28th July 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) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Find a Grant service
The Find a Grant service offers a free central place on GOV.UK for business, individuals, and organisations to find and apply for UK government grants. The Find a Grant service is an initiative being delivered by the Government Grants Management Function, in Cabinet Office.

It is an innovative pilot that seeks to make it simpler, faster and fairer for civil society organisations and small and medium-sized enterprises (SMEs) across the UK to find and apply for funding. Their goal for this service is to modernise grant-making.

You can use this service to:

• access UK government grant funding;
• search and filter to find a grant that matches your needs;
• find out if you are eligible to apply for a grant; and
• find out how to apply for a grant.

See: Home - Find a grant (find-government-grants.service.gov.uk)
 
Why cash flow management is essential right now 
Last week the Office for National Statistics (ONS) stated that the UK's rate of inflation dropped to 7.9% in the year to June, which means the rate of price rises in the UK has slowed more than expected, down from 8.7% in May - although it still remains high. Falling fuel prices contributed to the drop, while food prices rose less quickly than in June last year. Experts are predicting that the Bank of England will increase interest rates by a minimum of a quarter per cent in August as they continue with their plan to get inflation down to 2 per cent.   

With increased supplier prices, continued rises in interest rates, and high annual inflation, managing your business’s cash and understanding the flows is a vital tool in maintaining resilience and being able to adopt flexible strategies for success.

An example of recognising the importance of cash flows is Amazon. They recently launched a flexible financing programme that gives businesses access to funding linked to their sales, allowing them to repay as they earn. A merchant cash advance, delivered in collaboration with financing provider “YouLend” could provide a new flexible financing option for eligible UK-based businesses selling on Amazon.co.uk, which provides greater cash flow suppleness in addition to the fixed-term business loans already offered by Amazon Lending. We expect to see more businesses adopting “elasticity” arrangements with their customers in the future.        

Cash flows are a reflection of all the cash that is flowing in and out of a business. Owners can look at the direction of the cash flows for insights about the health of specific products or services and overall market patterns.

No matter how inventive or simple your business model is, you can still have problems with cash flow and here are some of 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 (if appropriate).

Talk to us about preparing a funds flow statement and annual budget so that you can work on your business for maximum success!  
 
Working Capital Finance – can it help with cash flow?
Working capital finance solutions can offer businesses the opportunity to improve cash flow. The world of commercial finance and asset based lending (ABL) is complex and expansive with products, terminology and contractual interpretation varying from lender-to-lender.

The Benefits of arranging Working Capital are:

• Up to 90% of outstanding invoice value can be advanced relatively quickly;
• Flexible lending – funding increases in line with your growth (UK and Export);
• Confidentiality – lenders can offer a completely confidential service – your customers need not know you have a facility in place;
• Lenders allow you to manage your funding at all times;
• Sector-specific finance is often available;
• Structured ABL – funding for management buy-outs/management buy-ins; and
• Trade Finance & Supply Chain Finance Solutions.

Specialists in this area can advise on:

• Invoice Finance - an effective way of quickly accessing a proportion of the value (up to 90%) of your invoices. Effectively a business ‘sells’ its invoices to the lender in return for accessing cash at the point products and services are sold. Specific sector based offerings are available, as is the ability to arrange finance for selected invoices only.
• Structured ABL - generate a higher level of funding by unlocking the maximum value tied up in the combined assets within your business, including Debtors, Inventory, Plant & Machinery and Property. Additional forms of funding can be structured in addition to this, such as top up loans in order to drive growth.
•  Trade Finance - supply chain finance with various options, enabling the purchasing of goods from overseas where you are otherwise unable to obtain credit from suppliers.

Typically, you will need to ensure your management accounts are up to date and you make available current detailed lists of debtors and creditors. You might need up to date projections before an expert will consider your application.

Please talk to us about finance; our working capital finance experts have many years of experience and success in advising businesses across a wide range of sectors in obtaining working capital finance solutions.
 
Find a Grant service
The Find a Grant service offers a free central place on GOV.UK for business, individuals, and organisations to find and apply for UK government grants. The Find a Grant service is an initiative being delivered by the Government Grants Management Function, in Cabinet Office.

It is an innovative pilot that seeks to make it simpler, faster and fairer for civil society organisations and small and medium-sized enterprises (SMEs) across the UK to find and apply for funding. Their goal for this service is to modernise grant-making.

You can use this service to:

• access UK government grant funding;
• search and filter to find a grant that matches your needs;
• find out if you are eligible to apply for a grant; and
• find out how to apply for a grant.

See: Home - Find a grant (find-government-grants.service.gov.uk)
 
What is Fair Trade?
Farming is the largest employer in the world but millions of people who live and work on smallholder farms don’t earn enough to provide for either themselves or their families.

It’s often these communities who are most affected by climate change despite having done the least to contribute to it.

Fair Trade is a global movement that puts people and the planet before profit. When producers receive a fair price for their goods it leads to an improved working environment and a better quality of life for them and their families. Fair Trade takes a holistic approach by connecting producers and consumers through making supply chains more transparent and providing better choices for shopping responsibly. Justice, equity, and sustainable development should be at the heart of equal trade structures and Fair Trade is a partnership for change and development through trade.
 
Fairtrade as one word is a set of social, economic and environmental, standards for companies and the farmers and workers who produce goods like bananas, coffee, and chocolate. When you buy Fairtrade, you’re supporting a system that guarantees that producers receive better prices and fair terms of trade. This helps farmers and workers to invest in economic, social and environmental projects of their own choice which can help relieve the effects of climate change and benefit people worldwide.

See: Home - Fairtrade Foundation
 
The New “Business Council” – Will it make a difference?
A new business council has been appointed by the UK Prime Minister to report from the business frontlines and to encourage stability and growth in the UK economy.

Fourteen business leaders, from a range of sectors across the UK economy, join the Prime Minister’s new Business Council. Chief Executives from AstraZeneca, NatWest Group and BAE Systems are among the fourteen business leaders joining the council, alongside SSE, Google Deepmind, Sainsbury’s and Vodafone. Other companies represented on the council include GSK, Aviva, Shell, Sage, Taylor Wimpey, Diageo and Barclays.

These leaders are recognised as trusted experts in their respective fields and are in charge of some of the country’s biggest employers in strategically important industries for UK growth, from construction, life-sciences and tech, to financial services and energy.

Together, they employ around 330,000 people across the country, with an even greater reach throughout their supply chain and a presence globally too.

The newly appointed Business Council will be a forum to bring a real-world perspective on how the current economic climate is impacting business and how government and industry can work together to boost investment and innovation, drive productivity and create highly skilled jobs.

Only time will tell if the UK government listens to the appointed business leaders.  Certainly, encouraging investment, removing barriers to trade, and encouraging new opportunities would be welcomed by all businesses. 

See: Major business leaders join PM’s new Business Council to turbocharge economic growth - GOV.UK (www.gov.uk)
 
EU Settlement Scheme enhancements confirmed
From September 2023 people with pre-settled status under the EU Settlement Scheme (EUSS) will automatically have their status extended by 2 years before it expires if they have not obtained settled status.

The process will be automated by the Home Office and reflected in the person’s digital status. They will be notified of the extension directly. This will ensure that nobody loses their immigration status if they do not apply to switch from pre-settled to settled status.

The Home Office also intends to take steps to automatically convert as many eligible pre-settled status holders as possible to settled status once they are eligible for it, without them needing to make an application. During 2024, automated checks of pre-settled status will establish their ongoing continuous residence in the UK.

See: EU Settlement Scheme enhancements confirmed - GOV.UK (www.gov.uk)
 
Plastic Packaging Tax (PPT) Reminder
If you manufacture or import 10 or more tonnes of plastic packaging within a 12-month period you must register for PPT on GOV.UK, even if your packaging contains 30% or more recycled plastic.

You need to register for PPT if either of the following apply:

• you expect to manufacture or import 10 or more tonnes in the next 30 days (the 'forward look' test); or
• you have manufactured or imported 10 or more tonnes of plastic packaging since 1 April 2022 (the 'backward look' test).

Once you are registered for PPT, you will need to submit a return to HMRC, 4 times a year. 

Your return must cover an accounting period.

The 2023 to 2024 accounting periods are:

• 1 April to 30 June 2023, 
• 1 July to 30 September 2023, 
• 1 October to 31 December 2023, and 
• 1 January to 31 March 2024.

You must submit the return and pay any tax due no later than the last working day of the month, following the end of the accounting period you are reporting.

The deadlines to submit returns and pay any tax for the 2023 to 2024 accounting periods are:

• 1 April to 30 June 2023 – deadline is Monday 31 July 2023, 
• 1 July to 30 September 2023 – deadline is Tuesday 31 October 2023, 
• 1 October to 31 December 2023 – deadline is Wednesday 31 January 2024, and 
• 1 January to 31 March 2024 – deadline is Tuesday 30 April 2024.

See: Plastic Packaging Tax - GOV.UK (www.gov.uk)
 
Innovate UK – new funding opportunities
UK registered organisations can apply for a share of up to £25 million for game-changing and commercially viable research and development innovations that can significantly impact the UK economy. The closing date to apply is 27 September 2023. To find out more and apply: Innovate UK smart grants: June 2023 – UKRI

Ofgem round 3: call for ideas
UK registered organisations can apply for a share of up to £450 million to deliver net zero at the lowest cost to consumers and support innovative businesses to grow and scale. There is no closing date for this opportunity. To find out more and apply: Ofgem round three: call for ideas – UKRI

Industrial decarbonisation: local plans
UK registered organisations can apply for a share of up to £5 million to develop strategic plans for place-based industrial decarbonisation. The closing date to apply is 2 August 2023. To find out more and apply: Industrial decarbonisation: local industrial decarbonisation plans – UKRI

Innovative technologies: nucleic acid medicines manufacture round 2
UK registered organisations can apply for a share of up to £5 million for manufacturing innovation for nucleic acid medicines. The closing date to apply is 19 July 2023. To find out more and apply:  Innovative technologies: nucleic acid medicines manufacture round two – UKRI

Engineering biology collaborative R&D round 2
UK registered businesses can apply for a share of up to £6.7 million to develop engineering biology technologies, processes, products and services as a solution to societal challenges. The closing date to apply is 26 July 2023. To find out more and apply: Engineering biology collaborative R&D round two – UKRI
 
Women in Engineering Grant 2023
If you a female leader of an enterprise within UK engineering and are looking for funding to take your organisation to the next level, then check out this grant from manufacturing specialist Get It Made. They have announced a new grant, which aims to support female-led engineering enterprises and help encourage the next generation of women in UK engineering. The manufacturing grant consists of £5,000 (excluding VAT) that can be used when ordering any of Get It Made’s manufacturing services. 

Applications close at midnight on 31 July 2023.

See: Women in Engineering Grant 2023 | Engineering Grants | Get It Made (get-it-made.co.uk)
 
Healthcare innovation funding opportunity for SMEs
SMEs developing medical equipment can apply for health and social care research funding from the National Institute for Health and Care Research (NIHR) through the Invention for Innovation (i4i) Programme.

The Connect stream of the i4i Programme aims to help businesses reach the next stage in the development process to apply for further funding, in particular for an i4i Product Development Award.

Your business must be developing medical devices in vitro diagnostics and high-impact patient-focused digital health technologies for use in the NHS or social care system.

The minimum entry point is experimental proof-of-concept or laboratory-validated technology. However, you may submit proposals to progress innovations at any stage of the research and development pathway leading to implementation.

Apply to the Connect stream of the i4i Programme.
This i4i Programme is one of the health and social care research funding schemes available to researchers in this field and, in some cases, Northern Ireland-based SMEs.

Other funding schemes available from Autumn 2023, include:

• The Evidence Synthesis programme,
• Research for Social Care,
• Programme Grants for Applied Research programme, and
• Programme Development Grants.

See: Invention for Innovation | NIHR
 
Asbestos and construction – new resources available
The Health and Safety Executive’s (HSE) “Asbestos and You” campaign urges tradespeople working in construction to be aware of disturbing asbestos. 

Two new free resources have been launched for workers to test and enhance their knowledge about asbestos and the risks associated with it.

• Take a quick Asbestos and You quiz to test your knowledge on the risks of asbestos and how to protect yourself and others from exposure to asbestos fibres.
• Watch the webinar Lurking in the shadows - the truth about asbestos hosted by the Institution of Occupational Safety and Health to get an understanding of the campaign and hear experts discuss the risks continued to be associated with asbestos, particularly with younger workers.

See: Asbestos & You - Work Right to keep Britain safe

17th July 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) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Why Customer Service Matters

According to the Institute of Customer Service’s (ICS) most recent UK Customer Satisfaction Index more companies have declined in service than improved. In 2021 and 2022, customer satisfaction with complaint handling showed a steady improvement but this has now stalled and other areas of customer satisfaction that are predictive of business performance, such as measures of a company’s emotional connection with its customers, their customer ethos, and ethics, have also declined. 

ICS chief executive Joanna Causon comments, ”We are seeing a greater polarisation in customer satisfaction performance, with some companies pulling away from the pack and others alas falling considerably behind. Overall, this is not good for the UK’s standing and we need to address this decline to ensure we can really transform our trading position as a country as well as lift the spirits of customers and employees alike”.

She adds “We know customer attitudes and behaviours have changed in the last six months and will continue to evolve: not only are people thinking more carefully about spending due to the cost-of living crisis, but reducing their level of spending, shopping around more to find the best deals, and making fewer impulse or large purchases; there are longer term changes in behaviour that embody trends towards more mindful consumption and environmental sustainability”.

In today’s economy, keeping customers happy and getting them to remain loyal is now essential. Happy and successful customers are the lifeblood of any business. They are what transforms your growth from a funnel into a flywheel.  So, what are they key areas to focus on?

While we know there are some brilliant examples of exceptional above and beyond customer care from our clients, there is always room for improvement.

The demands of the last few years have certainly impacted customer care and resources have been stretched, but it’s important now to look ahead, put remedial steps in place, and ensure that the customer really does feel like they are important!

Here are a few reminders to help you keep your customers feeling happy and buying from your business and not your competitors: 

Recognise that people buy from people
If you rely on telephone sales then one key component of customer care is to offer a name to establish a real and personal connection. Revisit your call handling practices and ensure that attention to detail is applied to every stage, including the very first greeting.

Make your shop window transact
Websites are the shop window for many businesses and marketing teams spend considerable time and money driving prospective clients to them. So, when web traffic turns into enquiries, it’s important it’s met with a timely response. If you have online enquiries, make sure you follow them up. Consistent enquiry handling is key.

Test all of your ‘get in touch’ forms on your website and your general enquiries email. Do they work as they should, are they passing enquiries to the right place and is there room for improvement?

Embrace live chat
Many smaller businesses do not offer any form of webchat and of those that do, responsiveness is hit and miss. A recent survey showed 50% of chats
were responded to within 30 seconds yet the other 50% weren’t answered at all!

Customers expect communication with their suppliers to be easy, almost instant, and, increasingly, 24/7 so it’s important to offer a variety of channels. Live chat has the potential to deliver the quickest wins when it comes to customer experience. Managing it in-house it can be time-onerous and inconsistent, or conversations aren’t recorded centrally, so consider an outsourced service. There are many companies who offer this service, just search “Outsourced live chat”.

See: Why Customer Service Matters ⋆ Institute of Customer Service
 
How to attract new talent
It's up to employers how they recruit for their organisation. There are no set processes that are required by law. But employers must follow a fair process and certain laws that apply throughout the whole recruitment process, including discrimination and data protection. Employers should also follow good practice and any policies their organisation might have on recruitment and equality, diversity, and inclusion.

Recruiting new employees is administratively cumbersome and economic conditions mean there are fewer applicants, so now is the time to be a little “different”!

For example, some employers are now offering “Wellbeing leave” in addition to the usual holiday package. If you want to recruit more you have to get serious about the process and be on it 24/7, 365!

There are a number of actions you can take to make your business attractive to new staff. In addition to reviewing your pay and conditions to be as competitive as possible, these include:

• Tasking recruitment as a permanent process; 
• Regularly asking existing staff, customers and suppliers for introductions;
• Offering incentives for referrals;
• Making sure you are running constant online social media and local advertisements;
• Embracing flexibility in hours and location in your business;
• Introducing a “Golden Hello” and loyalty bonusses for length of service (typically one to three years);
• Advertising testimonials from existing staff;
• Making your company and the job sound as attractive as possible by outlining the position to sound prestigious and challenging. These two factors are big incentives for bright potential candidates;
• Knowing that job satisfaction comes from feeling respected and having the opportunity to learn new things and excel in the face of obstacles when advertising the role; and
• Conveying your business’s personality so potential employees get a feel for what it would be like to work for you;

Useful guidance on the procedures for recruitment can be seen in the ACAS guide “Recruiting staff” which can be seen here: Recruiting staff (acas.org.uk)
 
New information hub launched to help limited company directors make the right decisions at the right time
The Insolvency Service has launched a new online information hub to support company directors. The hub hosts guidance and information on a range of business themes commonly faced by companies and aims to help company directors to push their business forward by being more aware of potential pitfalls.

It is specifically designed for directors of micro, small, and medium-size limited companies, although it will also be useful to others.
Directors of limited companies, unlike sole traders, must comply with certain statutory obligations. These can range from hairdressers and builders with their own companies to directors of mid-sized companies in the IT sector, for example.

Examples of the kind of advice available on the information hub include:

• understanding company finances, director duties and obligations;
• how to recognise early warning signs of financial distress; and
• how and when limited company debts can become personal debts.

The new information hub was developed after Insolvency Service research found that company directors wanted a single online hub to host clear and concise guidance, with signposts to more detailed guidance and support where needed. As well as direct research with company directors, the project also worked closely with teams in HMRC and Companies House, business finance specialists at Royal Bank of Scotland, and business groups including The Directors Helpline, the Institute for Turnaround (IFT), the Institute for Directors (IoD), and the Federation of Small Business (FSB) amongst others.

See: Director information hub - GOV.UK (www.gov.uk)
 
Midlife MOT website
A new online Midlife MOT has been launched to help older workers with financial planning, health guidance, and to assess what their skills mean for their careers and futures.

The free Midlife MOT website encourages people to review their skills and help to break down barriers to the labour market. It brings together trusted services, help such as a jobseeker toolkit, and charity resources. It will allow people to identify job opportunities across the UK as well as better preparing them for later life and their retirement.

The website signposts to key organisations and charities, including the NHS, Mind, MoneyHelper, Citizens Advice, and the Department for Work and Pension’s (DWP) find a job portal.

As part of this, MoneyHelper has created a financial tool which will provide a personalised report to help people understand what to prioritise to improve their financial position, from now through to retirement.

The Midlife MOT was originally launched in Jobcentres across England with work coaches working with claimants to encourage planning for later life and boosting their confidence. Following the initial success, the Government has looked at ways of reaching more people with the service and making it accessible for everyone – right across the UK.

See: Check the status of your work, health and money - Midlife MOT (jobhelp.campaign.gov.uk)
 

 
Deadline for topping up NI contributions extended again to 5 April 2025
With all of the changes to personal pensions in the Spring Budget, maximising the State Pension entitlement should not be overlooked. The full rate of new State Pension increased to £203.85 per week (£10,600 pa) from 6 April 2023; a 10.1% increase over the 2022/23 rate, as a result of the “triple lock” being restored.
At least 10 qualifying years are required to get a UK State Pension, with full State Pension entitlement at 35 qualifying years. Individuals should log into their Government Gateway account to check their contribution record as they may be entitled to credit for missing years, for example if they were on maternity leave or a carer. They can also check how many more qualifying years they need for a full State Pension, and if necessary, make national insurance (NI) contributions for missing years.
Normally it is only possible to make voluntary NI contributions for the past 6 tax years, to top up any missing or partial years.  The Government announced an extended deadline to allow taxpayers to make NI contributions in respect of missing years going back to April 2006.  This opportunity was originally scheduled to end on 5 April 2023 and was then extended to 31 July 2023.  The deadline has now been extended to 5 April 2025.
Class 3 voluntary NI contributions made before 5 April 2025 will be at the Class 3 voluntary NI rates for the 2022/23 tax year of £15.85 per week, or £824.20 for each full year.
See: Deadline for voluntary National Insurance contributions extended to April 2025 - GOV.UK (www.gov.uk)

Postage Stamps – use them by 31 July!
The Royal Mail have added barcodes to their regular stamps. After 31 July 2023, regular stamps without a barcode will no longer be valid. You can either use up these stamps before this deadline or swap them for the new barcoded ones.
 
The stamps that are changing are the stamps that will be very familiar to you. They feature the profile of Her Late Majesty The Queen on a plain coloured background.
Your non-barcoded stamps can be exchanged for the new barcoded version through the Stamp Swap Out scheme. 
See: Know where your old stamps are? | Royal Mail Group Ltd
 
Working from home and the £6 per week allowance
During the COVID pandemic the government relaxed the conditions to enable those working from home to be paid £6 a week tax free by their employer, or, where that was not paid by the employer, they could claim relief for £6 a week against their employment income for a tax refund from HMRC. Those relaxed rules applied for 2020/21 and 2021/22. Many employers and employees may not be aware that from 6 April 2022 the rules reverted to the strict statutory position. Employees can claim tax relief if they have to work from home under a homeworking agreement, for example because:

• their job requires them to live far away from the office,
• their employer does not have an office, or
• the office is closed every Friday and employees are required to work from home that day.

Tax relief cannot be claimed if the employee choses to work from home.
See: Claim tax relief for your job expenses: Working from home - GOV.UK (www.gov.uk)
 
Government funding for free childcare offers
Nurseries are set to receive £204 million as part of the Government’s promise to deliver the largest ever investment in childcare.

The plans, which were announced in the Spring Budget, are designed to remove barriers to support parents to return to work and help to grow the economy by making childcare more accessible.

Every area across the country is getting a share of the government funding which childcare providers can use to ease cost pressures such as staffing costs, training, and bills. Funding rates per child paid from September will increase from an average of £5.29 to £5.62 for three and four-year-olds, and from an average of £6.00 to £7.95 for two-year-olds.

From April 2024, eligible working parents of two-year-olds will get a new offer of 15 free hours per week of free childcare. From September 2024, eligible parents will get 15 free hours from nine months until their children start school, and from September 2025, they will get 30 free hours from nine months until the start of school.

Separately, the government has today confirmed plans to deliver its ambition for all parents of primary school aged children to access childcare in their local area between 8am and 6pm.

16 local authorities from Barnsley to Wiltshire have been selected to work with the government to develop plans for this universal provision, with some of these areas expected to be the first to rollout the wraparound care as early as summer 2024.

All local authorities will start to receive their share of £289 million in funding from January 2024 to support their delivery of the programme, with parents expected to see an expansion in the availability of wraparound care from September 2024.

See: Government funding boost kickstarts delivery of historic new free childcare offers - GOV.UK (www.gov.uk)

14th July 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) FCA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk

Is “Going Green” an option for smaller businesses?
After some of the hottest temperatures seen on record last month we have been reminded about global warming and how small businesses could help the drive towards net zero.

Smaller businesses have recently been affected by the pandemic, higher interest and inflation, and increased energy costs, so it is worth discussing the viability of a green policy during these tough times.   

What is a “Sustainable” business?
A sustainable business, or a “green business”, is an enterprise that has minimal negative impact or potentially a positive effect on the global or local environment, community, society, or economy.

Going green could boost competitiveness and specifically improve a business’s reputation with its customers and staff. Most importantly, many surveys reveal that consumers are increasingly assessing a company's environmental credentials, while business supply chains are under scrutiny to minimise environmental, ethical, and social impacts.

There are also several current incentives for environmentally switched-on businesses, and we anticipate future legislation designed to support government environmental pledges.

With a focus on climate change and the environment, sustainability should be increasingly at the heart of business operations.

Even small changes can help move UK businesses towards a greener future. The British business bank lists eight ideas on sustainability:

• Don’t use single use plastic;
• Use sustainable suppliers and service providers;
• Implement a greener commute scheme;
• Switch to low energy lightbulbs;
• Install smart power strips;
• Reduce water usage;
• Make workspaces more heat efficient; and
• Install built in recycling units. 

For the full details see: 8 sustainable business ideas - British Business Bank (british-business-bank.co.uk)

The British Business Bank has a wealth of information and guides on how to create a sustainable business and prepare for green growth. Take action with their green business guides, jargon busters and helpful explainers.

Find out what Net Zero actually means with their Green Decoder. The online guide has been co-created with Nottingham Business School, Nottingham Trent University to help smaller businesses decipher the terminology surrounding decarbonisation.

You can also commit to the UK Business Climate Hub and take steps to be greener, saving your business money and saving the planet too.

For further information visit Sustainability - British Business Bank (british-business-bank.co.uk)
 
Does your business need inspiration to grow?
Ask us for a copy of our guide called “57 Ways to Grow Your Business!”

Our publication is packed full of bright ideas for the Serious Entrepreneur and starts with the four basics of growth before looking at some really useful ideas.

All the ideas in this guide ultimately revolve around four basic insights about growing a business by:

1. Increasing the number of customers you have;
2. Increasing the number of times each one does business with you;
3. Increasing the average value of each transaction; and
4. Improving your own effectiveness and efficiency.

Here are some other business principles that we explore in the guide:

• What you can measure, you can manage;
• Building unique core differentiators and focusing on them constantly;
• It’s more important to be different than it is to be better;
• Cutting the price is always an option but there is usually a better way – increasing value;
• Break compromises and lower the barriers to people doing business with you;
• Systemising every aspect of your business;
• Empower your team to make it right for every customer; and
• Creating a clear and detailed action plan.

Ask us for a copy – you never know, there may be a gem or two in there for you to help you grow faster!
 
Accident, sickness and unemployment cover explained
We never know what life has in store for us. We hope that everything goes our way, but we can’t guarantee it. What can be guaranteed is that the bills keep coming in even if our income doesn’t. 

Putting food on the table and a roof over it is expensive and could become impossible if a serious illness, accident or job loss were to stop us working. State benefits exist, but the sums involved and the help they provide is limited.

Accident, Sickness and Unemployment cover, also known as ASU, is a type of insurance designed to replace a lost income. It is an insurance policy that pays you a tax-free proportion of your lost salary every month for a period of time over 12 or 24 months if you are unable to work due to illness, injury or redundancy. It can help you cover your financial commitments such as mortgage, rent, bills or loan repayments until you are fit enough to return to work, or until you find a new job.

Short-term policies can pay out up to 70% of your income every month for a limited period – usually up to two years. You can claim multiple times on your policy as long as you continue paying your premiums.

Long-term policies have no limit to your claim period, so you can continue receiving monthly benefits from your policy until you reach retirement age. However, long-term cover usually excludes cover for unemployment.

ASU pays you a tax-free proportion of your lost salary every month until you’re back on your feet. A typical policy can cover 50% to 70% of your monthly income, based on your salary or your gross annual earnings.

After stopping work, you will need to wait out a set period before you begin receiving ASU benefits. This can be set to match any sick pay you may have. Setting longer periods can save you money on your premiums.

Self-employed individuals may not qualify for unemployment cover under an ASU policy, so they should consider accident and sickness only cover.

Other types of income protection include Payment Protection Insurance (PPI) which will cover the repayments for outstanding loans if you stop earning. The pay-outs usually go directly to your lender.

Mortgage PPI will cover your mortgage payments if you can’t work. Some policies continue to pay out until your mortgage is paid off. Mortgage PPI pay-outs usually go to the policyholder.

If you can’t count on a generous sick pay or redundancy package from your employer, ASU can provide valuable peace of mind. It can be even more important if you are self-employed or run a small business where the income depends on you and your hard work. 

We recommend that our clients get expert help from an Independent Financial Adviser (IFA). They can help you look at your options for ASU cover.

If you haven’t got an IFA then please talk to us or see: Finding an adviser | FCA
 
Advertising Standards Authority Advice for Small Businesses
The UK advertising rules (known as the ‘CAP Code’ and ‘BCAP Code’), apply to businesses based in the UK and everyone who markets or advertises their business in ‘UK media’, from a sole trader right through to a global conglomerate. These rules help ensure consumers are treated fairly, and that businesses benefit from a level playing field.

The Advertising Standards Authority (ASA) has created a new resource especially for small businesses. The resource is made up of a collection of materials to help businesses understand advertisement  rules and how best to follow them. Topics include how to avoid misleading consumers, details on pricing claims and how to responsibly market promotions and competitions.

See: Advice for small businesses - ASA | CAP
 
High energy use businesses urged to claim extra discount on energy bills
Energy-intensive businesses and heat network operators have less than three weeks to apply for UK Government support that could see their wholesale energy bills reduced by as much as a fifth.

All eligible businesses are urged to act now to benefit from the support available through the Energy Bills Discount Scheme.

Companies have until 25 July 2023 to apply, with discounts applied to their bills until April next year. 

See: High energy use businesses urged to claim extra discount on energy bills - GOV.UK (www.gov.uk)
 
Fund To Drive Export Growth
The Institute of Export & International Trade (IOE&IT) is the professional membership body representing and supporting the interests of everyone involved in importing, exporting, and international trade.

The IOE&IT has launched a £5 million Export Support Programme to help UK businesses. The programme will provide exporters with a bespoke package of training and consultancy to reflect their circumstances and needs. 

The support package has been put together by industry experts, considering the most common and difficult obstacles faced by SMEs wanting to export.

See: IOE&IT Export Support Package | Get Started In Trade
 
Plastics Remote Sensing Discovery Programme
Innovate UK and its partners have created a series of scoping activities to gather information on how remote sensing is used to understand, monitor, and mitigate plastic litter.

As part of these activities, they are inviting businesses to complete a survey, which aims to gather information on the current challenges surrounding remote sensing techniques for plastic litter studies and the challenges of policy making.

They will use these survey results to craft three webinars/workshops that will discuss how the challenges identified by the survey could be addressed.

The first webinar will take place on Tuesday 18 July 2023 from 2pm to 5pm.

Ultimately, the hope is that this survey and other scoping activities will inform decisions about research needs, funding allocation, or policy development surrounding plastic litter.

For the purposes of this initiative, 'remote sensing' is defined as 'obtaining information about objects or areas from a distance, typically from satellites or drones' and 'plastic litter' as 'plastic products that have been discarded, disposed of, or abandoned'.

See: Plastics Remote Sensing Discovery Programme workshop - Innovate UK KTN (ktn-uk.org)
 
Consultation: The future of customs declarations
HMRC is seeking views on potential simplifications to customs declarations and the use of technology to facilitate declarations and other customs processes.

This call for evidence is seeking views on potential simplifications to customs declarations and the way that businesses use technology to facilitate the completion of customs declarations and other customs processes.

This will be of interest to traders of all sizes making either import or export movements, including traders who complete declarations themselves and those who use customs intermediaries and so do not interact with HMRC customs systems directly.

It will also be of interest to customs intermediaries and customs software providers, as well as businesses who do not currently engage in international trade but may if customs processes could be simplified or better facilitated by technology.

The call for evidence will run for 10 weeks starting on 29 June 2023 and ending on 8 September 2023.

See: The future of customs declarations - call for evidence - GOV.UK (www.gov.uk)
 
Alcohol Duty system changes are imminent
On 1 August 2023, the Alcohol Duty system will change, taxing all alcoholic drinks based on their alcohol by volume (ABV).

This replaces the current Alcohol Duty system, which consists of four separate taxes covering beer, cider, spirits, wine and made-wine.

Small businesses as well as pubs and restaurants could benefit from reduced rates on qualifying products, such as draught beer and cider.

See: One month to go until Alcohol Duty system changes - GOV.UK (www.gov.uk)
 
Financial Services and Markets Bill receives Royal Assent
The Financial Services and Markets Act 2023 is part of the UK government’s plan to grow the economy and create an open, sustainable, and technologically advanced financial services sector.

It is designed to help tailor financial services regulation to fit UK markets. The Act aims to improve competitiveness of the UK as a global financial centre and deliver better outcomes for consumers and businesses. It contains new powers that will set the path for reforms to the European Union rules on financial services the UK has followed since 2016.

The Act also introduces new secondary objectives for the Financial Conduct Authority and the Prudential Regulation Authority – to facilitate the growth and international competitiveness of the UK economy. This will be backed up by changes to enhance the scrutiny and accountability of the regulators, including ensuring regular reporting and a greater focus on cost-benefit analyses.

See: Rocket boost for UK economy as Financial Services and Markets Bill receives Royal Assent - GOV.UK (www.gov.uk)
 
Get Paid Guide for music creators
This new guide equips music creators with step-by-step guidance on what music data is, why it matters, and what to do with it.

The Intellectual Property Office (IPO) has recently partnered with the Performing Right Society for Music (PRS), The Ivors Academy and The Music Publishers Association to develop and launch a new website that helps songwriters, composers, artists, and those supporting them, demystify music metadata. This follows the publication of the UK Industry Agreement on Music Streaming Metadata in May 2023.

The digital Get Paid Guide equips music creators with quick and easy step-by-step guidance on what music data is, why it matters, and what to do with it.

Widespread lack of awareness around accurate metadata input within the creator community means incomplete data can lead to significant delays to creators being paid for the use of their works, and in some cases not being paid at all. The Get Paid Guide empowers songwriters and composers to take control of their music data and learn how to manage it correctly and successfully.

Music creators and songwriters can watch short tutorials on International Standard Musical Work (ISWC) and International Standard Recording (ISRC) codes, access a useful checklist to help manage music data, and take part in a quiz to put their knowledge to the test.

The guide also includes help with frequently asked questions from the creator community including the use of pseudonyms and what to do when covering another artist’s song.

See: Get Paid Guide

7th July 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

Retirement planning – are you on track?
The closer you are to retirement, the more important your retirement planning becomes.

The last five years of work may be some of the most critical of all. If your plans are in place and your pension pot has grown to a level that can provide the income you need in your retirement, you may be able to relax and look forward to a life of ease.

However, you will need to review your pension regularly to make sure that the pot is maintaining its level to maintain your retirement income. The value of a fund is not guaranteed; it may go down as well as up in line with investment performance. 

But are you confident that you have made all the provisions you need for the kind of retirement you want? If not, you have five years to hopefully get back on track – or you might find that you will be working a lot longer before you can afford to retire. 

The first step in your five-year planning is to work out how much you will need in retirement.

A single pensioner needs an annual retirement income of at least £12,800 to fund a minimum lifestyle, according to the Pensions and Lifetime Savings Association.

But you will probably want to cover more than your basic needs. You will want enough cash to run a car, perhaps, and to enjoy holidays and evenings out.
You might want to maintain your current lifestyle rather than try to enjoy a life of self-denial.

Your outgoings may be reduced. You will not need to commute, and you will not need to save for a pension once you retire, but other costs will be much the same – and likely to increase in the years to come.

75% of your current income might be something to aim for, but you need to be certain that you can cover all the costs you will still be faced with.

The big problem is inflation. It might not be running at 10% in five years’ time – but there is no guarantee of that. Already many pensioners with fixed incomes are seeing their pension pot running out much faster than they anticipated. If you don’t want to join them, you need to add a hefty margin to your projected monthly spending forecast.

Look at your monthly expenses now – and look what they might be in five, ten, and twenty years’ time. How far into the future should you be looking?

You can make an estimate based on your general level of health and family history. For example, if your family typically live into their 90s and you are in good health, then you may want to assume that you’ll still be around at that age. But remember – you may not be able to live as independently as you do now – you might need to budget for the costs of care.

The full state pension is around £10,600 a year. By itself it’s not enough for a comfortable retirement, although it does make a big contribution towards it.

But it needs to work alongside your employer’s or your private pension. If you qualify for the full government amount – £203.85 a week at present, or £10,600 a year – you need to find at least an extra £2,200 a year from your personal savings to fund even the most basic retirement.

You will probably want a sum comparable to your current income. To understand whether it is realistic you need to look at your employer’s and personal pension plans, and your savings and investments, to see exactly what your income will be.

If your calculations show that you are not financially prepared to retire in five years, here are some things to consider:

• Could you make changes to your planned retirement lifestyle that would reduce your expenses?
• Could you increase your retirement account contributions enough over the next five years so that they’ll produce sufficient income once you retire?
• Are there other sources of income that you could call on? 

The best way to find the answers is to get expert help from an Independent Financial Adviser (IFA). They can help you look at your five-year retirement plan, and help you make your money work harder so you can enjoy the retirement you deserve.

If you haven’t got an IFA then please talk to us or see: Finding an adviser | FCA
 
Rogue business rates agents – be aware!
The Valuation Office Agency (VOA) is urging businesses to protect themselves from rogue business rates agents. New rateable values for business properties came into effect in April 2023. Councils used these new values to calculate business rates bills.

Businesses can challenge their valuation if they think it’s incorrect. They can use a rating agent to do this. Some rogue agents submit inaccurate information, which can result in penalties or increased rates bills. Be cautious of anyone who guarantees they can secure big business rates reductions.

See: Be wary of rogue business rates agents - GOV.UK (www.gov.uk)
 
Heropreneurs - Former and serving service personnel and their families
Heropreneurs celebrates and recognises the energy, passion, and dedication of the British Armed Forces Community looking to forge a new path in business.

The Heropreneurs Mentoring Programme is freely available to former and serving service personnel and their families with a solid business proposition. The programme matches experienced industry leaders and self-made entrepreneurs with those looking to gain commercial insight and guidance for new products, services or businesses. 

Becoming a member of the mentoring programme opens up the next level of access to the Heropreneurs network. You will be given one-to-one mentoring with a Heropreneurs mentor, be invited to their exclusive Dragons' Den workshops and have early access to events, as well as unlimited free access to seminars, workshops and business resources. 

See: MENTORING | HEROPRENEURS
 
HMRC late payment interest rates to be revised June 2023
The Bank of England Monetary Policy Committee announced on 22 June 2023 to increase the Bank of England base rate to 5% from 4.5%. HMRC interest rates are linked to the Bank of England base rate.

As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will increase.

These changes will come into effect on:

• 3 July 2023 for quarterly instalment payments; and
• 11 July 2023 for non-quarterly instalments payments.

See: HMRC late payment interest rates to be revised after Bank of England increases base rate - GOV.UK (www.gov.uk)
 
Innovate UK Smart Grants
Innovate UK, part of UK Research and Innovation, is investing up to £25 million in the best game-changing ideas.

Ideas need to be designed for swift, successful commercialisation and be genuinely new and novel, not just disruptive within their sector.

All proposals must be business-focused, with deliverable, realistic, adequately resourced plans to achieve return on investment, growth and market share following project completion.

Applications can come from any area of technology and be applied to any part of the economy, such as, but not exclusively:

• net-zero,
• the arts, or
• design and media.

To be in scope, your proposal must demonstrate (among other things):

• a game-changing, innovative, and disruptive idea that will lead to new products, processes or services;
• an idea that is significantly ahead of others in the field, set for rapid commercialisation; and
• clear potential to positively impact the UK's position, productivity, and competitiveness within the global economy.

See: Competition overview - Innovate UK Smart grants: June 2023 - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
 
ICO Innovation Services
The Information Commissioner's Office (ICO) offers a range of services to innovative businesses using personal data in new and novel ways:

Innovation advice service
Still in its public beta test phase, this service is available to organisations of any size, in any sector. The service has been designed to help resolve data protection issues holding up the progress of new products, services, or business models.

Regulatory Sandbox
The Sandbox is a service suited to organisations that intend to, or are in the process of, developing innovative products and services using personal data for the benefit of the public. Current key areas of interest are biometrics, emerging technologies, and exceptional innovations.

The ICO welcomes expressions of interest from start-ups, small, or medium organisations and large organisations, across private, public, and voluntary sectors.

Data protection impact assessment (DPIA) advice
The ICO's DPIA team offers advice to organisations that have assessed their proposal to process personal data and have identified a high risk that they cannot reduce. The team provides written advice (typically within eight weeks), to help organisations to reduce or avoid the identified risk before proceeding.

Innovation Hub
The Hub helps innovators build privacy by design into their new products. It does this by working with regulators and innovation bodies who are running events where organisations and businesses develop, test, and improve new ideas that involve processing personal data.

The Hub's work is targeted at sectors that are innovating with personal data. Current priorities include digital industries, financial services, health, smart cities, and legal services.

See: ICO Innovation Services | ICO
 
Latest UK Export Academy webinars
Listed below are upcoming UK Export Academy webinars to help business owners and entrepreneurs across the UK boost their exporting skills and sell their goods and services to new markets worldwide.

The UK Export Academy is delivered in various stages depending on your skill level. These include essentials modules, masterclasses, market events, and sector-specific masterclasses.

Essentials
Build your knowledge and confidence if you’re relatively new to selling internationally or interested in learning how to start. These webinars offer a step-by-step guide to becoming an exporter.

7 July - Start your Journey with the UK Export Academy

Masterclasses
Already have a good understanding of the export basics? Attend these masterclasses to broaden your knowledge.

10 July - Selling Online Session 2 - Getting Started with International e-commerce: Understanding Online Platforms
12 July - Customs procedures explained - Part 1 of 2: Exporter responsibilities and export documentation
17 July - Selling Online Session 3 - Unlock the power of e-marketplaces: Boost your online exports with an omni-channel strategy
18 July - How to get paid when you sell overseas
20 July - Grow your business overseas with Innovate UK
24 July - Selling Online Session 4 - From clicks to conversions: Mastering social selling for e-commerce success
25 July - Pitch your way to success: top tips for selling abroad

Market events

Gain insight into the different markets overseas.
13 July - How Free Trade Agreements can help you export
 
See: UK Export Academy - great.gov.uk
 
Charities gain new powers as more legislative changes come into force
New powers from the Charities Act 2022 have now come into effect, resulting in changes for the sector in Wales and England.

The Charity Commission has updated its existing guidance to reflect these changes, which includes flexibility for trustees when seeking to dispose of charity land and new powers around the use of permanent endowment.

Changes that came into force on 14 June 2023:

Selling, leasing or otherwise disposing of charity land
Charities must comply with certain legal requirements before they dispose of charity land. Disposal can include selling, transferring or leasing charity land.

The Act simplifies some of these legal requirements. The changes include:

• widening the category of designated advisers who can provide charities with advice on certain disposals;
• confirming that a trustee, officer or employee can provide advice on a disposal if they meet the relevant requirements;
• giving trustees discretion to decide how to advertise a proposed disposal of charity land; and
• removing the requirement for charities to get Commission authority to grant a residential lease to a charity employee for a short periodic or fixed term tenancy.

The following provisions are expected to come into force by the end of 2023:

• the provisions relating to disposals by liquidators, provisional liquidators, receivers, mortgagees or administrators;
• the provisions relating to the taking out of mortgages by liquidators, provisional liquidators, receivers, mortgagees or administrators; and
• changes about what must be included in statements and certificates for both disposals and mortgages.

Using permanent endowment
Put simply, permanent endowment is property that your charity must keep rather than spend.

The Act introduces new statutory powers to enable:

• charities to spend, in certain circumstances, from a ‘smaller value’ permanent endowment fund of £25,000 or less without Commission authority; and
• certain charities to borrow up to 25% of the value of their permanent endowment fund without Commission authority.

Charities that cannot use the statutory powers will require Charity Commission authority.

A new statutory power enables charities that have opted into a total return approach to investment to use permanent endowment to make social investments with a negative or uncertain financial return, provided any losses are offset by other gains.

Charity names
The Commission can currently direct a charity to change its name if it is too similar to another charity’s name or is offensive or misleading.

The Act enables the Commission to:

• direct a charity to stop using a working name if it is too similar to another charity’s name or is offensive or misleading. A working name is any name used to identify a charity and under which the activities of the charity are carried out. For example, ‘Comic Relief’ is the working name of the charity ‘Charity Projects’;
• delay registration of a charity with an unsuitable name or delay entry of a new unsuitable name onto the Register of Charities; and
• use its powers in relation to exempt charities in consultation with the principal regulator.

See: Charities Act 2022: information about the changes being introduced - GOV.UK (www.gov.uk)