News Archive - October 2013
UNIVERSAL CREDIT
In 2013 the new "Universal Credit" scheme will be rolled out accross the UK, with a planned "pathfinder" trial set for the North-West England from April 2013, and the rest of the UK later in 2013. This will replace a number of existing benefits and affect most working families.
Please click the link for further information : DWP Universal Credit Link
In 2013 the new "Universal Credit" scheme will be rolled out accross the UK, with a planned "pathfinder" trial set for the North-West England from April 2013, and the rest of the UK later in 2013. This will replace a number of existing benefits and affect most working families.
Please click the link for further information : DWP Universal Credit Link
Growth in online retail searches - 23.10.2013
The volume of searches for online goods increased by 12 per cent in the third quarter of 2013 when compared like-for-like with Q3 2012, according to the latest figures from the British Retail Consortium (BRC) and Google.
The significant rise demonstrates that consumers are increasingly turning to the internet to find items such as clothing, beauty goods and gadgets.
The figures also reveal a shift in consumer behaviour in the way that goods are being searched for:
- searches on tablet devices grew more than any other device - increasing by 100 per cent
- searches on smartphones increased by 58 per cent
- searches on desktop computers fell by 10 per cent.
Overseas searches on UK retailer websites grew by 23 per cent in the same period.
Director general of the BRC, Helen Dickinson, said the figures showed that 'Brand Britain' was respected around the world.
"These figures highlight the strong foothold that UK retailers have on the international stage, and the major potential for further growth," she said.
Meanwhile, separate figures from the BRC show that total footfall on the UK's high streets and shopping centres fell by 2.4 per cent when compared like-for-like with September 2012.
It compares with strong figures a year ago when footfall grew by 0.5 per cent in the same month.
The significant rise demonstrates that consumers are increasingly turning to the internet to find items such as clothing, beauty goods and gadgets.
The figures also reveal a shift in consumer behaviour in the way that goods are being searched for:
- searches on tablet devices grew more than any other device - increasing by 100 per cent
- searches on smartphones increased by 58 per cent
- searches on desktop computers fell by 10 per cent.
Overseas searches on UK retailer websites grew by 23 per cent in the same period.
Director general of the BRC, Helen Dickinson, said the figures showed that 'Brand Britain' was respected around the world.
"These figures highlight the strong foothold that UK retailers have on the international stage, and the major potential for further growth," she said.
Meanwhile, separate figures from the BRC show that total footfall on the UK's high streets and shopping centres fell by 2.4 per cent when compared like-for-like with September 2012.
It compares with strong figures a year ago when footfall grew by 0.5 per cent in the same month.
Calls to scrap parking charges on UK's first Small Business Saturday - 21.10.2013
Local councils should waive town centre parking charges in support of the UK's first Small Business Saturday being held on 7 December, the Forum of Private Business (FPB) has said.
The business group is calling on councils across the UK to lend their support to the inaugural Small Business Saturday UK - an initiative to encourage communities to shop local and support small businesses.
Parking charges discourage many consumers from shopping on the high street and can weaken the customer base of small businesses, say the FPB.
The group has written to all local authorities asking them to consider removing parking charges on the day to provide an added incentive to shoppers to visit their local high streets.
Some authorities are already trailing free or reduced charges, however the FPB believe more needs to be done to make Small Business Saturday UK a success.
The FPB's chief executive, Phil Orford, said that small businesses were the 'grass roots' and 'heart' of 'every local community'.
"The Forum is a proud supporter of Small Business Saturday, which is about reconnecting people with the small businesses
in their local areas and demonstrating the enormous value that they bring to individual customers and to the UK as whole," he said.
To make it a real success everyone needs to play their part and local councils have a key role to play in removing one of the barriers for small businesses.
Small Business Saturday has taken place in the US since 2010, falling on the first Saturday after Thanksgiving - one of the busiest shopping days of the year. The initiative, which is promoted via social media sites and celebrity endorsement, generated a total of £5.5 billion on the day in 2012.
The business group is calling on councils across the UK to lend their support to the inaugural Small Business Saturday UK - an initiative to encourage communities to shop local and support small businesses.
Parking charges discourage many consumers from shopping on the high street and can weaken the customer base of small businesses, say the FPB.
The group has written to all local authorities asking them to consider removing parking charges on the day to provide an added incentive to shoppers to visit their local high streets.
Some authorities are already trailing free or reduced charges, however the FPB believe more needs to be done to make Small Business Saturday UK a success.
The FPB's chief executive, Phil Orford, said that small businesses were the 'grass roots' and 'heart' of 'every local community'.
"The Forum is a proud supporter of Small Business Saturday, which is about reconnecting people with the small businesses
in their local areas and demonstrating the enormous value that they bring to individual customers and to the UK as whole," he said.
To make it a real success everyone needs to play their part and local councils have a key role to play in removing one of the barriers for small businesses.
Small Business Saturday has taken place in the US since 2010, falling on the first Saturday after Thanksgiving - one of the busiest shopping days of the year. The initiative, which is promoted via social media sites and celebrity endorsement, generated a total of £5.5 billion on the day in 2012.
Consultation to tackle late payment - 15.10.2013
A consultation to tackle the problem of late payments to small and medium sized enterprises (SMEs) will be launched later this year, Prime Minister David Cameron has confirmed.
A YouGov poll commissioned by Barclays Bank found that 85 per cent of SMEs have had problems with late payments in the last two years. A total of £30.2 billion is owed in late payments to SMEs this year alone, according to the Bankers' Automated Clearing Service.
The consultation will look at how to:
- encourage senior managers and boards to take greater responsibility for payment policy
- increase transparency around which companies are prompt-paying and which aren't
- strengthen the Prompt Payment Code (PPC) so that companies can be held to account against it
- better enforce existing legislation, including the provisions on payment terms
- encourage more companies to use their statutory right to add interest to late payments.
It will also consider whether there is a case for further legislation or penalties and if the Government can do more to help SMEs by
promoting new technologies and services, such as electronic invoicing and mobile payments.
The PPC aims to ensure prompt payment for suppliers - particularly small businesses - with signatories agreeing to pay suppliers on time and to follow set processes for any payment issues that may arise. It has more than 1,400 signatories to date.
Speaking as the National Insurance Contributions Bill - which will cut the national insurance contributions bill of businesses and charities by £2,000 - was introduced to Parliament, the Prime Minister said:
The government has already taken steps to help address this issue but I am clear that more needs to be done to build a business culture across all sectors of the economy that sees the fair, prompt and reliable payment of suppliers become a core corporate responsibility which is taken seriously at the most senior levels.
Katja Hall, chief policy director at the Confederation of British Industry, said:
Late payment is a serious issue for all businesses but particularly for smaller firms, as cash flow is their life blood. Businesses
already have a number of routes for recourse if they are paid late, but the reality is that few choose to act on late payment for fear of fall out with their customers.
A YouGov poll commissioned by Barclays Bank found that 85 per cent of SMEs have had problems with late payments in the last two years. A total of £30.2 billion is owed in late payments to SMEs this year alone, according to the Bankers' Automated Clearing Service.
The consultation will look at how to:
- encourage senior managers and boards to take greater responsibility for payment policy
- increase transparency around which companies are prompt-paying and which aren't
- strengthen the Prompt Payment Code (PPC) so that companies can be held to account against it
- better enforce existing legislation, including the provisions on payment terms
- encourage more companies to use their statutory right to add interest to late payments.
It will also consider whether there is a case for further legislation or penalties and if the Government can do more to help SMEs by
promoting new technologies and services, such as electronic invoicing and mobile payments.
The PPC aims to ensure prompt payment for suppliers - particularly small businesses - with signatories agreeing to pay suppliers on time and to follow set processes for any payment issues that may arise. It has more than 1,400 signatories to date.
Speaking as the National Insurance Contributions Bill - which will cut the national insurance contributions bill of businesses and charities by £2,000 - was introduced to Parliament, the Prime Minister said:
The government has already taken steps to help address this issue but I am clear that more needs to be done to build a business culture across all sectors of the economy that sees the fair, prompt and reliable payment of suppliers become a core corporate responsibility which is taken seriously at the most senior levels.
Katja Hall, chief policy director at the Confederation of British Industry, said:
Late payment is a serious issue for all businesses but particularly for smaller firms, as cash flow is their life blood. Businesses
already have a number of routes for recourse if they are paid late, but the reality is that few choose to act on late payment for fear of fall out with their customers.
Autumn Statement confirmed for 4 December - 14.10.2013
This year's Autumn Statement will be held on Wednesday 4 December, Chancellor George Osborne has confirmed on his Twitter
account.
The annual statement provides an update on the Government's plans for the economy and is released alongside the latest economic forecasts from the Office for Budget Responsibility.
Previously known as the Pre-Budget Report and sometimes referred to as the mini Budget, the Autumn Statement is regarded as the second most significant economic announcement of the year after the Budget, which is usually delivered in March.
Confirming the date on Twitter, the Chancellor (@George_Osborne) said: "That's when we'll set out next steps in plan to secure
the economic recovery."
The International Monetary Fund recently revised the UK's growth forecasts up to 1.4 per cent in 2013 and 1.9 per cent in 2014, saying "recent data have shown welcome signs of an improving economy, consistent with increasing consumer and business confidence," although "output remains well below its pre-crisis peak."
The Chancellor used last year's Autumn Statement to cancel the 3p rise in fuel duty that was due to take place in January 2013. He also confirmed last December that the annual and lifetime pension contributions allowances would decrease from 2014/15, to £40,000 and £1.25 million respectively.
We'll be covering the key announcements from the Autumn Statement live as it happens on Wednesday 4 December.
account.
The annual statement provides an update on the Government's plans for the economy and is released alongside the latest economic forecasts from the Office for Budget Responsibility.
Previously known as the Pre-Budget Report and sometimes referred to as the mini Budget, the Autumn Statement is regarded as the second most significant economic announcement of the year after the Budget, which is usually delivered in March.
Confirming the date on Twitter, the Chancellor (@George_Osborne) said: "That's when we'll set out next steps in plan to secure
the economic recovery."
The International Monetary Fund recently revised the UK's growth forecasts up to 1.4 per cent in 2013 and 1.9 per cent in 2014, saying "recent data have shown welcome signs of an improving economy, consistent with increasing consumer and business confidence," although "output remains well below its pre-crisis peak."
The Chancellor used last year's Autumn Statement to cancel the 3p rise in fuel duty that was due to take place in January 2013. He also confirmed last December that the annual and lifetime pension contributions allowances would decrease from 2014/15, to £40,000 and £1.25 million respectively.
We'll be covering the key announcements from the Autumn Statement live as it happens on Wednesday 4 December.
Pensions lifetime limit cut to affect thousands - 10.10.2013
The number of individuals affected by next year's cut in the lifetime limit for pension contributions is likely to be higher than Government figures suggest, according to pension provider Standard Life.
From 6 April 2014, the total value of savings that an individual can accrue in pension schemes before a tax charge is triggered
reduces from £1.5 million to £1.25 million.
Standard Life estimates that the reduction in the lifetime limit will:
- affect more than the one per cent of pension savers originally envisaged by HMRC
- immediately affect 30,000 people
- affect 360,000 people in the longer term
- impact more than £250 billion of accumulated pension wealth.
The annual allowance - the amount you can make in pension contributions each year without attracting a tax charge - is also set to decrease from £50,000 to £40,000 from April 2014.
Standard Life said that many higher net worth individuals, such as those with competitive company pension schemes, are likely to be affected by the changes.
Alistair Hardie, head of customer consolidation at Standard Life, said: "These people face the difficult decision of whether to protect their existing pension benefits and stop pension funding, or carry on contributing and face a tax charge. And the clock is ticking for many."
The two new options to lock into a higher allowance which have been introduced, while welcome, serve to complicate decision making for clients - decisions that many will not even realise are crucial to their future retirement planning strategy. And making the wrong decision could potentially expose up to £250,000 of their pension savings to a 55 per cent tax charge.
We can advise on protecting your pension savings.
From 6 April 2014, the total value of savings that an individual can accrue in pension schemes before a tax charge is triggered
reduces from £1.5 million to £1.25 million.
Standard Life estimates that the reduction in the lifetime limit will:
- affect more than the one per cent of pension savers originally envisaged by HMRC
- immediately affect 30,000 people
- affect 360,000 people in the longer term
- impact more than £250 billion of accumulated pension wealth.
The annual allowance - the amount you can make in pension contributions each year without attracting a tax charge - is also set to decrease from £50,000 to £40,000 from April 2014.
Standard Life said that many higher net worth individuals, such as those with competitive company pension schemes, are likely to be affected by the changes.
Alistair Hardie, head of customer consolidation at Standard Life, said: "These people face the difficult decision of whether to protect their existing pension benefits and stop pension funding, or carry on contributing and face a tax charge. And the clock is ticking for many."
The two new options to lock into a higher allowance which have been introduced, while welcome, serve to complicate decision making for clients - decisions that many will not even realise are crucial to their future retirement planning strategy. And making the wrong decision could potentially expose up to £250,000 of their pension savings to a 55 per cent tax charge.
We can advise on protecting your pension savings.
Higher rate taxpayers missing out on pensions tax relief - 2.10.2013
An estimated 182,000 higher rate taxpayers are missing out on pension contributions tax relief worth around £229 million, according to research from Prudential.
The research found that 26 per cent of those surveyed were failing to claim the additional 20 per cent tax relief on their pension contributions, while a further 15 per cent didn't know whether they were.
The higher rate tax earnings threshold was lowered to £41,451 this year, meaning more people who are paying into defined contribution (DC) pension schemes could be eligible for the 40 per cent relief on their contributions.
The first 20 per cent of relief is applied automatically but the additional 20 per cent must be claimed on the individual's self-assessment tax return.
The research found the average additional 20 per cent tax relief would be worth £1,255 per year. This is based on an average salary of £62,774 and an average monthly pension contribution of 10 per cent, for those higher rate taxpayers surveyed who were members of a DC scheme.
Prudential's tax expert, Clare Moffat, said: "There cannot be many people who would happily give up as much as £1,255 a year and substantial numbers of higher rate taxpayers can take action now to significantly improve their pension savings."
"The good news is that it is possible to reclaim tax relief you have missed out on and that claims can be backdated for up to three tax years if you do not fill in a tax return yourself."
We can help with your self-assessment tax return. Please contact us now to find out more.
The research found that 26 per cent of those surveyed were failing to claim the additional 20 per cent tax relief on their pension contributions, while a further 15 per cent didn't know whether they were.
The higher rate tax earnings threshold was lowered to £41,451 this year, meaning more people who are paying into defined contribution (DC) pension schemes could be eligible for the 40 per cent relief on their contributions.
The first 20 per cent of relief is applied automatically but the additional 20 per cent must be claimed on the individual's self-assessment tax return.
The research found the average additional 20 per cent tax relief would be worth £1,255 per year. This is based on an average salary of £62,774 and an average monthly pension contribution of 10 per cent, for those higher rate taxpayers surveyed who were members of a DC scheme.
Prudential's tax expert, Clare Moffat, said: "There cannot be many people who would happily give up as much as £1,255 a year and substantial numbers of higher rate taxpayers can take action now to significantly improve their pension savings."
"The good news is that it is possible to reclaim tax relief you have missed out on and that claims can be backdated for up to three tax years if you do not fill in a tax return yourself."
We can help with your self-assessment tax return. Please contact us now to find out more.
New minimum wage rates now in force - 1.10.2013
The latest increases to minimum wage rates have come into force today, in line with recommendations set out by the Low Pay Commission (LPC).
From Tuesday 1 October:
- the adult rate increases to £6.31 an hour
- the rate for 18-20 year olds increases to £5.03 an hour
- the rate for 16-17 year olds increases to £3.72 an hour
- the apprentice rate increases to £2.68 an hour.
According to the Department for Business, Innovation and Skills, more than 890,000 of the lowest-paid workers in Britain will benefit from the rate increases.
Business Secretary Vince Cable described the NMW as "a vital safety net in protecting the low paid" but warned that :
"...as signs of an economic recovery start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board."
"That is why in addition to their on going annual remit, I am asking them [the LPC] to extend their expertise to help the government and business understand how we can deal with the issue of low wages in the economy. In particular I have
asked them to look at what economic conditions would be needed to allow the National Minimum Wage to rise in the future by more than current conditions allow."
We can help with payroll and compliance with the new NMW rates. Please contact us to find out how.
From Tuesday 1 October:
- the adult rate increases to £6.31 an hour
- the rate for 18-20 year olds increases to £5.03 an hour
- the rate for 16-17 year olds increases to £3.72 an hour
- the apprentice rate increases to £2.68 an hour.
According to the Department for Business, Innovation and Skills, more than 890,000 of the lowest-paid workers in Britain will benefit from the rate increases.
Business Secretary Vince Cable described the NMW as "a vital safety net in protecting the low paid" but warned that :
"...as signs of an economic recovery start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board."
"That is why in addition to their on going annual remit, I am asking them [the LPC] to extend their expertise to help the government and business understand how we can deal with the issue of low wages in the economy. In particular I have
asked them to look at what economic conditions would be needed to allow the National Minimum Wage to rise in the future by more than current conditions allow."
We can help with payroll and compliance with the new NMW rates. Please contact us to find out how.
