News

## We often make resolutions for ourselves at this time of year, but what about your business?  Below are a few examples of business resolutions; maybe they will help you think about your strategy for success in 2023.  1\. Resolve to track your spending  Where does all the money go each month? You know about the big regular bills such as rent, rates, telephone and internet, suppliers, employees, tax, heat, and electricity, but for most businesses, budgets never quite seem to add up. Make sure you list all the little things such as sundries and other smaller expenses into your budget. Look through last year’s accounts to check you have every type of expense included.  Having a budget has become more important than ever. Resolving to stick to a set budget can be vital and could even mean that we have surplus cash left over at the end of each month. 2\. Resolve to deal with debt A cash surplus is vital when running a business, because one of the most important things to avoid in 2023 might well be debt. Following the Covid-19 government support, debt was easy to get into, but hard to get out of. Remember, debt goes on costing money because it means interest payments each month. Your cash surplus could help pay off your debts. Resolve to pay off as much as you can, starting with any variable interest debt you have. 3\. Resolve to build up an emergency fund Reducing your debt feels as though you have had a cash bonus each month, because you no longer have repayments to make or interest to cover. It may be tempting to splash out, but if you resolve to save instead of spend, it could be the first step towards building resilience against outside influences to your business. In 2023, interest rates are on the up, making a savings account more rewarding. 4\. Resolve to make the most of your company pension Your pension is a special kind of investment, and thanks to the tax relief provided by the government, it could be the most rewarding you ever make. Resolving to make some extra contributions into your pension fund in 2023 could make a big difference to your wealth in the years to come. 5\. Resolve to be flexible with your plans Few predicted the Pandemic or the war in Ukraine and these types of events are outside our control. Who knows what 2023 will bring, so it is worth remembering a quote from the singer Celine Dion: “Life imposes things on you that you can’t control, but you still have the choice of how you’re going to live through this”. It is a good idea to look at where you are now and plan for a range of scenarios “good and bad” so that you can be flexible about the direction you should take.  Ask us about our One Page Analyst, a “what if” scenario planner which takes your projected 2023 figures and allows you to work out the effect on profit of reducing expenses, increasing sales, increasing or decreasing prices. If you need help during the next few months, then please call us – we are here to support you!

The Government has announced a new Energy Bills Discount Scheme (EBDS) from April 2023 to April 2024 for eligible non-domestic consumers in Great Britain and Northern Ireland. The current Energy Bill Relief Scheme announced in September comes to an end in March 2023. It supports businesses and public sector organisations such as schools and hospitals by providing a discount on wholesale gas and electricity prices. Eligible non-domestic customers facing significantly inflated gas and electricity prices in light of global price pressures, triggered by Russia’s invasion of Ukraine, have benefitted from the discount since 1 October 2022. On 17 October it was announced that an HM Treasury-led review of the scheme would determine support beyond March 2023. The government has stated that current levels of support were time-limited and intended as a bridge to allow businesses to adapt. Wholesale gas prices have now fallen to levels just before Russia’s invasion of Ukraine and have almost halved since the current scheme was announced. The EBDS therefore attempts to strike a balance between supporting businesses over the next 12 months and limiting taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion based on estimated volumes. As per the current scheme the government will provide a discount on your gas and electricity unit prices. Eligible non-domestic consumers will now receive a per-unit discount to their energy bills during the 12-month period from April 2023 to March 2024, subject to a maximum discount. The relative discount will be applied if wholesale prices are above a certain price threshold. For most non-domestic energy users these maximum discounts have been set at: - electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh. - gas - £6.97 per MWh with a price threshold of £107 per MWh The discount is calculated as the difference between the wholesale price associated with an energy contract and the price threshold. The discount is phased in when the contract’s wholesale price exceeds the floor price, until the total discount per MWh reaches the maximum discount for that fuel. Recognising that some non-domestic energy users are particularly vulnerable to high energy prices due to their energy intensive and trade exposure, (referred to as Energy and Trade Intensive Industries or ETIIs), these sectors will receive a higher level of support, subject to a maximum discount. The maximum discounts and price threshold for these sectors are: - electricity - £89 per MWh with a price threshold of £185 per MWh - gas - £40 per MWh with a price threshold of £99 per MWh The government expects suppliers to contact non-domestic customers over the coming weeks to advise them of the implications of the scheme. See:

Listed below are a number of live HMRC webinars that will give the self-employed an understanding of key taxes that affect them and also help employers with payroll. The webinars are free and last around an hour. [Business expenses for the self-employed](https://register.gotowebinar.com/rt/518725820372568843) Fri 20 Jan at 1:45pm [The Trust Registration Service and reporting discrepancies](https://register.gotowebinar.com/rt/6256728464532076123) Mon 6 Feb at 9:45am [Overview of the new VAT late submission, late payment penalties and interest charges](https://register.gotowebinar.com/rt/8255850609933379595) Fri 17 Feb at 11:45am [How to apply the VAT reverse charge for construction services](https://register.gotowebinar.com/rt/5449861740476339982) Thu 23 Feb at 11:45am [Overview of the new VAT late submission, late payment penalties and interest charges (agents and advisers)](https://register.gotowebinar.com/rt/2418761081372765452) Fri 24 Feb at 11:45am Employer webinars: [Expenses and benefits for your employees – if your employees have more than one workplace](https://register.gotowebinar.com/rt/38743915775337739) Mon 30 Jan at 11:45am [Expenses and benefits for your employees - trivial benefits](https://register.gotowebinar.com/rt/626021663477211661) Wed 1 Feb at 11:45am [Statutory Sick Pay](https://register.gotowebinar.com/rt/3010724945169751052) Fri 3 Feb at 9:45am [Expenses and benefits for your employees - travel](https://register.gotowebinar.com/rt/7665441449753388814) Mon 6 Feb at 11:45am [Statutory Maternity and Paternity Pay](https://register.gotowebinar.com/rt/4496056302639909646) Tues 7 Feb at 11:45am [Expenses and benefits for your employees - company cars, vans and fuel](https://register.gotowebinar.com/rt/770081782034189) Wed 8 Feb at 11:45am [Expenses and benefits for your employees – phones, internet and homeworking](https://register.gotowebinar.com/rt/143577951437367568) Tue 14 Feb at 11:45am [Expenses and benefits for your employees - social functions and parties](https://register.gotowebinar.com/rt/2273012016560007436) Thu 16 Feb at 9:45am

In January 2022, the National Cyber Security Centre (NCSC) announced an [update of the Cyber Essentials technical controls](https://www.nibusinessinfo.co.uk/content/changes-cyber-essentials-scheme). At the time, organisations who were looking to be assessed against the new standards were given a grace period of up to 12 months for some of the requirements. This grace period was due to end in January. However, the grace period has been extended for a further three months until April 2023. Read more about the [Cyber Essentials grace period extension](https://www.nibusinessinfo.co.uk/content/cyber-essentials-grace-period-extended). The NCSC will host a live Digital Loft webinar to share a first look at the changes to Cyber Essentials technical requirements and new guidance The webinar will take place on Tuesday 24 January 2023 from 10:30am to 12 noon. A further 'deep dive' session will take place on 14 March 2023 to explore the Cyber Essential changes in depth. See: [Event Management (microsoftcrmportals.com)](https://ncsc-production.microsoftcrmportals.com/home)

A new trial system aims to identify taxpayers seeking help with specific queries which HMRC considers can be resolved online. Such callers will be sent a text message containing relevant links. Callers to HMRC’s income tax helplines from a mobile phone will be dealt with in one of the following three ways: - Callers with queries about their UTR or registering for online services will be sent an SMS that matches the key words they used to describe their query. The call will be automatically disconnected after a message explaining that an SMS has been sent. - Callers with queries about whether they should register for self assessment or whether they should still complete a tax return, and those with requests for their income and employment history, will be offered the option of receiving an SMS or continuing to hold for an adviser. - Callers who wish to know their National Insurance number or need help with filling in their tax return will be sent an SMS and given time to engage with it before deciding whether to terminate the call themselves or opt to continue to hold and be routed to an adviser. The trial runs until the end of this financial year. See: [New SMS service launched on HMRC helplines | The Association of Taxation Technicians (att.org.uk)](https://www.att.org.uk/technical/news/new-sms-service-launched-hmrc-helplines)

Last year P&O Ferries sought to evade the law by sacking 786 seafarers without due consultation. Having made no efforts to inform the Business Secretary at the time, they failed to follow best practice or do the right thing for their employees. As a result, the transport Secretary introduced a 9-point plan including primary legislation to tackle these issues. Through a planned statutory code of practice, the government is protecting employees and cracking down on employers that use controversial dismissal tactics. The code, subject to a consultation first, will make it explicitly clear to employers that they must not use threats of dismissal to pressurise employees into accepting new terms, and that they should have honest and open-minded discussions with their employees and representatives. ‘Fire and rehire’ refers to when an employer fires an employee and offers them a new contract on new, often less-favourable terms. The government has been clear on its opposition to this practice being used as a negotiating tactic and is now making it clear how it expects employers to behave. This new statutory code of practice will set out employers’ responsibilities when seeking to change contractual terms and conditions of employment, including that businesses must consult with employees in a fair and transparent way when proposing changes to their employment terms. Once in force, Courts and Employment Tribunals will be able to take the code into account when considering relevant cases, including unfair dismissal. They will have the power to apply a 25% uplift to an employee’s compensation in certain circumstances if an employer is found to not comply with the statutory code. See: [Government cracks down on ‘fire and rehire’ practices - GOV.UK (www.gov.uk)](https://www.gov.uk/government/news/government-cracks-down-on-fire-and-rehire-practices)

On 15 March 2023, Chancellor Jeremy Hunt presented his first Budget to Parliament and set out a plan to reduce inflation, grow the economy and get government debt falling all whilst avoiding a recession and tackling labour shortages. Below we set out some of the main points. COST OF LIVING SUPPORT Energy Costs The Energy Price Guarantee (EPG) brings a typical household energy bill in Great Britain down to around £2,500 per year. It has now been announced that the £2,500 EPG will be extended by 3 months to 30th June 2023, before increasing to £3,000 until the end of the EPG period on 31 March 2024. This extra 3 months at £2,500 will be worth £160 for a typical household. In Northern Ireland, a similar scheme operates, reducing typical household energy bills to around £2,109 per year. This has also been extended at the same rate until 30th June 2023. A new scheme for businesses, charities and the public sector has been confirmed. The Business Energy Bills Discount Scheme will run until 31 March 2024, giving non-domestic customers discounts on their gas and electricity bills. Childcare Additional support is being provided towards childcare costs in what the government describe as a ‘childcare revolution’. This includes 30 hours of free childcare for every child over the age of 9 months, with support being phased in until every eligible working parent of under 5s gets this support by September 2025. For Universal Credit claimants, the government will also pay childcare costs in advance rather than arrears, when parents move into work or increase their hours. The maximum they can claim will also be boosted to £951 for one child and £1,630 for two children, an increase of around 50%. Benefits and State Pension As confirmed at Autumn Statement 2022, the government will also increase benefits, including the State Pension, paid to recipients in the tax year to 5 April 2024 by 10.1%.  This increase in the State Pension means that most pensioners will receive £10,600 in 2023/24, where they have 35 qualifying years. Individuals are being urged to check their contribution record on their Government Gateway account and consider making Class 3 voluntary National Insurance (NI) contributions in respect of missing qualifying years. Normally it is only possible to make voluntary NI contributions for the past 6 tax years, but until 31 July 2023, it is possible to go back as far as 6 April 2006 and pay additional contributions at the 2022/23 Class 3 rate of £15.85 per week.  In-year Class 3 contributions for 2023/24 will increase to £17.45 per week. INCOME TAX Increasing liabilities The personal allowance and basic rate band threshold are now frozen in place until 5 April 2028. As earnings increase, individuals will move into higher tax bands. This is often referred to as ‘fiscal drag’ because it will raise more tax without the government increasing income tax rates. The personal allowance continues to be partially and then fully withdrawn for higher earners, with £1 of personal allowance lost for every £2 of adjusted net income over £100,000.  Other allowances  Savings income continues to benefit from a personal savings allowance of £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Dividend income attracts a £1,000 dividend allowance in 2023/24, down from the £2,000 allowance seen in previous years. These allowances are in addition to the personal allowance and attract a 0% rate of income tax.  Pension tax relief There was good news in the Budget for those saving in a personal pension. The current pension lifetime allowance (LTA) charge is being abolished from 6 April 2023. The LTA has caused some high earners, particularly doctors, to retire early as tax charges apply on crystallisation of pension funds if the LTA (currently £1,073,100) is exceeded.   Individuals may be able to receive 25% of their pension savings as a tax-free lump sum when they become entitled to their pension benefits. This is currently capped at 25% of the LTA and going forwards, for most individuals, will remain capped at £268,275. Another pension limit increased by the Chancellor in the Budget was the pension Annual Allowance (AA) which increases from £40,000 to £60,000 from 6 April 2023. The AA applies to the combined pension input by the individual and, in the case of employees, their employer. Pension contributions in excess of the AA result in a tax charge on the individual, although they may take advantage of unused AA amounts from the 3 previous tax years.  For those with high incomes, the AA is tapered. From 6 April 2023, where a taxpayer’s adjusted income exceeds £260,000 (increasing from £240,000), the AA is tapered by £1 for every £2 in excess of £260,000, down to a minimum of £10,000 (increasing from £4,000). The Money Purchase Annual Allowance (MPAA) replaces the AA when an individual starts to flexibly access a defined contribution pension scheme. The MPAA will increase from £4,000 to £10,000 on 6 April 2023.  Note that an individual’s pension contributions can be very tax efficient depending on their level of income.  The taxation rules for pensions are complex as there have been numerous changes in recent years so please talk to us about your pension contribution strategy. Tax Efficient Savings There were no changes to the annual limits for Individual Savings Accounts (ISAs), Child Trust Funds or the Junior ISA. These limits remain at £20,000, £9,000 and £9,000 respectively. CAPITAL GAINS TAX In the Autumn Statement, the Chancellor announced that the £12,300 annual tax-free capital gains tax exemption (or allowance) will be reduced to just £6,000 in 2023/24 and only £3,000 in 2024/25. This change will mean that those disposing of capital assets will pay more tax, where the new lower allowance is exceeded. Couples who are in the process of separating, or who have commenced divorce proceedings, need to be aware of new rules taking effect from 6 April 2023 concerning the transfer of capital assets between them as a result of their separation.   If you are planning any capital disposals, please contact us to discuss the best strategy for the disposal. INHERITANCE TAX In the 2023 Autumn Statement, the inheritance tax nil rate band was frozen at £325,000 until April 2028. The residence nil rate band will also remain at £175,000 and the residence nil rate band taper will continue to start at £2 million. If you anticipate your estate giving rise to inheritance tax in the future, please contact us to discuss measures that could potentially be put in place, alongside asset distribution within your family. VAT The VAT registration and deregistration thresholds continue to be frozen at £85,000 and £83,000 respectively, instead of increasing each year in line with inflation. This will remain the case until March 2026. Since 1 January 2023, a new penalty regime has been in operation for late VAT return submission and late payment of VAT. The new system is designed to target more persistent offenders, with penalties escalating quickly where defaults reoccur. BUSINESS TAXES National Insurance Contributions (NIC) for the self-employed in 2023/24 Self-employed individuals are required to pay Class 2 and Class 4 NICs if their profits exceed £12,570. These NICs are usually collected with the individual’s income tax self-assessment payments. For 2023/24, Class 2 NICs are calculated at £3.45 per week and Class 4 NICs are calculated at 9% on profits between £12,570 and £50,750, and at 2% on profits over £50,750. Making Tax Digital (MTD) for Income Tax Under MTD for Income Tax, businesses will keep digital records and send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. These requirements will not be phased in until April 2026, starting with sole traders and property landlords with gross income over £50,000. Other individuals subject to Income Tax will follow at a later stage. Tax Relief for expenditure on plant and machinery The Annual Investment Allowance (AIA), giving 100% tax relief to unincorporated businesses and companies investing in qualifying plant and machinery, is now permanently set at £1million. The super-deduction, which gives enhanced 130% relief for new qualifying plant and machinery acquired by companies, will end on 31 March 2023.  As a replacement for the super-deduction, ‘full expensing’ (effectively 100% tax relief, called a ‘First Year Allowance’ (FYA)) will be available to companies incurring expenditure on new qualifying plant and machinery between 1 April 2023 and 31 March 2026. The qualifying criteria is quite broad although there are exclusions, including cars and features integral to a building (for example, heating systems). With regard to ‘integral features’, a smaller 50% FYA will be available. Subsequent disposals of assets on which one of these FYAs has been claimed will trigger a clawback of tax relief at a rate of 100% or 50% of the disposal proceeds, depending on the rate of the original relief. These new FYAs will mainly be of interest to companies that have already fully utilised their £1million AIA. The separate 100% FYA for electric vehicle charge points remains available for unincorporated businesses and companies until Spring 2025. Unincorporated businesses and their accounting year-ends Unincorporated businesses that prepare annual accounts to a date other than 31 March or 5 April will soon need to adopt a new process for how the profits or losses arising in those accounts are reported to HMRC.  At present, ‘basis period’ rules apply that broadly allow annual accounts that end in a tax year to act as the basis of profits or losses arising in that tax year. This new system starts with transitional rules in the tax year ending on 5 April 2024 (2023/24). Going forwards, actual profits or losses arising in a tax year must be reported to HMRC, but this does not necessarily require a change in accounting year-end. Unfortunately, this will make it harder for some self-employed individuals to predict their income tax liabilities, but we will be on hand to help you. CORPORATE TAXES New rates from 1 April 2023 From 1 April 2023, the rate of Corporation Tax will increase to 25% if a company’s profits exceed £250,000 a year. The current 19% rate will however continue to apply where profits are no more than £50,000 a year.  Where a company’s profits fall between £50,000 and £250,000 a year, the profits are taxed at the higher 25% rate, but a ‘marginal relief’ is given to reduce the liability, with the effective rate being closer to 19% for those with profits just over £50,000.  Companies in the same corporate group (or otherwise connected by association) must share the £50,000 and £250,000 thresholds between them, making the 25% rate more likely to apply. Research & Development (R&D) Reliefs From 1 April 2023 a raft of changes is coming to the R&D tax relief regime and claimant companies should consider obtaining updated advice if they’ve not already done so. The key changes are: • The Research and Development Expenditure Credit (RDEC) available to non-SME companies will be increased from 13% to 20%. • For SME companies, R&D tax relief rates will be reduced from 230% to 186%.  • For loss-making SME companies, the current payable credit of 14.5% will only be available for companies whose R&D expenditure constitutes at least 40% of their total expenditure. For R&D claimants that don’t meet the new 40% test, the payable credit will be reduced from 14.5% to 10% of the eligible loss. • Qualifying R&D expenditure will be expanded to include data licences and cloud computing services. • New claimants (those who have not made a claim in the previous 3 years) will be required to inform HMRC of their intention to make a R&D claim within 6 months of the end of the accounting period to which the claim relates.  From 1 August 2023, additional information requirements will need to be fulfilled when making a R&D claim. Creative industries tax reliefs The government continues to support the creative industries by reforming and enhancing film, TV and video games tax reliefs. The government will also extend the temporary higher rates of theatre, orchestra, and museums and galleries tax reliefs for 2 further years until April 2025. EMPLOYMENT TAXES National Insurance Contributions (NICs) Like the main income tax bandings, employer and employee NIC thresholds are now also frozen until 5 April 2028. This broadly means that employers’ NIC will continue to apply at 13.8% to earnings in excess of £9,100 a year (£175 per week) and employees will continue to pay 12% on earnings between £12,570 and £50,270 and 2% thereafter. Company Cars and Other Benefits Employees are required to pay income tax on certain non-cash benefits. For example, the provision of a company car constitutes a taxable ‘benefit in kind’. Employers also pay Class 1A NIC at 13.8% on the value of benefits. The set percentages used to calculate company car benefits are fixed until 5 April 2025 before slight increases apply to most car types, including electronic and ultra-low emission, from 6 April 2025. More imminently, the figures used to calculate benefits-in-kind on employer-provided vans, van fuel (for private journeys in company vans), and car fuel (for private journeys in company cars) will increase in line with the Consumer Price Index (CPI) from 6 April 2023. These will become: • Van benefit £3,960 • Van fuel benefit £757 • Car fuel benefit multiplier £27,800 Share Options  From 6 April 2023, the Company Share Option Plan (CSOP) employee share options limit will increase from £30,000 to £60,000. Additionally, restrictions on the types of shares eligible for CSOP options will be lifted. Simplifications will also be made to the process to grant Enterprise Management Incentive (EMI) options. From 6 April 2023, there will no longer be a requirement for the company to set out any restrictions to the shares being acquired in the option agreement and the employee will no longer have to sign a working time declaration.  National Minimum Wage The hourly rates applicable from 1 April 2023 are: • Over 23 £10.42 • 21 to 22 £10.18 • 18 to 20 £7.49 • Under 18 £5.28 • Apprentice £5.28 INVESTMENT ZONES The Government will establish 12 ‘Investment Zones’ across the UK, including a promise to have at least one each in Scotland, Northern Ireland and Wales.  Each successful zone will have access to £80m funding over 5 years and benefit from a package of tax reliefs. These include relief from Stamp Duty Land Tax (SDLT), enhanced capital allowances for plant and machinery, enhanced structures and buildings allowances and relief from secondary Class 1 National Insurance Contributions (NICs) for qualifying employers on the earnings of eligible employees up to £25,000 per annum.  VENTURE CAPITAL SCHEMES The Government is increasing the generosity and availability of the Seed Enterprise Investment Scheme for start-up companies. The amount of investment that companies will be able to raise under the scheme will increase from £150,000 to £250,000. The gross asset limit will be increased from £200,000 to £350,000 and the investment must be made within 3 years (increased from 2 years) of trade commencing. In a bid to support these changes, the annual investor limit will be doubled to £200,000. The changes take effect from 6th April 2023. IN CONCLUSION Combined with the many mini-budgets and statements made towards the end of 2022, this Budget brings change; good, bad, and often to be determined with time. What is clear is that 2023 remains a year of opportunity and we are here to work alongside you and help you grow. 

New data laws to cut down paperwork for businesses and reduce cookie pops-up have been introduced by the UK government.  The Data Protection and Digital Information Bill was first introduced last Summer and paused in September 2022 so ministers could engage in a co-design process with business leaders and data experts, ensuring that the new regime builds on the UK’s high standards for data protection and privacy and seeks to ensure data adequacy while moving away from the ‘one-size-fits-all’ approach of the European Union’s GDPR. Data is fundamental to fuelling economic growth in all areas of society, from unlocking medical breakthroughs to helping people travel, manage their finances, and shop online. It is vital to the development and use of innovative technologies such as artificial intelligence. Data-driven trade generated 85 per cent of the UK’s total service exports and contributed an estimated £259 billion to the economy in 2021. The bill will: - Introduce a simple, clear and business-friendly framework that will not be difficult or costly to implement – taking the best elements of GDPR and providing businesses with more flexibility about how they comply with the new data laws; - Ensure the new regime maintains data adequacy with the EU, and wider international confidence in the UK’s comprehensive data protection standards; - Reduce the amount of paperwork organisations need to complete to demonstrate compliance; - Support international trade without creating extra costs for businesses if they are already compliant with current data regulation; - Provide organisations with greater confidence about when they can process personal data without consent; and - Increase public and business confidence in AI technologies by clarifying the circumstances in which robust safeguards apply to automated decision-making. See: [British Businesses to Save Billions Under New UK Version of GDPR - GOV.UK (www.gov.uk)](https://www.gov.uk/government/news/british-businesses-to-save-billions-under-new-uk-version-of-gdpr)

Silicon Valley Bank (UK) Ltd (SVB UK) was sold last week to HSBC for a symbolic £1. HSBC is headquartered in London, is the largest bank in Europe and is one of the world’s largest banking and financial services institutions, serving 39 million customers globally. Customers of SVB UK are now able to access their deposits and banking services as normal. This transaction has been facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009. The deal makes use of post-crisis banking reforms, which introduced powers to safely manage the failure of banks. See: [Government and Bank of England facilitate sale of Silicon Valley Bank UK - GOV.UK (www.gov.uk)](https://www.gov.uk/government/news/government-and-bank-of-england-facilitate-sale-of-silicon-valley-bank-uk)

If you are thinking about buying cryptoassets (“crypto”) you need to know the basics and understand the risks before jumping in. And remember, if you decide to invest in crypto then you should be prepared to lose all the money you have invested. The range and accessibility of crypto have grown rapidly in the last few years, accompanied by a surge in speculative trading – which means people trading just because they have heard it may rise in value, rather than seeing evidence to support a potential rise. A number of people invest simply for fun! Crypto can be thought of as ‘digital representations of value or rights’ that are secured by encryption and typically use some type of ‘distributed ledger technology’ (DLT). DLT allows data to be recorded and stored across a network of participants. This keeps the data secure and means there is no one single central data storage point or one central authority that grants participants permission to access and participate in the network. The way some cryptoassets are created and operated makes them very different from what some people would class as ‘tangible’ assets (meaning things that you can physically see and touch) like gold or cash. So called ‘unbacked’ crypto have no tangible assets that sit behind them. Their price can increase or decrease depending on whether other people are willing to buy them. If people stop buying, the price could fall dramatically.  Whereas central banks – like the Bank of England – issue and oversee the money we use daily (fiat currencies), cryptoassets are developed and run by groups, individuals, or companies. Publicly available information about some of these groups/individuals can be vague, and as crypto activity is not regulated yet in the UK, there is no safety net if things go wrong.  Currently, using crypto as a means of payment is very limited – they’re accepted by certain IT and travel companies, for example, but you probably won’t be doing your weekly shop or paying your 5-a-side football subs with crypto. The reason for this is that cryptoassets tend to be very volatile, so it’s hard to pinpoint their value from one day to the next, which makes them unreliable as a payment method. However crypto that are are linked to fiat currency can be less volatile and more stable and have the potential to provide faster, cheaper and more efficient payments in the future. Some investors take the view that crypto could possibly one day be accepted in everyday transactions but this is some way off.  Investing in crypto comes with all kinds of risks, some of which you might not even have thought of. For example, converting crypto to fiat currency can prove challenging and holders must keep a record of their digital keys. Capital gains tax can apply to exchanges and other disposals of crypto, even if fiat currency has not been realised. In 2022, crypto lender, Celsius, filed for bankruptcy and owed its users $4.7 billion, meaning many investors could not get their money out and did not get anything back.  Following the surge in people’s interest in crypto over the last few years, scammers have been increasingly active in targeting potential investors. Remember - if something sounds too good to be true then it probably is. Find out how to protect yourself and others from investment scams on the [ScamSmart site.](https://www.fca.org.uk/scamsmart) If you are trading in crypto be aware HMRC expects you to keep detailed and accurate records of your purchases and sales. In 2021 they published their internal Cryptoassets Manual which outlines how they measure any profit or loss on trading and details the records required. You can see this here: [Cryptoassets Manual - HMRC internal manual - GOV.UK (www.gov.uk)](https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual). It has just been announced in Budget 2023 that new boxes will appear on the self-assessment tax return to prompt crypto disclosures next year. Anyone trading in Crypto needs to be aware of their tax obligations and when transactions need to be included in their tax return. Please make sure you tell us about any transactions (even if fiat currency has not been received) so that we can assist and include the appropriate amounts in your self-assessment tax return, as required. See: [Crypto: The basics | FCA](https://www.fca.org.uk/investsmart/crypto-basics)

As an employer running payroll, you need to report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on 5 April 2023), give your employees a P60, and prepare for the new tax year, which starts on 6 April. What you need to do: Send your final payroll report of the year On or before your employees’ payday. - Update employee payroll records - From 6 April - Update payroll software - From 6 April - Give your employees a P60 - By 31 May - Report employee expenses and benefits - By 6 July HMRC have published important information for employers on GOV.UK, which includes help with [finishing the tax year 2022 to 2023](https://www.gov.uk/payroll-annual-reporting). Please talk to us about our payroll services; we offer a secure payroll service that not only saves you time and money but can eliminate the risk of getting something wrong.

Experts at the Government Actuary’s Department (GAD) have focused on pensions taxation, pension fund investment and retirement planning in their analysis of the [Spring Budget](https://www.gov.uk/government/topical-events/spring-budget-2023). The Chancellor set out plans to deliver on 3 of the Prime Minister’s 5 key priorities: to halve inflation, grow the economy and get debt falling. Pensions tax reform GAD’s latest Technical Bulletin examines the government’s announcements on pensions tax reform. The Spring Budget aimed to increase the labour supply and support people to move into employment. There is a particular emphasis on encouraging workers aged over 50 to extend their working lives.  Reforms were announced to the total tax-relieved pension savings an individual can make each year and over their lifetime. These affect the lifetime allowance (LTA), annual allowance (AA), and money purchase annual allowance (MPAA), as well as other tax limits. Pension fund investment GAD’s Technical Bulletin also looks at the government’s plans to support high growth sectors of the economy. This will include encouraging investment and smarter regulation. The Spring Budget set out some initial measures, while the government will work closely with industry and regulators to bring forward a package of measures by the autumn. Retirement planning There will be more focus on retirement planning. People in their 40s, 50s and 60s will be encouraged to make more active planning in key areas of work, wellbeing, and money. In the Spring Budget 2023, the government announced it will work with employers and pension providers to encourage people to [undertake midlife MOTs](https://www.yourpension.gov.uk/mid-life-mot/). See: [Spring Budget 2023: a GAD technical bulletin - GOV.UK (www.gov.uk)](https://www.gov.uk/government/publications/spring-budget-2023-a-gad-technical-bulletin) ##