Author Archive: Muhammad Zia

Revised Brexit timetable to give businesses “more time to adjust”

A revised Brexit timetable will give businesses “more time to adjust” to new trading processes, it has been suggested.

The new schedule comes after concerns that firms are now focusing on recovery from the Coronavirus pandemic, rather than new customs declarations and controls.

Here’s what you need to know.

Full customs declarations and controls to be introduced in January 2022 as planned

As previously announced, full customs declarations and controls will come into force on 1 January 2022.

The option to use the deferred declaration scheme – including submitting supplementary declarations up to six months after the goods have been imported – will be available until the end of the year.

Pre-notification of Sanitary and Phytosanitary (SPS) goods delayed until January 2022

The requirements for pre-notification of Sanitary and Phytosanitary (SPS) goods – set to be introduced from 1 October 2021 – will now come into force on 1 January 2022.

SPS goods include live animals, products of animal origin (POAO), high-risk food not of animal origin, plants and plant products, and ISPM 15-compliant wood packaging material.

If you are moving SPS goods from Great Britain to Northern Ireland from 1 January 2022, you must pre-notify the consignment by creating a Common Health Entry Document (CHED).

Export Health Certificates requirements delayed until July 2022

Requirements for Export Health Certificates (EHC) will now come into force on 1 July 2022, rather than 1 October 2021.

An EHC is an official document that confirms your export meets the health requirements of the destination country.

From July 2022, you must apply for an EHC if you’re exporting or moving live animals or animal products from Great Britain to, or through, the EU, non-EU countries, or Northern Ireland.

Phytosanitary Certificates and physical checks delayed until July 2022

Phytosanitary Certificates and physical checks on SPS goods at Border Control Posts will now be introduced on 1 July 2022. They were due to be introduced on 01 January 2022.

Phytosanitary certificates and documents issued in the country of origin prove that the consignment is bio-secure.

Safety and security declarations now not required until 1 July 2022

Safety and Security declarations on imports – which were due to be introduced on 1 January 2022 -will now be required from 1 July 2022.

New timetable allows businesses to “focus on their recovery”

Commenting on the changes, Minister of State at the Cabinet Office, Lord Frost, said: “We want businesses to focus on their recovery from the pandemic rather than have to deal with new requirements at the border, which is why we’ve set out a pragmatic new timetable for introducing full border controls.

“Businesses will now have more time to prepare for these controls which will be phased in throughout 2022.

“The Government remains on track to deliver the new systems, infrastructure and resourcing required.”

Get advice today

For help and advice with related matters, please get in touch with our team today.

Employment: Brexit continues to disrupt job market

Coronavirus disruption and Brexit continues to disrupt the job market despite record numbers of staff returning from furlough, the latest statistics have revealed.

If you are an employer, here’s what you need to know.

Employment remains below pre-pandemic levels

Office for National Statistics (ONS) figures show that the number of payroll employees increased by 182,000 to 28.9 million in July 2021 – the latest data available.

But this remains 201,000 below pre-coronavirus pandemic levels.

Job vacancies also increased to a record high of 953,000 in July, with early estimates for September suggesting that vacancies now top one million for the “first time”.

Commenting on the figures, Suren Thiru, head of economics at the British Chambers of Commerce (BCC), said: “Although the changes to self-isolation rules will help, with many firms facing a more deep-rooted squeeze on labour supply from the impact of COVID and Brexit, staff shortages may persistently weigh on economic activity.”

Number of EU nationals seeking work in the UK falls

The number of EU citizens searching for work in Britain has also fallen by 36 per cent since Brexit.

The figures, published by online jobs board Indeed, suggest that the hospitality, care, and warehouse sectors have been hit the hardest, recording declines of up to 41 per cent.

Around 1.3 million non-UK workers are estimated to have left the UK since late 2019, meanwhile.

Indeed said tough post-Brexit immigration rules are having a greater impact on recruitment than the coronavirus pandemic.

“Lower-paid roles are not receiving the same attention from foreign workers as they did only two years ago. It means domestic workers may be required to fill the gaps,” said Jack Kennedy, a UK economist at Indeed.

“However, with many sectors, including hospitality, already struggling to recruit all the staff they need, higher salaries may be required to attract UK workers to fill those roles.”

Job postings with vaccination requirements “on the rise”

The proportion of job postings per million that require being vaccinated against Covid-19 rose by 34 per cent in August compared to the previous month, figures reveal.

Jobs postings that require vaccinations but don’t specifically mention coronavirus were also up 90 per cent compared to July.

Indeed Economist AnnElizabeth Konkel suggests that employers may be trying to “hedge against the risk of having a sick workforce” in turbulent times.

“Even if you are a 100 per cent remote software engineer, at some point you’re probably going to go to a conference or an offsite retreat or meet your manager for coffee,” she warned.

Rise in “urgent job postings”

According to Indeed, the proportion of job postings including the terms “hiring urgently,” “urgent hire,” “immediate start,” “urgent vacancy” or “start today” increased from 1.6 per cent in January to 2.3 per cent last month. The adverts were primarily posted by employers in sectors such as loading and stocking, food preparation and service, and hospitality and tourism.

The job site said employers may need to consider additional hiring incentives to attract job seekers, such as a sign-on bonus or flexible working.

Driver crisis – the wider impact

The media has been awash with news of goods not hitting the shelves or reaching manufacturers due to a driver crisis.

Estimates suggest that the nation needs an additional 80,000 – 100,000 HGV drivers on the road, and yet many in the haulage industry are reporting difficulties recruiting existing drivers, partly due to many EU citizens returning home.

However, some 60,000 licensed HGV drivers in the UK are thought to be working in other industries and despite significant wage rises and incentives from businesses, unions say many no longer have a desire to work in logistics.

The shortage of drivers is having an impact on the price of goods and materials, as haulage firms pass on the costs of recruitment and retention to customers, who in turn are increasing the price consumers pay for their products and services.

Get advice today

For help and advice with related matters, please get in touch with our team today.

Frustrated SMEs turning to unsecured loans to grow businesses

As the UK emerges from the economic crisis caused by the pandemic there are many positive indicators of financial recovery, such as a fall in COVID-induced public spending, a rise in job vacancies and a decline in unemployment, all of which are encouraging businesses to grow.

The economic indicators are good news for SMEs with people spending on home improvements and leisure, as cash saved during the lockdown flows back into the economy.

The SME market makes up over 95 per cent of UK businesses and they are vitally important to the UK economy.

Despite earlier optimism about growing their businesses, many have felt frustration in their ability to obtain business loans from traditional banks and finance firms.

Now a new report suggests that many who are struggling with day-to-day cash flow and the ability to make quick decisions on finances are turning to unsecured loans to take their business forward.

No security is needed for an unsecured business loan, which means the borrower does not have to put assets at risk to secure the funding and allowing for quicker decisions to be made.

Unsecured business loans allow for greater flexibility and give business owners the opportunity to quickly fund their company with the minimum of fuss.

The list of businesses who can apply includes self-employed individuals, sole traders, partnership firms and private limited companies engaged in the business of trading, manufacturing and services.

The report by finance firm iwoca suggested they are now turning to credit brokers, with more than a third applying for loans over a four-week period in May.

Over half of respondents reported that the most commonly requested unsecured loan amount they’d applied for on behalf of their clients was under £50,000, with around 17 per cent requesting £25,000 or less.

Link: iwoca SME Expert Index find 1 in 3 brokers see rising demand for unsecured finance

Beware of rising house prices increasing Inheritance Tax liability

While rising property values may seem like good news, as prices go through the roof it could land you with a hefty Inheritance Tax (IHT) bill.

The latest data from HM Revenue & Customs (HMRC) show that the average IHT tax bill stood at nearly £210,000.

IHT is a charge on the value of the estate of someone who has died and includes all their assets, from property to investments and vehicles.

The current threshold stands at £325,000, below which you do not pay anything except in certain circumstances.

A 40 per cent tax charge then applies to anything over that value if no planning is undertaken, such as gifting to charity.

The £325,000 threshold might be even higher if you gift your home to a direct descendant such as your children or grandchildren, where a further residence nil-rate allowance of £175,000 takes the figures to £500,000 before tax, or up to £1 million if you are a surviving spouse or civil partner.

As property values increase, people who are leaving a home in an estate could find they are moving into the IHT bracket unexpectedly.

The new figures from HMRC, which are taken from the 2018/2019 tax year, show that the average IHT bill rose by six per cent compared to the previous year.

The figures indicate that the average IHT bill for that year was £209,502, a significant rise from the previous year, which averaged out at £197,521.

The sudden rise in house prices may mean that more individuals face an IHT bill if they leave property or other assets to beneficiaries – despite the increase to the residence nil-rate threshold.

Government data shows that revenue from IHT receipts from April to May 2021 were £966 million – £340 million higher than the same period last year, partly due to the sharp increase in property prices.

Link: Average IHT bill now above £200k