Maternity & Other News
Update 59 - 6 July 2022
Although these updates are now fewer and farther between, I appreciate that quite a number of our clients are still struggling - some even more so now that we are over the main "covid period". As mentioned before, I intend to keep these going for the foreseeable future to try and help clients as much as I can.
Before I get into any of that though I have a few Change announcements. Firstly, baby news, Lauren is going on maternity leave shortly (how many of you thought I'd lost my mind and decided to have another baby?!). All of her client's will be dealt with by another member of the team but if in doubt, contact Tracy and she will assist you. We are all very excited about the imminent arrival of their first baby!
Secondly, you may remember that Matthew left us late last year. I am delighted to say that he is coming back (that's how lovely we are to work with!). Matt rejoins Change at the end of July as a tax senior.
So, onto the less exciting stuff...
If like Change, and many of our clients, you are struggling to recruit due to the shortage of workers, it may be time to look at different strategies. One such strategy could be a work-based skills development programme. Traineeships are a free government scheme where trainees can gain English, maths, and other work-related qualifications which can lead them onto an apprenticeship, work or further education.
The full programme can last from 6 weeks to 1 year, though most traineeships last for between 6 weeks and 12 weeks. Your business needs to be able to offer a work experience placement between 70 to 240 hours. You work with a training provider to design what is included in the programme.
The benefits to employers include: get to know and work with a young person to see if they’re right for an apprenticeship or job in their business, design a programme that suits the needs of the trainee and their business, develop current employees’ experience in training and mentoring, recruit new talent for their business, claim an employer incentive of £1,000 when a work experience placement of over 70 hours has been completed.
More information here
2. Help to Grow: Management scheme – programme changes
The Help to Grow: Management scheme now offers business leaders 50 hours of leadership and management training across 12 weeks, and covers 90% of the costs involved.
This means that from £750, business leaders can benefit from one-to-one support from a business mentor, access to a network of like-minded business leaders, and a bespoke growth plan to help the business reach its full potential.
Businesses with 10 or more employees are now eligible to have up to 2 participants join the scheme. Additionally, previous participants in the Small Business Leadership Programme will now be eligible to join the management programme.
See: More business leaders to benefit from Help to Grow: Management scheme - GOV.UK (www.gov.uk)
3. National Insurance
In the Spring Statement 2022, the Government announced an increase in NI thresholds affecting the 2022 to 2023 tax year from the 6 July 2022
The primary threshold from 6 July 2022 to 5 April 2023 will be £242 per week and £1,048 per month, equivalent to £12,570 per year (increased from £9,880 per year).
The National Insurance lower profits limit for self-employed people has also increased in line with the changes for employees. The annual lower profits limit is now set to £11,908 for 2022 to 2023. This is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, mirroring the position for employees. Self-employed people are also no longer required to pay Class 2 National Insurance contributions on profits between the Small Profits threshold (£6,725) and Lower Profits limit (£11,908), but they are still able to build National Insurance credits.
If we prepare your payroll, and these changes affect how much you should take as a directors' salary, we will be contacting you in the next week to let you know what to do.
4. Penalties for overclaimed SEISS grants
HMRC have updated their guidance setting out the procedure for reporting and repaying overclaimed Self-Employed Income Support Scheme (SEISS) Grants. HMRC are also reminding sole traders and partners who have received these grants that there are potential penalties of up to 100% of the amount overclaimed under certain circumstances.
A penalty of up to 100% would apply where the trader knew that they were not entitled to the grant and did not tell HMRC within a 90-day notification period. The law treats the failure as ‘deliberate and concealed’. This means that HMRC may charge a penalty of up to 100% of the amount of the SEISS grant that the trader was not entitled to receive or keep.
Information correct at time of publishing. This is not advice. Always consult a professional.
Photo credits: Brooke Lark & Sofiya Levchenko