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About BAMA

The British Aerosol Manufacturers' Association (BAMA) represents the aerosol supply chain, from suppliers of components and ingredients, to fillers and brand owners. The association offers a range of business support and advice services to members and represents the views of the industry to legislators and regulators.

Changes from April 2021: the burden of tax liability moves from the contractor to the end clients and the recruitment agencies.

From 6 April 2021 the rules for engaging individuals through personal service companies or other intermediaries are changing.
The responsibility for determining if the ‘off-payroll working rules’ (IR35) apply will be with the organisation receiving an individual’s services.

Ensure you understand:

– the impact of the changes on your organisation
– the actions you might need to take before the changes come into effect

BACKGROUND
The workplace should have been a level playing field, where you couldn’t have two individuals working side-by-side doing the same job, with one being taxed as an employee and one being treated as an independent contractor. This hasn’t always happened.

HMRC had estimated that only 10 percent of the contractor population was treating engagements as “inside IR35” and if that wasn’t properly addressed this would cost the Treasury up to £1.3bn per year by 2023-24. Their target is to increase the 10 percent to a third of all engagements being deemed inside IR35.

HMRC believed that the changes would affect approximately 60,000 medium and large-sized end-client engagers and potentially 20,000 agencies.
In terms of contractors, the changes were being presented as 170,000 contractors having less of an administrative burden – possibly because a lot of them would be closing down their PSCs (Personal Service Company).


GOING FORWARD:
(Payroll, HR and recruiting managers will need to understand the changes)

Steps you need to take:

1. Look at your current workforce.
This includes those engaged through employment agencies.

Identify individuals who are supplying their services through their own limited company (sometimes known as a personal service company), or other intermediaries.

Put in place processes to identify future individuals who work in this way.

2. Talk to individuals and agencies you engage with.
You may need information from them on some engagements.

Share the contractor factsheet to help your contractors understand how the changes may affect them.

3. Determine if the off-payroll working arrangements apply.
Check if the rules apply for any contracts that will extend beyond, or start after 6 April 2021.

Decide who in your organisation should be responsible for the determination of employment.

You can use HMRC’s Check Employment Status for Tax (CEST) service to find out if a worker should be considered employed or self-employed for tax purposes:
https://www.gov.uk/guidance/check-employment-status-for-tax

Look at escalations for difficult cases.

Make a determination ahead of April 2021 – as long as the information remains correct.

4. After you’ve determined if the rules apply.
You’ll need to tell the contractor (and any agency you engage with) the outcome.

Use a Status Determination Statement (SDS) to tell them.

5. Who will operate PAYE.
Consider if your organisation or an agency will have to operate PAYE.

If you’ll need to operate PAYE, put in place processes to make sure the correct Income Tax and National Insurance contributions (NICs) are deducted for engagements inside the rules from 6 April 2021.

6. Dealing with disagreements.
You’ll need to set up a process to deal with any disagreements about the employment status determination. This is a legal requirement.

7. Keep records.
You’ll need to make sure you maintain a robust audit trail. It is a legal requirement to keep records.

8. Test your processes.
You’ll need to test your processes, systems and controls to make sure you’re ready.

9. Changing working practices and contracts.
You should follow the processes you’ve set up to revisit status decisions and make new ones if you:

– change working practices
– change contractual arrangements
– renew contracts
– create new contracts

You can find more information about the April 2021 changes for off-payroll working and who it affects, here:
https://www.gov.uk/topic/business-tax/ir35



£40 million government funding to help businesses clean up

Some of the UK’s high-carbon-emission industries will benefit from £40 million funding to help them cut their carbon emissions (Published 7 February 2021)

• £40 million government investment to help polluting industries including steel, pharmaceuticals and food & drink to find new ways to reduce their carbon emissions
• solutions including using heat recovery technology to generate electricity and replacing gas with hydrogen fuel will help businesses cut energy costs, protect jobs, and improve air quality across the UK
• funding supports the government’s mission to build back greener and eliminate the UK’s contribution to carbon emissions by 2050

Some of the UK’s industries will benefit from £40 million funding to help them cut their carbon emissions, while reducing their energy bills, the government announced today (Sunday 7 February).
Businesses in energy-intensive sectors, including pharmaceuticals, steel, paper, and food and drink, will be able to apply for grants worth up to £14 million through the government’s Industrial Energy Transformation Fund – totaling £289 million in funding up until 2024.

In this second competition window, the minimum grant has been lowered to £100,000 for deployment projects, offering more flexibility for small businesses to receive funding so they can speed up getting their ideas to market.
With potential projects taking place across the East and West Midlands, North East, North West, and Yorkshire and the Humber as well as Wales and Northern Ireland, the government grants will enable businesses to use new technology to improve the efficiency of industrial processes and reduce energy demand.
They will drive them towards a cleaner, more sustainable future as part of our green industrial revolution by 2030 and mission to eliminate our contribution to climate change by 2050.
This includes factories installing electric motors and heat pumps to replace their natural gas-fired boilers and steam turbines, manufacturers using heat recovery technology to recycle waste heat and generate renewable electricity, and industries such as the food and drink sector carrying out studies to replace natural gas with hydrogen as their primary fuel.
Doing so will create and support thousands of British jobs, cut carbon emissions and lead to cleaner air for the people of the UK.
Energy Minister Anne-Marie Trevelyan said
We can only achieve our ambitious plans to tackle climate change if everyone plays their part, including businesses large and small.
That’s why our £40 million investment will not only help some of the highest polluting industries like steel, paper and pharmaceuticals build back greener by finding innovative ways to reduce their carbon emissions but will also create more opportunities for growth and jobs by leveling up and making industry fit for the future.
The fund supports the UK government’s mission to build back greener and level up the country’s industrial heartlands by allowing them to lay the path for economic growth.

The government’s Industrial Energy Transformation Fund is worth £289 million with funding available across England, Wales and Northern Ireland up until 2024. The fund supports heavy industry as the UK transitions to a low-carbon economy.
Today’s announcement follows an initial launch in June 2020 which saw 39 applications approved for funding in the first window, totaling £31 million.
It is calculated that as a result of these projects carbon emissions will be reduced by 2.6 million tonnes over their lifespan, which is equivalent to taking 38,000 fossil-fuelled cars off the road over a 30 year period.

The Industrial Energy Transformation Fund (IETF) window opens for applications on Monday 8 March and closes on Wednesday 14 July:

• find out more about applying for funding for the IETF Phase 1: Spring 2021 https://www.gov.uk/government/publications/industrial-energy-transformation-fund-ietf-phase-1-spring-2021-how-to-apply

• the Scottish Government is administering £34 million (£26 million from the IETF) for investment in Scotland and launched the Scottish IETF in December 2020
https://www.gov.scot/policies/energy-efficiency/scottish-industrial-energy-transformation-fund/

Buying goods from EU means extra costs, for consumers and businesses alike

The Trade and Cooperation Agreement between the UK and EU might have scrapped the tariffs on goods moving across the two parties (subject to RoO), but VAT and Import taxes are still in place.

FOR CONSUMERS
As the BBC reports (21 Jan 2021):
Under the new rules, anyone in the UK receiving a gift from the EU worth more than £39 may now face a bill for import VAT – with many items charged at 20%.

For goods costing more than £135, customs duties may also apply, which can range from 0% to 25% of the product you’re buying if they have not been paid by the sender already.

The extra charges are usually collected by the courier on behalf of the government, with customers asked to pay before they can pick up their package.

Some specialist European retailers, such as bicycle part firm Dutch Bike Bits and Belgium-based Beer On Web, recently said that they would stop all deliveries to the UK because of the VAT changes, which came into force on 1 January.

Some firms have started charging additional “handling fees” to shoppers to cover costs associated with extra customs checks and paperwork that must be filled out.

Royal Mail, for example, is charging an £8 fee it says “reflects the cost of clearing items through customs and presenting them to Border Force”.

Meanwhile, delivery firm DHL says it is charging UK customers 2.5% of the amount paid to clear customs, with a minimum charge of £11.

Mail and freight company TNT is also adding £4.31 on all shipments from the UK to the EU and vice versa. It has said this reflects the increased investment it has had to make in adjusting its systems to cope with Brexit.

A spokeswoman for Logistics UK told the BBC that the handling fees were “a commercial decision by individual businesses”.

But Michelle Dale, senior manager at accountants UHY Hacker Young, said that new charges could present a major problem for firms in the coming weeks.

“I think what we’ll find is that a lot of trade with the EU from a business-to-customer perspective will come to a stop until some of these rules are eased,” she said.

A government spokesperson said: “The new VAT model ensures goods from EU and non-EU countries are treated in the same way and that UK businesses are not disadvantaged by competition from VAT-free imports.

“The new system also addresses the problem of overseas sellers failing to pay the right amount of VAT when they sell goods in the UK. We anticipate this will bring in £300m in tax every year, to fund essential UK public services.”

FOR BUSINESSES:
VAT and Import Duties are due imports from outside the UK into GB, and from outside the EU into Northern Ireland.

You can find all the VAT relevant information on this webpage: https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad

Are there any EXEMPTIONS or any way in which the cost can be reduced?
The answer is yes, through Duty Relief Schemes.
There are a variety of such schemes that you might benefit from, depending on a number of criteria: the country of origin of the goods, the typology of goods and the reason for which the goods are being imported.


The main duty relief scheme is the GSP scheme. “The GSP (Generalised System of Preferences) scheme is an EU directive that allows for products being purchased from suppliers in certain countries to be lower-rated or even free from duty. This scheme is in place to allow businesses in developing countries to trade on a wider scale internationally.”

GSP Duty Relief schemes are also known as “trade preferences”; this means you’re allowed to claim duty relief because there is a Free Trade Agreement with the origin country.

To find out if you can benefit from one, the easiest way is to check your product’s commodity code in the UK trade tariff. Under each product’s details, you should be able to see whether it’s eligible for any duty relief schemes and the terms of each scheme.

In addition to duty relief schemes listed under the trade tariff, there are also schemes based on what you’re using the goods for and on how long they’ll remain in the UK.

Below are some of the main of the duty relief schemes available:

Temporary admission; when you bring goods into the UK for designated, short-term use. (For example, an exhibition.) Inward processing; when you’re importing goods from outside of the EU to process then export (either to outside the EU or within the EU) you can claim duty relief. Outward processing; this allows you to export your goods to another (non-EU) country for repair or processing and then bring them back into the UK with full or partial duty relief.

Customs warehousing; customs warehouses allow you to store goods duty and VAT free until they leave the warehouse.

Community system of duty relief; if you’re importing products “for educational, scientific or cultural purposes; to encourage trade (for example, goods for test and commercial samples); for other purposes, for example: awards and decorations, when inherited, received as private gifts” (source: HMRC) you can claim duty and VAT back.

Duty suspensions and tariff quotas for raw materials, parts and unfinished products; if you’re importing goods to finish or use as materials in the UK (goods/materials that are unable to be bought or bought in sufficient quantities from within the EU) you can claim duty relief. The criteria that determine the eligibility for these duty relief schemes and the level of savings associated with them are:

– the type of goods
– the country the goods are being exported to
– the country the goods come from (as set by the ‘rules of origin’!)

To claim a trade preference you need to:br – insert the correct commodity code for your goods
– ensure your goods comply with the rules of origin
– be able to provide evidence of where your goods came from
– ensure you comply with transport rules

It is worth doing a bit of research to verify whether your goods are eligible for a Duty Relief scheme, and applying for it, as the financial savings for your business would be considerable.

Changes to labelling and marking of aerosol dispensers in GB

Changes to labelling and marking for aerosol products (GB)

OPSS has made the preparations necessary for the effective functioning of the product safety and metrology system at the end of the Transition Period.
To help ensure business understand what is expected of them, including on issues such as the use of the UKCA marking, OPSS have produced a range of guidance and advice, all of which is available at:
https://www.gov.uk/guidance/uk-product-safety-and-metrology-from-1-january-2021.

This now includes a ‘What’s Changed?’ summary guide to key changes regarding the specific product safety and metrology legislation amended by The Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019.

This guidance provides a clear indication of what rules and regulations you will be required to comply with now that the Transition Period has come to an end.
To be notified when new material is published on the OPSS pages of GOV.UK, you can sign up for OPSS email alerts via the following link: https://www.gov.uk/government/organisations/office-for-product-safety-and-standards – half way down, under ‘Latest from OPSS’, there is a ‘get email alerts’ button to click on.

As ever, if you have any queries or if there is anything you wish to raise, please do get in touch with the BAMA staff or directly with the OPSS.

Trade event: Indian supplies of Specialty Chemicals

India Virtual Chemicals Event – UK Participants Needed

Dear BAMA Member

The Department for International Trade, together with the Federation of Indian Chambers of Commerce, is organising a Virtual Trade Event and is looking for British Chemical Companies to participate, both chemical manufacturers and end users. If this is of interest to you please let me know or contact victoria.coker@trade.gov.uk directly.

They are looking for users of a wide variety of different chemicals to take part, many of which I know our industry uses extensively. A draft programme is available, please don’t hesitate to contact us if you would like a copy.


Extract: Michael Gove’s staged implementation of border controls

From Michael Gove’s Statement to the House, on EU Exit preparations

The new technology that we’re introducing will allow us to monitor with far greater precision exactly who, and what, is coming in and out of our country.

The Border Operating Model that we published today (13 July) provides clarity about the end-to-end journeys of goods on the move between Great Britain and the EU, including information about controlled goods and the new government systems that will support future trade.

It is important to note that the Border Operating Model does not cover matters relating specifically to the Northern Ireland Protocol.

In the light of coronavirus, and in order to give business and industry more time to adjust – we announced last month that border controls would be introduced in THREE STAGES up to 1 July 2021.

– In the FIRST PHASE, from January 2021, traders importing standard goods will need to prepare for basic customs requirements. Full Customs Declarations will be needed for controlled and excise goods such as alcohol and tobacco products. But people importing standard goods will have up to six months to make their declaration and to pay tariffs. Traders moving goods using the Common Transit Convention will need to follow all of the transit procedures.

– In the SECOND PHASE, from April 2021, we’ll require all products of animal origin, regulated plants and plant products to have pre-notification and the relevant health documentation. Any physical checks will continue to be conducted at the point of destination.

– And in the THIRD and final PHASE, from July 2021, traders moving all goods will have to make full customs declarations at the point of importation and of course pay relevant tariffs. Checks for animals, plants and their products will take place at Border Control Posts in Great Britain.

UK trade tariffs from January 2021

The UK Government announced the UK’s new MFN tariff regime, the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Transition Period.

The new tariff is tailored to the needs of the UK economy. It will support the economy by making it easier and cheaper for businesses to import goods from overseas. It is a simpler, easier to use and lower tariff regime than the EU’s Common External Tariff (EU CET) and will be in pounds (£), not euros.

The Government is taking a common-sense approach to the new tariff schedule by streamlining and simplifying nearly 6,000 tariff lines, and lowering costs for businesses by reducing administrative burdens. The changes include scrapping unnecessary tariff variations, rounding tariffs down to standardised percentages, and getting rid of all “nuisance tariffs” (those below 2%).

The UKGT also expands tariff free trade by eliminating tariffs on a wide range of products. The UKGT ensures that 60% of trade will come into the UK tariff free on WTO terms or through existing preferential access from January 2021, and successful Free Trade Area negotiations will increase this.

This will lower costs for businesses, ensuring they can compete on fair terms with the rest of the world, as well as keeping prices down and increasing choice for consumers.
The Government is maintaining tariffs on a number of products backing UK industries such as agriculture, automotive and fishing. This will help to support businesses in every region and nation of the UK to thrive. Some tariffs are also being maintained to support imports from the world’s poorest countries that benefit from preferential access to the UK market.

The UKGT was designed following widespread engagement with businesses across the UK. As it will come into force on 1 January 2021, it’s important that businesses can familiarise themselves with the new tariff regime ahead of this date.

Please, access https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021 to check:

– what the tariffs apply to
– how to check the relevant tariff
– what goods are covered by tariff-rate quota

Scotland’s Deposit Return Scheme becomes law

As many of you will be aware, yesterday, the Scottish Parliament voted to approve the regulations for the Scottish Government’s Deposit Return Scheme. This final step in the Parliamentary process means the Regulations will become law and confirms a go-live date for the scheme of 1 July 2022.

Zero Waste Scotland was tasked with advising on scheme design, and supporting implementation, and in doing so we have relied on the contributions of a wide range of stakeholders. As such I would like to thank you for your contribution to the development of the scheme and the Regulations.

The regulations are available to view online, at legislation.gov.uk.

Further information is available on our deposit return information hub, https://depositreturnscheme.zerowastescotland.org.uk

Understandably, responding to the COVID-19 pandemic is the priority for businesses and the Scottish Government at this time. Ministers have confirmed that they will continue to closely monitor the impact of COVID-19 on Scotland’s businesses and the implementation of DRS.

As Scotland’s Deposit Return Scheme becomes law, Zero Waste Scotland will continue to support industry moving forward by sharing information and engaging as needed.

I hope you are keeping safe and well.

Yours,
Jill Farrell

Chief Operating Officer
Zero Waste Scotland

Covid-19 safety concerns see BAMA Innovation Day cancelled

The British Aerosol Manufacturers’ Association (BAMA) annual Innovation Day has been cancelled, the association confirmed today, 29 April.

BAMA hopes to be able to bring you the presentations which were planned via a series of Innovation Webinars during the coming months. Invitations will be sent out to BAMA Members after discussion with those who were due to present at the event in July.

Patrick Heskins, chief executive of BAMA, said: “It is with great regret that the decision has been taken to cancel this year’s Innovation day and I know many regular delegates as well as speakers from across the industry will be disappointed.

“BAMA remains indebted to all those who had prepared to participate as well as to the Royal Armouries for working so positively with us to help organise an alternative date which unfortunately cannot now go ahead. We take the health and safety of our members and delegates extremely seriously, and, after discussions with the Royal Armouries, we have agreed that to have suitable social distancing measure in place, whilst still giving both delegates and presenters the chance to meet and interact was not possible. It is in this context that we have taken the decision to cancel this year’s event.

“We will be returning to the Royal Armouries on Wednesday 21st April 2021 and I have every confidence that next year’s event will continue to build on the success of previous years. I look forward to welcoming the industry’s most creative manufacturers and influential thought leaders once again.”

Details of the Innovation webinar will be issued in the coming weeks.

If you would like to register your interest in the webinars or would like to participate in next year’s Innovation Day, please contact Sally Tilbury at sallytilbury@bama.co.uk, or call 020 7828 5111.

BAMA Filling Figures 2019

NEW FIGURES ILLUSTRATE AEROSOL INDUSTRY’S RESILIENCE

Statistics announced by the British Aerosol Manufacturers’ Association (BAMA) reveal 1.521 billion cans were filled in 2019, marking a small drop compared to the previous year’s record performance.
Amidst the uncertainty posed first by Brexit and now by COVID-19, the filling figures for 2019 have been welcomed by industry, reflecting the sector’s resilience and the continued popularity of the aerosol format with consumers.

As in previous years, the personal care sector accounts for the largest volume of products, with anti-perspirants still the biggest seller in this sector and across the industry overall.
BAMA data shows that 484m anti-perspirants were manufactured in 2019, an increase of 7% on 2018 figures while haircare products also saw an increase of 3% pointing to continued innovation, particularly in dry shampoos, with products such as waterless mousses and dry conditioners gaining in popularity.

Patrick Heskins, BAMA Chief Executive, said: “The UK aerosol industry showed it’s resilience despite the uncertainty surrounding trading and political matters throughout 2019.
“In spite of the closure of one of the UK’s major filling companies, and the uncertainties created by the decision to leave the EU, aerosol filling in 2019 only showed a reduction of 1% compared to 2018.
“Looking ahead, COVID-19 presents an altogether different challenge for all of us but the figures prove that the aerosol industry is nothing if not innovative and resilient.”

Production of personal care aerosols continues to dominate UK aerosol manufacturing with more than 74% of the cans filled in this category. The on-going trend for men to sport beards however saw a drop in the production of shaving foams and gels.

Volumes in the household sector remain strong at just over 17% of the total and production of household products into spray cans, particularly air fresheners, increased in 2019. There was also continued growth in the volume of OTC medicines dispensed as aerosols.

The volume of industrial and automotive aerosols filled dropped as a result of some production moving overseas after the closure of McBride in Hull. This, in addition to the drop in shaving preps being filled, caused a shift in the proportion of tinplate and aluminium aerosol cans being used with aluminium now accounting for 57% of the market, up around 7% on last year.

Patrick added: “Aerosols will continue to provide a convenient solution for both commercial and consumer use. I have no doubt we will continue to see sustained growth in the household products and hard surface cleaners for instance, as well as personal care products. Further growth in medical and pharmaceuticals also seems very likely in the years ahead.
“In the face of unprecedented and continued market challenges as well as an uncertain political landscape, the aerosol industry has continued to perform strongly and has clearly demonstrated its significance in UK manufacturing and to the wider economy once again.”