A survey released today by Burton-based solar panel retailer and installer, Project Solar UK, shows the real impact of the COP 27 summit on Brits behaviour. Following the coming together of nations to progress climate change initiatives, Brits were asked for their opinions  and understanding of what happened at the recent get together in Sharm El-Sheikh While 62% of those surveyed correctly said that it was a climate conference, 4% thought COP 27 was a TikTok channel, 5% thought it was a car model, 4% thought it was a famous landmark, 5% said it was a TV model and most worryingly, 20% admitted to not knowing what it was. In the aftermath of the highly publicised environmental event, the survey revealed some encouraging statistics: 68% stated that their household now takes steps to reduce waste 56% stated that their  household now takes steps to reduce emissions 69% stated that their household now takes steps to reduce electricity usage Trying to reduce how much expensive electricity we power through each day is clearly high on the agenda for two thirds of Brits. Project Solar UK, the country’s leading installer of solar panels, which convert the natural resource of the sun into energy, has seen enquiries rise by over 180% in the past 6 months from those who are keen to find alternative ways to heat and light homes and run  domestic appliances.  The company, with a base in Lancaster Business Park in Burton on Trent, is the leading retailer and installer of solar panels, and is managing installations across the country. Simon Peat, CEO of Project Solar UK, says, “Our survey shows that COP27 has piqued the interest of many people who are looking at real alternatives to burning fossil fuels for their energy.  People are taking practical steps to reduce their energy usage, emissions and waste and COP 27 has had a massive part to play in keeping these issues at the forefront of peoples thinking. Installing solar power in the home is a  way we can each address climate issues in a practical sense and we are here to offer free information and advice to anyone considering making the change.”

Luke Prout, corporate tax partner at Streets Chartered Accountants, offers a summary of the changes to Research and Development Tax Credits in the Autumn Statement. The Autumn Statement included a number of changes to Research and Development Tax Credits, and in particular a significant scaling down for Small and Medium Sized Enterprises (SMEs) of the generous reliefs available for undertaking qualifying Research and Development (R&D). Whilst R&D by larger companies has been significantly enhanced by the tax credits, the scheme’s application by SMEs has deemed to be less than effective or satisfactory, with in many cases it being misused, even abused, by those it seeks to support. As a result the Chancellor has reduced the level of relief available to SMEs for undertaking R&D. The scaling down of the reliefs was perhaps to be expected based on the projection that without reform the cost of providing the relief could double to almost £9bn by 2027 and that such a financial commitment could perhaps not be supported or justified at a time when the Chancellor is seeking to address a £55bn black hole. It is also the case that earlier this year, Prime Minister Rishi Sunak promised reforms when he was Chancellor, saying that in spite of spending “huge and rapidly growing sums” on the scheme it was not doing enough to boost growth. In part this may have a large impact for smaller businesses, to allow them to receive cash funding for undertaking R&D. In contrast the separate R&D tax relief scheme for large companies was actually enhanced in the Autumn statement to provide larger companies increased benefits. Perhaps this is the starting point for the two schemes to eventually be merged into a combined singular scheme, which means we probably have not seen the end of these changes and there may well be amendments in next year’s Budget and/or Autumn statement. Summary of changes SME Scheme From April 2023, businesses classed as an SME will no longer receive an uplift of 130% for every £1 spent, instead this will reduce to 86% and for loss making companies that can sell (surrender) their losses to HMRC, the repayable credit will be reduced from 14.5% to 10%. However, bear in mind, that the Corporation tax rate from April 2023 changes from 19% to 25%, so it would be expected that the repayable tax credit would be reduced based on previous changes in the rate of Corporation tax (albeit it has never been consistent). For profit making SMEs this is a reduction of 11% and for loss making SMEs this is a reduction of around 15%. Large Scheme This is aimed at large companies, groups and certain SMEs that receive grants or are subcontracted to carry out R&D. The calculation is slightly different, and in general, there is a 4-5% increase in the benefit for large companies, and one would expect this to be increased further next year to eventually align the two schemes. What should businesses be considering now? If you are an SME facing a reduction in the level of R&D tax relief you will be able to receive post 6^th April you may want to consider making a claim before March 31^st 2023. If you are classed as a large company and undertaking qualifying R&D you may want to defer submitting a claim until the start of the new financial year in April 2023 so ensuring you optimize the value of the relief received. If you want advice and guidance about either your eligibility for making a claim and/or assistance in preparing and submitting a claim, we strongly advise you to contact a tax specialist who is experienced in R&D reliefs such as a corporate tax partner at a firm like Streets Chartered Accountants. See this article in the December edition of East Midlands Business Link Magazine here.

It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Reshma Sheikh, chairperson at Octavian Security UK. My key concerns (like many others) for the UK economy next year are: rising inflation, high interest rates and the threat of global recession. Like many other sectors, the security industry is also dealing with a post-Brexit recruitment crisis. According to latest research more than 20,000 officers have been lost due to retirement and departures following Brexit and Covid-19. The British Security Industry Association reports the security industry will need to recruit, train and license more than 62,000 new security officers in the next 12 months to meet the growing demand for security services. That said, I’m hopeful that the industry will survive these challenging times. Security services are sometimes considered a necessary evil, required by insurance companies. However, the risks posed have increased due to opportunists, as well as sophisticated networks of criminals gangs targeting assets on sites and high value personal goods. We have seen a growing demand for our services. The need to keep assets and people safe has grown. I believe that, in 2023, the industry will evolve and the historic perception of security guards will change. There will also be greater diversity – which can only be welcomed.