The number of firms in significant financial difficulties is rising rapidly.

A growing number of UK businesses are at risk of going under as costs spiral and Covid loan repayments become due, according to a report from insolvency firm Begbies Traynor. Despite the lifting of COVID limitations, several businesses are still experiencing supply chain interruptions, and the cost of electricity and other inputs has risen dramatically. In other industries, hiring is difficult, and labour expenditures, including the minimum wage and national insurance contributions, have increased. Many UK households are looking for…

New company car advisory fuel rates have been published and took effect from 1 June 2022. The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car. The advisory fuel rates for journeys undertaken on or after 1 June 2022 are: Engine size Petrol 1400cc or less 14p 1401cc – 2000cc 17p Over 2000cc 25p Engine size LPG 1400cc or less…

HMRC has started to recover overpayments of Self-employment Income Support Scheme (SEISS) grants. From April, HMRC is writing to taxpayers whose entitlement to the fourth or the fifth SEISS grant has reduced by more than £100 to ask them to repay amounts that were overpaid. Entitlement to the fourth and fifth SEISS grants can be affected by an amendment to a tax return. HMRC’s letters include an assessment and a date by which you must make the repayment. If the…

Up to eight more nuclear reactors could be delivered to existing sites as part of the UK’s new energy strategy. The plan, which aims to boost UK energy independence and tackle rising prices, also includes plans to increase wind, hydrogen and solar production. Under the government’s new plans, up to 95% of the UK’s electricity could come from low-carbon sources by 2030. The energy security strategy includes the goal of producing up to 50 gigawatts (GW) of energy through offshore…

The Treasury has announced that it plans to recognise stable coins as a valid form of payment as part of a wider government initiative to ‘make Britain a global hub for crypto asset technology and investment’. The Treasury defines ‘stablecoin’ as ‘a form of crypto asset that is typically pegged to a fiat currency such as the dollar and is intended to maintain a stable value’. The government plans to bring stable coins within regulation, creating conditions for stable coin…

HMRC has named two tax avoidance schemes and their promoters for the first time, advising anyone involved to withdraw from them as soon as possible to prevent the build up of large tax bills. Both schemes involve individuals working as contractors agreeing to an employment contract under which they are paid the National Minimum Wage (NMW). The balance of their wage is paid as a loan to try to avoid national insurance and income tax. HMRC is letting taxpayers know…

HMRC has launched a new one-stop online shop designed to provide taxpayers with information on the tax reliefs and financial help available from HMRC. In a new section of the GOV.UK website, HMRC has listed financial support available to ensure individuals are not missing out. There is guidance on relief for childcare and work-related expenses, as well as information about savings and getting help if you cannot pay your tax bill. The shop is designed to make it easier than…

Data published by the British Chambers of Commerce (BCC) shows that UK export growth has been effectively stagnant for the past year. The BCC’s quarterly Trade Confidence Outlook revealed that the proportion of exporters reporting increased overseas sales was 29%, whilst 25% reported a decrease. Manufacturers were more likely to report increased export sales than business-to-business firms or business-to-consumer firms (such as online stores), the data showed. William Bain, Head of Trade Policy at the BCC, said: ‘UK exporters are…

HMRC has published the latest issue of the Employer Bulletin. The April issue has information on various topics including: Forthcoming deadlines Claiming employment allowance from April 2022 Student loans Coronavirus updates and information Official rate of interest Hybrid working. The Tell ABAB 2022 poll invites small businesses to give their thoughts on the tax system. You can also provide input on UK central government complaints standards by taking the Parliamentary and Health Service Ombudsman’s survey. For assistance with tax concerns,…

There are now more than a million workers missing from the workforce compared to pre-pandemic figures, according to a report published by the IPPR think tank. About 400,000 of these are no longer working because of health factors relating to the pandemic, including long Covid, according to the IPPR. The report suggests that unresolved, this ‘will drag down economic activity this year by an estimated £8 billion’. The nation’s health affects the economy in more ways than keeping workers away from…