10 minute read
Green Issues 12
education providers. Here at Anglia Ruskin University we are working on a project to support SMEs in their shift to this new green way of working. From the data we already have, it is clear that one of the problems is providing the skills needed to enable staff to work on this new tech. One of our partners in this project is Artisan Electrics, a Cambridge-based electrical contractor. Jordan Farley, the Managing Director of Artisan, wanted to work with ARU after discovering there were no training places (within a reasonable timeframe) for his apprentice electricians anywhere in Cambridgeshire. His firm’s work involves a substantial number of installations of electric car charging points for homes and businesses in the area, and business is booming. However, without the staff with the skills to install the points (and other Greentech such as solar panel installation), we cannot drive forward the change, and the lost opportunities here are measured not only in revenue, but also carbon emissions. It is clear we need to invest in people, as much as we do the technology. It is not just the power to ‘fill-up’ EVs we need to enable, it is the knowledge and skills around fixing and servicing them too. Darling of the EV industry Tesla have pushed well into our region from their initial London focus - a service centre in Chelmsford, along with sales centre in Cambridge and another location to open in Norfolk, join a plethora of ultra-fast Supercharger locations opened by the firm in the region in the last two years. Within the more established automotive service providers, from small local garages, to the more visible large dealerships you find in out of town retail areas, we are seeing a distinct shortage of skilled staff to work on the cars too. The Institute for the Motor Industry (IMI) is predicting that there will be a shortfall of 35,700 technicians by 2030 to service electric cars. IMI’s analysis of salary data for 2020 also shows an earning premium of more than 10% – £3,700 per annum – for EV qualified vehicle technicians. If you are thinking of a career as a vehicle technician, it would surely seem very attractive to get those EV skills right
now. However, again, like with the electricians needed, training an EV technician is also proving challenging as education providers simultaneously need to bring their equipment and curriculum up to date. When faced with sector-wide challenges such as these, businesses often look to local and national government for policy and support programmes. So what are government doing to help out? It is clear that we can see signs they are getting serious about supporting the lowcarbon economy, and we have seen some shifts in areas like grants to install Perhaps the most domestic EV chargers which are disappearing important thing is to for owner occupiers. What the government would embrace this change be wise to do here is to funnel these funds into – the recent COP26 support for businesses summit showed us that and education providers to help train the next governments around generation of Greentech workers. Innovation the world realise that a support grants are an area that again, government decarbonisation agenda are focussing on Greentech and decarbonisation, is the only way we can less perhaps to close the protect our planet. skills gap, but certainly by getting businesses to focus in this area, they will to a certain extent be forced to upskill to remain competitive and deliver new products and services. So maybe, the final word on how we continue as businesses in our region to embrace and accelerate the transition to a new, low-carbon way of working is to think about what we can do to help and be competitive? Firstly, do look at the help that Universities can provide in the region – there is funding for decarbonisation, and practical help that can be given to businesses, especially SMEs, and this comes in a number of forms – the websites of all the regional Universities have details on them. Industry bodies as well are offering help to businesses, and the IMI mentioned earlier have a campaign running around skills shortages in automotive, so if you’re in this sector, it is worth looking them up. Perhaps the most important thing is to embrace this change – the recent COP26 summit showed us that governments around the world realise that a decarbonisation agenda is the only way we can protect our planet. Whilst there is a lack of skills training available, a lack of understanding, and support for this transition could put us back years and is harder to fix than providing more training to those who need it.
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TOM STACEY
Tom Stacey is a lecturer in Project, Supply Chain and Operations Management, at the Faculty of Business and Law, Anglia Ruskin University. aru.ac.uk/business-and-law
BUSINESS RATE WIN FOR CLEAN ENERGY TECH
Solar PV, energy storage and other clean energy technologies will be exempt from business rates rises from April 2023, in plans unveiled in the last Budget.
The move is in response to pressure from the likes of the Federation of Small Businesses and the British Property Federation to introduce new investment relief and encourage British businesses to adopt green technologies.
Chancellor Rishi Sunak has committed to providing business rates exemptions and relief in England for eligible green technologies to support the decarbonisation of non-domestic buildings. The move complements the government’s final report on its review of business rates, which gives more detail on how it will look to drive renewable energy generation and storage from 2023 until 2035.
Eligible technologies include rooftop solar PV, battery storage that is used in conjunction with renewables, and electric vehicle charging points.
However, despite similar lobbying from the renewables sector, there is currently no sign of cutting VAT levels for technologies such as solar PV, heat pumps and domestic batteries.
FIRST CLIMATE ACCELERATOR FOR START-UPS LAUNCHES IN CAMBRIDGE
The UK’s first Climate Accelerator is working with start-ups on innovative solutions to address climate change.
Allia Future Business Centre runs free support programmes, and is the first UK partner of EIT Climate-KIC to offer the six-month intensive Accelerator in Cambridge.
The programme involves start-ups with innovative solutions which demonstrate potential for scalable impact, for example in carbon removal, adaptation, technology or a relevant social or environmental enterprise.
The Climate Accelerator provides intensive coaching and mentoring from industry experts and specialist workshops, plus tools and methodologies for estimating and validating climate impact. Most importantly, it will introduce companies to a global network of investors, supporters and partners. The programme will culminate in a pitch day in front of a judging panel and audience of entrepreneurs, industry leaders and funders.
EIT Climate-KIC is the EU’s main climate innovation initiative, supported by the European Institute of Innovation and Technology (EIT), and works with more than 450 global partners. Allia has supported small businesses for over 22 years, running an Impact Accelerator in Cambridge for five years. It was awarded funding from the European Regional Development Fund (ERDF) last year to support hundreds of local businesses across Cambridgeshire and Peterborough. The new funding enables it to deliver free programmes in both locations until June 2023.
For more information about the Climate Accelerator, and to apply for the next course, visit
bit.ly/ClimAcc
MAKING TAX DIGITAL: CHANGE IS ON THE HORIZON
From April 2022, all VAT registered businesses will have to keep digital records and use appropriate software to submit their tax returns.
From 2024, this digital tax system, known as Making Tax Digital (MTD), will expand even further to include those who currently complete Income Tax Self-Assessment (ITSA) as self-employed and/ or who receive income as landlords.
While this will be a big change for some, the transition to Making Tax Digital is being reported, by a good proportion of VATregistered businesses, as simplifying tax returns, making it easier to manage tax payments, and reducing the margin for error.
What is Making Tax Digital and when do the new rules apply?
MTD is the HMRC project to make tax administration more efficient. The new Income Tax Self-Assessment (ITSA) rules were due to come into effect from April 2023, but this has been delayed to 6 April 2024, due to the pandemic. General partnerships won’t be required to join MTD for ITSA until the tax year beginning in April 2025. We’re still waiting for the date, on which all other types of partnerships will need to join, to be confirmed.
Making Tax Digital ITSA eligibility
MTD ITSA will apply to the self-employed and landlords with annual business and/or property income above £10,000. It’s important to note that from April 2024, MTD for self-assessment will apply to: gross income or turnover, not profit the total income if an individual is self-employed and a landlord. From our initial research, HMRC will be using the turnover from the 2022/23 tax year to determine if an individual will have to report from April 2024. In addition, new businesses will be required to join MTD ITSA from the April after they file their first self-assessment tax return. Some groups are exempt from MTD and there are limited exemptions that can be applied for including disability and access to internet.
How will the new digital compliance rules work?
Businesses that come under the new rules will need to sign up for MTD ITSA and keep digital records if they don’t already do so. From 6 April 2024, business income and expense updates need to be submitted quarterly: 5 April / 5 July / 5 October / 5 January. However, you can elect to move these to 31 March / 30 June / 30 September / 31 December, with income finalised at the end of the tax year and a final declaration made rather than a self-assessment tax return. For example: if a sole trade business, which comes under the new MTD ITSA rules, has a 5 April year-end, their first quarter will end 5 July 2024. They’ll have one month to file, creating a deadline of 5 August 2024. So, their first year’s returns would be due as follows:
It’s important to note, that tax payment dates remain unchanged, although you’ll be allowed voluntarily to pay your tax as you go along. You might be wondering what this means if your current accounting year-end doesn’t align to these dates. HMRC have been consulting on their proposals to simplify the rules under which profits are allocated to tax years using basis periods. They are progressing with their plans and the changes will be implemented in preparation for MTD. The basis period reform will mean MTD quarterly updates will be aligned with each other and the tax year.
Return Due date Period covered
1st quarter 5 August 2024
6 April 2024 – 5 July 2024 2nd quarter 5 November 2024 6 July 2024 – 5 Oct 2024 Self-assessment year-end 31 January 2025 Financial year 2023/4 3rd quarter 5 February 2025 6 Oct 2024 – 5 Jan 2025 4th quarter 5 May 2025 6 Jan 2025 – 5 Apr 2025 Self-assessment year-end 31 January 2026 Financial year 2024/5
Getting ready
If you’d like to discuss preparations for these new rules, including compliant software, visit larking-gowen.co.uk, or email enquiry@ larking-gowen.co.uk More details can be found on the Government website at
www.gov.uk/government/publications/impact-of-makingtax-digital-for-vat
William Wadsley LARKING GOWEN
larking-gowen.co.uk
This article is designed for the information of readers. Whilst every effort is made to ensure accuracy, information contained in this article may not be comprehensive and recipients should not act upon it without seeking professional advice.
