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25/09/2012

Cuts to red tape will 'boost business', says Government

Small and medium sized businesses are most likely to benefit from new steps to reduce business regulations, according to the Government.

The package of new measures, which includes simplified processes to speed up the termination of employment, will give 'firms greater flexibility and confidence in managing employees' and benefit employers and employees, it said.

The parliament long review of employment law, including the Red Tape Challenge, is aiming to abolish unnecessary and complex red tape regulations which the Government said has 'damaged flexibility, created perverse incentives, increased business risk and unnecessary administration.'

Making the announcement, Business secretary Vince Cable said the Government 'have been looking across the range of employment laws with a view to making it easier for firms to hire staff while protecting basic labour rights.'

It has given proposals for various changes to employment regulations, including:

Support for an extension of settlement agreements, which would make it easier for firms to dismiss under-performing workers and minimise the number of costly and time-consuming employment tribunal cases. A consultation is now open with the Advisory, Conciliation and Arbitration Service (ACAS) agreeing to provide an appropriate code of practice
A cap on the compensation awarded for unfair dismissal claims
Proposals to streamline employment tribunals through greater power to dismiss 'weak' cases
Call for evidence on the efficiency of TUPE rules - designed to protect workers when a business is taken over by another owner
Recommendations on improving guidance for SMEs on the ACAS code of practice on discipline and grievances.
According to a Government press release, the Organisation for Economic Co-operation and Development (OECD) ranks the UK's flexible labour market as one of the best in the world - although Vince Cable acknowledged that more could be done to help small businesses.

New and amended business regulations typically come into effect in April and October each year, with next month's biggest shake-ups including auto-enrolment of eligible workers into a workplace pension scheme and changes to business audits and annual accounts.

30/08/2012

Companies House
PLC Accts to 29/02/2012 must file by 31/08/2012 to avoid penalty. 1st Accts differ- info http://ow.ly/djzZC


Companies House
Ltd Accts to 30/11/2011 must file by 31/08/2012 to avoid penalty. 1st Accts differ- info http://ow.ly/djzWw

List of latest Guidance relating to filing obligations under the Companies Act 2006

24/08/2012

State pension pay outs range from £7 to £230
23 August 2012

British pensioners are receiving anything from £7 to £230 a week in state pensions, according to data from the Department for Work and Pensions (DWP).

The difference of more than £200 a week, equating to £10,000 a year, has led the Government to confirm that the current pensions system will be replaced by a new single-tier pension.

The DWP said that state pension regulations had multiplied so much over recent decades and made the system so 'complex' that people were unable to work out how much they would receive each week, and budget properly for their needs.

According to latest data, around 130,000 people get £7 or less a week while the same number receives £230 or more a week.

The current state pension is made up of the basic state pension and various additional state pension entitlements, with the wide range in pay outs resulting from the large number of additional top-ups available.

The amount of state pension individuals receive is also based on their national insurance contributions throughout their working life. Historically, both state and private pensions are lower for women as they tend to receive a smaller state pension for missing national insurance contributions while caring, and because it is earnings related.

The replacement simple flat-rate pension will be set above the level of the means test, currently estimated to be around £140 a week. The Government hopes the increase will aid those with little or no entitlement to the top-up pensions, most of whom are women.

Pensions minister Steve Webb said that the range of state pension pay outs was 'staggering.'

"The current system is so complex and would baffle even Einstein. Worse, if people have no idea what they will get, they can't make sure they have enough savings for their retirement."

"We can't go on playing roulette with pensions. A flat-rate single-tier state pension will restore simplicity and give people certainty instead of chance. And it will provide a sure foundation for further saving," he said.

Ros Altmann, director general of Saga said that radical reform was long overdue.

"At the moment the UK State pension system relies far too much on mass means-testing which particularly penalises those who have tried to save for their retirement."

"The new pension system should be fairer and simpler and no longer treat women as second class citizens but we still need to see the details of the new framework and how the Government plans to implement it in order to ensure fairness."

The Chancellor first announced details to reform the state pension system in the March Budget adnd further details are to be published later in the year.

24/08/2012

A quarter of higher rate taxpayers fail to use pension tax relief
17 August 2012

One in four higher rate tax payers say they do not contribute to a pension scheme, despite the tax reliefs available, research from Prudential has found.

The national study said this equated to around 216,000 UK employees who are missing out on up to £438 million a year in pension tax reliefs and a boost to their retirement savings.

Questioning those earning between £42,275 and £149,999, 21 per cent said they could not afford to contribute to a pension scheme, while one in eight (13 per cent) said they 'did not see the point' in saving for retirement.

A larger number (17 per cent) said they did not know why they had not contributed into a pension a scheme.

Prudential estimates that an average higher rate tax payer - those paying income tax at 40 per cent- who contributes £425 a month into a pension fund would receive a tax relief of £85 a month, equating to £1,020 a year. An additional £1,020 a year in higher rate tax relief could also be claimed.

Prudential's tax expert Matthew Stephens said that 'turning down what is effectively free money simply does not make sense'.

"Pension saving offers valuable tax reliefs to all workers and particularly to higher rate taxpayers. Basic rate 20 per cent tax relief is available at source plus up to an extra 20 per cent from HMRC for higher rate taxpayers," he said.

According to Prudential, around 58 per cent of the estimated 900,000 higher rate taxpayers in the UK contribute to defined contribution pension schemes, with a further 15 per cent being members of either non-contributory or defined benefit schemes.

Last year, the Treasury gave £32.9 billion worth of tax reliefs to those saving into registered pension schemes.

Currently, the maximum amount of contributions that can qualify for tax relief is £50,000, after being reduced from £255,000 at the start of the 2011/12 tax year.

Matthew concluded: "It is worrying that so many higher rate taxpayers say they cannot afford to save into a pension despite earning healthy salaries. The good news is that it is never too late to take action on saving for retirement and we urge all workers to seek advice on long-term retirement planning."

20/08/2012

Unemployment falls to 2.56 million

Unemployment in the UK fell by 46,000 in the three months to June, figures from the Office for National Statistics (ONS) show.

There are now 2.56 million people out of work in the UK, taking the unemployment rate down to eight per cent of the economically active population.

It means that 71 per cent of the population are now in employment, the highest figure since the three months to May 2009. An additional 201,000 people found work between April and June, up 0.4 per cent on the previous quarter.

The largest jump in employment occurred in London, believed to be a result of the thousands of jobs created from the Olympic Games.

Work and pensions secretary Ian Duncan Smith said: "These are positive and encouraging figures demonstrating the strength of our private sector - notwithstanding the difficult economic times it is still creating jobs, the vast majority of which are full time. Unemployment is falling and the claimant count is down."

David Kern, chief economist at the British Chambers of Commerce (BCC) warned there were still 'areas of concern'.

"Youth unemployment is unacceptably high, and too many people are still being forced to work part-time as they cannot find a full-time job. While unemployment is likely to increase over the next 12-18 months, the peak may now be lower than the 2.9m figure we predicted in our last forecast."

While full time employment increased by 130,000 to reach 21.41 million, the number of part-time workers also increased by 71,000 to reach 8.07 million, the highest figure since records began.

The number of employees and self-employed people who said they working part-time because they could not find a full time job rose by 16,000 taking the total to 1.42 million - also the highest figure since the records began two decades ago.

Elsewhere, total pay rose by 1.6 per cent on a year earlier, while regular pay packets, excluding bonuses rose by 1.8 per cent on the year. Around 1.59 million claimed for jobseeker's Allowance (JSA) in July, down 5,900 compared with June.

20/08/2012

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20/08/2012

UK inflation unexpectedly rises

Inflation in the UK unexpectedly rose to 2.6 per cent in July, up from 2.4 per cent in June, figures from the Office for National Statistics (ONS) indicate.

The rise in the Consumer Price Index (CPI) was mirrored by the Retail Prices Index (RPI) which also rose to 3.2 per cent from 2.8 per cent the previous month.

A rise in transport costs, particularly air fares, and retailers reigning in discounts on clothing and footwear were the biggest upward contributors. Air fares jumped by 21.7 per cent in July, said the ONS.

Vicky Redwood at Capital Economics called the first rise since March 'disappointing' but likely to be a 'temporary blip.'

The latest figures could make it more difficult for inflation to fall back towards the Bank of England's two per cent target by the end of the year, although many business groups and leading economists remain optimistic that the target is still obtainable.

However, David Kern chief economist at the British Chambers of Commerce (BCC) commented: "Recent increases in world food prices because of the drought in the US provide a reminder that there are still upward pressures."
The rise in inflation is coupled with news today that commuters will face rail fare increases of up to three times more than inflation.

Rail fares are currently set according to the rate of RPI inflation plus one per cent. Today's inflation rise will come alongside a change to the law which will allow fares to increase by RPI inflation plus an additional three per cent, due to come into force on 1 January 2013.

It is speculated to push fares up by an average 6.2 per cent in the New Year.

20/08/2012

A quarter of higher rate taxpayers fail to use pension tax relief

One in four higher rate tax payers say they do not contribute to a pension scheme, despite the tax reliefs available, research from Prudential has found.

The national study said this equated to around 216,000 UK employees who are missing out on up to £438 million a year in pension tax reliefs and a boost to their retirement savings.

Questioning those earning between £42,275 and £149,999, 21 per cent said they could not afford to contribute to a pension scheme, while one in eight (13 per cent) said they 'did not see the point' in saving for retirement.

A larger number (17 per cent) said they did not know why they had not contributed into a pension a scheme.

Prudential estimates that an average higher rate tax payer - those paying income tax at 40 per cent- who contributes £425 a month into a pension fund would receive a tax relief of £85 a month, equating to £1,020 a year. An additional £1,020 a year in higher rate tax relief could also be claimed.

Prudential's tax expert Matthew Stephens said that 'turning down what is effectively free money simply does not make sense'.

"Pension saving offers valuable tax reliefs to all workers and particularly to higher rate taxpayers. Basic rate 20 per cent tax relief is available at source plus up to an extra 20 per cent from HMRC for higher rate taxpayers," he said.

According to Prudential, around 58 per cent of the estimated 900,000 higher rate taxpayers in the UK contribute to defined contribution pension schemes, with a further 15 per cent being members of either non-contributory or defined benefit schemes.

Last year, the Treasury gave £32.9 billion worth of tax reliefs to those saving into registered pension schemes.
Currently, the maximum amount of contributions that can qualify for tax relief is £50,000, after being reduced from £255,000 at the start of the 2011/12 tax year.

Matthew concluded: "It is worrying that so many higher rate taxpayers say they cannot afford to save into a pension despite earning healthy salaries. The good news is that it is never too late to take action on saving for retirement and we urge all workers to seek advice on long-term retirement planning."

We can help you plan for retirement. Please talk to us to find out more.

20/08/2012

Households concerned about finances while job security improves
People in the UK remain pessimistic about their household finances and the property market but feel that job security is on the up, research from YouGov has found.

Although its overall UK household economic activity tracker deteriorated by two points to 94.3 from the previous month - and remains below the neutral level of 100 - it is still slightly above its long running average of 93.

The majority of households (67 per cent) consider their financial situation to be stable for August, despite a quarter reporting that their finances had in fact deteriorated on the month.

Elsewhere, eight per cent of respondents believe their job security is in a more comfortable position, while 76 per cent reported no change and 16 per cent considered their job to be less secure than in July.

The improvement in people's outlook regarding job security is likely to be a result of a quarter of employees believing work place activity was higher in July than in June.

Dominic White, chief European economist for Absolute Strategy Research (ASR) said although concerns remain over the stagnant property market, there was some optimism.

"The jobs market continues to strengthen, business activity looks to have picked up and consumers suggest they have a few more pounds in their pocket to spend," he said.

More than a quarter surveyed said they have less money to spend than a month ago, however, with this number at 40 per cent in early 2011, the lower level of inflation is likely to be bolstering purchasing power.

Consumers however, are not confident that the improvement will last, with two in five expecting this to get worse again over the next 12 months.

The index's measure of household economic activity has failed to move above 100 since May 2010.