2020 -
February
MAKING TAX DIGITAL - 28.02.2020
MTD soft landing period extended?
HMRC will allow some businesses to continue using cut and paste software links beyond April 2020. Could your business utilise the extension to aid with MTD?
BAD DEBT RELIEF - 28.02.2020
Avoiding costly mistakes with bad debt relief
Unless you use the cash accounting scheme, relief for VAT on bad debts needs to be reclaimed. However, there is a particular procedure to follow in order for a valid claim to be made. What do you need to do?
CASH ACCOUNTING SCHEME - 28.02.2020
What happens if you go over the exit threshold?
One of our subscribers uses the cash accounting scheme due to its cash flow advantages. They exceeded the scheme’s exit threshold at the end of the last period due to the sale of an asset that was subject to VAT. Can they remain in the scheme?
PROPERTY - 28.02.2020
Converted properties: selling rather than letting
Your business has converted an office block into six flats with a view to renting them out. But due to a change of circumstances, you have decided to sell two of them instead. Does this alter the VAT treatment of your expenses?
DEBT RECOVERY - 28.02.2020
VAT when a defaulting customer pays up
After a lengthy recovery process, you have received £25,000 from a customer. This consists of the original invoice amount, £3,000 in legal fees and £400 of late payment interest. How much VAT do you need to account for?
MOBILE PHONES - 28.02.2020
Can you claim input tax in full on employee phone bills?
Your annual accounts show that you spent £30,000 plus VAT on mobile phone costs for your employees, of which £10,000 related to line rental expenses. You intend to reclaim input tax in full on this expenditure. Is this allowed?
BREXIT - 28.02.2020
Amend your contract terms post-Brexit?
Now that the UK has left the EU, attention is focused on the negotiations around our future relationship. But are there any changes you should be making now to the terms in commercial contracts?
CORPORATION TAX - 28.02.2020
How to avoid a CT double whammy
As your company grows, you may find that it falls into the “large” company category. If this happens, you could be in for a nasty surprise in respect of the tax payment date. What is it and how can you avoid it?
TAX - 28.02.2020
Sidestep a salary-dividend trap
You must be very careful not to draw more dividends than is permitted by company law - not least because it will land you with a hefty tax and NI bill. So what precautions should you take and what might these save you?
STAFF COSTS - 28.02.2020
Helping staff with travel costs
Commuters are always being hit with price hikes. With travel costs one of the main reasons for someone leaving a job, are there any benefits you could offer, and will these save you money in the long term?
PRICING - 28.02.2020
Transfer pricing - what is arm’s length?
There are transfer pricing rules which require UK companies to use “arm’s length” pricing when they are transacting with connected parties. Do these apply to your company and, if so, how do you determine an arm’s length price?
FORECASTING - 28.02.2020
Navigating the economic uncertainty
With continuing trade issues between China and the US, Brexit and the coronavirus outbreak, the economic outlook for 2020 is still very uncertain. What can your company do to manage this uncertainty?
SPREADSHEETS - 28.02.2020
Creating a loan amortisation schedule
Your company is comparing several business loans and you’ve been asked to calculate the impact on profit and cash flow for each one. How can you use Excel to prepare a schedule of payments and interest charges?
PAYROLL - 28.02.2020
2020/21 payroll changes
Although we still haven’t had a Budget, the government has at last announced the NI limits for 2020/21. How will these affect your payroll plans?
INVESTMENT VALUATION - 28.02.2020
Preparing a discounted cash flow analysis
The company has an investment in another business on its balance sheet. The auditors have asked you to provide evidence that the carrying value is at least what the investment is worth. How should you go about this?
TAX - 28.02.2020
Who pays for children’s costs - you or the company?
Your son is keen to go on a residential language course during the summer holiday break from university. It will cost £1,500, but can you pay it through the business and if so, what would the savings be?
MEETINGS - 28.02.2020
Save on meeting costs
Meetings are a necessary evil but can waste a lot of time and money. We’ve come across a tool that allows you to calculate how much unproductive meetings are costing you. Is it any good and how can you make some savings?
DISCRIMINATION - 28.02.2020
Can you say no to almond milk?
Ethical veganism has been branded a “philosophical belief” in a landmark tribunal ruling. Does this mean you now have to buy non-dairy milk for vegan staff to put in their tea and coffee?
IT - 28.02.2020
Surfing the web incognito at work?
Depending on how your IT system is set up, others in your firm might be able to see which web pages you’ve visited. This could be awkward if, as the boss, you’ve been looking at sensitive employment issues. How can you surf incognito?
UTILITIES - 28.02.2020
How to buy clean energy?
2019 was the “cleanest” year ever for energy production according to new figures. How do you buy clean energy, will it cost you more and what are the tricks that suppliers will use to fool you into paying a premium?
MINIMUM WAGE - 28.02.2020
Significant reforms to NMW rules announced
The government has confirmed that it’s to resume publicly naming employers that fail to pay workers the national minimum wage (NMW), but there will be some changes. In addition, the NMW rules are to be amended. What’s new?
UNFAIR DISMISSAL - 28.02.2020
Must you provide written reasons for dismissal?
A dismissed employee who complies with certain qualifying conditions is entitled to be provided with a written statement of reasons for their dismissal. When do you have to provide this statement and how much detail should it go into?
HOLIDAYS - 28.02.2020
Calculating statutory holiday dues for new staff
Where a new worker starts employment part-way through your holiday year, they have a pro rata statutory holiday entitlement for the remainder of that holiday year. How do you calculate that and what special rules apply here?
EMPLOYMENT STATUS - 28.02.2020
Changes to the off-payroll reforms
The government has made an announcement to give businesses more time to prepare for forthcoming reforms to the off-payroll working rules. What’s it said?
WORK AT HEIGHT - 27.02.2020
Baggage handler fell while loading plane
A company which provides ground support services to airlines has been fined after one of its employees fell from height and suffered serious head injuries. What should have been done to prevent the fall?
MANUAL HANDLING - 27.02.2020
Simple manual handling guidance updated
The HSE has published a revised version of its short guide to managing manual handling risks. What has changed this time around and is this guidance something that you should be following?
MACHINERY - 27.02.2020
Agency worker injured by machinery
A manufacturing company has been fined after a blade caused serious injuries to an agency worker’s hand. What caused the accident and how should the firm have managed its agency staff differently?
GAS - 27.02.2020
Gas abuse is no laughing matter
The European Industrial Gases Association has spoken out against the film and television industry for its irresponsible portrayal of gas abuse as a fun activity. What’s the problem?
WORKPLACE - 27.02.2020
Window restrictor research
A study has examined the minimum force that window restrictors should withstand when used in health and social care premises. What are the implications for those operating healthcare facilities?
SEASONAL ISSUES - 27.02.2020
Dealing with Covid-19 at work
A global emergency has been declared by the World Health Organization (WHO) over the coronavirus outbreak. Should you be taking emergency action too?
VIBRATION - 27.02.2020
What is whole body vibration?
Exposure to vibration is a known health risk. Court cases usually focus on hand-arm vibration, but what about whole body vibration (WBV)? What’s the concern and is there anything you should be doing to control it?
PACKAGING - 26.02.2020
Charity donations in lieu of packaging fines
Two cases heard in January 2020 concerned companies which agreed to enforcement undertakings for breaching packaging regulations. This resulted in several charities receiving money. What’s the full story?
EMISSIONS - 26.02.2020
What is climate change resilience?
A proposal to build a new “energy from waste” plant has been rejected by planners because it failed to include details of how climate change might impact the project. Is this a sign of things to come?
PESTICIDE LOGBOOK - 26.02.2020
Recording the use of pesticides
Many businesses would like to eliminate their use of pesticides. If this has not yet been fully achieved you should retain evidence of those which are used. Our logbook will help you keep proper records.
SUSTAINABILITY - 26.02.2020
Need help measuring circularity?
How can you assess whether your business, products and services actually form part of a circular process, i.e. are kept in use for as long as possible? A new tool has been launched to help. What is it and how does it work?
FLY-TIPPING - 26.02.2020
Fly-tipping fines no deterrent
The Local Government Association has warned that fines of under £50 for fly-tipping offences are (unsurprisingly) failing to deter criminals and this is costing councils a fortune in clean-up costs. What’s the story?
NEW LEGISLATION - 26.02.2020
Environment Bill - what’s new?
The Environment Bill has returned to Parliament. It outlines a number of new powers to deal with environmental pollution, with a focus on waste and air quality. What can you expect it to introduce?
WASTE - 26.02.2020
Waste site was out of control
The manager of a waste transfer station has received a suspended prison sentence after he was found to be operating illegally. How did this happen, as there was an environmental permit in place for the site?
MISCONDUCT - 25.02.2020
Lunch breaks prime time for work nooky
Apparently, at least one in five employees have sex with a colleague during lunch breaks, with Mondays being the most popular day. If your employees are caught in the act at work, does it justify disciplinary action?
TIME OFF - 25.02.2020
Can I have three months off work please?
An employee has asked if they can take three months’ leave so that they can visit family and friends abroad. If you agree to their request, would you be obliged to keep their job open until they return?
UNFAIR DISMISSAL - 25.02.2020
Unfairly dismissed for saying “I’ll shoot you!”
In January 2020 the tribunal issued its written ruling in a case in which the employee was sacked after he said that he would shoot a colleague. The tribunal found his dismissal to be unfair. Why did it reach this decision?
WRITTEN STATEMENTS - 25.02.2020
Major changes to written statements
On 6 April 2020 important changes will be made to the right to receive a written statement of employment particulars. What’s new?
DRIVING - 25.02.2020
Employee refusing to drive on smart motorways
An employee is refusing to travel on smart motorways whilst undertaking work-related journeys as they’re worried about their safety. However, this will significantly increase their travelling time. Do you have to accept this refusal?
HMRC - 20.02.2020
Is the “HMRC” email real or spam?
A number of scams involve fraudulent emails purporting to be from HMRC, usually in an effort to trick your clients into providing bank details. Why does a recent tribunal case show that it’s not safe to simply ignore everything?
YEAR-END PLANNING - 20.02.2020
Tax planning for owner managers before 5 April 2020
As there’s little over a month of 2019/20 left it’s essential to review owner-manager clients’ tax planning strategies now to allow for maximum efficiency for the year. What should you be advising?
CORPORATION TAX - 20.02.2020
How soon can a deduction be made?
One of our subscriber’s clients has incurred costs in training their employees for a new business venture. Our subscriber is positive that these are tax deductible, but HMRC is disputing it following the company tax return submission. What is the correct answer?
PAYE - 20.02.2020
Are your clients treating staff tips correctly?
Several of your clients operate catering businesses, e.g. cafés and restaurants. Their employees will often receive tips from customers. What do your clients need to do in respect of income tax on these tips?
EMPLOYMENT STATUS - 20.02.2020
Using the updated CEST tool to determine worker status
Medium and large private sector clients who engage workers providing their services through an intermediary will, from April 2020, need to determine the worker’s status. What should you be advising your clients to do to minimise risk?
VAT - 20.02.2020
Can you reclaim VAT on staff expenses and benefits?
Your clients might provide rewards and perks to their staff (and sometimes their family members too), often as an incentive to encourage hard work and improved performance. Can they reclaim the input tax on these costs, and how can they maximise their claim?
PRIVATE RESIDENCE RELIEF - 20.02.2020
Maximising relief on clients’ property sales
A new client has come to you for advice about a property he has sold. He lived in it on and off during the ownership period, although there was a delay in initially completing the exchange. He had other properties that he has occupied as his home as well. You believe some private residence relief (PRR) will be due. How should you approach quantifying this?
INHERITANCE TAX - 20.02.2020
Tax planning with deeds of variation
A new client has recently inherited trading company shares from their spouse. They are asking about putting the shares into trust, as they have heard this could save inheritance tax. Are they correct, and is there alternative planning you could suggest?
CALCULATING PAY - 20.02.2020
How to calculate backdated pay
Things don’t always go according to plan as far as payroll is concerned, and there might be numerous reasons why you need to calculate backdated pay. What are the key things to get right?
NATIONAL INSURANCE - 20.02.2020
Why check your NI record?
Lots of employees think that HMRC reconciles their NI record annually like it does their tax calculations. But that’s not the case and taxpayers have to take responsibility for ensuring accuracy. What should you advise staff?
NEW TAX YEAR - 20.02.2020
What’s new for payroll in 2020/21?
The new tax year might feel like it’s still too far away to be worrying about right now. But this time around both the timetable and the degree of change is challenging for anyone involved in payroll. What are the key things to prepare for?
LOANS - 14.02.2020
Borrowing to lend to your company - what’s the tax position?
If you borrow money to inject into your company, you can claim tax relief for the interest you pay. But not all borrowing or interest qualifies and there are pitfalls that can cause you to lose the tax relief. How can you avoid these problems?
VAT - 14.02.2020
HMRC’s VAT “quick fixes”
One of the last acts of the EU before Brexit was to make ”quick fixes” to the VAT rules for intra-EU trade. These must be followed by UK businesses. What’s involved?
EXPENSES AND BENEFITS - 14.02.2020
Join the club - it might be tax deductible
Our subscriber’s firm is in the north of England but he frequently visits London for business meetings. He’s joined a London club for a hefty fee as it offers convenient meetings rooms and a place to stay. Is the club membership tax allowable?
VAT - 14.02.2020
What will the VAT cost of Brexit be?
The Brexit transitional period is understandably causing confusion among businesses, including questions about extra VAT costs if you import goods from the EU after it ends. What can you really expect?
EMPLOYMENT STATUS - 14.02.2020
Businesses distracted by IR35
According to tax experts, the fuss over the changes to off-payroll working scheduled for April 2020 is causing businesses to overlook their normal obligations to check employment status. Are you taking the necessary steps?
ACCOUNTS - 14.02.2020
Can changing accounting dates legitimately save tax
Your partner has turned a hobby into a small business. It now seems that using the tax year as the business’s accounting period might not have been the most tax-efficient option. Is it too late to go back and change it?
TAX PAYMENTS - 14.02.2020
HMRC changes its time to pay arrangements
If you can’t meet your tax bills you can sometimes negotiate with HMRC for more time to pay. This was often a tricky process but HMRC is now being more open and helpful about it. What’s the full story?
TAX - SELF-ASSESSMENT - 13.02.2020
Record numbers for self-assessment
A record number of people filed their self-assessment returns by the 31 January deadline. But a record number missed it too! If you’re one of the latter, HMRC has advice for you. What’s the full story?
BREXIT - 13.02.2020
Import and exports post-Brexit
From 1 January 2021 UK businesses that move goods into and out of the EU must make customs declarations. You can start preparing for this now, as it doesn’t depend on the outcome of the trade negotiations. What do you need to know?
HMRC - 13.02.2020
How to respond to an HMRC request for a visit
A letter from HMRC to say it will be looking into your affairs is never good news. How do you deal with the process without causing stress, so you can get back to running your business quickly with the minimum fuss?
TAX - 13.02.2020
Staff uniforms - how to avoid tax costs
During a compliance check an HMRC inspector warned our subscriber that because of a change to the rules he might face a tax and NI bill for providing their staff with workplace clothing. What’s the inspector referring to?
COMPETITION - 13.02.2020
Fender fined for anti-competitive behaviour
Fender restricted the resale price of its guitars, so online prices for their products remained broadly homogeneous for several years. What exactly did the famous guitar maker do wrong, and what can you learn from this case?
IT - 13.02.2020
Dropbox Paper - what can it do for your business?
Online collaboration with colleagues and clients is increasingly popular. Dropbox has its own version which offers a shared workplace for teams and a lot more. Is it something worth signing up for?
BREXIT - 12.02.2020
Brexit - data protection changes?
Data protection has been a hot topic for UK businesses for some time, especially since the introdution of the GDPR. But what are the potential implications of Brexit as far as data protection is concerned?
PERSONNEL MANAGEMENT - 12.02.2020
Dealing with the death of an employee
With more than 500,000 people dying every year in England alone, there’s a chance you could lose one of your employees. If you’re faced with such an unfortunate event, how should you respond?
BREXIT - 12.02.2020
Brexit - employment and immigration changes?
Now that the UK has finally left the EU, employers will be wondering what changes are in store for their businesses in 2020 and beyond. What are the immediate implications of Brexit for employment law and immigration?
BREXIT - 11.02.2020
Settled status concerns
Now that we’ve finally left the European Union, what should you be encouraging any workers who are EU nationals to do to ensure they can continue working here?
CONTINGENCY PLANNING - 11.02.2020
Is payroll prepared for the worst?
Contingency planning is often at the bottom of most people’s to do lists. But if disaster strikes, will you still be able to pay your staff? What can payroll learn from some of the high profile IT failures of the last few years?
WORKPLACE - 10.02.2020
Changing the air we breathe
Given that air quality on the street is more heavily regulated than that inside buildings, is it time to address the disparity? What’s in the news?
OCCUPATIONAL HEALTH - 10.02.2020
Employee mental health - is it improving?
In 2017 the Prime Minister commissioned a report to identify the positive steps which employers could take to help their employees improve their mental health. What were the findings and has it resulted in any changes?
SLIPS TRIPS AND FALLS - 10.02.2020
Dancing barmaids fell from a wet bar
A nightclub has been prosecuted after two of its staff slipped and fell from the top of a bar in separate incidents. What were they doing there in the first place and what charges were brought against the employer?
