24th November 2023 – Hillmans Weekly Update (Autumn Statement 2023)

24th November 2023 – Hillmans Weekly Update (Tax E-News – Autumn Statement 2023):

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

On 22 November 2023, Chancellor Jeremy Hunt presented his Autumn Statement to Parliament and started making, in his words, the long-term decisions necessary to strengthen the economy and build a brighter future. Fueled by falling inflation and stabilised public finances, focus is now being applied to reducing debt, cutting tax and rewarding hard work.

Headlines included generous National Insurance Contribution (NIC) cuts for workers and the self-employed and the ‘biggest permanent tax cut in modern British history for businesses’. Some other anticipated measures appear to be on hold ahead of a full Budget next Spring and an expected 2024 general election.

Below, we talk more about the Autumn Statement headlines and other measures announced. Please note that ‘tax years’ run to 5 April each year and that, for example, 2024/25 signifies the year to 5 April 2025.

CUTTING TAX AND REWARDING HARD WORK

For employees
In addition to income tax, all employees earning more than £12,570 a year pay Class 1 NICs. The main rate of Class 1 NICs will be cut from 12% to 10% from 6 January 2024. This will come into effect from January 2024 and, over a full year, the average worker on £35,400 will receive a NIC reduction of over £450. Workers earning more than £50,270 a year will receive a NIC reduction of £754.

The Class 1 NIC rate will remain at 2% for earnings above £50,270 a year.

Similarly, there are no changes to the rate of employer’s Class 1 NICs, which remains at 13.8%.

For the self-employed
Self-employed individuals with profits of more than £12,570 a year pay two types of NIC: Class 2 and Class 4.

• Class 2 NICs have been at a flat rate sum of £179.40 a year (£3.45 a week) in 2023/24 but no one will be required to pay the charge from 6 April 2024.
• The main rate of Class 4 NICs will be cut from 9% to 8% from 6 April 2024. Class 4 NICs will continue to be calculated at 2% on profits over £50,270.

Taken together these changes will result in an average self-employed person with profits of £28,200 saving £336 in 2024/25. 

Class 2 NICs currently provide the self-employed with access to a range of state benefits, including the State Pension. From 6 April 2024, self-employed people with annual profits;

• Above £12,570 – will continue to receive access to the benefits.
• Between £6,725 and £12,570 - will continue to receive access to the benefits, via a National Insurance credit.
• Under £6,725 (or with losses) – will be able to continue to pay Class 2 NICs on a voluntary basis in order to maintain their access to state benefits. Class 2 NICs had been due to increase in 2024/25 but it seems that these will be maintained at the current £3.45 weekly level for those in this bracket.

STATE BENEFITS

The government will uprate all working age benefits for 2024/25 by the September 2023 Consumer Price Index (CPI) of 6.7% and will continue to protect pensioner incomes by maintaining the promised ‘triple lock’ and uprating the basic State Pension, new State Pension and Pension Credit standard minimum guarantee for 2024/25 in line with highest of the three possible measures, namely average earnings growth of 8.5%.

NATIONAL MINIMUM WAGE (NMW)

The biggest ever increase to the National Living Wage has been announced, with the government fully accepting the recommendations made by the Low Pay Commission. Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21-year-olds for the first time. It was previously for those aged 23 and over only. From 1 April 2024 the minimum pay rates will be as follows:

	NMW rate £	Increase £	Increase %
National Living Wage (age 21 and over)	11.44	1.02	9.8
18-20 year old rate	8.60	1.11	14.8
16-17 year old rate	6.40	1.12	21.2
Apprentice rate	6.40	1.12	21.2

BACKING BRITISH BUSINESS

Tax Relief for expenditure on plant and machinery
The Annual Investment Allowance (AIA) is now permanently set at £1million. This means that businesses can claim tax relief at 100% on up to £1million of expenditure on qualifying plant and machinery (e.g. capital equipment).

‘Full expensing’ is an additional and alternative relief for companies only. It allows unlimited 100% upfront tax relief on qualifying plant and machinery that is purchased in a new condition on or after 1 April 2023. There is also an associated 50% allowance for expenditure on certain types of plant and machinery that does not qualify for the full 100% (including space and water heating systems, for example).

This ‘full expensing’ regime was initially introduced in Spring 2023 and had an original end date of 31 March 2026. It has now been announced that it will be made permanently available. Described as the ‘biggest business tax cut in modern British history’ it must be noted that it will usually only benefit companies or groups of companies that have already utilised their £1million AIA. It is not available at all for unincorporated businesses, although the expansion of the cash-basis (see below) achieves a very similar effect for sole traders and partnerships.

Full expensing does come with some quite complicated rules on the amount of upfront relief and the calculation of tax charges that may apply when the purchased plant and machinery is sold. Please talk to us for more details.

Making Tax Digital (MTD) for Income Tax
Under MTD for income tax, businesses will keep digital records and send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. These requirements will be phased in from April 2026, starting with sole traders and property landlords with gross income over £50,000.

In readiness, some ‘design changes’ to the scheme have now been announced to simplify and improve the system. These include:

• Simplifying the requirements for providing quarterly updates by making them cumulative and adding functionality to amend or correct errors throughout the year;
• Simplifying the rules for taxpayers with more complex affairs, such as landlords with jointly-owned property;
• Removing the requirement to provide an End of Period Statement, with emphasis instead placed on a final declaration;
• Exempting some taxpayers altogether, including foster carers and those without a National Insurance number; and
• Enabling taxpayers using MTD to be represented by more than one tax agent.

There will also be new rules to ensure that taxpayers who volunteer to join MTD for income tax from April 2024 will be subject to the new, fairer points-based penalty regime for late filing of tax returns and late payment of tax, as already implemented for VAT. This approach assures the compliant majority that an occasional failure in the context of overall good compliance will not be treated in the same way as persistent poor compliance.

Business Rates
A new business rates support package worth £4.3 billion will be made available over the next five years to support small businesses and the high street.

For 2024/25, the small business multiplier will continue to be frozen and the 75% Retail, Hospitality and Leisure business rates relief will continue to apply.

The standard rate multiplier will be uprated in line with the September 2023 CPI of 6.7%. While this will increase business rates bills for some, large retailers are expected to benefit from hundreds of millions of pounds of tax relief per year as a result of full expensing.

Getting Paid
One of the key challenges facing small businesses is the cash-flow implications of late payments, which hold them back from investing and innovating.

The government plans to lead by example by introducing more stringent payment time requirements for firms bidding for large government contracts. From April 2024, firms bidding for government contracts over £5million will have to demonstrate that they pay their own invoices within an average of 55 days, tightening to 45 days in April 2025, and to 30 days in the coming years.

Upskilling
Various initiatives are on the cards for business leaders to acquire the vital skills and opportunities they need to stay relevant, increase productivity and grow their businesses.

This includes a pledge that HMRC will rewrite its guidance on the tax deductibility of training costs for sole traders and the self-employed, to provide more clarity to business on what costs are deductible. This will ensure that individuals can be confident that updating existing skills, or maintaining pace with technological advances or changes in industry practices, are allowable costs for tax purposes.

Unincorporated businesses and their accounting year-ends
Unincorporated businesses that prepare annual accounts to a year-end date other than 31 March or 5 April will soon need to either change their accounting year-end or adopt a new process for how the profits or losses arising in their accounts are reported to HMRC.

At present, ‘basis period’ rules apply that broadly allow annual accounts that end during a tax year to act as the basis of profits or losses arising in that tax year.

A new system starts with transitional rules in 2023/24. From 2024/25, actual profits (or losses) arising in a tax year must be reported to HMRC by calculating and combining appropriate proportions of tax-adjusted profits (or losses) for the parts of each accounting period that overlap with a tax year.
Unfortunately, this will make it harder for some self-employed individuals to fulfil their tax compliance obligations and predict their income tax liabilities, but we will be on hand to help you.

Using the cash basis to compute business profits
The ‘cash basis’ can be a simplified way of calculating taxable profits for income tax purposes. It is based on simply declaring income received and expenses paid, without adjustments seen in more sophisticated accounts prepared in accordance with traditional ‘accruals based’ principles (e.g. to include adjustments for stock valuations and amounts owed by customers). The cash basis is currently an option for sole traders and partnerships if their annual business turnover is £150,000 or less.

In a significant shift from 6 April 2024, the cash basis will become the default accounting basis for all unincorporated businesses. The £150,000 turnover limit will be removed and some of the restrictions within the current regime that limit relief for interest deductions and loss relief will also be removed.

Businesses can ‘opt out’ of the cash basis and continue to prepare a balance sheet and use the ‘accruals basis’ if they wish. This will be an important choice, particularly in relation to business intelligence and management reporting, so please do talk to us about the options if this affects you.

Investment Zones and Freeports
Earlier this year, the government announced that it would establish 12 ‘Investment Zones’ across the UK. These Zones target tax and other incentives on high potential industry sectors to boost productivity and growth. A number of the Zones have now been announced and the Chancellor has now pledged to extend the program of funding and tax reliefs for these Zones from 5 to 10 years.

The tax incentives include relief from Stamp Duty Land Tax (SDLT), enhanced capital allowances for plant and machinery, enhanced structures and buildings allowances, business rates relief and reduced employer NICs on the earnings of eligible employees.

There has also been an associated extension to the window to claim Freeport tax reliefs in England; from 5 to 10 years, until September 2031. The tax benefits on offer in these port-based locations are similar to Investment Zones but also give extra VAT and Customs benefits.

VAT

The VAT registration and deregistration thresholds continue to be frozen at £85,000 and £83,000 respectively, instead of increasing each year in line with inflation. This is thought to be a blocker to growth in small businesses and so will be one to watch in the Spring Budget next year.

There have been no change to rates of VAT.

INCOME TAX

‘Stealth’ increases
The personal allowance and basic rate band threshold are still frozen at their 2021/22 levels and, subject to the outcome of the next general election, are expected to remain at such until 5 April 2028. As earnings increase, individuals will move into higher tax bands. This is often referred to as ‘fiscal drag’ because it will raise more tax without the government increasing income tax rates.

The tax-free personal allowance of £12,570 continues to be partially and then fully withdrawn for higher earners, with £1 of personal allowance lost for every £2 of adjusted net income over £100,000.

Income tax rates and allowances for 2024/25
Held at their 2023/24 levels, the following income tax rates will apply to taxable income, after the personal allowance has been utilised.

Other allowances
Savings income continues to benefit from a 0% personal savings allowance of £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.
Dividend income attracts a 0% dividend allowance of £500 in 2024/25, down from the £1,000 allowance seen in 2023/24.

Scotland
Individuals living in Scotland and classed as Scottish taxpayers are also entitled to the personal allowance of up to £12,570 but have a slightly different banding system for ‘earned income’ as follows:

The application of income tax to savings and dividends income is the same as for taxpayers based elsewhere in the UK.
The Scottish Budget, in which rates and bands for 2024/25 are expected to be announced, is set to take place on 19 December 2023.

Tax Efficient Savings
The annual limits for Individual Savings Accounts (ISAs), Child Trust Funds and the Junior ISA remain at £20,000, £9,000 and £9,000 respectively in 2024/25. The lifetime ISA annual subscription limit also remains unchanged at £4,000 (excluding the government top-up bonus).

The government is making changes to simplify ISAs and provide more choice, meaning it will be easier to choose the best ISA accounts and move money between them. This involves digitalising the ISA reporting system to make it more effective, as well as expanding the investment opportunities available in ISAs.

Pension tax relief
Annual allowances determine the maximum amount that an individual can save into their pension pots in a tax year before tax relief starts to be withdrawn by way of pension tax charges.

These allowances will remain fixed in 2024/25 at their 2023/24 rates, being the £60,000 annual allowance applicable in most circumstances and the £10,000 money purchase annual allowance for those who have flexibly accessed their pension pot. The annual allowance is reduced for those with a high income of more than £260,000.

PENSION REFORM

The government has announced a comprehensive package of pension reforms that aim to provide better outcomes for savers, drive a more consolidated pensions market and enable pension funds to invest in a diverse portfolio.
With people (especially younger generations) changing jobs more frequently than used to be the case, the government wants to tackle the long-standing problem of “small pot” pensions that accumulate with each short to medium term employment. There will be a call for evidence on a ‘lifetime provider model’ which would allow individuals to have contributions paid into their existing pension scheme when they change employer, providing greater agency and control over their pension.

CAPITAL GAINS TAX

The capital gains tax annual exemption is set to drop to £3,000 in 2024/25, down from £6,000 in 2023/24. This change will mean that those selling capital assets such as property or shares will pay more tax, where the new lower annual exemption is exceeded. Capital gains tax rates range from 10% to 28% in 2023/24, depending on the tax status of the seller and the type of asset sold.
If you are planning any capital disposals, please contact us to discuss the best strategy for the disposal.

INHERITANCE TAX

The inheritance tax nil rate band continues to be frozen at £325,000 until April 2028. The residence nil rate band will also remain at £175,000 and the residence nil rate band taper will continue to start at £2million. Despite prior rumours to the contrary, there has been no change to inheritance tax rates.

CORPORATE TAXES

Rates from 1 April 2024
From 1 April 2024, the rate of Corporation Tax will continue to be 25% if a company’s profits exceed £250,000 a year. The small profits rate of 19% will apply where profits are no more than £50,000 a year.

Where a company’s profits fall between £50,000 and £250,000 a year, the profits are taxed at the higher 25% rate, but a ‘marginal relief’ is given to reduce the liability, with the effective rate being closer to 19% the closer profits are to £50,000.

Companies in the same corporate group (or otherwise connected by association) must share the £50,000 and £250,000 thresholds between them, making the 25% rate more likely to apply. A similar rule applies to the £1.5million threshold which, if exceeded, means that companies are required to pay their corporation tax earlier and in instalments.

Research & Development (R&D) Reliefs
For company accounting periods commencing on or after 1 April 2024, a new R&D scheme for limited companies will come into effect, merging the current R&D Expenditure Credit (RDEC) scheme (for larger companies) with the Small and Medium Enterprise (SME) scheme. There will also be a second new R&D scheme for ‘R&D intensive SMEs’.

These are significant changes and come on top of a raft of changes already seen in 2023. HMRC say that further action may still be needed to reduce the unacceptably high levels of non-compliance with tax rules in the R&D sector.

Within the new rules there are new provisions in relation to:

• Who can claim relief when companies contract out R&D activities;
• The definition of qualifying expenditure, taking into account whether the R&D has been undertaken in the UK,
• The qualifying criteria for ‘R&D intensive’ companies, along with a new approach for companies who many fluctuate in and out of the status; and
• Restrictions on nominations and assignments of R&D relief payments.

Any company claiming (or considering claiming) R&D reliefs will need enhanced support to both ensure compliance and to adopt the new rules and framework. Please do get in touch if we can assist you with this.

Creative Industries
Film, TV and video games tax reliefs will be reformed into refundable expenditure credits. In particular, an Audio-Visual Expenditure Credit (AVEC) for film and TV programmes and a Video Games Expenditure Credit (VGEC) for video games. The credits will be available from 1 January 2024.

Annual Tax on Enveloped Dwellings (ATED)
The ATED annual charges will rise by 6.7% from 1 April 2024 in line with the September 2023 CPI.

EMPLOYMENT TAXES

National Insurance Contributions (NICs)
Like the main income tax bandings, employer and employee NIC thresholds are now also frozen until 5 April 2028. This broadly means that, in 2024/25, employers’ NIC will continue to apply at 13.8% to earnings in excess of £9,100 a year (£175 per week) and employees will pay at the reduced 10% rate on earnings between £12,570 and £50,270 and 2% thereafter.

For eligible employers, the employment allowance remains at £5,000 per year, reducing their employer’s NIC liability by this sum. Eligible employers should remember to opt in on their payroll software to ensure that the allowance is received.

Company Cars and Other Benefits
Employees are required to pay income tax on certain non-cash benefits. For example, the provision of a company car constitutes a taxable ‘benefit in kind’. Employers also pay Class 1A NIC at 13.8% on the value of benefits.

The set percentages used to calculate company car benefits are fixed until 5 April 2026 before slight increases apply to most car types, including electronic and ultra-low emission, from 6 April 2026.

The figures used to calculate benefits-in-kind on employer-provided vans, van fuel (for private journeys in company vans), and car fuel (for private journeys in company cars) remain fixed at their 2023/24 levels in 2024/25. These are:

• Van benefit                         £3,960
• Van fuel benefit                  £757
• Car fuel benefit multiplier   £27,800

PAYE and Tax Returns
For individuals with income taxed only through PAYE, they currently only need to file a self-assessment tax return if their income exceeds £150,000. From 2024/25 this threshold will be removed altogether, removing up to 338,000 individuals from the self-assessment system.

Off-payroll Working (IR35)
Off-payroll working rules ensure that a worker who provides services through an intermediary company to a ‘deemed employer’ pays broadly the same income tax and NIC as an employee would. The rules are complicated and apply differently depending on the size and type of the deemed employing entity.

The new rules deal with cases where HMRC is collecting underpaid PAYE from the deemed employer and will allow them to give credit for any tax and NIC already paid by the worker and their intermediary. This is to avoid the potential over-collection of tax.

TACKLING THE TAX GAP AND COLLECTING HMRC DEBT

The government continues to commit to a tax system that is easy for businesses and individuals to engage with, and where everyone pays their fair share. 

A ‘Tackling the Tax Gap’ package of measures has been announced, with plans to raise £5 billion of tax revenue over the next five years. The government is investing in HMRC’s ability to better target their debt collection activity, pursuing those with tax debts that can afford to pay, and providing support to those that are temporarily unable to pay. The government is also taking action against those who continue to bend or break the rules, by reducing opportunities for tax fraud in the construction industry and taking strong action against promoters of tax avoidance. Sentences for the most egregious forms of tax fraud will be doubled from 7 to 14 years.

TAX ADMINISTRATION FRAMEWORK

New measures will be introduced to strengthen HMRC’s data gathering powers. From 2025/26:

• Employers will be required to provide data on employee hours paid as part of their PAYE reporting; and
• Shareholders in owner-managed businesses will be required to include on their self-assessment tax return their percentage shareholding and dividend income from their company (separately to any other dividend income they may receive).

These measures will build on previously announced HMRC powers that will enable them to access taxpayer data from online marketplaces (e.g. from airbnb) from 1 January 2024.

IN CONCLUSION

As we move into 2024, there are a lot of tax changes already scheduled, plus we can expect more with a Spring Budget and a general election on the horizon.

We are here to work alongside you and help you prosper so please do get in touch at any time.

17th November 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

Inheritance Tax Planning Tips
With inheritance tax receipts to HMRC set to reach new levels this financial year, now more than ever are families needing to plan for their future.
Inheritance tax could take a large proportion of your wealth – 40% of everything above £325,000 -and stop your family members enjoying the results of your hard work. Avoiding or reducing inheritance tax is possible if you have expert advice and plan accordingly. Below are three essentials to mitigate inheritance tax. 

Talk to your family.
The first step towards a successful inheritance plan for all families is communication. Talk to your spouse, children, and stepchildren. Understand their concerns, expectations, and spot the potential conflicts. Some items may have emotional as well as purely monetary significance to some family members. That ring that has been passed down on one side of the family for years or the old picture that was part of a first home. You need to find out what items are significant to each family member, and you may need to find some compromises. They can’t all have your watch or your diamond ring. If you have children who no longer have much contact with you, you may still need to discuss your plans with them, even if it takes a special effort. One solution may be to allot each beneficiary the most appropriate sentimental item and divide up wealth equally.

Take stock of your assets
The next step in your inheritance planning journey is creating an inventory of your financial assets: your home and any other property, investments, savings, and any valuable possessions. If you have a surviving partner, they might be your first priority, but you need to look at what happens when they are gone. Your home may be the biggest challenge. It can be difficult to balance its value against other assets and giving it to one beneficiary may lead to resentment. Stipulating that it should be sold, and the proceeds shared is one answer. A shared bequest that allows one beneficiary to buy out the shares of the others is an alternative. You also need to look at the liabilities or debts that eat into your estate. You want to leave financial security and happy memories, not debts. Knowing what you have now can be the basis for devising a fair inheritance plan that takes into consideration the needs of everyone who survives you. Look at your life insurance as part of this review. It can help ensure equal inheritance for all parties. The payout from a life insurance policy can be divided among the beneficiaries, helping to balance any disparities in the value of your other assets.

Write a will
A well-crafted will is the linchpin of any inheritance plan, and for all families, it is crucial. Work with an experienced solicitor to draft a will that clearly outlines your wishes and specify the exact percentage or value that each heir, whether biological or stepchild, will inherit. This ensures that your intentions are legally binding and minimises potential disputes later on. Review and update beneficiary designations on retirement plans, investment accounts, and insurance policies. Beneficiary designations override instructions in your will. Failing to update can lead to unintended consequences – money intended to go to a current partner still being earmarked for a previous spouse is not uncommon.

Seeking the guidance of a qualified financial adviser is vital for any family. Please talk to us about any tax related questions you may have and if you need a financial adviser.
 
Growing your business? – Just keep going!
The Bank of England (BOE) recently held interest rates at 5.25% and warned that the restrictive policy will remain for an extended period, despite the bleak economic outlook. BOE forecasts suggest the UK will not get to the 2% inflation target until the end of 2025.  They expect inflation to fall to around 5% by the end of this year. Their forecasts also predict that output will remain stagnant in 2024. The Chancellor, Jeremy Hunt, remains more optimistic and was quoted as saying that the UK economy has remained far more resilient than many expected.  

Clearly things are changing rapidly right now in this chaotic world, and it is difficult to maintain a sense of control, but the most successful people we meet “Just Keep going!”

Growing your business is all about enthusiasm and a mindset to power on with the goal of striving for success. Below are a few thoughts to help you think ahead and focus on your business growth.     

A growth strategy starts with identifying and accessing opportunities within your market. The strategy addresses how your company is going to evolve to meet the challenges of today and in the future. A growth strategy gives your company purpose, and it answers questions about your long-term plans.
Having a growth strategy is important because it keeps your company working towards goals that go beyond what is happening in the market today. They keep both owners and employees focused and aligned, and they allow you to think long-term.

The first step is to look at five important areas that will help you develop a growth strategy:

1. Think long term – invest time in understanding where the market is going and what this means for your customers. Short term decisions do not help grow a business.
2. Having a good value proposition is essential – this states the relevance of your product or service, what it does, and why customers need it. What is yours? 
3. Expanding your reach – who is your target customer and what do you need to do to let them know you exist and that your product or service is relevant to them?
4. Growth means new people, systems, and (maybe) different ways of doing things. Grow at a pace you can manage.
5. How will your marketing get your value proposition to relevant customers?

Once you have taken some time to write out your growth strategy and where you want your business to be in (say) 2 years, the next step is to work out your marketing plan.

A marketing plan is a business document outlining your marketing strategy and tactics. It is often focused on a specific period of time (i.e., over the next 12 months) and covers a variety of marketing-related details, such as costs, goals, and action steps. But like your business plan, a marketing plan is not a static document. It should outline:

1. How you are going to keep existing customers happy and returning to buy more often;
2. What the goals are for getting new customers; and
3. The marketing methods you are going to use to achieve 1 and 2.

Please talk to us about helping you formulate your expansion plans; we have considerable experience in helping our clients grow their businesses.
 
Tools available to help SMEs tackle cyber security issues
The National Cyber Security Centre (NCSC) has several online tools for small organisations to help find and fix any cyber security issues.
The NCSC unveiled the services to coincide with the latest phase of its Cyber Aware campaign, which is aiming to raise awareness of cyber security among the UK's small businesses, microbusinesses, other organisations, and sole traders.

With official statistics showing that more than a third of small businesses suffered a cyber-attack last year, the NCSC urged them to make use of their Cyber Action Plan and Check Your Cyber Security tools.
 
The Cyber Action Plan can be completed online in under five minutes and results in tailored advice for businesses on how they can improve their cyber security.

Check your Cyber Security – which is accessible via the Action Plan – can be used by any small organisation including schools and charities and enables non-tech users to identify and fix cyber security issues within their businesses.

Small businesses are a common target for cyber criminals, with the government's last cyber breaches survey revealing that 38% of the UK's small businesses suffered a cyber incident over a 12-month period.

The range of attacks can vary widely, from business email compromise to denial of service and ransomware attacks.

See: Introduction - NCSC.GOV.UK
 
Can you create more “productive “time?
For many small business owners, if they have one consistent issue, it would be that there is simply not enough time in the day to achieve all the things that need to be done.
 
Have you ever got to the end of the day, having worked your “socks off” for the entire day, and asked the question “what on earth have I done today?”  If the answer is yes, then the next question is “how many days per week do you get this feeling?”

So, what can you do, in an office environment for example, to free up some time for productive and focussed activities?

Do Not Disturb (DND)!
By far, the simplest technique to create time is to ensure that you set time aside for you to carry out the tasks on your “To Do List”.
We have all heard employees announce, “I have so much to do; I am working from home tomorrow”.  This is an example of putting yourself into a DND mode to allow you to complete tasks that are on your “To Do List”.

Why is this so? - All too often, we come into our business premises with list of tasks that we intend to complete.  The telephone rings, customers and suppliers want time, fellow employees come into your office also seeking your time, and emails and correspondence continues to flow onto your desk – Is this a familiar feeling?

If you meet with your team and agree with them that this is the case for many of them, then it makes sense to agree to do something about it.

The recommendation is to switch the office into a DND mode for typically 1 to 2 hours every day.

The DND mode includes no external telephone calls coming through to employees, no internal telephone calls, no disturbing employees internally and a discipline to switch off emails other than for those relevant for the “To Do List” of the individual employee. Many businesses rotate their DND time amongst their employees.

The net result of this is that people get more of a sense of achievement at the end of a day, and this often results in a feeling of satisfaction and far less stress.

Here are some other “time saving” techniques that might work in your business:

• If you have ever found yourself thinking “it is easier to do it myself”, then maybe try and discipline yourself not to do so and delegate (and if necessary, train) where at all possible. There is a fine line between delegation and abdication – supervision is required when one delegates, and feedback is helpful so you can keep control of the process.
• If you have asked somebody to do something, there has to be an assumption that this will done be unless you have been told otherwise.  It is a mistake to allow anybody not to tell you if they can’t do something that has been agreed to be done.  This may sound obvious, but the research is quite clear; there are too many occasions where things just simply do not get done despite requests and therefore failings, and it can be very time consuming to redeem the position.

• We all receive too many emails and the methodology that may work for some employees is to have emails sent to another supporting source, whose job it is to read all emails with the following three outcomes:
  • Delete emails because they are not relevant;
  • Forward onto the relevant employee with the words “Please read but no action required”; or
  • Forward onto the relevant employee with the words “Please read - action required”.
• The “One touch” only rule – in the ideal world the best efficiencies come from reading an email or letter once and dealing and responding directly to the customer.  To have to re-read is generally considered inefficient.

• Don’t laugh, but if you have a chair in or around your desk, people will sit in it!  If people sit in a chair, the discussion will take longer than if they are standing. So, do you want to have a chair for people near your desk?

By adopting some or all of the ideas listed above, you, as an employer, could create an additional amount of productive time which may also improve employee confidence.
 
Future-proofing the UK’s Artificial Intelligence (AI) skills base
The UK government is attempting to future-proof the AI skills base with funding to foster skills, including postgraduate research centres and scholarships.
Because of the pace of change in AI development, it is considered important that the UK cultivates the top AI research talent to drive progress in crucial areas like AI safety, and to ensure the whole country can feel any gains that AI will unlock.

The UK government states, “This will ensure the country has the top global expertise and fosters the next generation of researchers needed to seize the transformational benefits of this technology.

This includes naming, for the first time, the further 12 Centres for Doctoral Training in AI that will benefit from £117 million in previously announced government backing through UK Research and Innovation (UKRI), while a new visa scheme will make it easier for the most innovative businesses to bring talented AI researchers in their early careers, to the UK.

This is on top of funding for 15 science and technology scholarships at some of the UK’s universities, a £1 million grants scheme to help top AI talent relocate to the UK, and the pilot of a new STEM Olympiad scholarship scheme ‘Backing Invisible Geniuses’. It builds on a further £8.1 million recently announced, for postgraduate course scholarships in AI and data science”.

See: Britain to be made AI match-fit with £118 million skills package - GOV.UK (www.gov.uk)
 
Freight Innovation Fund Accelerator 2024
The Department for Transport (DfT,) through Connected Places Catapult, has opened applications for the Freight Innovation Fund Accelerator 2024, a multi-faceted programme which will accelerate the adoption of commercially ready solutions into the sector.
The Accelerator will support up to 10 small and medium-sized enterprises (SMEs) to trial their solutions in real-world environments to help solve pressing challenges within the freight sector. The SMEs will be selected by DfT and Connected Places Catapult to join a 6-month programme, where each of them can access up to £150,000 of grant funding to trial their solutions.

SMEs have two options when applying to the programme:

Apply to be matched with an industry partner
Connected Places Catapult will work with industry partners, who will provide access to testing environments and internal expertise. They will also play an active role in the SME selection as part of the due diligence process.

The industry partners supporting the accelerator programme are Maritime Transport, Freightliner, Wincanton, FedEx Express, Portsmouth International Port, and Port of Tyne.

Apply with your own Industry Partner
Applications are welcomed from SMEs who already have a partner they wish to trial their solutions with and can offer access to testbed facilities.
Applications are open until Sunday 26 November 2023.

See: Freight Innovation Fund Accelerator 2024 - Connected Places Catapult
 
Zero emission HGV and coach infrastructure consultation
The UK government is seeking information to inform them on the development of a strategy for zero emission heavy goods vehicle (HGV) and coach infrastructure.

It seeks information about:

• the current and future supply, uptake, and use of zero emission HGVs and coaches across the United Kingdom; and
• their refuelling and recharging requirements.

Views are sought from persons or organisations with an interest in the manufacture or use of zero emission HGVs and coaches, and their associated infrastructure. The aims are to gather evidence:

• to support the development of a zero emission HGV and coach infrastructure strategy for the UK;
• regarding the zero emission HGV and coach markets in the UK, including its infrastructure, both public and private (for example, depot-based); and
• to inform future decision-making about zero emission HGVs and coaches.

See: Infrastructure for zero emission heavy goods vehicles and coaches - GOV.UK (www.gov.uk)
 
Expert regional innovation hubs given £75 million boost to local research, businesses, and economies across UK
Regional clusters of innovation across the UK are being backed by a share of £75 million that will enhance local economies and pioneer game-changing solutions from healthcare to net zero.

Following pilots in Liverpool and Teesside, launched earlier this year, a further 8 Launchpads, facilitated by Innovate UK, will be rolled out across every nation of the UK. These initiatives will build on existing clusters of high-tech innovation in each region, such as renewable energy in Southwest Wales,
Agri-tech in East Anglia, and digital health in Yorkshire.  

Launchpads is a programme that supports emerging clusters of small and medium-sized enterprises (SMEs) by providing each Launchpad up to £7.5 million from Innovate UK to fund innovation projects led by local businesses.

The £7.5 million bespoke funding from each Launchpad will allow SMEs in each region to bid for support that is tailored to the unique needs of each business cluster, helping them drive innovation, expand operations, and boost their local economies.

See: Expert regional innovation hubs given £75 million boost to local research, businesses and economies across UK - GOV.UK (www.gov.uk)
 
Fairness Innovation Challenge
UK registered organisations can apply for a share of up to £400,000 for projects resulting in new solutions to address bias and discrimination in AI systems. This funding is from the Centre for Data Ethics and Innovation (CDEI).

The competition closes on Wednesday 13 December 2023.

Innovate UK will work with the Centre for Data Ethics and Innovation (CDEI), part of the Department for Science Innovation and Technology (DSIT), to invest up to £400,000 in innovation projects.

The aim of this competition is to drive the development of novel solutions to address bias and discrimination in artificial intelligence (AI) systems.

The objectives are to:

• encourage the development of socio-technical approaches to fairness;
• test how strategies to address bias and discrimination in AI systems can comply with relevant regulation including the Equality Act 2010, the UK General Data Protection Regulation (GDPR) and the Data Protection Act 2018; and
• provide greater clarity about how different assurance techniques can be applied in practice.

Your proposal must address bias and discrimination in one of the following use cases:

• provided healthcare use case, or
• open use case.

Your proposed solution must adopt a socio-technical approach to fairness, seeking to address not only statistical, but also human and structural biases associated with the AI system in question.

In applying to this competition, you are entering into a competitive process.

See: Competition overview - Fairness Innovation Challenge - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
 
Shake up to procurement regulations
New procurement rules have become law, following the Royal Assent of the Procurement Act.

The new rules are one of the largest shake ups to procurement rules in this country’s history.

The Act establishes a new public procurement regime following the UK’s exit from the EU and aims to create a simpler and more transparent system that delivers better value for money, reducing costs for business and the public sector.

The new regime will deliver simpler, more effective public sector procurement, and help small and medium-sized enterprises (SMEs) secure a greater share of approximately £300bn of expenditure per year. 

The new rules will aim to protect against national security risks in public contracts.

Significant new powers will enable high-risk suppliers to be put on a public debarment list and be prevented from bidding for some categories of goods or services, such as areas related to defence and national security, while allowing them to continue to bid for contracts in non-sensitive areas. 

See: Small businesses to benefit from one of the largest shake ups to procurement regulations in UK history - GOV.UK (www.gov.uk)

10th November 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

How much is my business really worth?
This is a question many business owners want answering. The truth is, it depends on a range of factors and any valuation is only useful as a guide for planning forward. The ultimate value of a business is the price a willing buyer is prepared to pay for it.

The prevailing economic climate and state of the business’ sector can affect company valuation for better or worse, as can your reasons for selling. If you need a fast sale due to ill health, for instance, the value may be lower than if a sale was taking place under more favourable circumstances.

Valuing a business is a complex process and we can support you throughout.
So, what are the most common methods of valuing a business?

Price to earnings ratio (P/E)
The price to earnings ratio uses multiples of profit, so may be an appropriate valuation method if you own a well-established business with a good track record of profits. ‘Price’ refers to the company’s current share price, and ‘earnings’ to the earnings per share (EPS). The P/E ratio indicates the business’s expected growth in earnings per share in the future.

Discounted cash flow
Discounted cash flow relies on estimating future cash flows for the company, and a residual business value, and may be suited to businesses with few assets.

Entry cost
Entry cost valuation involves calculating how much it would cost to build your business to the stage that it’s reached now, including start up and recruitment costs, marketing, and the value of assets. Any savings that could have been made should then be deducted to arrive at the valuation.

Asset valuation
The asset valuation method may be suitable if your business is well established and owns high levels of tangible assets. The Net Book Value (NBV) of assets is calculated, and then adjusted to take account of external factors such as depreciation and inflation.

Valuation based on industry
Some businesses are valued based on the industry in which they operate. The retail industry is one such example, where the number of outlets is an essential element for consideration. Industry ‘rules of thumb’ use factors specific to an industry and can provide a more accurate calculation in some cases.

Other considerations when valuing your business
Intangible assets are a key factor when valuing a business. Intellectual property, goodwill, business reputation, and even a premium business location, can all add considerable value in the eyes of potential purchasers.

Spotlighting these intangible assets also allows you to improve their value where appropriate – for example, registering ownership of a trademark or patent, building up their reputation even further, or improving the condition of premises.

Please talk to us about valuing your business as this can lead to a range of important considerations and actions.
 
Self-Assessment – less than 90 days to go!
There are less than 90 days to go until the deadline for filing your Self-Assessment return online.

You need to file your return by 31‌‌‌‌ January 2024. Filing your return early is an option and means you can find out how much you owe and help you budget and plan for your payment. If you are due a refund, you can claim it back sooner.

If we’ve already sent HMRC your return and you’ve paid, you don’t need to do anything else. 

If you need assistance in completing your tax return please contact us ahead of the deadline and we will do our best to make sure it’s accurate and filed on time.
 
Tax-Free Childcare costs
HM Revenue and Customs (HMRC) is reminding working families to give their childcare budget a boost by opening a Tax-Free Childcare account.
 
Parents can use Tax-Free Childcare to help with childcare costs for school holiday clubs, breakfast or after school clubs, childminders or nurseries.

You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year).

If you get Tax-Free Childcare, you will have to set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider.

You can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.

You can use it to pay for approved childcare, for example:

• childminders, nurseries and nannies; and
• after school clubs and play schemes.

Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare. Check with your provider to see if they’re signed up.

If your child is disabled
You can use the extra Tax-Free Childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child, such as mobility aids. Talk to them about what equipment your child can get.

See: Save up to £2,000 a year on childcare costs for your little pumpkins - GOV.UK (www.gov.uk)
 
Funding for digital supply chain innovation
Up to £100,000 is available for tech solution providers to address critical supply chain challenges across textiles, farming, hydrogen, food and automotive sectors.

The Made Smarter Innovation | Digital Supply Chain Hub (DSCH) is inviting expressions of interest from businesses interested in developing and deploying digital technology solutions in the DSCH testbeds.

A supply chain testbed can be defined as an end-to-end supply chain environment, where technologies can be deployed and tested using real data but without risking business disruption.

Together with the testbed companies, the DSCH has identified seven potential challenge areas:

• standardised naming system for automotive spare parts;
• project finance and market modelling in the emerging hydrogen supply chain;
• digital product passport for the textile supply chain;
• connected life cycle assessment in the textile supply chain;
• logistics pricing engine in the textile supply chain;
• data driven best before date in the food supply chain; and
• a marketplace for investment in sustainable farming.

Each challenge comes with £100,000 available for a tech solution provider to work with an Industry Challenge Sponsor to address critical supply-chain challenges and develop a solution which will be deployed into one of the testbeds.

See: Unlock Funding for Digital Supply Chain Innovation - Expression of Interest - Made Smarter Digital Supply Chain Hub - Virtual Hub
 
How can digital marketing help your business?
There are numerous benefits to businesses, enabling you to thrive in the digital age and stay ahead of the competition. Let's explore some of the ways digital marketing can help you.

Cost-Effective Marketing: Compared to traditional marketing methods, digital marketing is often more cost-effective. Online advertising, email, and content marketing campaigns can be tailored to fit various budgets, making it accessible for businesses of all sizes.

Content Marketing: Creating valuable content such as blog posts, eBooks, and webinars can establish you as the expert in your field.

Enhanced Online Visibility: Strategies such as search engine optimisation (SEO) and pay-per-click advertising (PPC) can improve your online visibility.

Targeted Marketing: You can target specific demographics and audiences. Through techniques like audience segmentation, you can tailor your marketing efforts to reach the most relevant prospects, ensuring your messages resonate with the right people.

Lead Generation: You may be able to create free content such as guides and landing pages. Email capture forms can help capture contact information from interested prospects.

Customer Engagement: Social media platforms and email marketing enable accounting firms to engage with existing clients and keep them informed about important updates, changes in tax laws, and new services.

Data Analytics: Viewing the data and results on any activity allows for continuous improvement and refinement of marketing strategies. Using tools such as Google Analytics can help you measure the effectiveness of marketing campaigns, track website traffic, and gather insights.

Competitive Advantage: If you embrace the digital landscape, you're more likely to stay relevant and attract tech-savvy clients (and staff).

Setting the right goals is crucial for success!
Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). Consider objectives like increasing website traffic, generating a certain number of leads, or growing your social media following. Your goals should be aligned with your business’s overall objectives and customer needs.

Regularly track and analyse your progress using key performance indicators (KPIs) to make data-driven adjustments.

Our most profitable clients spend time on their marketing strategy. If you haven’t got a marketing plan, please ask us for a template!
 
Can you lower your energy bills this winter?
The UK Government have updated their ‘Help for Households‘ website for 2023.

Find out what actions you can take to get ready for winter and save money on your energy bills by reading their ‘It All Adds Up’ campaign.

The latest cost-of-living instalment of £300 is currently being paid to low-income households across the UK, without the need to make a claim.

Warm Home Discount Scheme
You could get £150 off your electricity bill for winter 2023 to 2024 under the Warm Home Discount Scheme. The money is not paid to you - it’s a one-off discount applied to your electricity bill between early October 2023 and 31 March 2024.

Find out if you’re eligible for Warm Home Discount Scheme: Overview - GOV.UK (www.gov.uk)
 
Global Entrepreneurship Week 2023
Global Entrepreneurship Week (GEW) is a collection of tens of thousands of events, activities and competitions each November that inspire millions to explore their potential as an entrepreneur while fostering connections with investors, researchers, policymakers and other startup champions.

This year’s takes place from 13 November to 19 November 2023.

See: Global Entrepreneurship Week | Global Entrepreneurship Network (genglobal.org)
 
Eureka GlobalStars Japan Round 2
UK registered businesses can apply for a share of up to £2 million to develop innovative proposals in partnership with Japan and other participating Eureka members. The competition closes on Wednesday 31 January 2024.

The EUREKA members confirmed as participating in this competition are:

• Canada,
• Czech Republic,
• France,
• Netherlands,
• Singapore, and
• Spain.

The aim of this competition is to fund business-led, collaborative research and development (CR&D) projects focused on industrial research. This competition will be for innovative proposals developed between the UK, Japan and the other participating Eureka members. Innovate UK will be funding the UK partners only.

Your project must have high market potential and develop at least one of the following:

• innovative products,
• technology-based applications, and
• technology-based services.

Projects must be co-ordinated by a lead partner from the UK and a lead partner from Japan as a minimum requirement. Any additional partners from each Eureka member should also nominate a lead from that country.
UK participants must complete the UK application on the Innovation Funding Service (IFS) and provide all documents required by 11am UK time on the deadline stated.

See: Competition overview - Eureka GlobalStars Japan Round 2 - Innovation Funding Service (apply-for-innovation-funding.service.gov.uk)
 
New regulation to reform waste system
A new, simpler common-sense approach to recycling means people across England will be able to recycle the same materials, whether at home, work or school, putting an end to confusion over what can and can’t be recycled in different parts of the country.

Weekly collections of food waste will also be introduced for most households across England by 2026. The government is proposing new exemptions to make sure that waste collectors will be able to collect dry recyclables together, in the same bin or bag, and collect organic waste together, to reduce the number of bins required. 

The government states that the new plans for simpler recycling will make sure that households will not need an excessive number of bins. The reforms will bring in a more convenient and practical system which prevents councils from being hit with extra complexity, while making sure all local authorities collect the required recyclable waste streams: glass, metal, plastic, paper and card, food waste, and garden waste.

This means manufacturers can design packaging and know it can be recycled across the nation, ensuring there is more recycled material in the products we buy and allowing the UK recycling industry to grow.

See: Simpler recycling collections and tougher regulation to reform waste system - GOV.UK (www.gov.uk)

3rd Novemeber 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

Do you have a side hustle?

If have a side hustle then you are probably aware of the requirement to disclose this on your Self-Assessment tax return. It is important to record any side hustle income accurately and HMRC is going to be able to see exactly how much income you receive when using a digital platform from 1 January 2024.

HMRC have new powers which means that anyone in the UK who makes money selling goods or services online will have their incomes recorded on the digital platform that they use and HMRC will have direct access to this.

Digital platforms include apps and websites which facilitate the provision of goods and services such as the provision of taxi and private hire services, food delivery services, freelance work, and the letting of short-term accommodation.

HMRC will have access to the digital records of businesses such as Airbnb, Fiverr, Upwork, Uber, Deliveroo, Etsy and other online businesses. The change is part of a wider plan for HMRC to keep a more accurate eye on people adding to their existing income through side profits or freelancing and they will be checking tax returns to ensure the figures tally with the records from the platforms themselves.

The power to enable these regulations to be made was introduced under section 349 of the Finance (No.2) Act 2023.

From 1 January 2025, certain UK digital platforms will be required to report information to HMRC about the income of sellers of goods and services on their platform. HMRC will then exchange the information with the other participating tax authorities for the jurisdictions where the sellers are tax resident.

Under the Organisation for Economic Co-operation and Development (OECD) rules, digital platforms in participating jurisdictions will be required to provide a copy of the information to the taxpayer to help them comply with their tax obligations.

The legislation, ‘The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023’, as issued in July 2023, can be seen here: The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023 (legislation.gov.uk) and the reporting rules for digital platforms can be seen here: Reporting rules for digital platforms - GOV.UK (www.gov.uk)

If you are not currently filing a tax return then you can check how to register for Self-Assessment here:  Check how to register for Self Assessment - GOV.UK (www.gov.uk)

Please talk to us if you have any questions about a side hustle and how to declare this on your tax return, we have considerable experience in helping our clients comply with the complex HMRC disclosure requirements.
 
Inflation holds steady at 6.7%

UK inflation unexpectedly held stable in September at 6.7% as rising fuel costs offset the first monthly fall in food prices for two years to maintain pressure on households during the cost of living crisis.

The largest downward contributions to the monthly change came from food and non-alcoholic beverages, where prices fell on the month for the first time since September 2021, and furniture and household goods, where prices rose by less than they did a year ago.

The Consumer Prices Index including owner-occupiers' housing costs (CPIH) rose by 6.3% in the 12 months to September 2023, the same rate as in August.

The Office for National Statistics (ONS) said the annual inflation rate as measured by the consumer prices index (CPI) remained unchanged from August’s reading, already raising questions by experts over the Bank of England’s next decision on interest rates due in November. City economists had forecast a modest fall to 6.6%.

Occupiers’ Housing Costs (OOH) increased by 5% in the twelve months to September 2023.
 
Source: Office for National Statistics.

So what actions can a business take now to remain resilient to any changes in the economy?
Here are a few suggestions to help you think about your business:  

• Review your Budgets and set realistic and achievable targets for 2024.
• Review your debtors list and chase up overdue invoices (if appropriate).
• Assign responsibility to one individual for invoicing and collections.
• Put extra effort into making sure your relationships with your better customers are solid.
• Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc) and challenge the need for each step.
• Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about efficiencies and cost reduction).
• Review your staffing needs over the next few months. 
• Review your list of products and services and eliminate those that are unprofitable or not core products/services.

Talk to us about your business, we have many clients who have changed the way they do things and some really innovative stories to share with you! 
 
The new UK supply chain directory

The High Value Manufacturing (HVM) Catapult could make it easier for domestic manufacturers to connect with a new, free to use, UK Supply Chain Directory.

The platform harnesses the power of machine learning to provide up-to-date information on UK manufacturers. It combines publicly accessible data with web scraping to create the single most data-rich source of UK's manufacturers and suppliers. It also allows companies to put up their company profile to update and enrich their content.

HVM keep Companies House as a reference and it joins information coming from companies' websites, CreditSafe, and Dealroom.
This new tool is bringing together hundreds of thousands of businesses across UK industry in one online resource.

The tool is free to sign up for and access, and businesses can use it to:
•           find new suppliers and customers; and
•           map the UK's capability in their sector or area.

Users can search the directory according to company size, location, and specialist areas, with a wide range of other filters. Using data-driven classification, users can also find suppliers or supply chains based on manufacturing capability.

See: uksupplychaindirectory.com
 
Real Living Wage rates for 2023/24

By paying the real Living Wage, employers are voluntarily taking a stand to ensure their employees can earn a wage which is enough to live on. 

As well as it being the right thing to do, there is a growing body of evidence demonstrating the business benefits of becoming a Living Wage employer.

The Living Wage rates are independently calculated based on the real cost of living in the UK and London.
 
The new rates for 2023/24 are:

• £12 per hour UK rate; and
• £13.15 London rate.

See: Real Living Wage increases to £12 in UK and £13.15 in London | Living Wage Foundation
 
Innovate UK Smart Grants

Innovate UK, part of UK Research and Innovation, is investing up to £25 million in the best game-changing and world-leading 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, and
•           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.

Innovate UK will fund feasibility projects, industrial research projects and experimental development projects, as defined in the guidance on categories of research.

Your application must include at least one micro, small or medium-sized enterprise (SME) as the lead or a collaborative grant claiming partner.

Read the full eligibility criteria and scope for Innovate UK Smart Grants.

The competition closes at 11am on Wednesday 17 January 2024.
 
New wine industry reforms

Following a public consultation, Wine: reforms to retained EU law, the UK government has set out reforms for the wine sector which will begin in 2024.

Feedback from the wine industry has shown that certain regulations within the current 400-page rulebook have been stifling innovation and preventing the introduction of more efficient and sustainable practices.

Changes will include removing some packaging requirements – such as ending the mandatory requirement that certain sparkling wines must have foil caps and mushroom-shaped stoppers. This will reduce unnecessary waste and packaging costs for businesses. Outdated rules around bottle shapes will also be scrapped, freeing up producers to use different types.

The government will also remove the requirement for imported wines to have an importer address on the label - the Food Business Operator (FBO) responsible for ensuring all legal requirements are met will still need to be identified on the label, as is the standard requirement for food products. This will create more frictionless trade and reduce administrative burdens.

Further reforms will also give producers more freedom to use hybrid varieties of grapes. This will enable growers to choose the variety that works best for them and reduce vine loss due to disease or climate change, while also providing greater choice to consumers.

See: New wine reforms to boost investment and ease burdens on industry - GOV.UK (www.gov.uk)