The conflict in the Ukraine conflict shows quite clearly that the UK must start bolstering its future economic resilience, from our supply chains and energy sources to our cyber security, according to CBI Director-General Tony Danker. He said: “To do that, the Government will need to fast-track progress on some of the big policy issues and help firms invest. Business stands ready to support them in that endeavour. “Since the start of this crisis, the CBI has been guiding thousands of firms across the country to support economic sanctions on Russia and to get behind humanitarian efforts for people in Ukraine and for refugees. Convening its councils and roundtables across the UK, CBI members are supportive of sanctions, despite the real costs involved in doing so. “The next phase must be finding our economic resilience, better ensuring our fate remains in our hands on this conflict and for the future.” “Sanctions have been a successful start to global efforts to isolate the Putin regime. But the next phase will require global economies, including Britain, to be economically resilient to further threats.” He said the crisis showed the UK had to move far faster towards clean energy solutions. “We need to double down on successful strategies for wind power and nuclear. And we must go further and faster to deliver investible business models for carbon capture and hydrogen. Government is moving too slowly on these solutions. “We need to stand behind domestic oil and gas in our energy transition. That’s why the government is right to take forward the aims of its North Sea Transition Deal with industry, and we need to recognise immediately the looming crisis in domestic and business energy bills. We need to move immediately towards energy efficiency in homes to dampen down demand. And government will need to think urgently about consumers’  as bills go higher still later in the year.” His calls came amongst a package of pleas covering minerals, commodities, cyber security and business investment, adding: “Firms fully support sanctions despite their cost. Meanwhile the CBI will continue to advise companies on what’s required and ensure the government understands the implications of its decisions for UK firms domestically and overseas.”  

The FSB is urging the Chancellor to make next week’s Spring Statement “a rallying point” for businesses as surging operating costs, supply chain disruption and labour shortages make it increasingly difficult for firms to invest and expand. In a letter to Rishi Sunak, the FSB recommends interventions aimed at addressing “foundational issues” in the UK economy against a backdrop of declining business confidence. The move follows a pledge from the Chancellor last month to create “a new culture of enterprise”. In his Mais lecture, Sunak stated that he “firmly believe[s] in lower taxes”, adding that “the marginal pound our country produces is far better spent by individuals and businesses than government.” He is set to confirm an £18bn collective annual increase in national insurance contributions (NICs) and dividend taxation at his Spring Statement next week. There is also speculation that the Treasury may scrap the R&D tax credit incentive for small research-intensive businesses in favour of supporting larger companies. In his correspondence with the Chancellor, the new FSB Chair, Martin McTague flags that, with the public finances tight, the Treasury should move away from an “eye-wateringly expensive” super deduction tax break which “will primarily be used by corporations and multinationals, not small businesses operating in all our communities,” and instead prioritise reduction of Government-imposed overheads to free up funds for investment at the local level. FSB research shows that just 4% of the small businesses that make up 99% of the private sector see the super deduction as one of the top three incentives to invest. In its costed Spring Statement submission, FSB recommends:

• Increasing the Employment Allowance to £5,000.
• Taking an additional 200,000 community small businesses in levelling up target areas out of the business rates system by increasing the rateable value ceiling for small business rates relief to £25,000, and extending a one-year relief on business rates increases linked to property investments in plant and machinery.
• Extending support with energy costs being allocated via the council tax system to micro businesses via the business rates system, and launching a Help To Green initiative to spur on-site renewable generation.
• Delivering on pledges to end the UK’s poor payment culture by making Audit Committees directly responsible for ensuring best practice within supply chains.
• Expanding and making permanent a statutory sick pay rebate for small firms whilst continuing with incentives in England to take on apprentices and T Level placements.
• Widening eligibility for the Help To Grow Digital and Management initiatives to the 750,000 small firms currently excluded from them.
• Simplifying the R&D tax credit system to make it more accessible for small businesses without having to use paid intermediaries.

FSB is also encouraging the Government to build on the success of the Refugee Entrepreneurship Pilot Programme. Existing research shows that migrants seeking asylum are considerably more likely to start an enterprise than other groups. Elsewhere in its letter to the Chancellor, FSB advocates reform of Universal Credit to make it more supportive of entrepreneurs without start-up capital, not least in regards to the minimum income floor. The New Enterprise Allowance, which has helped to create more than 100,000 businesses, was withdrawn at the start of the year. The group’s letter follows publication of the ONS’s latest Business Insights study, which finds that 5% of business owners “have low or no confidence of surviving the next three months”. The latest BEIS statistics show that there are 5.6 million firms across the UK, indicating 280,000 are at imminent risk of collapse. A quarter (25%) of enterprises in the hard-hit accommodation & food services sector are still not fully trading, according to the ONS, and the majority of firms are concerned about performance over the coming month: “the top two concerns were inflation of goods and services prices (21%) and energy prices (15%).” FSB National Chair Martin McTague said: “When we look back at this tumultuous period, next week’s Spring Statement will, for better or worse, be seen as a turning point. “The Chancellor has a choice: plough on with damaging tax hikes, or take steps to protect the most fragile and empower small firms to deliver his ‘culture of enterprise’ vision. “He rightly talks about the need to invest in capital, people and ideas. However, that investment cannot happen so long as surging operating costs are depleting cash reserves and disposable incomes. Pulling the rug from under small research-intensive firms with the removal of incentives would make a bad situation worse. “The time to deliver a low tax, high investment, dynamic economy is now, not later in the political cycle. The Chancellor cannot control the wholesale price of gas and oil, but he can control tax policy.”

Derby-based Specialist Contractor, Cawarden, has celebrated the achievement of its demolition director and board member, Malcolm Lowes, who has become an associate member of the Institute of Demolition Engineers (IDE) – the professional body that exists to promote and foster the science of demolition engineering. Malcolm – who has over 40 years’ demolition engineering experience – attended a special IDE Graduation and Awards Ceremony on 25 February at The Royal Armouries in Leeds to be presented with his associate grade achievement. To achieve the professional industry membership, Malcolm completed a rigorous assessment process involving a formal application, exam and face-to-face interview. Malcolm Lowes, Cawarden demolition director, said: “I am thrilled to have achieved my associate level grade with the IDE and I’m now looking forward to continuing to further my professional development and industry knowledge to achieve my full IDE membership within the next 2 years. “The IDE is an excellent organisation that provides a host of learning and networking opportunities as well as promoting the professionalism and credibility of the demolition industry that I am so proud to be a part of.” William Crooks, Cawarden Managing Director, said: “We are continually working to develop the skills and knowledge of our employees through investment in training and development. Malcolm’s achievement is a huge testament to his unwavering loyalty and dedication to the industry over the last four decades. “Such high standards of industry excellence means our clients can be assured of our ability to deliver quality projects. It also shows to those thinking about getting into the industry what can be achieved with hard work and that you can make a rewarding and prosperous career in the demolition industry.” During his career, Malcolm has worked on hundreds of projects across the UK involving the demolition of all types of structures including bridges, high-rise concrete towers, steel-framed industrial units, redundant healthcare sites, dangerous buildings, complex power, quarry, chemical and manufacturing sites – and everything in between. Whether Cawarden is working in a city centre with significant space constraints, residential areas, industrial or infrastructure sites – Malcolm oversees all of the key processes and procedures required to manage a project, safely and efficiently within the constraints that each of these unique environments present. Working with the site teams he ensures every project is meticulously planned, every detail is covered and costs are kept in check to deliver the best outcome. Malcolm’s ability to build a rapport with clients and sub-contractors, his professional approach, excellent levels of communication and interpersonal skills have garnered a wealth of repeat business.

Theresa Waddingham, payroll director at Streets Chartered Accountants, offers some useful information for those managing payroll. As we head into the final few weeks of the 2021/22 tax year, and following last year’s Autumn Budget announcements and the news of the National Insurance rise that preceded it, what do those charged with payroll need to know, to start preparing for the new tax year on April 6? National Insurance (NI) changes A new UK-wide 1.25% “Health and Social Care levy” will come in from April 2022, which will increase National Insurance contributions for employers and working age employees. Employers will have to pay 15.05% NI on employees earning over £175 per week (£9,100 per year), and employees will start paying 13.25% NI on earnings over £190 per week (£9,880 per year). Employees’ NI will increase to 3.25% on earnings over £967 a week (£50,270 per year). However, from April 2023, the levy will be separated from NI on payslips and shown as a separate “tax,” and National Insurance will return to the 2021/22 rates. At this point working adults above state pension age will also start contributing. The message “1.25% uplift in NIC funds NHS, health & social care” will be added by software providers to highlight that the levy is to help fund public services. Aside from the headline NI changes from the 2023/24 tax year, the Levy will have implications for payroll in terms of things like:

• P11Ds, Benefits in Kind, Payrolling of Benefits and IR35
• P60s, P45s and P11D forms
• Attachment of Earnings/Court Orders.

If you have employees under 21 or apprentices under 25, you will need to check that you’re using the correct NI category, letter M for those under 21, or H for apprentices under 25. Tax code changes No changes were made in the Autumn Budget 2021 to personal allowances. This means that unless you receive an amended tax code notification for an employee, the standard tax code will remain at 1257L. The basic rate limit also remains at £50,270, including the personal allowance, while the higher rate limit also remains unchanged. Employment allowance You will still be able to claim the £4,000 employment allowance for 2022/23 providing your employers’ Class 1 NI bill was less than £100,000 in the 2021/22 tax year. National Minimum/Living Wage increases The new National Living Wage rate will come into effect from 1 April 2022. This is five days before the new tax year begins on 6 April.

• National Living Wage (23 and over) increases from £8.91 per hour to £9.50
• National Minimum Wage (21-22) increases from £8.36 per hour to £9.18
• National Minimum Wage (18-20) increases from £6.56 per hour to £6.83
• National Minimum Wage (under-18s) increases from £4.62 to £4.81
• The Apprentice Rate increases from £4.30 per hour to £4.81

In addition to these perhaps key changes payroll managers and employers may need to consider the National Insurance holiday for veterans, along with the new NI categories for employees based in the newly created Freeports. Looking at workplace pension contributions, whilst there are no changes for the coming tax year, private sector employers still have to automatically enrol eligible employees into the business’s auto enrolment workplace pension scheme. Time to outsource payroll? The last few years for many charged with managing an organisation’s payroll have certainly, not least with the furlough arrangements etc, been a real challenge in terms of ensuring compliance and meeting deadlines. As such, as we start to approach the new tax year, it could be a good time to consider the potential benefits of outsourcing payroll. Certainly, payroll bureaus like Streets Payroll continue to see interest from those looking to relieve the burden of managing payroll in-house.

Perfect for establishing new contacts, the free to attend Property & Business Investment Lincolnshire Expo will return on Wednesday 27 April 2022 at The Bentley Hotel, Lincoln. Business Link is a proud partner of the well targeted event aimed at the Construction, Property, Business, Investment, Finance, Professional Services and related B2B markets. To see who is exhibiting click here. Opening at 9am, the expo will also host a seminar, and as the exhibition closes, it will roll directly into an informal, open buffet style network lunch – tickets are just £25 plus vat and can be ordered and paid for directly online. Spaces for the lunch are limited, so order as soon as possible to avoid disappointment. Tina King, of Business Shows Group, said: “It’s been a long time in the making thanks to the pandemic, but we are finally nearly there, The Property & Business Investment Lincolnshire Expo is gearing up to be one of the best to date!” To attend the event, register for free here. To generate opportunities by exhibiting at the event, click here. Purchase tickets to the networking lunch here. Meet more potential clients in one amazing cost effective day, than it would take months out on the road.