Workplace childcare vouchers – get the best out this scheme during COVID-19
As many employees began working from home during the height of the coronavirus pandemic, they used less paid childcare, as many before school clubs and nurseries were closed.
Plea for action to prevent “explosion” of fraud phone calls
Fraudsters are costing the UK economy up to £190 billion each year, research reveals.
Five ways cloud accounting could boost your business
Cloud accounting is simple, fast, and efficient. So why are so many businesses refusing to make the switch?
In this blog, we’re going to explore just five ways cloud accounting could boost your business and help you leave competitors behind.
Real time data
Are you looking to hire under the Kickstart Scheme?
With many younger people struggling to find employment due to the pandemic, the Government launched the Kickstart scheme to incentivise employers to take them on.
Hiring an Apprentice
Hiring an apprentice is an effective way to develop talent and improve a motivated and qualified team. Plus, it enables companies to upskill their workforce.
According to research, nearly 90 per cent of employees said apprenticeships helped them develop skills relevant to their organisation.
What exactly is an apprentice?
Apprentices are usually aged 16 or over and work in a specific role while combining studying to obtain the necessary knowledge and skills for that job. An apprenticeship role, therefore, counts as staying in full-time education.
New or current employees can be an apprentice but, you must pay them at least the minimum wage, which may differ depending on their age and the amount of time they serve under their apprenticeship. Additionally, the role must meet the following criteria:
- Allow apprentices to learn with specific skills for the job
- Receive time for studying or training during their working week (at least 20 per cent of their working hours)
- Work with experienced employees.
How do I hire an apprentice?
The first step in hiring an apprentice is to look into what type of apprenticeship you want for your business or organisation.
The second step is to search for what funding is available for the cost of training to your organisation.
Thirdly, find an organisation that offers training for the apprenticeship you have chosen.
Then, you can start to advertise the apprenticeship, which can be done through the national recruit an apprentice service.
Once you have selected your apprentice, you need to make an apprenticeship agreement and commitment statement.
However, if you do not want to hire and train the apprentice yourself, you can use an apprenticeship training agency, which will employ and train the apprentice when they are not working in your organisation.
Depending on which level the apprentice is at, apprenticeships can last anywhere between a year to five years.
HMRC letters remind businesses of VAT payments change
Reminder letters are being sent out to tens of thousands of UK companies explaining changes in the Making Tax Digital (MTD) system and how it affects them.
VAT: Cash vs Accrual Accounting
If your business is VAT-registered, or you are exploring the benefits of VAT registration, you must consider the different methods for accounting for VAT.
Deadline to pay deferred VAT or arrange payment plan “fast approaching”
The deadline to pay deferred VAT or arrange a payment plan is “fast approaching”, the Institute of Chartered Accountants in England and Wales (ICAEW) has warned.
Businesses who deferred VAT in the wake of the coronavirus pandemic must take action before 30 June 2021 or risk penalties.
If your company has outstanding VAT liabilities, here’s what you need to know.
What is the VAT deferral scheme?
VAT-registered businesses could defer VAT payments between 20 March and 30 June to support cash flow during the height of the coronavirus pandemic.
The resulting liability was initially deferred until 31 March 2021, but a further deferral was announced in September 2020 giving businesses until 30 June 2021 to repay.
What are my options?
Businesses have two options. Pay their deferred VAT liability in full by 30 June 2021 or arrange a payment plan by the same date.
The new online VAT Deferral New Payment Scheme, which launched in February, enables businesses to spread out their liabilities over eight to 10 monthly interest-free instalments, depending on when they apply.
To get started, simply click this link and have your VAT registration number and Government Gateway ID handy.
What is the penalty for non-compliance?
Businesses could be fined up to five per cent of their total VAT liability if they do not register or pay in full by 30 June 2020, HM Revenue & Customs (HMRC) has confirmed.
Get expert advice today
For help and advice with related matters, please get in touch with our expert accounting and finance team today.
Bounce Back Loan Scheme fraud rising
The Bounce Back Loan Scheme (BBLS) which has been described as a ‘giant bonfire’ of taxpayers’ money by a senior banker, has seen fraud investigations rise by more than 50 per cent in some areas.
In total, £46 billion has been loaned under the scheme since its inception. However, the Cabinet Office believe that fraud losses across the public sector generally could be between 0.5 and 5 per cent, making a total of up to £2.3 billion on the scheme alone.
In addition, as of January 2021, according to the British Business Bank (BBB), which oversees the scheme, 43,958 loan applications, worth £1.6 billion were blocked by lenders, due to suspicions of fraud.
BBLs fraud investigations by the City of London Police increased by more than 50 per cent in February 2021 compared to the previous month, shows research from RPC, the international law firm.
The number of investigations opened into possible BBLs fraud increased from 17 in January to 26 in February before rising to 28 in March.
BBLs were those offered to small and medium-sized businesses in the UK that were impacted by the Coronavirus pandemic. More than 1.5 million businesses took out a loan before the scheme closed on 31 March 2021. These were 100 per cent state-backed and worth up to £50,000 interest free in the first 12 months.
Due to low levels of controls, designed to enable lenders to fast-track payments to help struggling businesses, there are concerns that abuse of the scheme was widespread.
It has been reported that fraudsters falsified documents to claim loans for non-existent companies, whilst some company directors used money claimed through the scheme to pay for personal items such as luxury cars.
RPC says abuse of the BBLs scheme can carry a heavy prison sentence if defendants are found guilty by a jury. However, with a huge backlog of criminal cases (compounded further by Covid-19), trials for even serious offenders caught today are unlikely to take place until 2023/2024.
Sam Tate, partner and head of white collar crime at RPC says: “The authorities will want to accelerate the pace of investigations. Otherwise, there is a high risk these assets will leave the country.”
“BBLs have been particularly attractive to fraudsters. Despite lenders blocking tens of thousands of applications believed to be fraudulent, many will have slipped through holes in the net, with the cost to the taxpayer estimated to be in the billions of pounds.
“Yet, trials even for serious BBL fraudsters caught today are unlikely to take place until 2023/2024, which is less of a deterrent for on-going fraud.”
UK to roll out independent tariff suspension scheme
Tariffs on some imported goods will be partially or wholly suspended to help UK firms become “more globally competitive”, it has been revealed.
The new scheme, announced this week by the Department for International Trade (DIT), will allow companies to ask for duties to be withdrawn for a set period – effectively lowering overall production costs.
As the UK is no longer a part of the EU, the Government said it now has the power to establish an independent tariff regime and the authority to decide how duties should be applied.
Tariffs could be suspended under previous trading arrangements, but only if agreed upon by all 27 EU Member States.
The guidance confirms that once a suspension has been introduced, all UK importers will be able to benefit from the reduced rate.
The duty suspensions will apply to unlimited quantities of a wide range of goods imported to the UK, but not chargeable duties such as VAT or the anti-dumping duty.
As part of the launch of this scheme, the Government also confirmed that existing duty suspensions rolled over from the EU will be extended beyond 31 December 2021 to “ensure business certainty”.
Commenting on the report, Greg Hands, Minister for Trade Policy, said: “Now we have left the EU we can use suspensions to give UK firms the maximum possible benefit.
“This suspensions scheme will be accessible to importers across the country, and those that are granted will benefit entire sectors.
“They will lower costs and help our superb producers pack even more of a punch when they compete on the global stage.”
For help and advice on related matters, please get in touch with our expert team today.
