1 June 2023 – Due date for corporation tax due for the year ended 31 August 2022.

19 June 2023 – PAYE and NIC deductions due for month ended 5 June 2023. (If you pay your tax electronically the due date is 22 June 2023).

19 June 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2023.

19 June 2023 – CIS tax deducted for the month ended 5 June 2023 is payable by today.

1 July 2023 – Due date for corporation tax due for the year ended 30 September 2022.

6 July 2023 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2023 – Pay Class 1A NICs (by the 22 July 2023 if paid electronically).

19 July 2023 – PAYE and NIC deductions due for month ended 5 July 2023. (If you pay your tax electronically the due date is 22 July 2023).

19 July 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2023.

19 July 2023 – CIS tax deducted for the month ended 5 July 2023 is payable by today.

The transfer of a business as a going concern (TOGC) rules concern the VAT liability on the sale of a business. Normally the sale of the assets of a VAT registered or VAT registerable business will be subject to VAT at the appropriate rate.

Where the sale of a business includes assets and meets certain conditions the sale will be categorised as a TOGC. A TOGC is defined as 'neither a supply of goods nor a supply of services' and is therefore outside the scope of VAT. Under the TOGC rules no VAT would be chargeable on a qualifying sale.

All the following conditions are necessary for the TOGC rules to apply:

• The assets must be sold as part of a 'business' as a 'going concern'. In essence, the business must be operating as such and not just an 'inert aggregation of assets'.
• The purchaser intends to use the assets to continue the same kind of business as the seller.
• Where the seller is a taxable person, the purchaser must be a taxable person already or become one as the result of the transfer.
• Where only part of a business is sold it must be capable of separate operation.
• There must not be a series of immediately consecutive transfers.
• There are further conditions in relation to transactions involving land.

The TOGC rules can be complex, and both the vendor and purchaser of a business must ensure that the rules are properly followed. The TOGC rules are also mandatory which means that it is imperative to establish from the outset whether a sale is or is not a TOGC. For example, if VAT is charged in error, the buyer has no legal right to recover it from HMRC and would have to seek to recover this 'VAT' from the seller.

The Bank of England’s Monetary Policy Committee (MPC) met on 10 May 2023 and voted 7-2 in favour of raising interest rates by 25 basis points to 4.5% in a move to try and continue to tackle continued inflation. This is the twelfth consecutive time that the MPC has increased interest rates with rates now the highest they have been since 2008.

This means that the late payment interest rate applied to the main taxes and duties that HMRC charges will increase by 0.25% to 7%.

These changes came into effect on:

• 22 May 2023 for quarterly instalment payments; and
• 31 May 2023 for non-quarterly instalments payments.

The repayment interest rates applied to the main taxes and duties that HMRC pays interest on will increase by 0.25% to 3.5% from 31 May 2023. The repayment rate is set at the Bank Rate minus 1%, with a 0.5% lower limit.

A new law that stops employers from withholding tips from people working in the hospitality, leisure and services sectors has come into force. The Employment (Allocation of Tips) Act 2023 received Royal Assent on 2 May 2023.

The Bill makes it unlawful for businesses to hold back service charges from their employees, ensuring staff receive the tips they have earned. The measures are expected to come into force in about a year, following a consultation and secondary legislation.

This means that more than 2 million workers will have their tips protected. HMRC has estimated that this new law will mean an estimated £200 million a year will go back into the pockets of hard-working staff by retaining tips that would otherwise have been deducted.

A new statutory Code of Practice will also be developed in order to provide businesses with advice on how tips should be distributed among staff. This Code is being developed and will be subject to formal consultation later this year.

Workers will also be given a new right to request more information relating to their employer’s tipping record, which will help them to bring forward a credible claim to an employment tribunal.

The Business and Trade Minister said:

'As people face rising living costs, it is not right for employers to withhold tips from their hard-working employees. Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.'

The government has announced a number of new measures to help millions of people boost their future savings. One of these measures is a simplification of the Help to Save scheme.

The Help to Save scheme was launched by the government in September 2018 to help those on low incomes to boost their savings. Under the scheme, those eligible could save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account.

It was announced as part of the Spring Budget measures that the government will extend the Help to Save scheme by 18 months, on its current terms, until April 2025. The government will examine how the scheme can be made simpler by reforms to how its bonus is calculated, the length of time an account can be open for and eligibility requirements, all with the aim of enhancing long-term savings habits.

The government also wants to address the fact that parents who have not claimed Child Benefit could miss out on building their state pension. Those affected will in future be able to claim National Insurance credit retrospectively. Further details will be published in due course.

Homeowners who make their properties more energy efficient could see their mortgage rate cut under a new government-backed pilot.

More than £4m has been awarded to green finance projects to support those who want to make environmentally friendly changes to their property.

Perenna Bank will receive more than £193,000 in government funding to help develop their long-term, fixed-rate mortgage to incentivise customers to make their homes more energy efficient by offering to reduce their mortgage rate.

Another trial will see buy-to-let landlords add the cost of making properties more energy efficient on to their mortgage – enabling them to borrow the money for the improvements and include it in their monthly repayments.

Ashman Bank Limited will be awarded £200,000 to design and develop this, which will assess a property’s energy efficiency, provide options on how it can be improved and incorporate the cost of carrying out the work on to the duration of the mortgage.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “The Government has put in place long-term commitments to ensure homes across the country have greater energy efficiency to reduce bills, drive down energy use and lower emissions.

“We are supporting these organisations to develop fresh and innovative ways of helping more people get better access to energy efficiency measures, such as loft insulation, double glazing and heat pumps.”

New mortgage product

The projects are among 26 green finance products being developed and tested, backed by £4.1 million of government funding.

They are aimed at encouraging and helping homeowners make their properties more energy efficient, with measures such as loft insulation and double glazing. This in turn will help them save more than £460 a year on their energy bills – one of many ways the Government is helping ease the cost of living for families across the country.

Other projects successful in bidding for funding include Aviva Equity Release UK Limited, who will receive £87,612 to design a service that allows homeowners to access equity in their property through a specialist lifetime mortgage, freeing up cash to improve the energy efficiency of their homes.

Clydesdale Bank PLC, trading as Virgin Money, will receive £171,000 for a product that will offer bespoke energy efficiency products for customers’ properties, after carrying out a survey to outline the improvements needed.

Scott Brown, Head of Equity Release Pricing at Aviva, said: “Aviva is delighted to have secured funding from the Government to explore building a green mortgage solution for later life lending.

“Aviva and the Department for Energy Security and Net Zero will co-fund our customer research to explore the development, which will aim to enable later life households to make home energy efficiency improvements, making their homes more comfortable to live in, reducing energy bills and helping drive a reduction in the carbon footprint of the UK’s housing stock.

“Given the value in the research being produced, Aviva commit to sharing the output when finalised with the wider industry to support industry level change.”

Net-zero aspiration

Craig Calder, head of secured lending at Virgin Money, said: “To be part of the innovative Green Home Finance Accelerator project is important for Virgin Money as we look to reinforce our aspiration to halve our financed emissions by 2030 and deliver net zero by 2050.

“Working with industry experts Sero and Rightmove is an opportunity to research, test and learn what consumers want before we take a proposition to market – enabling us to provide a great product for customers while at the same time making a positive impact on the environment.”

Following a six-month discovery phase period, all 26 Green Home Finance Accelerator projects will be able to apply for larger grant awards, between £200,000 and £2 million to enable them to pilot their green finance products and services.

Taxpayers are missing the chance to claim for work-related expenses – and many of those who do, fail to receive a full refund by using agents.

Now HMRC has stepped in to remind workers that they can make their own claims directly through GOV.UK.

More than 800,000 taxpayers claimed tax refunds for work expenses during the 2021 to 2022 tax year, but while the average claim was £125, more than 70 per cent of claimants missed out on getting the full amount they were due because they used an agent to make their claim instead of doing it themselves.

HMRC advises it is quick and easy to claim a tax refund directly through its online portal on the GOV.UK website, and is the only way to guarantee receiving 100 per cent of the repayment – with no small print and no middlemen taking a cut.

Don’t be out of pocket

Victoria Atkins, Financial Secretary to The Treasury said: “Nobody should miss out on the full claim of a tax rebate – and by going straight to HMRC people can avoid being left out of pocket because of unscrupulous repayments agents.

“Thanks to our Spring Budget reforms, if someone no longer wants an agent involved in their claim, they’ll be able to cancel it so any future rebates will go to the taxpayer in full.”

Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, said: “Every penny counts and we want to make sure employed workers are getting what they deserve – their hard-earned cash straight back into their pockets. To make a claim just search ‘employee tax relief’ on GOV.UK. It is the quickest way of getting a tax refund on your work-related expenses and ensures you get 100 per cent of the money back.”

What you can claim for

Submitting a claim through HMRC’s online portal is straightforward and takes about 15 minutes. Customers can use the handy online tool to check eligibility and a full list of work expenses they can claim including:

• uniforms and work clothing
• buying work-related equipment
• professional fees, union memberships and subscriptions
• using their own vehicle for work travel (excluding journey from home to work)

Customers who already have a Government Gateway account can follow the step-by-step guidance to submit their claim. Those who need to set an account up can do so quickly and easily via GOV.UK.

For customers who are considering using a repayment agent, HMRC is reminding them to be aware that an agent always charges for services – in some cases up to 50 per cent of the value of the claim. And while initially it may seem simpler, customers will need to supply the agent with the same information they could use to make the claim themselves using HMRC’s free online portal.

It is important customers understand what they are signing up to. Before signing a contract with a repayment agent, they should research the company and always check the small print to ensure they understand what commission is being charged and how much of their tax refund they are likely to receive back.

Customers can find out more about how to make a work-related expense claim and what type of expense they can claim at GOV.UK.

Speak to us if you need further advice on making a claim.

For small and medium-sized enterprises (SMEs), effective financial management is vital for success in a competitive business landscape.

Harnessing the power of management accounting, coupled with cloud accounting software, can provide SMEs with powerful tools to enhance decision-making, streamline processes and fuel growth.

Enhanced decision-making

Management accounting provides SMEs with real-time, accurate financial information and analysis. By leveraging cloud accounting software, businesses can easily access and analyse key performance indicators (KPIs), cash flow statements and profitability reports.

This enables owners and managers to make informed decisions promptly, identify areas of improvement and respond to market changes effectively. With greater visibility into their financial data, SMEs can optimise resource allocation, identify cost-saving opportunities and prioritise investments that drive business growth.

Streamlined processes and efficiency

Cloud accounting software offers SMEs a host of automation features, reducing the burden of manual bookkeeping tasks. By automating processes such as invoicing, expense tracking and financial reporting, SMEs can save time and reduce the risk of errors.

Real-time synchronisation of financial data allows for seamless collaboration among team members, accountants and other stakeholders. Additionally, cloud software ensures data security and eliminates the need for manual back-ups. With streamlined processes and improved efficiency, SMEs can focus on core business activities, improve productivity and allocate resources to value-added initiatives.

Scalability and flexibility

Cloud accounting software provides SMEs with scalability and flexibility. As businesses grow and their financial needs evolve, cloud software can easily accommodate expanding operations and adapt to changing requirements.

Cloud solutions offer the advantage of anytime, anywhere access to financial data, empowering SMEs to stay connected and make informed decisions on the go.

Cloud-based platforms often integrate with other business applications, such as customer relationship management (CRM) systems, inventory management tools and payroll software, providing a holistic view of the business and facilitating seamless data flow across different functions.

Cost savings

Adopting cloud accounting software eliminates the need for significant upfront investments in hardware and infrastructure. SMEs can leverage cost-effective subscription models, paying only for the features and resources they require.

Reduced reliance on manual processes and improved data accuracy can help minimise errors, penalties and unnecessary expenses. This cost-saving approach frees up capital for other strategic investments and growth initiatives.

Management accounting, combined with cloud accounting software, empowers SMEs with accurate financial insights, streamlined processes, scalability, flexibility and cost savings.

By embracing this approach, SMEs can make data-driven decisions, optimise operations, and position themselves for long-term success in today’s competitive business environment.

Embrace the power of technology and unleash the full potential of your SME.

Families looking for support during the cost-of-living crisis will be reassured by action being taken to help control the price of road fuel and groceries.

While many of the factors driving price increases are not competition related, the Competition and Markets Authority (CMA) has a vital role to play in giving consumers assurance that competition in critical markets is working well, so they can exercise choice with confidence.

Sarah Cardell, Chief Executive of the CMA, said: “The rising cost of living is putting people and businesses under sustained financial pressure. The CMA is determined to do what it can to ensure competition helps contain these pressures as much as possible.”

Road fuel

The CMA has provided an update on the Road Fuel market study it began last year.

While the evidence shows that the majority of fuel price increases are due to global factors, such as the Russian invasion of Ukraine, indications are that higher pump prices cannot be attributed solely to factors outside the control of the retailers. Based on evidence gathered as part of the Road Fuel market study, the higher prices drivers are paying at the pumps appear in part to reflect some weakening of competition in the road fuel retail market.

Evidence gathered by the CMA indicates that fuel margins have increased across the retail market, but in particular for supermarkets, over the past four years. As a result of these increasing margins, average 2022 supermarket pump prices appear to be around 5p per litre more expensive than they would have been had their average percentage margins remained at 2019 levels.

Although supermarkets still tend to be the cheapest retail suppliers of fuel, evidence from internal documents indicates that at least one supermarket has significantly increased its internal forward-looking margin targets over this period. Other supermarkets have recognised this change in approach and may have adjusted their pricing behaviour accordingly.

While the level of engagement with the study has varied across supermarkets, the CMA is not satisfied that they have all been sufficiently forthcoming with the evidence they have provided.

The CMA will now conduct formal interviews with the supermarkets’ senior management to get to the heart of the issues.

Sarah said: “Our Road Fuel market study is nearly complete. Although much of the pressure on pump prices is down to global factors including Russia’s invasion of Ukraine, we have found evidence that suggests weakening retail competition is contributing to higher prices for drivers at the pumps. We are also concerned about the sustained higher margins on diesel compared to petrol we have seen this year.”

Groceries

As cost-of-living pressures have grown, the CMA has been working to understand how well markets in essential goods and services are working. Along with road fuel, it identified groceries as an early priority, and started work earlier this year looking into unit pricing practices online and instore.

While global factors have also been the main driver of grocery price increases, and at this stage the CMA has not seen evidence pointing to specific competition concerns in the grocery sector, it is important to be sure that weak competition is not adding to the problems.

Sarah said: “Grocery and food shopping are essential purchases. We recognise that global factors are behind many of the grocery price increases, and we have seen no evidence at this stage of specific competition problems. But, given ongoing concerns about high prices, we are stepping up our work in the grocery sector to help ensure competition is working well and people can exercise choice with confidence.”

Factories producing some of the country’s best-known beers, cereals, soft drinks and cars will receive government support to reduce their energy costs and cut carbon emissions.

Heineken, Kellogg’s, Toyota and Britvic are among businesses across the UK to be awarded a share of £24.3 million government funding to help clean up their manufacturing processes and improve their energy efficiency.

The Industrial Energy Transformation Fund (IETF) supports businesses using high amounts of energy to reduce their fossil fuel using innovative low-carbon technologies. This will help companies save on their energy costs, which in turn will safeguard British jobs and help grow the economy – one of the government’s five priorities.

• Heineken is receiving £3.7 million to upgrade its Manchester Brewery, including installing technology to recover waste heat from the refrigeration systems used to cool their beer.
• Toyota in Derby is receiving over £282,000 to introduce new airless paint sprayers, which use static electricity instead of air, to reduce the amount of energy they need.
• Britvic Soft Drinks will use £4.4 million to implement new technologies, including a heat recovery system and Low Temperature Hot Water network, at its site in east London, where it produces drinks such as Tango and Robinsons.
• Kellogg’s in Wrexham will receive funding for a study assessing the possibility of recovering the waste heat from their cereal manufacturing processes to reduce their gas usage.
• Tate and Lyle Sugars, which supplies nearly half of all the sugar and syrup on UK supermarket shelves, is receiving over £71,800 to explore how to reduce natural gas use at their Thames Refinery.

Minister for Energy Efficiency Lord Callanan said: “We are leading the world in reaching net zero, having cut emissions by 48 per cent – but to keep up this progress and achieve our green goals, we’ve got to transform our industrial sectors, as some of the industries most critical to our economy are also those with the highest emissions.

“We’re backing them with government funding to use the latest technologies to cut their emissions and their reliance on fossil fuels – helping to future-proof these industries as we grow our green economy.

“This will not only cut their energy costs but also boost their competitiveness on the world stage, helping them thrive and protecting the thousands of jobs they offer across the country.”

Road to net zero

Energy-intensive industries are responsible for 11 per cent of the UK’s total emissions and represent over 70 per cent of UK industrial emissions. While the UK is making excellent progress on the road to net zero, decarbonising faster than any other G7 country, it is estimated that industry will need to cut its emissions by two thirds by 2035 for the UK to achieve its net zero target.

Matt Callan, Senior Director Supply Chain at Heineken UK, said: “We are proud to have ambitious targets when it comes to reducing our carbon footprint, within both our own operations and across our entire value chain. For over 150 years, we have been passionate about making a positive impact and more than ever it is clear that there is no time to waste in taking action to reduce carbon emissions.

“This investment and IETF funding will enable us to act faster, and with the commitment and passion of our colleagues and partners, will help us raise the bar at our Manchester Brewery to brew our beers in a more sustainable way.

“The project will make a significant contribution on our journey to carbon neutrality and provide us with the learnings to reapply across our other sites as we continue our journey to brew a better world.”

A total of £289 million is being made available to businesses through the IETF up to 2027 and these allocations take the amount awarded under the scheme so far to £61.4 million.