News
| 31-01-2024
Funding of up to ÂŁ50,000 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
| 08-01-2024
As the crypto asset sector grows, with an annual growth rate predicted to reach around 12 per cent, taxpayers with digital assets need to remain tax compliant. Tax regulations and knowledge have struggled to keep pace with
| 08-01-2024
Making employees feel valued is critical for their morale, engagement, and overall well-being. Often, it's the smaller gestures that have the most significant impact on employees' perceptions of their work
| 02-01-2024
The new year marks the start of new beginnings, so there’s no better time to revisit your personal financial strategy. Drawing up an economic plan with clear, achievable goals can improve your long-term financial health
Download our latest Newsletter here
Get in touch
Funding of up to ÂŁ50,000 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 25
th 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 6
th February 2024 and 28
th 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 ÂŁ6.5 million annual turnover or ÂŁ5 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 ÂŁ30,000, 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 ÂŁ2,500 from the Business Recovery Grant that can be applied for by small-to-medium sized businesses to help quickly return to business as usual;
- ÂŁ5,000 from the Property Flood Resilience Repair Grant Scheme to help business property owners make their business more resilient to future flooding; and
- ÂŁ25,000 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!
As the crypto asset sector grows, with an annual growth rate predicted to reach around 12 per cent, taxpayers with digital assets need to remain tax compliant.
Tax regulations and knowledge have struggled to keep pace with this investment type’s rapid growth, resulting in significant levels of unpaid tax and underreported income.
In a bid to prevent tax avoidance and underpayment by holders of crypto assets, HM Revenue & Customs (HMRC) has taken the lead on a global campaign to combat tax avoidance related to crypto assets – the first of its kind.
Those with crypto assets need to understand how this campaign will work and what they can do to remain compliant.
The Crypto-Asset Reporting Framework (CARF)
CARF is the latest flagship crypto tax transparency programme, spearheaded by the UK and run by the Organisation for Economic Co-operation and Development (OECD).
Among other requirements, it mandates that crypto platforms, such as Coinbase and Gemini, report taxpayer information to HMRC and other European tax authorities.
This is not currently done, which has created significant potential for asset holders to pay less tax than they owe – deliberately or accidentally.
The OECD estimates that tax non-compliance could affect between 55 and 95 per cent of all crypto asset holders. The Government hopes that this will help to recoup millions of pounds of unpaid tax.
I own crypto assets – what do I need to pay?
In the UK, the taxation of crypto assets, such as Bitcoin and Ethereum, has become an important consideration for investors and traders.
HMRC does not recognise cryptocurrency as currency or money, but rather as property, which means it is subject to Capital Gains Tax (CGT).
As a private investor, when you sell, swap, spend, or gift crypto assets and make a profit, it is subject to CGT in the UK, regardless of where the asset is held or traded.
This means that if the value of the crypto assets has increased since you acquired them, you are liable to pay CGT on the gain.
The rate of CGT depends on your marginal tax band and can vary between 10 and 20 per cent.
Gains from crypto assets should be reported on your Self-Assessment tax return. You have an annual CGT allowance, and only gains above this allowance are taxable. Currently, the CGT annual exemption is ÂŁ6,000, but this will be cut in half to ÂŁ3,000 from April 2024.
It is crucial to keep detailed records of all crypto asset transactions, including dates, values, and types of transactions, as this information is needed for your tax return.
However, in some cases, such as mining or crypto trading as a business, profits may be subject to Income Tax rather than CGT. This will depend on the nature and frequency of your activities involving crypto assets.
Add expertise to your portfolio
Crypto assets are rapidly changing and subject to evolving regulations and tax rules.
Their value can cause complex issues because it can be volatile. This can make it hard to know whether you have made any capital gains or taxable income.
You may even be left wondering what to report and how to do it. We can provide the support that you need to stay compliant and benefit from your investment without concerns about a large tax bill or penalty.
For further guidance on your tax liability as a crypto asset owner, please contact us today.
Making employees feel valued is critical for their morale, engagement, and overall well-being.
Often, it’s the smaller gestures that have the most significant impact on employees’ perceptions of their work environment and employers.
What are trivial benefits in kind?
The term ‘trivial benefits in kind’ refers to minor token gifts that employers can offer staff as a token of appreciation. Examples include chocolates, wine, gift vouchers, theatre tickets, or team lunches or dinners.
Under UK tax law, trivial benefits provided by an employer are exempt from income tax and National Insurance Contributions.
This means neither the employee nor the employer must pay tax or National Insurance on these benefits, as long as certain conditions are met. You can also reclaim the VAT on trivial benefits if they meet eligibility criteria.
Eligibility criteria
To be considered a trivial benefit, the gift must:
· Cost £50 or less
· Not be given in cash
· Not be a reward for work or performance
· Not be included in the employee’s contract
Is there a tax-free gift limit?
Beyond the £50 per employee limit, there’s no annual ceiling on trivial gifts for an individual employee throughout the year.
An exception exists for “close” companies, like family businesses controlled by five or fewer people. If the recipient is a director, office holder, or a family member, the exemption limit is ÂŁ300 per tax year.
Parties and events
It is important to note that costs related to staff parties are mostly tax-free if the event is open to all staff.
There is an annual limit of ÂŁ150 (including VAT) per person for these events. Spending even slightly over this makes all expenses from the party or event taxable benefits.
Tax benefits
Trivial benefits are exempt from tax, National Insurance, and HMRC reporting, making them a cost-effective way to show appreciation.
However, trivial benefits provided under salary sacrifice don’t receive a tax exemption.
If a gift is made this way, tax and National Insurance must be paid on these expenses, and the difference between the trivial benefit and the salary sacrifice reported via the individual’s P11D form.
Ready to make the most of trivial benefits in kind?
Trivial benefits in kind are strategic investments in your employees and, by extension, your business.
They offer advantages ranging from improved morale and engagement to tax benefits. If you haven’t considered implementing them yet, now is a great time to start.
For more details or personalised advice on how trivial benefits in kind can benefit your organisation, feel free to contact us today.
The new year marks the start of new beginnings, so there’s no better time to revisit your personal financial strategy. Drawing up an economic plan with clear, achievable goals can improve your long-term financial health and help protect you and your family against external factors.
Whether you’re putting a personal financial plan together for the first time or you want to revisit your strategy, here are a few personal financial planning tips to help you secure your financial future in 2024.
How to approach your personal financial strategy
Look at your current financial situation
Before embarking on your personal financial planning journey, you’ll need to conduct a thorough analysis of your present situation. The better you understand your circumstances, the easier it will be to plan and budget accordingly.
Working out your net worth or pinning down the value of your assets and liabilities can be a little more challenging for those with more complex financial affairs – for example, if you’re a shareholder in a business or own a large investment portfolio.
In this instance, you may need to consult with a professional adviser to gain an accurate understanding of your financial circumstances.
Using cloud accounting software to track your spending can also make it quicker and easier to conduct a financial health check.
Are your books in order?
Staying on top of your books is vital if you want to understand your finances. By keeping detailed, accurate and up-to-date financial information on file, you’ll find it easier to see where your money is going and what you should focus on in the future.
Set your goals for 2024
Once you know where you stand financially, you can start plotting out the year ahead. Establishing clear and achievable financial goals is crucial for guiding your efforts throughout the year.
Perhaps you want to pay off debt, invest in property, put money aside for your children’s education or build up a rainy day fund. Whatever your ambitions, setting measurable, time-bound objectives can make it easier for you to stay on the road to financial success.
Your budget
A crucial piece of the goal-setting puzzle is your personal budget. Your budget should align with your current circumstances and financial goals. Think about what you’re spending at the moment, how much you’re earning and how much money you need to save to meet your goals.
If you want everything to go to plan, you’ll need to create a realistic personal budget that aligns with both your current circumstances and financial goals. Look at your past financial data to understand how you usually spend money and identify areas to cut down on.
Your tax strategy
Your tax strategy is an important part of your financial plan. By minimising your total liabilities, you can retain more of your hard-earned income to meet your personal goals.
Work with an accountant to devise a tax-efficient plan that ensures you pay the right amount of tax – no more, no less. In the short term, this could include maximising reliefs on your self-assessment tax returns or timing the sale of property correctly to defer your capital gains tax payments.
More long-term tax strategies could include setting up a trust to protect assets or an estate plan that helps you pass your wealth onto the next generation.
Business owners
Entrepreneurs should consider the tax treatment of their business income. Since companies are often taxed at a lower rate than self-employed individuals, incorporating your business may help boost your personal income in certain circumstances.
If you’re the director of a limited company, for example, paying yourself a combination of salary and dividends can help you minimise your personal tax bill.
Your accountant can offer expert advice on these matters, ensuring that you structure your pay in the most tax-efficient way possible.
Important questions to ask yourself
Do you have an emergency fund?
Unforeseen circumstances can disrupt even the best-laid plans. If you fall on hard times, an emergency fund acts as a financial safety net.
The exact amount you’ll need to save will depend on your unique circumstances, but you should aim to put enough money aside to cover a few months’ worth of living expenses. If you can afford to build up a fund, this can save you a lot of stress in the long run.
Do you have any outstanding debt?
If you have any outstanding debts, addressing them should be a priority. The longer you leave bills unpaid, the more interest you’ll accrue.
To create a repayment strategy that will help you to pay off your existing debts, evaluate and organise them based on their urgency and interest rates.
Do you have enough income to achieve your goals?
Personal financial planning isn’t just about scrimping and saving; it’s also about ensuring you have the income you need to achieve your short-term and long-term goals.
In some cases, it may help to explore opportunities to boost your income, such as taking steps to grow your business or expand your investment portfolio.
Although no investment is entirely without risk, diversifying your income streams can help you boost your personal wealth while safeguarding you against financial pitfalls.
Getting your personal financial plan right
The best financial strategies evolve alongside your circumstances and goals. Regularly reviewing your plan ensures it stays relevant and protects your finances as much as possible.
However, constantly adjusting your strategy can be time-consuming and difficult to get right. If you want to get the most out of your plan, you should consider working with finance professionals.
As accountants, we can use our expertise to draw up a cost-effective strategy that helps you achieve your goals and strengthens your personal finances. We can also offer specialist personal tax advice on how to minimise your tax bill so you can retain more of your hard-earned income.
If your circumstances change or new legislation affects your strategy, we’ll help adjust your budget and tax plan accordingly to give you the best chance of success.
With our expertise by your side, you’ll be able to navigate 2024 with confidence and build a stronger, more secure financial future.
Get in touch to discuss your personal financial strategy for 2024.
