Environmental consciousness is becoming more and more aligned with business operations, and electric vehicles (EVs) are becoming a popular choice for company cars as a result.
Author Archive: Muhammad Zia
Here’s how you can boost your SME’s efficiency and beat rising costs in 2024
If you’re concerned about how rising costs will impact your SME, you’re not alone.
Payroll tax obligations – Have you got it covered?
If you employ one or more people for paid work, it’s essential that you have a properly managed payroll.
Payroll – Time to update your approach to holidays
There have been several recent changes in the Working Time Regulations introduced by the Government on 1 January 2024 that businesses must comply with.
The Department for Business and Trade (DBT) has released guidance detailing these reforms, which are vital for updating your payroll processes.
These key changes include:
- Clarification of Holiday Entitlement and Pay: The reforms simplify holiday entitlement and pay calculations for irregular hours and part-year workers. This includes introducing the holiday entitlement accrual method and rolled-up holiday pay.
- Revision of COVID-19 Regulations: The removal of the Working Time (Coronavirus) (Amendment) Regulations 2020 impacts the carryover of COVID-19 leave.
- Maintaining Holiday Pay Rates: The current structure of holiday pay, where four weeks are paid at the normal rate and 1.6 weeks at the basic rate, remains, along with the two distinct pots of leave.
- Defining ‘Normal Remuneration’: This is particularly important for calculating statutory annual leave for the four-week period.
Starting 1 April 2024, additional reforms will come into effect:
- A new method for calculating statutory holiday entitlement for irregular hours and part-year workers.
- A system for calculating leave accrual during maternity, family-related leave, or sick leave for these workers.
- The introduction of rolled-up holiday pay as an alternative method for these groups.
In light of these recent and upcoming changes to holiday accrual and pay we recommend adjusting your payroll systems accordingly.
It’s also advisable to stay tuned for further clarifications and updates, especially concerning the definition of part-year workers.
Updating your payroll processes in line with these changes is not just a matter of compliance, but also a step towards more efficient and fair management of your workforce’s holiday entitlements and pay.
To find out more about our dedicated payroll services, please speak to our team.
Working remotely – What are the tax implications?
Working remotely has increased since the Covid pandemic, with 12.7 per cent of employees now working full-time from home in 2023.
Allowable business expenses – simple ways to save money
As a business owner, you are probably aware of some of the expenses that you could claim back on in your yearly Self-Assessment tax return.
VAT deadlines and what businesses should be doing to prepare for them
Businesses must remain compliant with the requirements for reporting and paying VAT, especially with the regular quarterly for VAT under Making Tax Digital.
Rotherham Taylor upholds tradition of generosity with annual donation to Preston homelessness charity
Preston-based accountancy firm Rotherham Taylor Limited continued its annual tradition of supporting a local homelessness centre with essential food and toiletry items.
In December, the firm’s staff gathered the items for The Foxton Centre, a significant contribution they made to the charity.
While the donation coincided with the festive season, its impact extends beyond, supporting the centre’s vital services into the New Year.
The Foxton Centre, established in Avenham in 1969, offers crucial assistance to homeless individuals, vulnerable women, and young people, serving as a key community resource. The contributions from Rotherham Taylor Limited will continue to benefit those in need in Preston.
Chloe Greenbank, a Director at Rotherham Taylor Limited, highlighted the importance of this annual initiative. “Supporting The Foxton Centre each December has become a meaningful tradition for us,” she remarked. “Our team’s dedication to this cause is commendable, and I am thankful for their ongoing support.”
Rotherham Taylor’s commitment to local causes is well-established, with the firm regularly participating in charitable activities and supporting various organisations through the Rotherham Taylor Community Fund.
For 2024, the firm will be planting a tree for each client they onboard in the year as part of its commitment to achieving the Net Zero target by 2030, some twenty years early, and will also be offering its staff to take a day off to volunteer for a charity of their choice.
What SMEs can do in the event of a recession
While the end of 2023 saw inflation slow down, experts have warned that the chances of a recession in the coming months are more likely.Continue reading
Going green – The financial benefits of investing in a cleaner future
As a small business owner, embracing environmentally friendly practices not only supports a sustainable planet but can also unlock significant financial benefits for your business.
It is important to explore the tax reliefs and allowances available to your business when you adopt green operations so that you can navigate and mitigate your environmental tax responsibilities effectively.
Understanding environmental taxes and reliefs
Environmental taxes are designed to encourage businesses to operate more sustainably.
Depending on your business type and size, you may be eligible for certain tax reliefs or exemptions.
These are particularly applicable if your business:
- Consumes significant energy due to its operational nature.
- Is a small enterprise with minimal energy usage.
- Invests in energy-efficient technology.
Proactively engaging in schemes that demonstrate your commitment to efficient operations and reduced environmental impact can also lead to substantial tax savings.
Speak to your accountant if you are unsure if these criteria apply to you.
Navigating the Climate Change Levy (CCL)
The CCL is a tax imposed on the use of electricity, gas, and solid fuels, such as coal.
Typically, businesses in the industrial, commercial, agricultural, and public service sectors are subject to the main rates of CCL, which you will find itemised on your energy bills.
However, there are notable exemptions, including:
- Small-scale energy consumers.
- Domestic energy users.
- Charities engaged in non-commercial activities.
Additionally, certain fuels are exempt under specific conditions, like renewable electricity generation or in certain transport scenarios.
If your business is energy-intensive, you could qualify for significant CCL rate reductions by entering into a climate change agreement with the Environment Agency.
It is advisable to consult with your accountant to determine your eligibility for CCL relief as non-compliance could lead to penalties.
Capital allowances and reliefs
Small businesses can claim capital allowances when investing in energy-efficient or low/zero-carbon technologies, thus reducing taxable income.
In this case, you are entitled to deduct the full cost of qualifying new and unused eco-friendly assets from your pre-tax profits.
These assets include, but are not limited to:
- Electric vehicles.
- Gas refuelling equipment.
- Equipment for use in freeport tax sites.
Understanding and claiming these allowances can significantly decrease your tax liabilities, boosting your financial health.
Embracing a greener path for business success
Failing to adopt green practices can lead to increased tax obligations, such as higher rates of CCL and Carbon Price Support (CPS) for using non-low carbon technologies.
Neglecting available reliefs and allowances, therefore, not only increases operational costs but also affects your competitiveness in an increasingly eco-conscious market.
To discuss environmental taxes and reliefs with a professional tax adviser, please get in touch.
