Welcome to the December 2024 Newsletter from Walsh & Co

The British Chambers of Commerce (BCC) recently stated that the pension reforms announced by Chancellor Rachel Reeves 'must unlock growth'. The government believes that pension megafunds will help to increase infrastructure investment to the tune of £80 billion.

Meanwhile, the Institute of Directors (IoD) has suggested that businesses will be frustrated at the government's decision to halt work on the Single Trade Window. The digital service would've helped to streamline data exchange for cross-border trade.

Pension reforms 'must unlock growth'

Pension reforms announced by Chancellor Rachel Reeves 'must unlock growth', the BCC recently said.

Pension megafunds will be created as part of the biggest set of pension reforms in decades. The government says this will unlock billions of pounds of investment in exciting new businesses and infrastructure and local projects.

The radical reforms, which will be introduced through a new Pension Schemes Bill next year, will create megafunds through consolidating defined contribution schemes and pooling assets from the 86 separate Local Government Pension Scheme authorities.

These megafunds mirror set-ups in Australia and Canada, where pension funds take advantage of size to invest in assets that have higher growth potential, which could deliver around £80 billion in investment in exciting new businesses and critical infrastructure while boosting defined contribution savers' pension pots.

Shevaun Haviland, Director General at the BCC, said: 'Increased investment in the UK economy is crucial if businesses are to deliver the growth we all want to see.

'And with firms facing into a wall of fresh costs after a tough Budget, it is important that the Chancellor looks at the options to unlock more funding.

'UK pensions can be a crucial component in doing that. They can generate billions for investment in infrastructure projects and the businesses of the future.'

Business frustrated at halt in rollout of digital trade platform

Businesses will be frustrated by the government's decision to pause work on the Single Trade Window, according to the IoD.

When fully operational, the Single Trade Window will provide a gateway between businesses and UK border processes and systems, allowing users to meet their import, export and transit obligations by submitting information once, and in one place.

However, the government now says that in the context of financial challenges, it is pausing delivery of the UK Single Trade Window in 2025/26.

Emma Rowland, Trade Policy Advisor at the IoD, said: 'It is frustrating to see the government's decision to halt the development of the Single Trade Window due to financial constraints following the Budget, particularly given extensive industry engagement and the project's proximity to completion.

'According to our own data, paperwork remains the largest obstacle for organisations involved in international exports. The Single Trade Window, designed to streamline border processes through a unified platform, has the potential to significantly ease this administrative burden on firms, making importing and exporting more efficient. Additionally, it could enhance data collection to better monitor and understand UK trade flows.

'We urge the government to prioritise the Single Trade Window in the upcoming Spring Spending Review to facilitate trade for all UK companies.'

ESSENTIAL TAX DATES FOR DECEMBER

1 December
New Advisory Fuel Rates (AFR) for company car users apply from today.

19 December
PAYE, Student loan and CIS deductions are due for the month to 5 December 2024.

30 December
Online filing deadline for submitting 2023/24 self assessment return if you require HMRC to collect any underpaid tax by making an adjustment to your 2025/26 tax code.

31 December
End of CT61 quarterly period.
Filing date for Company Tax Return Form CT600 for period ended 31 December 2023.

QUOTE OF THE MONTH

'We are concerned that the increase in employers' NICs could lead to an increase in 'false self-employment' where businesses trying to save money turn to arrangements where the worker is not directly employed by them, without necessarily appreciating the rules and risks of such arrangements.'

Eleanor Meredith, Chair of the Chartered Institute of Taxation's (CIOT) Employment Taxes Committee, commenting on a warning issued by the CIOT which stated that the rise in employer NICs may have 'unforeseen consequences'.

ON OUR WEBSITE

A wealth of resources for businesses
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