Clark Howes

The Workforce Assessment Tool

clarkhowes — Thu, 26 Aug 2010 09:32:35 +0000

The Age and Employment Network (TAEN) has launched a UK version of a successful US tool that allows employers to assess their current and future workforce needs. The Workforce Assessment Tool enables managers to assess how an ageing workforce will affect their business and how to attract and retain talent from all age groups. Each user receives a confidential report suggesting measures they could take to create an age-friendly workplace.

Chris Ball, Chief Executive of TAEN, said:

‘This tool will help employers relate their workplace policies and practices to salient issues facing organisations and the economy, including demographic change, workforce ageing and shrinkage, and risks arising from skills shortages. The specific age focus of this tool makes it particularly relevant to UK employers in the present context.

Following the success of the…Workforce Assessment Tool in the US, we hope that UK employers will find the tool equally useful in developing their own age management strategies.’

Links: Tool Press release

HMRC Use New Debt Collection Organisations

clarkhowes — Thu, 26 Aug 2010 09:30:38 +0000

In the Emergency Budget it was announced that HMRC would use Debt Collection Agencies (DCAs) operating under industry and HMRC standards to increase HMRC’s debt collection capacity and help the pursuit of lower value debts. HMRC will be using DCAs to collect an additional £140m of tax debt. Contracts have been signed with:

Commercial Collection Services Ltd
Credit Solutions Ltd
Fairfax Solicitors Ltd
iQor Recovery Services Ltd.

Nick Lodge, HMRC Director, Debt Management and Banking, said:

‘We are all expected to pay our taxes on time and most do. DCAs give HMRC vital additional capacity, strengthening our ability to pursue the debts of those who decline to pay.

We do understand that some businesses and individuals are not in a position to pay what they owe and we have put procedures in place to help those who are genuinely struggling. But those who simply refuse to pay have to be pursued, and our partnership with DCAs ensures they will be.’

Link: HMRC release

Furnished Holiday Lettings

clarkhowes — Thu, 26 Aug 2010 09:28:28 +0000

The tax treatment of Furnished Holiday Lettings (FHL) has been advantageous for many years. Provided that certain conditions are met, FHL are treated as a trade. This can be more preferable than the tax regime for normal let property in a number of specific areas, as the rules and reliefs for trades are often more generous.

In particular, FHL are treated as trades for the following purposes:

some capital gains tax reliefs, such as Entrepreneurs’ Relief, business asset roll-over relief, relief for gifts of business assets, and relief for loans to traders;
relevant earnings when calculating the maximum relief due for an individual’s pension contributions;
loss relief; and
capital allowances.

As you may remember, the rules were extended to properties within the EEA last year but the government announced that it intended to scrap the rules altogether from April 2010. It has now been confirmed that there will be no change to the existing tax rules for the current tax year.

However, changes are being considered from April 2011. Firstly, one of the existing rules is that, for holiday accommodation to qualify as FHL, the property must be available for letting for at least 140 days a year and actually let for at least 70 days. The potential change is that the number of days may be increased for both tests.

Secondly, FHL losses can currently be set against other income and it appears likely that these rules may be made more restrictive.

So, before April 2011 you may wish to review your FHL position to ensure all possible reliefs have been maximised.

Links: HMRC guidance HMRC consultation document

Employer Provided Company Cars

clarkhowes — Wed, 25 Aug 2010 15:16:01 +0000

Historically, when employers started to provide, changed or stopped providing cars to employees, Form P46 (Car) had to be submitted by the employer to HMRC. This enabled HMRC to keep tax codes up to date, which in turn ensured that the employee didn’t end up with an unexpected tax bill.

From April 2009 employers were told that they no longer had to submit Form P46 (Car) for replacement company car changes. This was then followed by a statement that, from April 2010, Forms P46 (Car) relating to replacement company car changes would not be accepted.

However, this can lead to problems with tax codes and tax arrears. Following discussions with employers, from April 2011 employers will be able to notify HMRC electronically of any replacement car changes but paper forms will still not be accepted.

Link: HMRC statement

HMRC and DWP Trial is Genuine

clarkhowes — Wed, 25 Aug 2010 15:06:48 +0000

HMRC and the Department for Work and Pensions (DWP) are working together to offer customers the chance to participate in a voluntary scheme in which they can agree to have deductions taken from their state benefits and use those deductions to reduce their tax arrears or tax credit overpayments.

As part of this project a number of customers will be contacted by letter and invited to take part. Customers will not be contacted by telephone to take part in the scheme. The scheme is entirely voluntary.

HMRC wish to emphasise that this is a genuine trial and not a scam.

However, HMRC has also published details of a new telephone scam to be aware of. The fraudsters inform taxpayers that they are due a tax rebate and ask for their bank card details over the phone and then attempt to take money from the account.

Links: HMRC website HMRC scam

New Guidance on the Equality Act

clarkhowes — Wed, 25 Aug 2010 14:46:49 +0000

Acas has issued new guidance to help businesses understand the changes to the new Equality Act. The new guidance, ‘The Equality Act – what’s new for employers?’, outlines what these changes will mean in practice.

Changes brought in by the Act include:

employers are potentially liable if their staff are harassed by people they don’t employ, such as customers and suppliers;
from October employers should no longer send out pre-health questionnaires with employment application packs, although certain exemptions will apply;
Employment Tribunals can require employers found guilty of discrimination to take steps to require them to change their policies and practices to prevent further discrimination; and
if the contract of employment requires employees to keep pay secret, the Equality Act makes this requirement unenforceable.

John Taylor, Acas Chief Executive, said:

‘Fairness in the workplace is good business and motivates staff as well as improving effectiveness and productivity. Last year Acas received around 32,000 calls on diversity and discrimination-related issues. Our new guide helps businesses and managers understand what the changes mean in practice and what action employers will need to take.’

Links: Acas release Acas employer guidance

NIC Holiday

clarkhowes — Thu, 29 Jul 2010 15:39:00 +0000

The Coalition government intends to introduce a scheme to help new businesses in targeted areas of the UK by allowing a reduction in employers’ national insurance (NIC).

For a business commencing within a three-year qualifying period, the employer will not have to pay the first £5,000 of Class 1 employers’ NIC due in the first 12 months of employment. This will apply to each of the first ten employees hired in the first year of the business.

The scheme is intended to start no later than September 2010. Any new business set up from 22 June 2010 which meets the criteria set out will also benefit from the scheme.

The counties and regions which will benefit will be Scotland, Wales, Northern Ireland, the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands and the South West.

Further details are to be released soon.

Link: HMRC FAQs

Scrap Extension of Rules on Working Time?

clarkhowes — Thu, 29 Jul 2010 15:38:09 +0000

In June, the European Parliament voted in favour of including self-employed lorry drivers within the 2002 Directive on the organisation of the working time of lorry and bus drivers.

Previously, self-employed drivers could spend up to 56 hours/week driving as long as they drove no more than 90 hours over a two-week period. This change means that drivers will be limited to working a total of 48 hours/week including maintenance, loading and administrative work.

The Federation of Small Businesses (FSB), supported by business leaders and MEPs, has called on the European Commission to stand by its proposal not to include self-employed lorry drivers within the working time regulations.

Link: FSB release

Business Investment Increases at Fastest Pace Since 1987

clarkhowes — Thu, 29 Jul 2010 15:36:15 +0000

Investment by UK businesses rose at the fastest rate since 1987 in the first quarter of 2010, according to the Office for National Statistics.

Business investment rose by 7.8% compared to the previous quarter but business investment is still 7.7% lower than the same period in 2009.

In addition, the UK financial services sector grew at the fastest rate since September 2007 during the second quarter of 2010, according to the Confederation of British Industry. However, the growth was much lower than expected and firms still feel that business levels are well below normal.

Links: ONS release CBI release

The Sky’s the Limit

clarkhowes — Thu, 29 Jul 2010 15:33:58 +0000

Cloud computing allows businesses a way of managing data, hardware and software requirements by using internet-based resources. Documents, emails, customer information, business applications and other assets can be stored online and this makes them accessible from any computer or mobile device with an internet connection and web browser.

Cloud computing can help businesses become more efficient and this new guide from Business Link explains how cloud computing works, how to decide if it is right for your business and what you need to consider when implementing it.

This guide also looks at some of the risks involved with cloud computing including data protection, business continuity and issues around service provision.

Link: Business Link