- 100% First Year Allowance. New and unused electric or zero emission cars emission cars benefit from 100% capital allowances. This means that 100% of the cost of the car can be deducted in the first year.
- 18% of the car’s value (main rate allowances). This effectively means that 18% of the purchase price can be deducted from your profits each year before you pay tax.
- 6% of the car’s value (special rate allowances). This effectively means that 6% of the purchase price can be deducted from your profits each year before you pay tax.
Employer company car considerations: Streets Chartered Accountants
If you are thinking about purchasing a company car through a limited company, there are many issues that need to be considered. In this short article Streets Chartered Accountants point out some of the main issues to be aware of, but it is important to properly research this area and weigh up all the available options.
The tax treatment of the purchase will depend on how the purchase of the company car is financed.
The purchase of a company car will be classed as a fixed asset and tax relief will be obtained by way of capital allowances. The amount of capital allowances that can be claimed will fall within one of the following 3 categories:
Smart Repairs supports mercy dashes to Ukraine
Leeds-based Smart Repairs, the independent cosmetic vehicle repairer, has helped to support mercy dashes of crucial supplies to Ukraine.
Dan Besau, the company’s founder and co-owner, has worked closely with the Leeds Ukrainian Community Centre to provide clothing, food and medical equipment for the embattled country.
Dan explained: “Like so many people across the UK, I have been horrified and appalled by what is going in in Ukraine. To see the suffering of innocent and helpless Ukranians has been heart-breaking and, as a company, we have been determined to help in any way we can.
“I have been in close contact with Slava Semeniuk at the Ukranian Centre in Leeds, after being introduced by a mutual friend. Slava has been organising trips to Ukraine and we have been both proud and delighted to help.
“Together we have packed two lorries full of supplies, with much-needed non-perishable food, medical supplies and clothing for men, women and children. We know these have arrived safely and have been gratefully received.
“I would like to thank employees and customers of Smart Repairs, notably Leeds car dealership JCT 600, for raising thousands of pounds to pay for these supplies and for the fuel to get to Ukraine. Their generosity has made a real difference.
“We have also been able to store all these supplies at our headquarters in Weaver Street in Leeds, making sure everything was safe and secure before the trips to Ukraine began,” said Dan.
He added: “In these very challenging times, it has been extremely heartening to watch so many countries across the world support Ukraine. We are proud, by doing our own little bit, to have been part of this support.”
Smart Repairs recently bought the 18,000 sq ft freehold premises at Falcon House in Weaver Street, Leeds, where the supplies for Ukraine were stored.
Leeds-based label manufacturer snapped up by packaging group
All4Labels Global Packaging Group, an international manufacturer of packaging solutions, as well as a pioneer in digital printing, is continuing its global growth strategy through the acquisition of Olympus Print Group, the Leeds-based label manufacturer.
The company offers label solutions for a range of markets with a focus on the Personal Care as well as Wine & Spirits, and Beer industry. Olympus Print Group will become the first subsidiary of All4Labels in the UK.
The former owners will become co-shareholders of the All4Labels Group and will continue to manage the business.
Terms and conditions of the transaction were not disclosed.
Adrian Tippenhauer, CEO, All4Labels, said: “This transaction represents a new milestone for All4Labels as we will get access to the important and dynamic UK market with a strong partner who can cater existing and future customers with high-quality label solutions.
“The acquisition marks the beginning of our strategy to build a leading business unit in the United Kingdom through investments in organic and acquisitive growth. Along with our leadership team, I look forward to working with the Olympus Print Group team on our joint growth and success for many years to come.”
Steve Cartwright, director at Olympus Print Group, said: “After 28 years of building the Olympus brand, we are proud of our reputation for technical expertise, high quality and strong focus on customer service. The decision to join a partnership with a global, like-minded and innovative packaging group was made easy as All4Labels shares the same strong values as Olympus Print Group. The full senior management team and employees look forward to working with All4Labels in the future.”
The new partnership with Olympus Print Group illustrates the fifth successful acquisition by the All4Labels Group within the last twelve months.
The transaction is subject to customary closing conditions.
First-ever UK seafood pavilion takes exporters’ message into Europe
Council awards £1.5m contract for building decarbonisation
Contractor William Birch & Sons Ltd has been awarded a £1.5m contract to decarbonise Bridlington Spa, Beverley-based Annie Reed Road Depot, and County Hall for the East Riding of Yorkshire Council. A further £400k has been spent on project support, delivery, and design by external consultancy AECOM.
The money comes from Phase 1 of the Public Sector Decarbonisation Scheme, which gave the council £1.9m from a £1bn grants pot, reflecting the public sector’s role in meeting the Government’s net zero commitment by 2050.
William Birch’s portfolio spans construction, refurbishment, and restoration projects with a strong emphasis on sustainability.
The Beverley Depot will be benefitting from air source heat pumps to reduce the reliance on gas fired boilers for both heating and hot water.
County Hall will also gain air source heat pumps to reduce the reliance on gas fired boilers for both heating and hot water. Plans are also in place for the installation of energy efficient windows, replacement energy efficient hand dryers and the installation of flow restrictors to hand wash taps to reduce water consumption.
Bridlington Spa will see from air source heat pumps installed and replacement energy efficient windows and upgrading to energy efficient air conditioning units
The Department for Business, Energy and Industrial Strategy (BEIS) launched the Public Sector Decarbonisation Scheme, which will be delivered by Salix, with the aim of supporting the UK’s economic recovery from COVID-19, supporting up to 30,000 jobs in the low carbon and energy efficiency sectors.
Claire Hoskins, interim head of service of Asset Strategy at the council, said: “The decarbonisation of heat within existing council buildings is a significant challenge.
“The award of these three projects represents an important step towards addressing this issue within public buildings and realising the council’s net zero ambitions. Work is already well underway as we look to move into a more sustainable future for the council’s buildings.”
York business group meets to discuss economic challenges
One of York’s key business groups has met to consider the challenges to economic growth it may be facing.
The Leadership Group of York & North Yorkshire Chamber of Commerce has discussed challenges and opportunities facing businesses. The group was joined by the British Chambers of Commerce Head of Economics, Suren Thiru, ahead of lobbying been done by the national group. Suren told the group that the Government was currently being lobbied for support, especially for SMEs and energy-intensive industries, following the disappointment of the Spring Statement last month.
Asked where the current challenges were most prominent in York & North Yorkshire, BCC’s economics guru was told that retailers would appreciate business rate reductions; the hospitality sector was recovering but only slowly; recruitment difficulties were considerable in most sectors, with employers widening their searches; Brexit has consolidated the previous problem due to fewer foreign workers available; and the growing technology sector was facing acute skills shortages.
Suren promised to feed back to other BCC colleagues with regard to policy considerations, although the York & North Yorkshire group is already connected in other ways. West & North Yorkshire Chamber of Commerce is represented on several of BCC’s policy groups, including employment and skills, transport and property. As one of the country’s largest Chambers of Commerce, the national group listens carefully to its views.
Laurence Beardmore, President of York & North Yorkshire Chamber of Commerce, said: “The group had a very fruitful discussion. We know there are further obstacles down the road, whether that’s related to Brexit, Covid or the situation in Ukraine. It’s important that we have a strong dialogue with our national organisation in order that they feel fully informed when speaking to politicians and civil servants in London.”
Other topics discussed by the group included the long-term damage being done to York through the continued lack of a Local Plan, and the city’s prospects of Great British Railways basing its headquarters there.
Record number of CFOs expect significant operating cost rises
Faced with a more uncertain economic climate, a record** number of finance leaders (98%) anticipate operating costs to rise in the year ahead, according to Deloitte’s UK CFO Survey Q1 2022. Almost half of CFOs (46%) expect these rises to be significant.
In light of cost increases, there has also been a sharp deterioration in the outlook for corporates’ margins. A majority of CFOs (71%) believe operating margins will fall over the next 12 months, compared to 44% in the previous quarter. But despite this, three-quarters expect revenues to rise over the next year.
Meanwhile, capital spending remains a strong priority for 21% of CFOs, even with a more challenging operating environment. Although this has dropped from last quarter’s record high (37%), it remains considerably above the five-year average of 14%.
Conducted between 16 and 30 March 2022, Deloitte’s latest quarterly CFO Survey captured sentiment amongst the UK’s largest businesses, against a backdrop of ‘Plan B’ COVID-19 restrictions easing and after the Russian invasion of Ukraine. The latest survey saw 89 CFOs participate, including CFOs of 22 FTSE 100 and 34 FTSE 250 companies. The combined market value of the 58 UK-listed companies that participated is £526 billion, approximately 20% of the UK quoted equity market.
Rising uncertainty and risk
The invasion of Ukraine has heightened the level of financial and economic uncertainty facing businesses. Over half of CFOs (56%) say that the level of uncertainty facing their business is high or very high.
Geopolitics has risen sharply as the top risk facing CFOs’ businesses. With the exception of the pandemic during Q2 and Q3 2020, the risk rating assigned to geopolitics is higher than any other factor since the question was first asked in 2014. Rising inflation, the prospect of further interest rate rises, and persistent labour shortages, also rank high on the list of CFO concerns.
Ian Stewart, chief economist at Deloitte, says: “Rising geopolitical risk in the wake of the invasion of Ukraine and alongside high inflation mean that the external challenges faced by business are greater today than at any time in the last eight years. These risks now far eclipse Brexit and the pandemic, which have dominated the list of CFO concerns in recent years. Over the next year, CFOs believe a mix of rising costs and slower growth are set to squeeze margins.
“In spite of this – as finance leaders have become accustomed to navigating a more volatile business environment – they remain focused on capital spending and growing their businesses.”
Inflation and interest rates
Over three-quarters of CFOs (78%) expect inflation to exceed 2.5% in two-years’ time – the highest reading on record*. Meanwhile more than half (53%) expect inflation to settle between 2.5% and 3.5% in two-years’ time and a quarter expect it to remain above 3.5%.
CFOs expect interest rates to rise substantially over the next 12 months. On average, they expect the Bank of England’s base rate to be 1.5% in a year’s time, double its present level of 0.75%, but below current financial market expectations.
Labour shortages, recruitment difficulties and supply chains
Just over a third (35%) of finance leaders report that their businesses have faced significant or severe recruitment difficulties in Q1 – a slight improvement from Q4 2021 (46%). CFOs anticipate labour shortages will persist, with around one in four saying these will be significant or severe in a year’s time.
In Q1, more than a quarter of CFOs reported significant or severe levels of supply chain disruption. A modest improvement in conditions is expected, with one in six CFOs anticipating similar levels of disruption in a year’s time.
Richard Houston, senior partner and CEO of Deloitte, comments: “It’s clear that businesses are operating in an increasingly uncertain and challenging economic and geopolitical environment.
“However, CFOs are not reporting a widescale shift to defensive strategies, such as cost cutting, seen at the beginning of the pandemic. Introducing new products, services or entering new markets remain the top balance sheet priorities. This continued focus on investment will be vital for resilience moving forward.”
Inflation, skills shortages and cost of living crisis threaten business growth
Increasing energy bills or the overall rising costs of living are the biggest challenges facing almost half (47%) of businesses in the next six months, according to new research by accountancy and business advisory firm, BDO.
The bi-monthly survey of 500 leaders of medium-sized businesses reveals a third will increase the price of their goods and services in response to rising costs. Retail and wholesale businesses have been particularly hard hit, with 39% planning an increase in prices.
Meanwhile, rising costs mean almost a third (30%) of businesses are planning to reduce the number of goods and services they offer, as a result of these products becoming less profitable. 29% are switching to cheaper suppliers to reduce costs.
Warnings from the Office for Budget Responsibility that inflation could reach close to 9% in 2022 are also giving serious cause for concern, with almost two thirds of mid-sized business (59%) having only planned for an inflation rate of 3-5% this year.
As a direct result of rising inflation almost a third (31%) are seeking additional finance, rising to two-fifths (42%) of hospitality and leisure businesses and 36% for retail and wholesale – all industries that have already been hard hit by COVID-19. Even as analysts predict further hikes in interest rates, 29% of businesses are using new or existing overdraft facilities, with a quarter (24%) taking on higher levels of debt to ensure their survival.
Recruitment is another area that threatens to derail growth. More than a quarter of businesses (26%) said finding staff with the right skills is their biggest challenge over the next six months.
24% of businesses are most worried about the cost of hiring and with competition for talent fierce, a fifth (19%) see retaining employees as their biggest challenge this year. Almost a third (30%) are increasing wages in an effort to support staff through the cost-of-living crisis.
Ed Dwan, partner at BDO commented: “This is a deeply concerning time for the UK businesses, with inflation and global uncertainty all threatening to stifle the post-pandemic recovery.
“The large number of businesses taking on new or increased debt piles in a period of mounting inflation is testament to the challenges they face, and the hike in National Insurance this month could prove a tipping point for many in the midst of the cost-of-living crisis.
“These businesses are the engine of the economy and their concerns should not be overlooked. As part of its levelling-up agenda, the Government should consider introducing more targeted policies that encourage investment and drive growth for the UK’s medium-sized businesses.”
Newly-relaunched scheme aims to protect future of UK’s seafood sector
The Fisheries and Seafood Scheme has been relaunched to help support the long-term sustainability, resilience, and prosperity of the seafood sector across England.
Following the success of the scheme, which first opened last year, at least £6m in funding has been secured every year until April 2025, providing long term investment to the sector.
The scheme will continue to fund projects that boost business resilience and increase sustainability across our world-class fishing industry, further strengthening support for food producers across the catching, processing and aquaculture sectors.
This builds on the work of the first year of the scheme, which saw more than 500 projects approved for a range of seafood and marine businesses, charities and other organisations.
Improvements this year include simplified guidance, enhanced levels of funding for micro-entities and funding that is better targeted at the sector’s needs.
Regular reviews will ensure FaSS continues to evolve over the next three years to reflect feedback from across the sector, evolving policies and the needs of the industry.
The scheme will continue to be administered by the Marine Management Organisation on behalf of Defra. The MMO has a team ready to provide advice and support to potential applicants.
Fisheries Minister Victoria Prentis said:”The Fisheries and Seafood Scheme has already approved 500 projects for funding across our sector. Through the scheme, we are better able to target support and invest in projects that champion the seafood sector and support its long-term sustainability.
“We have expanded the scheme until 2025, providing a welcome boost for coastal communities around the country. I urge all eligible organisations to apply.
Tom McCormack, Chief Executive Officer of the MMO, said: “The MMO wants our fishing and seafood sectors to continue to develop, adapt and ultimately succeed as we move forward into our new era as an independent coastal state.“We look forward to working with applicants from across England and supporting our fishing and seafood communities through the continuation of the already successful Fisheries and Seafood Scheme.”
Defra and the MMO will continue to work with industry to provide financial assistance through the FaSS to deliver sustainable growth in the catching, processing and aquaculture sectors, boosting coastal businesses and communities. In addition, FaSS will also deliver some funding through more flexible calls for projects, based on specific policies. For projects which last less than a year, the MMO recommends that applicants aim to complete their project within the same financial year as application. To ensure long-term support is delivered to the sector, the FaSS will now also support multi-annual projects which can be completed up until the end of February 2025.- Further detail on the Fisheries and Seafood Scheme can be found on the scheme webpage.
Government pledges £20m to enhance facilities for HGV drivers
HGV drivers could benefit from a £20m to improve roadside facilities as part of continued government action with industry to boost driver welfare and tackle the effects of the global driver shortage in the UK.
The funding is part of National Highways’ existing £169m, and will go specifically towards improving security, showers and eating facilities as well as exploring increasing parking spaces for lorry drivers. Roadside service operators are being encouraged to apply for the multi-million-pound fund immediately.
The funding takes the total government investment in driver facilities to £52.5m since last year.
Roads Minister Baroness Vere said: “HGV drivers play a key role in keeping our nation running and contributing to the economy, and it is vital they feel safe and comfortable wherever they stop.
“That’s why we’re allocating £20m to ramp up security and improve amenities for drivers – building on the raft of measures we’ve already taken to support the industry. We’ll continue to work closely with the sector to boost professional driver numbers even further.”
Nick Harris, National Highways Chief Executive, said: “We want all road users to reach their destination safely and encourage everyone, from those who drive as a profession through to people traveling on holiday or for leisure purposes, to plan ahead before setting off and to take regular breaks.
“We are dedicated to improving the experience of everyone using our roads and remain committed to working closely with operators of roadside facilities to help improve the standard of parking and other amenities they provide on motorways and major A-roads. We are hopeful that the £20m being announced today will go some way towards achieving this goal.”
