2006 - October
Sometimes you just have to let employees go; it’s not easy, but a pay-off can help sweeten the pill. We’ve found a simple way that ensures the termination payment is tax-free up to the £30,000 limit in most cases. Read on.
You’re about to submit a tax return which shows that a large tax repayment is due. Is there anything else you should do to get your hands on the money?
If you bought your own business property at a bargain price that needed some work done on it, should you repair and make do, or completely refurbish it? What’s the most tax-effective thing to do?
If you own a second property you need to notify the Taxman which is your main home. If you don’t, you are likely to end up with a Capital Gains Tax bill at some point. However, it may not be too late to do something about it. Such as?
There’s still a need for cash even in today’s world of debit and credit cards etc. If you want your company to pay you a regular cash allowance to cover your “expenses” how should you go about it?
The direct debit to pay the leasing costs of your company car(s) comes out of your bank account each month. This payment will include VAT at 17.5%. Do you simply put this Input tax on your VAT return?
With Inheritance Tax, regular gifts made out of your surplus income get left out of your estate when calculating any tax due after your death. OK, but how easy will it be for your executors to prove this to the Taxman?
You’ve just bought a brand new 40-inch LCD television for your home. But what do you do with the old one? Is there a way to sell this to the company in order to get some cash out tax-free?
Preparing for the beauty parade
You’re beginning to get itchy feet and have started having thoughts about selling up. What are the key elements to ensure that the company looks good and is therefore easy to sell at the best possible price?
Are your articles appropriate?
You and your fellow directors own all the shares in the company. But if one of you dies suddenly, what happens to the shares? The company’s articles may provide the answer - but is it the right one?
Be careful with whom you’re associated
As a successful director, you’re considering investing your well-earned cash in a film or property partnership. But by doing this you could unwittingly find your company facing a higher tax bill. What do you need to know to avoid it?
Your get out of jail free card?
After years of delay, the Corporate Manslaughter Bill will finally enter Parliament this autumn. As a director, what are the key points for you to note?
Legislation allows you to charge interest on overdue invoices. But how can you ensure it really works in practice? And what if the boot’s on the other foot and you’re being chased? Do you have to cough up the extra?
The Taxman has recently issued guidance about the changes to Statutory Maternity Pay coming in next year. What are the changes and is there anything you should be doing now to prepare for them?
One of your employees keeps dropping things. His supervisor has told you he’s adopting proper handling techniques, but items seem to slip out of his hands. You’re concerned that he’s a claim waiting happen. So what should you do?
What a fire risk assessment needs to cover
Managing the risk of a fire in your workplace is something that numerous companies are willing to do for you. But why not use our fire risk assessment guide to help you do it yourself?
The health implications of working with metal working fluids were highlighted when 101 Powertrain workers became ill. What happened and what can you learn from this incident?
A TV presenter cheated death in a well-reported 300mph crash. Is there anything that can be learnt from this accident (apart from the obvious)?
One of your staff has asked for a pink hi-visibility vest. You thought it was a joke, but they appear serious and assure you they exist. Should you entertain this request, and is it actually a good idea?
Should you do safety inspections?
It’s been suggested that safety inspections would be a good idea. However, you’re not convinced. You’re sure there are some benefits, but you can also see a downside. Should you bother and if so, how can you get the most out of them?
An HSE prosecution of a plastics company has just highlighted numerous failings which resulted in the death of an employee. What happened and what can you learn from this particular case?
Due to an increasing sickness absence rate, you want to introduce home visits for employees on long-term sick leave. What are the most important issues to consider when amending your sickness policy?
Bank staff - are they really employees?
In your line of business you might have the need to call on so-called “bank staff” at short notice to cover sickness absence and holidays etc. But is there a danger that these flexible workers might actually be protected employees?
How flexible is that flexibility clause?
When drafting employment contracts you probably include a flexibility clause that enables you to ask staff to perform different tasks. But how far, in reality, will such a clause take you?
Getting the (ex-) employee to pay
It’s never been easier for an employee to bring a tribunal claim and as such many are now trying it on. Of course you have to go to the trouble and expense of defending your position. How and when can you ask for your costs?
The rule that employers may be held vicariously liable under the Protection from Harassment Act has been appealed to the House of Lords. What was the outcome?
It’s common to ask new employees to undertake a probationary period at the start of their employment. But is there anything you need to worry about if, at the end of the trial period, you want to extend it?
Dealing with a personality clash
Whilst a recent Court of Appeal case held that a serious personality clash may justify dismissal, you must still follow the statutory disciplinary procedures carefully. What’s the safest way of doing this?
If the VATman writes to you asking for a back-up copy of your last 24 months’ accounting transactions, where do you stand? Can you simply ignore his request?
The Taxman has been under pressure to publish his secret reports. The first of these have just been released. How useful is this?
You want to hire a key employee to help your business expand, but it’s difficult to find someone with the required skills in your area. Is there a tax-efficient way of attracting the right candidate to your firm?
A valid excuse for underpayments
You’re responsible for delivering your tax return on time. Failure to do so can’t be blamed on your tax advisor. However, a recent case shows that the situation is different when it comes to the tax you paid. Read on.
One of your employees has been working for you for quite a few years and you would like to acknowledge their loyalty. Is there a way to reward them with a tax-free gift or bonus?
A colleague has approached you to invest/take shares in his new company. You could take cash out of your company to invest, but that would land you with extra income tax. Is there another way for your company to invest directly?
Making the most of a holding company
There are circumstances in which moving profits from one company to another using service charges can be tax efficient. The only drawback is the likely challenge from the Taxman. But he can be beaten. How?
Although your company may well be profitable, it doesn’t mean that cash is always available and, as a director, you can be sued personally for trading whilst insolvent. What can you do to prevent this?
You recently read about an employment case where the director was personally liable for £25,000. Was this just a one-off or is there cause for concern? What can you do to reduce the risk of this happening?
As a shareholder/director, you take most of your money out of the company as dividends. As the personal allowance has increased this year, how much can you now take out without paying any tax?
The Taxman has written to thousands of directors asking them to check their figures, the implication being that they’ve claimed too many expenses or under-declared income. What’s the status of these letters?
Fancy just one VAT return a year?
In the last budget, the turnover limits for the annual VAT accounting scheme were doubled. If you’re fed up with having to prepare VAT returns every quarter, is this something your company could take advantage of?
The Independent Complaints Adjudicator recently published his report on Companies House. In light of the results, is it worth complaining to him if they get something wrong?
Every now and then you find yourself being asked an awkward question regarding the safety of a particular piece of machinery. If you don’t know the answer, where should you go to get information that you can rely on?
Beating the compensation culture
Over the last few years, there’s been increasing criticism of the burgeoning compensation culture, not least from employers. Luckily, the government has finally introduced new legislation to combat this. What key areas does it cover?
A clear message - well sort of!
The HSC and HSE are in the midst of a campaign to promote managing risks sensibly. However, what do we think of this campaign and what should you do in response to it?
You’re hearing different views concerning lone working. Some say it’s banned, others say you need all sorts of communication equipment etc., but another colleague doesn’t see what all the fuss is about. What’s the truth?
The European week for health and safety starts on October 23. This year it’s all about young workers. Are there any benefits in participating?
A recent case has highlighted the importance of knowing what safety laws are and what needs to be done to comply with them. What did this case identify and how can you ensure you’re not put in a similar situation?
A risk assessment has been completed on one of your processes. To ensure the safety of your workers, they need to wear quite a lot of personal protective equipment. They say it can’t all be worn together. So who’s right?
A colleague whose business offers generous relocation expenses recently came unstuck after reimbursing an employee who only stayed a few months. You don’t want this happening to you, so what should you have in place?
Contrary to our earlier advice, some press reports have stated that rolled-up holiday pay is now illegal in any form. Who’s right?
GPs blame employers for sickness
If a new report by Norwich Union Healthcare is to be believed, most employers aren’t taking enough responsibility in getting sick staff back to work. If so, this could be costing you in terms of money and key clients. What’s the latest?
For one reason or another, cash-flow is a bit of a problem right now. Your accountant has suggested that delaying salaries for a few days would be a big help. But would this amount to an unlawful deduction of wages?
When is a complaint a grievance?
The statutory dispute resolution procedures have been in force for a couple of years and case law is beginning to establish what constitutes a grievance. What does the latest appeal case have to say on this process?
We’re always banging on about the need for this policy or that wording. However, a new case shows just how valuable this paperwork can be - at least if its contents are followed. What’s the latest?
In a further article on the Employment Equality (Age) Regulations, 2006, we show how well established phrases and practices can suddenly become grounds for indirect age discrimination. How can you avoid such a claim?
One source of pollution you can’t guarantee to eliminate is lorry grime and the resulting oily surface in your yard. You’ve been told that there is an oil interceptor installed under the yard, so not to worry about it. Is this the case?
You’ve heard a number of large companies stating they’ve gone “carbon neutral”. What does it actually mean, does it cost a fortune or could it actually be financially beneficial?
You’ve heard about segregating your waste as a way of saving money. Is this really the case, or could it actually cost you money? One of our subscribers told us of their experience. So, should you bother?
You’re looking for new land to extend your business. However, a colleague has warned you to have some environmental checks carried out as part of your survey. Is this going over the top or could it be a worthwhile investment?
To get your staff on board with your environmental plans you want to do something with an instant impact. What are your options?
You’ve had a letter from an Environment Agency inspector. You’re not entirely sure what he actually wants you to do, or what will happen if you do nothing. How can you find out, and are there clues within this letter?
Can’t see the wood for the trees
Additional parking is required and you’re considering felling a number of trees to free up space. A colleague has suggested that the trees may be protected under a Tree Preservation Order. What is this Order and what does it mean?