With effect from 1 April 2017:

The National Living Wage for those aged 25 and over will increase from £7.20 to £7.50 per hour.

The National Minimum Wage will also increase as follows:

Apprentices aged 16-18 or over 18 in their first year:             from £3.40 to £3.50 per hour

16-17 year olds:                                                                               from £4.00 to £4.05 per hour

18-20 year olds:                                                                              from £5.55 to £5.60 per hour

21-24 year olds:                                                                              from £6.95 to £7.05 per hour

With effect from 6 April 2017 a new Apprenticeship Levy is being introduced.  This will be charged at 0.5% of the employer’s total pay bill but there will be an offset of £15,000 so only employers with an annual pay bill in excess of £3 million will need to pay anything.  There are the usual rules for connected companies and the levy will be collected on a monthly basis through PAYE.  This will cause problems if bonuses are paid early in the tax year.  For example, if the total pay bill in month 1 is (say) £300,000 (because of bonus payments), a levy of £250 will be payable.  If the total pay bill for month 2 drops back to £200,000 or less, the £250 will be repaid in month 2!

Our previous update on this topic was on 30 August 2016 following the publication of consultation documents by HMRC.  There was a very significant response to these, most of which was unfavourable.

The House of Commons Treasury Committee has considered the HMRC proposals and published a report on 17 January 2017 which has identified a number of serious shortcomings with the HMRC proposals.

The Committee highlighted the additional costs and administrative burdens for very small businesses which they felt might either drive them out of business or into the “hidden economy”.  They also felt that the proposed changes were being introduced too quickly.  Both of these issues could adversely affect millions of taxpayers and their relationship with HMRC.

The original proposal was for all businesses with a turnover in excess of £10,000 per annum to be in MTD, with a requirement to make four quarterly reports every year and a final “sweep up” report after the end of the year.  The Committee considers that turnover threshold to be much too low and proposes instead the VAT threshold, which is currently £83,000 per annum.

The original timetable was for the changes to be introduced from April 2018, but the Committee suggests these should be delayed until April 2019, and possibly later.

The Committee also suggests that there should be proper pilot schemes evaluated before the proposals are implemented.  HMRC have apparently run some pilots on an invitational basis but the Committee has pointed out that the people who are most likely to be adversely affected are also those who are most likely to have declined any invitation to take part in the pilot!  The suggested pilot schemes will need to cover the full reporting cycle of four quarterly reports and the end of year update.

The provision of appropriate software is also an issue.  The Committee points out that there will need to be adequate free software available for smaller and less complex businesses, but the Government has yet to set out how this may be accomplished.

The Government will consider the Committee’s report and respond in due course.

HB Accountants are so pleased to be attending the FSB Hertfordshire Awards 2016 as finalists in categories Best Customer Service, Training & Development and Apprentice of the Year! As this is our first year of entering awards we are overwhelmed that we have been shortlisted amongst some fantastic businesses.

The team at HB Accountants work extremely hard in providing a high standard service and being nominated for the Best Customer Service award fills us with pride. As a training firm, our apprentices play a big role in the company. With 5 current apprentices at HB Accountants we are thrilled to have been shortlisted for both Training & Development and Apprentice of the Year.

We are looking forward to a fantastic night and wish all finalists the best of luck.

Date: Thursday 23^rd June 7pm
Venue: Manor of Groves Hotel, High Wych, Sawbridgeworth, Herts, CM21 0JU

HB Accountants are delighted to announce that we are holding an exclusive Ladies Networking Lunch at Hanbury Manor in Ware, Hertfordshire.

When: Thursday 21st April, 12pm
Where: Hanbury Manor, Ware
Cost: £25 per person, including 2 course lunch

Our unique format enables female business owners to meet, network and market their businesses in a relaxed yet professional atmosphere. Our lunches have always been a great success with around 30 ladies from a variety of business industries attending.

With no professional lock-out, the lunch will start at 12.30pm and you are invited to arrive any time from 12pm. Whilst the lunch finishes at 2pm, ladies are welcome to stay behind to continue networking for as long as they like.