The Child Benefit Charge Trap

As it stands, tens of thousands of people, mostly mothers will be missing out on all or part of their future state pension payments and it is estimated that this number is growing by about 20,000 every year.

The amount of state pension to which we are each entitled is based on the number of years of national insurance contributions. One of the advantages of child benefit payments is that they provided national insurance credits adding to the future state pension entitlement for the stay at home parent.

The High Income Child Benefit Charge ("HICBC") was introduced in January 2013 and has had a big impact on families and their decision not to claim child benefit. 

Under HICBC, if either partner has an income over £50,000, the tax charge will reduce and over £60,000 will wipe out any benefit. The benefit is payable to the lower earner but the tax is bourne by the higher earner.

Since the introduction of HICBC, many families are deciding that they will not clam child benefit and many new families do not submit a claim. This is where the problem lies.

For stay at home parents, usually mothers, registering to claim child benefit provides a National Insurance credit. The number of years that a parent stays at home varies from family to family, but is typically many years and can make a sizable impact on pension entitlement. 

This impact on pension entitlement should be considered when deciding whether or not to claim child benefit.

More importantly, new families must make a child benefit claim.  

Having made a claim, it is still possible to decide not get the payments, but it does ensure;

• national insurance credits that count towards the state pension, and
• the child being registered and issued with a National Insurance number when they turn 16.

Be flexible – and boost your efficiency

The work-life balance of small business owners is out of kilter, research shows.

Time to tweak how your SME operatesin

• 
  Paul Lawton
• Guardian Professional, Monday 13 May 2013 08.00 BST

Giving staff the opportunity to use their personal devices for work is a good way to show flexibility. Photograph: Alamy

Against the backdrop of a tough economic climate, many small business owners are feeling the strain and working harder than ever. We conducted some research to find out the real pressures that Britain's small businesses are currently facing. Turns out, it's pretty tough out there.

The results revealed that nearly half of small business workers now forgo a work-life balance. Business admin in particular is eating up too much time, with many forced to get jobs done outside of working hours. Worse still, almost a third feel stressed and under pressure and one in five admit that, as a result, customer service, as well as their personal relationships, are suffering.

Small businesses may be the engine of the economy but there's no doubt it's an extremely challenging time to own, run or work in a small and growing organisation. I believe that big businesses have a responsibility to lend better support by listening to the challenges, understanding the issues and offering practical services to give small businesses back some of that valuable time. No one has all of the answers – but there are some simple things your small business can do to regain a sense of balance.

Adopt a remote working culture

The adoption of mobile and the rise of connected devices mean we can stay connected, anytime and anywhere. Consumer devices are infiltrating the four walls of the workplace and, as a result, traditional "business" devices are no longer necessarily seen as an attractive option – employees want one device, one point of contact, and the latest technology.

At O2, we launched a Bring Your Own Device (BYOD) programme in December 2011, which is now used by almost 2,000 employees – 60% of our Slough HQ workforce. This number continues to grow.

Employees are empowered by the ability to access the network via their personal devices. This is helping to improve their productivity, but most importantly work-life balance, by allowing them to shape their own ways of working on the devices they like best. Plus, it saves us money as a business.

The advantages of BYOD initiatives can be hugely favourable for businesses as employees feel supported to work in the way that fits their work style best, which can result in improved business agility, cost savings and enhanced productivity. If we can do it as a big business, think what a difference it'll make to a small growing company – removing the pressure of managing multiple devices and giving staff some flexibility.

If you are considering implementing a BYOD policy, security is a key area to be clear on, so make sure that employees have passwords on their devices. You could also put in place software so that you can remotely wipe anything that is business-related should you need to protect it.

Enlist specialist help

Outsourcing to specialist businesses for help with web design, accounting or recruiting new staff means you can spend more time focusing on the critical needs of your business and what it requires to grow.

To make sure you get the right fit first time, it's important to consider working with other companies of a like-minded culture. When deciding which operations you should outsource, think about the areas that are core to your business and those that aren't.

Another option is to outsource complicated paperwork and contracts, such as health and safety management and employment law, to a specialist HR company. The benefit of this is not only more time, but also peace of mind that you have somewhere to seek advice if you need it.

Ultimately, outsourcing is a great way to reclaim some time, providing you select partners in the right way.

Flexible working practices will only become more prevalent as 2013 progresses as more employees use their own devices for work, so it's worthwhile putting in place systems to help staff get better connected now. Alongside bringing in specialist help, you will be well on your way towards recovering time to concentrate on what you do best: running your business
.