25th August 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 bank holiday weekend. 

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

Check what your tax code means
HMRC have released a new online tool to help taxpayers understand what their tax code means.

Tax codes are used by HMRC to tell an employer how much income tax to withhold through the “Pay as you earn” (PAYE) system. A person’s tax code can change from time to time, based on their personal circumstances. If it does, HMRC will inform the taxpayers of their new tax code by post or through their personal tax account. 

You can use this tool to find out what the numbers and letters in your tax code mean and how much tax you will pay. To check what your tax code means, you will need your:

• tax code;
• annual income, before any deductions;
• company benefits details; and
• State Pension amount.

See: Check what your tax code means - GOV.UK (www.gov.uk)

If you need to change your tax code, you can use another HMRC online tool entitled “Check your Income Tax for the current year”. The service covers the current tax year (6 April 2023 to 5 April 2024). You can use this service to:

• check your tax code and Personal Allowance;
• see your estimated income from any jobs and pensions and the tax you can expect to pay for the current tax year;
• update details of your income from jobs and pensions - you may pay too much or too little tax if they’re not up to date;
• see if your tax code has changed;
• tell HM Revenue and Customs (HMRC) about changes that affect your tax code; and
• update your employer or pension provider details.

To check your Income Tax, you’ll need to sign into your personal tax account using your Government Gateway user ID and password.

If you do not have a personal tax account
You need a Government Gateway user ID and password to set up a personal tax account. If you do not already have a user ID, you can create one when you sign in for the first time.

You’ll need your National Insurance number or postcode and 2 of the following:

• a valid UK passport;
• a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland);
• a payslip from the last 3 months or a P60 from your employer for the last tax year;
• details of a tax credit claim if you made one;
• details from a Self-Assessment tax return (in the last 2 years) if you made one; and
• information held on your credit record if you have one (such as loans, credit cards or mortgages).

See: Check your Income Tax for the current year - GOV.UK (www.gov.uk)
 
Rethinking business resilience
Being resilient by choice is critical for both survival and for strategic advantage in an era where disruption is the norm. The threats businesses face today are complex and becoming more frequent than in previous times. We have seen a pandemic, an ongoing war in Europe with supply chain issues, a cost of living crisis, extreme weather and frequent ongoing cyber-attacks.

These events are more interconnected than before the Pandemic, and resilience is now critical for maintaining consumer and stakeholder trust. Many leading businesses are now making resilience a strategic aim to look at how they make the right investments in technology, talent and data.

Here are some practical thoughts that may help you think about resilience in a more strategic way:

• Think about a 360-degree view of risk and look for trouble before it finds you. Look ahead and assess future scenarios, perform sensitivity analysis or “What if” situations on your budgets or projections and examine changes in costs and customer behaviours.
• Use Generative AI (such as ChatGPT) to examine the effect of a change on your projections and let it outline future risks in your industry and play out scenarios in your business. Using your insight, advanced data analytics can help you identify early warnings of issues and opportunities.
• Know what areas you want to succeed in and where you cannot afford to lose. This involves understanding why you want your business to be resilient and will help target any investment to what is critical to your success.
• Ask yourself “When does a problem go from being a nuisance to unbearable?” What would wreck your business? If you accept that interruptions are more common in the last few years and that they will continue, then look at the risk from a customer, reputational, and financial viewpoint. This will help you develop contingency plans for realistic worst-case scenarios and help you get a clear sense of purpose.
• You cannot prevent external events happening, but you can plan for the worst across the risks your business has identified. 
• Get everyone in your business involved in the strategy for building resilience. Discuss scenarios and canvass opinions. Ensure everyone knows their roles and responsibilities so they can act decisively during a crisis.

Our most successful clients are redesigning how they look at risk and using new predictive technology to play out scenarios to remain resilient in the future.

Please talk to us about the practical steps you can take, such as real time information, preparing budgets and “What if” analysis.  

See: Guide to building business resilience (british-business-bank.co.uk)
 
Protecting Employees from Stress at Work
The Working Minds campaign has been created by the Health and Safety Executive (HSE), Britain’s national regulator for workplace health and safety that is committed to improving the health of workers.

Tackling stress isn’t just the right thing to do, it’s a legal obligation. Working Minds can help you make it a routine priority for your business.

There are three main reasons employers should be looking to prevent stress and support good mental health in business:

1. It's the law;
2. It’s good for business; and
3. It’s the right thing to do.

Whether you’re a small business or a large corporation, the law requires all employers to prevent work-related stress to support good mental health in the workplace.

It’s important to remember that in the end we’re all just people – and every one of us faces pressures in and out of the workplace. By treating each other with respect and compassion at work we support our teams and colleagues to stay well.

The earlier a problem is tackled the less impact it will have for the person and your business. Stress affects people differently – what stresses one person may not affect another. Factors like skills and experience, age, or disability may all affect someone’s ability to cope.

You can get started today with these 5 steps: 

1. Reach out and have conversations;
2. Recognise the signs and causes of stress;
3. Respond to any risks identified by agreeing action points between employer and worker;
4. Reflect on the actions taken – have things improved?
5. Make it routine to check back in on how things are going.

If you think that a worker is having problems, encourage them to talk to someone, whether it’s their line manager, trade union representative, GP, or their occupational health team.

See: Working Minds Employers - Work Right to keep Britain safe
 
NCSC guidance on long-term cyber resilience
The National Cyber Security Centre (NCSC) states that UK organisations should prepare for an extended period of heightened cyber security threat. It has guidance for organisations on the steps to take to improve security.

The guidance is designed to be applicable to any period of sustained heightened cyber threat, including the one arising from Russia in light of events in and around Ukraine.

The NCSC says that the cyber threat to the UK remains heightened and they expect it to stay that way for some time.

The NCSC guidance aims to help organisations avoid complacency and staff burnout. It advises that increased workloads for cyber security staff over an extended period can harm wellbeing and lead to lower productivity, with a potential rise in unsafe behaviours or errors.

The recommended actions in the guidance include:

• following the NCSC's actions to take when the cyber threat is heightened guidance;
• revisiting risk-based decisions taken during the initial phase of heightened threat;
• empowering cyber staff to make day-to-day decisions about the threat response without requiring additional oversight;
• ensuring workloads are spread evenly across individuals and teams;
• ensuring frontline cyber staff can take breaks to recharge; and
• accelerating planned action to harden networks and boost defence capabilities.

See: Maintaining a sustainable strengthened cyber security posture - NCSC.GOV.UK
 
SME Climate Hub
The SME Climate Hub is here to help small businesses deliver on their climate goals and they have developed free, practical resources specifically tailored to support SMEs on their net zero journey, through strategic emission reductions and opportunities for climate leadership.

Businesses can calculate their emissions with the Business Carbon Calculator, learn how to take action with the Climate Fit education course, and access support through the Financial Support guide and 1.5°C Business Playbook.

Research shows that such measures can significantly save companies on their overheads. For example:

• switching to EVs can not only cut running costs but also lower servicing and maintenance costs by around 40% compared to petrol or diesel cars;
• with up to half of companies’ overall electricity bill coming from lighting, making changes such as switching to LED bulbs can help shave up to 40% off bills;
• giving drivers fuel efficiency training can help save companies an average of 15% on fuel use and carbon emissions in transporting goods.

The new support is aimed particularly at 5.5 million small and medium sized businesses (SMEs) in the UK, with business and industry accounting for around 25% of emissions. Research shows that 90% of SMEs are keen to tackle climate change but find it difficult to know how or where to start to find the right solutions to reduce their carbon footprint.

Studies also show 85% of consumers are more likely to buy from a business with a reputation for sustainability, meaning going green can help grow the economy.

The SME Climate Hub has also partnered with Oxford University to provide SMEs with a library of external tools that offer additional support to small businesses taking concrete steps towards climate action.

See: Tools and resources - SME Climate Hub
 
Net Zero Living: User focused design competition
Innovate UK, part of UK Research and Innovation, will work with micro, small or medium-sized enterprises (SMEs) to invest up to £3.8 million in innovation projects. These will be to support the net zero agenda.
 
The Design Council will support the implementation of this competition by providing bespoke support to your project.

The aim of this competition is to support ambitious, early-stage growth businesses in developing your net zero products or services to meet demand.

This support will include budget to hire the expertise of living laboratories to test your products or services with end users, so they better meet the requirement of the target market.

Your project must focus on the development of your product or service and demonstrating it in a relevant market. The user focus can be achieved by testing the product or service in a living laboratory and demonstrating results that will both support the net zero agenda and answer a market need. Your total grant funding request must be between £50,000 and £100,000.

The closing date for applications is Wednesday 4 October 2023.

See: Competition overview - Net Zero Living: User focused design - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
 
Guidance for small businesses on using facial recognition technology
Facial recognition technology (FRT) identifies or otherwise recognises a person from a digital facial image. Businesses can use FRT in a variety of contexts - for example, in allowing access to devices, taking payments, or allowing entry to secure areas.

Depending on the use, FRT involves processing personal data, biometric data and special category personal data. Such technologies can intrude on people's privacy, so businesses need to think carefully when deciding if they should implement them.

If you are a small business looking to begin using facial recognition technology, read the ICO's latest FAQ about using FRT for payment, entry, or other security systems.

The information highlights key issues to be aware of, such as:

• what you need to consider before using this technology;
• when you must complete a data protection impact assessment;
• how to identify and satisfy a special category condition; and
• what to include in your privacy notice if you use FRT.

See: Additional considerations for technologies other than CCTV | ICO
 
Small Business Britain's Small & Mighty Enterprise Programme
The Small Business Britain's Small & Mighty Enterprise Programme to help grow small businesses with expert guidance and mentoring is a six-week programme, designed to supercharge sole traders and micro businesses and concludes with a growth plan to support the next year of business opportunity. It will be delivered entirely online, allowing access from anywhere in the UK with flexible learning enabling opportunities for all.

What does the course include?

• Live weekly sessions recorded and available on a private Small Business Britain website available exclusively to course participants.
• Weekly worksheets to embed learning outcomes accessible on the private website hub, developed by each week’s expert trainers.
• Development of an Action Plan: a twelve-month plan to grow and flourish with the support of expert mentors.
• Two hours of 1-2-1 and group mentoring over the six weeks from expert mentors around the UK.
• Inclusion in an exclusive, supportive community to ask and answer questions, access experts and teachers, share experiences and network with other small businesses.

See: Small Business Britain | Champion. Inspire. Accelerate

18th August 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

Dealing with inflation  
With continuing inflation in the UK, many of us and our businesses have been put “off track” in the short to medium term. The Bank of England recently increased interest rates by a quarter of a percentage point to 5.25 per cent. The rise was as expected by economists in view of the latest data showing annual inflation at 7.9 per cent in June which is four times higher than the Bank of England’s 2 per cent target.

Inflation is a problem for most of us. Savers find that the value of their cash is being rapidly eroded. At 10% inflation, the £100 you save today will only buy £90 worth of goods in a year’s time. Many people are finding that their household budgets are stressed.

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 your start your golden years can look less than generous after 10 years of inflation, and a recipe for misery after 20.  A basic level annuity will mean having the buying power of your income eroded every year. An inflation-linked annuity will start off providing a much smaller income, but one that keeps increasing over time. A drawdown pension, where your pension pot remains invested, and you draw down an income as you need it, is more flexible – 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 tend to do well as rising commodity prices are good for their bottom lines. Utility groups often pay dividends linked to inflation. However, inflation could be bad for others such as retailers and supermarkets, which may lack the ability to increase prices. Luxury goods may be shunned when households tighten their belts.

4. Secure a low-rate mortgage before rates rise
Inflation has already triggered rate rises, and mortgages are substantially more expensive than they were last year. This process could continue – the Bank of England has hinted as much. To avoid increasing interest costs which could mean that buying your home becomes difficult or even impossible, it makes sense to 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
 
Preparing your business for emergencies
The UK government has a webpage with guidance to help businesses identify and prepare for the hazards and threats that may disrupt their operations.

Being more prepared and resilient could give a competitive advantage to your business. The actions you take to make your business resilient will depend on your circumstances and the risks you are comfortable taking. Having assessed these, only you can decide how much time, and possibly money, you want to invest in increasing your resilience.

These suggested actions will help you get started:

• Do a business resilience health check to help you understand how to make your company prepared for emergencies by using the weblink below.
• Talk to neighbours, businesses, and customers about your plans and how you could support each other.
• Test your plan and adjust it where necessary to avoid complications in an emergency.
• Make sure all your staff have copies of your plan and that they know their responsibilities in an emergency.
• Read the guidance for preparing your businesses for flooding and for preparing your premises.

See: Preparing for emergencies - GOV.UK (www.gov.uk)
 
DVLA launches new online account for motorists
Motorists can opt for digital vehicle tax reminders rather than having to wait for a paper reminder to drop through their letter box. The change comes as part of DVLA’s new Driver and vehicles account service, which was launched on GOV.UK last week.

The new service, which allows motorists to easily access their driver and vehicle information in one place, has been launched as a public beta and DVLA are asking motorists to provide feedback to help develop the service.

The Driver and vehicles account is easy-to-use, secure, and it takes around 5 minutes to sign up. Once an account has been set up, motorists can simply sign in using their email and password, and will be able to:

• view their driving licence information, including endorsements and penalty points;
• view vehicles that are registered to them, including tax and MOT status;
• change their contact preferences;
• set up vehicle tax reminders by email and for the first time by SMS text; and
• choose to stop getting vehicle tax reminders by post.

See: Driver and vehicles account: sign in or set up - GOV.UK (www.gov.uk)
 
Additional information required for Research & Development (R&D) claims
The latest Finance Act includes two changes that will affect all R&D claims:

1. A requirement to provide additional information before an R&D claim is made; and
2. A requirement for certain companies to make a claim notification within six months after the end of the accounting period for which they want to claim R&D relief.

When a limited company intends to make a claim for research and development (R&D) tax relief, from 8 August 2023 onwards it will need to provide detailed information to HMRC in advance.

You will need to set out details of the R&D project(s) undertaken, including the scientific or technical uncertainty that the work was seeking to overcome, along with details of the work done to resolve that uncertainty.

For accounting periods beginning on or after 1 April 2023, there is also a new R&D claim notification form which must be submitted within the ‘claim notification period’, which ends six months after the end of the accounting period for which the company wants to claim R&D relief.

Broadly, new claimants or those who haven’t claimed for three years will need to complete this claim notification form for accounting periods beginning on or after 1 April 2023.

Talk to us; we can assist you in preparing the notification or prepare it on your behalf.

See: Submit detailed information before you claim Research and Development (R&D) tax relief - GOV.UK (www.gov.uk)

HMRC late payment interest rates to be revised after Bank of England increases base rate
The Bank of England Monetary Policy Committee announced an increase to the Bank of England base rate from 5.00% to 5.25% on 3 August 2023.
HMRC interest rates are linked to the Bank of England base rate.

Because the base rate has changed, HMRC interest rates for late payment and repayment will increase.

These changes will come into effect on:

• 14 August 2023 for quarterly instalment payments; and
• 22 August 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)

UK Technology Fast 50 Awards 2023
Nominations for 2023’s Fast 50 technology awards are now open and will be closing at midnight on 1 September 2023. The awards highlight the 50 fastest growing tech companies in the UK.

The UK Technology Fast 50 programme has four categories:

• The UK Technology Fast 50,
• Fast 50 Women in Leadership,
• Regional Winners, and
• Rising Stars.

See: Home | UK Technology Fast 50 | Deloitte UK
 
UK Space Agency funding for technologies to monitor the Earth
The £15 million UK Space Agency funding will support the research and experimental development of space-based instruments, aimed at supporting a range of environmental services, which could include meteorology, climate monitoring, environmental management, agriculture and urban planning, and improving scientific knowledge.

The UK government considers the UK to be a world leader in Earth Observation (EO) tools, technologies, and data use. This funding will help to accelerate the development of promising UK EO technologies which could be flown on satellites in the next few years.

The National Space Strategy in Action report, published in July, set out the government’s plans for how the UK will remain at the forefront of EO technology and know-how for commercial and public services.

See: UK Space Agency funding for technologies to monitor the Earth - GOV.UK (www.gov.uk)
 
Workplace Charging Scheme
The Workplace Charging Scheme (WCS) is a voucher-based scheme that provides eligible businesses with support towards the upfront costs of the purchase and installation of electric vehicle (EV) chargepoints.

All businesses can use it to help provision chargepoints for their staff or fleets. Charities and small accommodation businesses can further use it to provision chargepoints for their guests or visitors.

The grant covers up to 75% of the total costs of the purchase and installation of EV chargepoints (inclusive of VAT), capped at a maximum of:

• £350 per socket; or
• 40 sockets across all sites per applicant – for instance, if you would like to install them in 40 sites, you will have 1 socket available per site.

Closing date: 31 March 2024.

See: Workplace Charging Scheme - GOV-UK Find a grant (find-government-grants.service.gov.uk)
 
New Taskforce to build UK nuclear skills
The nuclear industry underpins hundreds of thousands of jobs across the UK, both directly and through the extended supply chain, and is growing rapidly. Nuclear has a wide variety of roles ranging from technical scientific and engineering roles through to logistics, project management, commercial and finance – with a range of apprentice and graduate opportunities.

Chaired by Sir Simon Bollom – former Chief Executive Officer of Defence Equipment and Support - the Taskforce will address how the UK continues to build nuclear skills across its defence and civil workforce.

See: New Taskforce to build UK nuclear skills - GOV.UK (www.gov.uk)
 
£40 million fund launched for 5G across the UK
The UK government has launched a £40 million fund to spark local digital revolutions and unlock 5G benefits across the UK.

Local and regional authorities can apply for a share of the multi-million-pound fund, designed to accelerate innovation in sectors such as advanced manufacturing, transport, agriculture, and public services, helping to create better connected places across the UK.

The cash boost will create 5G Innovation Regions by awarding funding to areas that can demonstrate how they will drive the development and adoption of 5G and other technologies. This will make sure communities in towns, cities and rural areas across the UK take full advantage of the benefits advanced wireless connectivity and digital technologies can provide, as well as attract commercial investment to grow the economy.

Applications of the technology could include connecting sensors that analyse and help to improve air quality by better managing traffic, and deploying 5G-enabled drones that can scan fields and crops, collecting data on weather and environmental conditions.

The deadline for receipt of applications is 10 September 2023.

See: 5G Innovation Regions: open for applications - GOV.UK (www.gov.uk)
 
Tripling of fines for those supporting illegal migrants
Fines are to be more than tripled for employers and landlords who allow illegal migrants to work for them or rent their properties, in the biggest shake up of civil penalties since 2014, the Home Secretary announced last week.

The civil penalty for employers, which was last increased in 2014, will be raised to up to £45,000 per illegal worker for a first breach from £15,000, and up to £60,000 for repeat breaches from £20,000.

For landlords, the fines will increase from £80 per lodger and £1,000 per occupier for a first breach to up to £5,000 per lodger and £10,000 per occupier.

Repeat breaches will be up to £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000 respectively. The higher penalties will come in at the start of 2024.

Later this year, the Home Office will consult on options to strengthen action against licensed businesses who are employing illegal workers.

Since the start of 2018, almost 5,000 civil penalties have been issued to employers with a total value of £88.4 million. Meanwhile, landlords have been hit with over 320 civil penalties worth a total of £215,500 in the same period.

See: Tripling of fines for those supporting illegal migrants - GOV.UK (www.gov.uk)
 
North East could benefit from new funding for hydrogen transport
An £8 million government competition to support hydrogen-powered transport in the North East has been launched.

The Transport Secretary recently announced 2 winning projects of the second phase of the competition, encouraging more businesses and innovators to develop new technology that uses hydrogen fuel to accelerate transport decarbonisation.

One project led by ULEMCo, receiving a share of the £8 million funding, will develop hydrogen-powered airport ground-based support vehicles, such as tow trucks for aeroplanes and sweepers to clean runways. This will be based at Teesside international airport, which will help the airport reach its goal of being net zero by 2030.

Another of the winning projects led by Element 2 aims to create new hydrogen refuelling stations, helping to provide the infrastructure needed to scale up the use of hydrogen as a fuel. This funding will create 4 new publicly accessible hydrogen refuelling stations, increasing the number of refuelling stations in the UK by 50%. These will be used to fuel a range of vehicles, from airside vehicles to heavy goods vehicles (HGVs), including supermarket delivery trucks.

The announcement also confirmed £300,000 delivered directly to colleges in the area to support upskilling the local workforce and foster a specialised skills base and pipeline of talent, further cementing the Tees Valley’s status as the home of hydrogen.

See: North East to benefit from new funding for hydrogen transport - GOV.UK (www.gov.uk)
 
Autumn Covid-19 booster programme
People at greatest risk of serious illness from Covid, including care home residents, over 65s and frontline health and social care workers, are eligible for an autumn vaccine booster.

See: Health and Social Care Secretary statement on autumn booster programme - GOV.UK (www.gov.uk)

11th August 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

Filing your Self-Assessment return early
Taxpayers could take advantage of four key benefits when filing their tax return early, HM Revenue and Customs (HMRC) has stated.

The Self-Assessment deadline for the 2022 to 2023 tax year is 31 January 2024. Taxpayers who file early will have more control over their financial affairs and beat the January rush.

The four benefits HMRC promote are:

• Planning: find out what you owe for the 2022 to 2023 tax year as soon as you have filed, which allows for more accurate financial planning;
• Budgeting: spread the cost of your tax bill with weekly or monthly payments using HMRC’s Budget Payment Plan;
• Refund: Check if you’re due a refund in the HMRC app once you’ve filed; and
• Help: you can access a range of online guidance and information to help you file your return and get help if you are unable to pay your bill in full by the 31 January deadline. You may be able to set up a Time to Pay plan

Talk to us if you if you want to file early, we have considerable experience in dealing with HMRC.
 
Update on packaging reforms
The Extended producer responsibility (EPR) scheme has been deferred for a year until October 2025.

The UK government has stated that following engagement with industry, and in light of the pressure facing consumers and businesses in the current economic context, new rules to ensure packaging producers pay for the cost of recycling their packaging will be deferred a year from October 2024 to 2025.

The Government will use the additional year to continue to discuss the scheme’s design with industry and reduce the costs of implementation wherever possible. In anticipation of EPR, producers have already started to use less packaging and adopt easier-to-recycle packaging formats, and they expect this process to continue – ensuring that costs are not then passed onto households later on.

This decision to defer producer payments has been taken jointly with the devolved administrations and will provide industry, local authorities, and waste management companies with more time to prepare to ensure the success of the scheme, helping make sure it is best designed to deliver on long term recycling goals while supporting households with the immediate challenge of high prices caused by inflation.

See: Update on packaging reforms to help drive down inflation - GOV.UK (www.gov.uk)
 
Managing work-related stress
Stress is defined by the Health and Safety Executive (HSE) as 'the adverse reaction people have to excessive pressures or other types of demand placed on them'.

Some people benefit from a certain amount of pressure as it can keep them motivated. However, when there is too much pressure it can lead to stress.

Stress is not an illness, but it can affect a person's physical and mental health.

If not properly managed, stress can cause:

• 'burnout' (physical and emotional exhaustion);
• Anxiety; and
• Depression.

Stress can increase the risk of physical illnesses. For example:

• heart disease;
• back pain;
• digestive conditions like irritable bowel syndrome; and
• skin conditions.

If an employer or employee spots signs of stress, it can be helpful to have an informal chat. This can help them understand how the person is feeling and what support they need. Getting help could prevent more serious problems.

Acas has released new guidance for employers to help them better manage employees' and their own stress.

See: Causes and signs of stress: Managing work-related stress - Acas
 
‘Essentials’ training for new conveyancing staff
HM Land Registry has launched a new initiative to help new conveyancing staff get to grips with the practices and processes involved in lodging high-quality applications, right from the word go.

Comprising a varied range of basic training materials, ‘HM Land Registry Essentials’ is a self-service training package aimed at helping new staff, as well as more experienced colleagues wanting an opportunity to refresh their knowledge.

The training package includes a mix of short videos, on-demand webinars, flowcharts, and guidance covering some of the most common issues facing new starters in the sector.

These include how to calculate certain Scale 2 fees as well hints and tips on avoiding requests for information (requisitions) relating to forms and deeds, execution, restrictions, and variations in names.

There’s also an easy-to-follow look at the three parts that generally make up a title register.

See: HM Land Registry Essentials - GOV.UK (www.gov.uk)
 
New shipbuilding lending scheme for the UK’s coastal communities
A new government scheme to help ship buyers access finance to buy UK-built vessels and upgrade existing ones has been launched. Through the Shipbuilding Credit Guarantee Scheme (SCGS) the government will act as a guarantor for lenders, unlocking credit for maritime firms.

It could help to boost the UK shipbuilding industry and drive growth in areas such as Liverpool, Plymouth, the Solent, Rosyth, Clydebank, and Belfast.

The SCGS could create new jobs and contribute to the economy, according to government estimates based on the demand for commercial shipbuilding in the UK.

The scheme also forms part of the Government’s £4 billion plan to revitalise UK shipbuilding and coastal communities through the National Shipbuilding Strategy Refresh announced last year.

See: New shipbuilding lending scheme to boost UK’s coastal communities - GOV.UK (www.gov.uk)
 
The Great British Businesswoman Awards 2023
The Great British Businesswoman Awards brings together the whole Great British Businesswoman Series community to celebrate the women who are changing the face of business across the United Kingdom.

The awards showcase the business role models, advocates and mentors, as well as the inspirational women leading businesses and those ascending to new heights! 

More than just an awards ceremony, the Great British Businesswoman Awards is a year-round programme of engagement, delivering touch points throughout the year to support and champion.

The awards are free to enter and the closing date to apply is 27 August 2023.

See: https://www.greatbritishbusinesswoman.co.uk/
 
The Clean Maritime Demonstration Competition
Innovate UK will work with The Department for Transport (DfT) to invest up to £34 million in innovation projects to reduce greenhouse gas emissions from shipping.

These will be to develop and deploy real-world operational demonstrations of clean maritime solutions as well as carry out innovative feasibility studies and pre-deployment trials.

The Clean Maritime Demonstration Competition (CMDC) Round 4 is part of a suite of interventions launched by the UK Shipping Office for Reducing Emissions (UK SHORE). UK SHORE aims to transform the UK into a global leader in the design and manufacturing of clean maritime technology.

Your proposal must focus on clean maritime technology. Your project must do one of the following:

• design, develop, test and deploy technology; or
• conduct a technical and economic feasibility study.

The competition closes on the 27 September.

See: Competition overview - CMDC Round 4 – Vessel or Infrastructure demonstrations - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
 
New North Sea oil and gas licences
Hundreds of new oil and gas licences will be granted in a controversial decision by the UK government.

The UK government and the North Sea Transition Authority (NSTA) have announced a joint commitment to undertake future licensing rounds, which will continue to be subject to a climate compatibility test.

By adopting a more flexible application process, licences could also be offered near currently licensed areas – unlocking reserves which can be brought online faster due to existing infrastructure and previous relevant assessments.

With the independent Climate Change Committee predicting around a quarter of the UK’s energy demand will still be met by oil and gas when the UK reaches net zero in 2050, the Government is taking steps to slow the rapid decline in domestic production of oil and gas, which could secure domestic energy supply and reduce reliance on hostile states.

The NSTA – responsible for regulating the oil, gas, and carbon storage industries – is currently running the 33rd offshore oil and gas licensing round. They expect the first of the new licences to be awarded in the autumn, with the round expected to award over 100 licences in total.

This comes as a new analysis released by the NSTA shows that the carbon footprint of domestic gas production is around one-quarter of the carbon footprint of imported liquified natural gas.

See: Hundreds of new North Sea oil and gas licences to boost British energy independence and grow the economy: 31 July 2023 - GOV.UK (www.gov.uk)
 
Extension of CE mark recognition for businesses
The Department for Business and Trade has climbed down over the new UKCA marking system and announced an indefinite extension to the use of CE marking for UK businesses.

Businesses have repeatedly warned that the copycat UK quality assurance mark would create unnecessary burdens for the industry by creating dual EU and UK certification regimes.

This comes as part of a wider package of smarter regulations designed to ease business burdens and help grow the economy by cutting barriers and red tape. Following extensive engagement with industry, British firms will be able to continue the use of CE marking alongside UKCA.

The Business Secretary acted urgently on this issue, to prevent a cliff-edge moment in December 2024 when UKCA was set for entry. This intervention will ensure businesses no longer face uncertainty over the regulations and can cut back on unnecessary costs, freeing them up to focus on innovation and growth.

The extension will provide businesses with flexibility and choice to use either the UKCA or CE approach to sell products in Great Britain.

See: UK Government announces extension of CE mark recognition for businesses - GOV.UK (www.gov.uk)
 
Plastic bag use falls by more than 98% after charge introduction
More than 7 billion plastic bags have been prevented from blighting our streets and countryside thanks to the single-use carrier bag charge, new figures announced last month show.

A 5p charge was first introduced in supermarkets in 2015. Since then, usage at the main retailers – Asda, Marks and Spencer, Morrisons, Sainsbury’s, The Co-operative Group, Tesco and Waitrose – has dropped by more than 98%.

The average person in England now buys just two single-use carrier bags a year from these businesses, compared with around 140 in 2014 before the charge was introduced.

The number of single-use carrier bags reported as sold by the main retailers was 133 million in 2022/23, down from 197 million in 2021/2022, representing a reduction of 33%. This is a huge drop from the 7.6 billion used in 2014.

In 2021, the charge was increased to 10p and extended to all businesses. This has helped bring the number of bags used down by more than 35% from 627 million in 2019/20 to 406 million in 2022/23.

Meanwhile, retailers have voluntarily donated more than £206 million from the proceeds to good causes in education, arts, heritage, sports, environment, health and charity or volunteering sectors since the charge’s introduction.

See: Plastic bag use falls by more than 98% after charge introduction - GOV.UK (www.gov.uk)
 
Alcohol Duty Reform 
The changes to the Alcohol Duty structure and the new reliefs took effect on 1‌‌‌ ‌‌August 2023. These include:

• A new alcohol Duty system: standardised Alcohol Duty bands for all types of alcoholic products. There are new duty rates based on alcohol by volume (ABV) for all products;
• A Small Producer Relief: which reforms and extends the relief previously enjoyed by small breweries, to producers of all alcoholic products under 8.5% ABV;
• A reduced rate for draught products also known as Draught Relief, which reduces the tax due on draught alcoholic products under 8.5% ABV, packaged in containers of at least 20 litres, and designed to connect to a qualifying dispense system; and
• Transitional arrangements for producers and importers of some wine products: to help them with moving to the new method of working out the duty on their products. This allows businesses to use an 'assumed strength' of 12.5% ABV when working out the duty for wines with an ABV between 11.5% and 14.5% ABV. This measure is in place for 18 months, from 1‌‌‌ ‌‌August 2023 until 1‌‌‌ ‌‌February 2025.

See: Alcohol Duty from 1 August 2023 - GOV.UK (www.gov.uk)
 
The Rural Payments Agency has begun to issue the Basic Payment Scheme (BPS) advance payments.
In 2022, Defra announced that payments would be made in two instalments each year for the remainder of the agricultural transition period. Around 50% of the overall payment is being made now with the remaining balance expected from December.

Payments are up to 50% of the total annual BPS payment and will hopefully help farmers impacted by price rises throughout the industry with their summer season cash flow.

The RPA expects the vast majority of farmers to be paid on time, though there will be a small number of farmers whose claims will require additional checks which will take longer to process. The RPA will contact these customers to inform them of the next steps while maximising the number of farmers receiving their advance payment by the end of August.

Since 2021, BPS payments have been reducing each year as they are phased out completely by the end of the agricultural transition period in 2027. This is a process known as progressive reductions and was introduced to manage the transition from Direct Payments as smoothly as possible. The proportionate amount of progressive reductions will be applied to both the advance and balance payments.

All farmers should make sure the RPA has their up-to-date bank account details. Once a payment has been made, a remittance notice is sent in the post confirming the amount paid. When the balance payment is made in December, a claim statement will be sent to explain how the 2023 payments have been worked out.

See: Advance BPS payments to be issued to farmers - GOV.UK (www.gov.uk)
 
Funding for livestock farmers to improve animal health and welfare
A further £10 million is being made available to cattle farmers in England to help them replace ageing cattle buildings with state-of-the-art facilities, Defra has announced.

As set out in guidance published last week, the Animal Health and Welfare Infrastructure Grant will allocate awards to farmers ranging from £15,000 to £500,000, prioritising new and upgraded calf housing which will improve livestock conditions and help boost farmers’ productivity and profitability.

Through this grant, cattle farmers can access funding for roof-top solar panels on calf housing buildings, fulfilling a key commitment made by the Prime Minister at the Farm to Fork Summit earlier this year. This will enable farmers to improve the thermal insulation of their buildings whilst providing low-cost energy for calf housing.

The government has also announced that more than £19 million has been awarded to over 3,000 pig, poultry, sheep, and cattle farmers who successfully applied to the first round of the Animal Health and Welfare Equipment and Technology Grant. These grants, of between £1,000 and £25,000, will help farmers with items ranging from livestock handling equipment to reduce lameness in sheep or cattle or sealed water tanks to reduce disease transmission in outdoor pigs, to automated monitoring systems and sensors which free up farmers’ time and limit environmental stress in poultry housing.

See: Calf Housing for Health and Welfare 2023 - GOV.UK (www.gov.uk)

New Bristol railway station 
Passengers in Bristol will benefit from easier access to jobs and businesses as Transport Secretary Mark Harper opened a new railway station near Avonmouth last week.

The Portway Park and Ride station, backed by both government and local authority funding, was the first station to open in Bristol in almost a century.

Regular services will run from the accessible, single-platform station 7 days a week along the Severn Beach railway line, taking passengers into the city centre of Bristol in just 24 minutes.

See: New Bristol railway station to connect communities and grow the economy - GOV.UK (www.gov.uk)

4h August 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

HMRC Annual Report shows some important trends for business owners 

HMRC’s annual report was published last week, and it shows that they failed to meet many of their key customer services measures in 2022-23. Customer satisfaction dropped to 79% from 82% last year and telephone performance has also declined with an average wait of 16 minutes to get through to an adviser. 63% of callers waited more than 10 minutes, with an average wait-time of over 20 minutes in January to March 2023. To their credit, HMRC have improved their correspondence reply time to 73% cleared within 15 days from 46% in 2021-22.

HMRC thinks the solution lies in the use of online services by taxpayers and wants to reduce the volume of contact by telephone and post by 30% before 2025. However, given HMRC’s past record on missing its technology deadlines, this is probably unlikely without further resources being made available. Long wait times for taxpayers look likely to continue.

The report highlighted that HMRC have maintained a long-term reduction in the UK’s tax gap (the difference between the amount of tax that should, in theory, be paid to HMRC and what is actually collected) from 7.5% of total theoretical tax liabilities in 2005 to 2006, to 4.8% in 2021 to 2022.

To ensure everyone pays the “right” tax, HMRC have a compliance strategy with 3 elements: preventing non-compliance, promoting good compliance, and being robust in their response to those who bend or break the rules. In 2022-23 HMRC delivered £34 billion of compliance yield – the term for money that would have been lost to the Exchequer if not for HMRC compliance work. While it’s lower than they aimed for this year, it’s higher than the 2 previous financial years.

In the last fifteen years, in the wake of the “Crash” of 2008, the subsequent recession and the Pandemic, the UK National Debt has risen to the worrying level of 101.7 percent of Gross Domestic Product. HMRC have been tasked with increasing their efforts to help with this by recovering as much tax as possible and closing the tax gap even further.

We are seeing HMRC putting increasing resources into tax investigations, following the investment into their IT infrastructure and employee numbers – HMRC have been known to launch investigations into individuals and businesses that leads to little to no tax being recovered, following investigation. Some recent statistics have revealed that 2 in 5 taxpayers who were investigated paid no additional tax even though they had to go through the trauma of an HMRC tax investigation.

It’s a situation faced by thousands of UK businesses each year, one which has stepped up following the Pandemic as HMRC seeks to crack down on fraudulent claims for financial support. This has led to a growing number of UK businesses being randomly selected for investigation, with even sole traders finding their accounts subject to scrutiny.

Many of our clients protect themselves from the costs of an HMRC investigation with Fee Protection insurance. Tax fee protection insurance can save you from the unexpected costs of having your business accounts investigated. HMRC investigations can run into thousands of pounds in costs – hundreds of thousands in some cases. Having fee protection in place gives you the reassurance that your accountant’s costs in dealing with the investigation will be covered.

If you are not covered, then talk to us about our comprehensive fee protection insurance and expert advice.

See: HMRC's annual report and accounts 2022 to 2023: performance overview - GOV.UK (www.gov.uk)

The trade digitalisation act

The electronic trade documents act received Royal Assent last week granting electronic trade documents the same legal status as physical trade documents, hopefully making trade more efficient, cleaner, and cheaper for firms.

Existing laws dating back to the 1800s previously meant that exporters and importers have to use paper documents to transfer ownership of the goods they are shipping – creating a costly, inefficient and outdated way of working.

UK businesses, both big and small, have been calling for paperless trades for decades, especially as the development of electronic document technologies has become increasingly feasible for the industry. With less chance of sensitive paper documents being lost, and stronger safeguards through the use of technology, digitalising trade documents could give businesses that trade internationally greater security and peace of mind.

The UK government estimates that the new law could generate a net benefit of £1.14 billion for the British economy over the next decade for UK businesses trading across the world.

See: UK economy to receive £1 billion boost through innovative trade digitalisation act - GOV.UK (www.gov.uk)

Takeaway and Restaurant Innovation Expo 2023

From mobile payments and delivery to sustainability and food waste, the Restaurant and Takeaway Innovation Expo brings the whole restaurant industry together!

This is an opportunity to interact and connect with the industry’s visionaries who are shaping the takeaway and restaurant scene of the future. Find out how to boost your profits, build your brand and grow your business.

The event takes place on 10 and 11 October 2023 at the ExCel London.

See: Home - Restaurant & Takeaway Innovation Expo (takeawayexpo.co.uk)

ETIAS - entering EU countries

The European Travel Information and Authorisation System (ETIAS) is set to be introduced in 2024 after initially being planned for 2022. The delay was thought to be because of needing to update travel infrastructures and the onset of the COVID pandemic.

UK travellers will need an ETIAS for most EU countries. Travel permits will be available to buy online when the scheme launches and will cost around €7 (£6) for people over 18. Travellers under 18 or over 70 will receive their ETIAS free of charge.

ETIAS will be used to keep track of visitors from countries who do not need a visa to enter the Schengen Zone, and to enhance border security.

It is designed for short-term stays of 90 days or less, and includes travel for business, pleasure, medical reasons, or if you are transiting through the EU to a further destination.

You could be denied an ETIAS if you give the wrong information online, are a convicted criminal or are on a travel watch list.

You will need to present the document on arrival at your travel destination and could be refused to fly or denied entry into the EU without one.

Similar to a US ESTA, it is expected to be processed and approved within minutes. It will also be valid for three years from the date of issue, making it easier for future travel.

The European countries that will require a valid ETIAS upon arrival at their borders include Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

See: ETIAS - European Travel Information and Authorisation System (schengenvisainfo.com)

 

Innovation Loans Future Economy competition - round 10

UK registered businesses can apply for loans for innovative projects with strong commercial potential to significantly improve the UK economy. 

Innovate UK is offering up to £25 million in loans to micro, small, and medium-sized enterprises (SMEs). Loans are for highly innovative late-stage research and development (R&D) projects with the best potential for the future. There should be a clear route to commercialisation and economic impact.

Your project must lead to new products, processes or services that are significantly ahead of others currently available or propose an innovative use of existing products, processes, or services. It can also involve a new or innovative business model.

Innovate UK is particularly interested in projects that focus on the future economy areas included in the Innovate UK plan for action.

You must be able to show that you:

• need public funding,
• can cover interest payments, and
• will be able to repay the loan on time.

The funding available will be allocated across a series of competitions:

• round 10 - opened 15 July 2023,
• round 11 - opens 14 September 2023, and
• round 12 – opens 9 November 2023. 

See: Competition overview - Innovate UK Innovation Loans Future Economy: Round 10 - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)

UK announces further support to seafarers’ rights and welfare

More seafarers will be guaranteed fair wages, proper rest periods and suitable training from a new Seafarers’ Charter launched by the UK government last week.

Building on government action already taken, the charter – backed by DFDS Ferries, Condor Ferries, Brittany Ferries and Stena – is part of the government’s wider Nine-point plan to protect seafarers and boost employment protections, ensuring they’re paid and treated fairly – irrespective of flag or nationality.

This is at the heart of the UK’s response to P&O Ferries’ decision to fire nearly 800 of its staff without consultation or notice last year.

The UK government’s charter will be launched alongside a similar initiative by the French government during a visit by Maritime Minister Baroness Vere to Paris today to meet her counterpart, Minister Berville.

See: UK announces historic boost to seafarers’ rights and welfare - GOV.UK (www.gov.uk)

Travel update for families entering the UK border this summer

This summer more families arriving into the UK will benefit from quicker entry to the UK using eGates, thanks to an expansion of the service to 10 and 11 year olds.

Following successful trials across major ports including Gatwick, Stansted, and Heathrow Airports this spring, from Monday 24 July 2023, more families returning and eligible visitors to the UK over the school summer holiday will now benefit from the use of eGates as a faster way to travel through the UK border, with a recent YouGov poll showing that 42% of the UK public plan to jet abroad over the summer.

With passenger volumes expected to return to 2019 levels this summer – and some ports exceeding those volumes – Border Force expects to see over 34 million air arrivals coming through UK passport control over the coming months.

This new eGate change is expected to benefit thousands of families this summer, with over 400,000 children aged 10 and 11 years old projected to use eGates this year.

See: Smoother travel for families through the UK border this summer - GOV.UK (www.gov.uk)

 

Government clamps down on unfair bank account closures

Banks will be forced to explain and delay any decision to close an account under new rules, protecting freedom of expression.

The government has stepped in to address fears that banks are terminating accounts because they disagree with someone’s political beliefs.

The changes will increase the notice period to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service or find a replacement bank.

Banks will also be required to spell out why they are terminating a bank account – boosting transparency for customers and aiding their efforts to overturn decisions.

The changes were announced last week.

See: Government clamps down on unfair bank account closures - GOV.UK (www.gov.uk)

 

Acas Consultation – Code of Practice on handling requests for flexible working

Acas is updating its statutory Code of Practice on handling requests for flexible working, to reflect the anticipated reforms to legislation, significant shift in flexible working in the workplace and changing views since their existing Code was published in 2014. Their non-statutory guidance will also be updated, which sits alongside the Code.

The aim of the Code is to provide employers, employees, and representatives with a clear explanation of the law on the statutory right to request flexible working, alongside good practice advice on handling requests in a reasonable manner.

Contributions are welcome from all interested individuals and organisations. This includes employers, employees, trade unions, business representative groups, legal representatives, and any other organisations or individuals with an interest in flexible working practices and good employment relations.

The consultation closes on 6 September 2023.

See: Acas consultation on the draft Code of Practice on handling requests for flexible working | Acas

 

Training providers across England can bid for a share of £8.85 million government funding to offer courses in retrofitting and installing insulation

Thousands of people are to be equipped with the right skills to make homes more energy efficient, as training courses will be rolled out across the country. 

Training providers, such as colleges and accreditation providers, will be able to bid for a share of £8.85 million to help up to 8,000 people – whether current installers or those new to the industry – develop the skills and expertise needed to retrofit homes with energy saving measures.

The courses will be free or provided at low cost and will cover a range of key energy efficiency measures, from putting in loft insulation to draft proofing measures. This will not only help drive household energy bills down and reduce emissions but represents key employment opportunities for people to stay in and progress in work.

Training providers will have until 25 August 2023 to apply for the funding to deliver the courses, with training places expected to open later this year.

See: Thousands to be trained to boost energy efficiency in homes across the country - GOV.UK (www.gov.uk)

 

Social Investment - Growth Impact Fund

The Growth Impact Fund provides social investment for early stage, growing social businesses that are:

• led by diverse leaders and teams;
• looking to grow their trading income; and
• looking to help tackle inequality.

The Fund was developed by Big Issue Invest and UnLtd with support from Shift, who are all committed to tackling the structural barriers within social investment and offers between £50,000 and £1,500,000 of investment.

There are three flexible investment types aimed to meet your needs:

• Equity - Shares in your organisation;
• Revenue Share - Repayments based on your organisation's revenue performance; and
• Patient Debt - Regular repayments set at an agreed interest rate over several years. 

See: Growth Impact Fund - Investing for impact. Made for diverse-led organisations