News
| 27-02-2024
When starting a business, or indeed as an established business, choosing the most suitable legal structure for your business is an important thing to consider. Two popular options are
| 19-02-2024
What are the benefits of cloud accounting? Accessibility Traditional accounting systems often tie businesses to a specific location, requiring users to be physically present in the office to be able to access financial data
| 07-02-2024
The Government plans to introduce new legislation to help parents who earn more money than others with their future pensions. In essence, if you did not claim child benefit because
| 07-02-2024
HM Revenue & Customs (HMRC) has made a significant change to the way that some taxpayers access its alternative dispute resolution (ADR) scheme. Where applicants for ADR could
| 07-02-2024
Businesses may be able to reclaim significant amounts of National Insurance Contributions (NICs) and plan for future savings because of a recent Tribunal ruling on how car allowances
| 07-02-2024
Are you a sole trader or a member of a partnership? Here is what you need to know about the upcoming tax basis period reforms. HM Revenue & Customs (HMRC) is introducing changes to how it assesses and collects
| 31-01-2024
Unlocking your business value: Strategies for Growth. According to consultancy Cornwall Insight, domestic energy prices are predicted to drop in April with analysts predicting that there could be a further fall in
| 31-01-2024
The National Cyber Security Centre (NCSC) is providing a funded Cyber Essentials programme to help small businesses in certain sectors across the UK implement essential security controls. While all
| 31-01-2024
Funding of up to £50,000 together with a package of tailored non-financial support is available to apply for by high-potential micro and small businesses that are either from or support the creative industries. Innovate UK, which is
| 31-01-2024
The Economic Crime and Corporate Transparency Act, which received royal assent on October 26, 2023, gives Companies House the power to play a more substantial role in tackling economic crime.
| 31-01-2024
Are you thinking about or in the process of applying to become a Community Interest Company? If so, Companies House are running a webinar that will help attendees fully understand how a Community Interest
| 24-01-2024
A UK government consultation is in process looking at introducing a new threshold for bringing cases to the Energy Ombudsman that will include small businesses.
| 24-01-2024
Inflation figures for December show a small increase to 4% from 3.9% in November. Economists had expected inflation to fall slightly, but a 12.9% increase in prices for alcohol and tobacco were behind the rise. Expectations for the Bank of England to cut the base rate later in the year
| 24-01-2024
HM Revenue and Customs (HMRC) have announced that nearly 44,800 people have sorted their upcoming 31 January tax bill by setting up a payment plan. HMRC provide the option of a monthly payment called Time to pay
| 17-01-2024
Storm Henk caused widespread flooding and damage across England during the first few days of 2024, affecting households and businesses alike. Following this, the government has announced that financial support is available to eligible areas in England
| 17-01-2024
Many of us make resolutions in January to try and reduce work-related stress and improve our wellbeing. But they can quickly fall by the wayside once we get back into the swing of work and running our business.
| 17-01-2024
Coming into force from 1 January 2024, the Working Time Regulations, as amended by The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, introduced reforms that simplify holiday pay and entitlements.
| 17-01-2024
With all the changeable weather we have been having recently we hope you have been able to stay dry and warm! Change is not only confined to the weather, but it is also an inevitable facet of
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When starting a business, or indeed as an established business, choosing the most suitable legal structure for your business is an important thing to consider. Two popular options are operating as a sole trader or forming a limited company. Each of these options comes with its own set of pros and cons, especially when it comes to tax.
Sole trader:
Pros:
- Less administration: Operating as a sole trader is straightforward and involves minimal paperwork. You have no need to register with Companies House either. So, this is an attractive option if you are looking to start a small business quickly and want to keep your administrative work to a minimum.
- Tax reporting is simpler: Tax reporting is relatively simple for sole traders. Income tax and National Insurance contributions are calculated based on the profits your business makes. The process is usually less complex than if you were dealing with company tax.
Cons:
- Unlimited liability: Perhaps the most significant drawback of operating as a sole trader is that there is no legal distinction between the business and you as an owner. This means you are personally liable for any debts or legal claims against the business and means that your personal assets could be at risk.
- Tax disadvantages: While the simplicity of tax reporting is a pro, it can also be a con in some cases. Sole traders may miss out on certain tax advantages available to limited companies, for instance dividend payments and more flexible salary arrangements.
Limited company
Pros:
- Limited liability: One of the most significant advantages of forming a limited company is that your business and personal assets can be separated. Owning shares in a limited company means that your liability is limited to the amount invested in the company, and this can provide a layer of protection for your personal assets.
- Tax Efficiency: Limited companies often benefit from more tax-efficient structures. For example, as an owner, you can pay yourself through a combination of salary and dividends, which may result in lower overall tax liabilities compared to sole traders, who pay income tax and national insurance on all profits.
Cons:
- Administrative Burden: Limited companies are subject to more regulatory requirements and administrative tasks. This includes filing annual accounts, maintaining company records, and complying with legal obligations set out by Companies House.
- Tax is more complex: While limited companies can enjoy tax advantages, navigating all the rules that relate to companies can be complex. There is usually more work to do when it comes to withdrawing money from the company, for instance you may need to set up and run a payroll to draw a salary, or to document dividend payments.
In conclusion, deciding whether to operate as a sole trader or a limited company involves careful consideration of various factors, including the tax implications. Sole traders benefit from simplicity but face unlimited liability and potential tax disadvantages. On the other hand, limited companies offer limited liability and potential tax efficiency but come with a greater administrative burden and complexity.
If you are considering which of these options is best for you and would like to know more about what is involved or want to know how the tax costs of being a sole trader or a limited company compare, please feel free to contact us. We have helped many businesses reach a decision on their legal structure and would be happy to help you!In business, staying ahead of, or at least up with, the curve is crucial for success. Over recent years, one of the revolutionary tools that has transformed the way businesses manage their finances is cloud accounting. Cloud accounting offers many benefits over traditional, on-premise accounting systems. Let’s discuss some of them.
What are the benefits of cloud accounting?
Accessibility Traditional accounting systems often tie businesses to a specific location, requiring users to be physically present in the office to be able to access financial data. Cloud accounting frees a business from this constraint. It gives users access to real-time financial information anytime, anywhere. This kind of flexibility and access can be very valuable, allowing teams to collaborate and decisions to be made regardless of location.
Cost efficiency Cloud accounting operates on a subscription-based model, avoiding the up-front software licence costs usually involved in traditional accounting systems. Cloud accounting systems also typically receive automatic updates and maintenance, which can reduce the demand for IT support.
Security The security of financial information is naturally a top concern for a business. Cloud accounting providers use advanced encryption measures to ensure that sensitive information is kept safe. These providers usually have dedicated teams focused on monitoring and addressing security threats too. This provides a level of protection that may be difficult to replicate on your own premises. Cloud accounting systems also include robust backup processes, which reduce the risk of losing data because of hardware failing.
Automation With many cloud accounting systems – or by means of subscribing to linked automated data entry software – data entry can be automated. By uploading a copy of the invoice or receipt the software can ‘read’ the data and create the entry needed by the accounts system. While such systems rarely achieve 100% accuracy, the time-savings can be considerable and allow those dealing with finance to concentrate on more strategic work.
The benefits of cloud accounting can be transformative to a business and give you a competitive edge in today’s dynamic market. Embracing this technology is not just a trend but can be considered a strategic move towards a more agile, responsive and prosperous business.
We have experience of various cloud accounting systems. If you would like an assessment of your current system to see how cloud accounting might help you, please do not hesitate to contact us!
Data sharing powers to continue following statutory review
The Digital Economy Act 2017 gave the government data sharing powers that allow it to combat fraud committed against the public sector.
A statutory review, which was published last week, shows that taxpayers have been saved £137 million because of these data sharing powers. The review showed that the Act has enabled more than 100 data sharing pilots across both local authorities and governments or agencies.
The savings were categorised as £99.5 million from identifying Covid-19 loan scheme fraud, £14.9 million from fraud identified in council tax and housing benefit systems, £5.1 million from identifying companies that were fraudulently misstating their accounting and corporate practices to avoid paying tax, and £5 million from council tax debt owed by those in employment.
As a result of the review, Baroness Neville-Rolfe, who is Minister of State for the Cabinet Office, decided to keep the fraud and debt powers contained in the Digital Economy Act. The government subsequently put a report to the UK and Scottish Parliaments and Welsh and Northern Ireland Assemblies summarising the conclusions of the review.
Four of the data sharing pilots have already been converted to standard practice and there are plans for more to join them. Respondents to the consultation expressed that they had no privacy concerns about the powers. See: https://www.gov.uk/government/news/new-data-sharing-powers-save-taxpayers-137-million-since-introduction
The Government plans to introduce new legislation to help parents who earn more money than others with their future pensions. In essence, if you did not claim child benefit because you earned over £50,000 when you had children, you will soon be able to claim National Insurance credits.
These credits are important for getting the full State Pension when you retire.
Why do you need National Insurance credits for your pension?
To get the full State Pension, you need a certain number of years where you have paid National Insurance contributions. These contributions are usually made when you work and pay National Insurance.
However, if you are a parent or carer and you do not work or earn less because you are looking after children, you might not pay National Insurance. This is where National Insurance credits come in.
They act like ‘placeholders’ for the years you are not working due to childcare. These credits count towards your National Insurance record, just like if you were working and paying National Insurance.
But, if you did not claim child benefit because you earn over £50,000, you might have missed out on getting these credits. So, the National Insurance credit scheme allows you to claim the credits you’ve missed, helping you qualify for the full State Pension.
When will you be able to claim?
The Government is saying that it should be from April 2026, and it will cover anyone affected since 2013. However, they have not revealed the full claiming process yet, nor the full eligibility conditions.
Having said that, it is entirely possible that when the claiming process opens, thousands of individuals will be applying so it is best to get your affairs in order sooner rather than later.
We recommend you do two things:
- Check your National Insurance contributions record online here to see if there are any gaps.
- Speak to an experienced accountant who can prepare you for claiming.
Please get in touch if you have any questions about your National Insurance Contributions.
HM Revenue & Customs (HMRC) has made a significant change to the way that some taxpayers access its alternative dispute resolution (ADR) scheme. Where applicants for ADR could previously speak with a call handler, they will now be asked to leave a voicemail on the new 24-hour service.
Available to anyone seeking to settle a dispute via ADR, the voicemail service will require claimants to leave their name and phone number.
A mediator will then contact the claimant within 30 days to discuss their application.
The ADR scheme explained
ADR is a crucial part of navigating tax disputes with HMRC. It is often a useful option for businesses and individuals who seek to meet their tax obligations without overpayment or early or late payment.
You can apply for ADR when you have an ongoing dispute with HMRC, where it has opened an investigation into your tax affairs.
ADR covers a wide range of scenarios but is typically used when:
- Both parties are unable to reach an agreement
- A compliance check is taking place
- There are disputes over the facts of a case
- Communications have broken down
- There may have been a misunderstanding
- HMRC has made a decision you don’t agree with or understand
HMRC will let you know within 30 days of submitting your application if ADR is right for you and how your claim is being progressed.
Will this change impact me?
Many individuals and companies, particularly those with a tax adviser or accountant, will use the existing online form to submit their application. However, if you cannot access this form due to, for example, poor internet connection, you are likely to be affected by this change.
Both ways of applying carry a 30-day time limit, so it is unlikely to disadvantage phone applicants over online applicants. The most significant impact is likely to be the difficulty in speaking to an adviser if you have a question regarding your application.
Additionally, you may struggle with the inability to track a phone application as opposed to an online submission. The best way to avoid the frustrations of a telephone submission is to seek support to submit an online application to the ADR.
We can provide advice and apply on your behalf should you be subject to an HMRC investigation.
Contact us for further guidance on tax disputes with HMRC and the ADR scheme.
Businesses may be able to reclaim significant amounts of National Insurance Contributions (NICs) and plan for future savings because of a recent Tribunal ruling on how car allowances are taxed.
Brought by Wilmott Dixon and Laing O’Rourke in their capacity as employers, the Tribunal upheld the firms’ argument that car allowance payments should qualify for Class 1 National Insurance relief. HM Revenue & Customs (HMRC) subsequently repaid approximately £146,000 to these businesses as a result of the Tribunal.
It has further stated that it will not appeal the decision – an announcement which carries significant implications for other employers that provide a car allowance.
What is the car allowance?
A car allowance is a type of benefit that may be provided to employees in place of a company car.
It is typically a monetary benefit on top of an employee’s salary to allow them to lease or buy a car for work purposes or to maintain the one they own owing to additional, work-related use.
An employer can provide a car allowance to any employee, but most are given to those who spend a lot of time travelling, such as sales staff or managers who oversee more than one site.
It may also be given as an attraction and retention benefit.
Is the car allowance taxed?
Because they are paid as part of an employee’s salary, car allowance payments are normally subject to tax and NICs – for both the employer and employee.
However, work-related travel is also subject to a fuel or mileage allowance.
This is a reimbursement which is not subject to tax if paid at or below the ‘approved amount’ – 45p per mile for the first 10,000 miles and 25p after that.
What decisions have been made?
The Tribunal ruled that a car allowance should be defined as ‘relevant motoring expenditure’ (RME) and can, therefore, be used to offset below-standard mileage reimbursement.
For example, if your company car policy states that employees will be reimbursed at 20p per mile and an employee drives 500 miles, this leaves a difference of 25p per mile – totalling £125.
When you come to pay the car allowance for this person, the first £125 will be taxable as part of the employee’s salary but will not be subject to National Insurance.
This could represent a significant saving for employers that provide a car allowance in place of a company car.
How will this affect me?
If you offer mileage reimbursement and a car allowance to your employees, you could stand to save a substantial amount on your employer NI contributions.
It could also open the door for business owners to reclaim overpaid NICs under this latest clarification.
The Tribunal also accepted that, if your business policies state that a certain number of miles are not reimbursable, then these miles must also be offset against other RMEs.
Benefits all round
The Tribunal’s ruling could make car allowances an attractive benefit to both employers and employees over, for example, a company car.
Tax regulations regarding benefits and NICs can be complex and are likely to change further as these new precedents take effect.
To stay compliant, it is important to remain updated on your tax obligations and work with your accountant to ensure you are paying the correct amount of National Insurance.
For tailored advice on benefits, company cars, travel allowances and tax, please contact us today.
Are you a sole trader or a member of a partnership? Here is what you need to know about the upcoming tax basis period reforms. HM Revenue & Customs (HMRC) is introducing changes to how it assesses and collects business taxes relating to the basis period.
At the end of the 2023/24 financial year, these changes will come into effect – altering the way that sole traders, partnerships and other unincorporated businesses pay tax.
Basis period reform – What you need to know
If you are a business owner or self-employed worker, you will use or have used a traditional basis period.
This is a specific period used to calculate taxable profits for a particular tax year, meaning the basis period is typically the corresponding accounting period to the financial year.
Under current regulations, established businesses and sole traders pay tax on qualifying profits in the 12-month accounting period which ends in that tax year – regardless of whether it corresponds to the financial year.
For example, if your accounting period starts on 1 January and ends on 31 December, the financial year would end the following April. This means that your tax return for this period would be due in January two years afterwards.
Under new regulations, from 2024/25, all unincorporated businesses will be taxed on profits from each financial year – 6 April to 5 April the following year.
This will apply regardless of an individual business’ accounting period.
For the example above where the accounting period ends on 31 December, this change means that the business will have to assign profits from two accounting periods to fit into the 6 April to 5 April timeline.
If the accounts are not completed by the tax return submission deadline, it will be necessary to use estimated profits in their place for the three months to 5 April.
At the end of the 2023/24 financial year, the transitional year for the basis period ends.
Businesses will then be taxed on this longer tax period ending in April 2024 to bring their tax years in line with the financial year.
HMRC has introduced regulations to allow tax liabilities accrued during this period to be paid over a period of five years to reduce the burden of additional tax payments.
Navigating your opening year
The rules are slightly different if this is your first year trading as a business. Instead of paying tax on a full year of earnings, your business will be taxed on qualifying profits earned between the date you began trading and 5 April (the end of that financial year).
This means that you’ll have ‘overlap profits’ for your first one to two years of trading. Your profits earned between the end of the financial year and the end of your accounting period will be counted in two tax returns.
These new rules will also apply to new unincorporated businesses.
Preparing for 5 April
As explained, the new regulations mean that businesses with an accounting period that is different from the financial year will need to divide profits between two different tax payments, where their accounting period doesn’t already align with tax year-end.
This could increase the room for error in your tax calculations, resulting in penalties or a heavy tax burden at a later date.
Aligning your accounting period with the financial year could help you streamline your finances and stay on top of your tax calculations in future.
You can shorten your company’s financial year to achieve this, by a minimum of one day and as many times as you like.
Staying on top of your accounts and financial records can help you stay in good fiscal health and maintain tax compliance.
We can help you to understand your tax obligations and make your accounting period work for you.
Need help understanding the changes to the basis period? Contact us today.
According to consultancy Cornwall Insight, domestic energy prices are predicted to drop in April with analysts predicting that there could be a further fall in the summer. This is good news all round, as energy prices have been a significant factor in the UK’s high inflation rate. A drop in energy prices could lead to a drop in interest rates, and with it a more positive outlook in the economy.
In the wake of a more positive economic outlook, businesses are often presented with opportunities for expansion and growth. But also, because there is a more favourable lending environment, or more eager investor interest, then it can be a more favourable time to exit a business.
Whatever the case, being tuned into the current value of your business can be very useful in shaping the business for growth or for a future sale. Here, we explore the significance of business valuation and provide advice to help you propel your business value to new heights.
Why Business Valuation Matters:
Business valuation serves as a comprehensive assessment of your business’s worth. It goes beyond financial metrics and encompasses various factors that contribute to the overall worth of your business.
Being aware of the value of your business and the factors that influence this can then inform and influence your decisions in crucial areas like attracting investors, negotiating partnerships, developing new products or services, or growing existing ones. Business valuation provides insights into your company’s strengths and areas for improvement, allowing you to chart a course for sustainable growth.
Key Factors in Business Valuation:
While business valuations encompass a wide range of factors, there are 3 key factors you will want to consider.
- Financial Health: Sound financial management is a cornerstone of business valuation. Therefore, invest the time in preparing and reviewing regular financial statements. Just a simple set of monthly management accounts will make a difference. By staying connected with the financials you will more quickly recognise which revenue streams are profitable, you will be more sensitive to the effect of various costs, and more aware of maintaining a healthy balance between assets and liabilities. This knowledge and awareness will translate into more financially acute decisions.
- Market Positioning: Your company’s position in the market significantly impacts its value. Try to stay attuned to industry trends, analyse your competitors, and look for ways to differentiate your business. Being able to clearly identify your unique value proposition will help you create a strong market presence.
- Brand and Intellectual Property: Cultivate and protect your brand and intellectual property. A well-established brand, coupled with proprietary assets, enhances perceived value. Regularly update and safeguard trademarks, patents, and other intellectual property.
Further strategies to Boost Business Value:
Of course, these are not the only areas to look at. Consider how these areas might help you too:
- Diversification: Could you expand your product or service offerings to reach new markets? Diversification not only increases revenue streams but also makes your business more adaptable and resilient.
- Operational Efficiency: Are there ways you could streamline operations for greater efficiency? Perhaps some things are done a certain way for traditional reasons that no longer apply. Or perhaps there is new technology available that could help enhance the way your business runs. A well-run operation not only boosts current profitability but enhances long-term value.
- Talent Development: Could you invest in your team’s skills and knowledge? A skilled and motivated workforce will be more innovative and is likely to work more efficiently, both factors that will positively impact your company’s valuation.
- Strategic Partnerships: Are there any other businesses you are aware of where a strategic partnership with them could align with your business goals? Collaborations can open new avenues for growth, expand your customer base, and enhance your market standing, all things that will positively influence the value of your business.
- Customer Relationships: Can you do more to nurture strong and lasting relationships with your customers? Positive customer experiences not only drive current sales but also contribute to brand loyalty and long-term business value.
A good understanding of business valuation, coupled with strategies for growing it can make your business more valuable and attractive to investors, but also a more focused and enjoyable place to work. Regularly reassess your business’s worth and implement strategies that will increase that worth. Doing so can make your business more valuable and attractive to investors, but also a more enjoyable and focused place to work.
As experienced business advisers, we have tools and resources that can help you with valuing your business. Please just let us know and we would be happy to help!
The National Cyber Security Centre (NCSC) is providing a funded Cyber Essentials programme to help small businesses in certain sectors across the UK implement essential security controls.
While all businesses face cyber threats, some that hold sensitive information or that are seen as an easy target can face increased risks. The focus of the funded programme is to help these additional risk businesses protect themselves.
The Cyber Essentials programme covers how to control firewalls, secure settings, access controls, malware protection, and software updates. These controls can help a business protect itself from the most common types of cyber threat.
The funding will provide 20 hours of free remote support from an NCSC-assured cyber security advisor. The advisor will focus on implementing the controls and ensuring they are effective.
Micro or small businesses (1 – 49 employees) registered in the UK and working on the development of fundamental AI technologies are eligible to apply for the funded Cyber Essentials Programme.
However, businesses that have previously participated in a funded Cyber Essentials programme or that already hold or have recently held (since January 2023) Cyber Essentials Plus certification are not eligible.
For more information on the programme, see: https://www.ncsc.gov.uk/information/funded-cyber-essentials-programme
Funding of up to £50,000 together with a package of tailored non-financial support is available to apply for by high-potential micro and small businesses that are either from or support the creative industries.
Innovate UK, which is part of UK Research and Innovation, is making this funding available as part of its Creative Catalyst area of investment and support.
Funded projects will need to focus on one or more specified creative industry subsectors. Innovate UK is particularly encouraging proposals that will benefit subsectors that are underrepresented in innovation, including architecture, crafts, photography, publishing, and radio. But proposals for other creative subsectors are also welcomed.
The aim of the funding is to help lower the risk of taking on innovative projects in the creative industries.
An online briefing is being run on 25th January 2024 at 11am that will explain the timelines, who can apply and how to apply. See: https://iuk.ktn-uk.org/events/creative-catalyst-2024-competition-briefing/
Grant Writing Workshops providing tips and advice for writing a successful grant application will also be run on 6th February 2024 and 28th February 2024. See: https://iuk.ktn-uk.org/events/creative-catalyst-peer-network-grant-writing-workshops/
The Economic Crime and Corporate Transparency Act, which received royal assent on October 26, 2023, gives Companies House the power to play a more substantial role in tackling economic crime.
It is anticipated that the initial set of changes introduced by this transformative legislation will happen on or shortly after March 4. The changes are currently waiting for parliament to approve the secondary legislation.
Key amendments include new rules for registered office addresses, additional powers to be able to query information and request supporting evidence and make stronger checks on company names, as well as the ability to share data with other governmental departments and law enforcement agencies.
The Act also includes measures such as identity verification, but these will be introduced as a part of later changes.
See: https://www.gov.uk/government/news/first-changes-to-uk-company-law-expected-on-4-march
Are you thinking about or in the process of applying to become a Community Interest Company? If so, Companies House are running a webinar that will help attendees fully understand how a Community Interest Company works. It will also provide some helpful tips for the application process.
The Business Support Helpline will also be sharing in the webinar to explain the help they can offer you and your business.
The webinar will run on Thursday 8th February 2024, starts at 11am and is scheduled to last an hour.
To sign up, see: https://register.gotowebinar.com/register/1761272928126826587
A UK government consultation is in process looking at introducing a new threshold for bringing cases to the Energy Ombudsman that will include small businesses.
Currently, most small businesses that have a dispute with their energy supplier are unable to access the Energy Ombudsman for help with dispute resolution.
The consultation proposes that there be a new small business definition that will expand access to businesses with:
- up to 50 employees; and
- less than £6.5 million annual turnover or £5 million balance sheet total; or
- annual electricity consumption of less than 500,000kWh; or
- annual gas consumption of less than 500,000kWh
The consultation proposals and details for how to respond are available at: https://www.gov.uk/government/consultations/new-threshold-for-businesses-accessing-the-energy-ombudsman
Inflation figures for December show a small increase to 4% from 3.9% in November.
Economists had expected inflation to fall slightly, but a 12.9% increase in prices for alcohol and tobacco were behind the rise.
Expectations for the Bank of England to cut the base rate later in the year remain though. Energy bills are predicted to drop in 2024 and inflation has fallen from its peak of 11.1% in October 2022 more quickly than the Bank predicted.
The Bank’s target is 2%, so December’s inflation figure of 4% is still double the target.
Deputy chief UK economist at Capital Economics, Ruth Gregory, has been quoted as saying that she expects inflation to have fallen below 2% by April and feels that interest rates could be cut by June.
The Bank of England’s base rate is currently 5.25%.
See: https://www.bbc.co.uk/news/business-67993276
HM Revenue and Customs (HMRC) have announced that nearly 44,800 people have sorted their upcoming 31 January tax bill by setting up a payment plan.
HMRC provide the option of a monthly payment called Time to Pay (see link below). Provided taxpayers owe less than £30,000, they can use HMRC’s affordability checker for help to decide on what arrangement will work best for them.
This arrangement must be set up before 31 January to avoid facing a penalty. Interest will be applied to any outstanding balances from 1 February.
If you need help working out how to make your tax payment or to set up a payment arrangement, please call us and we will be happy to help!
See: https://www.gov.uk/difficulties-paying-hmrc/pay-in-instalments
Storm Henk caused widespread flooding and damage across England during the first few days of 2024, affecting households and businesses alike. Following this, the government has announced that financial support is available to eligible areas in England that have experienced exceptional localised flooding.
In these eligible areas, the following help will be made available to significantly affected and eligible businesses:
- 100% business rates relief for at least 3 months;
- Up to £2,500 from the Business Recovery Grant that can be applied for by small-to-medium sized businesses to help quickly return to business as usual;
- £5,000 from the Property Flood Resilience Repair Grant Scheme to help business property owners make their business more resilient to future flooding; and
- £25,000 through the Farming Recovery Land towards repair and reinstatement costs for farmers suffering uninsurable damage to their land.
This help is available through a scheme called the Flood Recovery Framework. This framework is used to help support councils and communities in exceptional circumstances after severe flooding.
The support can be accessed through councils in the eligible areas. The councils will announce additional details on who is eligible and how to apply.
Many of us make resolutions in January to try and reduce work-related stress and improve our wellbeing. But they can quickly fall by the wayside once we get back into the swing of work and running our business.
Are there any simple practical steps you could take to improve your wellbeing and that of your staff in 2024?
- Set boundaries
Technology has brought many gains in productivity and efficiency, but it has also meant that we are more connected to work than ever. Being constantly available can make it difficult to switch off and may lead to feelings of burnout.
Setting boundaries so that work doesn’t invade your home life can give you proper rest and help you to feel more energised. Exactly where those boundaries lie is likely to be unique to you, so the important thing is to decide what is right for you and then communicate that to others.
Why not try:
- Using your status message on Teams, or ‘out of office,’ to show when you are or aren’t available?
- Having separate communication methods – email address or messaging apps – for your work and private life?
- If you work from home, creating a workspace environment where you can shut the door at the end of the day and finish work?
- Scheduling down time and treating that time as important and urgent as any work appointment?
- Stay connected
We can feel that a situation we are going through or an experience we have had is unique to us. However, this is rarely the case. Often there are others in our network, whether professional or personal, who have undergone or are undergoing something similar. Tapping into this resource can help us to find successful coping strategies.
Therefore, rather than isolating and trying to work even harder when under stress, why not try reaching out to others?
Could you regularly take some time out for a coffee or lunch with someone you have not seen for a while? Do you belong to (or could you join) a professional organisation that has networking opportunities?
Building up in-person connections can help you to gain a greater sense of community and a feeling of being connected that will make a huge difference to your wellbeing.
- Give back
Giving not only benefits the recipient, but also has considerable effects on the wellbeing of the giver.
Work can provide many opportunities for giving back. Why not try:
- Offering to help a colleague or business contact with something?
- Making a coffee for colleagues?
- Giving a card or small gift to a colleague who has been through a life event?
- Volunteering to mentor or coach someone, whether in the workplace or via a voluntary role in a membership organisation you belong to?
Caring for wellbeing is a constant balancing act, but setting boundaries that allow you to get proper rest, staying connected with others, and finding opportunities to give back can all help!
Coming into force from 1 January 2024, the Working Time Regulations, as amended by The Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023, introduced reforms that simplify holiday pay and entitlements.
Following Brexit, any European laws that were retained in the UK automatically expired on December 31 unless legislation was brought in to keep them. The Employment Rights Regulations 2023 do just that and are applicable across the UK. As well as reinstating some EU laws, these regulations make several changes to existing laws.
These reforms include changes that affect rates of holiday pay and annual leave. They also cover handling irregular hours and part-year workers, accrual of COVID-19 carryover of leave, and rolled-up holiday pay.
Holiday entitlement
The Regulations define what an irregular hours or part-year worker is and makes changes for how their holiday entitlement for holiday years beginning 1 April 2024 and onwards are accrued.
Employers will need to calculate holiday entitlement for such workers at 12.07% of the hours worked in any pay period. This does not apply to the calculations for regular hours workers.
Holiday pay
The Regulations specify that all full-year workers are legally entitled to 5.6 weeks of paid statutory holiday entitlement per year. These are split into two pots.
- Four weeks – the original EU leave entitlement – must be paid at the employee’s ‘normal’ rate of pay and the regulations now specify that this includes overtime pay, commission and allowances.
- The remaining 1.6 weeks – an addition made by the UK – only have to be paid at the employee’s ‘basic’ rate of pay.
The government has produced guidance containing examples and calculation methods based on the legal minimums set out in the Regulations.
Of course, many workers have contracts that entitle them to holiday that exceeds the statutory minimum. Or the changes may make the standard holiday clauses used in an employer’s employment contract no longer legal. Businesses are therefore encouraged to first check individual employment contracts, and if necessary, seek independent legal advice.
If you need any help with running your payroll, please get in touch with us. We will be very happy to help you!
See the guidance here: https://www.gov.uk/government/publications/simplifying-holiday-entitlement-and-holiday-pay-calculations/holiday-pay-and-entitlement-reforms-from-1-january-2024
With all the changeable weather we have been having recently we hope you have been able to stay dry and warm!
Change is not only confined to the weather, but it is also an inevitable facet of the business landscape. Whether prompted by technological advancements, market fluctuations, or internal restructuring, the ability to manage and navigate change effectively is crucial for sustained success. Businesses that embrace change as an opportunity rather than a threat are better positioned to thrive in today’s dynamic environments.
What can help us to adapt to change successfully?
Understanding the Need for Change:
The first step in managing change is acknowledging the need for it. Recognise the factors driving change – be they evolving consumer preferences, disruptive technologies, or competitive pressures. A thorough understanding of what is causing the change enables businesses to develop a proactive approach that may even be able to control the effects of the change, rather than simply reacting, which often means acting too late.
Effective Communication:
Communication lies at the heart of successful change management. Transparent and open communication help to convey the reasons behind change, its potential impact, and the vision for the path forward. Engage with your employees, stakeholders, and partners, fostering a culture where ideas, concerns, and feedback are valued.
Leadership and Vision:
Strong leadership is pivotal during times of change. Leaders need to articulate a compelling vision that inspires and motivates the workforce. A clear direction provides a sense of purpose and will help guide everyone through the transition so that everyone’s efforts stay aligned with the end goals.
Embrace Flexibility and Adaptability:
Flexibility is key in adapting to change. Businesses must be prepared to pivot, adjust strategies, and adopt new approaches as circumstances evolve. An agile, flexible mindset allows a business to respond quickly to challenges and opportunities.
Empower and Involve Employees:
Involve your employees in the change process. Invite their input, involve them in decision-making, and provide training and skill development opportunities so that they are equipped for what the changes will bring. Empowered employees become advocates of the change you want and will help to drive implementation from within.
Manage Resistance Effectively:
Resistance to change is natural, so it is important to acknowledge concerns and address them sympathetically. Encourage open discussion, providing support where necessary. Offer clarity on how the change will benefit individuals and the business as a whole. If you can address resistance early, you can prevent it from becoming a roadblock.
Evaluate and Learn:
It is crucial to continuously evaluate and learn throughout the change process. Monitor progress, gather feedback, and be willing to make adjustments as necessary. Avoid viewing setbacks as failures; instead see them as an opportunity to learn lessons that will help you in the future.
Celebrate Milestones:
Recognize and celebrate achievements and milestones reached during the change journey. This promotes a sense of accomplishment, boosts morale, and reinforces the positive aspects of change, motivating individuals for future endeavours.
In conclusion, managing change in business is not just about navigating through it, but rather it can be embraced as an opportunity for your business to grow and innovate. Your successfully managing change not only ensures resilience but positions your business for sustained success in an ever-evolving marketplace.
We have useful tools and checklists to help you assess your systems and manage change. Please talk to us about how we can help you to continue making your business a success!
