The government has published a report, Universal Credit: supporting self employment which considers the issues faced by self employed claimants.

The report considers the impact of the Monthly Income Floor (MIF) earnings requirement. To be eligible for Universal Credit (UC) claimants must earn the MIF. However, the MIF assumes self employed claimants earn a regular income at least equal to the National Minimum Wage, and makes no provision for those with income and expenditure that vary from month to month. The report states that the MIF has been designed with monthly paid employed individuals in mind rather than the self employed who may have more volatile earnings.

It also considers the current system which allows self employed individuals to be exempt from meeting the MIF for the first 12 months of self employment and whether this is sufficient. The report urges the Government to extend the exemption period.

Internet link: Universal Credit Self Employed report

It has previously been reported that the Enterprise Management Incentive State Aid approval lapsed on 6 April 2018. On 15 May EU approval was granted however HMRC have not confirmed expressly that this approval will be backdated to 6 April 2018.

The Enterprise Management Incentive (EMI) allows selected employees (often key to the employer) to be given the opportunity to acquire a significant number of shares in their employer through the issue of options. An EMI can offer significant tax advantages as the scheme allows options to be granted to employees which may allow the shares to be received without any tax bill arising until the shares are sold.

HMRC had previously warned that EMI share options granted in the period from 7 April 2018 until EU State Aid approval is received may not be eligible for the tax advantages afforded to option holders.

We await official confirmation on the position from HMRC.

Please contact us for specific advice on this issue.

Internet link: Europa press release

HMRC has issued a warning to taxpayers regarding the latest tax refund scams. These scams are targeting individuals via email and SMS messages.

HMRC is currently processing genuine tax refunds for the 2017/18 tax year and the fraudsters are sending scam messages which claim that taxpayers are entitled to a rebate. These messages go on to request that they provide their personal and account details in order to make their claim.

HMRC is keen to stress that it will only ever inform individuals of a tax refund by post or through their employer, and never via email, text messaging or voicemail.

Commenting on the issue, Treasury Minister Mel Stride said

We know that criminals will try and use events like the end of the financial year, the self assessment deadline, and the issuing of tax refunds to target the public and attempt to get them to reveal their personal data’.

HMRC is advising taxpayers not to click on any links, download any attachments or provide any personal information, and to forward any suspect messages to HMRC.

Internet link: GOV.UK news

BEIS and HMRC are urging underpaid workers to complain about National Minimum Wage (NMW) and National Living Wage (NLW) underpayments. Recent figures show that the number of workers receiving the money they are owed has doubled.

During 2017/18, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s lowest paid workers. This is an increase on the previous years figures of £10.9 million for more than 98,000 workers.

HMRC launched its online complaints service in January 2017 and believes this has contributed to the 132% increase in the number of complaints received over the last year and the amount of money HMRC has been able to recoup for those unfairly underpaid.

The figures are published as the government launches its annual advertising campaign which encourages workers to take action if they are not receiving the NMW or NLW. The online campaign urges underpaid workers to proactively complain by completing an HMRC online form.

HMRC state that the types of business receiving most complaints include restaurants, bars, hotels and hairdressing.

Business Minister Andrew Griffiths said:

‘Employers abusing the system and paying under the legal minimum are breaking the law. Short changing workers is a red line for this government and employers who cross the line will be identified by HMRC and forced to pay back every penny, and could be hit with fines of up to 200% of wages owed.

I would urge all workers, if you think you might be being underpaid then you should check your pay and call Acas on 0300 123 1100 for free and confidential advice.’

Please contact us for help with payroll matters.

Internet link: GOV.UK news 200000 receive back pay

We are delighted to announce that McGinty Demack has been approved to join Handpicked Accountants.

Handpicked Accountants is an exciting specialist service that aims to take the lottery out of small business owners, company directors and private individuals finding a reliable, local accountant. There are over 320,000 accountancy firms registered in the UK, but for so many businesses knowing which one to choose can be a minefield. A great accountant will not only ensure that your accounts are up to date, fully compliant and compiled on time, but can also provide invaluable business advice, save you money and help your business to grow; whereas the wrong accountant could leave your business in trouble whilst also costing you valuable time and money.

However each account featured on Handpicked Accountants has been rigorously vetted prior to inclusion, so by choosing an accountant through Handpicked Accountants you can be sure that you will be working with one of the very best firms in your area; someone that you can trust to provide you with an exceptionally high level of service, putting the needs and success of your business first, and all for a fair and reasonable price.

David Tattersall, Head of Client Relations at Handpicked Accountants, said, “McGinty Demack are exactly the type of firm that we want to include in Handpicked Accountants. Under the leadership of Karen Richardson they have built up an enviable reputation as one of the very best accountants in Standish and accountants in Wigan. Simple promises such as always agreeing fees before commencing any work means that their clients always know exactly where they stand and can trust that everyone in the firm is dedicated to the success of their business.”

Karen Richardson, Director at McGinty Demack, commented, “Here at McGinty Demack our entire team is completely committed to supporting our clients’ success through the provision of the highest level of accountancy services. Whether we are providing general accountancy, bookkeeping, tax, business start-up, VAT, payroll, management accountancy or pensions services, we strive to be the very best accountants in Standish and the Wigan area.”

Find out Handpicked Accountants listing here.