Weve come to the end of another month, and what a month its been!
From extreme changes in temperature to major political changes, its been an interesting month, to say the leastespecially for businesses and firms having to adapt to the rapidly changing economic climate.
As we enter a new month, heres what made the business, tax and accountancy headlines in July.
Royal Mail Losses and Strikes
Firstly, the chairman of Royal Mail has revealed that the business is losing £1 million a day and recorded an operating loss of £92 million between April and June. As the delivery of COVID-19 testing kits has decreased, so have Royal Mails profits.
Things arent looking up for Royal Mail either, with more than 115,000 postal workers voting to strike over pay. This is expected to be the biggest industrial action to take place this summer. Of the 77% who turned out to vote on the strike action, 97.6% were in favour.
WhatsApp Scam Messages Targeting Under-35s
If youre using WhatsApp, watch out for potential scammers. People under the age of 35 have reportedly become the prime target for those attempting to scam others out of their money.
Energy and tax bill scams are becoming increasingly common during the cost-of-living crisis, with fraudsters building trust with their victims before taking their money.
Barclays data has shown that people aged between 21 and 30 commonly fall victim to scams due to the volume of fraudulent activity taking place across social media, shopping and dating sites.
If your bank details are stolen and money is removed from your account, you may be protected by law. Make sure you take the correct steps to protect yourself from becoming a victim of fraud. If you believe you have been targeted, contact your bank immediately and report the incident to Action Fraud.
New Advertising Campaign Puts the Businesss Workers in the Spotlight
If you were watching Love Island on 18 July, you may have seen the launch of a brand-new advert from Belvoir Farm.
With the aim of building brand recognition, Belvoir Farma family-run businessis showing viewers across the UK exactly how it makes its drinks using ingredients sourced directly from its land and local community. This forms part of the companys Welcome to Our Wild campaign.
The company supports sustainable farming, and since highlighting this on its recently launched packaging, sales have increased by 16%.
For smaller, family-run businesses, finding big stars to advertise their products can be difficult. However, focusing on the heart and soul of a company and its employees can be equally effective at capturing attention and connecting with viewers at home.
Many small businesses are beginning to get back on their feet following the pandemic, so success stories such as this are always welcome within the industry.
Personal Tax Cuts for 30 Million Britons
As of 6 July, 30 million people in the UK received one of the biggest tax cuts since 2013, helping individuals save up to £330 a year.
The change in threshold means that 70% of UK workers will pay less National Insurance, as the level at which people begin paying National Insurance has risen from £9,880 to £12,570.
The change comes as the government makes managing public finances an important priority, with a responsibility to protect future generations from the outstanding debt caused by losses during the pandemic.
Despite this, pressure on the UK government to cut personal taxes further continues, with the final two candidates in the leadership race holding differing opinions.
While Liz Truss has made tax concerns central to her campaign to become the UKs next Prime Minister, Rishi Sunak has reportedly stated that further tax cuts cannot be made until 2023 at the earliest due to the current rate of inflation.
Tax Relief Rules Change for Home Workers
Finally, tax relief rules for people who work from home have changed. At the start of the pandemic in 2020, those working from home were introduced to a tax relief allowance that could be claimed. Many people claimed £312 towards the costs of working from home throughout the pandemic. However, the rules changed for the 2022/23 tax year.
If your employment contract allows you to work from home some or all of the time, you will no longer be able to claim this relief, regardless of whether your home-working arrangements are related to COVID-19.
You also cannot claim relief if your employer has asked you to work from home because there is insufficient space at its office. Therefore, the majority of people who claimed this relief during the pandemic are no longer eligible to make a claim.
The people who may still be able to claim this relief include those whose job requires them to live far away from their employers office or whose employer does not have an office. This is important information to consider as we enter the final quarter of 2022.
With the UK expected to have a new Prime Minister in the coming weeks, there are likely to be many changes affecting businesses and the wider population throughout August and beyond.
Make sure you keep an eye on any potential changes over the next month or so. Lets see what news August has in store for us!
As always, Time is Money Bookkeeping is here to answer your tax and accounting questions. If you have any questions, please do not hesitate to contact us.