We’ve come to the end of another month, and what a month it’s been!

From the extreme changes in temperature to big political changes, it’s been an interesting month to say the least, especially for businesses and firms who are having to adapt to the rapidly changing economic climate.

As we enter a new month, here’s what hit the business, tax and accountancy headlines for July!

Royal Mail Losses and Strikes

Firstly, the chairman of Royal Mail has revealed that the business is losing £1m a day, and has an operating loss of £92m between April and June. Now that the delivery of COVID-19 testing kits has decreased, so has profits for Royal Mail.

Things aren’t looking up either for Royal Mail, 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% of those who turned out to vote on the strike action, 97.6% were in favour.

WhatsApp Scam messages targeting Under-35s

If you’re using WhatsApp, then watch out for potential scammers. People under 35 have reportedly become the “prime target” for those looking to scam others for money.

Energy and Tax Bill scams are becoming increasingly more common under the cost-of-living crisis, with fraudsters building trust with their victims before taking their cash.

Barclays Data has shown people aged 21-30 commonly fall victim to scams, due to the volume that take place on social media, shopping and dating sites.

If your bank details stolen and money is removed from your account, then you’re protected by the law. Make sure you’re taking the correct steps to protect yourself from falling victims to scams, and if you think you may have been targeted, contact your bank immediately and then report to Action Fraud.

New Ad Campaign puts the business’ workers in the spotlight

If you were keeping an eye on Love Island on the 18th of July, then you just may have seen the launch of a brand-new advert from Belvoir Farm.

In an aim to build their brand recognition, Belvoir Farm – a family run business – is showing viewers across the UK exactly how they make their own drinks, with ingredients sourced directly from their land and community, as part of their ‘Welcome To Our Wild’ campaign.

The company is supporting sustainable farming, and since highlighting this on recently launched new packaging, sales have increased by 16%.

For smaller, family-run businesses, finding big stars to help you advertise your products can be tricky, but by focusing on the heart and sole of your company and its employees, advertising can equally tug on the heartstrings and gain the attention from viewers at home. Many small businesses are beginning to get back on their feet after the pandemic, so success stories like this are always welcomed in the industry.

Personal Tax Cuts For 30 Million Brits

As of July 6th, 30 million people in the UK received one of the biggest tax cuts since 2013– helping to individually save up to £330 a year per person.

The change in threshold means that 70% of UK workers will pay less National Insurance, as the level at which people start paying National Insurance has now risen from £9,880 to £12,570.

The change comes as the government decides to make public finances an important focus and responsibility to protect future generations from the outstanding debt due to losses during the pandemic.

Despite this, there are still increasing pressures on the UK government to cut personal taxes further – which the final two candidates in the leadership race have differing opinions on. Whilst Liz Truss has made tax woes and concerns central to help plan to become the UK’s next Prime Minister, Rishi Sunak has reportedly expressed that tax cuts cannot be made until 2023 at the very earliest, due to the current state of inflation.

Tax Relief Rules Change For At-Home Workers

Finally, tax relief rules for those who work from home have changed. At the start of the pandemic in 2020, those who worked from home were introduced to a tax relief amount that could be claimed. Many claimed the £312 as a cost of their employment throughout the pandemic. However, for the 2022/23 tax year, this has changed.

If your employment contract lets you work from home some, or all of the time, you will no longer be able to claim relief, whether or not your home working conditions are due to Covid-19. You also cannot claim relief if your employer has told you to work from home due to insufficient space at their office. Therefore, the majority who claimed this relief through the pandemic are no longer able to make a claim.

The only people who can claim this relief are people whose job requires them to live far away from the office, or if their employer does not have an office. This is important information to consider as we enter into the final quarter of 2022.

With the UK looking to have a new Prime Minister in the coming weeks, there are bound to be many changes for businesses and the general population throughout August and beyond. Make sure you’re keeping an eye on any potential changes that could happen in the next month or so – let’s see what news August has in store for us!

As always Time is Money Bookkeeping is here to answer any of your tax and accounting questions. If you have any questions, please do not hesitate to contact us!