21stApr
News article

CBI calls for extension of Kickstart Scheme as jobs market remains subdued

The Confederation of British Industry (CBI) has urged the government to extend the Kickstart Scheme to help young people who are bearing the brunt of the subdued job market.

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The Confederation of British Industry (CBI) has urged the government to extend the Kickstart Scheme to help young people who are bearing the brunt of the subdued job market.

The Kickstart Scheme was launched in September and promised to pay the wages and associated employment costs for businesses taking on 16 to 24-year-olds in receipt of Universal Credit for six-month contract periods.

The UK unemployment rate fell to 4.9% in the three months to February, according to the latest figures from the Office for National Statistics (ONS). However, 56,000 workers were cut from company payrolls in March, which represents the first monthly drop since last November.

Around 813,000 workers have been cut from company payrolls in the last 12 months as the pandemic adversely affected the jobs market. The ONS said young people continued to bear the brunt of the crisis amid job losses in sectors such as hospitality and retail.

People under 25 accounted for more than half of the jobs lost in the year to March, it added.

Matthew Percival, Director of People and Skills at the CBI, said: 'Evidence continues to mount that it is young people's jobs that have been hardest hit by lockdowns. Support for jobs and training will be vital to making the UK's economic recovery inclusive.

'Government should confirm that the extra lockdown at the beginning of the year means that the Kickstart Scheme will remain open for longer to allow businesses the time to deliver opportunities for young people.'

20thApr
News article

Cyber-attacks on the rise for businesses

The proportion of businesses targeted by cyber criminals in the past year increased from 38% to 43%, according to the insurer Hiscox.

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The proportion of businesses targeted by cyber criminals in the past year increased from 38% to 43%, according to the insurer Hiscox.

The Hiscox Cyber Readiness Report 2021 showed that over a quarter of those business targeted have experienced five attacks or more. These cyber-attacks are pushing many firms to the brink, with one in six businesses attacked saying the financial impact materially threatened the company's future.

The report surveyed a representative sample of organisations in the US, UK, Belgium, France, Germany, Spain, the Netherlands and Ireland.

It found that around one in every six firms attacked was targeted with ransomware and more than half paid the criminals. In the US, the proportion paying a ransom was 71%. Phishing emails were the main way in for the extortionists, with small companies particularly likely to succumb.

However, the report also showed that firms are responding as spending per business on cyber security has more than doubled in the last two years.

Gareth Wharton, CEO of Hiscox Cyber, commented: 'One of the big takeaways of this report is the worrying range of financial impacts that cyber-attacks can have. The risk of inaction is that the next attack could be enough to sink the business.

'Cyber is a complex problem but that does not mean it is unmanageable. With good risk management and appropriate cyber insurance, firms can contain the impact of an attack and limit the damage.'

19thApr
News article

New 95% mortgage scheme launched

A new government-backed mortgage scheme to help people with 5% deposits get on to the housing ladder is available to lenders from 19 April 2021.

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A new government-backed mortgage scheme to help people with 5% deposits get on to the housing ladder is available to lenders from 19 April 2021.

First announced at the 2021 Budget, the scheme will help first-time buyers or current homeowners secure a mortgage with just a 5% deposit to buy a house worth up to £600,000. The government says this will provide 'an affordable route to homeownership for aspiring homeowners'.

The government will offer lenders the guarantee they need to provide mortgages that cover the other 95%, subject to the usual affordability checks.

The scheme is now available from lenders on high streets across the country, with Lloyds, Santander, Barclays, HSBC and NatWest launching mortgages under the scheme today and Virgin Money following next month.

Miguel Sard, Managing Director of Home Buying and Ownership at NatWest, said: 'We welcome the government's new mortgage guarantee scheme to give further support to those with smaller deposits. For those customers, particularly younger or first-time buyers, saving up for a big deposit can often be difficult, and we know people in these groups are some of the hardest hit by the effects of the pandemic.

'A government-backed scheme will help segments of the market for whom homeownership has felt far out of reach in recent months.'

16thApr
News article

Recent changes to IR35 'undermine the self-employed', says IPSE

The Association of Independent Professionals and the Self-Employed (IPSE) has stated that the recent changes to the rules relating to off-payroll workers, commonly known as IR35, 'undermine the self-employed at the worst possible time'.

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The Association of Independent Professionals and the Self-Employed (IPSE) has stated that the recent changes to the rules relating to off-payroll workers, commonly known as IR35, 'undermine the self-employed at the worst possible time'.

The changes to IR35 took effect on 6 April 2021, and shift responsibility for making the decision on employment status on each contract away from contractors and personal service companies (PSCs) and on to the client receiving their services. This has already been done in the public sector.

Research carried out by IPSE found that 50% of contractors planned to stop contracting in the UK once the changes took effect unless they could secure contracts unaffected by them. 24% are planning to seek contracts abroad; 12% plan to stop working altogether; 17% will seek an employed role; and 11% are looking to retire within the next year.

Additionally, 24% of contractors said their clients are planning to blanket-assess all their contractors as 'inside IR35'.

'The changes to IR35 would do serious harm to the self-employed sector at the best of times, but now they are adding drastic, unnecessary damage to the financial carnage of the pandemic – undermining the UK's contractors at the worst possible time,' said Andy Chamberlain, Director of Policy at IPSE.

'The crucial problem with IR35 is still its complexity: in fact, it is so complex that HMRC has lost the majority of tribunals on its own legislation. And there remains serious doubts about the CEST tool HMRC designed to supposedly cut through this complexity.'

15thApr
News article

FSB urges government to provide greater support for UK exports

The Federation of Small Businesses (FSB) has urged the government to act in order to support small businesses exporting to the EU.

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The Federation of Small Businesses (FSB) has urged the government to act in order to support small businesses exporting to the EU.

The latest figures published by the Office for National Statistics (ONS) showed that UK GDP and total exports fell by 7.8% and 10.3% respectively in February 2021 when compared to February 2020.

The FSB found that UK exports have 'tumbled' since the end of the Brexit transition period, and that a fifth of small exporters have halted sales to the EU. The business group is calling for further action to be taken to help 'alleviate the new admin facing exporters'.

Mike Cherry, National Chairman of the FSB, said: 'If you'd asked small business owners at this time last year about COVID-linked disruption they wouldn't have dreamed it would be continuing so far into the future.

'These stark figures are a reminder that this lockdown needs to be the last: better to unlock more slowly than to rush and have a repeat of the damaging chaos suffered in the run-up to last year's critical festive trading season.

'The government should now turn to its build back better agenda: cutting the non-wage costs of employment to spur hiring, ending a debilitating late payment crisis that has worsened through lockdowns and taking innovative approaches to emergency debt to realise meaningful economic value.'

14thApr
News article

HMRC contacting claimants for fourth self-employed grant

HMRC has confirmed it will be contacting potential claimants for the fourth Self-employment Income Support Scheme (SEISS) grant this month.

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HMRC has confirmed it will be contacting potential claimants for the fourth Self-employment Income Support Scheme (SEISS) grant this month.

The tax authority will send communications by email, letter or within the online service to individuals based on their tax returns. The fourth grant will be 80% of three months' average trading profits, to be claimed from late April 2021.

Payment will be in a single instalment capped at £7,500 in total and will cover the period February to April 2021. The scheme has been extended to those who have filed a 2019/20 self assessment tax return prior to 3 March 2021.

Claimants must have been impacted by reduced activity, capacity and demand, or have been trading previously and temporarily unable to do so. The online service to claim the fourth grant will be available from late April 2021. All claims must be made on or before 1 June 2021.

There is no requirement that an earlier SEISS grant has been claimed to be able to claim the fourth grant. Applications for the fourth grant can be made here.

If you require help with an application or need a compliance review on your eligibility, please contact us.

13thApr
News article

UK economy improved in February despite lockdown

The UK economy returned to modest growth in February despite the country being under lockdown but remains sharply below its pre-pandemic peak, according to the Office for National Statistics (ONS).

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The UK economy returned to modest growth in February despite the country being under lockdown but remains sharply below its pre-pandemic peak, according to the Office for National Statistics (ONS).

The latest data released by ONS shows that UK GDP rose by 0.4% in February, having shrunk in January.

Growth was led by the production sector and construction, with the large services sector only expanding modestly due to pandemic restrictions.

The expansion fell short of forecasts of around 0.6%, which leaves the economy around 7.8% below the levels seen in February 2020.

However, imports from the EU, which also saw an unprecedented decline at the start of the year, recovered around a fifth of the levels lost.

An ONS spokesperson said: 'The economy showed some improvement in February after the large falls seen at the start of the year but remains around 8% below its pre-pandemic level.

'Exports to the EU recovered significantly from their January fall, though still remain below 2020 levels. However, imports from the EU are yet to significantly rebound, with a number of issues hampering trade.'

12thApr
News article

UK cuts electric vehicle grants by £500

The government has cut the Plug-in Car Grant and Van & Truck Grant by £500 and lowered the pricing cap on qualifying electric vehicles.

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The government has cut the Plug-in Car Grant and Van & Truck Grant by £500 and lowered the pricing cap on qualifying electric vehicles.

The Department for Transport will now provide grants of up to £2,500 for electric vehicles on cars priced under £35,000. This is a reduction from the current £3,000 available for vehicles costing up to £50,000.

This will mean the funding will last longer and be available to more drivers, the government statement said. Grants will no longer be available for higher priced vehicles, typically bought by drivers who can afford to switch without a subsidy from taxpayers.

The number of electric car models priced under £35,000 has increased by almost 50% since 2019 and more than half the models currently on the market will still be eligible for the grant.

However, Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), said: 'The decision to slash the Plug-in Car Grant and Van & Truck Grant is the wrong move at the wrong time. New battery electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer.'

'This sends the wrong message to the consumer, especially private customers, and to an industry challenged to meet the government's ambition to be a world leader in the transition to zero emission mobility.'

9thApr
News article

New claims required for home working tax relief

Employees who are working from home will need to make new claims for tax relief for the 2021/22 tax year, HMRC has stated.

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Employees who are working from home will need to make new claims for tax relief for the 2021/22 tax year, HMRC has stated.

From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

HMRC has also confirmed that the £6 per week payment is available in full, even if an employee splits their time between home and the office.

The allowance is to cover tax-deductible additional costs that employees who are required to work from home have incurred, such as heating and lighting the workroom, and business telephone calls.

Last year an online portal was launched that allows employees to claim tax relief for working at home. The portal was set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer during the coronavirus (COVID-19) pandemic.

The portal can be found at www.gov.uk/tax-relief-for-employees/working-at-home.

8thApr
News article

Business confidence boosted by plans to re-open UK economy

A survey carried out by the Institute of Directors (IoD) has revealed that confidence amongst UK businesses has been boosted by plans to re-open the UK economy.

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A survey carried out by the Institute of Directors (IoD) has revealed that confidence amongst UK businesses has been boosted by plans to re-open the UK economy.

The IoD's latest confidence tracker found that business leaders' net optimism in the outlook for their organisations rose from +36 to +41. From 12 April, non-essential businesses, personal care businesses, indoor leisure facilities and gyms, amongst other firms, are permitted to re-open following the latest lockdown in England. Different rules apply in Scotland, Wales and Northern Ireland.

62% of company directors polled said the recent Budget had helped improve prospects for economic recovery.

However, the survey also found that adjusting to new trading terms with the EU is having a negative impact on business.

Commenting on the survey, Tej Parikh, Chief Economist at the IoD, said: 'The roadmap to re-open the economy, the successful vaccine rollout and the Budget have all buoyed directors' confidence in the first quarter.

'Extensions to furlough and other reliefs in the Budget have staved off fears of an impending cliff edge in support measures. As the roadmap progresses, firms can now rescale over the spring and summer months with the cushion of the government's economic package still beneath them.'