Category: Partnerships

What is working from home relief?

Posted on | by Jade Donno

Working from home relief = FREE CASH

Due to the current pandemic, many businesses have been working from home this year (ours included). It looks like those who can work from home will be until March 2021 at the earliest.

We have also seen a change in attitude towards flexible working. It has become the ‘new normal’ and many employees may continue working from home in the future.

What many businesses haven’t realised is that they can get free cash from HMRC for working from home. WOW!

So what is working from home relief?

From 6 April 2020 employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home. Employees who have not received the working from home expenses payment direct from their employer can apply to receive tax relief from HMRC.

Find out full details here –  www.gov.uk/government/news/54800-customers-claim-tax-relief-for-working-from-home.

In a very interesting twist Martin Lewis has reported that even if you work from home for just one week, you can still claim a whole years relief. This is a very public statement from Martin Lewis and we are certain that he has proof from HMRC. However there may be a caveat when HMRC realise what they have said.

Read his article here – https://blog.moneysavingexpert.com/2020/04/martin-lewis–working-from-home-due-to-coronavirus–claim-p6-wk-/

Our advice for employees 

If your employer is not paying the allowance, which they are not obliged to, log into the HMRC portal and make your claim. For basic rate tax payers this is worth £62.40 and higher rate tax payers it is worth £124.80. For 10 minutes of your time, it is worth doing!

Our advice for employers

You do not have to pay the allowance. However as we are coming into the festive season, why not incorporate the £6 per week into a Christmas Bonus? There are no PAYE or NIC deductions for the employer or employee making it a great treat for the end of this turbulent year.

How to change your Mindset to trade through a recession

Posted on | by Jade Donno

The global pandemic has hit everyone hard, the knock-on effects of which will be ongoing for the years to come. So how do we make it through? How can we keep trading successfully through the recession? While there are many changes and improvements you can make, the most underrated one by far is your mindset. By simply choosing the right mindset, you can not only survive in the recession but you can thrive in it.

How to change your mindset to successfully navigate the recession

It’s very easy to dwell on the doom and gloom when it comes to the current state of the economy, but what does that do? How does that help us to navigate through the recession so that we can come out of it stronger and more successful, and ready for the economic upturn? In short, it doesn’t.

Here are a few ways that you can change your mindset to a more positive one. One that facilitates growth and success in a time where we need it most:

1, Remember that the economy is cyclical

It’s important to remind yourself that the upturn will come. The economy is cyclical. Yes, we are currently in a downward spiral but there’s still business out there. Businesses are still doing business and they are looking for help. That’s an opportunity for you to try and grab some of that opportunity.

Be creative – how else can you offer value? What does your target audience need help with the most?

2. See this as an opportunity to review and improve

It may be difficult to see but the recession is an opportunity to put everything under the microscope and see whether you can do it differently. In some instances, you could even find a way to do things better. This is a massive opportunity for businesses and one that will go as quickly as it has come.

3. Appreciate that recessions are cleansing times

It might not feel like it now, but recessions are cleansing. If you find yourself less busy, is it because you’ve just weeded out the time-wasters? Many businesses have reported that the recession has forced them to focus on what really matters and as a result, they are focusing on their core business and what they are good at. They’ve found that the clients who were producing the most ‘noise’ have gone and they actually have time to focus on tasks that help their business to grow.

4. Reconnect with your “why?”

We’ve been forced to look at our businesses in a different way so re-evaluate. Why are you doing this? What is it that you are doing it for? What does it actually mean? Reconnecting with why you started is a great way to re-ignite the fire. It’s a great way to self-motivate and to start being proactive.

5. Surround yourself with people who support you

The last way to get the right mindset is to appoint a war cabinet. What we mean by this is surround yourself with people that you trust, people who you can lean on and who can advise you to get through this time. If you choose the right people to have around you, who you can vent to and laugh with, and who can lift you up, it’s really easy to choose the right mindset and to make positive changes.

Believe that you can and you will

Mindset is really all about attitude and you can choose it. If you think you can, you can, but if you think you can’t, then you can’t. It really is that powerful.

If you think that you can grow through this recession, you will, not because of magic but because of the decisions you make and all the things that you’ll put in place. So how can you change your mindset during this recession? How can you innovate and offer more value so that you can grow?

If you would like some more advice on changing your mindset please click here to get in touch. 
Or feel free to use our chat box —>

How to get your distractions under control

Posted on | by Jade Donno

How many times are you distracted during an average workday? Once, five times, ten times?

Now, multiple this by 25.

You’ve probably heard this productivity statistic before – that it takes an average of about 25 minutes to return to the task at hand after you’ve been distracted – so imagine just how much time is being lost to distractions every day.

That means distractions don’t just eat up time during that interruption, but they affect your progress afterwards (e.g. that 30 seconds on social media is actually 25 minutes and 30 seconds), so we have to do something about it.

If you need to be contactable via social media and various messaging apps, it may seem an impossible challenge, but here are some tips on how to get the main distractions under control.

For the social media scrollers…ditch your phone and join an online networking group

A lot of us check our social media throughout the day, but there are some that do it frequently enough that it eats into their productivity. So how do you stop this?

The easy fix is to ditch your phone in the day and not have it with you at all. However, if that isn’t possible, consider adding an app on your phone that tracks your usage or limits you from using it for certain apps. Time limits mean you can tell friends and family that you have to spend your time on clients during the day, even if they see that you’re active on any social media channel during the day.

For the web surfers…install an internet blocking tool

It’s so easy to open up a tab and be diverted from a helpful article to a mass of other websites, so how do you knock it off during work hours?

Another easy fix is to install an internet blocking tool on your computer such as FocusMe or Freedom. These applications allow you to block certain websites for set periods of time so that you can still use the internet for work but you can’t get distracted by, for example, news sites.

For the easily distracted…plan a schedule and stick to it

It can be really hard working from home. Having family there is distracting, so many chores are to be done that are on your mind, and that hour for lunch seems to turn into tackling the household “to do” list. If this sounds like you, then you may be the type of person that is easily distracted.

The way to combat this problem is to create a schedule for yourself both for the week and for every day. It can help you see how much you have to get done and it gives you the discipline to sit down and do it. You can be flexible with this, e.g. setting your work hours earlier because you’re more productive, so find your best routine and stick to it.

For the busy fools…collate groups of tasks together

If you feel like you firefight through your days answering emails and phone calls, only to end the day not having done what you wanted, you can end this chaos! Start managing your time by managing your tasks.

What we mean by this is to group similar tasks together. For example, start your day off with a difficult task or dedicate 30 minutes just before lunch to answer all your emails. If you start grouping tasks together, you’ll find your productivity increases because you don’t have to shift your mindset from one task to another all the time.

For the fidgety folk…create a dedicated working space

For the people who can’t seem to sit still, who need to organise their desk every five minutes or who spend too much time gazing into space or at their photos on the wall, usually, we would recommend working from a café. Since this isn’t really possible right now, the next best thing is to create a dedicated working space at home.

Whether that’s in the spare room or in the conservatory, set up a comfortable desk with minimal distractions around you, and preferably, somewhere that has a door that you can close. This will help you to switch on your work mind when you’re in there, and switch off when you leave.

For the bored, overworked or burnt out…take a real break

Last but not least is the overworked. It’s very difficult working from home, especially if you still have your family at home too, so don’t be too hard on yourself. Not being able to concentrate or ‘switch off’ completely can really impact your productivity in the moment and the next day, so give yourself a break.

Make sure to take regular breaks away from your desk every day, go for a walk, and truly switch off at the end of the day so that you can start the next one ready to smash it.

Re-engaging with and reintroducing furloughed employees

Posted on | by Jade Donno

During this global pandemic approximately 7.5 million employees have been furloughed (more than 1 in 5 of the UK’s workforce) and, for many, this has been for a significant period of time. You may have even furloughed some of your own employees.

For employees that have been furloughed, the challenges of returning to work go beyond struggling to remember passwords, trawling through hundreds of emails to identify the three that are of importance and taking a couple of days to get back into ‘work mode’. It’s not the same as if they have been on holiday for 2 weeks!

For many employees, there will be apprehension around returning to the workplace, a potential loss of confidence in their capabilities, feeling ‘out of the loop’ and adapting back to ‘working life’ as well as possible concerns around working from home or returning to the workplace with child care commitments.    In addition to this, some employees may be feeling resentful at being furloughed whilst others may be experiencing guilt that colleagues worked whilst they did not.  Many will also be fearful of the risk of redundancy.

For businesses to successfully survive this current crisis, great care should be taken when reintroducing furloughed employees back into the workplace, whether remotely or physically coming back to their place of work.  Taking an approach similar to that taken when employees return from a long absence e.g. maternity/paternity leave, long term illness or sabbatical.  Key areas to consider are:

  • Giving sufficient time for the individual to settle in
  • Equip your managers with the tools to support their teams
  • Giving reassurance that their safety and wellbeing are a top priority
  • Creating a new sense of belonging
  • Considering changes to working hours and/or practices

Giving sufficient time for the individual to settle in

It takes on average 3 months for a new joiner to start to feel settled within their new role and whilst it is unlikely to take this long for returning furloughed employees, businesses (and managers) should be prepared for individuals to take a number of weeks to become fully productive and comfortable in their role.  To ease the transition ensure your managers:

  • Regularly check in with the individual, giving the individual the opportunity to discuss their wellbeing and ask questions
  • Set realistic, short term objectives/tasks and singular where possible to give both focus and a sense of accomplishment
  • Ask employees what you can do as an employer and/or manager to make the transition easier
  • Make available training (refresher or new) and where possible, it is in a format that can be easily accessed e.g. eLearning, guides, webinars
  • Consider using annual leave to enable a phased return

Equip your managers with the tools to support their teams

Managers will be key to successfully reintroducing furloughed employees at all levels of your business.  Ensuring managers have access to the right information (from Employee Assistance Programmes to business/department objectives), the right technology to manage teams remotely as well as ensuring they understand flexible working options and have access to HR advice when needed is vital in both supporting their needs and helping them support the needs of their teams.

Giving reassurance that their safety and wellbeing are a top priority

A high number of employees will be apprehensive about returning to the workplace and will need reassurance that their safety and wellbeing is your top priority.  The same applies to individuals working from home.  Ensure you have in place:

  • Suitable levels of PPE supplies (from sanitising gel to high vis vests)
  • Risk Assessments from managing interaction in communal areas to returning to use specialist equipment
  • Health & Safety refresher training (where possible, in formats easily accessible remotely)
  • Information Security refresher training (where possible, in formats easily accessible remotely)
  • Guidance on setting up a suitable working environment at home.  This could be a DSE checklist to more detailed guidance or training
  • Easy access to support services such mental health first aiders, employee assistance programmes and HR teams
  • Social distancing and safety measures are clearly communicated to both employees and customers

Creating a new sense of belonging

Re-engaging employees with the business vision, strategy and values as well as helping them re-establish working relationships help create a feeling of belonging that in turn positively impacts commitment and performance.

Careful consideration of internal communication channels to ensure accessibility as well as content that encourages a sense of belonging is just as important as managers enabling employees to re-establish working relationships with colleagues not only within their immediate team but also across the business.

Providing opportunities to feedback to business leaders on how employees are feeling as well as ensuring those identified as high potentials/future leaders in decision making all create a sense of belonging.

Considering changes to working hours and/or practices

Many employees who have been furloughed have established new routines that may not reflect traditional working hours and businesses may need to adapt to stay successful.  From changing working hours, work locations as well as moving from a time based/presentism mindset to an outcome based approach are all becoming a reality that businesses face.  Things businesses could consider include:

  • Introducing core working hours (e.g. 10:00 – 14:00) and enabling individuals to flex their hours around this
  • Consider rotating furloughed workers in similar roles where returning all employees is not an option
  • Consideration of working from home options, even for roles that are operational (perhaps a day a month to catch up on admin or project work?)
  • Short term working to reintroduce employees to the workplace whilst reducing salary costs
  • Subject to government guidance (still to be issued), part furloughing staff so they return in a limited capacity

The effort placed in ensuring furloughed staff return to an environment that gives them time to re-adjust, provides adequate support, keeps them safe and creates a sense of belonging will impact a business’s bottom line and both business leaders and managers are essential in ensuring success.

How to say “no” nicely (and not damage business relationships)

Posted on | by Jade Donno

How to say “no” nicely (and not damage business relationships in the process)

One of the most important things you can learn as a business owner is how to say “no” nicely and not damage any business relationships in the process. Yes, it is possible. Not only is it possible but it is also essential; essential for the health of your business and essential for your sanity!

So how do you say no politely? How do you stop saying yes to things that waste your time, and drain the energy and resources that could be better spent elsewhere?

3 steps to say “no” (nicely)

1, Start by expressing a desire to help

A “no” can be softened if you start with a statement of regret so let them know that you wish you could help. Something like “Thanks for thinking of me. I really wish I was in a position to help/work with you but I’m afraid that…” This shows your good intentions which makes a “no” easier to accept.

Holding hands

2. Blame yourself and explain to them why

woman crossing arms to say no.

In simple terms, you essentially need to tell the person why “it’s not you, it’s me.” You don’t want them to feel bad for asking or for you to come across in a negative light for saying “no” to their request, so make it clear that you can’t say “yes” because of your own limitations. Maybe your focusing on a specific area of work or you don’t have the time to give them the service that you’d want to. Maybe your business just isn’t the right fit for them.

It helps to provide the person with a simple explanation about why you’re saying no, so keep it short and clear. The most important thing here is that they understand why you can’t help them.

3. Point them towards help

Although you’re saying no to someone, you don’t want to damage your reputation or your relationship with them, so try to help them if you can. After all, you expressed your desire to help at the start of your refusal, so put your money where your mouth is.

Can you offer them an alternative person or business who could help? Can you direct them to a specific resource? If you can give them advice or a next step to move forward, they’ll be left feeling very grateful to you rather than disappointed in you.

hand pointing

Start saying “no” the right way

Saying “no” the wrong way or saying “yes” to projects or people you’d rather not…both of these are doing more damage in the long run. To start saying “no” the right way, follow these 3 simple steps: start with a statement of regret, explain why you’re saying no, and end by offering them the help that you can. If you do this then you’re not damaging any business relationships and you’re preserving the essential energy and resources that you need to propel your business forward.

pregnant lady with heart

Did your pregnancy affect your claim?

Posted on | by Jade Donno

Ask HMRC to verify you had a new child which affected your eligibility for the self-employed income support scheme. 

If you are self-employed or a member of a partnership, and having a new child affected the trading profits or total income you reported for the tax year 2018 to 2019, use the HMRC form to ask them to verify that you had a new child.

If you are already eligible for the grant based on your 2016 to 2017, 2017 to 2018 and 2018 to 2019 Self-Assessment tax returns, how HMRC will work out your grant amount will not be affected.

If you are not already eligible you can ask HMRC to check if you had a new child which either:

  • affected your trading profits or total income you reported for the tax year 2018 to 2019
  • meant you did not submit a Self-Assessment tax return for the tax year 2018 to 2019

For this scheme having a new child is any of the following:

  • being pregnant
  • giving birth (including a stillbirth after more than 24 weeks of pregnancy) and the 26 weeks after giving birth
  • caring for a child within 12 months of birth if you have parental responsibility
  • caring for a child within 12 months of adoption placement

You must have been self-employed in the tax year 2017 to 2018 and have submitted your Self-Assessment tax return on or before 23 April 2020.

You must also meet all other eligibility criteria.

Defer your payment on account

Defer Your Self-assessment Payment On Account

Posted on | by Jade Donno

Choose how and when you can delay making your second payment on account for the 2019 to 2020 tax year.

You have the option to defer your second payment on account if you are:

  • registered in the UK for Self-Assessment and
  • finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus

You can still make the payment by 31 July 2020 as normal if you are able to do so.

The June 2020 Self-Assessment statements showed 31 January 2021 as the due date for paying the July 2020 Payment on Account. This is because HMRC updated their IT systems to prevent customers incurring late payment interest on any July 2020 Payment on Account paid between 1st August 2020 and 31 January 2021. The deferment has not been applied for all customers by HMRC and it remains optional.

HMRC will not charge interest or penalties on any amount of the deferred payment on account, provided it’s paid on or before 31 January 2021.

See: https://www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19?utm_source=5d97ee4d-9a24-4553-9a8e-56287f4de9f3&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

sole traders to get second grant

SELF-EMPLOYED GET SECOND GRANT FROM GOVERNMENT

Posted on | by Jade Donno | Leave a Comment on SELF-EMPLOYED GET SECOND GRANT FROM GOVERNMENT

Sole Traders to get second grant from the Government.

The government’s Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months, the Chancellor announced on Friday 29 May 2020. Rishi Sunak announced the Self-Employment Income Support Scheme will be extended – with those eligible able to claim a second and final grant capped at £6,570.

  • Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
  • Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
  • The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Further guidance on the second grant will be published on Friday 12 June and we will keep you up to date with the details when we know them.

See: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme?utm_source=95036a42-e8c3-49f3-8f73-6300a69ea34a&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

Time to claim your grant if you are self-employed.

Posted on | by Jade Donno | Leave a Comment on Time to claim your grant if you are self-employed.

The portal opens this week to claim your grant is you are self-employed. This is capped as a taxable lump sum of £7500. Once your claim is approved the money will be in your bank account within 6 working days.

To check whether you are eligible for this grant click here. Directors of limited companies are NOT eligible for the scheme.

This is essentially ‘free’ money for sole traders whose business has been adversely impacted by Coronavirus. You will need to confirm to HMRC that your business has been adversely affected by Coronavirus. This could be because you have been unable to work, or Coronavirus has reduced the demand for your services/products.

We cannot make the claim on your behalf. (And that’s HMRC’s decision, not our decision) But we can help you decide whether you are eligible.

To make the claim you will need some important numbers:

  • Your self-assessment unique taxpayer reference number (UTR).
  • Your National Insurance Number

Click on this link to go to the portal

HMRC will then tell you if you are eligible, and the date you’ll be able to make your claim from.

If you can claim straight away, then you’ll also need your:

  • Government Gateway user ID and password (if you don’t have one of these you will be asked to create a gateway account when you check your eligibility)
  • UK bank details including:
    • Bank account number
    • Sort code
    • Name on the account
    • Your address linked to your bank account

At the moment we don’t know whether this scheme will be extended.

If you need any help please email jade@1accounts.co.uk

Have you got a government gateway?

Posted on | by Jade Donno | Leave a Comment on Have you got a government gateway?

The help and advice that is available from the Government is forever changing. This is the latest update we have on how to apply for the self-employed grant. 

For those who are eligible, you will receive an EMAIL, not a letter as we had thought. Be aware that there are lots of phishing emails out there, HMRC’s email does not ask you to click on anything.

If you are unsure if you are eligible please follow this link –  https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme. Please make sure to put capital letters for your NI number otherwise it will fail. If you believe you are eligible but the calculator is failing, please get in touch and we will try and help.   

If you qualify you will be able to claim from the 13th/18th of May. To claim you will need a Government Gateway! 

If you do not have one, please follow these steps to set one up. We recommend you do this NOW to avoid any delays. 

https://www.gov.uk/personal-tax-account

If you have forgotten your username and/or password you can get these reset with HMRC. 

https://www.tax.service.gov.uk/account-recovery/lost-user-id-password/check-email?state=5eb2c2442100008e90c6e413&ui_locales=en-GB 

From what we have seen, we will not be able to claim your grant through our gateway. This could change, but to avoid the delays in getting your grant please make sure your gateway is set up. 

If you need help applying please email jade@1accounts.co.uk