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Cyber security for the legal profession
| 29-10-2024
Law practices hold sensitive information and can often be the target of cyber attacks. The National Cyber Security Centre (NCSC) has published some specific cyber security tips to help barristers, solicitors and legal
New government grants to boost research on AI risks
| 23-10-2024
Researchers in the UK are being offered new funding opportunities to explore ways of making society more resilient to the risks posed by Artificial Intelligence (AI). These risks include emerging threats
ÂŁ63 billion in new UK investments set to create 38,000 jobs
| 23-10-2024
At the International Investment Summit, the UK government announced nearly ÂŁ63 billion in new investments, which are expected to create 38,000 jobs. These investments, which span
Employment Rights Bill 2024
| 15-10-2024
The government has published the Employment Rights Bill, which is intended help deliver economic security and growth to businesses, workers and communities across the UK. The bill will bring forward 28 individual employment reforms
Is your website compliant with cookie laws?
| 15-10-2024
If you run a business with a website, you’ve likely seen those cookie consent banners asking visitors whether they’d like to accept or reject cookies. But what if your website is not giving visitors a fair and informed choice
Why business owners should start using KPIs to drive success
| 15-10-2024
As a small business owner, it’s easy to get caught up in the day-to-day operations and miss the bigger picture. You might rely on gut feelings or a quick glance at
Have a Child Trust Fund? Time to check if you can claim your savings!
| 07-10-2024
If you, or your child, was born between 1 September 2002 and 2 January 2011, there could be a savings account with your or their name on it – literally!
New apprenticeship reforms: What they mean for your business
| 07-10-2024
The government has announced some reforms to the apprenticeship system in England, which could bring some exciting opportunities for business owners.
HMRC reform: digital transformation and closing the tax gap
| 07-10-2024
In line with the e-invoicing initiative we reported on elsewhere, the Chancellor also outlined broader reforms to modernise HMRC through a Digital
Chancellor pushes for e-invoicing: What you need to know
| 07-10-2024
The Chancellor unveiled a series of announcements last week that could have implications for UK businesses. One of the most relevant for business owners was the government's push for electronic invoicing (e-invoicing).
Chancellor backs new taskforce to support female entrepreneurs
| 30-09-2024
The Chancellor of the Exchequer, Rachel Reeves, has pledged her support to the Invest in Women Taskforce, a new initiative aimed at increasing funding for female-founded businesses.
Check your National Insurance record: Are you missing out on your full State Pension?
| 30-09-2024
HM Revenue and Customs (HMRC) has recently reminded people to check and make sure they are not missing out on valuable State
New Labour Market Advisory Board: What it means for your business
| 16-09-2024
On Monday, 9th September, the newly formed Labour Market Advisory Board, appointed by Work and Pensions Secretary Liz Kendall MP, had its first meeting.
Are you National Minimum Wage compliant?
| 16-09-2024
As HMRC intensifies its crackdown on National Minimum Wage (NMW) noncompliance, it’s vital to make sure you don’t fall foul of NMW laws. Compliance can have
Companies House online services to move to GOV.UK One Login
| 09-09-2024
Last week, Companies House confirmed that their online services will move to the GOV.UK One Login beginning from autumn 2024. The GOV.UK One Login
Government crackdown on illegal employment: What business owners need to know
| 02-09-2024
Last month, the Home Secretary, Yvette Cooper, announced a significant government crackdown on employers
October budget to be “painful”
| 02-09-2024
The Prime Minister, Sir Keir Starmer, speaking from Downing Street last Tuesday, has said that the budget in October will be “painful” and the government would be making “big asks” of the country.
Do you need to register for self-assessment?
| 02-09-2024
HM Revenue and Customs (HMRC) have issued a press release debunking some common myths about whether someone needs to register to complete a self-assessment tax return.

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Law practices hold sensitive information and can often be the target of cyber attacks. The National Cyber Security Centre (NCSC) has published some specific cyber security tips to help barristers, solicitors and legal professionals in firms of all sizes protect themselves. The tips they provide are good practice for businesses of all types. Here’s a summary of what NCSC suggests. Backups are important Regularly taking backups, and testing that you can restore them, allows you to be able to recover and access your client or customer data even if you are the victim of a computer virus or ransomware attack. Update software Software and operating system updates are important because they contain protection from viruses and other malware. Turning on ‘automatic updates’ on devices also removes the chance that you will forget to apply an update. Encryption Windows, Apple and Android devices all include free encryption that will stop a thief being able to access your sensitive data. Windows’ BitLocker, MacOS’s FileVault, and iOS’s advanced data protection for iCloud should all be switched on. Use strong passwords and 2-step verification Strong passwords are a must, and it’s particularly important to protect your email, banking and social media accounts. The three random words method or a password manager can help you create strong passwords. 2-step verification, also known as multi-factor authentication is also strongly recommended. Use screen locks Mobile devices should have their screen lock facility turned on, and you should use a passcode or fingerprint/face recognition to be able to access the device. Laptops and computers should also be locked when you’re not at your desk. Firewall When you use the internet or public networks, your device can be seen by others who are connected to the network. You should use a firewall to prevent any unwanted connections. Windows and macOS both include free firewalls. Limit administration accounts Administrator accounts will carry full access rights to make changes and access files. If a user doesn’t need these rights, then it is often better not to give them administrator access. Limiting the number of administrator accounts reduces the opportunity a cyber criminal has to access a user account and gain full access. Antivirus Make sure your antivirus software is turned on. Track lost or stolen devices Most devices come with the ability to remotely delete the data on the device if it is stolen or lost. Make sure this is set up properly. Privacy permissions Some apps will ask for permissions to access other apps, data, or system features. This may be a necessary part of the app’s function, however it could be exploited by a criminal. Therefore, make sure that staff only have access to the apps they need to carry out their work and avoid having redundant apps to minimise a potential problem. To review the guidance in full, see: https://www.ncsc.gov.uk/guidance/cyber-security-tips-for-barristers-solicitors-and-legal-professionals

Researchers in the UK are being offered new funding opportunities to explore ways of making society more resilient to the risks posed by Artificial Intelligence (AI). These risks include emerging threats such as deepfakes, misinformation, and cyber-attacks, and the funding is intended to support work aimed at ensuring AI’s safe and responsible use.

This initiative, launched last week, is a collaboration between the government, the Engineering and Physical Sciences Research Council (EPSRC), and Innovate UK, which is part of UK Research and Innovation (UKRI). The initiative is focused on exploring how AI systems can be made safer, and will also support research to tackle the threat of AI systems failing unexpectedly, for example in the finance sector.

Why this research matters

AI is considered to hold significant potential to drive long-term economic growth and improve public services. However, there are risks that come with AI, including system failures and misuse.

The government is keen to promote and maximise the benefits of AI across the UK economy and therefore it is looking at ways to ensure that as AI is adopted across different industries, it remains safe, reliable, and trustworthy.

Grant opportunities

The Systemic Safety Grants Programme, overseen by the UK’s AI Safety Institute, has opened applications for its first phase, which is set to distribute up to £4 million in funding.

This programme is part of a broader ÂŁ8.5 million fund that was first announced at the AI Seoul Summit in May, so further phases of grant funding will become available in the future.

Here are the key details:

Final thoughts

For researchers interested in contributing to the future of AI safety, this funding could present a significant opportunity.

If your business is involved in AI development or research, it could be worth considering if you could benefit from this opportunity to apply for grant funding and play a part in the ongoing development of AI and safety in its use.

For more information and guidance on how to apply for the grant scheme, see: https://www.aisi.gov.uk/grants.

 

At the International Investment Summit, the UK government announced nearly ÂŁ63 billion in new investments, which are expected to create 38,000 jobs.

These investments, which span various sectors, are projected to fuel growth across the country. While these investments tend to focus on large businesses and large-scale projects, there could be significant implications for small and medium-sized businesses (SMEs) as these investments roll out.

Renewable energy opportunities

Octopus Energy has committed to investing ÂŁ2 billion in renewable energy projects, including four new solar farms across the UK.

These solar farms will power up to 80,000 homes and generate business for smaller suppliers and contractors in the construction, maintenance, and energy sectors.

SMEs in renewable energy services, installation, and related fields could benefit from the need for equipment, local expertise, and operational support as these projects roll out.

Additionally, BW Group is proceeding with a £500 million investment in battery energy storage projects, which are expected to help the UK’s shift towards cleaner energy.

These projects, set in Hampshire and Birmingham, may create new supply chain opportunities for small businesses involved in the production or installation of renewable energy components.

Data Centres: A growing sector for small business support

The growing focus on data centres offers further potential. For example, Amazon Web Services has committed ÂŁ8 billion to expand its UK data centre operations, a move expected to support around 14,000 jobs annually at local businesses.

Businesses involved in construction, facility maintenance, engineering and telecommunications could find new contracts in the data centre market.

For more information on the project investments announced, see: https://www.gov.uk/government/news/record-breaking-international-investment-summit-secures-63-billion-and-nearly-38000-jobs-for-the-uk

The government has published the Employment Rights Bill, which is intended help deliver economic security and growth to businesses, workers and communities across the UK.

The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

The existing two-year qualifying period for protections from unfair dismissal will be removed, ensuring that all workers have a right to these protections from day one on the job.

The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one.

The bill will end exploitative zero hours contracts, following research that shows 84% of zero hours workers would rather have guaranteed hours. They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them security of earnings whilst allowing people to remain on zero hours contracts where they prefer to.

The bill will also:

See: https://www.gov.uk/government/news/government-unveils-most-significant-reforms-to-employment-rights

If you run a business with a website, you’ve likely seen those cookie consent banners asking visitors whether they’d like to accept or reject cookies. But what if your website is not giving visitors a fair and informed choice when it comes to how their personal data is used?

A recent case involving Sky Betting and Gaming shows just how serious the consequences can be when businesses fall short of these legal requirements.

What happened?

Between January and March 2023, Sky Betting and Gaming was found to be processing personal information from visitors to their website and sharing it with advertising companies without obtaining their prior consent.

Visitors to the SkyBet website had their personal data used for targeted ads before they had the opportunity to accept or reject cookies.

While there was no evidence that Sky Betting and Gaming was deliberately targeting vulnerable users, the investigation concluded that the company’s use of cookies was neither lawful, transparent, nor fair.

As a result, Sky Betting and Gaming made necessary changes to ensure that people could reject advertising cookies before their personal information was processed. But the case serves as a clear warning to businesses about the importance of complying with cookie and data protection regulations.

Why businesses should take note

The SkyBet case is part of a wider crackdown by the regulator on websites that misuse advertising cookies. Last year, the regulator reviewed the UK’s top 100 websites and found that more than half of them had issues with how they were using cookies.

Many of these sites have since made changes, but any business that fails to comply could face enforcement action.

The key takeaway? Businesses need to ensure their websites give visitors a clear choice when it comes to cookies, particularly when it comes to how personal data is used for targeted advertising.

There continues to be increasing scrutiny on how businesses handle personal data online. As a business owner, it’s essential to make sure your website complies with data protection regulations—especially when it comes to cookies and targeted advertising.

Compliance isn’t just about avoiding fines; it’s about building trust with your customers and ensuring that your business operates fairly and transparently in today’s digital world.

See: https://ico.org.uk/about-the-ico/media-centre/news-and-blogs/2024/09/action-taken-against-sky-betting-and-gaming-for-using-cookies-without-consent/

As a small business owner, it’s easy to get caught up in the day-to-day operations and miss the bigger picture. You might rely on gut feelings or a quick glance at your bank account to determine how well your business is doing. However, without specific measures of success, it can be difficult to truly understand your business’s performance or identify areas for improvement. This is where Key Performance Indicators (KPIs) come into play.

KPIs are measurable values that show how effectively a business is achieving its objectives. Using KPIs can be a game-changer, offering insights and clarity that help you make better decisions, drive growth, and stay competitive. Here’s why you should consider implementing KPIs in your business.

Track your progress more effectively

Running a business can often feel like you’re spinning plates – juggling multiple tasks, dealing with customers, managing finances, and more. KPIs help bring clarity to the chaos by giving you a simple, straightforward way to measure how well you’re doing over time.

For example, if one of your goals is to increase sales, tracking a KPI like ‘monthly revenue growth’ allows you to see whether your efforts are paying off. Or if customer retention is a priority, measuring ‘repeat customer rate’ gives you a clear picture of whether people are coming back or not.

By tracking the right KPIs, you gain insight into how close (or far) you are from your goals and can course-correct if necessary.

Make more informed, data-driven decisions

Many small business owners rely on intuition to make decisions, but KPIs offer a more reliable approach: data. By tracking KPIs, you’ll have access to hard facts and figures that give you a more accurate understanding of your business’s performance.

For instance, if your ‘website traffic’ KPI is increasing but your ‘conversion rate’ is dropping, this would flag up an issue in your sales funnel that needs attention.

Instead of guessing or waiting for problems to surface, KPIs can give you the information you need to make smart, informed decisions and take action quickly.

Increase accountability and focus

It can be difficult to ensure that everyone in your business is working toward the same goals, especially if you have a growing team. KPIs can help keep everyone on track.

When you establish KPIs for different departments or team members, you’re setting an expectation for what they prioritise in their work and this allows you to shape what they focus on.

For example, if your sales team knows they’re being measured on ‘weekly sales calls made’ or ‘lead conversion rates’, they’ll focus on the activities that move the needle.

KPIs not only motivate employees by giving them clear targets to aim for, but they also provide accountability, making sure that their efforts will contribute towards your business goals.

Drive continuous improvement

KPIs are not just about measuring current success—they can also help you to identify opportunities where improvements could be made.

For example, if your ‘stock turnover’ KPI shows that stock is sitting on the shelves for too long, it might be time to review your purchasing or marketing strategies. Similarly, a low ‘customer satisfaction’ score could signal a need to improve your product or service offering.

The process of tracking KPIs, and reviewing them regularly, helps you spot inefficiencies and encourages continuous improvement, so your business can become more efficient and effective over time.

Align your business with long-term goals

It’s important that every part of your business is pulling in the same direction. KPIs can help make sure that your daily operations are contributing to your long-term goals.

For example, if your long-term goal is to increase profitability, you might track KPIs like ‘gross profit margin’ or ‘operating expenses as a percentage of revenue’ to ensure you’re making financial decisions that support that aim.

How to get started with KPIs

Starting with KPIs doesn’t have to be complicated. Here’s a simple guide to help you get going:

  1. Define your business goals: Start by identifying your key objectives. What are the most important things you want your business to achieve? This could be anything from increasing sales, improving customer satisfaction, or reducing costs.
  1. Choose the right KPIs: Pick a few KPIs that directly align with your goals. For example, if growth is your aim, KPIs like ‘monthly sales’, ‘new customer acquisition’, or ‘website conversion rates’ may be relevant.
  1. Make KPIs measurable and realistic: KPIs should be clear, measurable, and achievable. Set targets that challenge your business but are still realistic. For example, ‘increase sales by 10% over the next quarter’ is better than simply ‘grow sales.’
  1. Review regularly: KPIs are only valuable if you monitor them. Set up regular check-ins (monthly or quarterly) to review your performance against each KPI. This ensures you stay on top of your progress and can make adjustments as needed.

Conclusion

KPIs might seem like tools for big businesses, but they’re valuable for businesses of any size. By implementing KPIs, you can gain better insight into your performance and make sure your business is moving in the right direction.

Whether you’re looking to grow, improve efficiency, or keep your team focused, KPIs can be a real help in running a successful business. Start small, track what matters most, and watch your business thrive.

If you’re not sure where to start, please reach out to us. We have tools and experience on setting KPIs and would be happy to help you.

Employment Rights Bill 2024

The government has published the Employment Rights Bill, which is intended help deliver economic security and growth to businesses, workers and communities across the UK.

The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing day one rights for paternity, parental and bereavement leave for millions of workers. Statutory sick pay will also be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

The existing two-year qualifying period for protections from unfair dismissal will be removed, ensuring that all workers have a right to these protections from day one on the job.

The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proper assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one.

The bill will end exploitative zero hours contracts, following research that shows 84% of zero hours workers would rather have guaranteed hours. They, along with those on low hours contracts, will now have the right to a guaranteed hours contract if they work regular hours over a defined period, giving them security of earnings whilst allowing people to remain on zero hours contracts where they prefer to.

The bill will also:

See: https://www.gov.uk/government/news/government-unveils-most-significant-reforms-to-employment-rights

If you, or your child, was born between 1 September 2002 and 2 January 2011, there could be a savings account with your or their name on it – literally!

More than 670,000 young people, aged 18-22, have yet to claim their Child Trust Fund, with HM Revenue & Customs calculating that the average fund is worth £2,212. That’s a decent chunk of money, so it’s worth checking to see if you’re one of those with unclaimed funds.

Let’s look at how you can find out if you or someone in your family are owed this cash, and what steps you need to take.

What is a Child Trust Fund?

Child Trust Funds are tax-free savings accounts that were set up for every child born between 1 September 2002 and 2 January 2011. The government kickstarted each account with a ÂŁ250 deposit, and in some cases, parents may have topped this up over the years. Once the child turned 18, the account matured, meaning that the funds can be withdrawn or reinvested.

The key thing to note is that these accounts aren’t held by the government but are managed by banks, building societies, or other savings providers. So, while the money is there, it’s not automatically sent to the account holder—you’ll need to take action to claim it.

How do you find your Child Trust Fund?

If you already know which provider holds the Child Trust Fund, then you can simply contact them directly and start the process to withdraw or reinvest your savings.

But what if you don’t know where your fund is? No problem. There’s a handy online tool on GOV.UK that can help you find your Child Trust Fund provider. All you need is your National Insurance number and your date of birth. If you’re unsure of your National Insurance number, you can easily find it using the HMRC app.

If you’re not sure whether you or your child have a Child Trust Fund or how much it’s worth, the best thing to do is do a quick check. You won’t lose anything by checking and you may get a nice surprise of discovering some extra savings for you or your family member.

If you need any help at all navigating the process, please feel free to get in touch – we’re always happy to help!

See: https://www.gov.uk/government/news/671000-young-people-urged-to-cash-in-their-government-savings-pot

The government has announced some reforms to the apprenticeship system in England, which could bring some exciting opportunities for business owners. These reforms, aimed at boosting young people’s access to apprenticeships, come with a new “growth and skills levy” that will replace the existing apprenticeship levy.

Here’s what you need to know, and how this could benefit your business.

Understanding the new growth and skills levy

This new levy is designed to give businesses more flexibility when it comes to taking on and training new apprentices. Under the current system, apprenticeships have to last at least 12 months, which may not always suit your business needs.

Under the new system, funding for shorter apprenticeships will be possible. This flexibility means you’ll be able to offer training programmes that suit both the needs of your business and the learning speed of your staff. This may mean being able to get new staff members up and running quicker, while still providing them with valuable skills training.

New foundation apprenticeships

Another key part of the reforms is the introduction of “foundation apprenticeships.” These new apprenticeships are aimed at giving young people a better start in certain critical sectors so that they can earn a wage while developing skills at the same time.

The goal of the reforms is clearly to encourage employers to invest more in younger workers. Young people can be highly motivated and eager to learn, and with government support for their training, this could be a good resource for your business.

What does this mean for your existing apprenticeship plans?

To raise the funds required under the new system, employers will be asked to rebalance their apprenticeship funding and invest in younger workers. Businesses will need to fund more of their level 7 apprenticeships (those at the master’s degree level) outside of the levy. These high-level apprenticeships are typically accessed by older or already well-qualified employees.

If you rely on level 7 apprenticeships in your business, it’s worth looking ahead and planning how you might adjust your budget to cover more of these costs yourself.

What does Skills England’s report mean for you?

Skills England has also published its first report, which highlights the skills gaps currently facing the UK economy. According to the report, employer investment in training has declined over the past decade. Investment per employee is down by 19% in real terms since 2011.

The report also shows that 1 in 10 jobs are now in “critical demand” with more than 90% of these jobs requiring training or education.

This report could act as a wake-up call for many businesses. With fewer people investing in training, those who do could gain a clear advantage in filling critical roles. By taking advantage of these new apprenticeship reforms, you could be ahead of the curve, helping your business secure the skilled workers it needs for long-term success.

In summary: key takeaways for your business

With these changes on the horizon, it’s worth keeping an eye on further announcements from the Department for Education for specific details on how the new system will work. But in the meantime, if you’re looking to grow your team or upskill your workforce, these apprenticeship reforms could be the perfect opportunity to get started.

See: https://www.gov.uk/government/news/prime-minister-overhauls-apprenticeships-to-support-opportunity

In line with the e-invoicing initiative we reported on elsewhere, the Chancellor also outlined broader reforms to modernise HMRC through a Digital Transformation Roadmap, which is expected in Spring 2025.

This roadmap will aim to create a “digital-first” tax system, although it will include measures to ensure support for those unable to go fully digital.

In addition, James Murray, who is Exchequer Secretary to the Treasury and is responsible for the UK’s tax system, has been appointed as the Chair of the HMRC Board. This in part is to help him oversee how HMRC can ‘close the tax gap’ – in other words, collect tax that the government currently believes is being underpaid.

HMRC has a target of recruiting an additional 5,000 compliance staff to help it in these aims.

How businesses might be impacted:

With HMRC focusing on closing the tax gap, businesses should ensure that their tax affairs are in order. You might consider seeking advice to review your tax compliance processes and make sure you avoid potential penalties.

For most businesses, operating digitally is now a day-to-day norm. However, with HMRC moving to a “digital-first” approach, if you’ve been relying on paper-based or old computer systems, it may be time to think about upgrading to online solutions.

If you’re unsure how these changes might affect your business or need support with your tax compliance or digital strategy, please get in touch. We’re here to help you navigate the upcoming reforms and ensure your business is well-positioned for growth.

See: https://www.gov.uk/government/news/chancellor-unveils-package-to-deliver-on-promises-of-new-government

The Chancellor unveiled a series of announcements last week that could have implications for UK businesses. One of the most relevant for business owners was the government’s push for electronic invoicing (e-invoicing).

HM Revenue and Customs (HMRC) will soon launch a consultation on encouraging the wider use of e-invoicing, with the goal of simplifying business transactions and reducing administrative burdens but perhaps especially, reducing errors in tax returns so that HMRC can ‘close the tax gap’.

While there are clearly advantages for HMRC in businesses using e-invoices, it’s also fair to say that they can benefit businesses too.

Benefits of e-invoicing for businesses:

How could you take advantage of e-invoicing?

While the consultation is yet to launch, there’s no reason you couldn’t give some thought to moving over to an e-invoicing system now.

To do this, you could explore the options available. Many software providers offer affordable solutions tailored to SMEs that work with your existing accounting software. You may find that the software you already use can do e-invoicing for you.

If you need any help with e-invoicing or setting up your accounting software, please just give us a call and we would be happy to help you out.

See: https://www.gov.uk/government/news/chancellor-unveils-package-to-deliver-on-promises-of-new-government

The Chancellor of the Exchequer, Rachel Reeves, has pledged her support to the Invest in Women Taskforce, a new initiative aimed at increasing funding for female-founded businesses. The Taskforce aims to create a ÂŁ250 million investment pool, making it one of the largest of its kind worldwide.

This move follows the Rose Review, which highlighted a £250 billion economic boost if women started and scaled businesses at the same rate as men. Despite women making up over half the UK’s population, they currently own only 21% of businesses.

Speaking about the initiative, the Chancellor commented that she doesn’t take her responsibility to be able to use her position to improve life for women across the UK lightly. She said that her focus is on addressing the gender pay gap, strengthening workplace rights, and investing in childcare.

The announcement coincides with International Equal Pay Day and is part of broader efforts, such as the Investing in Women Code, to address the financial barriers female entrepreneurs face.

For women business owners or those looking to start, the Taskforce could lead to more opportunities for investment and growth, as the government seeks to encourage more equal representation in entrepreneurship.

See: https://www.gov.uk/government/news/chancellor-everyone-can-do-something-for-womens-equality

HM Revenue and Customs (HMRC) has recently reminded people to check and make sure they are not missing out on valuable State Pension entitlements due to gaps in their National Insurance (NI) record.

The issue mainly affects parents, particularly women, who claimed Child Benefit before 2000. During that time, Home Responsibilities Protection (HRP) was designed to reduce the number of NI qualifying years needed to receive the full basic State Pension. However, if you didn’t provide your NI number when claiming Child Benefit, your record may not reflect the HRP you were entitled to, potentially lowering the State Pension you will now receive.

Who should check?

If you claimed Child Benefit between 1978 and 2000, it’s worth checking if HRP was properly applied to your NI record, especially if you took time off work to raise a family. Although HMRC is writing to those affected, you don’t need to wait for a letter—you can check your NI record online or through the HMRC app.

If gaps are identified and you successfully claim HRP, your NI record will be corrected, and the Department for Work and Pensions (DWP) will recalculate your State Pension. This could result in higher payments or, in some cases, back payments.

How to check and claim

It takes about 15 minutes to check your record on GOV.UK. If you find any gaps, you can submit a claim online or by post. There’s no need to apply if you already receive the full State Pension or if your missing year is already counted as a qualifying year.

Why this matters

For those nearing, or at, State Pension age, these missing years could make a difference in retirement income. Taking a few minutes to check your records now could help ensure you receive the full pension you’ve earned.

If you need any help, please feel free to give us a call and we would be happy to help you. Don’t miss out on what’s rightfully yours!

See: https://www.gov.uk/government/news/check-youre-not-missing-state-pension-payments

On Monday, 9th September, the newly formed Labour Market Advisory Board, appointed by Work and Pensions Secretary Liz Kendall MP, had its first meeting. This board is no ordinary group—it’s a collective of experts drawn from business, industrial relations, and academia, all focused on tackling what’s being called the “greatest employment challenge for a generation.”

What’s the big issue?

The UK is facing a significant employment crisis. It’s the only G7 country whose employment and inactivity rates haven’t bounced back to pre-pandemic levels. Nearly 2.8 million people are currently out of work due to long-term sickness, which not only affects individuals and families but also has a knock-on effect on businesses and the economy at large.

What’s the board’s role?

The Labour Market Advisory Board is tasked with developing new ideas and initiative for the Work and Pensions Secretary to consider.

At the first meeting, the new approaches were discussed, including how to tackle the underlying problems that keep people out of the workforce, such as poor physical and mental health. The Board also looked at how to help the government achieve its ambitious goal of an 80 per cent employment rate.

What could this mean for businesses?

  1. Localised Approaches to Employment: There are hints that a White Paper to be published this autumn will show that the Secretary of State plans to devolve power to local areas, enabling them to tackle inactivity with tailored work, health, and skills plans. This could mean more localised support for businesses, with strategies designed to address specific regional challenges.
  1. Overhauled Jobcentres: Plans are in the works to merge jobcentres with the National Careers Service. This could lead to more streamlined services, helping businesses to find skilled workers more easily.
  1. Youth Employment Initiatives: The same White Paper is expected to include plans for a new youth guarantee for 18-21-year-olds. If your business has been struggling to attract young employees, this initiative might offer new opportunities.
  1. Focus on Health and Well-being: With the Board’s focus on addressing the impact of ill-health on economic inactivity, we might see new initiatives aimed at improving workplace health and well-being. This could benefit businesses by reducing absenteeism and increasing productivity.

Why Should You Care?

While it’s difficult to know at this stage how the government’s plans will actually affect day-to-day business life, changes to recruitment and training, employee well-being and productivity all have the potential to affect your business. Therefore, it pays to be aware of what’s happening in these areas, especially as changes can provide new opportunities for growth and development.

See: https://www.gov.uk/government/news/government-action-to-tackle-the-greatest-employment-challenge-for-a-generation

As HMRC intensifies its crackdown on National Minimum Wage (NMW) noncompliance, it’s vital to make sure you don’t fall foul of NMW laws. Compliance can have more complexities to it than many assume, and the risks of getting it wrong are significant.

HMRC is focusing on SMEs

It seems that HMRC are targeting SMEs. For instance, they have recently targeted SMEs in regions including Belfast, Liverpool, East Anglia, Watford, and the North East. They have plans to expand to additional areas over time.

What are the areas of compliance to watch?

Clearly it is important to make sure that you are using the correct rates of NMW pay. However, compliance isn’t just about paying the correct hourly rate. There are a few areas that you need to be aware of to make sure that you comply with the laws.

  1. What category is the worker? Under NMW laws, workers are categorised in four different ways – salaried, time-based, output-based, or unmeasured. The category a worker belongs to can alter the method for calculating NMW.
  1. How much time does the worker work? If you have salaried staff, then you need to monitor the excess hours they work. A salaried worker is entitled to receive NMW for the total hours they work over a year, called their ‘calculated year’. Excess hours could include their turning up early, staying late, working through some of their lunch break, logging on outside of their normal office hours, and business travel. Payments to staff may need to be uplifted to avoid falling foul of the regulations.
  1. Does a non-employee count as a worker for NMW purposes? In some situations, someone who would not be considered an employee under PAYE may count as a worker under the NMW laws. For instance, paying volunteers beyond expenses, or offering non-cash benefits, could inadvertently classify them as workers under NMW rules.
  1. Could an after-tax deduction bring a worker below NMW? Deductions from wages, such as those made for benefits or savings schemes, can create unintended problems. A recent tribunal case highlighted that a scheme which was well-intentioned still resulted in noncompliance because it reduced pay below the NMW threshold.
  1. Are your records complete and accurate? In the event of a dispute where an employee says they have provided time records, but you have not kept a record, HMRC will side with the staff and calculate any arrears based on the information provided by the worker.

The consequences of noncompliance

HMRC’s enforcement process includes a three-stage approach, that starts softly and becomes heavier where the business fails to put things right. Continued noncompliance can result in penalties of up to 200% of arrears and public naming and shaming on the government website. Such exposure can damage a business’s reputation, affecting recruitment, supplier relationships, and overall growth.

Proactive steps for compliance

To mitigate risks, you should conduct periodic and thorough reviews to check that you are complying. This includes assessing potential areas of noncompliance, updating your policies, and ensuring that employment contracts are aligned with NMW regulations. Communication with staff and line managers is also critical to ensure that any issues are flagged promptly.

Our payroll team are skilled at applying the NMW rules, so if you have questions on any particular situation, please feel free to contact us and we would be happy to help you.

See: https://www.icaew.com/insights/viewpoints-on-the-news/2024/sep-2024/smes-must-grasp-nuances-of-minimum-wage-compliance

Last week, Companies House confirmed that their online services will move to the GOV.UK One Login beginning from autumn 2024.

The GOV.UK One Login is becoming an increasingly important way of accessing government digital services. It means that you only need one account, one username, and one password to access a range of government services.

The Login is already used for a number of government services, including those related to being an apprenticeship provider, finding and applying for grants, and in Wales to manage fishing permits and catch returns.

Ultimately, the GOV.UK One Login will be used to access all GOV.UK services, which eventually would include tax services. Companies House services moving across will be a major step towards this goal.

The Find and update company information service will be the first to move across, with the Webfiling service being moved at a later date.

As part of the changes being made by the Economic Crime and Corporate Transparency Act, any person who sets up, runs, or controls a company in the UK will need to verify their identity.

The GOV.UK Login will be used when Companies House implement this requirement so that users can verify their identity directly.

If you need any help with your company secretarial requirements, please just get in touch, our team will be happy to help you!

See: https://www.gov.uk/government/news/companies-house-to-join-govuk-one-login

Last month, the Home Secretary, Yvette Cooper, announced a significant government crackdown on employers hiring migrants illegally.

Overview of the government’s crackdown

From Sunday 18 to Saturday 24 August, Immigration Enforcement teams carried out a series of targeted visits to businesses suspected of employing illegal workers, with a particular focus on car washes. Over this intensive week of action, more than 275 premises were targeted. Of these, 135 businesses were issued notices for employing illegal workers, and 85 illegal workers were detained.

Potential consequences for non-compliant businesses

The penalties for employing illegal workers are severe. Businesses found in violation can face substantial financial penalties. The maximum civil penalty for employing illegal workers is ÂŁ45,000 per worker for a first offence and ÂŁ60,000 per worker for repeat violations.

Key takeaway for business owners

In view of the potential penalties, it’s vital you ensure that your business is fully compliant with all employment laws. This includes conducting the necessary right-to-work checks on all employees to ensure they have the legal right to work in the UK.

If you have any concerns or need advice, please get in touch with us. We will be happy to help you.

See: https://www.gov.uk/government/news/hundreds-of-rogue-employers-targeted-in-illegal-working-crackdown

 

The Prime Minister, Sir Keir Starmer, speaking from Downing Street last Tuesday, has said that the budget in October will be “painful” and the government would be making “big asks” of the country.

He said that the country would need to be prepared to “accept short-term pain for long-term good” and that those with the “broadest shoulders should bear the heavier burden”.

However, no details were given about what the measures would be, other than Sir Keir reiterated that national insurance, VAT and income tax would not go up.

What could change?

There are a number of areas of tax that may be increased, and these could include the following:

If you are concerned about how the budget may affect your situation, please feel free to talk to us at any time and we would be happy to advise you. We will be monitoring the October 30th budget very closely and update you on all the changes!

See: https://www.bbc.co.uk/news/articles/clyn01p5npgo

HM Revenue and Customs (HMRC) have issued a press release debunking some common myths about whether someone needs to register to complete a self-assessment tax return.

The basic requirement is that anyone who needs to complete a self-assessment return for the first time to cover the 2023-24 tax year, needs to tell HMRC by 5 October 2024.

Here are the myths and the realities highlighted by HMRC:

Myth: I don’t need to file a return because HMRC hasn’t been in touch.

The reality is that it is each taxpayer’s responsibility to determine whether or not they need to complete a tax return.

You may need to register and complete a tax return if you:

Myth: Tax has to be paid at the same time as the return is filed

The deadline for paying tax for the 2023-24 tax year is 31 January 2025. Tax can be paid any time before this date, it does not need to be paid at the same time the return is filed.

Myth: I don’t need to file a return because I don’t owe any tax

Tax returns need to be completed to claim tax refunds and to claim tax relief on business expenses, charitable donations, and pension contributions. A return also needs to be completed to be able to pay voluntary Class 2 National Insurance Contributions if you want to protect your pension and benefit entitlements.

Myth: HMRC won’t expect a return from me if I don’t need to file one

Taxpayers need to tell HMRC if they no longer need to file a tax return, perhaps because they’ve stopped being self-employed or stopped renting out a property. Especially if HMRC have sent you a notice to file a tax return they will expect one and keep reminding you and may charge a penalty if they don’t receive it.

If you think you don’t need to complete a return it is best to tell HMRC as soon as your circumstances change.

Myth: I have to file a tax return and pay tax on things I sold after clearing out the attic

Although there has been speculation on this, the tax rules are that selling old clothes, books, CDs and other personal items through online marketplaces do not trigger a requirement to file a return or pay income tax on the sales.

If you are not sure whether you need to file a tax return for the 2023-24 tax year, please just get in touch with us. We’ll be happy to let you know what you need to do and to contact HMRC on your behalf.

See: https://www.gov.uk/government/news/need-to-register-for-self-assessment-top-5-myths-debunked