News
| 14-08-2024
The first of the 2024 Sustainable Farming Incentive agreements for 2024 are now live. A tool is available that can help you find out about grants and funding that
| 14-08-2024
Last week, the Rural Payments Agency (RPA) announced that 98% of eligible farmers have now received their first instalment of the new delinked payments.
| 14-08-2024
The Bank of Englandâs decision to reduce the base rate to 5% means that HM Revenue & Customs (HMRC) will also reduce their interest rates. The interest rates charged by HM Revenue and
| 14-08-2024
Chancellor Rachel Reeves visited the US and Canada last week, and during an interview with Bloomberg was asked whether she was considering increasing capital gains tax. She replied: âWeâve got a budget on October 30 and we will set out our policy
| 06-08-2024
Draft legislation has now been published for the governmentâs plan to end the VAT exemption for private school fees.The government is also legislating to remove private schools from being eligible for business rates charitable rates relief.
| 06-08-2024
The previous government included plans to end non-domiciled tax status at the Spring Budget and replace it with a 4-year foreign income and gains (FIG) regime. The new government have now announced their intention to continue with these
| 06-08-2024
The government made changes last week to the remit for the Low Pay Commission (LPC) that will mean it takes the cost of living into account when recommending minimum wage rates. The LPC have also been instructed to narrow the gap
| 06-08-2024
From 1 August 2024, selling fees charged by Amazon to UK vendors will be subject to VAT at 20%. This is because of a change in the legal entity that charges the fees. Previously, fees were charged by Amazon Service Europe S.a.r.l (ASE), which did not have a UK establishment,
| 06-08-2024
HM Revenue and Customs (HMRC) have published draft legislation and a policy paper outlining the proposal for the abolition of the furnished holiday lettings (FHL) tax regime. This was originally announced by the previous
| 30-07-2024
Losing a job can be a very challenging and stressful experience. However, if your employer has become insolvent and cannot pay you money that you are owed this adds even further to your stress.
| 30-07-2024
The Institute of Chartered Accountants in England and Wales (ICAEW) have reported that HM Revenue and Customs (HMRC) are contacting taxpayers they believe may have overclaimed Business Asset Disposal Relief.
| 30-07-2024
The Kingâs Speech detailed proposals for a number of areas of new legislation that are likely to affect small employers. The Federation of Small Businesses (FSB) subsequently reported that nine-in-ten employers surveyed by them
| 30-07-2024
The Chancellor, Rachel Reeves, has announced a significant review aimed at enhancing pension investments, increasing pension pots, and reducing waste in the pensions system. The review was highlighted in the
| 15-07-2024
From 5ââââââ Augustââââââ 2024, any request to change your VAT registration details should be made using the VAT online account, and not by using the VAT484 form or any other postal or electronic means. Using the digital route is quicker, more secure and will avoid any unnecessary delays.
| 15-07-2024
HM Revenue & Customs have released a new tool designed to help businesses find out what VAT registration would mean for their business. The new HMRC tool can help you to estimate what VAT might be owed or reclaimed by your business if you were to register for VAT.
| 09-07-2024
Starting 15 July 2024, all Special Import Certificate (SIC) applications must be submitted through a newly launched digital service. This change follows the introduction of the new
| 09-07-2024
This summer has brought with it several major sporting events â The Euros, Wimbledon and the Tour de France are currently all in progress, and the Olympics begin later in July. While this can be good news for businesses working in hospitality and retail, there can also be a dip
| 09-07-2024
So, the election results are in and the Labour party won the countryâs mandate to form a new parliament. What could that mean for the tax you pay? Will there be an emergency budget? Labour will likely set out their initial plans in an âemergencyâ budget.
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The first of the 2024 Sustainable Farming Incentive agreements for 2024 are now live. A tool is available that can help you find out about grants and funding that you may be eligible for.
The tool can be found here –
https://www.gov.uk/find-funding-for-land-or-farms
The tool doesnât confirm your eligibility, but it is a good way of tracking down actions that you may be able to get paid for.
If you need any help finding funding that you may be eligible for, please feel free to give us a call and we would be happy to help.
See:
https://www.gov.uk/government/news/first-sustainable-farming-incentive-agreements-live-for-2024Last week, the Rural Payments Agency (RPA) announced that 98% of eligible farmers have now received their first instalment of the new delinked payments.
The second instalment is due to be paid from 30 September. This is earlier than originally planned. According to RPA Chief Executive Paul Caldwell, the payment has been brought forward âto make sure farmers are paid promptly to improve cash flow during this challenging period.â
Farmers will receive support via delinked payments until 2027.
The delinked payments are based on the average BPS payment received by the farm for the 2020 to 2022 scheme years. Progressive deductions will be applied when calculating the delinked payments each year from 2024 to 2027.
If you were expecting a delinked payment and have not received your first instalment, please feel free to get in touch and we will be happy to help you.
See: https://www.gov.uk/government/news/first-instalment-of-new-delinked-payments-issued-to-businesses
The Bank of Englandâs decision to reduce the base rate to 5% means that HM Revenue & Customs (HMRC) will also reduce their interest rates.
The interest rates charged by HM Revenue and Customs on late tax payments, as well as the rates they pay on repayments are linked to the Bank of Englandâs base rate. Late payment interest is charged at base rate plus 2.5%. Repayment interest is paid at base rate minus 1%, subject to a minimum of 0.5%.
The reduced rates will apply from:
- 12 August 2024 for quarterly instalment payments; and
- 20 August 2024 for non-quarterly instalments payments.
If you need help with your tax or are concerned about being able to pay a tax payment, please get in touch. We can work with you to make a payment arrangement with HMRC.
See: https://www.gov.uk/government/news/hmrc-late-payment-interest-rates-to-be-revised-after-bank-of-england-cuts-base-rate
Chancellor Rachel Reeves visited the US and Canada last week, and during an interview with Bloomberg was asked whether she was considering increasing capital gains tax.
She replied: âWeâve got a budget on October 30 and we will set out our policy then, but itâs always important when youâre deciding tax policy to strike the right balance. Of course, you need to bring in the revenue to fund public services, but weâve also got to grow the economy. I wonât do anything that makes it harder to achieve that economic growth and prosperity.â
The Chancellor has ruled out raising VAT, income tax rates or National Insurance rates, but this has added speculation on whether other taxes will be increased.
Last year, Ms Reeves told the BBC that she had no plans to increase capital gains tax. However, since the Labour party came into office, she has claimed that there is a ÂŁ22 billion shortfall in public finances this year. She has identified some savings, but it seems likely that the gap will also be plugged by raising taxes somewhere.
In addition to changing the rates of capital gains tax, the government could also remove some reliefs to increase their tax take.
Whether there will be any changes to capital gains tax, and what they might be, is difficult to predict, but it may be telling that Ms Reeves refused to rule it out.
If you are thinking about disposing of an asset and would like to know the likely tax cost under the current rules, please get in touch. We would be happy to help you.
See: https://www.bbc.co.uk/news/articles/c9v880z470lo
Draft legislation has now been published for the governmentâs plan to end the VAT exemption for private school fees.
The government is also legislating to remove private schools from being eligible for business rates charitable rates relief. Because business rates policy is devolved, the business rates policy change will only affect private schools in England. VAT policy, however, is reserved and so the VAT changes will affect private schools across the UK.
The current situation for VAT
Currently, private schools, as regulated education providers, qualify as exempt from VAT. This means no VAT is currently charged on private school fees. Private schools also cannot recover any VAT they incur on expenditure.
What will change?
From 1 January 2025, all education services and vocational training supplied by a private school, or a âconnected personâ, for a charge will be subject to VAT at the standard rate of 20%. Any boarding services that are closely related to this supply will also be subject to VAT at 20%.
For parents this means a likely increase of 20% in private school fees beginning next year. However, since private schools will now be able to claim back the VAT on expenditure they incur. This might provide some latitude for the school to be able to absorb some of the increase.
What if a pupil is being funded by the Local Authority?
In some cases, pupils are in a private school because their needs cannot be met in a state run school and the Local Authority funds this. Where this is the case the Local Authority will be compensated for the VAT they incur. If this is your situation then you should see no change.
Can I pay fees in advance to save VAT?
Unfortunately not. As an anti-forestalling measure, any fees paid from 29 July 2024 that relate to the term starting in January 2025 and onwards will be subject to VAT.
Does this apply to nurseries?
The intention is that nurseries, whether standalone or attached to a private school will remain exempt from VAT.
It will be the fees for children who turn compulsory school age that will become taxable. So, this means that VAT will start to apply when a child begins their first year of primary school.
How about sixth form?
Education and vocational training provided by standalone private sixth form colleges or ones attached to a private school will also be subject to VAT.
However, further education colleges that are classified as public sector institutions will not be subject to VAT.
Is there any change for state schools and academies?
No, state schools, including academies, will continue to be exempt from VAT for education and boarding.
How about other goods and services supplied by private schools?
Outside of boarding, a private school will also often provide school meals, transport and books and stationery. The government has confirmed that other closely related goods and services other than boarding which are for the direct use of the pupils and necessary for delivering the education to the pupils will remain exempt from VAT.
This opens the possibility that a school might limit the amount of VAT they charge by assigning a high value to these VAT exempt goods and services and a low value to the VATable education and boarding services. However, the government have confirmed their awareness of this, and any such practice will be challenged.
The additional fly in the ointment with having a mixture of taxable and exempt supplies is that it can affect the amount of VAT that can be recovered by the school on its expenditure. Partial exemption calculations are needed, and HM Revenue and Customs (HMRC) have said they will provide specific guidance for schools on how to do this.
Itâs also been confirmed that VAT will need to be charged on any education after school hours or during the holidays. However, before or after school childcare, or childcare holiday clubs, that just consist of childcare will remain exempt from VAT.
When will private schools need to register for VAT?
Any private schools that are not already VAT registered will need to register from 1 January 2025.
Schools that donât already make any taxable supplies will be able to register from 30 October. Schools that do currently make taxable supplies, such as hiring out facilities, can choose to voluntarily register early.
If you are involved in running a private school and would like help on what these VAT changes will mean to you or would like training or advice on how to deal effectively with VAT, please call us and we would be happy to help.
See: https://www.gov.uk/government/publications/vat-on-private-school-fees-removing-the-charitable-rates-relief-for-private-schools
The previous government included plans to end non-domiciled tax status at the Spring Budget and replace it with a 4-year foreign income and gains (FIG) regime. The new government have now announced their intention to continue with these plans, while ending some advantages for existing non-domiciled individuals.
What the change in tax status will mean
Preferential tax treatment based on domicile status will be removed for all new FIG arising from 6 April 2025. This means that foreign income and gains will all be taxable in the UK where you are classed as residing in the UK, not just that included under the remittance basis.
A relief will be available for new arrivals
New arrivals to the UK will have 100% relief in their first four years of tax residence, as long as they have not been a UK tax resident in any of the 10 consecutive years prior to arriving.
Transitional measures
As a transitional measure, it was previously announced that there would be a 50% reduction in foreign income subject to tax for the first year for those losing access to the remittance basis. However, the government has said this will not now happen.
The government has also outlined transitional arrangements to cover FIG that arose before 6 April 2025 and remitted to the UK afterwards â it will be taxed when remitted as per the current rules. A new Temporary Repatriation Facility (TRF) will also be available that allows for paying a reduced tax rate on a remittance for a limited time period after the remittance basis ends.
Changes to inheritance tax included
The government plans to replace the existing domicile-based system for inheritance tax (IHT) with a new residence-based one from 6 April 2025.
The basic test they are proposing for whether non-UK assets are within the scope for IHT will be whether a person has been resident in the UK for 10 years prior to the tax year in which the chargeable event happens. A person will also be kept within scope for 10 years after leaving the UK.
There are also plans to end the use of Excluded Property Trusts that keep assets out of the scope of IHT. Confirmation of how the rules relate to this and how existing trusts are affected will be provided at the Budget on 30 October.
If you are concerned about how these changes will affect you and the tax you pay, please call us at any time and we will be happy to discuss this with you.
See: https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary
The government made changes last week to the remit for the Low Pay Commission (LPC) that will mean it takes the cost of living into account when recommending minimum wage rates.
The LPC have also been instructed to narrow the gap between the minimum wage rate for 18-20 year olds and the National Living Wage. The longer term objective is to remove the age bands altogether and have a single adult rate.
Each October the LPC makes recommendations to the government on the minimum wage rates to apply from the following April. The new remit keeps this process and timeline in place, allowing for businesses to plan for uplifts.
As well as the cost of living, the LPCâs remit will continue to look at the impact on business, competitiveness, the labour market and the wider economy.
See: https://www.gov.uk/government/publications/national-minimum-wage-and-national-living-wage-updated-low-pay-commission-remit-2024
From 1 August 2024, selling fees charged by Amazon to UK vendors will be subject to VAT at 20%.
This is because of a change in the legal entity that charges the fees. Previously, fees were charged by Amazon Service Europe S.a.r.l (ASE), which did not have a UK establishment, so the fees were subject to the VAT reverse charge procedure. From 1 August, fees will be charged by Amazon EU S.a.r.l (AEU), which has a UK branch. This means that AEU must charge VAT at 20% on fees.
Vendors who are VAT-registered will be able to reclaim the VAT, subject to the usual partial exemption rules. Those who are not VAT-registered will see their selling fees increase by 20% because they cannot claim the VAT.
Generally, such increases in VAT are largely borne by the consumer, as vendors pass the increased costs onto their customers.
For more information, see: https://sellercentral.amazon.co.uk/seller-forums/discussions/t/fe8e800e-d95c-42ae-a98b-e6e682547f90
HM Revenue and Customs (HMRC) have published draft legislation and a policy paper outlining the proposal for the abolition of the furnished holiday lettings (FHL) tax regime. This was originally announced by the previous government and any hopes that this may be stalled by the new government are now laid to rest.
The new measures are proposed to take effect on or after 6 April 2025 for income and capital gains tax, and from 1 April 2025 for corporation tax.
The proposed revisions will remove the tax advantages that furnished holiday let landlords have over other property businesses, as follows:
- Loan interest will be restricted to the basic rate for Income Tax.
- Capital allowance rules for new expenditure will be removed and replaced with the replacement of domestic items relief available to other property businesses.
- Capital gains tax reliefs based on disposing a business asset will no longer apply to furnished holiday lets.
- Furnished holiday let income will no longer be included within relevant UK earnings when calculating maximum pension relief.
There are some specific transitional rules that will apply to these changes.
If you own properties that currently qualify for the FHL tax regime, we recommend that you review the effects that the change in legislation will have on you so that you can determine if you need to take any action. If you need any help with this, please do not hesitate to contact us, we would be pleased to help you.
See: https://www.gov.uk/government/publications/furnished-holiday-lettings-tax-regime-abolition
Losing a job can be a very challenging and stressful experience. However, if your employer has become insolvent and cannot pay you money that you are owed this adds even further to your stress.
If you are in this situation, the latest Annual Report from the Insolvency Service highlights some important information about the support available that may be available to you through the Redundancy Payments Service (RPS).
Hereâs what you need to know.
Key Figures and Support
In 2023-2024, the RPS received 85,592 claims for redundancy payments. Funded by National Insurance Contributions, the service disbursed a total of ÂŁ494 million to individuals who had been left in financial distress due to their employers’ insolvency. This means that there is substantial support available to help you get back on your feet.
Quick Processing of Claims
The report shows that on average, claims for redundancy payments are processed within 10 days. This is good news as it means you can expect to receive financial support relatively quickly, which may help to alleviate some of the immediate financial pressures you might have following a job loss.
What Can You Claim?
The RPS covers a variety of payments you might be owed, including:
- Redundancy Pay: This is compensation based on your length of service, age, and weekly pay.
- Unpaid Wages: Any wages you are owed by your former employer.
- Holiday Pay: Payment for any accrued but unused holiday.
- Statutory Notice Pay: If you didnât receive the notice period pay you were entitled to.
- Protective Awards: Compensation if your employer didnât consult you before making you redundant.
For example, last year, nearly 10,000 former employees of the high street chain Wilko received ÂŁ53.7 million in redundancy and statutory notice pay, with claims processed within 24 hours. Additionally, protective awards included payouts to over 400 former employees of Debenhams and more than 700 former employees of Norwegian Air Resources UK Limited.
How to Apply
If you need to apply for redundancy payments, the process is straightforward and can be completed online. Here are the steps to follow:
- Check your rights: The Insolvency Service provide guidance on this at https://www.gov.uk/government/publications/redundancy-payments-links-to-further-information-and-guidance/redundancy-payments-links-to-further-information-and-guidance. From here you will be able to find out what your rights are, what you can apply for and the types of payments that can be made.
- Prepare your details: Youâll need to provide some details about yourself and your employment. The online application (see below) includes a list of the items youâll need to have on hand. Youâll need a CN number to make an application. If you donât have one, then you can contact the insolvency practitioner who is handling your employerâs insolvency, and they will provide you with this.
- Submit your application: There are 2 applications to complete, and these must both be completed online. To claim for redundancy and other money youâre owed by your employer, see: https://www.gov.uk/claim-redundancy. To claim for loss of notice pay, see: https://www.gov.uk/claim-loss-notice.
- Understand the calculation: You may find it helpful to review what payments you can expect and when you can expect to receive them. For this see: https://www.gov.uk/government/publications/redundancy-payments-from-the-insolvency-service/explaining-your-redundancy-payment.
- Await your payment: The Insolvency Service aim to process claims and make payments within 6 weeks. Although as indicated in the report, your waiting time may be shorter than this.
Recovering Funds
It’s worth noting that the RPS also works to recover money from insolvent companies, which helps to cover some of the costs it pays out. Last year, ÂŁ29 million was recovered, a worthwhile contribution to the support system.
Conclusion
If youâve lost your job due to your employerâs insolvency, the Redundancy Payments Service is designed to provide financial support and help you through this difficult time. Understanding your rights and the support available can make a significant difference as you navigate the challenges of job loss. For more detailed information and to start your application, visit the governmentâs RPS website.
See: https://www.gov.uk/government/news/people-who-lost-jobs-in-business-failures-thrown-vital-lifeline-by-insolvency-service
The Institute of Chartered Accountants in England and Wales (ICAEW) have reported that HM Revenue and Customs (HMRC) are contacting taxpayers they believe may have overclaimed Business Asset Disposal Relief.
What is Business Asset Disposal Relief (BADR)?
BADR, which was formerly known as entrepreneurâs relief, is a tax relief thatâs designed to encourage business owners to sell or dispose of their business assets by offering a reduced rate of capital gains tax. However, there is a lifetime limit to the amount of gains that can qualify for BADR. As of 2024, this limit is ÂŁ1 million.
Why are HMRC writing to taxpayers about this?
ICAEW report that HMRC is writing to taxpayers who claimed BADR on their 2022/23 tax return where they believe the taxpayer has either exceeded the lifetime limit before 2022/23, and so the claim on the tax return should be removed, or the claim on the tax return has taken the taxpayer over the limit, and so the claim needs to be reduced in line with the limit.
This may be an issue for some taxpayers because the lifetime limit for disposals was reduced from ÂŁ10 million on and after 11 March 2020. Taxpayers not aware of this reduction therefore may have made a claim they believe is valid but isnât actually in line with the reduced limit.
What should you do if you receive a letter?
If you receive such a letter, then itâs important to promptly check your claim. Where an adjustment is needed then you can simply amend your tax return. If you believe that your claim is in fact valid then HMRC need to be contacted within 30 days using the details contained in the letter.
Failing to do anything is likely to mean that HMRC will amend the return to discount the claim or open an enquiry into the return. If they then find any additional tax is due to be paid during the course of the enquiry, HMRC may charge a penalty.
Where we prepared your tax return, please simply hand the letter to us and we will be pleased to contact HMRC on your behalf. Whatever the case, if you are not sure about what to do, please feel free to contact us and we will be happy to help you.
See: https://www.icaew.com/insights/tax-news/2024/jul-2024/taxpayers-may-have-exceeded-badr-limit
The Kingâs Speech detailed proposals for a number of areas of new legislation that are likely to affect small employers.
The Federation of Small Businesses (FSB) subsequently reported that nine-in-ten employers surveyed by them had said they have concerns that the costs and risks associated with employing people would be increasing.
The FSB also noted that there was no legislation announced to tackle the poor payment practices of big businesses toward their small suppliers. FSB Policy Chair Tina McKenzie said late payment âhampers cashflow and stifles investment, and we call on the Government to look again.â
See: https://www.fsb.org.uk/resources-page/fsb-weekly-brief-newsletter-friday-19-july-2024.html
The Chancellor, Rachel Reeves, has announced a significant review aimed at enhancing pension investments, increasing pension pots, and reducing waste in the pensions system. The review was highlighted in the King’s Speech, confirming a new Pensions Bill that could significantly benefit UK pensioners and the broader economy.
Here’s an analysis of what the review could mean.
Key Highlights of the Pensions Review
- Boost to Pension Pots: The new Pensions Bill has the potential to increase pension pots by over ÂŁ11,000 for savers in defined contribution schemes. The bill also emphasises further consolidation and broader investment strategies to deliver higher returns.
- Economic Impact: An investment shift in defined contribution schemes could introduce ÂŁ8 billion of new productive investment into the UK economy. The review will also look at how to unlock the investment potential of the Local Government Pension Scheme (LGPS), which manages ÂŁ360 billion in assets and is the seventh largest pension fund in the world.
- Reducing Fees: The review will address the ÂŁ2 billion annual expenditure on fees within the LGPS, aiming to cut down on waste and improve efficiency.
Industry support
The announcement has received strong support from various industry leaders: For instance, António SimÔes, CEO of Legal & General Group, welcomed the initiative, noting that driving pensions capital into areas like science and infrastructure can support better returns for savers and stimulate long-term economic growth.
Timing
The first stage of the review will report in the next few months and will look at further measures that can support the proposed Pensions Bill.
The Chancellor’s landmark pensions review aims to unlock significant investment into the UK economy while enhancing retirement outcomes for millions of pension savers. The review should bring good news for pension savers, but we watch to see whether good intentions can turn into secure retirements for all.
See: https://www.gov.uk/government/news/chancellor-vows-big-bang-on-growth-to-boost-investment-and-savings
From 5ââââââ Augustââââââ 2024, any request to change your VAT registration details should be made using the VAT online account, and not by using the VAT484 form or any other postal or electronic means. Using the digital route is quicker, more secure and will avoid any unnecessary delays.
For customers that are unable to access and use the digital services such as those who are digitally excluded or need assistance with digital services, HMRC will always provide a service to meet their needs, continuing to offer support through non-digital channels such as the phone, which includes our ‘needs extra support’ service.
HMRC are aware that some customers will still need to apply for a change to their details via post on a VAT484 form if they are digitally excluded or, for example, notifying us of taking over someone elseâs VAT responsibilities. These customers can contact HMRC to ask for a form.
Updated guidance will be available at ‘Change your VAT registration details from August 2024
HM Revenue & Customs have released a new tool designed to help businesses find out what VAT registration would mean for their business.
VAT registration becomes mandatory if:
- your total taxable turnover exceeds ÂŁ90,000 over the previous 12 months.
- you expect your taxable turnover to go over ÂŁ90,000 in the next 30 days.
- you’re based outside the UK and supply goods and services to the UK.
Taxable turnover refers to the total value of everything you sell except for anything that is exempt from VAT.
It is also possible to register for VAT voluntarily even if your annual taxable turnover is below ÂŁ90,000.
If the majority of customers for your business are VAT registered then there is no increase in costs for them, and so voluntary VAT registration can be worthwhile so that you can claim VAT back on the purchases you make.
The new HMRC tool can help you to estimate what VAT might be owed or reclaimed by your business if you were to register for VAT. You are free to use the tool to explore multiple âwhat-ifâ scenarios so that you can compare various situations and how you might be affected.
To use the tool, please see: https://www.gov.uk/guidance/check-what-registering-for-vat-may-mean-for-your-business
Starting 15 July 2024, all Special Import Certificate (SIC) applications must be submitted through a newly launched digital service. This change follows the introduction of the new special imports digital service in January 2024, designed to enhance ease of use, security, reliability, and accessibility.
Key points for UK veterinary surgeons who hold and supply imported medicines:
- The old online special import scheme will be decommissioned on 15 July 2024.
- If you have not yet registered for the new digital service, it is essential to do so before this date.
- Post 15 July 2024, SIC applications will only be accepted via the new digital service.
For wholesale dealers:
- A new digital service for applying for Wholesale Dealer Import Certificates (WDICs) will also be available from 15 July 2024.
- This service is for dealers who hold and supply imported medicines to valid import certificate holders.
Veterinary professionals and wholesale dealers are encouraged to transition to the new system promptly to ensure uninterrupted access to the necessary certificates.
For further information and a helpful video, see: https://www.vmdconnect.uk/new-import-service
This summer has brought with it several major sporting events â The Euros, Wimbledon and the Tour de France are currently all in progress, and the Olympics begin later in July. While this can be good news for businesses working in hospitality and retail, there can also be a dip in productivity as employees take time off or become distracted during major matches or events.
Some businesses adopt flexible working hours or set up viewing areas to maintain their employeesâ morale and engagement.
However, it may be worth reviewing your holiday policies. Managing employee holidays can be a bit of a balancing act at the best of times, but with some thoughtful planning, you can keep your business running smoothly while ensuring your team gets the break they deserve. Here are some tips to help you out:
- Craft a Clear Policy
First things first, have a straightforward holiday policy in place. Make sure it covers how holidays are accrued, the procedure for booking time off, and any blackout periods when holidays arenât allowed. Clear communication is key here.
- Plan Ahead
Keep an annual holiday calendar. This will help you see at a glance whoâs off and when, so you can plan ahead. Try to encourage your team to spread their holidays throughout the year to avoid everyone wanting time off at once.
- Embrace Technology
Use HR software to manage holiday requests and approvals. It makes tracking whoâs off and when a breeze and ensures everyoneâs requests are handled fairly and promptly.
- Encourage Early Requests
Get your team to put in their holiday requests early. The earlier you know who wants time off, the better you can plan. This also helps avoid any last-minute rushes for the same dates.
- Cross-Train Your Team
Cross-training your staff means your business can still run smoothly even when someone is off. Itâs a good way to ensure no single employee is irreplaceable for everyday tasks.
- Monitor and Adjust
Regularly review your holiday policy and how itâs working. Get feedback from your team and be ready to make changes if necessary. Flexibility can go a long way in keeping everyone happy.
- Promote Work-Life Balance
Encourage your employees to use their holiday entitlement. Itâs important for their well-being and helps prevent burnout. Make it a point to respect their time off by not contacting them about work unless itâs absolutely necessary.
By following these tips, you can create a harmonious work environment where employees feel valued and rested and able to enjoy the events that matter to them, and your business can thrive even when team members are on holiday.
So, the election results are in and the Labour party won the countryâs mandate to form a new parliament. What could that mean for the tax you pay?
Will there be an emergency budget?
Labour will likely set out their initial plans in an âemergencyâ budget. This is unlikely to happen before September or October as the Office of Budget Responsibility (OBR) will need 10 weeks to prepare independent forecasts on the plans.
Further details will no doubt emerge over coming weeks, but hereâs a review of what looks likely in the main tax areas based on their manifesto.
Income tax changes
- No increase to income tax rates.
- Pension reforms are planned.
- No mention has been made about the tax-free allowance.
National Insurance Contributions (NIC)
- A promise has been made not to increase employeesâ NIC.
Business tax
- A roadmap for business taxation will be published in coming weeks.
- Full expensing and the Annual Investment Allowance will be kept. Some further details to come that should clarify the qualification criteria.
Corporation tax
- Corporation tax to be capped at the current main rate of 25% (paid by companies with profits of ÂŁ250,000 and over) for the whole of the next parliament. This may hint that there are increases to come for companies benefiting from the small profits rate or marginal relief.
VAT
- No increase to the VAT rate.
- VAT will be applied to private school fees.
Capital Gains Tax (CGT)
- Nothing has been specifically mentioned on CGT rates or reliefs.
- The âcarried interest tax loopholeâ will be closed. This mainly affects private equity executives who receive a stake in the funds they manage rather than traditional remuneration.
Inheritance tax
- No expected changes to current rates or reliefs.
- The use of offshore trusts to avoid inheritance tax will be ended.
Stamp duty land tax
- The existing surcharge on purchases of residential property by non-UK residents will increase from 2% to 3%.
- Perhaps this hints that further down the line there will be increases for UK residents too.
If any of these changes affect you in any way, please contact us and we will be pleased to give you personalised advice. As your tax advisers, we will continue to keep you up-to-date on tax changes so that you can plan your affairs to minimise paying tax
