Business News England - 11.10.2021

HMRC Publish Guidance on New Penalty Regime for Late Returns

Finance Act 2021 introduced a new regime for late VAT returns that will apply to VAT periods commencing on or after 1 April 2022 and to other returns at a later date.

HMRC have now published detailed guidance on the new rules. The reforms come into effect:

for VAT taxpayers from periods starting on or after 1 April 2022
for taxpayers within MTD for Income Tax Self-Assessment (ITSA), from the tax year beginning 6 April 2024
for all other ITSA taxpayers, from the tax year beginning 6 April 2025

The new regime will be a points-based system and will operate in a similar way to motoring penalties in that the points will elapse after a period of time depending on the regularity of the returns.

For details see: Penalties for late submission - GOV.UK (www.gov.uk)

UK Stickers have now replaced GB stickers

The guidance on what UK goods vehicle operators need to do to carry out international road haulage has changed to refer to the change from GB stickers to UK stickers as UK stickers have now replaced GB stickers.

There will be new rules for transporting goods to or through Europe from 2022. These will affect you if you use vans or heavy goods vehicles (HGVs).

See: Carry out international road haulage - GOV.UK (www.gov.uk)

Tips and Gratuities should go to staff not the employer

The Government is to make it illegal for companies not to pass on tips to their employees. This comes after some major restaurant chains were accused of keeping 10% of tips given to staff.

The Department for Business Energy and Industrial Strategy (BEIS) have announced that new legislation, to be introduced within a year, would help about two million people in the hospitality industry. An updated consultation response was published on 24 September:

See: Tipping, gratuities, cover and service charges consultation: government response (publishing.service.gov.uk)

The current rules for taxing tips, gratuities and service charges are complex and, whilst all tips are taxable, national insurance does not currently apply where the payment is given directly to the staff member.

For current HMRC guidance on the taxation of tips, gratuities and service charges:

See: Tips at work: Tips and tax - GOV.UK (www.gov.uk)

Gift Aid Awareness Day 2021

Gift Aid is a tax relief for individuals which enables them to give the income tax or capital gains tax that they pay directly to a charity on top of their donation. In effect it adds 25p for every £1 donated to a charity. Gift Aid is an important tax relief worth £1.3 billion to the charity sector. This year's Gift Aid Awareness Day is taking place on Thursday 7 October 2021. Charity Finance Group (CFG) are asking UK-based charities, small, medium and large, to spread the “#TickTheBox” message far and wide on 7 October 2021. CFG have produced a 2021 campaign pack for use, which includes logos, posters, infographics and a banner.

See: Charity Finance Group | Gift Aid Awareness (cfg.org.uk)

Allergen Labelling Changes For Prepacked For Direct Sale (PPDS) Food

On 1 October 2021, the law on allergen labelling for pre-packed for direct sale (PPDS) foods changed. This means that any food business selling PPDS foods must include full ingredients on the product label with allergenic ingredients emphasised within that list.

To help support food businesses, the Food Standards Agency (FSA) has launched a PPDS Hub featuring useful information including new labelling guidance for PPDS foods and guides that will be helpful to specific sectors including bakery, butchers, fast food and takeaways, mobile sellers, restaurants, cafes and pubs, and schools. The guides give practical information on PPDS and how these changes could impact a food business.

See: Allergen labelling changes for prepacked for direct sale (PPDS) food | Food Standards Agency

Industrial Energy Transformation Fund Phase 2 Autumn 2021

IETF Phase 2 provides grant funding for feasibility and engineering studies, industrial energy efficiency and deep decarbonisation projects.

The Department for Business, Energy and Industrial Strategy (BEIS) has opened the new Industrial Energy Transformation Fund (IETF) Phase 2: Autumn 2021 competition window.

Businesses in England, Wales and Northern Ireland can bid for a share of up to £60 million in grant funding through the new competition window, which is open for applications until 6 December 2021.

See: Industrial Energy Transformation Fund (IETF) Phase 2: Autumn 2021 - how to apply - GOV.UK (www.gov.uk)

Pump priming grants for Horizon Europe proposals

Grants of up to £5,000 are now available to help UK businesses collaborate with partners in other countries to develop bids for Pillar 2 of Horizon Europe.

The funding, provided by the UK's Department for Business, Energy & Industrial Strategy, aims to develop collaborative activity between UK and EU/associated countries' entities. This activity should focus on Pillar 2 of Horizon Europe, which is Global Challenges and European Industrial Competitiveness.

The purpose of this call is not to implement the proposed projects that will be submitted to Horizon Europe, but to give the UK-based partners the resources needed to collaborate with EU organisations and stakeholders to further develop the idea and the market opportunities.

The funding can be used in a variety of ways, including feasibility studies, application advice and training, partnership building, and dedicated time to take forward an application.

Proposals are welcome:

in all disciplines - engineering, natural sciences, medical sciences, humanities, and social sciences
from research institutes and universities based in the UK and any other type of organisations eligible for Horizon Europe funding, including SMEs, charities and companies

The first wave of this call closes for submissions on 13 October 2021 at 17:00.

See: Horizon Europe Pump Priming Collaboration between UK and EU Partners | The British Academy