August 2021 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
Claim CJRS for August – 14th September
Deadline to claim CJRS for August 2021 claims
Corporation Tax Payment – 14th September
Corporation tax second quarterly instalment payment for very large companies with annual taxable profits exceeding £20m (reduced if company is a member of one or more 51% groups) with an accounting period beginning on 1 April 2021
PAYE Cheque Payment Deadline – 19th September
PAYE cheque payments for the month ended 5 September should reach HMRC by this date (22 September for electronic payments)
CIS online filing Deadline – 19th September
File online Construction industry scheme return for the month ended 5 September
Furlough Scheme Ends – 30th September
Officially known as the Coronavirus Job Retention Scheme (CJRS), furlough comes to a complete end on 30th September. Some will heave a huge sigh of relief, while others may well be made redundant.
Introducing Flagstone Smarter Cash Platform
At Prestige Business Management we continually seek collaborative partnerships with innovative platforms to make our clients’ cash work it’s hardest to add value. We are delighted to have formally partnered with Flagstone. A breakthrough solution to maximise your interest income and minimise risk. Flagstone is a simple, secure, digital cash deposit platform partnered with more than 40 banks to give you access to the UK’s best interest rates. Flagstone’s smarter cash platform provides you with access to more than 550 deposit accounts enabling you to earn more interest income and manage risk in a simple, safe way thanks to the platform’s intuitive functionality and efficient electronic execution. This partnership gives us another powerful platform to help us make your money work hard for you and your savings goals. Find out more about Flagstone Smarter Cash Platform.
Employers have been facing new challenges trying to fill their staff vacancies, as growth slows to a six-month low in August. A shortage of staff, pingedemic workforce disruption and disturbances to the supply chain have hampered UK businesses, forcing growth to slow down to the lowest rate in half a year. The Covid pandemic and Brexit have both contributed to the current National workforce shortage, with furloughed workers finding new jobs and EU nationals returning to their home countries. Contact us for guidance if you are experiencing difficulties with cash flow or hiring employees.
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DWP Responds to Calls to Lower Pension Age – 23rd August 2021
A petition signed by 76,972 signatories has called on the chancellor for a lower pension age. The petition argued that the state pension age should be lowered with “imminent effect” from 66 to 60 for both men and women due to the impacts of the pandemic on the jobs market to ‘free up jobs for young people’. It also highlights those who have been impacted by rapid uprating to their state pension age, mainly women. At present, the state pension increases each year in line with the rising cost of living seen in the Consumer Prices Index (CPI) measure of inflation, increasing average wages, or 2.5%, whichever is highest. Which is a Conservative manifesto pledge. This is known as the triple lock. It has proved to be an expensive policy for the government. Mr Sunak has given a broad hint that the government could temporarily break the pension triple lock this year in order to prevent the Treasury being landed with a £3bn uprating bill. Find out more here.
How to Teach Kids About Credit – 17th August 2021
Most people wish they had a better financial education early on. If you teach kids about credit it can set them up for lifelong financial security. Young people will not be given a big amount of credit if they have no credit history, but our practical guide can set them up for building a great credit score right from the start. Lenders like to see borrowers using less than half of their available credit ideally. Regular use little and often and making payments on time and in full, all boost a good credit score. These good habits can help pave the way for future life choices, like the opportunity to buy a car and the impact employment opportunities. So there really is every reason to teach kids about credit early and get them building a good score for when they may come to need it. Here is our quick guide for how to teach kids about credit to set them up for lifelong financial security with our practical guide suitable for any age.
HMRC Get Tough on Fraudulent Furlough Claims – 9th August 2021
In his 2021 budget announced in March, Mr Sunak promised tax reform in an attempt to raise £2.2 billion towards erasing the national deficit, alongside increased investment in compliance capabilities for HMRC to get tough on fraudulent furlough claims. The chancellor promised to sharpen up on fraud, tax avoidance and tax evasion, hoping to raise £2.2 billion over five years. Announced in July we are seeing HMRC get tough on fraudulent furlough claims. Whilst there are also concerns about abuse of bounce back loans, of which 35-60% are estimated to not be repaid. Additionally HMRC has reported record high volumes of scams against taxpayers. Reports of suspicious activity to HMRC have risen by over 70% in a year, which is staggering. To find out where you and your business stand, read the article here.
Long Term Asset Fund Analysis – 2nd August 2021
The Long Term Asset Fund plans to funnel billions of private pension savings into start-ups and new infrastructure projects. The government believes that making this scheme the default holding account for workplace pensions will provide vital backing for British start-ups and divert them away from seeking the capital they need from abroad. This scheme has been compared to an unresolved investment scandal which cost investors their life savings. These plans spell either high stakes risk or economic revolution. Would you volunteer your pension savings as alternative cash to help solve the housing crisis? Read the article in full here to help make up your mind.
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
August Top Tips
Due to a National workforce shortage, hiring the right candidate for the job can be challenging. Here are our top tips for hiring the perfect candidate:
1. Create a clear job description
Be very clear about the type of person you want to hire. Particularly the skills they will need and the amount (or the range) you are willing to pay. Keep an accurate record of each candidate, including their strengths, weaknesses and expectations. Interview with one or two other colleagues if possible, to help you compare and contrast these qualities for each candidate.
2. Determine who is responsible for recruiting
Calculate how much time it will take to recruit each new employee.
Think about all the tasks involved including:
- writing the job description
- advertising the job (online and offline)
- communicating with prospective candidates
- answering questions about the job and your business
- interviewing and screening applicants
- communicating with unsuccessful candidates.
You may not have time to do all of this. It might be more efficient to outsource this to someone in your team or a recruitment agency.
3. Ensure each employee has a National Insurance number
Every employee needs to have a National Insurance (NI) number. All employees must pay NI contributions to qualify for certain benefits including the state pension. If for any reason your new employee doesn’t have one, if they are a new arrival in the country for example, they can apply for an NI number online. You can verify a candidate’s NI number on HMRC’s website here.
4. Maintain accurate tax records
Employers are required by law to keep tax records for six years. It’s important that you keep them safe, secure and easily accessible. Prestige Business Management can help you select the right accounting software, which will also help you monitor the financial and tax status of your business in real-time, by keeping track of deductible expenses for example.
5. Understand your obligations
Your tax and employment responsibilities for your staff will depend on the type of contract you give them and their employment status. There are many different employment agreements including full-time, part-time, fixed-term, freelance, consultant and contract. New employees may not always know what to expect from the hiring process, so be sure to guide them and provide his information clearly, with a timeframe. Prestige Business Management can provide this information for you. Employers are legally required to have employers’ liability (EL) insurance as soon as you become an employer. Your cover must be for at least £5 million and it has to come from an authorised insurer. EL insurance is required to compensate an employee if they become injured at work. It protects your business if an employee sues for an injury or illness sustained at work. It is illegal to hire any employees without this insurance in place and you must display a copy of the EL insurance certificate in your workplace. The cost will depend on a number of factors including:
- the nature of your business
- the number of people you employ
- your previous insurance claims history.
6. Set up a payroll system
Prestige Business Management can help you set up the perfect payroll system depending on the size and nature of your business. Our knowledge will help you do the following:
- makes payroll simple to stay compliant
- pay your employees efficiently
- digitally files reports with HMRC
7. Keep a file for each employee
Keep accurate records for all your employees to support you with their pay and entitlements. Each employee’s file should include their:
- full name, address and contact details
- emergency contact details
- a signed copy of their employment contract (full-time or part-time)
- tax details
- preferred payment method and details, for example internet banking
- any other important information about them.
Create an electronic version of these details and back it up in the cloud with services like Box, Dropbox or Google Drive. These records must be kept for at least six years.
8. Make it easy for your employees to access all your cloud programs
Your employees may need access to non-confidential company information. Consider using a cloud based platform to provide this access like OneLogin, Okta or Google Cloud. You can set up each employee with access to personalised information. Set yourself up as an administrator, to manage restricted access content.
9. Be clear about goals and expectations
Define and agree what is expected from all of your employees from day one. They should already have a good idea about this from the interview process. Be clear about what you will provide in return. This is a professional relationship and it should be based on mutual trust, respect and honesty. The better you treat your employees, the harder they will work for your business.
10. Reward Excellent Work
Plan now you will retain and reward excellent work. There are many ways to do this other than salary and wages, for example incentives and non-financial rewards. Your employees are your company’s most valuable asset. If you get the hiring process right and look after your employees, they’ll stay with you longer and your business will perform better.
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.