Supporting young employees by addressing loneliness, moving to digital tax for self-assessments, poor customer service from HMRC rumbles on and supporting employees who may be classed as carers – is your organisation ready?
Addressing loneliness among young employees
The UK government has launched a campaign to address the stigma around loneliness with young people. Research shows that 16-to-24 year olds are the loneliest age group, but are also the least likely to take action to help themselves. Many also hide feelings of loneliness out of worry over being judged.
Loneliness among young people can also have an effect on a business. Loneliness in the workplace can significantly affect the performance of employees. Feelings of isolation can lead to decreased motivation, engagement, and productivity.
Loneliness may also contribute to higher levels of stress and anxiety, that knock on to work quality and overall job satisfaction. Therefore, providing an environment that nurtures the mental health and performance of young people may not just be good for them, but also good for your business.
It may therefore be worth considering whether your business can take any proactive steps. For instance, could the steps below help in your business?
- Encourage social interaction: Team building activities, mentorship programs, and regular social events can all help to build camaraderie. Creating opportunities for collaboration and relationship building can help young employees feel more connected to their colleagues.
- Prioritise open communication: Encourage managers to check in regularly with their team members and build a supportive environment where employees feel comfortable expressing their feelings and concerns, whether it’s about work-related challenges or personal struggles.
- Promote work-life balance: Striking a balance between work and personal life is essential for maintaining overall wellbeing. Could you offer flexible work arrangements, such as remote work options or flexible hours, to accommodate the different needs of young employees? Encouraging them to prioritize self-care and allocate time for activities outside of work can bring them joy and fulfilment that will positively affect their approach to work.
- Provide mental health support: Loneliness is a normal part of life, so why not encourage employees to talk about it? Offering access to mental health resources and support services may be helpful. Educate employees about the resources available and ensure that they feel there is no stigma to seeking help for mental health issues.
- Lead by example: Your leadership can make a big difference. By demonstrating genuine care and concern for team members you set a positive tone for the workplace and encourage others to do the same.
By taking proactive measures to address loneliness and support the wellbeing of young employees, businesses can create a more positive and fulfilling work environment where all team members feel valued, connected, and supported in their personal and professional growth.
Making Tax Digital: New policy paper published
A new policy paper has been released by HM Revenue and Customs (HMRC) on Making Tax Digital for Income Tax Self Assessment for sole traders and landlords.
The new tax information and impact note supersedes the previous one and incorporates the changes in scope and timelines announced in December 2022, and other policy amendments and improvements made in the Autumn Statement 2023.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) revolves around requiring businesses and landlords to keep digital records and update HMRC each quarter using compatible software.
The policy paper outlines that MTD for ITSA will be introduced for sole traders and landlords in two phases:
- For those with qualifying income over £50,000, from April 2026.
- For those with qualifying income over £30,000, from April 2027.
The government plans to introduce MTD for ITSA for partnerships at a future time.
The government feel that MTD for ITSA will reduce tax errors, but if the introduction of MTD for ITSA affects you then it may mean making adjustments to the way you currently handle your accounting records. It may also mean keeping more up-to-date with bookkeeping because of the requirement to submit quarterly returns.
As your business advisers, we will be in touch with you well in advance of any changes coming into force. We will be happy to help you with advice on accounting systems or any training that you might need.
Customer service at HM Revenue and Customs reaches new low
According to MPs, phone line waiting times for HM Revenue and Customs (HMRC) continue to worsen. A committee found that nearly two-thirds of callers had to wait more than 10 minutes to speak to an adviser.
The Public Accounts Committee’s report says that in the year to April 2023, the average wait for a call to HMRC to be answered was 16 minutes and 24 seconds. This compares to 12 minutes and 22 seconds the year before.
63% of callers waited more than 10 minutes, increasing from 46% the previous year. This proportion has increased each year since 2018-19.
HMRC’s hold music holds the dubious honour of being among the most streamed!
The issue shows no sign of an easy resolution. HMRC is focusing its attention on digital services such as its app and online services to deal with enquiries.
HMRC have said they received more than three million calls on resetting online passwords, getting tax codes, and checking National Insurance numbers, many of which could have been handled using their digital services instead of calling.
The take home seems to be that if you need to call HMRC, it may be best to do so from an easy chair with a coffee in hand!
See: https://www.bbc.co.uk/news/business-68413088
Cyber security: Evolving tactics from Russian state-linked cyber actors
The UK’s National Cyber Security Centre have highlighted the evolving tactics of Russian state-linked cyber actors.
NCSC has noted that malicious cyber actors linked to Russia’s Foreign Intelligence Service (SVR) have expanded their targeting from governmental, think tank, healthcare and energy organisations to include aviation, education, law enforcement, local and state councils, government financial departments and military organisations.
Traditionally, SVR actors have exploited software vulnerabilities to access information held by organisations in these sectors. However, because of the increasing move to cloud-based infrastructure, these traditional approaches are now less effective.
Therefore, NCSC report that tactics have evolved to try and gain access to these cloud-based systems. But since access to cloud-based systems is far more reliant on gaining initial access to the cloud provider, a good baseline of cyber security fundamentals can help to prevent successful attacks.
- Use of multi-factor authentication, or 2-step verification, and strong unique passwords are good ways to mitigate and defend against this type of malicious cyber activity.
- Making sure that user and system accounts are disabled when employees leave is also key, as dormant or inactive accounts are often involved in a successful cyber attack.
Additional information and mitigation strategies are set out in NCSC’s advisory, which can be found here: https://www.ncsc.gov.uk/news/svr-cyber-actors-adapt-tactics-for-initial-cloud-access
Are you ready? Carers Leave Act comes into force from 6 April 2024
The Carer’s Leave Act comes into force on 6 April 2024, which will affect all employers in the UK.
If an employee has a dependent with:
- An illness or injury (mental or physical) that means they are expected to need care for more than 3 months, or
- A disability that’s defined as such by the Equality Act 2010, or
- Care needs because of their old age,
Then the Act gives them the right to unpaid leave to give or arrange care.
The dependent can be anyone who relies on them for care and not just a family member.
The entitlement to carer’s leave exists from an employee’s first day of work, and their holiday and returning to their job rights, as well as other employment rights, are protected during the leave.
Employees can take up to one week (pro rated for part-timers) of leave every 12 months, and this can leave can be taken in a block or split into individual or half days throughout the year.
The leave entitlement is per employee and not per dependent. Employees who need leave to look after their child can take up to 18 weeks, but this is separate to carer’s leave.
Employees are required to give notice when they want leave, and the Act sets out minimum notice periods. The request does not have to be in writing, and employees don’t have to provide evidence of the care needs.
The Act also sets out when an employer can delay carer’s leave.
For more information, see: https://www.gov.uk/carers-leave