Please see below an article received within the hour from Brooks Macdonald which provides a brief recap of the last week and also what could impact on markets this week:

As you can see from the above, politics could have a big impact on markets this week, especially with President Elect Joe Biden’s Inauguration on Wednesday. Also, they will be keeping an eye on this week’s European Central Bank (ECB) meeting.

Please continue to check our Blog content for advice and planning issues and the latest investment, markets and economic updates from leading investment houses.

Please keep safe and healthy.

Carl Mitchell – Dip PFS

IFA and Paraplanner

18/01/2021

Please see article below from Unum’s bWell – wellbeing newsletter received 12/08/2020

Protecting mental health in the post-Covid 19 workplace

Publish Date: 21/07/2020

The events of the past few months have affected everyone. Whether employees have been working from home, furloughed or key workers supporting others and keeping the country going, everyone has faced their own challenges. But as we come to terms with a new way of life, the impact on our mental health is still unclear. So how can employers help prevent mental ill-health in the post-Covid workplace?

If businesses believe the threat’s been blown out of proportion, it’s not a view shared by the UK’s mental health organisations. In June, 62 agencies, including the Mental Health Foundation and Young Minds, wrote to Matt Hancock, the Secretary of State for Health and Social Care. Believing the effects of the unprecedented crisis are likely to be widespread and long-lasting, they asked him to address the “urgent need” to support our mental health and wellbeing.

As we emerge from lockdown, the mental health pressures on employees will change. After dealing with the challenge of social distancing and being separated from colleagues, the thought of returning to the office, getting back on public transport, or coming off furlough could be overwhelming. They are likely to experience a whole range of emotions from excitement and optimism to anger and anxiety. It’s important that employers recognise this and put plans in place to effectively support the mental health and wellbeing of their employees – both for now and the months to come.

Emerging mental health challenges

An ONS survey at the end of May found more than two-thirds (69%) of UK adults said they were very or somewhat worried about the effect of Covid 19¹. But whatever an employee’s situation, the challenges of the last months will have had an impact. Dealing with new ways of working or even not working at all, only make up part of the picture. People have also had to cope with their whole lives changing literally overnight. Juggling childcare and work, being separated from loved ones and dealing with financial pressures are just some of the issues they have had to face.

Feeling more isolated

Even before the pandemic, levels of loneliness were already worryingly high. Somewhere between 6% and 18% of the UK population reported often feeling lonely²– something which can have a significant impact on both mental and physical health. Since lockdown, the number of UK adults who say they often or always feel lonely has risen to 25%³.

Men have been particularly impacted. New research has discovered that 79% of men living alone are struggling with feelings of isolation while working from home, while 39% say their mental health has deteriorated. This increased in young men aged 18-30, where 40% said their mental health has been negatively impacted⁴.

With over 90% of the workforce⁵ saying they’d like to continue working from home at least some of the time after the restrictions are lifted, employers need to consider what this could mean for their employees’ mental health. While working from home avoids a potentially time-consuming commute and can help improve the work/life balance, it can be easy to feel detached and isolated. Employers should think about what measures they can put in place to prevent this happening.

Increased alcohol consumption

One of the side-effects of lockdown has been an increase in our alcohol intake. According to Action on Addiction, a quarter of adults were drinking more in June than before March⁶. Regardless whether this was a way of dealing with boredom, or raised levels of anxiety and stress, 15% of those who are drinking more said they were experiencing problems, including having issues with work. Employers need to be aware of these shifts in behaviour and ensure employees know where to turn if they’re struggling with drink.

Fear of meeting people

Since lockdown began, official messaging has emphasised the need to stay at home and avoid contact with people as much as possible. Even as restrictions ease and more places open, we’re told to stay alert against an invisible threat. The consequences of venturing out and leaving the safety of home can feel immense, especially to those either with underlying health issues or who have a vulnerable family member. Many employees may be worried about returning to work and being alongside colleagues again.

Fear of open spaces or being in a situation that feels unsafe – agoraphobia – was already common in the UK pre-lockdown, with an estimated 5 million sufferers, and one that affects approximately twice as many women as men⁷.

With large numbers of people spending a prolonged period of time at home, this figure is likely to increase. After spending so long in a safe and comfortable environment, many will fear the uncertainty of what their workplace will be like, being surrounded by people again and worry about how they’ll keep themselves safe. It’s vital that employers recognise this understandable anxiety and reassure employees that every precaution is being taken to ensure their safety.

Tips for employers and leaders

• Encourage employees to be proactive and look after their own wellbeing, while reminding them that your door’s always open if they need support.
• Look for any changes in their behaviour or signs that they might be struggling – early intervention can prevent a problem from becoming a long-term issue.
• Consider mental health training to equip line managers with the skills to spot and support an employee who may be having difficulties.
• Provide employees with access to trusted and reputable resources to keep them informed, but not overloaded with information.
• Clearly communicate the safety measures that have been introduced to make the workplace Covid-19 safe and ensure employees understand the guidelines in place.
• Encourage employees to limit how much they talk and share about the virus. The more it dominates the topic of conversation, the more it’s likely to increase fear and anxiety.
• Keep talking to employees, be honest about your plans and acknowledge the concern that’s likely to exist.
• Good work is good for mental health – provide employees with clear objectives and directions so they know exactly what is expected of them.
• Highlight to employees what mental health support is available, such as an Employee Assistance Programme. Clearly communicate how they can access the service and emphasise it will be confidential.
• Signpost employees to appropriate expertise provided by external organisations, such as Mind.
• Consider how you can offer extra support to employees who may be struggling more, such as those with caring responsibilities or those that live alone.
• Recognise employees that are doing a good job and reward their efforts.
• Those that previously have had mental health problems may suffer a recurrence of their illness – be proactive and offer them support.
• Encourage and facilitate volunteering opportunities for employees. Helping others is an effective way to boost mental health.
• Support employees to develop their own skills, providing them with a positive focus and ensuring they look forward, rather than reflect on past difficulties.
• Promote personal care plans for employees – urge them to take the time to think about what they can do for themselves to build resilience and boost their mental health.
• Offer practical support and advice to employees around their journey to work, such as allowing employees to work flexibly, so they can avoid rush hour.
• Encourage the use of video meeting tools like Zoom or Microsoft Teams so people working from home can keep in touch and see colleagues.
• Keep monitoring the situation. Everyone is moving into unknown territory, so regularly check-in with employees to ensure the mental health support available covers all their needs.

Providing employees with the right support to protect their mental health and build resilience will be crucial for employers in both the short and long term as restrictions relax. There is a very real danger that a mental health crisis of unprecedented proportions could unfold. Employers acting proactively can prevent this happening.

The Coronavirus Pandemic has had a major impact on all of our lives and has affected everyone in different ways. As noted above the impact on our mental health is still unclear.

As we gradually emerge from lockdown and start to get used to a new normal, the challenges of returning to the office could be overwhelming for many people. It is important for employers to recognise this and have plans in place to support their employees.

The above article provides some helpful tips for employers and protecting their employees mental health in the workplace.

Please continue to check back for out latest updates and blog posts.

Charlotte Ennis

13/08/2020

Entrepreneurs Relief – The Turning of The Tide

Over the years, when speaking to some clients and asking them about their existing pension provision, some have responded ‘my business is my pension’. This was always a fairly speculative position to take because there is no guarantee of being able to sell the business for what you believe it to be worth, or there being a demand to buy the business at the time you would like to retire.

Entrepreneurs Relief was certainly a benefit for this approach as the rules allowed business owners of two years or more to pay less Capital Gains Tax (10% rather than 20%), when they sell their business, up to a lifetime limit of £10million. However, in the Chancellor’s budget on 11^th March 2020, he announced that he would be reducing the lifetime limit to £1million immediately with limited transitional arrangements.

How Does Entrepreneurs Relief Work?

To summarise, Entrepreneurs Relief results in a tax rate of 10% on the value of the sale of the business. There’s no limit to how many times you can claim, however, from 6^th April 2020, you can only claim up to £1 million of relief during your lifetime.

You have to meet other criteria too for Entrepreneurs Relief to apply.

What does this mean?

Prior to the reduction, business owners could have had a primary focus, which was to grow the value of their business as much as possible prior to selling the business for as much as possible, possibly to retire?

Summary

The change in rules effectively means, business owners may now need to reconsider their options and start to take advantage of planning opportunities available to them in order to maximise the value they get out of their business now, prior to the eventual sale. Your options could include the following:

• Maintain a ‘lifestyle’ business for the long-term;
• Maximising pension funding;
• Investing surplus capital; or
• Paying a higher level of salary or dividends
  • Invest proceeds in a tax efficient manner
• Using a core business to build a network of ‘family’ satellite businesses

If you are a business owner and you would like to know more about the changes in Entrepreneurs Relief and how this will impact you and your plans, please do not hesitate to contact us.

In the meantime, keep healthy and safe.

Carl Mitchell – DipPFS

IFA and Paraplanner

02/04/2020

Reprieve for the Self Employed – With a sting in the tail?

Our Chancellor Rishi Sunak outlined a rescue package that could help the majority of self-employed people over the next few months. These are the basic details:

Self-employment Income Support Scheme

UK Chancellor Rishi Sunak announced yesterday evening help for the self-employed at the daily Government briefing. Here are the details:

What is it?

The Government’s new Coronavirus Self-employment Income Support Scheme is open to those who were trading in the last tax year and are planning to continue to do so. The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 for tax years 2016-17, 2017-18 and 2018-19. More than half of the taxpayer’s income needs to come from self-employment to qualify for the relief.

What help is available?

If a loss in income has been suffered due to the Coronavirus crisis, a taxable grant will be paid to the self-employed individual or partner, worth up to 80% of profits, and capped at £2,500 per month. The grant will be initially available for three months, payable in one lump-sum, and is anticipated to be paid at the beginning of June.

How do I claim the help?

The Chancellor said this will cover 95% of the UK self-employed population.

This is how it works:

• HM Revenue and Customs (HMRC) will use existing information to identify those potentially eligible and will invite applications
• The application form will require confirmation that eligibility requirements are met
• Payment will be made directly into the recipient’s bank account, details of which will need to be confirmed on the application form
• There is no need to contact HMRC now. Those potentially eligible will be contacted by HMRC directly

If a tax return for 18/19 has not yet been submitted the Chancellor has stated that there will be a four-week grace period to allow returns to be filed.

Sting in the tail?

Rishi Sunak went on to say (and I precis) that there would be a levelling of the contributions from self-employed people as they would enjoy similar benefits now to the employed during this crisis.  In fact, the self-employed are potentially better off as they are encouraged to carry on earning too in addition to claiming from the Self-employment Income Support Scheme.

What might this mean? I think the Chancellor was indicating that national insurance contribution levels could be increased.  Now there is a significant difference in what we pay:

Self-employed rates

• Class 2 if your profits are £6,365 or more a year
• Class 4 if your profits are £8,632 or more a year

You work out your profits by deducting your expenses from your self-employed income.

How much you pay

Class          Rate for tax year 2019 to 2020

Class 2         £3 a week

Class 4         9% on profits between £8,632 and £50,000

2% on profits over £50,000

Employee National Insurance rates (standard)

This shows how much employers deduct from employees’ pay for the 2019 to 2020 tax year.

Employer National Insurance rates (standard)

This shows how much employers pay towards employees’ National Insurance for the 2019 to 2020 tax year.

Different categories of employees pay different rates of national insurance, but the above employee and employer rates would be applicable to the majority.

You can see that if you combine the rates below £50,000.00 per annum earnings that employed people generate 25.8% contribution for the State in comparison to 9% for the self-employed.

 Summary

If you are currently trading as self-employed once we (the country) have recovered from COVID 19 you might need to consider how you trade.  Your options could be:

• Increase your charges to cover the extra cost of national insurance
• Earn less
• Trade as a limited company

This is only my opinion but given the debate around self-employed national insurance for the last few years I think changes to self employed national insurance contribution rates are a likely outcome.

Steve Speed

27/03/2020