Understanding environmental, social and governance factors. Environmental, social and governance (ESG) is a set of standards that measures how green, socially conscious and well-run a business is. By looking at your business through an ESG lens, you may be able to predict how sustainable it is in the long run. In this article, we’ll discuss…

Jeremy Hunt announced his second fiscal statement and first Budget since becoming Chancellor against a backdrop of fragile public finances, an ongoing cost of living crisis, and increased Government borrowing. In January, the Chancellor appealed to the nine million ‘economically inactive’ people in the UK, specifically retirees, claiming: “to those who retired early due to…

The Association of Taxation Technicians (ATT) welcomes a report by the House of Lords expressing concern over proposed reforms to the R&D scheme. The report, published on 31 January, highlights the need to pause any upcoming changes to the SME and R&D expenditure credit (RDEC) schemes. Some of the changes are due to come into…

Speaking at Bloomberg’s European HQ in London on 27 January, Chancellor Jeremy Hunt outlined plans to grow the UK economy and turn the country into “one of the most prosperous countries in Europe”. Hunt set out four ‘pillars’ for growth, including ‘enterprise’, ‘education’, ‘employment’ and ‘everywhere’. Ideas include turning the UK into the next ‘silicon…

Despite a record 11.7 million people submitting their tax returns on time, over 300,000 taxpayers missed the self-assessment deadline. On 31 January, 861,085 taxpayers filed online to meet the deadline, some with minutes to spare – 36,767 individuals filed in the last hour before the deadline. The peak filing hour on the day was between…

The Bank of England (BoE) has raised its interest rate by 0.5% to 4% following a monetary policy committee (MPC) meeting on 2 February. This is the tenth consecutive time the Bank has increased interest rates, resulting in the highest base rate in 14 years. The MPC voted by a majority of 7-2 to increase…

Making Tax Digital for income tax self-assessment (MTD for ITSA) was originally set to roll out in 2018, but the road to personal tax digitalisation has been relatively rocky to date. While the Government successfully introduced MTD for VAT for returns starting on or after 1 April 2022, MTD for ITSA has been postponed five…

Businesses at any stage in their life cycle can benefit heavily from creating and implementing a business plan. Not only is a business plan there to map out your goals and aspirations, but also to identify any financial risks and operational challenges you may encounter. According to research conducted by Fundsquire, 20% of small businesses…

After multiple policy U-turns and much uncertainty, the main rate of corporation tax will rise from 19% to 25% from 1 April 2023, affecting companies with profits of £250,000 and over. The legislation provides that small companies with profits up to £50,000 will continue to pay corporation tax at 19%, with profits between the two…

HMRC is inviting people to comment on draft guidance relating to the upcoming R&D tax credit relief reforms. The reforms, expected to be implemented from 1 April 2023, will change how R&D works in practice and set out additional information requirements when applying for the relief. Anyone wishing to comment can do so until 28…

MPs are demanding urgent improvements to HMRC’s “unacceptable service standards” after a parliamentary report discovered an “eye-watering” £42 billion is owed to HMRC from unpaid tax. The report also highlighted a dramatic drop in HMRC staffing levels, with 6,000 employees being cut over the past five years. Dame Meg Hillier, chair of the committee, said:…

Soaring inflation remained a key concern for businesses at the end of 2022, according to the latest quarterly economic survey from the British Chambers of Commerce (BCC). Of the 5,600 firms surveyed – 92% of which are SMEs – 80% said that inflation was a growing worry for their business in Q4 of 2022. Nearly…

The Government has announced a new energy bills discount scheme (EBDS) for UK businesses, set to replace the current energy bills relief scheme (EBRS) once it ends in March. The new support package will last from 1 April 2023 to 31 March 2024, giving organisations a discount on high wholesale prices instead of capping energy…

One in four business leaders (24%) believe the Government’s energy bill relief scheme (EBRS) has removed a “serious risk” to their business, according to a poll by the Institute of Directors (IoD). Of the surveyed 500 or so directors whose energy bills made up more than 5% of their costs, 11% stated they have been…

Large businesses owe their small suppliers £23.4 billion in late payments, according to the Government, sparking a review by the Department for Business, Energy and Industrial Strategy (BEIS). Business Secretary Grant Schapps said he would launch the review to scrutinise payment practices and “prevent small firms from being ripped off by larger companies”. The review…

Monthly GDP grew by around 0.5% in October 2022, following 0.6% drop in September, according to the Office for National Statistics (ONS). Despite the recovery in monthly figures, the UK economy nevertheless contracted by 0.3% in the three months to October. The rise in GDP in October follows a 0.6% fall in September, which “was…

The Treasury has confirmed that Making Tax Digital for income tax self-assessment (MTD for ITSA) will be delayed a further two years until April 2026. According to First Secretary to the Treasury Victoria Atkins, this phased approach will give businesses more time to prepare and adapt to new ways of working. The minimum reporting level…

A side hustle is a piece of work or a job that an individual can get paid for in addition to their main job. From driving for a ride sharing company to tutoring online, copywriting, and more, a side hustle could be any commercially viable endeavour. The practice became as popular as ever in the…