Author: Glenn

The UK's new National Wealth Fund (NWF) represents a significant shift in the government's approach to fostering economic growth and addressing climate change. Established by the Labour government, the NWF is designed to catalyse private investment in key industries, particularly those related to green technology and infrastructure.

With an initial injection of £7.3 billion, the NWF will channel funds through existing institutions like the UK Infrastructure Bank and the British Business Bank. These institutions have a proven history of unlocking substantial private capital, and under the NWF, they are expected to mobilize billions more to support emerging sectors such as clean energy, decarbonized heavy industry, and advanced manufacturing​.

The fund aims to address two critical challenges: the need for significant investment in green technologies to meet the UK's net-zero goals and the broader objective of stimulating regional economic growth. By doing so, the government hopes to create thousands of high-quality jobs across the country, reduce economic disparities between regions, and ensure the UK remains competitive on the global stage​.

Critically, the NWF is also seen as a response to the global trend of using public wealth funds to drive economic transformation. By leveraging public funds to attract private investment, the UK hopes to position itself as a leader in the green economy while also generating returns for taxpayers​.

Overall, the NWF is a bold initiative that seeks to reshape the UK economy, ensuring it is both sustainable and inclusive, though its success will depend on the government's ability to effectively engage with private investors and local stakeholders.

There is no requirement for employers to pay tax and National Insurance on certain health benefits covered by tax concessions or exemptions. For example, there is no requirement to report employees’ medical or dental treatment or insurance if they are a part of a salary sacrifice arrangement.

In addition, the following health benefits can be provided tax free:

• A maximum of one health-screening assessment and one medical check-up in any year.
• Eye tests required by health and safety legislation for employees who use a computer monitor or other type of screen.
• Glasses or contact lenses required by employees for working on computer monitors or other types of screen.
• Medical treatment for employees working overseas. The employer must have committed in advance to pay for this treatment or must pay the provider directly for the employee’s treatment or insurance.
• Medical treatment or insurance related to injuries or diseases that result from your employee’s work.
• Medical treatment to help an employee return to work. This allows the employer to pay up to £500 in costs for an employee to return to work.
• Any medical or dental treatment or insurance provided that is not exempt must be reported to HMRC. Employers may be required to deduct and pay tax and National Insurance on these amounts.

There are a significant number of reliefs available to businesses that suffer losses. Certain losses that your company has not used in any other way can be carried forwards against profits in future accounting periods. In general, a company can carry trading losses forward to deduct from profits of future accounting periods as long as the trade continues.

However, there are limitations on the total amount of carried-forward losses that can be offset against profits for accounting periods starting from 1 April 2017.

These apply to carried-forward trading losses so that the total:

• amount that can be relieved using carried-forward trading losses that arose before 1 April 2017 is restricted to, broadly, the amount of an allowance up to £5 million, plus 50% of remaining trading profits after deduction of the allowance;
• overall amount that can be relieved using most types of carried-forward losses – including carried-forward trading losses incurred either before or after 1 April 2017 – is restricted to, as set out above, the amount of an allowance up to £5 million, plus 50% of remaining total profits after deduction of the allowance.

Any claim for trading losses forms part of the Company Tax Return. The trading profit or loss for Corporation Tax purposes is worked out by making the usual tax adjustments to the figure of profit or loss shown in the company’s or organisation’s financial accounts.

Pension Credits can provide extra income to those over State Pension age and on a low income. The credits were first introduced back in 2003 to help keep retired people out of poverty.

The Department for Work and Pensions has launched a Pension Credit awareness drive, urging pensioners to check their eligibility for Pension Credit in order to secure this year’s Winter Fuel Payment. This follows the Chancellor’s recent announcement that the Winter Fuel Payment will be means tested in future.

Approximately 1.3 million households in England and Wales are expected to continue receiving Winter Fuel Payments. The government is eager to increase the uptake of Pension Credit to ensure that low-income pensioners who qualify for these payments continue to receive the Winter Fuel Payment. Pensioners must apply by 21 December 2024 in order to make a backdated claim for Pension Credit and be eligible for the Winter Fuel Payment.

Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible. If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs. Not all benefits are counted as income.

Claimants entitled to the Pension Credit could be entitled to a support package worth an average of £3,900 per year. Details of how to make an application for Pension Credit can be found on GOV.UK at https://www.gov.uk/pension-credit/how-to-claim 

The Chancellor of the Exchequer, Rachel Reeves commented that: 

“The dire state of the public finances we inherited from the previous government means we’ve had to make some very difficult decisions.

Our commitment to supporting pensioners remains, which is why we are maintaining the triple lock.

We want pensioners to get the support they are entitled to. That’s why I urge all pensioners to check whether they are eligible for the Pension Credit.”

Employees who are working from home may be eligible to claim a tax deduction on certain work-related bills. If their employer does not cover these expenses or allowances, they can claim tax relief directly from HMRC.

You can claim tax relief if you are required to work from home, such as if your job requires you to live far from your office or if your employer does not have an office. However, tax relief is typically not available if you choose to work from home, even if your employment contract allows it or if your office is occasionally full.

Employees can claim tax relief of £6 per week (or £26 per month for those paid monthly) to cover additional costs of working from home without needing to keep specific records. The amount of tax relief you receive depends on your highest tax rate. For instance, if you pay the 20% basic rate of tax, you will receive £1.20 per week in tax relief (20% of £6). Alternatively, you can claim the exact amount of additional costs incurred, but you must provide evidence to HMRC. HMRC accepts backdated claims for up to four previous tax years.

You may also be eligible to claim tax relief for using your own vehicle, whether it’s a car, van, motorcycle, or bike. Generally, there is no tax relief for regular commuting to and from your usual workplace. However, the rules differ for temporary workplaces, where such expenses are typically allowable, or if you use your own vehicle for other business-related mileage. Additionally, you may be able to claim tax relief on equipment purchased for work, such as a laptop, chair, or mobile phone.

If you are an employee who is working from home, you may be able to claim tax relief for some of your bills that are related to your work. If your expenses or allowances are not paid by your employer, then you can claim tax relief directly from HMRC.