John Harrison and Company

Nothing makes you more productive than the last minute. - Anon

Make Work Pay threatens employment and growth warns FSB The government’s Make Work Pay Bill lacks a pro-growth element and will increase economic inactivity, the Federation of Small Businesses (FSB) has warned. The business group says that the legislation, particularly around day one dismissal rights, risks deterring small employers from taking a chance on someone who has had a significant period out of the workplace, shutting those doors and deepening social exclusion It warns that the Bill is rushed and poorly planned while dropping 28 new measures onto small business employers all at once leaves them scrambling to make sense of it all. There are already 65,000 fewer payroll jobs since Labour took power, and the new government is sending out a ‘troubling signal to businesses and investors’, the FSB adds. Tina McKenzie, Policy Chair at the FSB, said: ‘The Chancellor has the opportunity to lead the way in adding a pro-business, pro-employment element to Make Work Pay in her upcoming Budget. This should include a rise in the Employment Allowance, pegging it to future rises in the National Living Wage. It should also include the reintroduction of the small business rebate for Statutory Sick Pay. ‘Sufficient time should be taken to avoid this becoming a hastily cobbled-together Act of Parliament. We look forward to more engagement and the start of a full consultation on each individual measure to ensure the voice of small employers is heard.’

A young accountant spends a week at his new office with the retiring accountant he is replacing. Each and every morning as the more experienced accountant begins the day, he opens his desk drawer, takes out a worn envelope, removes a yellowing sheet of paper, reads it, nods his head, looks around the room with renewed vigour, returns the envelope to the drawer and then begins his day's work. After his predecessor retires, the new accountant can hardly wait to read for himself the message contained in the envelope in the drawer, particularly since he feels so inadequate in replacing the far wiser and more highly esteemed accountant. Surely, he thinks to himself, it must contain the great secret to his success, a wondrous treasure of inspiration and motivation. His fingers tremble anxiously as he removes the mysterious envelope from the drawer and reads the following message: "Debits in the column toward the file cabinet. Credits in the column toward the window."

Raising CGT rates would not deter investment, says IPRR Increases to Capital Gains Tax (CGT) at the upcoming Budget would not deter investment into the country, according to the Institute for Public Policy Research (IPPR). The think tank says that low CGT is not an effective way at encouraging entrepreneurship and investment. Equalising CGT to income tax could help the Chancellor’s efforts to close the £22 billion hole in the public finances, with the IPPR saying doing so could raise up to £14 billion. The IPPR said investors and entrepreneurs do not consider CGT when they set up a company as CGT only becomes relevant at the point of selling a business or assets. The think tank claims low CGT rates are poor value for money, as they equally reward passive asset ownership and active entrepreneurship. Finally, it says that unequal tax on income and capital gains encourages employees to act as ‘businesses’, creating labour market distortions. The IPRR said: ‘Entrepreneurship and investment are vital to generating sustainable growth for the UK, but low capital gains tax is not an effective way at encouraging these activities. Instead, government and business must work together to make the most of the targeted support that is already on offer. ‘Closing the tax advantage on capital gains means that the system becomes more efficient whilst raising revenues to adequately fund the public services and investment that business across the country rely on.’

10,000 boost State Pension with online payments More than 10,000 payments worth £12.5 million have been made through a new digital service to boost people’s state pension, HMRC has revealed. People have until 5 April 2025 to maximise their state pension by making voluntary National Insurance contributions (NICs) to fill any gaps in their NICs record between 6 April 2006 and 5 April 2018. The service enables people to check if they have gaps in their NICs record, calculate if making a payment would increase their state pension, and then make a payment if they wish to do so. HMRC data shows: • 51% of taxpayers topped up one year of their NICs record • the average online payment is £1,193 • the largest weekly State Pension increase is £107.44. After the 5 April 2025 deadline, people will only be able to make voluntary contributions for the previous six tax years, in line with normal time limits. Emma Reynolds, Minister for Pensions, said: ‘We want pensioners of today and tomorrow to enjoy the dignity and support they deserve in retirement. That’s why I urge everyone to check if they could benefit by filling gaps before the deadline passes. Using our online tool means only a few clicks could make a huge difference to your future.’

Benjamin Franklin may have invented electricity - but it was the man who invented the meter who made the money. - Earl Wilson

I got a job at a bakery because I kneaded dough.

  HMRC agree to make things easier with paper tax returns HMRC’s decision to make it easier for taxpayers to file a paper tax return has been welcomed by the Low Incomes Tax Reform Group (LITRG). With less than a month until the 31 October deadline for filing a 2023/24 paper self assessment tax return, HMRC have confirmed to LITRG they will accept copies of the tax return form that have been downloaded and printed from GOV.UK. Until recently, the 2024 form on GOV.UK had been marked ‘For reference only’ and HMRC indicated they would only accept a paper tax return form if it had been specifically issued by them and sent to the taxpayer by post. Following concerns raised by LITRG, HMRC have now agreed to relax their position and have confirmed they will accept forms printed from GOV.UK. It means some taxpayers wishing to file a paper return ahead of the 31 October 2024 filing deadline will be able to do so without needing to call HMRC to ask them to post out a copy. Antonia Stokes, LITRG Technical Officer, said: ‘We understand HMRC strongly encourage people to file their tax returns online, but this is not always possible. We have always been clear that HMRC should not try to make things harder for those who have no option but to file on paper. Though late in the day, this is a step in the right direction, and we are pleased that HMRC have listened to – and acted on - our concerns.’

Budget will be 'pivotal moment' for new government The Autumn Budget will be a 'pivotal moment' for the new Labour government as it aims for sustainable economic growth, says the Confederation of British Industry (CBI). In its Budget submission, the business group says the task ahead is not without its challenges given the current economic and fiscal constraints. The CBI says the key to delivering growth will be unlocking the levers to investment that let business move forward with confidence and certainty. At the Budget, the CBI wants to see the Chancellor take the following actions: • Boost productivity and investment via a more flexible Apprenticeship Levy as a first step towards the Growth and Skills Levy. • Expand the Made Smarter Programme enabling digital adoption to support a skilled, reliable workforce. • Build confidence in the transition to net zero by utilising tax incentives to drive investment into high-growth green technologies. • Bolster business certainty with a Business Tax Roadmap alongside long-term business rates reform. Rain Newton-Smith, CBI Chief Executive, said: 'The Budget can provide a tone setting moment in the government's growth mission that can demonstrate to markets, investors, and businesses that the UK has a credible plan for boosting its growth trajectory. 'We recognise the Chancellor is walking a fine line with limited fiscal headroom. While we cannot risk the economic stability that is the bedrock of growth, we must be ambitious in our vision with government laying the foundations for a prosperous future.'

In sales, the secret of success is very simple: see a lot of people and ask them all to buy. - Anon