chain needs and procurement processes.
●
Insights
from leading trade finance experts and policymakers on market and sector
trends.
●
To
connect with your regional Export Finance Manager and International Export
Finance Executives to find out how UKEF can support you to succeed overseas.
●
Networking
and a range of sessions including workshops, one-to-one meetings, panels and
case studies.
Who should
attend?
●
UK
exporters of any size looking to expand their presence internationally.
●
International
corporates seeking finance.
●
Banks,
private lenders or insurers, and legal firms.
●
Trade,
business, and policy organisations.
See: UK Trade & Export Finance Forum 2022 - New
Registration (great.gov.uk)
Commonwealth market awareness
webinar series
The Department
for International Trade (DIT) is hosting a series of market awareness webinars
to highlight business and exporting opportunities across a range of
Commonwealth markets.
These webinars
provide businesses with knowledge and insight into the opportunities available
in these markets.
In the second
series of one-hour webinars, DIT will be covering more Commonwealth markets.
The markets
covered include:
●
The
Commonwealth opportunity with the Commonwealth secretariat – 20 October, 9am to
10am
●
India
– 20 October, 10am to 11am
●
Malaysia
– 26 October, 9am to 10am
●
Nigeria
– date to be confirmed
See: Commonwealth Market Awareness Series Part 2
(great.gov.uk)
Gift Aid Awareness Day 2022 for
charities
This year’s
Gift Aid Awareness Day will be held on Thursday, 6 October 2022.
Every year
since 2018, charities across the UK have been taking to social media in October
to share the #TickTheBox message with donors, members, supporters and
volunteers.
This year’s
#TickTheBox campaign will focus on the value of Gift Aid. The Charity Finance
Group (CFG) are inviting all charities to share on social media, on your
website and in your newsletters, the impact that Gift Aid has on the people and
communities you serve.
Whatever your
charity’s purpose, CFG wants Gift Aid Awareness Day to be another opportunity
to show your supporters the amazing things you do, thanks to those who
#TickTheBox.
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