From 1 October 2024, you can be reasonably sure that when you leave a tip or pay a service charge your largesse will benefit the establishment staff, not the business owners.

The following update is reproduced from a news story released by the Department for Business and Trade.

“From Tuesday 1st October, millions of hard working and dedicated workers will benefit from new laws which will ensure they keep 100% of the money they have earned through tips.

“Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on fair and transparent distribution of tips came into force today. These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.

“From 1 October, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal. 

“Most employers already pass on tips to the staff who earn them; however, these laws will crack down on the minority of businesses who continue unacceptable tipping practices.

“Employers in the wrong could be made to pay fines or compensation to staff, with workers able to hold bosses fully accountable through employment tribunals.

“The Department for Business and Trade estimates that today’s changes will mean around £200 million will be received by workers that would otherwise have been retained by these employers. 

“It is hoped that this will build further trust between customers and businesses, as well as create a level playing field for all businesses through the fair and transparent distribution of tips across the board.”

HMRC together with the Department for Work and Pensions (DWP) have issued a press release urging tens of thousands of people to check if they are eligible to boost their State Pension utilising Home Responsibility Protection (HRP).

This HRP scheme has helped protect parents’ and carers’ State Pension. HRP reduces the number of qualifying years a person with caring responsibilities needed to receive, to secure a full basic State Pension. HRP was replaced by National Insurance credits in 2010.

Between 6 April 1978 and 5 April 2010, most eligible individuals automatically received Home Responsibilities Protection (HRP). However, this did not apply in all cases, and it is still possible to apply for HRP if you believe it’s missing from your National Insurance (NI) record. During Pensions Awareness Week, HMRC is encouraging those affected-primarily women at or near State Pension age-to check their NI records for gaps and potentially increase their State Pension at no cost.

If HRP is missing from someone’s NI record, it does not necessarily mean that their State Pension calculation is wrong, but it could be, especially if they took significant time-out from employment to raise a family.

The Exchequer Secretary to the Treasury said:

‘The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.’

If a claim is successful, HMRC will update the individual’s NI record, and the DWP will recalculate their State Pension entitlement. Depending on the individual’s situation, their State Pension entitlement may increase or stay the same.

There are late filing penalties which are designed to encourage companies to file their accounts and reports on time. All companies, private and public, large or small, trading or non-trading must send their accounts to Companies House. A penalty is automatically imposed by Companies House if the accounts are late.

The table of penalties for late submission is as follows:

Failure to file confirmation statements or accounts is a criminal offence which could result in the directors being personally fined in the criminal courts. Late penalties which are unpaid will be referred to collection agents and could result in a County Court judgement or a Sheriff Court decree against the company.

It is possible to appeal against a penalty, but it will only be successful if the appellant is able to demonstrate that the circumstances of the late filing were exceptional, for example, a fire destroying records a few days before the filing deadline.

According to Companies House guidance, an appeal is unlikely to be successful if it’s based on the following examples:

• your company is dormant
• you cannot afford to pay
• your accountant was ill
• you relied on your accountant
• these are your first accounts
• you are not familiar with the filing requirements
• your company or its directors have financial difficulties (including bankruptcy)
• your accounts were delayed or lost in the post
• the directors or LLP members live (or were travelling) overseas
• another director or LLP member is responsible for preparing the accounts.

More than 670,000 18-22 year olds, yet to claim their Child Trust Fund, are reminded to cash in their stash as HM Revenue and Customs (HMRC) reveals the average savings pot is worth £2,212.

Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.

The savings are not held by government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.

If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Young people will need their National Insurance number – which can be found easily using the HMRC app –  and their date of birth to access the information.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said£

‘Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.

‘You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.’

Third-party agents are advertising their services offering to search for Child Trust Funds and agents will always charge – with one charging up to £350 or 25% of the value of the savings account.

Using an agent can significantly reduce the amount received, is likely to take longer and customers still need to supply them with the same information they need to do the search themselves.

Gavin Oldham, The Share Foundation, said£

‘If you are 18-21 years old, the government would have put money aside for you shortly after birth. This investment would have grown quite a bit and it’s in your name. The Share Foundation has linked over 65,000 young people to their Child Trust Fund accounts. It’s easy and free to find out where your money is. Go to  findCTF.sharefound.org or GOV.UK to locate it today.’

In the last year more than 450,000 customers, with just their National Insurance number and date of birth, used the free GOV.UK tool to locate their Child Trust Fund.

Key Performance Indicators (KPIs) are widely used across industries in the UK to measure success and performance. Here are some of the top KPIs commonly used in various sectors:

1. Financial KPIs:

• Revenue Growth: Measures the increase in sales or income over a specific period.
• Net Profit Margin: Percentage of revenue remaining after all expenses.
• Gross Profit Margin: Shows the percentage of sales revenue exceeding the cost of goods sold.
• Operating Cash Flow: Indicates how much cash a company generates from its operations.
• Return on Investment (ROI): Measures the profitability of an investment relative to its cost.

2. Customer KPIs:

• Customer Satisfaction (CSAT): Measures customer happiness or satisfaction with a product or service.
• Net Promoter Score (NPS): Gauges customer loyalty by asking how likely they are to recommend a product or service.
• Customer Retention Rate: The percentage of customers retained over a period.
• Customer Lifetime Value (CLV): Predicts the total revenue a company can expect from a single customer over time.
• Churn Rate: The percentage of customers who stop using a service or product during a given period.

3. Operational KPIs:

• Efficiency Ratio: Compares operational expenses to revenue generated.
• Average Order Value (AOV): Measures the average amount spent each time a customer makes a purchase.
• Inventory Turnover: Tracks how often inventory is sold and replaced over a period.
• Project Completion Rate: The percentage of completed projects or tasks within the expected timeframe.
• Cycle Time: The amount of time required to complete a business process from start to finish.

4. HR and Employee KPIs:

• Employee Turnover Rate: Tracks the percentage of employees leaving over a specific period.
• Employee Satisfaction/Engagement: Measures how content or engaged employees are in their roles.
• Absenteeism Rate: Tracks the number of days employees are absent.
• Training Completion Rate: The percentage of employees who complete required training.
• Productivity Rate: Measures employee output over time, often compared against targets.

5. Marketing KPIs:

• Cost per Acquisition (CPA): The cost of acquiring a new customer.
• Conversion Rate: The percentage of leads or website visitors who take a desired action (e.g., making a purchase).
• Website Traffic: The number of visitors to a website over time.
• Return on Ad Spend (ROAS): The revenue generated for every pound spent on advertising.
• Lead Conversion Rate: Measures the percentage of leads that turn into paying customers.

6. Environmental, Social, and Governance (ESG) KPIs:

• Carbon Footprint: The total greenhouse gas emissions produced directly and indirectly by a business.
• Diversity and Inclusion Metrics: Tracks the representation of different demographics within the workforce.
• Waste Reduction: Measures progress in reducing waste or increasing recycling efforts.
• Energy Efficiency: Tracks energy consumption per output unit.
• Social Impact Metrics: Measures the effect of a company’s actions on communities and stakeholders.

These KPIs vary depending on the industry and the specific goals of a business, but they are commonly tracked across many sectors in the UK to evaluate and improve performance.

Do you use KPIs in your business?

Please call if you would like to create a regular KPI report for your business.

You can typically claim tax relief on private pension contributions up to 100% of your annual earnings, subject to certain limits. Tax relief is applied at your highest rate of income tax, meaning:

• Basic rate taxpayers receive 20% pension tax relief
• Higher rate taxpayers can claim 40% pension tax relief
• Additional rate taxpayers can claim 45% pension tax relief

For basic-rate taxpayers, the initial 20% tax relief is usually applied by the employer. Higher and additional rate taxpayers can claim the extra relief through their self-assessment tax return.

Taxpayers can claim on their self-assessment return for private pension contributions as follows:

• 20% relief on income taxed at 40%
• 25% relief on income taxed at 45%

Alternatively, taxpayers can contact HMRC to claim the relief if they pay 40% income tax and do not submit a self-assessment return.

These rates apply in England, Wales, and Northern Ireland, but there are some regional variations for Scotland.

There is an annual allowance of £60,000 for pension tax relief. Taxpayers can carry forward any unused allowance from the previous three tax years, provided they made pension contributions during those years. The lifetime limit for pension tax relief was abolished as of 6 April 2023.