Welcome to our round up of the latest business news for clients. Please contact us if you want to talk about how these updates affect your business. We are here to support you!

Fuel pump crisis and the looming “challenging” winter   

With panic buying at the pumps, the shortage of HGV drivers, and a looming winter energy crisis many of us are running our businesses in an ever increasing level of uncertainty. 

If you are concerned about the future of your business then take some time to reflect on where you are and what could happen in the next few months. It is now vitally important for all businesses to plan ahead for a range of scenarios. Cash flow and business planning in these uncertain times may appear difficult but there are some practical steps you can take to minimise potential disruption to your business:

  • Review your Budgets and set realistic and achievable targets for the remainder of 2021.
  • Get your employees involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.  
  • Review and flow chart the main processes in your business (e.g. Sales processing, order fulfilment, shipping etc.) and challenge the need for each step.
  • Put extra effort into making sure your relationships with your customers are solid.
  • Review your list of products and services and eliminate those that are unprofitable or not core products/services.
  • Pull everyone together and explain the business strategy and get their buy-in.

Please talk to us about cash flow planning for the next few months, we can help with a template so you can do this yourself or work together to produce estimates for a variety of scenarios.

House price review – Office for National Statistics (ONS) latest survey released

The ONS have released their latest analysis identifying the types of areas that are seeing the fastest house price growth during the coronavirus pandemic, and who could be at risk of being priced out.

Rising house prices and private rents mean that some workers are at risk of being priced out of living in rural and coastal areas, contributing to skill shortages in the tourism and hospitality industries that their local economies rely on. Young and low paid workers in tourist hotspots are increasingly facing the prospect of being unable to afford to live there.

Despite falling from a record high in June, the average UK house price (£256,000) increased by 8.0% in July 2021 compared with the previous year.

House prices were rising at three times the national rate in some rural and coastal areas in July, such as Conwy in North Wales (25.0%), North Devon (22.5%) and Richmondshire in the Yorkshire Dales (21.4%), continuing a trend seen during the coronavirus (COVID-19) pandemic.

Meanwhile, the seven areas that recorded house price falls in July were all London boroughs.

House prices are increasing partly because of temporary changes to taxes paid on property purchases (including Stamp Duty in England and Northern Ireland), but they also reflect a shift in consumer preferences with growth being driven by rural and coastal areas.

Prospective home buyers are seeking more space, with prices for detached houses (9.0% growth in July) consistently rising faster than terraced houses (7.7%) or flats (6.1%).

As a result, people living in rural and coastal areas – particularly the young and those on lower incomes – are at risk of being priced out of the housing market.

This could be contributing to hospitality businesses being unable to fill vacancies, with the industry being predominant in tourist areas and containing a high proportion of young and low paid workers.

See: Coronavirus and house price growth – GOV.UK (www.gov.uk)

HMRC Publish Guidance on New Penalty Regime for Late Returns

Finance Act 2021 introduced a new regime for late VAT returns that will apply to VAT periods commencing on or after 1 April 2022 and to other returns at a later date.

HMRC have now published detailed guidance on the new rules. The reforms come into effect:

  • for VAT taxpayers from periods starting on or after 1 April 2022
  • for taxpayers within MTD for Income Tax Self-Assessment (ITSA), from the tax year beginning 6 April 2024 
  • for all other ITSA taxpayers, from the tax year beginning 6 April 2025

The new regime will be a points-based system and will operate in a similar way to motoring penalties in that the points will elapse after a period of time depending on the regularity of the returns.

For details see: Penalties for late submission – GOV.UK (www.gov.uk)

Tips and Gratuities should go to staff not the employer

The Government is to make it illegal for companies not to pass on tips to their employees. This comes after some major restaurant chains were accused of keeping 10% of tips given to staff.

The Department for Business Energy and Industrial Strategy (BEIS) have announced that new legislation, to be introduced within a year, would help about two million people in the hospitality industry. An updated consultation response was published on 24 September:

See: Tipping, gratuities, cover and service charges consultation: government response (publishing.service.gov.uk)

The current rules for taxing tips, gratuities and service charges are complex and, whilst all tips are taxable, national insurance does not currently apply where the payment is given directly to the staff member.

For current HMRC guidance on the taxation of tips, gratuities and service charges:

See: Tips at work: Tips and tax – GOV.UK (www.gov.uk)

Deadline for Covid-19 sick pay

The UK Government has updated its guidance for claims made under the Coronavirus Statutory Sick Pay Rebate Scheme. Employers can only claim back statutory sick pay paid to employees due to Covid-19 who were off work on or before 30 September 2021.

The Coronavirus Statutory Sick Pay Rebate Scheme will repay employers the Statutory Sick Pay paid to current or former employees. You must submit or amend claims on or before 31 December 2021.

See: Check if you can claim back Statutory Sick Pay paid to employees due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)


Private providers of coronavirus (COVID-19) testing

The UK government has updated the lists of and information about private providers who have self-declared that they meet the government’s minimum standards for the type of commercial COVID-19 testing service they offer.

See: Private providers of coronavirus (COVID-19) testing – GOV.UK (www.gov.uk)

UK Stickers have now replaced GB stickers 

The guidance on what UK goods vehicle operators need to do to carry out international road haulage has changed to refer to the change from GB stickers to UK stickers as UK stickers have now replaced GB stickers.

There will be new rules for transporting goods to or through Europe from 2022. These will affect you if you use vans or heavy goods vehicles (HGVs).

See: Carry out international road haulage – GOV.UK (www.gov.uk)

UK Government seeks views on contingency proposals for mandatory certification

A policy proposal has been published for mandatory vaccine certification as a contingency measure under the government’s Autumn and Winter Plan.

The government states it remains confident ‘Plan A’ will prevent the NHS from facing unsustainable pressure and certification will not be required but mandatory vaccine-only certification could potentially be introduced in certain settings as part of ‘Plan B’.

The proposal for mandatory COVID certification in a Plan B scenario fulfils the commitment, set out in the Autumn and Winter Plan, to provide organisations with more detail about the proposed certification regime that would be introduced as part of Plan B.

The UK government invites feedback on these proposals. A call for evidence runs until 11 October.

See: Government seeks views on contingency proposals for certification – GOV.UK (www.gov.uk)

Gift Aid Awareness Day 2021

Gift Aid is a tax relief for individuals which enables them to give the income tax or capital gains tax that they pay directly to a charity on top of their donation. In effect it adds 25p for every £1 donated to a charity. Gift Aid is an important tax relief worth £1.3 billion to the charity sector. This year’s Gift Aid Awareness Day is taking place on Thursday 7 October 2021. Charity Finance Group (CFG) are asking UK-based charities, small, medium and large, to spread the “#TickTheBox” message far and wide on 7 October 2021. CFG have produced a 2021 campaign pack for use, which includes logos, posters, infographics and a banner.

See: Charity Finance Group | Gift Aid Awareness (cfg.org.uk)

Allergen Labelling Changes For Prepacked For Direct Sale (PPDS) Food

On 1 October 2021, the law on allergen labelling for pre-packed for direct sale (PPDS) foods changed. This means that any food business selling PPDS foods must include full ingredients on the product label with allergenic ingredients emphasised within that list. 

To help support food businesses, the Food Standards Agency (FSA) has launched a PPDS Hub featuring useful information including new labelling guidance for PPDS foods and guides that will be helpful to specific sectors including bakery, butchers, fast food and takeaways, mobile sellers, restaurants, cafes and pubs, and schools. The guides give practical information on PPDS and how these changes could impact a food business.

See: Allergen labelling changes for prepacked for direct sale (PPDS) food | Food Standards Agency

Industrial Energy Transformation Fund Phase 2 Autumn 2021 

IETF Phase 2 provides grant funding for feasibility and engineering studies, industrial energy efficiency and deep decarbonisation projects. 

The Department for Business, Energy and Industrial Strategy (BEIS) has opened the new Industrial Energy Transformation Fund (IETF) Phase 2: Autumn 2021 competition window.

Businesses in England, Wales and Northern Ireland can bid for a share of up to £60 million in grant funding through the new competition window, which is open for applications until 6 December 2021.

See: Industrial Energy Transformation Fund (IETF) Phase 2: Autumn 2021 – how to apply – GOV.UK (www.gov.uk)

Pump priming grants for Horizon Europe proposals

Grants of up to £5,000 are now available to help UK businesses collaborate with partners in other countries to develop bids for Pillar 2 of Horizon Europe. 

The funding, provided by the UK’s Department for Business, Energy & Industrial Strategy, aims to develop collaborative activity between UK and EU/associated countries’ entities. This activity should focus on Pillar 2 of Horizon Europe, which is Global Challenges and European Industrial Competitiveness.

The purpose of this call is not to implement the proposed projects that will be submitted to Horizon Europe, but to give the UK-based partners the resources needed to collaborate with EU organisations and stakeholders to further develop the idea and the market opportunities.

The funding can be used in a variety of ways, including feasibility studies, application advice and training, partnership building, and dedicated time to take forward an application.

Proposals are welcome:

  • in all disciplines – engineering, natural sciences, medical sciences, humanities, and social sciences
  • from research institutes and universities based in the UK and any other type of organisations eligible for Horizon Europe funding, including SMEs, charities and companies

The first wave of this call closes for submissions on 13 October 2021 at 17:00.

See: Horizon Europe Pump Priming Collaboration between UK and EU Partners | The British Academy

Climate change will have to be considered for any future Welsh developments

Future developments in Wales will have to take into account future flooding and coastal erosion risk caused by climate change the Welsh Government has confirmed. In a UK first, developers will have to work with flood risk and coastal erosion maps that have been made available today that not only show current risk levels, but also the risk posed by climate change.

The new planning policy advice known as Technical Advice Note 15, or TAN 15 for short, will inform future local development plans and decisions on planning applications in areas at risk of flooding and coastal erosion. It will be used by the Welsh Government, local planning authorities and developers to direct development away from areas at risk of flooding and coastal erosion.

TAN 15 is clear that new developments of homes, the emergency services, schools and hospitals, must not be located in areas of high flood risk without strong flood defences.

See:  Climate change will have to be considered for any future Welsh developments | GOV.WALES

Welsh Government confirms international travel changes and calls for PCR test retention

The Welsh Government has confirmed it will merge the green and amber travel lists into one and remove the requirement for pre-departure testing for those fully vaccinated. The changes are intended to be made in alignment with the new UK government system. A decision on moving away from PCR tests is still to be made but the Welsh Government has outlined its opposition to the change and is calling on the UK government to reverse its decision. The Welsh Government is also considering which countries to expand the vaccine certification recognition system to over the coming weeks.

See: Welsh Government confirms international travel changes and calls for PCR test retention | GOV.WALES

Residential tenancies – extension of the period of protecting tenants from eviction

The Coronavirus Act 2020 (‘the 2020 Act’) includes a range of powers for the Welsh Ministers to both respond to and manage the transmission of the virus. In relation to housing law, section 81 and Schedule 29 to the 2020 Act delay when a landlord is able to evict a tenant by temporarily increasing the period of notice that must be given before a possession claim is made to the court.

The Schedule applies to all landlords who have granted tenancies under the Rent Act 1977 and the Housing Acts 1985, 1988 and 1996. Six months’ notice is required for notices served in respect of all protected tenancies, statutory tenancies, secure tenancies, assured tenancies; assured shorthold tenancies, introductory tenancies, and demoted tenancies, except – in relation to all – where those notices relate to anti-social behaviour or domestic violence.

Schedule 29 applies to notices served during the relevant period, which was due to end on 30 June 2021. The relevant period may be extended by the Welsh Ministers beyond 30 September 2021 using the powers set out in paragraphs 1(2) and 14(1) of Schedule 29.

On the 22 September Julie James, Minister for Climate Change confirmed the Regulations will extend until 31 December 2021 the relevant period to which the provisions of Schedule 29 will apply.

See: Written Statement: Use of powers under the Coronavirus Act 2020: Residential tenancies – extension of the period of protecting tenants from eviction (22 September 2021) | GOV.WALES

Go North Wales Tourism Awards 2021

The Go North Wales Tourism Awards are back for 2021 and is now open for entries. The purpose of the awards is to celebrate and recognise excellence in the region’s hospitality and tourism sectors.

The closing date for entries is 10 October 2021.

See: Go North Wales Tourism Awards | Venue Cymru 2021