30th June 2023 – Hillmans Weekly Update

30th June 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!

Have a great weekend. 

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Interest rate rises again
The Bank of England (BOE) raised interest rates by half a point to 5 per cent last week, with increasing calls for tougher action to fight persistent high inflation. Andrew Bailey, the governor of the Bank of England, said that the Bank thinks inflation - the rate at which prices are rising - will fall "markedly this year" but adds there are signs of it being "persistent".

Recent figures showed that inflation did not fall as expected and remained at 8.7% in the year to May. Bailey confirmed that the BOE thought it was “right” that they took this action to raise rates."

On the face of it, a 0.5% increase does not sound too drastic and actually leaves the UK with a bank rate that is still lower than historic averages. But it is painful for those who have been relying on cheap lending, and a Bank Rate that stood at just 0.1% in December 2021. 

The first to feel the impact will be around 850,000 mortgage borrowers with a tracker rate mortgage. The average borrower will be paying around £50 per month extra.

Those on fixed deals, where the interest rate stays the same for a set period, usually as an introduction to the deal, will see no immediate increase – but will have to be prepared for a significant increase in repayments if their deal is close to ending. The overall message is – the increase will mean it will cost you more to buy your home.

At the beginning of the year, the same pundits who were predicting recession were also certain that house prices would fall as interest rates rose. There have been blips within the housing market, but the forecast price falls have simply not occurred. As the pundits proved, it is impossible to predict the future, but it may be reasonable to assume that this latest rate hike will not be the one that changes the position. A shortage of housing, and an economic outlook that is actually more positive than previously, could mean that a house price collapse is unlikely.

If inflation doesn’t ease as anticipated, we may see further base rate rises becoming necessary. Some forecasts suggest that the Bank of England base rate could well go over the current 5%.

So, what can you do to protect your long-term 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 you 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 – but 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 can 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
To avoid increasing interest costs which could mean that buying your home becomes difficult or even impossible, it makes sense to try and secure the lowest rate you can for your mortgage, 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 on, so talk to your financial adviser. If you don’t have one, see: Choosing a financial adviser | MoneyHelper
 
2022/23 Employment-related securities returns due by 6 July
The deadline for reporting shares and securities and share options issued to employees for 2022/23 is 6 July 2023. This is the same as the deadline for reporting expenses and benefits provided to employees on form P11d for 2022/23.

Employers must submit their employment related securities annual returns online and attach the appropriate spreadsheet template if they have something to report. HMRC provide templates on their website that may be downloaded in order that the information may be entered and uploaded. Note that there are different templates for each of the four tax-advantaged employee share schemes – Company Share Option Plan (CSOP), Enterprise Management
Incentives (EMI), Save and You Earn (SAYE) share options and Share Incentive Plans (SIP). In addition, spreadsheet 42 should be used to report on any other employment-related securities (non-tax-advantaged) issued to employees and directors.

We can, of course, assist you with the reporting obligations and with the valuation of the securities concerned.
 
Deadline for voluntary National Insurance contributions extended to April 2025
The UK government is giving people more time to pay National Insurance contributions towards their State Pension.
Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006 that may increase their State Pension - an extension of nearly 2 years.

Extending the voluntary National Insurance contributions deadline until 2025 means that people have more time to consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of boosting their State Pension entitlements.

The original deadline was extended to 31 July 2023 earlier this year, and tens of thousands of people have taken the opportunity to pay voluntary contributions to HM Revenue and Customs (HMRC) since then. The revised deadline is expected to enable tens of thousands more to do the same.

See: Deadline for voluntary National Insurance contributions extended to April 2025 - GOV.UK (www.gov.uk)
 
Protecting those working alone
Lone workers can be at greater risk of harm as they may not have anyone to help or support them if things go wrong. Employers should provide training, supervision, monitoring, and support for those working alone. 

The Health and Safety Executive’s free-to-download leaflet, Protecting lone workers: How to manage the risks of working alone, is for anyone who employs lone workers, or engages them as contractors etc, including self-employed people. 

The leaflet is supported by their lone working webpages which include advice aimed at lone workers themselves, as well as a video setting out the key advice.

See: Working alone - Health and safety guidance on the risks of lone working (hse.gov.uk)
 
ICO issues new SARs guidance for employers
The Information Commissioner's Office (ICO) has published new guidance for businesses and employers on responding to subject access requests (SARs).

The right of access, commonly referred to as a subject access request or SAR, gives someone the right to request a copy of their personal information from organisations. This includes where they got their information from, what they're using it for and who they are sharing it with.

Individuals can request the personal information held by their employer, or former employer, such as details of their attendance and sickness records, personal development, or HR records.

Organisations must respond to a SAR within one month of receipt of the request. However, this can be extended by up to two months if the SAR is complex. If organisations fail to respond to SARs promptly, or at all, they can be subject to fines or reprimand.

From April 2022 to March 2023, the ICO received over 15,000 complaints related to subject access. Analysis suggests that employers regularly misunderstood the nature of requests and often failed to respond promptly, or at all, leaving themselves open to fines or a reprimand. The ICO is therefore urging employers to read the new guidance and understand the rules on dealing with SARs, to avoid non-compliance.

See: SARs Q&A for employers | ICO
 
NatWest Accelerator 2023
The NatWest Accelerator supports and empowers UK entrepreneurs to scale their businesses to the next level.

The free Accelerator programme specialising in wrap around support provides:

•  one-to-one coaching with experienced Acceleration Managers;
•  A programme of thought leadership and events;
•  access to a network of like-minded peers, supported by Ecosystem Managers;
• focused support with access to experts from across your specialism; and
• use of our modern co-working spaces in one of their nationwide hubs.

See: Entrepreneur Accelerator | NatWest
 
Help to Grow Management scheme
The Help to Grow: Management scheme offers business leaders 50 hours of leadership and management training across 12 weeks.

It means, for as little as £750, business leaders can benefit from one-to-one support from a business mentor, access to a network of like-minded business leaders, and a bespoke growth plan to help the business reach its full potential.

Designed to be manageable alongside full-time work, this programme will support small business leaders to develop their strategic skills with key modules covering financial management, innovation, and digital adoption.

See: Homepage - Help to Grow
 
Ethnicity pay reporting: guidance for employers
The UK Government has published guidance for employers on how to measure, report on and address any ethnicity pay differences within their workforce.
Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among their employees. 

The guidance includes advice on:

• collecting ethnicity pay data for employees;
• how to consider data issues such as confidentiality, aggregating ethnic groups and the location of employees;
• the recommended calculations and step by step instructions on how to do them;
• reporting the findings;
• further analysis that may be needed to understand the underlying causes of any disparities; and
• the importance of taking an evidence-based approach towards actions.

See: Ethnicity pay reporting: guidance for employers - GOV.UK (www.gov.uk)
 
Retained EU Employment Law Reforms
This consultation sets out proposals for key areas of retained EU employment law that the Department for Business and Trade (DBT) is responsible for.

The consultation seeks views on 3 areas of retained EU employment law which could benefit from reform:

• record keeping requirements under the working time regulations;
• simplifying annual leave and holiday pay calculations in the working time regulations; and
• consultation requirements under the Transfer of Undertakings (Protection of Employment) regulations (TUPE).

The consultation closes on 7 July 2023.

See: Retained EU employment law reforms - GOV.UK (www.gov.uk)
 
Innovation Funding Service
Innovate UK supports UK-based businesses to invest in research, development, and innovation through grant funding, loans, or procurements. You can browse and apply for funding opportunities through their Innovation Funding Service.

Various types of funding opportunities are available throughout the year. Each opportunity has its own eligibility criteria and scope. The Innovation Funding Service has information on what funding opportunities are available and which ones may be right for you.

It is important that you read the full eligibility, scope, and guidance for a funding opportunity before you apply.

See: Innovation competitions - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
 
Space Cluster Infrastructure funding call
The Space Clusters Infrastructure Fund (SCIF) will award more than £50 million in matched funding to UK organisations, as part of a competition to increase the capability, capacity, and connectivity of the UK’s space research and development (R&D) infrastructure.

The funding is available to businesses and academic institutions that can deliver projects to procure, build or upgrade R&D facilities and equipment that will bring high-potential, high-value space technologies to market.

The infrastructure developed through this funding will enable UK space organisations to accelerate pioneering products and applications that will become critical for the success of future space missions while making a lasting and valuable contribution to the wider UK economy.

SCIF is expected to support approximately five to ten projects of up to £10 million each. The fund is open to organisations of all sizes and locations, with a weighting towards those outside of the Greater South East.

See: Announcement of Opportunity: Space Cluster Infrastructure Funding Call - GOV.UK (www.gov.uk)

The Horizon Europe Guarantee scheme has been extended to support UK R&D
The support provided to UK Horizon Europe applicants has been extended for a further three months. The guarantee will now be in place to cover all Horizon Europe calls that close on or before 30 September 2023. Eligible, successful applicants to Horizon Europe will receive the full value of their funding at their UK host institution for the lifetime of their grant.

Successful awardees do not need to leave the UK to receive this funding, which will provide reassurance for future collaborations and support UK researchers whether association is confirmed or otherwise.

The UK government remains in discussion on the UK's involvement in EU research programmes and hopes that negotiations on Horizon Europe will be successful. However, UK participation must be fair for UK researchers, businesses and taxpayers and reflect the lasting impact of two years of EU delays to the UK's association. The government will continue to engage with representatives across the business, research, and innovation sectors as these discussions progress.

The UK government's policy is to ensure the UK's research and development (R&D) sector gets the maximum level of support to allow them to continue their research and collaboration with international partners, and the extension of the guarantee provides certainty for researchers while negotiations continue.

See: Apply for Horizon Europe guarantee funding – UKRI

23rd June 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!

Have a great weekend. 

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

2022/23 EMPLOYMENT-RELATED SECURITIES RETURNS DUE BY 6 JULY
The deadline for reporting shares and securities and share options issued to employees for 2022/23 is 6 July 2023. This is the same as the deadline for reporting expenses and benefits provided to employees on form P11d for 2022/23.
 
Employers must submit their employment related securities annual returns online and attach the appropriate spreadsheet template if they have something to report. HMRC provide templates on their website that may be downloaded in order that the information may be entered and uploaded. Note that there are different templates for each of the four tax-advantaged employee share schemes – Company Share Option Plan (CSOP), Enterprise Management Incentives (EMI), Save and You Earn (SAYE) share options and Share Incentive Plans (SIP). In addition, spreadsheet 42 should be used to report any other employment-related securities (non-tax-advantaged) issued to employees and directors.
 
We can of course assist you with the completion of the reporting obligations and with the valuation of the securities concerned.
 
HMRC OFFICIAL RATE OF INTEREST 2.25%
HMRC have announced that the official rate of interest will increase from 2% to 2.25% on 6 April 2023. The official rate of interest is used to calculate the income tax charge on the benefit of employment related loans and the taxable benefit of some employment related living accommodation. These rates used to fluctuate in line with the base rate, but in recent years HMRC has fixed the rate for the whole tax year.
 
For those employers including beneficial loans on form P11d for 2022/23 the average official rate to be used is 2%. The charge applies where the amount of the loan exceeds £10,000.
 
SHOULD DIRECTOR/SHAREHOLDERS TAX ADVANTAGE OF THIS LOWER RATE?
 The HMRC rate of interest on beneficial loans looks very attractive compared to the Bank of England Base rate of 4.5% (as at May 2023) and much higher rates charged by banks for unsecured loans.
 
Note that where loans are made to participators (broadly shareholders) of a close company there is potentially a special tax charge on the company on any loan still outstanding 9 months after the end of the accounting period. The charge is currently 33.75%, the same as the higher rate of tax on dividend income. This tax charge is only repaid to the company when the loan is repaid or written off.
 
For example, Fred, the managing director and controlling shareholder of Bloggs Ltd, is loaned £100,000 interest free on 6 April 2023. No repayments are made in the year ended 31 March 2024. Assuming no change in the HMRC official rate of interest the company would show a taxable benefit in kind on Fred’s 2023/24 P11d of £2,250 (2.25%)

If Fred repays the loan in full before 31 December 2024 there would be no special charge on the company although Fred would be assessed on the beneficial loan for the 9 months that the loan was in existence in 2024/25.
 
Note that there are anti- “bed and breakfast” rules to counteract the situation where the loan is readvanced by the company. The anti-avoidance would not apply where the loan is cleared by crediting a bonus or dividend to Fred’s loan account.
 
If however only £60,000 was repaid by Fred before 31 December 2024 leaving £40,000 outstanding then there would be a s455 charge on the company of £13,500 (assuming 33.75% continues) which would be payable in addition to the company’s corporation tax liability for year ended 31 March 2024.
 
The company would show a taxable benefit in kind on Fred’s 2024/25 P11d based on the official rate of interest on beneficial loans for 2024/25 (yet to be determined).
 
If the company then decides to write off or waive the outstanding loan in year ended 31 March 2025 the £13,500 would be refunded. However, Fred would be assessed on the £40,000 as an income distribution (dividend) arising at the date of waiver in 2024/25.
 
SHOULD EMPLOYEES REIMBURSE THEIR EMPLOYER FOR PRIVATE FUEL?
The table below sets out the HMRC advisory fuel rates that apply from 1 June 2023. These are published quarterly these days due to the volatility in petrol and diesel prices in recent years. Where the employer provides an employee with a company car there may be an additional benefit in kind on the provision of fuel for private journeys which needs to be reported on form P11d.
 
This additional benefit is based on a notional list price for the vehicle of £25.300 for 2022/23 which applies irrespective of the original list price of the vehicle normally used to compute the taxable benefit. That figure is then multiplied by the CO2/km percentage for that vehicle.
 
For example, the Range Rover Evoke S AWD Automatic MHEV has a current list price of £41,245. The CO2 emissions data on the Land Rover website is 168g/km for this vehicle. which means that the fuel benefit is 37% multiplied by £25,300 = £9,361.
 
For a higher rate taxpayer that would result in a tax liability of £3,744. That would be an awful lot of fuel! In addition, the employer would have a Class 1A national insurance liability of £1,360 (14.53% for 2022/23).

Provided private fuel is fully reimbursed, the fuel benefit does not apply. This is an all or nothing benefit and unless there is full reimbursement there is an additional taxable benefit. 

The deadline for reimbursing private fuel is 6 July 2023 for the 2022/23 tax year.
 
USE OF HMRC ADVISORY RATES FOR VAT PURPOSES
Where employers reimburse their employees for using their own cars for business journeys the tax – free reimbursement rate continues to be 45p for the first 10,000 business miles and 25p a mile thereafter.  There is also an additional 5p per mile per passenger. These rates have not increased for about 10 years!

Provided the employee provides a fuel receipt from the filling station the employer is able to reclaim input VAT on a portion of the amount reimbursed to the employee. The input VAT is 1/6^th of the advisory fuel rate for the employee’s vehicle. For a 2200cc diesel car the input VAT would be 3.3p per mile based on 20p.

16th June 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!

Have a great weekend. 

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Quality always rises to the top!
Recently we have seen increasing interest rates, the largest monthly house price fall for nearly 14 years by 3.4%, and businesses and individuals paying the highest tax burden since the 1960’s.

Times are likely to remain challenging for many businesses, however history shows us that that when things are difficult, genuine quality always rises to the surface.

So what do businesses have to do to ensure that they succeed in the present economic environment?

The changing nature of the economy presents a whole series of questions for any business:

• What finance will it need, short term and to invest?  
• What are the challenges of entering and maintaining exporting and/or new markets?
• How does it develop new and innovative income streams?
• How can it manage its workforce through the peaks and troughs of activity?

There is no ‘one size fit all’ answer to these questions. Different businesses will have different requirements and here are some learnings from quality businesses that are successful:

Put customers first:
For the next few years, arguably more than ever, companies need to understand their customers in order to respond to their needs and the pressures they are facing. Household income has been squeezed; some experts predict it will continue to be the case until 2024.

For most consumer-facing businesses, that means offering value for the customer.

The key here is to invest time in understanding your customer spending patterns and their needs.

Take some time out to research these needs, look at how you satisfy these currently and what you could do to improve your offering. Think of ways you can change the delivery of your product or service.

These could be simple things like discussing your offering with the customer before providing it, letting them know how things are progressing, or calling them up to make sure everything went OK after delivery.

Constant communication with your customers before, during and after the sale is a key factor for successful business in tough times. Ask yourself what you could do to improve this in your business.      

Take time to seek out new revenue streams. Consider rebranding some of your offerings and selling them abroad or online. What new income streams are available to you?  How can you take advantage of them?

Control your costs:
Keeping the cash coming into a business is fundamental, but so is controlling the rate at which the cash flows out.

Take time to think about your costs and what you could do to improve the way you manage your business. Regular review of targets to actual costs on a monthly basis is key to good control of your business.

Look at the way you do things. Are there alternatives?

Consider alternative suppliers, alternative payment schedules, better use of electronic point of sale, stock management and quality control.

Sit down with us and discuss your strategy for controlling costs and the management of these. Brainstorm how you can do things more quickly and more efficiently and formulate a strategy for the next year.

Manage your employees: 
One of the biggest costs for firms is the cost of employment. Taking on new staff is expensive; it’s equivalent to fresh investment in the business. Many successful businesses are reviewing the value they get from their employees and are taking time to discuss how they can be more customer focused and efficient in their roles.

Look at alternatives to salary rises and consider the use of performance-related pay and a bonus structure that rewards both good service to customers and increases in sales. Get all employees involved in how the business can improve and do this regularly.

The Blueprint for success?
There is no single answer but there are a few general principles. Be flexible, but also be alert to the dangers. Successful businesses of the future will be fast on their feet but also aware of the risks. They will be lean and efficient. They will be the ones who spot and take advantage of the opportunities that are there.

As tough as the economic outlook appears for the remainder of 2023, there will still be plenty of opportunities, so please talk to us about your plans. We have considerable experience of helping our clients be successful!
 
The digital pound consultation
HM Treasury and the Bank of England are consulting on a potential digital pound, or central bank digital currency (CBDC).

The consultation paper sets out analysis by HM Treasury and the Bank of England on the potential case for a UK central bank digital currency – a “digital pound” - and consult on the key features of a potential model.

A digital pound would be a new form of digital money for use by households and businesses for their everyday payments needs. As part of the wider landscape of money and payments it would sit alongside, not replace, cash – a digital counterpart to familiar, trusted banknotes and coins, subject to rigorous standards of privacy and data protection. This is in line with the ambition that public trust in money remains high, and that modern forms of money and payments meet the evolving needs of individuals and businesses.

Unlike crypto assets and stable coins, the digital pound would be a central bank digital currency or CBDC - sterling currency issued by the Bank of England and not the private sector.

Although it is too early to commit to build the infrastructure for a digital pound, the Bank of England and the Government are convinced that further preparatory work is justified to appropriately respond to the emergence of new technologies, international developments and fresh opportunities. In the four-month consultation period, officials in HM Treasury and the Bank of England will engage extensively across the UK to seek views on a potential digital pound. Responses to the consultation are invited from all interested members of the public, experts, and the widest range of organisations.

The deadline for responses has been extended to 11:59pm on Friday 30 June 2023.

See: The digital pound: A new form of money for households and businesses? - GOV.UK (www.gov.uk)
 
Menopause standard launched to help organisations support experienced workers
New guidance designed to help organisations support employees experiencing menopause or menstruation and better enable them to retain experienced and talented people of all ages has been published by British Standards Institute (BSI).

BSI, the UK National Standards Body, has published the menstruation, menstrual health and menopause in the workplace standard (BS 30416), following consultation with experts and the public.

It sets out practical recommendations for workplace adjustments, as well as strategies to sit alongside existing well-being initiatives, to help organisations meet the needs of employees experiencing menopause or menstruation.

The guidance is designed to enable organisations to prioritize the needs of colleagues and to tackle the potential loss of skilled workers, who may be at their career peak. It follows Fawcett Society research suggesting an estimated 10% of women experiencing menopause have left the workforce due to their symptoms, which can range from hot flushes to dizziness, insomnia, muscle and joint stiffness, going up to 25% for those with more severe symptoms.

Global menopause productivity losses are estimated to already top $150 billion a year. BSI gathered a panel of experts to develop the standard, recognizing that this situation is set to grow as greater numbers of women stay in the workforce for longer. Estimates suggest that by 2025, there could be more than 1 billion people experiencing menopause globally - 12% of the world population.

BS 30416 has been developed to help organisations identify misconceptions around menstruation and peri/menopause and the impact a taboo surrounding them can have on workplace support.

The standard aims to provide examples of good practices for employers, including policy guidance, work design, workplace culture, and physical aspects of work. Steps to consider include:

1. Considering the workplace culture to determine whether there is a general awareness of menstruation and menopause and whether employees are given opportunities for open conversations or to request support.
2. Looking at whether line managers and HR managers are suitably trained or receive suitable resources to understand the potential impact of menstruation and menopause.
3. Reviewing if the workplace environment is properly controlled and if there are facilities such as toilets or discrete changing rooms, or quiet recovery spaces that are easily accessible.
4. Checking whether the relevant policies (well-being, D&I, performance management, sickness and absences, flexible working, etc.) consider menstruation and menopause.
5. Looking at whether work designs enable some flexibility for an individual approach. Aspects could include scheduling, timings of breaks, comfort adjustments such as access to individual cooling or heating, and opportunities for sitting or stretching.

The guidance is designed to be flexible, acknowledging that experiences of menstruation and menopause vary significantly and not everyone will want support from their employers.

See: Menopause standard launched to help organizations support workers | BSI (bsigroup.com)
 
Consultation on SAYE and SIP Employee share schemes
In a call for evidence launched recently, the UK government wants to hear views on Save As You Earn (SAYE) and the Share Incentive Plan (SIP), as it seeks to improve the schemes and expand their use by making it easier for businesses to set them up and offer them out to staff. The government is considering more simplified schemes to support business growth. The changes also aim to boost participation among low earners.

This comes as a HMRC evaluation report shows that 81% of businesses say these schemes help boost their business, with almost three quarters of these saying it has helped them retain and recruit staff. 31% of businesses which do not use these schemes say they are too complicated to set up.

The call for evidence comes after venture capital firm Index Ventures praised government reforms to a separate scheme, the Company Share Option Plan, placing the UK as joint top among G7 countries in share option policy.

These reforms saw a doubling of the amount of share options employees can be granted and removed restrictions on which kind of shares could be included. Index said the moves the government took were “helping scale ups attract and retain the talent they need”.

The government is looking to replicate this success through similar reforms for SAYE and SIP and is particularly interested in understanding whether the schemes are attractive to lower income earners.

See: Employee share scheme shake up to help boost growth - GOV.UK (www.gov.uk)
 
Protect yourself and your business from investment scams
A scam is a fraudulent scheme or operation designed to hoax people out of their cash, property, or personal information. Scams can take many forms, but they all share one ultimate goal: to take advantage of people’s trust to part them from their money.

With the internet providing anonymity as well as opportunity, the scope for scams has increased – and a particularly rich area for scammers with eyes on your money is investment. You want to grow your money by investing it – scammers know ways to convince you to invest it with them.

Scammers are very good at what they do. The difference between a sound investment proposal and a scam designed to whisk your money away so it is never seen again can be hard to tell until it is too late.

Scams can be difficult to spot. Fraudsters can be convincing and knowledgeable, with websites and materials that look identical to the real thing.

If you’ve been contacted unexpectedly, or are suspicious about a call or text message, make sure you stop and check the warnings signs.

• Is it unexpected? Scammers often call out of the blue. They may also try and contact you via email, text, post, social media, or even in person.
• Do you feel pressured to act quickly? Scammers might offer you a bonus or discount if you invest quickly, or they may say the opportunity is only available for a short time.
• Does the offer sound too good to be true? Fraudsters often promise tempting rewards, such as high returns on an investment.
• Is the offer exclusively for you? Scammers might claim that you’ve been specially chosen for an investment opportunity, and it should be kept a secret.
• Are they trying to flatter you? Scammers often try to build a friendship with you to put you at ease.
• Are you feeling worried or excited? Fraudsters may try to influence your emotions to get you to act.
• Are they speaking with authority? Scammers might claim that they’re authorised and often appear knowledgeable about financial products.

If you answered ‘yes’ to any of these questions, or you’re unsure if a contact is genuine, follow the steps below to protect yourself.

How to protect yourself from an investment scam
Check that the firm is authorised by the Financial Conduct Authority (FCA). You can do this by using the register on the FCA website: Home (fca.org.uk)
Then check that it isn’t a cloned company.  The firm may be genuine – but the fraudster may be spoofing their connection with it. Make sure you use the contact details taken from the FCA’s register: Do not use the details given to you by the company, or by the person who contacted you.

Finally:

• Never give out your bank account or credit card details unless you’re certain who you’re dealing with; 
• Never share your passwords with anyone (including your social media passwords); and
• Do not give access to your device by downloading software or an app from a source you don’t trust. Scammers may be able to take control of your device and access your bank account.

See: Protect yourself from scams | FCA
 
The “Investing in Women Code” is closing the finance gap
The Government has published the third annual Investing in Women Code report. The Investing in Women Code is a commitment to supporting the advancement of female entrepreneurship in the United Kingdom by improving female entrepreneurs’ access to tools, resources and finance from the financial services sector.

Key findings in the review showed:

• A higher percentage of venture capital deals made by Investing in Women Code (IWC) signatories feature at least one female founder as compared to the wider market;
• This is the third year in a row that IWC signatories have outperformed the venture capital market;
• More diverse investment committees are key for bridging the investment gap; and
• With 204 signatories, the IWC now covers a significant proportion of the SME lending market and accounts for 39% of UK venture and growth equity deals, up from 24% in 2020.

35% of all venture capital deals made by Investing in Women Code signatories were in female-founded companies last year, compared to the market average of 27%.

Over 200 organisations have signed up to the code, showing the growing numbers of lenders and investors committed to increasing the levels of finance directed towards women-led businesses. Today’s report demonstrates that IWC members are leading the way in addressing the finance gap between male and female entrepreneurs. Equal access to finance will boost the potential of female founded businesses and deliver on the Government’s priority to grow the economy.

See: Investing in Women Code closing the finance gap - GOV.UK (www.gov.uk)

9th June 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!

Have a great weekend. 

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Good cash flow management is essential for business success!
With the present economic uncertainty, 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 reflect 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.

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:

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; look where cash could become tight and identify 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.

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.

We specialise in helping businesses plan forward and adopt flexible strategies so please talk to us about preparing a cash flow statement and an annual budget to help you reach your goals.
 
Self-Assessment threshold change
From tax year 2023 to 2024 onwards, the Self-Assessment threshold for taxpayers taxed through PAYE only will change from £100,000 to £150,000.   

Affected individuals do not need to do anything now as the Self-Assessment threshold for 2022 to 2023 tax returns remains at £100,000.  They will receive a Self-Assessment exit letter if they submit a 2022 to 2023 return showing income between £100,000 and £150,000 taxed through PAYE and they do not meet any of the other criteria for submitting a Self-Assessment return.

For the 2023 to 2024 tax year onward taxpayers will still need to submit a tax return if their income taxed through PAYE is below £150,000 but they meet one of the other criteria for submitting a Self-Assessment return, such as:

• receipt of any untaxed income,
• partner in a business partnership,
• liability to the High Income Child Benefit Charge, or
• self-employed individual and with gross income of over £1,000.

See: Issue 108 of Agent Update - GOV.UK (www.gov.uk)
 
Deaf staff and staff with hearing loss
It is important to make sure your workplace is inclusive of deaf people and people with hearing loss.

If you don’t, you are excluding a large number of people: for example, 1 in 5 people of working age have hearing loss which may have an impact on their communication, productivity and wellbeing.

The RNID (Royal National Institute for Deaf People) is an independent charity supporting the 12 million people in the UK who are deaf or have hearing loss or tinnitus.

They can help with:

• Online hearing checks,
• Supporting deaf staff with and staff with hearing loss,
• Communication,
• Training,
• Workplace assessments, and 
• Accessible recruitment.

See: Support for businesses and organisations - RNID
 
Advisory fuel rate for company cars
The table below sets out the HMRC advisory fuel rates from 1 June 2023. These are the suggested reimbursement rates for employees' private mileage using their company car. 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.



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

You can also continue to use the previous rates for up to 1 month from the date the new rates apply. Note that for hybrid cars you must use the petrol or diesel rate. For fully electric vehicles the rate is 9p (8p) per mile.

Please contact us if you need any further clarification.
 
Small Business Saturday 2023
Small Business Saturday is once again highlighting 100 small businesses, one a day for 100 days leading up to Small Business Saturday 2023.

For the last ten years, the 100 have not only received exposure on Small Business Saturday's social media channels and in the local and national press, but also joined the Small Business Saturday team in London at receptions in Downing Street, House of Lords, and the Treasury Drum with the Chancellor of the Exchequer.

Applications close on 30 June 2023. Successful applicants will be notified by email in August.

See: Small Business Saturday UK | Another year making a Big Difference!
 
New Patents Service
The Intellectual Property Office (IPO) has published a document which sets out what you can expect over the next 12 months as we count down to the launch of their new digital patents service.

The IPO states that 2023 is the year that change starts to happen and transformation becomes real. With one year to go until the new One IPO service launches for patents, this document outlines what you can expect over the next 12 months. It includes a timeline for the rollout of the new service, the features you can expect and the changes that are coming.

See: One IPO Transformation: one year until the new patents service - GOV.UK (www.gov.uk)
 
How much holiday leave are employees entitled to?
Paid annual leave is a legal right that an employer must provide. Holiday pay is worked out according to the kind of hours someone works and how they’re paid for the hours.

This includes:

• full-time workers,
• part-time workers,
• agency workers,
• workers working irregular shifts, and
• casual workers including those on zero-hours contracts.

Workers are entitled to a week’s pay for each week of statutory leave that they take. 

You can calculate holiday entitlement for a full year and part of a leave year (if the job started or finished part way through the year) using this calculator:
Calculate holiday entitlement - GOV.UK (www.gov.uk)

For further information on holiday entitlement see: Holiday entitlement: Holiday pay - GOV.UK (www.gov.uk)
 
Network of fake companies shut down following Bounce Back Loan fraud
The Insolvency Service has successfully secured the winding-up of 11 companies for their part in a scheme which orchestrated systematic fraud against UK taxpayers during the covid-19 pandemic.

Between them, the companies claimed £500,000 through the Bounce Back Loan scheme. The companies claimed to be registered at various offices in Berkshire, Lancashire, London, and Shropshire, however the Insolvency Service investigation could not identify trading premises for any of the businesses, nor establish that they had ever traded.

Nine of the companies were found to have claimed the maximum available £50,000 through the Bounce Back Loan scheme, with one company even claiming two loans. Investigators found a host of links between the various companies, including the use of common addresses, with funds being moved between them before ultimately being transferred to entities registered in Hong Kong.

The companies were identified by investigators due to their links to five other companies that had previously been wound up by the Insolvency Service in 2021 and 2022. These had themselves been responsible for fraudulently claiming £250,000 between them in Bounce Back Loans and £350,000 in Small Business Grants.

The Official Receiver was appointed liquidator of the 11 companies closed down by the court at the hearing on 22 May 2023. The Official Receiver is working to trace the funds and those responsible, with a view to recovering the money.

See: Network of fake companies shut down following Bounce Back Loan fraud - GOV.UK (www.gov.uk)
 
Cyber-attacks – protect your business!
Last week we learnt that more than 100,000 people have been warned their personal data is in the hands of cyber-criminals as a result of a continuing mass hack.

The BBC, British Airways, Aer Lingus and Boots are among the companies whose staff have been affected by the MoveIt data breach and even more organisations are expected to issue staff warnings, as the extent of the breach is discovered.

If you have not implemented cyber security in your business then now may be a good time to consider the UK government “Cyber Essentials” to help protect you against a whole range of the most common cyber-attacks.

Cyber-attacks come in many shapes and sizes, but the vast majority are very basic in nature, carried out by relatively unskilled individuals. They’re the digital equivalent of a thief trying your front door to see if it’s unlocked. The advice is designed to prevent these attacks.

See: About Cyber Essentials - NCSC.GOV.UK
 
Warning issued by the Insolvency Service on scams
The Insolvency Service has issued a warning to investors and its customers regarding a recent increase in fraudulent activity, including recovery room scams, and fraudsters impersonating genuine Insolvency Service employees, in the form of emails, phone calls and letters.

Recovery room scams usually follow an investment scam, where victims have already lost money. Victims are cold called by fraudsters who pretend to be from a different company. High pressure tactics are then used to obtain upfront charges/fees, described as, for example, tax, solicitor fees and administrative fees. This can result in losses that can be greater than the initial investment loss.

To legitimise their contact, recovery room fraudsters will send fake letters with the Insolvency Service logo, spoof the Insolvency Service’s telephone numbers, provide fake Insolvency Service telephone numbers, use a fake email address like those officially used by the Insolvency Service, impersonate a legitimate employee of the Insolvency Service, and refer investors to social media accounts of Insolvency Service employees.

The Insolvency Service will never ask for an upfront fee to get your money back that you have lost in a previous investment. If contact appears to be from the Insolvency Service, or a company purporting to be acting on behalf of the Insolvency Service, asking for an upfront fee, this is a scam.

Separately, fraudsters are impersonating legitimate employees of the Insolvency Service by contacting individuals using fake email addresses and letters.

This activity is in no way affiliated with the Insolvency Service and recipients are being advised to exercise caution and familiarise themselves with the official telephone number and domains used by the agency.

See: Warning issued by the Insolvency Service on scams - GOV.UK (www.gov.uk)
 
New UK government drive to support rural communities
Communities and businesses in the most remote areas will benefit from better access to wireless networks following the announcement of government plans.

A new £7 million fund will test out new ways to bring together satellite, wireless and fixed line internet connectivity, helping support farmers and tourism businesses to access lightning fast, reliable connectivity in remote areas for the first time.

The results of the new approaches will also help rural businesses in trial areas make the most of new agricultural technologies by improving connectivity on their land, for example using new drone technology to monitor crops and livestock in real-time, support landscape and wildlife conservation efforts, or develop interactive experiences for tourists.

To boost the supply of new affordable housing to rent or buy in rural areas, the UK government will create a network of new “Rural Housing Enablers” to act as honest brokers between developers and communities. Backed by £2.5 million of funding, they will help to identify sites with local support for development and in keeping with the local area.

The UK government will consult on making it easier for farmers to change their redundant agricultural buildings into family homes by cutting red tape.

Planning rules could be changed to provide a more generous threshold delivered through the more streamlined planning process, while providing local authorities with new powers to safeguard against second homes and holiday lets.

See: Government launches new drive to support rural communities - GOV.UK (www.gov.uk)

2nd June 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!

Have a great weekend. 

Kind regards,
 
Steve
 
Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Welcome back, Jill!
We're absolutely thrilled to have our amazing Payroll Manager back in the office after her maternity leave. Jill's dedication and attention to detail have always been invaluable to our team, and we've missed her presence. We admire Jill for successfully balancing her personal and professional responsibilities as a new mum. As she settles back into her role, we're here to support her every step of the way.

Welcome back, Jill, and congratulations on your new addition to the family!

Flexible working will become the “default” for employees
Last week Amazon announced that, for warehouse workers, it is to offer parents term-time only contracts.  The new contracts would guarantee those who care for school-age children, including guardians, six weeks of holiday in the summer and two weeks over the Easter and Christmas breaks. Employees will be entitled to all full-time benefits.

Following a recent UK Government consultation, flexible working will become the default for millions of employees who will be able to request flexible working from day one of their employment.

Flexible working doesn’t just mean a combination of working from home and in the office – it can mean employees making use of job-sharing, flexitime, and working compressed, annualised, or staggered hours.

The new measures will give employees greater access to flexibility over where, when, and how they work, and the government hopes this will lead to happier, more productive staff. Flexible working has been found to help employees balance their work and home life, especially supporting those who have commitments or responsibilities such as caring for children or vulnerable people.

The consultation on flexible working has ended and the government response to the consultation confirms intention to introduce changes to the right to request flexible working legislation. This right currently supports all employees with 26 weeks continuous service to make applications to change their work location, working hours, and/or working pattern.

The response states that the government will take forward the following measures to:

• make the right to request flexible working a day one right;
• introduce a new requirement for employees to consult with the employee when they intend to reject their flexible working request;
• allow 2 statutory requests in any 12-month period (rather than the current one);
• require a decision period of 2 months in respect of a statutory flexible working request (rather than the current three); and
• remove the existing requirement that the employee must explain what effect, if any, the change applied for would have on the employer and how that effect might be dealt with.

The response also commits to:

• developing guidance to raise awareness and understanding of how to make and administer temporary requests for flexible working; and
• launching a call for evidence to better understand how informal flexible working operates in practice.

It also includes a summary of the responses received from individuals and stakeholders.

See: Making flexible working the default - GOV.UK (www.gov.uk)
 
Remaining resilient with high inflation
The British Retail Consortium (BRC), the trade association for UK retail businesses, research shows that shop price annual inflation accelerated to 9.0% at the start of May, up slightly from 8.8% in April. This is above the 3-month average rate of 8.9%. This brings shop price growth to a new high, although it is now beginning to fall.

Source: Food inflation eased in May (brc.org.uk)

The Office for National Statistics (ONS) April report shows that food and non-alcoholic beverage prices saw a monthly increase of 1.4% compared with a rise of 1.5% in the equivalent time period last year and an annual rise of 19.1% in April 2023 compared with an annual rise of 19.2% in March 2023. ONS modelling suggests that the annual rate for this category in April 2023 is the second highest seen for over 45 years, when the rate in August 1977 was estimated to be 21.9%.

Source: Consumer price inflation, UK - Office for National Statistics

Will this pattern continue?
Conditions are likely to remain challenging for many businesses and individuals alike. So now is a good time to focus on resilience.

Resilience is the process of adapting well in the face of adversity, trauma, tragedy, threats, or significant sources of stress — such as business, workplace, and financial stressors. It means "bouncing back" from difficult experiences.

So, what actions can you take now to remain resilient?

Here are a few suggestions to help you think about your business:  

• Review your Budgets and set realistic and achievable targets for the rest of 2023.
• Be careful with ‘can’t pay’ customers and get rid of ‘won’t pay’ customers.
• Review your debtors list and chase up overdue invoices (if appropriate).
• Offer existing debtors extended payment terms and/or discounts (if applicable).
• Make sure your terms of business contain explicit payment terms.
• Assign responsibility to one individual for invoicing and collections.
• Put extra effort into making sure your relationships with your better customers are solid.
• Review your list of products and services and eliminate those that are unprofitable or not core products/services.

The important thing to remember in uncertain economic times is that the vast majority of people will not lose their jobs, the majority of businesses won’t fail, and eventually, we’ll recover. (NatWest Bank, Key economic predictions for 2023).

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! 
 
Are you claiming a tax refund for all your work expenses?
HM Revenue & Customs (HMRC) is reminding employed workers that they can claim a refund on work-related expenses directly through GOV.UK.
Workers can claim for work-related expenses including:

• uniforms and work clothing;
• buying work-related equipment;
• professional fees, union memberships, and subscriptions; and
• using their own vehicle for work travel (excluding journeys from home to work).

See: Claim tax relief for your job expenses: Overview - GOV.UK (www.gov.uk)
 
Health and Safety for new and temporary workers
With summer arriving and the subsequent increase in seasonal work, workers are as likely to have an accident in the first six months at a workplace as during the whole of the rest of their working life.

The extra risk arises due to:

• lack of experience of working in a new industry or workplace;
• lack of familiarity with the job and the work environment;
• reluctance to raise concerns (or not knowing how to); and
• eagerness to impress workmates and managers.

This means workers new to a site:

• may not recognise hazards as a potential source of danger;
• may not understand 'obvious' rules for use of equipment;
• may be unfamiliar with site layout - especially where site hazards may change from day to day; or
• may ignore warning signs and rules, or cut corners.

The Health and Safety Executive (HSE) have produced guidance on protecting new workers.

See: HSE: Diversity in the workplace - New to the job
 
Are you ready for the summer weather?
Thinking ahead and preparing for what the weather may bring can make a real difference. There are some simple steps you can take to stay safe and healthy at this time of year – from preparing your home or business to taking care of yourself, your family, and neighbours. 

The Met Office provide up-to-date, expert seasonal advice from carefully selected organisations to help you prepare for and respond to the weather, to stay safe and protect yourself, your homes, and businesses.

See: WeatherReady - Met Office
 
National Minimum Wage 2023 rate reminder for employers: Summer Staff
All workers are legally entitled to be paid the National Minimum Wage (NMW). This includes temporary seasonal staff, who often work short-term contracts in bars, hotels, shops, and warehouses over the summer.

The National Minimum Wage hourly rates from 1 April 2023 are:

• £10.42 – age 23 or over (National Living Wage),
• £10.18 – age 21 to 22,
• £7.49 – age 18 to 20,
• £5.28 – age under 18, and
• £5.28 – apprentice. 

If you need help on paying temporary staff please contact us, alternatively you can contact ACAS via their helpline if you need employment law or workplace advice.

ACAS is an independent public body that receives funding from the government. They provide free and impartial advice to employers, employees, and their representatives on:

• employment rights,
• best practice and policies, and
• resolving workplace conflict.

See: Contact us | Acas
 
HMRC issues scam warning to tax credits claimants
Tax credit claimants should be on their guard against fraudsters, as HM Revenue and Customs (HMRC) warns of the latest tactics being employed by scammers.

HMRC has issued a new alert, providing details of a number of new scams reported that aim to trick people into handing over money or personal information. Criminals use deadlines – like the tax credits renewal deadline on 31 July – to target their victims and the department is warning around 1.5 million tax credits customers to be alert to scams that mimic government communications to make them appear genuine.

Typical scam examples include:

• emails or texts claiming an individual’s details aren’t up to date and that they risk losing out on payments that are due to them;
• emails or texts claiming that a direct debit payment hasn’t ‘gone through’;
• phone calls threatening arrest if people don’t immediately pay fake tax owed;
• claims that the victim’s national insurance number has been used in fraud; and
• emails or texts offering spurious tax rebates or bogus grants or support.

See: HMRC issues scam warning to tax credits customers - GOV.UK (www.gov.uk)
 
New workers’ rights for parents and carers
Parents and carers are to be given new protections at work, covering leave entitlement and redundancy rules as three Government backed Private Members Bills received royal assent last week.

This wave of new workers’ rights has been welcomed by charities and parties across parliament.

When in force, these new laws aim to increase workforce participation, protect vulnerable workers, and level the playing field by ensuring unscrupulous businesses don’t have a competitive advantage and delivering on our priority to grow the economy.

Parents and carers will benefit from the following new protections once in force:

• Up to 12 weeks of paid neonatal care leave for employed parents whose children are admitted to neonatal care, so that they can spend more time with their baby at what is a hugely stressful time. This is in addition to other leave and pay entitlements such as maternity and paternity.
• Redundancy protection for pregnant women and new parents with the extension of existing redundancy protections to cover pregnancy and a period of time after parents return to work.
• A new entitlement for unpaid carers to a week of flexible unpaid leave a year, for employees who are caring for a dependant with a long-term care need. This will enable carers to better balance their caring and work responsibilities, supporting them to remain in employment.

See: Workers’ rights wins for parents and carers - GOV.UK (www.gov.uk)
 
Abandoning retained EU red tape on wine announced
The government has stated that wine producers and importers will be freed from unnecessary red tape due to proposed changes to retained EU laws on the production and marketing of wine, providing a boost to the wine industry.

The changes will allow wine makers the freedom to pick from a wider range of vines, including more disease resistant varieties, and overturn the restrictions which currently prevent the wine industry from producing new blends. Bottlers will also be able to turn imported wine into sparkling wine.

Changes will also include removing certain packaging requirements – such as ending the mandatory requirement that certain sparkling wines must have foil caps and mushroom stoppers.

Domestic wine makers will also be free to show a variety and vintage of any wine without having to go through the previously EU-mandated applications processes.

The package of reforms follows engagement with the sector and are made possible by powers under the Retained EU Law Bill which are being used to remove any constraints from the economy whilst ensuring standards are not compromised.

See: Scrapping retained EU red tape on wine to unlock £180 million - GOV.UK (www.gov.uk)
 
Government sets out further support for tenant farmers
Tenant farmers will be at the heart of the government’s work to grow and support the rural economy thanks to new measures announced last week to support the long-term sustainability of the tenant farming sector.

The measures, announced in response to the independent Rock Review, agree with the review’s key recommendations and include a new Farm Tenancy Forum which will work to consider the unique challenges facing the sector, facilitate more collaborative relationships between landlords and tenants, and help to shape farming policy.

The government will also launch a Call for Evidence this summer on the proposal for a Tenant Farming Commissioner in England, considering the benefits this could bring and how it might work in practice. This builds on the actions we have already taken to help tenant farmers benefit from our Environmental Land Management schemes (ELMs) and a consultation launched at Budget on potential inheritance tax reforms, in line with the Review recommendations.

See: Government sets out further support for tenant farmers - GOV.UK (www.gov.uk)
 
New funding for farmers to protect the English landscape
Farmers and landowners will receive funding and support for projects to create new habitats for wildlife, help protected sites, and boost efforts to reach net zero, alongside sustainable food production, the government confirmed last week.

Building on the first round of the scheme launched last year, farmers and land managers are able to bid for a share of £15 million initial development funding, with significantly more investment in the years to come as projects move from development to delivery.

This will help them to collaborate and work in partnership to protect and enhance landscapes in England, delivering environmental benefits on a massive scale while supporting farmers to deliver their world-renowned produce.

The second round of the scheme will support up to 25 projects which will be administered by Natural England and the Environment Agency – the lead delivery partners for the scheme. The projects will be selected based on their environmental and social impact, value for money, and suitability for the scheme. In addition, for the first time, we have introduced a food production criterion which will be used to ensure prospective projects take food production into consideration and mitigate any negative impacts on this where possible.

It will focus on projects of at least 500 hectares which could include landscape scale projects creating and enhancing woodland including temperate rainforest, peatland, nature reserves and protected sites such as ancient woodlands, wetlands, and salt marshes.

See: Landscape Recovery: apply for funding - GOV.UK (www.gov.uk)