3rdJun
News article

Women 'more likely to be on low pay', TUC research suggests

Research carried out by the Trades Union Congress (TUC) has suggested that women are more likely than men to be on low pay.

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Research carried out by the Trades Union Congress (TUC) has suggested that women are more likely than men to be on low pay.

The research showed that of an estimated 9.8 million key workers, almost two thirds are women. There are 2.6 million female key workers earning less than £10 an hour, according to the TUC.

Data published recently by the business group revealed that, at the current rate of progress, it will take until 2067 to achieve pay parity between men and women.

Frances O'Grady, General Secretary of the TUC, said: '50 years after brave women won the legal right to equal pay, coronavirus has confirmed that pay inequality is still rife in Britain today.

'Working women have led the fight against coronavirus, but millions of them are stuck in low paid and insecure jobs. That is not right.

'As we emerge from this crisis, we need a reckoning on how we value and reward women's work. Without proper change it will take decades to close the gender pay gap.'

2ndJun
News article

MPs open inquiry into £155 billion of tax reliefs

The Public Accounts Committee (PAC) has opened an inquiry into the UK's management of £155 billion of tax relief.

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The Public Accounts Committee (PAC) has opened an inquiry into the UK's management of £155 billion of tax relief.

The inquiry follows the February publication of a National Audit Office (NAO) report that identified over 300 such tax interventions, totalling £155 billion per year.

The NAO raised concerns about the effectiveness of management of tax expenditures by the Treasury and HMRC.

It found that there is no formal framework governing the administration or oversight of tax expenditures.

The NAO said that although the Treasury and HMRC have begun steps to increase their oversight of tax expenditures and more actively consider their value for money, these will not be enough on their own to address concerns.

Commenting on the inquiry, John Cullinane, Tax Policy Director at the Chartered Institute of Taxation, said: 'We greatly welcome the PAC taking up this important issue.

'Governance of tax reliefs in the UK is not systematic or proportionate to their value or the risks they carry. There is a mismatch between the significant effort in government and to an extent Parliament that rightly goes into new tax measures, and the relative lack of attention to how effective those measures prove over time. This is particularly the case with tax expenditures.

'Unless HMRC and the Treasury actively monitor the use and impact of tax reliefs, and act promptly to analyse increases in their costs, we cannot assume that these reliefs will be value for money.'

2ndJun
News article

Manufacturers call for coronavirus support

The coronavirus crisis has left many manufacturers on a cliff edge and in need of government intervention, Make UK has warned.

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The coronavirus crisis has left many manufacturers on a cliff edge and in need of government intervention, Make UK has warned.

The industry body says that as COVID-19 is putting a growing number of firms on the brink of collapse as production levels continue to fall.

In response, Make UK is asking the government to step in with direct state support to ensure the short-term survival of firms.

It said support should especially be targeted at the aerospace, car making and steel sectors.

The latest figures show that manufacturing continued to decline in May, although it was recovering from April's record low.

The IHS Markit/CIPS Purchasing Managers' Index (PMI) for the sector gave a reading of 40.7 for May.

This is up from 32.6 a month earlier, when the COVID-19 lockdown brought Britain's economy to an effective standstill.

Stephen Phipson, Make UK's Chief Executive, said: 'We are now in such uncharted territory that what would until recently been thought of as unthinkable is now very much the reality.

'While the support schemes in operation are providing significant support to the economy, there are some sectors and companies who are fundamentally sound businesses and were trading positively before the pandemic.

'Instead, however, they have now been driven to the cliff edge by the nature of this crisis and may not survive without direct government intervention.'

1stJun
News article

IPSE gives cautious welcome to extension of self-employed scheme

The government's decision to extend COVID-19 support for self-employed workers has met with a cautious welcome from the Association of Independent Professionals and the Self-Employed (IPSE).

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The government's decision to extend COVID-19 support for self-employed workers has met with a cautious welcome from the Association of Independent Professionals and the Self-Employed (IPSE).

Chancellor Rishi Sunak has announced that the Self-Employment Income Support Scheme (SEISS) will run again in August.

In August, those eligible under the SEISS will be able to claim a second and final grant.

The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months' worth of profits, and capped at £6,570 in total.

Commenting on the extension, Andy Chamberlain, Director of Policy at IPSE, said: 'It will be an overwhelming relief for many self-employed people that the government has heeded our calls and extended SEISS. The scheme is a vital lifeline for millions of people and it is absolutely right that the government keeps it running.

'However, it is disappointing that there will still be two months when employees can access support and the self-employed cannot. The government should watch the situation carefully and be ready to step in if the UK's self-employed need more support.

'It is also vital that the government does not ignore the self-employed who cannot access this scheme. At the moment, groups like freelancers working through limited companies and the newly self-employed have patently been forgotten. We urge the government to consider these groups and also help them through the coming months.'

1stJun
News article

Chancellor announces changes to Job Retention Scheme

Chancellor Rishi Sunak has announced changes to the government's Job Retention Scheme (JRS), which will be slowly wound down over the next few months.

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Chancellor Rishi Sunak has announced changes to the government's Job Retention Scheme (JRS), which will be slowly wound down over the next few months.

The changes mean businesses will be able to bring furloughed employees back on a part-time basis from 1 July.

Furloughed staff will continue to get 80% of their salary throughout until the scheme finishes at the end of October. However, employers will be expected to gradually contribute more towards furloughed employees' salaries.

In August, the taxpayer contribution will stay at 80% but employers will have to pay national insurance and employer pension contributions.

In September, employers will be asked to start paying 10% towards people's wages, which will rise to 20% in October.

The cut-off for JRS applications is 30 June, after which new firms will not be able to join and others unable to furlough additional employees.

Commenting on the scheme, Dame Carolyn Fairbairn, Director-General at the Confederation of British Industry, said: 'Introducing part-time furloughing as more stores and factories start to open will help employees to return to work gradually and safely. Many more businesses will feel supported during this vital restart phase.

'Firms understand the scheme must close to new entrants at some point and that those using it in future will need to make a contribution to help manage the costs. However, previously viable firms not able to open until later, particularly in leisure, hospitality and the creative industries, may need further assistance in the coming months.'

Further guidance on the JRS can be found here.

29thMay
News article

Data shows 5.2 million people have fallen victim to scams during coronavirus crisis

Research carried out by insurer Canada Life has revealed that 5.2 million people in the UK have fallen victim to scams during the coronavirus (COVID-19) pandemic.

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Research carried out by insurer Canada Life has revealed that 5.2 million people in the UK have fallen victim to scams during the coronavirus (COVID-19) pandemic.

Canada Life's research showed that the most common financial scams are banking scams, followed by insurance scams and pensions scams.

Victims lost an average of £566 per scam, the research found. 48% of people surveyed said that the scams are so convincing they are difficult to spot. 55% stated that falling victim to a scam has taken a toll on their mental health.

Commenting on the research, Andrew Tully, Technical Director at Canada Life, said: 'Falling prey to a scam can be devastating, not only for the individual involved but also for their family and friends.

'The COVID-19 pandemic has provided a fertile opportunity for 'lowlifes' to prey on not only the vulnerable but also people who are worried and anxious about both their health and their wealth.

'We all need to be on our guard for any signs of fraudulent activity as scammers continue to evolve and adopt ever more sophisticated and ingenious ways of encouraging people to part with their hard-earned money.'

29thMay
News article

FSB calls for government to give company directors more support

The Federation of Small Businesses (FSB) has urged the government to supply company directors with additional support during the coronavirus (COVID-19) pandemic.

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The Federation of Small Businesses (FSB) has urged the government to supply company directors with additional support during the coronavirus (COVID-19) pandemic.

The FSB has written a letter to Small Business Minister Paul Scully, highlighting that self-employed company directors, who often pay themselves a salary supplemented with company dividends, do not have access to the government's Self-employment Income Support Scheme (SEISS). The SEISS permits eligible individuals to claim 80% of earnings, up to a maximum of £2,500 per month.

The business group stated that directors of limited companies can furlough themselves using the Coronavirus Job Retention Scheme (CJRS), but they are only allowed to claim for loss of Pay as You Earn (PAYE) income and not dividends.

To be able to claim this, directors who pay themselves annually would have needed to submit the information to HMRC by 19 March. However, many directors were unaware that this would be necessary.

'The business support measures currently in place help the vast majority, but they don't help everyone,' said Mike Cherry, National Chairman of the FSB.

'Business owners who have contributed for years through corporation and dividend tax are now suffering purely because of the way they pay themselves. They need help, and they need it fast.'

28thMay
News article

Coronavirus Statutory Sick Pay Rebate Scheme goes live

On 26 May, HMRC opened up its Statutory Sick Pay (SSP) rebate claim service. Eligible employers are able to recoup up to two weeks' worth of SSP payments made to employees off work for coronavirus (COVID-19)-related reasons since 13 March 2020 (16 March 2020 if the employee was shielding). This is an ongoing scheme for which an end date has not yet been announced.

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On 26 May, HMRC opened up its Statutory Sick Pay (SSP) rebate claim service. Eligible employers are able to recoup up to two weeks' worth of SSP payments made to employees off work for coronavirus (COVID-19)-related reasons since 13 March 2020 (16 March 2020 if the employee was shielding). This is an ongoing scheme for which an end date has not yet been announced.

The scheme is potentially worth up to £191.70 per employee that an employer has made SSP payments to for COVID-19-related reasons.

For the purposes of making a claim, it doesn't matter whether the employee was displaying symptoms themselves or was living with someone who was displaying symptoms. It also doesn't matter whether the employer topped up their earnings (although only the SSP element is eligible for the rebate).

A rebate cannot, however, be claimed in relation to employees who were furloughed at the time of illness or absence, and for whom the separate Coronavirus Job Retention Scheme (CJRS) grant was claimed.

Employers will be eligible for an SSP rebate if they had a Pay as You Earn (PAYE) scheme as at 28 February 2020, and (along with any connected employer) employed fewer than 250 employees as at that date. Employers must also be within their State Aid limits under the EU Commission temporary framework.

More information can be found here: www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19.

28thMay
News article

Data reveals retail sales 'remain depressed' in year to May

Data published by the Confederation of British Industry (CBI) has revealed that retail sales volumes remained 'deeply depressed' in the year to May.

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Data published by the Confederation of British Industry (CBI) has revealed that retail sales volumes remained 'deeply depressed' in the year to May.

According to the data, supply disruptions have worsened since April. 58% of retailers reported shortages of some goods, whilst 64% reported increased cost pressures. 44% stated that they have experienced shipping delays and a further 60% have faced capacity constraints.

80% of retailers reported cashflow difficulties, down from April's figure of 96%.

The CBI said that sales volumes are expected to fall at a slightly slower pace next month.

'The retail sector is at the sharp end of a crisis, with many businesses up against it,' said Rain Newton-Smith, Chief Economist at the CBI.

'The government's support packages are making a real difference, with more shops reporting that jobs have been furloughed rather than lost. The furlough system will need to adapt as more businesses open their doors in the months ahead.'

27thMay
News article

Changes to insolvency and company law to take effect

The government has made changes to insolvency and company law as a result of the coronavirus (COVID-19) pandemic.

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The government has made changes to insolvency and company law as a result of the coronavirus (COVID-19) pandemic.

The Corporate Insolvency and Governance Bill outlines that struggling companies will be given extra time to consider rescue plans presented to them. As part of the changes, companies will have 20 business days to consider a rescue plan, which can be extended to 40 days at the discretion of creditors or the Court.

The Bill stipulates that a company will remain under the control of directors; however, the insolvency process must be overseen by a licensed insolvency practitioner.

Additionally, restructuring plans have been introduced in the Bill, which will bind creditors and allow the insolvency process to adjust as the COVID-19 pandemic changes.

'This Bill represents the biggest change to the UK's insolvency and restructuring framework for almost 20 years,' said Colin Haig, President of insolvency trade body R3.

'The measures contained in this Bill will support the profession's efforts to help businesses navigate the enormous economic damage caused by the pandemic.'

The Bill is currently undergoing its second reading in the House of Commons. Further information on the legislation can be found here.