I hope you are keeping well.
20th January 2023 – Hillmans Weekly Update:
Welcome to our round-up of the latest business and tax news for our clients. Please contact us if you want to talk about how these updates affect you. We are here to support you!
I hope you have a good weekend.
Kind regards,
Steve
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk
What are your business resolutions
for 2023?
We often make resolutions for ourselves at
this time of year, but what about your business?
Below are a few examples of business
resolutions; maybe they will help you think about your strategy for success in
2023.
1. Resolve to track your
spending
Where does all the money go each month? You
know about the big regular bills such as rent, rates, telephone and internet,
suppliers, employees, tax, heat, and electricity, but for most businesses,
budgets never quite seem to add up. Make sure you list all the little things
such as sundries and other smaller expenses into your budget. Look through last
year’s accounts to check you have every type of expense included.
Having a budget has become more important
than ever. Resolving to stick to a set budget can be vital and could even mean
that we have surplus cash left over at the end of each month.
2. Resolve to deal with debt
A cash surplus is vital when running a
business, because one of the most important things to avoid in 2023 might well
be debt. Following the Covid-19 government support, debt was easy to get into,
but hard to get out of. Remember, debt goes on costing money because it
means interest payments each month. Your cash surplus could help pay off your
debts. Resolve to pay off as much as you can, starting with any variable
interest debt you have.
3. Resolve to build up an
emergency fund
Reducing your debt feels as though you have
had a cash bonus each month, because you no longer have repayments to make or
interest to cover. It may be tempting to splash out, but if you resolve to save
instead of spend, it could be the first step towards building resilience
against outside influences to your business. In 2023, interest rates are on the
up, making a savings account more rewarding.
4. Resolve to make the most
of your company pension
Your pension is a special kind of investment,
and thanks to the tax relief provided by the government, it could be the most
rewarding you ever make. Resolving to make some extra contributions
into your pension fund in 2023 could make a big difference to your wealth in
the years to come.
5. Resolve to be flexible with
your plans
Few predicted the Pandemic or the war in
Ukraine and these types of events are outside our control. Who knows what 2023
will bring, so 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”.
It is 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.
Ask us about our One Page Analyst, a “what
if” scenario planner which takes your projected 2023 figures and allows you to
work out the effect on profit of reducing expenses, increasing sales,
increasing or decreasing prices.
If you need help during the next
few months, then please call us – we are here to support you!
Energy Bills Discount Scheme:
help for businesses and other non-domestic customers
The Government has announced a new Energy
Bills Discount Scheme (EBDS) from April 2023 to April 2024 for eligible
non-domestic consumers in Great Britain and Northern Ireland.
The current Energy Bill Relief Scheme
announced in September comes to an end in March 2023. It supports businesses
and public sector organisations such as schools and hospitals by providing a
discount on wholesale gas and electricity prices.
Eligible non-domestic customers facing
significantly inflated gas and electricity prices in light of global price
pressures, triggered by Russia’s invasion of Ukraine, have benefitted from the
discount since 1 October 2022.
On 17 October it was announced that an HM
Treasury-led review of the scheme would determine support beyond March 2023.
The government has stated that current levels
of support were time-limited and intended as a bridge to allow businesses to
adapt. Wholesale gas prices have now fallen to levels just before Russia’s
invasion of Ukraine and have almost halved since the current scheme was
announced. The EBDS therefore attempts to strike a balance between supporting
businesses over the next 12 months and limiting taxpayer’s exposure to volatile
energy markets, with a cap set at £5.5 billion based on estimated volumes.
As per the current scheme the government will
provide a discount on your gas and electricity unit prices. Eligible
non-domestic consumers will now receive a per-unit discount to their energy
bills during the 12-month period from April 2023 to March 2024, subject to a
maximum discount. The relative discount will be applied if wholesale prices are
above a certain price threshold. For most non-domestic energy users these
maximum discounts have been set at:
- electricity - £19.61 per megawatt hour (MWh) with a
price threshold of £302 per MWh.
- gas - £6.97 per MWh with a price threshold of £107 per
MWh
The discount is calculated as the difference
between the wholesale price associated with an energy contract and the price
threshold. The discount is phased in when the contract’s wholesale price
exceeds the floor price, until the total discount per MWh reaches the maximum
discount for that fuel.
Recognising that some non-domestic energy
users are particularly vulnerable to high energy prices due to their energy
intensive and trade exposure, (referred to as Energy and Trade Intensive
Industries or ETIIs), these sectors will receive a higher level of support,
subject to a maximum discount. The maximum discounts and price threshold for
these sectors are:
- electricity - £89 per MWh with a price threshold of
£185 per MWh
- gas - £40 per MWh with a price threshold of £99 per
MWh
The government expects suppliers to contact
non-domestic customers over the coming weeks to advise them of the implications
of the scheme.
See: https://www.gov.uk/guidance/energy-bills-discount-scheme
Overview of changes to Cyber
Essentials 2023
In January 2022, the National Cyber Security
Centre (NCSC) announced an update
of the Cyber Essentials technical controls. At the time, organisations who were looking to be
assessed against the new standards were given a grace period of up to 12 months
for some of the requirements.
This grace period was due to end in January.
However, the grace period has been extended for a further three months until
April 2023. Read more about the Cyber Essentials grace period extension.
The NCSC will host a live Digital Loft
webinar to share a first look at the changes to Cyber Essentials technical
requirements and new guidance
The webinar will take place on Tuesday 24
January 2023 from 10:30am to 12 noon. A further 'deep dive' session will take
place on 14 March 2023 to explore the Cyber Essential changes in depth.
See: Event Management (microsoftcrmportals.com)
Freight Innovation Fund
The Department for Transport (DfT) has
launched a new fund to help small to medium-sized businesses to develop greener
and more efficient solutions for freight.
The Freight Innovation Fund will support SMEs
with solutions to current challenges in the United Kingdom’s freight sector, as
well as developing a future pipeline of solutions to meet the sector’s emerging
needs. The programme will take a cross-modal view of the end-to-end freight
journey, deploying solutions in real-world environments.
The programme will identify and trial new
products and services coming to market in the freight sector. It will convene
and support innovating organisations across the sector and ultimately support
the whole market to grow to match the ambitions of both the DfT and the whole
UK economy.
DfT has dedicated £7 million to the programme
to support SMEs through the Accelerator Programme and Freight Innovation
Cluster until 2024.
Freight Innovation Fund
Accelerator
The accelerator programme will select up to
36 SMEs over three open calls until 2024. Successful SMEs will join a six-month
programme, where they will each have the opportunity to access up to £150,000
of grant funding to trial their solutions with industry partners.
Applications to the Accelerator will close on
Sunday 5 February 2023.
Freight Innovation Cluster
The Freight Innovation Cluster complements
the Accelerator and will be the go-to community for innovating organisations in
the freight industry.
Through sector-specific engagement
activities, cross-pollination opportunities, ad hoc business support, and
community-building exercises, the cluster aims to become a vibrant ecosystem,
where new ideas and collaboration can flourish.
The Freight Innovation Cluster is open to
anyone in the freight industry, including innovative SMEs, industry partners
and academia. Technology-agnostic, this initiative will focus on developing
innovation across the sector and will last for the whole duration of the programme.
See: Freight Innovation Fund - Connected Places Catapult
Alcohol Duty freeze extended
The UK Government has announced a six-month
extension to alcohol duty rates freeze to 1 August 2023. The current alcohol
duty freeze was expected to come to an end on 1 February 2023.
At Autumn Budget 2021 the UK Government
announced the biggest reforms to alcohol duty in 140 years. The changes
overhaul the UK’s rules following exiting the EU, to give industry more time to
prepare the reforms will take effect from 1 August 2023.
See: Government announces six-month extension to alcohol duty
freeze - GOV.UK (www.gov.uk)
Grow your international sales
with the UK Export Academy
The UK Export Academy is a free training
programme, delivered through a hybrid of online and face-to-face learning.
The UK Export Academy is open to any business
in the UK who has a product or service that can be sold internationally. It is
for businesses who know that they want to reach international customers and
contracts in the future, as well as those who might already be selling beyond
the UK and want to expand into new markets.
From introductory sessions to specific sector
workshops, the UK Export Academy has hours of content available for all SMEs
across the UK. All you have to do is sign up and create your personalised
account. Then you can pick and choose your preferred content.
See: Home - UK Export Academy (great.gov.uk)
Exploring the Future of UK AI:
Scoping event
Are you working within the agriculture,
creative, construction and transport sectors and interested in creating and
deploying innovative artificial intelligence (AI) solutions?
If so, join Innovate UK Knowledge Transfer
Network (KTN) for an exploration of the future of UK AI at their upcoming
scoping events being held across the UK.
The events will bring together interested
stakeholders to discuss the direction of a brand new programme aiming to
stimulate the adoption of AI in sectors with high-growth potential.
Launching soon, this programme aims to:
- gain a greater consideration of ethical, security and
bias aspects in the development of new AI solutions;
- educate AI adopters in the commercial benefits of
developing and introducing AI technologies;
- cultivate a network between AI developers and AI
adopters in target sectors; and
- reduce the technical skill gap to increase both
productivity and profitability.
By attending the scoping events, you will
have the opportunity to influence the programme's direction and future
government policy, learn about funding opportunities for AI projects, and
network with other professionals.
Events are scheduled to take place in
England, Scotland, Wales, Northern Ireland, and online.
The events welcome any potential users of AI
in the creative, agriculture, transport, and construction sectors,
representatives of AI suppliers, and technology providers in all sectors.
See: Summary - Exploring the Future of UK AI: Scoping Event
(cvent.com)
The 2023 MacRobert Award
If you know a commercially successful
breakthrough that is making a real impact in the world, submit it now for the
chance to win £50,000 and the coveted MacRobert Award gold medal.
The award, originally founded by the
MacRobert Trust, is now presented and run by the Royal Academy of Engineering,
with support from the Worshipful Company of Engineers.
Each year the winning team receives a gold
medal, widespread publicity, a £50,000 prize and an exclusive weekend away at
Douneside House to recognise outstanding innovation, tangible societal benefit
and proven commercial success.
Past winners have included the engineers
behind innovations such as the Pegasus jet engine, catalytic converters, the
roof of the Millennium Dome and intelligent prosthetic limbs.
Submissions for the MacRobert Award close at
5pm on Tuesday 31 January 2023.
See: MacRobert Award (raeng.org.uk)
Creative Catalyst 2023
UK registered micro and small businesses in
the creative industries sector, can apply for funding up to £50,000 with a
package of support to grow their business.
The aim of this competition is to support
business innovation within the creative industries by providing a package of
targeted and continuous support to help businesses to grow.
Your project must:
- be related to and for the benefit of the creative
industries in the UK;
- demonstrate a clearly innovative and ambitious idea;
- be new to your business, with a demonstrable impact to
your growth plan;
- create a new revenue stream, for example new products,
services or IP;
- respond to the changing market conditions, such as new
modes of audience consumption, or the adoption of new technologies within
the sector;
- be market ready within 12 months of receiving support;
and
- demonstrate value for money.
The competition closes at 11am on 15 February
2023.
Preventing work-related stress:
the leading cause of illness at work
Stress, anxiety and depression is the biggest
cause of work-related illness in Great Britain and numbers continue to rise.
According to the latest statistics (PDF) there were 914,000 workers suffering from work-related
stress, depression or anxiety in 2021/22. 17 million working days were lost due
to stress in this period.
The Health and Safety Executive’s (HSE) stress website has plenty of advice and includes examples of stress risk
assessments tailored to different business sizes, as well as case studies and
much more. The stress talking toolkit shows how line managers can have simple, practical
conversations with employees to help prevent stress at work.
Their Working Minds campaign aims
to prevent work-related stress and encourage good mental health. The latest
episode of the HSE Podcast discusses the importance of working in
partnership to prevent work-related stress and to promote good mental health.
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