News Archive - February 2014
Proposal for 3% minimum wage increase - 27.2.2014
The Low Pay Commission (LPC) has recommended an increase in the national minimum wage to £6.50 per hour for adults.
Given recent reports of economic recovery, it is thought possible that the UK can support a higher wage. If the proposal is accepted it will be the first increase, in real terms, for five years.
David Norgrove, Chair of the LPC, said: 'We have had to balance the risk of recommending more than business and the economy can afford, bearing in mind the pressures on low-paying sectors and small firms, against the risk of doing too little to start to restore the real value of the earnings of the lowest paid'.
Shadow business secretary, Chuka Umunna MP, was pleased with the recommendations, commenting: 'Labour said last year that we need to see above-inflation rises in the minimum wage to restore the value lost over recent years'.
Organisations such as the Engineering Employers' Federation, the Confederation of British Industry and the Forum for Private Business all welcomed the recommendations.
Given recent reports of economic recovery, it is thought possible that the UK can support a higher wage. If the proposal is accepted it will be the first increase, in real terms, for five years.
David Norgrove, Chair of the LPC, said: 'We have had to balance the risk of recommending more than business and the economy can afford, bearing in mind the pressures on low-paying sectors and small firms, against the risk of doing too little to start to restore the real value of the earnings of the lowest paid'.
Shadow business secretary, Chuka Umunna MP, was pleased with the recommendations, commenting: 'Labour said last year that we need to see above-inflation rises in the minimum wage to restore the value lost over recent years'.
Organisations such as the Engineering Employers' Federation, the Confederation of British Industry and the Forum for Private Business all welcomed the recommendations.
Government plans to reform business rates system - 14.2.2014
Business rates could be reassessed on a more frequent basis to ensure that the tax paid is ‘in line with the state of the economy.’
The Chancellor, George Osborne, spoke of Government plans to review and reform business rates in the Autumn Statement last year and offered the equivalent of £1.1bn in measures to reduce the burden on businesses.
Yesterday, the Government published its ‘terms of reference’ for the review, which will include changes to both the frequency and methods of valuation, as well as a reassessment of the organisations that are eligible for exemptions or relief.
Under the current business rates system, a property’s rateable value is assessed every five years, but in a statement, David Gauke, the Exchequer Secretary to the Treasury said that the Government had ‘a view to strengthening its responsiveness to changes in property values’, amongst other things.
Business Secretary Vince Cable commented that he will ‘welcome this review’ and was ‘particularly pleased that the review will look at the frequency of valuations as it is out of date property valuations that is a real problem, especially for businesses in deprived areas where rents have fallen’
The Chancellor, George Osborne, spoke of Government plans to review and reform business rates in the Autumn Statement last year and offered the equivalent of £1.1bn in measures to reduce the burden on businesses.
Yesterday, the Government published its ‘terms of reference’ for the review, which will include changes to both the frequency and methods of valuation, as well as a reassessment of the organisations that are eligible for exemptions or relief.
Under the current business rates system, a property’s rateable value is assessed every five years, but in a statement, David Gauke, the Exchequer Secretary to the Treasury said that the Government had ‘a view to strengthening its responsiveness to changes in property values’, amongst other things.
Business Secretary Vince Cable commented that he will ‘welcome this review’ and was ‘particularly pleased that the review will look at the frequency of valuations as it is out of date property valuations that is a real problem, especially for businesses in deprived areas where rents have fallen’
Insufficient pension concerns as auto-enrolment continues - 13.2.2014
Employees are being urged to make greater contributions to their pension funds, as the Pensions Regulator reveals the latest auto-enrolment figures.
Larger businesses have been auto-enrolling staff since 2012. Based on their earnings, mandatory input from employees is 0.8%, with an equivalent of 1% paid in by the employer and 0.2% by the Government in the form of tax relief. This applies only to staff aged 22 or over, who earn at least £9,440 per year.
With 90% of both employers and employees making only the minimum payment, concerns have been raised about amounts actually being saved for the future.
With auto-enrolment happening in stages, the coming months will see medium sized businesses – employing 50-250 workers – needing to meet the legal requirement of providing a workplace pension.
Employers can check their staging date at www.thepensionregulator.gov.uk.
Experts and ministers recommend people start savings for a pension as soon as possible in their working lives, in order to top up the state pension when they come of age.
Larger businesses have been auto-enrolling staff since 2012. Based on their earnings, mandatory input from employees is 0.8%, with an equivalent of 1% paid in by the employer and 0.2% by the Government in the form of tax relief. This applies only to staff aged 22 or over, who earn at least £9,440 per year.
With 90% of both employers and employees making only the minimum payment, concerns have been raised about amounts actually being saved for the future.
With auto-enrolment happening in stages, the coming months will see medium sized businesses – employing 50-250 workers – needing to meet the legal requirement of providing a workplace pension.
Employers can check their staging date at www.thepensionregulator.gov.uk.
Experts and ministers recommend people start savings for a pension as soon as possible in their working lives, in order to top up the state pension when they come of age.
HMRC issues tax rebate scam warning - 11.2.2014
Taxpayers have been urged by HM Revenue & Customs (HMRC) to be aware of emails promising tax refunds, following January’s self assessment deadline.
Over 91,000 fake emails were reported by customers in 2013. In the three months before the deadline, reports of such scams were up 47% compared with the same period in the previous year.
In 2013 the department closed down 1,476 websites which falsely claimed to represent HMRC and offered tax rebates. In emails from such websites, customers are asked for sensitive information – including their name, bank account details, national insurance number and various passwords.
Gareth Lloyd, head of digital security at HMRC, said: ‘HMRC never contacts customers who are due a tax refund via email – we always send a letter through the post’.
Concerned customers who contacted HMRC enabled 178 fraudulent websites to be closed last month alone. Anyone wishing to report a suspicious email should forward it to [email protected]
Over 91,000 fake emails were reported by customers in 2013. In the three months before the deadline, reports of such scams were up 47% compared with the same period in the previous year.
In 2013 the department closed down 1,476 websites which falsely claimed to represent HMRC and offered tax rebates. In emails from such websites, customers are asked for sensitive information – including their name, bank account details, national insurance number and various passwords.
Gareth Lloyd, head of digital security at HMRC, said: ‘HMRC never contacts customers who are due a tax refund via email – we always send a letter through the post’.
Concerned customers who contacted HMRC enabled 178 fraudulent websites to be closed last month alone. Anyone wishing to report a suspicious email should forward it to [email protected]
More than half of small firms 'are victims of late payment' - 5.2.2014
Recent research has suggested that more than five out of ten small businesses fell victim to the late payment culture in 2013.The study, conducted by the Federation of Small Businesses (FSB) revealed that 51% of its members were paid later than the original agreed payment date, by large private sector companies.
Of these firms, 34% reported reduced profitability, with 32% paying their own suppliers late and 29% reporting an impact on business growth.
The business group is urging the Government to strengthen the Prompt Payment Code, making it mandatory for large businesses to set out their payment terms and to agree to pay promptly.
Commenting on the report, John Allan, National Chairman of the FSB, said, 'As the economy gets stronger we must do everything we can help businesses and late payment is an issue the Government and large businesses must tackle. Small businesses simply can't be expected to lend interest free to their large customers, which is in effect what extended payment terms and late payments results in'.
According to the FSB, many small businesses are reluctant to begin charging interest and to complain about late payments, through fear of losing valuable contracts.
We can help your business with all aspects of cash flow planning and credit management - please contact us for assistance.
Of these firms, 34% reported reduced profitability, with 32% paying their own suppliers late and 29% reporting an impact on business growth.
The business group is urging the Government to strengthen the Prompt Payment Code, making it mandatory for large businesses to set out their payment terms and to agree to pay promptly.
Commenting on the report, John Allan, National Chairman of the FSB, said, 'As the economy gets stronger we must do everything we can help businesses and late payment is an issue the Government and large businesses must tackle. Small businesses simply can't be expected to lend interest free to their large customers, which is in effect what extended payment terms and late payments results in'.
According to the FSB, many small businesses are reluctant to begin charging interest and to complain about late payments, through fear of losing valuable contracts.
We can help your business with all aspects of cash flow planning and credit management - please contact us for assistance.
