The move by the Government to make pavement licences permanent presents an opportunity for the hard-pressed hospitality industry.
Author Archive: Muhammad Zia
Enterprise investment rebounds strongly after being hit by pandemic
There has been a fall in investment of around 12 per cent in the Enterprise Investment Scheme (EIS), largely caused by the effects of the pandemic.
Do you need a Will to administer an estate?
The period after a loved one has died is very difficult and can be exacerbated by not knowing the requirements for handling the estate.
After navigating the immediate steps that must be taken after the death of a loved one, which was covered in our article last month, it is time to consider how the estate will be administered.
To move forward with this, it is necessary to locate the Will (if there is one) to divide the estate in line with the deceased’s wishes.
The Will usually names an Executor to handle the duty of administrating the estate. This could be a sole Executor, or multiple people may have been named to carry out the duties jointly.
At this stage, it is important to check the validity of the Will which includes ensuring that the Will is the latest version and is in writing. The Will should be signed and dated by the person who made it, as well as being witnessed by at least two adults (these witnesses should not be beneficiaries).
If there is not a Will in place, the estate can be divided by an individual who takes on the role of Administrator, who is often next of kin.
Ahead of obtaining the relevant approval to administer the estate, it is necessary to value the estate, which includes valuing all assets (including property, savings, and possessions), along with any debts that need to be paid.
Gifts given within seven years of the individual’s death should also be accounted for in the valuation process.
If an Administrator has been selected, they will need to apply for a Grant of Letters of Administration to continue with the process of administering the estate.
At Rotherham Taylor, we can support you throughout the probate process, to ease the stress of the situation and provide guidance.
Do you require support relating to probate? Contact our experts today.
Every business has goals, but how can you achieve them?
Without being motivated by business goals, it could be easy for the business to become stagnant.
Expansion of the Trust Register – What you need to know
Since 6 October 2020, new rules were introduced which extend the scope of the trust register meaning that more trusts will need to register with HM Revenue & Customs.
The trust register was introduced five years ago to make the beneficial ownership of assets held in trust more transparent.
While many trusts have had to sign up using the TRS already, the remit of the trust register is expanding to include a greater number, and type, of trusts than ever before.
What changes are being made to the Trust Register?
Since October 2020 the requirement to register using the TRS will apply not only to trusts with a tax liability but to all trusts.
This includes trusts set up many years ago, which may have been forgotten about or left dormant, but which remain extant.
The deadline for registration of non-taxable trusts has already been extended from 10 March 2022 to 1 September 2022, so time is running out!
Will your trust need to register?
If you operate a trust the answer is likely to be yes. Under the changes, only a limited number of exemptions exist.
Some other less common types of express trusts that are set up for particular purposes are also excluded from registration unless they are liable for tax.
Be aware that this change to the rules means that for the first time some offshore trusts will also need to be registered.
How do I register using the Trust Registration Service?
To comply with the registration requirements, trustees will need to input details of the settlor, trustees and beneficiaries into an online portal.
At a minimum, trustees will need to confirm annually that there have been no changes and notify via the TRS of any changes within 90 days.
Some trusts may have already completed a 41G form containing some of this information. However, HMRC has confirmed that this did not collect sufficient evidence to meet the requirements under the new rules.
Therefore, those trusts which registered separately with HMRC, must register and resubmit information via the TRS.
HMRC strongly recommends that trustees familiarise themselves with the TRS system and obtain the information required to register in advance of the deadline in September.
Need help with trust registration? Speak to our team at Rotherham Taylor Accountants
Recovery in exports, but uncertain outlook for post-Brexit UK, says survey
A recovery in UK exports reported in February by The Office of National Statistics (ONS) has been short-lived, according to a new survey.
It comes as figures from Germany suggest post-Brexit trade between the two countries has dropped sharply.
German-British Chamber of Industry and Commerce members cited logistical problems related to Brexit as the biggest concern in a 2022 business outlook survey.
The latest Exporter Monitor by Coriolis Technologies and the Institute of Export & International Trade (IOE&IT) data also suggest that the number of exporters in the UK fell in April 2022 by 3.1 per cent.
The survey reveals that a total of 61,915 businesses exported in April 2022, with a combined turnover of £4,857,689,565 and 13,302,762 employees.
At the same time, the number of employees working for exporting firms declined, by nearly six per cent, while exporter revenues dropped by nearly four per cent compared to March 2022.
Outlook for trade looks difficult
The outlook for the coming months looks difficult for UK exporters, especially given the current geopolitical situation.
The survey suggests that there could be a mild uptick during May, but the June and July forecasts show that exporter counts will flat line at best. At worst, any May growth will be short-lived.
The Financial Times has also reported that UK trade with Germany has dropped sharply since 2016, lagging behind overall import and export levels in both countries
Data from Destatis, the German office for national statistics, revealed that German exports to the UK fell 3.9 per cent in March compared with February and were down 0.3 per cent on March 2021.
Compared with March 2019, exports to Britain were down 27 per cent, even though Germany’s overall exports grew by 16 per cent, the report said.
Is this because of leaving the single market?
The figures reflect the gradual decoupling of the UK manufacturing economy from the EU single market, said Ulrich Hoppe, Director-General of the German chamber.
“From a German perspective, the UK is to some extent being taken out of EU supply chains . . . because it has become more complex and expensive [to trade with UK] and that has an effect on bilateral trade,” he said.
The UK fell to the bottom of Germany’s top 10 trading partners for both exports and imports, and dropped to 13th place as a source of German imports in 2021.
Mixed confidence levels for UK businesses
Half of the companies surveyed were positive or very positive about their current and expected future performance in the UK, with half planning to increase their investment and to recruit more staff.
However, more respondents expect the UK economy to continue to ‘cool’ in the coming 12 months: 38 per cent expect a worsening performance and only 23 per cent expect it to perform better.
Can my business pay for my garden office?
When it comes to purchasing and expensing a garden office, you may be wondering if your company can cover the costs.
Whilst this is possible, there are the following caveats and issues to contend with that you should keep in mind.
Make sure you are making the correct PAYE payments to HMRC
HM Revenue & Customs (HMRC) is issuing fresh warnings to employers to ensure their payment reference numbers are correct so that payments are recognised.
Each payment reference number relates to a specific employer and covers a particular accounting period.
HMRC uses these reference numbers to allocate payments and to help process taxes related to PAYE payments as quickly as possible.
The tax authority has said that the use of the incorrect PAYE reference number could result in it issuing penalties and charges even if an employer has paid on time.
To complicate matters further, online banking services may also default to a previous payment reference, creating additional confusion, so employers must check this is right every time a payment is made to HMRC.
How to check if the payment reference number is correct?
Businesses need to make sure that they use the correct Accounts Office reference, which can be found on:
- The letter HMRC sent when they first registered as an employer
- The front of their payment booklet
- The letter from HMRC that replaced the booklet
- Their Business Tax Account if they’ve already added Employer PAYE enrolment to it.
Where an employer is not paying for the current period, they need to add four additional characters to the end of the reference number that indicates the year and the month or quarter the payment is for.
Each tax period has a different payment reference number, so it’s important to make separate payments for each period.
Ensuring you use the correct reference can be complicated. HMRC wants to make sure that employers get this right and avoid penalties, which is why it is encouraging businesses to use its ‘Pay now’ tool on GOV.UK to find the right reference number to use each time.
If this is a further admin burden you don’t need when you are trying to run a business, get in touch with us today to find out how we can take payroll headaches off your plate.
Could Government-backed business loans become permanent?
Throughout the pandemic and into the current recovery period, the Government has offered a number of loans to help businesses survive and invest for their future.
However, only the Recovery Loan Scheme remains open, and this is due to end on 30 June, with no replacement taking its place.
Despite the popularity and value of these loan schemes, there are concerns that, without them, small businesses will struggle to access the finance they need.
However, it is understood that the Treasury is now in talks with the banking sector about making Government-backed loans to SMEs permanent to help businesses grow.
According to an article in the Financial Times, the loans could mirror previous Covid financial support schemes, including the use of Government backing to give banks the confidence to loan to more businesses.
A source close to the ongoing talks told the Financial Times that the focus of any future funding would be on growth, rather than survival – as had been the case with the previous loan schemes.
Questions are now being asked about the level of support from the Treasury, whether personal guarantees would be needed, and what sort of companies should be eligible.
It is hoped that additional details about new loan schemes could be made public in the coming months, although concern remains about the abuse of COVID financial support measures after the Department for Business, Energy and Industrial Strategy revealed that £4.9 billion could be unrecoverable from the £47.4 billion Bounce Back Loan scheme.
Until then, the current Recovery Loan Scheme, which guarantees 80 per cent of a bank loan up to £10 million remains open until the end of June to support those in need.
Already more than £3 billion has been lent by British banks under this scheme, according to a senior industry executive speaking in the same Financial Times article.
Working from home tax relief continues, but fewer employees likely to be eligible this year
HM Revenue & Customs (HMRC) has retained its online portal for claiming working from home tax relief for the 2022/23 tax year.
But, while the rules and value of the relief remain unchanged, unless there are any further lockdowns this year far fewer people are likely to be able to claim.
That is because only people instructed by their employers to work from home some or all the time can make a claim. The rules once again require that costs must have increased as a result of the arrangement.
With most hybrid workers free to work in the office if they wish, most people in this situation will not be eligible for the relief.
Relief worth £6 a week can be claimed through the online portal without needing to provide evidence of increased expenses. Taxpayers benefit according to the rate at which they pay income tax. A basic rate taxpayer will save 20 per cent of £6 a week (£1.20).
If you have been instructed to work from home and have incurred increased costs as result, you can check your eligibility and claim here.
