August Newsletter

August Newsletter

Unlimited paid holiday allowance

Unlimited paid holiday allowance is fast becoming an increasingly popular benefit. It sounds very appealing but it can be difficult to implement. Such policies are particularly popular with American tech businesses such as Netflix, LinkedIn, and the like. In an increasingly competitive market where businesses are battling to attract talented employees, unlimited paid holiday allowance is seen by many potential employees as an incredibly attractive benefit.

On the face of it, allowing staff the freedom and flexibility to take time off as they please certainly gives your business an edge over rivals who don’t offer such a benefit. 

From your team’s perspective, they can work and play as they want, and this can make for a happier and more productive workforce. However, implementing an unlimited holiday allowance policy is harder than it seems. People can be bad at taking holiday and may be reluctant to do handovers and pass responsibility for deadlines over to others. Instead they may choose to just keep working. Some staff may become anxious about being seen to take too much holiday and may actually end up taking less as a result.

In an environment that has set objectives and performance metrics, it can be hard to get people to take time off. With a fixed holiday allowance, you can encourage them to take a set amount of holiday each year. If holiday is unlimited and there is no clear expectation, management can struggle to get people to take holiday. If holiday allowance is open and completely flexible, some employees may abuse the system and leave other colleagues to pick up the slack which can lead to tension between colleagues.

If team members regularly take extended holiday, they could end up paying the price when they return to the office. They may have to work day and night to catch up. This could have a negative effect on their home life and lead to stress or burnout. Due to the ongoing pandemic, many businesses are now experimenting with flexible working arrangements in order to find what works best for their team. As such, the limitations of unlimited holiday policies could soon be more widely tested.

Histon Hornets

We are delighted to announce that we are sponsoring Histon Hornets U15 boys football team. Histon Hornets were first affiliated to the Cambridgeshire playing leagues back in the 1970s and have grown from only a few age groups to now over 30 teams of boys, girls, adult men and adult women all competing in Cambridge leagues. 

Histon team Manager Martin Kirkup said: “I’d like to offer a huge thank you to everyone at Fletcher Thompson for their very generous support, without such sponsorship, our team simply could not survive.”have grown from only a few age groups to now over 30 teams of boys, girls, adult men and adult women all competing in Cambridge leagues. Best of luck to the U15s this season.

 

Newmarket Cricket Club

As mentioned in our May Newsletter, we are also sponsors of Newmarket Cricket Club. The club are currently second in Division 2 of the Cambridgeshire & Huntingdonshire Premier League. In recent weeks, club Chairman Frank Stennett has explained how the club plan on improving their home ground facilities, which will not only benefit the development of current players, but it will also benefit the local community as the club plan on making the improved facilities free of use to all schools in the Newmarket area.

 

Company loss relief can be claimed early

Where a company makes a trading loss of no more than £200,000 in an accounting period it is now possible to claim relief for that loss even though the corporation tax return CT600 has not been submitted. This will enable the company to carry back the loss to earlier years and obtain a repayment of tax previously paid.

HMRC will however need evidence of the loss to support the claim, in particular a PDF of the company’s management accounts for the period.

In determining whether the loss is no more than £200,000 the company is required to claim all available reliefs, in particular capital allowances.

Where companies are members of a group the £200,000 limit applies to each individual company. Note that for members of a group the £2,000,000 limit on the temporary extended carry back applies to the group as a whole. The extended carry back allows companies to carry back trading losses two further years in addition to the normal one year carry back.

Losses carried back will result in a repayment of corporation tax at 19% whereas if carried forward against profits the losses may save tax at up to 25% after April 2023.

 

Stop networking and focus on connecting

Networking is about knowing more people. Connecting is about knowing people more. We all know lots of people professionally or personally, but we are only really connected with a small percentage of those people.

When you are at a business, social or charitable event, you will likely run into many people you know. But in many cases, you will know them “socially” or “professionally”, which is a way of saying you know them, who they are, but are not deeply connected with them and have no investment in their successes or failures.  A good example of this is LinkedIn. You may have 2,000 people in your LinkedIn network but if you run through that list, you may find that you are only truly connected with 50-100 of those people.

True connections make up your community. They are the people with whom you have built a relationship based on mutual respect and trust. They may send you business referrals or you may be the person they ask for advice before they make a personal decision. True connections often cross the line between business and personal. If you build a great connection with a business contact, you may, for example, end up socialising with their family and yours.

So how do you go about building more connections? Learn how to talk about yourself in a meaningful, engaging and memorable way. If we want to build a mutually beneficial relationship with a person, we have to be clear about who we are, what we’re doing and how we could potentially help one another along the way.  Figure out how to help and support the person that you are trying to connect with.

Focus on creating a mutual transfer of knowledge and information. Share success stories and discuss challenges that you both face. This may help you to find some common ground.

Don’t reach out to a contact and ask for a favour straight away. Get to know them first, demonstrate your potential and then do something of value for them. For example, offer to make a helpful introduction to someone in your network. Once you have done that, they will be more open to doing a favour for you at some point in the future. Developing your connections may be a bit more difficult in the current environment so you may have to adapt your approach. For example - rather than meeting a contact for a drink after work, you may have to set up a virtual drink on Zoom or Skype. The key is to adapt your strategy and to give it a go. The more you try to build connections, the better you will get, over time.

 

Fantasy Football

The Premier League 2021/22 season is fast approaching and we would love for you to join our Fantasy Football League. The new season kicks off on Friday 13 August. This date is known to be unlucky for some, and here at Fletcher Thompson we would like to think that this superstition extends to Arsenal; who will be kicking off against Brentford in the opening game.

To join our league, please visit: https://fantasy.premierleague.com/leagues/auto-join/fapalf. League code: fapalf

Each month we will be offering Manager of the Month, with the winner getting a bottle of fizz! 🍾 The person with the most points at the end of the season will win a £100 gift voucher.

You must enter your team by 6:30pm on Friday 13 August in time for the opening weekend fixtures. Good luck! We look forward to playing you this season.

 

 

DIARY OF MAIN TAX EVENTS

AUGUST / SEPTEMBER 2021

Date

What’s Due

19/08

PAYE & NIC deductions, and CIS return and tax, for month to 5/8/21 (due 22/08 if you pay electronically)

 

01/09

Corporation tax for year to 30/11/20 (unless pay quarterly)

 

19/09

PAYE & NIC deductions, and CIS return and tax, for month to 5/9/21 (due 22/09 if you pay electronically)