2014 -
June
FINANCIAL ACCOUNTING - 27.06.2014
Converting from cash to accruals accounting
Your company is acquiring the business of an unincorporated competitor. This business has previously prepared its accounts using the cash basis - how should you bring it into line with standard accruals accounting?
PRICING - 27.06.2014
Testing the economics of your prices
The company has not updated its pricing for some time. Before settling on new rates, the MD has asked you to benchmark the existing rate card against the company’s business model. How do you do it?
TRANSPORT - 27.06.2014
Fuel for thought
Some reports have suggested that city drivers are getting a better deal on fuel than those in rural areas. Could this really be true and should you be shopping around for petrol and diesel?
OFFICE COSTS - 27.06.2014
Coffee from a machine?
Many employees happily take free coffee and tea for granted, but providing it costs their employers hundreds of pounds. You’ve thought about rationing but could a machine cut costs per cup and keep staff topped up with caffeine?
ABSENTEEISM - 27.06.2014
Sporting losses
The World Cup isn’t the only sporting event that could distract your staff this year. With the Ryder Cup and Commonwealth Games also taking place, you need to be aware of dubious absences. Could some flexibility for your staff actually save you money?
SPREADSHEETS - 27.06.2014
Recovering a lost file
You’d been working on an important Excel file for several hours when the unthinkable happened - you accidentally closed it without saving. You tried the “recover unsaved workbooks” option but it wasn’t there. What else can you do?
TRAVEL COSTS - 27.06.2014
Tandem travel savings
A railcard for couples offers train fares for up to 33% less. But could it help you and your staff cut travel costs too? If so, what sort of savings could your business benefit from?
STAFF COSTS - 27.06.2014
The financial advantages of taking on apprentices
Research based on 2013 data has found that offering an apprenticeship increases business productivity. As another school year ends, the pool of potential apprentices is likely to be at its highest, so is it worth considering now?
HOLIDAY PAY - 27.06.2014
Does commission count?
The Court of Justice of the European Union has issued yet another ruling on what needs to be taken into account when calculating holiday pay. This time it’s about commission. What’s the outcome?
MANAGEMENT ACCOUNTS - 27.06.2014
Accounting for directors’ dividends
In common with many owner-managed businesses, the directors of your company are paid a mixture of salary and dividends. How do you resolve the inevitable confusion this causes in the monthly management accounts?
BANKING - 27.06.2014
Claiming extra compensation for a mis-sold rate swap
If your company was mis-sold an interest rate swap, the bank should have sent a redress letter to you by the end of May 2014 (although several banks missed this deadline). If you received such a letter, should you accept the offer?
PAYMENTS - 27.06.2014
Prompt payment discounts - what’s new?
The VATman has decided that the current VAT treatment of prompt payment discounts is resulting in a tax loss in some circumstances. As a result the rules are to change for everybody. What’s to know?.
OVERSEAS VAT - 27.06.2014
Save VAT with a tax warehouse
Moving excise goods within the EU can have unforeseen tax consequences. However, using tax warehouses can simplify matters and reduce VAT and compliance costs. What’s involved?
OVERSEAS ISSUES - 27.06.2014
In what capacity should you act for overseas clients?
If you act for an overseas client you can either be their agent or their representative. Are there any differences, what could be the consequences and how should you protect your position?
Overseas clients - the options
OUTPUT VAT - ANTIQUE FAIRS - 27.06.2014
VAT due on stall hire?
If you run antiques fairs or similar events you may have heard that you now have to charge VAT on stall hire. But is this really true and, if so, at what rate should the VAT be charged?
VAT RETURNS - 27.06.2014
Telephone filing
The VATman has published the results of the consultation on alternative methods of submitting VAT returns. So will you always have to file online?
PERSONNEL MANAGEMENT - 27.06.2014
It’s too hot: can we go home?
If, as predicted, there are some scorching hot days this summer, you might receive complaints from employees. But do they have the right to stop working when the temperature reaches a certain point?
TRADE UNIONS - 27.06.2014
Trade unions and private sector employees
Apparently, private sector employees are signing up for trade union membership in their thousands. Assuming one of yours does so, are you legally obliged to recognise their chosen trade union in your workplace?
DATA PROTECTION - 27.06.2014
Are your employees’ details accurate and up to date?
Sometimes employees will forget to tell you about, or deliberately fail to disclose, an important change to their personal circumstances. How can you ensure the information you hold is accurate and up to date?
SICKNESS ABSENCE - 27.06.2014
Refusing a return-to-work interview
Following a period of sickness absence, an employee has been invited to a return-to-work interview. However, they’ve refused to discuss their health with the person who will be conducting it. What’s the answer to this problem?
PAY - 27.06.2014
Death of an employee: what happens with pay?
It’s an unfortunate scenario but let’s imagine that an employee has passed away - perhaps unexpectedly or after a long illness. What happens to their pay and other entitlements in this situation?
APPEALS - 27.06.2014
Appeals: when are they out of time?
As the Acas Code of Practice states, your employees must be given the right to appeal against disciplinary and grievance decisions. But how long do they have to challenge you about them?
CONSTRUCTIVE DISMISSAL - 27.06.2014
Notice effects on constructive dismissal rights
In order for an employee to claim constructive dismissal, they must resign - either with or without notice. But what if they resign and give you more than their required contractual notice? Can they still claim constructive dismissal?
VEHICLES - 27.06.2014
Deals on second-hand electric cars
You’ve noticed that you can pick up a used electric car for a fraction of the price of a new model. So should you consider purchasing one, and if you do, what should you be wary of?
TAX - 27.06.2014
Tax breaks on green cars
If you drive a company car, it’s becoming ever more costly in terms of the taxable benefit in kind. The government wants us to look at greener options. What’s available?
ENFORCEMENT - 27.06.2014
Sort your site out
The owners of a waste site pushed their luck too far with the Environment Agency (EA). What steps were taken to deal with the company and how could it have avoided getting into such a mess?
GREEN INITIATIVES - 27.06.2014
The new Green Deal
The first round of the government’s flagship Green Deal scheme didn’t take off at all. So will a major relaunch, which now offers grants to those making energy-saving improvements, tempt you to investigate further?
STATUTORY NUISANCE - 27.06.2014
Don’t upset your neighbours
To stay on top of your legal duties you need to be aware of the legislation that applies to your business. To help, we’ve created a detailed legal register. In this section we have covered statutory nuisance and noise legislation.
WASTE - 27.06.2014
Grants for waste prevention partnerships
The government has launched a new fund to help business partnerships bring about innovative waste prevention projects, with grants of up to £50,000 available. What do you need to know to get involved?
CORPORATION TAX - 26.06.2014
Shifting capital losses between companies
Your company made a loss from selling an asset. To make matters worse there’s no prospect of making a gain in the foreseeable future against which the loss can be set. Can your company obtain tax relief for the loss in any other way?
COMPANY CARS - 26.06.2014
Two directors, one car, who pays the tax?
The business you and your wife set up a few years ago provides a company car. But now you have children your spouse receives less income and so pays tax at a lower rate. Can you simply put the car in her name to save tax?
BENEFITS AND EXPENSES - 26.06.2014
2013/14 P11Ds - what’s new?
The deadline for 2013/14 P11Ds is just around the corner. If you haven’t submitted your forms, is there anything new this year that you need to watch out for?
VAT - 26.06.2014
VAT and non-business use of company assets
Your company bought some machinery for a particular project, but no longer has a use for it. If it transfers the equipment to you for personal use, will this trigger a VAT charge?
COMPANY INVESTMENTS - 26.06.2014
New accounting rules and tax on investments
New accounting standards apply from 2015 and one of our subscribers wanted to know if they would change the tax treatment of income produced by offshore insurance bonds. Specifically, can companies still use them to defer tax?
PAYE - 26.06.2014
Employing a student this summer?
It’s the time of year when youngsters line up at your company’s door looking for temporary work over the summer break. If you take one on, what steps are needed for PAYE tax and NI purposes to stay on the right side of HMRC?
PROPERTY - 23.06.2014
Protect company-owned property from fraud
Property fraud - which is where someone steals ownership of a property - is on the rise. To combat it, the Land Registry has extended its free restriction registration service to company-owned properties. Why should you use it?
COMPANY LAW - 23.06.2014
Small companies at risk by not following procedure
As the sole owner and director, the decisions you make about your company only affect you. So do you really need to worry about nit-picking procedures? What are the consequences if you don’t?
TAX - BENEFITS - 23.06.2014
Must all benefits in kind be declared?
During 2013/14 one of your suppliers treated you to a day at the races. Now that you’re in the process of completing your company’s P11D for that year are you required to report the outing to HMRC?
SELLING YOUR COMPANY - 23.06.2014
Avoiding the CGT cash trap
Entrepreneurs’ relief can lower the tax rate on gains made from selling your company to just 10%. But if your company has significant cash investments this generous tax break can be jeopardised. What steps can you take to prevent this?
OCCUPIERS’ LIABILITY - 23.06.2014
Contractor’s staff: are you liable for their injuries?
You’ve hired a contractor to undertake work on the company’s premises. Whilst doing so disaster strikes and one of its employees suffers a personal injury. Could the company or the directors be held liable?
PERSONNEL - 23.06.2014
Flexible working changes: must you tell the staff?
From 30 June 2014 any employee who has at least 26 weeks’ continuous service will have the statutory right to make a flexible working request. Are you obliged to bring this major change to your workforce’s attention?
INCORPORATION - 23.06.2014
Is incorporation relief always the best route?
A sole trader client has taken the decision to incorporate. Incorporation relief applies automatically and serves to roll over any gain into the new company shares, but is this always desirable? What should your advice be?
EMPLOYEE SHARE SCHEMES - 23.06.2014
Valuing employee shareholder shares
A client is interested in offering key members of staff the chance to become employee shareholders as an incentive for them to work hard. But is this likely to be beneficial to the client and how should the shares be valued?
PENALTIES - 23.06.2014
Don’t miss out on a refund of CIS penalties
In October 2011 HMRC brought in a new (and fairer) penalty regime for late CIS returns. The great news was that the new rules could be applied retrospectively if requested by the contractor. But as time is running out what should contractor clients be doing now?
NATIONAL INSURANCE - 23.06.2014
Employment allowance update
Pharmacy clients may have been advised that they couldn’t claim the £2,000 employment allowance (EA). HMRC has now clarified the position - what’s to know?
CAPITAL GAINS TAX - 23.06.2014
Valuing a professional firm’s goodwill
In May 2014 a tribunal ruled in favour of an accountancy practice in a dispute with HMRC about valuing goodwill. How can you benefit?
OCCUPATIONAL HEALTH - 23.06.2014
Occupational health strategy
Information that will help employers manage occupational health risks has been added to the HSE’s website. What’s the legal status of this guidance and is it something that you must follow?
FORK LIFT TRUCKS - 23.06.2014
Sweet firm fined £120,000 for fork lift accident
If you use fork lift trucks, it’s necessary to design the workplace to minimise the risk of collisions. As a case heard in April 2014 shows, you must be especially wary of obscuring sight lines. What happened?
FIRE SAFETY - 23.06.2014
Fire - any place, any time
You might be surprised to learn that fire stations and vehicles have their fair share of fires too. What are the principal causes and what can you learn from mistakes made by the “experts”?
SAFE USE OF MACHINERY - 23.06.2014
Company prosecuted over worker’s lost hand
Heinz has been fined £50,000 in connection with a serious accident involving a maintenance engineer. What does this case tell you about procedures for isolating potentially dangerous machinery?
H&S MANAGEMENT - 23.06.2014
It’s written down, but is that enough?
You’re confident you would do well in a health and safety inspection because your policies, risk assessments, training records, etc. are all in place. Is there much else to worry about?
EMERGENCY LIGHTING - 23.06.2014
Evaluating your emergency lighting
There are many different styles of emergency lighting unit. So what standards apply, how do you decipher the jargon and how can you tell whether your system is good enough?
CONSTRUCTION - 23.06.2014
Construction competency changes
Will the introduction of the Construction (Design and Management) Regulations 2014 signal the end of third party competency schemes, including Chas, Constructionline, etc., or will these continue as they are?
E-MAIL - WEBMAIL - 20.06.2014
Contact management in Gmail and Outlook.com
Many users neglect their webmail service’s address book. This results in outdated addresses, contact information that is no longer up to date, duplicates, etc. In short: it’s time for a major clean-up. Here are some tips that can help you.
PERSONAL WEBSITE - SITE DESIGN - 20.06.2014
Your website on a diet: less is more
The more pages your website has, the greater the chance that your visitors will lose their way and abandon your site because they can’t find what they’re looking for fast enough. How can you get rid of all unnecessary information?
COMPUTER - DISPLAY - 20.06.2014
Ergonomics: spare your eyes!
Many office workers stare at their computer displays for hours on end, day after day. What can you do to prevent the negative effects of this behaviour on your eyes?
LEISURE - BOOKS - 20.06.2014
Downloading and reading e-books
E-books are much easier to come by these days. Where do you find them and what devices are best suited for reading e-books? Plus can you exchange e-books with family or friends?
SOFTWARE - BROWSER - 20.06.2014
Useful add-ons for the revamped Firefox
Every couple of months a new version of Firefox is released, but generally the changes are only cosmetic. However, in the latest version Firefox has been completely revamped. What’s new, and what add-ons make Firefox even better?
SECURITY - ENCRYPTION - 20.06.2014
A (false) feeling of security…
The Internet is crawling with tools and services for encrypting your files. What should you pay attention to when choosing such a tool? Which programs can we recommend and which ones are best avoided?
TRAVEL - MISCELLANEOUS - 20.06.2014
Getting around: “Uber” and the rest
The taxi app Uber has been getting lots of attention in recent weeks. We look at this phenomenon, the alternatives and other methods of city travel.
NEWS - MISCELLANEOUS - 20.06.2014
Looking for up-to-date information?
The Internet is a treasure-trove of information, but this has a downside: you have to monitor all the interesting websites yourself in order to keep up to date. Or do you?
WEB SERVICES - MISCELLANEOUS - 20.06.2014
Do you know these Google services?
Google is much more than just a search engine - think of tools and services such as Gmail, Google Drive, YouTube, Google Chrome, Google Translate or Google Maps... But do you know about the following services?
TELEPHONY - INTERNET TELEPHONY - 20.06.2014
Cheap phone calls on your smartphone or tablet
With the holidays drawing near, you will probably make more phone calls from or to foreign countries. On your smartphone or tablet, this can be very cheap, or even free, if you install a good VoIP app. Which ones can we recommend?
SECURITY - PRIVACY - 20.06.2014
Can your webcam be hacked?
Alarming reports hit the headlines recently about webcams being hacked by individuals or government entities. What is this all about and how do you protect your privacy?
FLEXIBLE WORKING - 18.06.2014
Flexible working for football?
It’s been suggested that employers should consider granting employees who are football fans flexible working the day after major matches. Why is this a bad idea?
theft - 18.06.2014
Employee pockets £5,000 from fraudulent refunds
In May 2014 there were media reports of an employee who had pocketed £5,000 of her employer’s money by issuing refunds to a fake customer. Once discovered she admitted the theft, but how might this have been avoided?
STAFF HANDBOOKS - 18.06.2014
Not another staff collection!
An employee has a special event coming up and a colleague is arranging a collection. However, another has pointed out that it’s the third time in as many weeks they’ve been asked to make a contribution. What’s the solution?
SETTLEMENT AGREEMENTS - 18.06.2014
Settlement agreement: your proposal checklist
You’re considering offering an employee a settlement agreement. How can you ensure that your negotiations and the documentation comply with the legal requirements and the relevant Acas Code of Practice?
holidays - 18.06.2014
Holiday pay: must it include commission?
As the law currently stands, a week’s holiday pay is a week’s pay as defined by the employee’s contract of employment. But what if they earn commission on top of their basic salary? Must holiday pay provide for that element too?
DISCIPLINARY PROCEEDINGS - 18.06.2014
Disciplinary proceedings: “no comment” answers
You suspect an employee of wrongdoing and have instigated your disciplinary procedure. However, rather than give you their version of events, they reply with “no comment” to every question. Where does this leave you?
DISABILITY DISCRIMINATION - 18.06.2014
Disabilities, sickness absence and trigger points
Many employers have trigger points in their sickness absence policies which start formal management procedures when an employee’s attendance levels become unacceptable. Must these be adjusted for disabled staff?
HMRC - 12.06.2014
New annual tax statements
In October 2014 HMRC will be sending out full annual tax summaries for the first time. Who will receive them and what action should you take if you get one?
ACCOUNTS - 12.06.2014
HMRC’s (not so) simplified accounting
In April 2013 simplified tax accounting was introduced for some businesses. A year on and problems are starting to appear. One bone of contention is the derisory £500 cap on loan interest relief. But is there a safe way around it?
LOANS - 12.06.2014
Tax deductions for being a guarantor
When the bank lent money to start your company you personally guaranteed to repay the loan if your company couldn’t. The business wasn’t a success and now you’re having to pick up the tab. Can you claim a tax deduction for this?
VAT - 12.06.2014
VAT record keeping
During a visit from HMRC you were told that your VAT records weren’t up to scratch and that unless you improve them you could be fined. Is this correct and what exactly do the rules require?
INHERITANCE TAX - 12.06.2014
Who should you leave the family business to?
Naturally, when you draw up your will you’ll want to do it in the most inheritance tax-efficient way, and allocating your assets to the right person is vital. With this in mind what’s the best strategy for passing on the family business?
