Business news 21 December 2022
James Salmon, Operations Director.
Small businesses left ‘in limbo’ over energy support delay. Tory MPs urge PM to change pension tax rules to stop early retirement. MTD delay a relief for millions. And more business news.
Small businesses left ‘in limbo’ over energy support delay
The Government’s decision to delay the next announcement on the energy support that will be available to small businesses has left them on the brink of collapse, industry leaders have warned. The Energy Bill Relief Scheme runs until March, but a review of its affordability has been delayed with Downing Street blaming the complexity of the scheme. Martin McTague, chair of the Federation of Small Businesses, said: “What’s supposed to be a festive period bringing back the small business spirit has now sadly been stolen by a Grinch government, who’s under the illusion that small firms can plan on a less than three-month horizon and survive this bleak winter without any indication whatsoever whether their energy relief will continue or not.”
Tory MPs urge PM to change pension tax rules to stop early retirement
Senior Conservative MPs have said the Prime Minister should increase or even scrap the lifetime allowance as it acts as a “perverse incentive” for the over-50s to retire early. The lifetime allowance currently stands at £1,073,100, having been reduced from a high of £1.8m just over a decade ago. Pensioners are typically taxed 55% on any earnings they withdraw from their pension pot above that amount. Damian Green, a former work and pensions secretary, said Rishi Sunak should review the rules in light of the growing labour shortages. Baroness Altmann, a former pensions minister, added: “We’ve got this lack of joined-up thinking where a workplace benefit is turning into a workplace penalty for the most valuable senior staff.”
Business calls for simplification of UK tax rules for cross-border workers
The Office of Tax Simplification has warned that businesses need a simple way to offer employees the ability to work from a different country – deemed important for attracting and retaining staff.
MTD delay a relief for millions
HMRC has confirmed the rollout of Making Tax Digital (MTD) has been delayed for two years. The move to digital software has been postponed and will be introduced from April 2026, instead of April 2024. Commenting on the news, Paul Falvey, a tax partner at BDO, said: “This will come as a relief to the estimated 4.2m taxpayers with business or property income over £10,000, including landlords, sole traders and partnerships. They had been due to file five returns from 2024 and be obliged to purchase new tax software. Instead, there will be a phased introduction from 2026 for those self-employed individuals and landlords with an income of more than £50,000, followed by a 2027 start for those with an income above £30,000. This seems like a more realistic approach.”
New European VAT rules set to increase travel booking costs
The European Commission has proposed a series of measures to modernise and improve the European Union’s VAT system. But Damon Wright, tax director at Evelyn Partners, said the new rules are expected to have “widespread implications” for consumers and businesses using apps and platforms such as Airbnb and Booking.com to source travel and accommodation in EU countries. He explained: “The EU’s new drive to close the gap on undeclared and unpaid VAT on services from short-term accommodation letting to passenger transport means that many will be liable to either pay VAT for the first time or to pay more VAT than is currently applied.”
Who will be the next Chief Twit?
Elon Musk confirmed he will abide by the results of his twitter poll and step down as CEO of Twitter once he finds a successor, though he plans to stay in control over the company’s engineering teams. “I will resign as CEO as soon as I find someone foolish enough to take the job!’’ he tweeted.
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.