November 2022 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.
Key Dates Coming Up
Corporation tax due – 1 December
for accounting periods ended 28 February 2022 where not payable by instalments
VAT returns and payments due – 7 December
for month or quarter ended 31 October 2022
Corporation Tax due – 14 December
Quarterly instalment for “very large” companies with year end 31 March 2022
CIS returns due – 19 December
for month ended 5 December 2022
PAYE, NICs, student loan deductions and CIS deductions due – 22 December
for month ended 5 December 2022 paid electronically
Deadline for online submission of Self Assessment – 30 December
for tax year ended 5 April 2021
Due date to file Corporation Tax – 31 December
for companies with 31 December 2021 year end
Due date to file company accounts with Companies House – 31 December
for limited companies with 31 March 2021 year end
Rail Strike Dates in December
Rail strikes lasting 48 hours at a time have been announced for December 2022. These are due to take place Tuesday 13 and Wednesday 14 December, and
Friday 16 and Saturday 17 December 2022. The rail industry explains that it is working hard to minimise the effect that this will have on services, but it is inevitable that some services will be cancelled or severely disrupted. They say it is likely that there will be a very limited service on these days with no trains at all on some routes.
Services may also start later on days following the end of the strike action. It is recommended to check routes before you travel using journey planner services.
December Strike Dates
- Tuesday 13
- Wednesday 14
- Friday 16
- Saturday 17
UK Businesses Trial 4 Day Working Week
Over a hundred companies in the UK have signed up to trail a four-day working week. This refers to a working week of 32 for employees, without a cut to the workers’ full pay. The 4 Day Week Campaign hopes the firms, employing 2,600 staff in total, will help demonstrate a transformative change to productivity. Campaigners believe that the typical 9 to 5, five day working week is outdated and no longer fit for purpose. They argue that businesses can improve productivity with a 4 day week, also known as working compressed hours, by getting the same amount of work done in fewer hours, and benefitting from the extra day of personal time. Employers interested in taking part can become accredited by the organisation pioneering the trial. Find out more from the 4 Day Week Campaign.
What Does the Cost of Living Crisis Mean?
The cost of living crisis is talked about all over the media to describe the effects of a slumped economy on real life household budgets. The cost of living is the amount of money you need to pay for basic expenses such as rent, food, energy bills, clothing and to maintain a decent standard of living. The cost of living is calculated using the rate of inflation. Inflation is the increase in prices of goods and services, over time. The rising cost of energy is a key reason why things are getting more expensive. High energy costs contribute to higher production costs for all products and services.
Then the war in Ukraine has contributed to this as it affects decisions about energy supply from Russia, causing prices to rise even further. The war also causes rising food prices as less essential grain is available for export from Ukraine. When the cost of living is high, normal people have less purchasing power, so businesses are competing for income, whilst their own production costs are also high.
Cost of Christmas
Rising costs of living from energy bills to weekly grocery shopping means that families across the UK are looking to cut costs wherever possible. And with Christmas on the horizon, that can prove to be a challenge. But how much does the average family spend at Christmas and where does that money go? It should come as no surprise that December proves to be a more expensive month for everyone, but especially for families. According to the Bank of England (BoE) the average household spends a monthly average of £2,500, with that total rising by more than £700 in December due to Christmas spending. The BoE says the average family spends an extra £740 in the run-up to Christmas, which works out at 29% extra at this time of year. BoE has found that usually physical products that only make up a small proportion of our spending for 11 months of the year, suddenly increase in December. In particular spending on video, music equipment and books grows the most. Whilst sales for computers and phones increases from 1.1% to 61% in December.
What we spend on tasty treats also increases as families stock up on mulled wine and mince pies for their Christmas festivities. Spending on food and alcohol goes up by an average of 20% and 38% respectively according to the data. By comparison, during the run-up to Christmas households curb spending in other areas. Spending on household goods such as paints and hardware goes down by 21%, as we delay DIY jobs until after the festive period.
Introducing New Partners Privalgo – 21 November 2022
If you deal in foreign currency you will know how volatile markets can be. All currencies rise and fall in value, throughout every single day. This can cause big risks if you exchange large amounts of currency. Either due to working Internationally, or a relocation, or buying a foreign property. The value of property for example can greatly magnify even small fluctuations in exchange rates. You can’t control, or sometimes even predict, exchange rates, but you can protect your finances by taking control of the risk. Privalgo offers solutions which allow you to lock in a great value exchange rate within a set timeframe. This means that whichever way the exchange rate goes, your payments will be protected. This safeguards the value of your payments and offers peace of mind, which we all know is priceless. Privalgo understands more than anyone how complex currency markets can be. This is why they get to know their clients thoroughly and are reactive to your specific requirements, shaping solutions to best suit your needs and goals. Meet our new partner.
Click our blogs to read more and follow us for updates and breaking news
Latest Autumn Financial Statement – 21 November 2022
The chancellor Jeremy Hunt has delivered his Autumn Statement on 17 November, which was originally planned for 31 October. Mr Hunt’s aim is to bring inflation under control, provide stability for the government and stimulate growth in the economy. In what has been described as a sombre Autumn statement, Mr Hunt spent under an hour outlining his plans to undo much of the tax-cutting mini-budget unveiled by his predecessor as chancellor, Kwasi Kwarteng, 55 days previous. In a deliberate tactic to avoid too many surprises, out of fear of causing markets to react skittishly, Mr Hunt released enough details ahead of the statement to help warm up the public to his difficult decisions. He said, “These are real challenges for families up and down the country, adding, “I’m not pretending these aren’t going to be difficult times, but there’s a plan, there’s hope – and if we follow this plan, if we stick with it, we can get through to the other side.” The government states that their priorities are stability, growth and public services. Read the guide in full.
How to Recession Proof Your Business – 15 November 2022
A recession occurs when gross domestic product (GDP) shrinks during two consecutive quarters. Official figures report that GDP shrank by 0.2%. A second consecutive quarter of negative growth, will technically place the UK in a period of recession. Fortunately there are steps you can take to recession proof your business. Beyond these figures, UK businesses are already feeling pressure from rising inflation, supply chain disruption, staffing and rising energy bills. As unsettling as news of a recession can be, building resilience into your business planning, can strengthen your organisation against such threats. Find out more here.
Client Referral Programme
We pride ourselves in treating our loyal clients with top notch perks and services. Our client referral programme is one way that we like to give back and reward you for doing business with us. You can recommend a friend to receive, up to £100 cash reward, per referral! All you have to do is recommend us – and make sure they tell us you sent them. We’ll do the rest
November Top Tips
How to save money during Christmas 2022
Make a list
Not a naughty or nice list, but a list of everything you expect to buy, be it gifts, food and drink or any other extras, like travel and accommodation. Include your expected costs and calculate what you can and cannot afford this year. Think about all the essentials before considering any extras like new decorations.
Keep track of your spending
Track your spending against your list to make sure you are sticking to your plan.
Do ‘family gifts’ or a Secret Santa
Perhaps not every friend and relation needs a gift. Bring this up ahead of time and agree on a spending limit. Perhaps in some cases a box of biscuits will cover the whole family. Or if you are spending the holiday season with friends you could opt for a Secret Santa game.
Buy second hand
There are so many bargains to be found second hand. If you have children who are expecting Christmas stockings, consider removing packaging from any brand new items, so that stocking fillers found at thrift fit right in with no questions asked.
Value your time
For many, the best childhood Christmas memories aren’t about beautifully orchestrated dinners, or the next must have toy. It’s quality time that is the most fun. Experiences that involve spending more time with parents or carers rank highly in most loved memories across the board. So make time for simple, fun activities with your loved ones, over spending over the odds on the latest trends. Think arranging a drive-by of the local light displays after dark and special hot chocolates together.
Arrange Christmas post early
If you are posting gifts using Royal Mail, make sure you send parcels and letters before the last posting date. The cut-off depends on where and how you send your post. For example, the last posting date for second class UK mail is Monday 19 December and for first class it’s Wednesday 21 December. With this year’s strikes, it’s worth allowing extra time if possible. For a full list of dates for 2022, see Royal Mail.
Prestige Business Management Works for You
At Prestige Business Management we can help your business understand the best solutions for the success of your business. Find out what we can do for you. Call us today on 0203 773 2927.