Coronavirus Business Strategies Reply

Surprised OMG shocked woman

Number of cases

As of 9am on 11 March 2020, 27,476 people have been tested in the UK, of which 27,020 were confirmed negative and 456 were confirmed as positive. Six patients who tested positive for COVID-19 have died.

Government Support for Businesses

Measures to mitigate the effect of the coronavirus outbreak include:

  • Statutory sick pay for “all those who are advised to self-isolate” even if they have not displayed symptoms
  • Business rates for shops, cinemas, restaurants and music venues in England with a rateable value below £51,000 suspended for a year
  • A £500m “hardship fund” to be given to local authorities in England to help vulnerable people in their areas
  • A “temporary coronavirus business interruption loan scheme” for banks to offer loans of up to £1.2m to support small and medium-sized businesses
  • The government will meet costs for businesses with fewer than 250 employees of providing statutory sick pay to those off work because of coronavirus
  • Plans to make it quicker and easier to get benefits for those on zero hours contracts
  • Benefit claimants who have been advised to stay at home will not have to physically attend job centres

https://www.bbc.co.uk/news/uk-politics-51835306

What if your employees contract the virus?

 According to a government press release issued 3 March 2020, up to one-fifth of employees may be absent from work during peak weeks of the present outbreak. Obviously, you will not want infected employees in the workplace. You will need to review your contracts of employment with affected staff to determine your liability to cover sick pay.

Statutory sick pay (SSP) amounts to £94.25 per week (2019-20) and for staff who qualify, can be paid for a maximum period of 28 weeks. If you have payroll software the management of SSP is normally included.

You may also benefit from contingency planning. How can you reorganise tasks if key staff are incapacitated? Spending a little time to plan for these possibilities may save you head-aches should staff be unable to work.

Have you considered Home Working arrangements?

Is it possible to organise a home working scheme for staff? This will not be feasible for all staff, production workers or retail staff for example, but staff that spend their days in front of a computer screen could be supplied with a laptop and work from home.

Where appropriate, there are a wealth of online meeting services that could be utilised to keep in touch with home workers.

Do you depend on the services of sub-contractors?

If yes, you may want to organise a list of alternative contractors you can call on if needed. This should help to minimise disruption if your present sub-contractors are unable to work.

How secure are your supply lines?

You may want to consider sourcing alternative suppliers if your present supply lines are adversely affected by the flu. China, as we know, supplies a growing number of components many of which find their way into British made goods.

Should you be rethinking your business plans?

It is difficult to gauge the possible spread of the Coronavirus but if epidemic conditions arise there is a real possibility that we may see a downturn in global, and therefore UK, economic activity. This, combined with any Brexit fallout, may indicate that the time is right to rethink your business plans for 2020.

Be prepared.

steve@bicknells.net

Do Directors need to list directorships where they had no income? Self Assessment Returns Reply

This question comes up every year.

“I am a director of lots of companies but only get paid by one company, do I need to list them all?”

Some people make up dummy Payroll Numbers and list directorships, some people list them in the notes, some don’t list them at all, what is the right thing to do?

The answer has to be to follow the HMRC Guidance

 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787630/SA150_2019.pdf

As you can see its says

received income as a company director’

‘held an office, such as chairperson, secretary or treasurer and received income for that work

If you didn’t receive income you don’t need to report it as it will not affect your tax.

steve@bicknells.net

 

 

Let’s make CSR Videos Reply

Bournemouth Chamber of Trade & Commerce

E Mail Signature

Steve Bicknell, Vice President of BCTC, was invited by Alice Stevens to set the over 100 students at AUB a task to make short videos and films to present CSR.

The social media videos will focus on

1. Why do Millennials want to work for Ethical CSR businesses
2. Why do consumers prefer to buy from CSR and ethical businesses
3. What is CSR (covering – Charities, Employees, Buy local and Sustainability)

The work will be completed by the students in early January 2018.

Special thanks to Alice and the Students.

Find out more about CSR at https://csr-online.org/

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Xero Certified Migration and Making Tax Digital Advisors Reply

Steve Bicknell has just become a Certified Migration and Making Tax Digital Advisor under the MTD course launched by Xero.

Making Tax Digital starts in April 2019 for businesses over the VAT threshold, but many businesses owners are unaware of the impact it will have on their business and that they will need API software in order to submit returns.

From 2020 we expect to see all businesses – Landlords, Sole Traders, Partnerships, Companies, Charities – with an income over £10,000 having to report their Profit and Loss to HMRC every quarter and then prepare a 5th return for year end adjustments.

This is a massive change and many businesses are currently using incompatible software which will not create digital links, is not approved by HMRC and is not API compliant.

If you want to discuss how Making Tax Digital will affect your business, please get in touch or come to one of our MBL seminars.

https://stevejbicknell.com/making-tax-digital/

steve@bicknells.net

Do you pay SDLT on Properties Transfers within a Group? 3

Finance Act 2003 Schedule 7 has the answer

http://www.legislation.gov.uk/ukpga/2003/14/schedule/7

Many Properties Transactions within Groups of Companies are Exempt from SDLT

SCHEDULE 7
Stamp duty land tax: group relief and reconstruction and acquisition reliefs

Part 1

Group relief
1(1)A transaction is exempt from charge if the vendor and purchaser are companies that at the effective date of the transaction are members of the same group.
(2)For the purposes of group relief—
(a)“company” means a body corporate, and
(b)companies are members of the same group if one is the 75% subsidiary of the other or both are 75% subsidiaries of a third company.
(3)For the purposes of group relief a company (“company A”) is the 75% subsidiary of another company (“company B”) if company B—
(a)is beneficial owner of not less than 75% of the ordinary share capital of company A,
(b)is beneficially entitled to not less than 75% of any profits available for distribution to equity holders of company A, and
(c)would be beneficially entitled to not less than 75% of any assets of company A available for distribution to its equity holders on a winding-up.

steve@bicknells.net

 

It’s Official! — Bournemouth Chamber of Trade & Commerce Reply

 

Our Social Enterprise has been formed. CORPORATE SOCIAL RESPONSIBILITY AWARD LTD CIC Company number 11259411 Our official launch will be at our BH Banter on Monday 9th April at 6pm at Ocean Beach Hotel, 32 East Overcliff Drive, Bournemouth BH1 3AQ. We want you to be there!!! book in now https://www.bournemouthchamber.org.uk/event/bhbanter-april/ The purpose of the […]

via It’s Official! — Bournemouth Chamber of Trade & Commerce

How to succeed at Speed Networking Reply

Speed Networking is great fun, so don’t miss the chance to do it at our next BH Banter on Monday 5th March. To be successful at Speed Networking you need to do the following Prepare You will only have a couple of minutes to explain who you are, what you do and why people want […]

via How to succeed at Speed Networking — Bournemouth Chamber of Trade & Commerce

Who cares about corporate social responsibility? — Bournemouth Chamber of Trade & Commerce Reply

Bournemouth Chamber of Trade and Commerce care! For us Social Responsibility encompasses Supporting Charities Supporting Employees Supporting Local Businesses If we want a sustainable, inclusive and successful local economy all three of the corner stones above are vital. Surely no one can deny the importance of the three areas of social responsibility we have outlined. […]

via Who cares about corporate social responsibility? — Bournemouth Chamber of Trade & Commerce

Why do we leave Self Assessment Returns until the last minute? Reply

It seems to me that there are basically two types of taxpayer and the split is pretty even.

The first type are ‘Organised Planners’, they prepare things as early as possible, work out what tax might be due and how they will pay it, look at ways to change things and file early. They will always pay less tax because they have had a chance to consider their options – Pensions, Gift Aid, SEIS, EIS and other things that reduce tax – they also tend to have a full set of records neatly posted on their accounting system.

The second type are ‘Just in Time’, whatever the deadline, they put things off. The problem with this is that often this means things get forgotten and paperwork gets lost, there is no time to prepare or plan and the tax will be payable immediately.

The added problem this year is that Credit Card Payments are no longer an option

In 2016, personal credit card payments for tax numbered 454,000 making of total of £741 million and resulting in £3.2 million in bank fees.

These payments were largely made by small businesses, looking to manage bulk payments by putting them on a credit card that could then be paid off over time.

Below are some statistics from HMRC from 2012, but I think that little has changed and the statistics will be similar this year.

I don’t think anyone would say they enjoy paying tax or filling in forms, so in some ways you can understand why some people put it off and do it ‘just in time’.

Last year HMRC reported

29 January was the busiest day with 513,271 returns completed – that’s more than 21,386 returns received per hour. The busiest time was between 14:00 and 15:00, with 50,358 customers – 14 per second – clicking submit.

If you haven’t done your return, do it now, don’t wait till 11.59 on 31st January.

Steve@bicknells.net