Planning for your future, consultations on flexible working requests and workplace incident reporting, plus the threat facing shared office spaces
We’ve got a mixed bag of topics in today’s blog post! From helping you to take control of your financial future, consultations on processes around flexible working requests and workplace incident reporting, to the huge costs faced by shared office spaces. Read on to find out more!
Why Financially Successful Business Owners Can Still Feel Out of Control
Your business can be doing well financially but you can still feel uncertain about where your personal finances are heading.
For many business owners, wealth has built up gradually and unevenly. For instance, you might have various pensions opened for tax reasons, personal savings and investments built up from good trading years, and surplus cash held in the business “just in case”. You may also be counting on the future sale value of your business.
Income from a business can change year to year, as do tax rules. And decisions about personal finances are often dictated by what the business needs at that moment. These challenges can make it difficult to see the overall picture for you personally.
What practical steps can you take to make sure that your current arrangements will help you to meet your future plans?
Start by getting everything on one page
Would you find it hard to answer the question: “What do I have, and where is it held”?
If so, it would be worth pulling together a basic summary that covers:
- Pensions (including any old workplace schemes).
- Personal savings and investments.
- Surplus cash held in the business.
- Mortgages and other long-term borrowing.
- Estimates on the eventual value of the business.
There is no need to make it complicated. A simple list with current values and how much is being contributed each month is likely to be enough to provide perspective.
Be clear about what each pot of money is for
A common issue can be that money has accumulated without having a clear job to do.
For example, cash in the business might partly be a buffer for emergencies, partly earmarked for a future tax bill and partly just an amount left over from good trading years. Or, you might be treating your personal investments as “long-term”, without thinking about whether that means saving for retirement, university costs, or something else.
Giving each pot a purpose can make your decisions easier. Cash that you need within the next few years can often be treated differently from money that genuinely will not be touched for a decade or more. Without this distinction, it can be easy to be too cautious or too exposed without realising it.
Question long-held assumptions
As circumstances change, it is good to pause and ask whether your key financial decisions are still based on current reality, rather than on assumptions that were reasonable at the time but may now be out of date.
For instance:
- If you are relying on the business to fund retirement, periodically sense-check what that might look like. Rather than working on a best-case sale value, think about what happens if the timing or value is different from what you expect. Is further investment in the business going to give the right payback for you, or is there another option that would be better for you?
- If you have been holding large cash balances in the business to cover uncertainties, ask what that cash is actually for now. Is it still needed for those uncertainties, or is it just sitting with inflation quietly eroding its value?
- If you have pensions or investments set up many years ago, look at whether they still make sense. Perhaps they carry higher charges than another equivalent investment, or perhaps they no longer fit with how you now think about risk and timescales.
Concluding thoughts
Stepping back and getting a sense of the wider picture of your personal finances can help to make sure that they are working in the right way for you. From there, it becomes clearer where you might need to take action and where things can be left alone.
Consultation on Process for Handling Flexible Working Requests
The government has opened a consultation on a new consultation process that employers will need to follow when handling flexible working requests.
The years since COVID have seen a big cultural shift in attitudes towards flexible working, including remote and hybrid working. While there are advantages for many employers and employees, there are some situations where flexible working may not be feasible. For instance, a bus driver cannot work from home to drive a bus.
The new Employment Rights Act is introducing changes that will make it more likely that flexible working requests will be accepted, but it will still be possible for employers to reject them.
Since April 2024, a requirement to consult with the employee about a flexible working request has been in place. However, the way this consultation happens is not specified. Therefore, the government is using powers within the Act to introduce a new consultation process that aims to standardise how employers reject a request.
The process is intended to encourage employers and employees to fully explore viable solutions that work for both and then try them out.
A new ‘reasonableness test’ will come into force in 2027 and means that employers must accept statutory flexible working requests that are reasonable and feasible. The government intends to provide statutory guidance to help employers understand what their obligations under the new reasonableness test will be.
The consultation seeks evidence from employers about how they currently handle flexible working requests. This information will then be used to shape the guidance and resources made available to employers and employees.
To read more and take part in the consultation, see: https://www.gov.uk/government/consultations/make-work-pay-improving-access-to-flexible-working
HSE Consultation on Workplace Incident Reporting
The Health and Safety Executive (HSE) has launched a consultation on workplace injury and illness reporting. Currently, such reporting is covered by The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR).
HSE are consulting on proposed updates to the regulations on how workplace incidents are reported to them.
HSE is consulting on legislative changes that will:
- Clarify definitions within RIDDOR where the existing terminology is unclear or ambiguous.
- Revise the lists of dangerous occurrences and reportable occupational diseases.
- Broaden who can formally diagnose a reportable occupational disease to certain registered health practitioners, and not just a doctor registered with and holding a licence to practise with the General Medical Council.
HSE is also seeking views on simplifying the online RIDDOR reporting form to improve its usability.
The consultation is open until 30 June 2026.
To read more about the proposals and respond, see: https://consultations.hse.gov.uk/hse/proposals-riddor-2013/
Shared Office Spaces Being Hit by Increased Business Rates
Recent changes to the way co-working spaces are assessed for business rates are causing considerable concern in the business community. Some estimate that the changes amount to a £600 million stealth tax raid.
Previously, shared workspaces have been assessed for business rates based on the individual units. This usually means that the rateable value is low enough to qualify for Small Business Rate Relief (SBRR).
However, because of a legal ruling, the VOA is now valuing shared workspaces as a single establishment. This pushes the rateable value too high for SBRR to apply.
The Federation of Small Businesses (FSB) estimates that nearly 4,000 shared offices could be impacted by the change. Some estimate that small businesses could be facing increased rental costs of £5,400 per year.
Shared offices are often a good first step for entrepreneurs looking to expand from a home setup and into commercial premises. However, many small business owners could now be returning to working from home.