2020 -
May
REMUNERATION PLANNING - 28.05.2020
Is reducing your salary a tax trap?
Recent press reports warn directors and higher earners that if they reduce their salary to make donations to coronavirus charities HMRC will expect them to pay tax as if they were still receiving their full pay. Surely this can’t be correct?
CORONAVIRUS - GRANT INCOME - 28.05.2020
Tax treatment of local authority grants
Under the coronavirus special measures, local authorities can help businesses with Small Business Grant Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) payments. If your business receives such a grant must it pay tax on it?
CORONAVIRUS - HOMEWORKING - 28.05.2020
Exemption for homeworking expenses
The government has announced a new tax exemption for employees who work from home and need to buy equipment to do their job. What’s the full story?
LOSSES - NATIONAL INSURANCE - 28.05.2020
Trading losses - business owners miss out on NI relief
Tax relief for business losses help soften the financial cost of difficult trading conditions. Relief can apply to tax in different ways but not all take account of NI. As a result valuable savings are often missed. How can you prevent this?
PROPERTY - 28.05.2020
How not to lose the tax breaks on holiday homes
The prospects of you letting your holiday home are looking glum this season. As a result, it might cease to qualify as a furnished holiday let and so lose the corresponding tax advantages. What steps can you take prevent this?
CAPITAL GAINS - 28.05.2020
Downsizing your business premises - defer your tax bill
Our subscriber’s business no longer needs such a big premises so he wants to downsize. Despite current market conditions, he expects to get more for the property than he paid for it. Can he avoid a tax bill on the capital gain?
VAT - 28.05.2020
VAT charges for enticing a tenant
You own a commercial property but don’t have a tenant. To attract one you’re offering a financial inducement - a cash lump sum or a rent-free period. What’s the VAT position for you and the prospective tenant?
CORONAVIRUS - WORKPLACE - 28.05.2020
Coronavirus: workplace screening
The CEO of Amazon has announced that the company intends to regularly test its staff for coronavirus. Could you implement a similar policy and insist that your staff are tested too?
CORONAVIRUS - COMMUNICATIONS - 28.05.2020
Send a video message to your staff?
During the lockdown period many bosses seem to have started making video messages for their staff. Is this something you should do and if not, how should you be communicating at this time?
CORONAVIRUS - TAX - 28.05.2020
Use a bounce back loan to pay yourself?
Our subscriber’s business recently received a bounce back loan (BBL). The money is sitting in the firm’s account. He wants to know if he can use the money to pay himself so he can pay personal bills. If yes, what are the tax consequences?
CORONAVIRUS - PERSONNEL - 28.05.2020
Disciplinary proceedings held remotely
You need to conduct a disciplinary hearing but the employee concerned is working from home. Can the hearing be held remotely, e.g. via video conferencing facilities, and can the employee select a workplace companion who is furloughed?
CORONAVIRUS - REFUNDS - 28.05.2020
When are consumers due a refund?
The Competition and Markets Authority (CMA) has issued guidance for businesses on dealing with consumers who cancel their contracts because of the lockdown. What has prompted this advice, and what is the CMA expecting businesses to do?
CORONAVIRUS - MARKETING - 28.05.2020
Communicating a positive message
Your business is helping towards the community effort during the coronavirus pandemic. Should you make the most of it and undertake some positive PR to let others know about it?
CORONAVIRUS - HEALTH AND SAFETY - 28.05.2020
Working safely during coronavirus
The government has now published a roadmap for coming out of lockdown, together with new guidelines for employers to help them get their workplaces operating safely. What are the salient points you need to be aware of?
CORONAVIRUS - DISCIPLINARY PROCEEDINGS - 28.05.2020
Conducting disciplinary and grievance hearings in lockdown
If your staff are still working from home or on furlough during the coronavirus pandemic, this doesn’t mean disciplinary and grievance procedures should be put on hold. What do you need to think about when dealing with such procedures remotely?
CORONAVIRUS - FURLOUGH - 22.05.2020
Employee’s written agreement to furlough not needed
There had been some concern that employers must obtain an employee’s written agreement that they will cease all work to be able to make a valid CJRS claim. A further Treasury Direction now clears this up.
CORONAVIRUS - FURLOUGH - 22.05.2020
Furlough scheme extension
Furlough scheme to be phased out by the end of October. Employers will be required to start contributing towards furlough pay.
INHERITANCE TAX - 21.05.2020
Residence nil rate band: maximising the relief
The residence nil rate band (RNRB) means married clients could benefit from a combined tax-free inheritance tax (IHT) allowance of £1 million. There are conditions and the allowance is withdrawn for larger estates. How can clients maximise their entitlement?
CORONAVIRUS - CAPITAL GAINS TAX - 21.05.2020
Can clients cash in on worthless shares?
With the pandemic taking a heavy toll on businesses across the UK, your investor clients will likely have taken a hit on their share portfolios. But could this mean that they can secure a tax refund to cushion the blow?
BUSINESS ASSET DISPOSAL RELIEF - 21.05.2020
Dilution protection elections: valuing the shares
Your client is a minority shareholder in a company whose shareholding has recently been diluted to below 5%. They are considering making an election to lock in the 10% tax rate. How will the shares be valued, and what trap can you help them avoid?
DEALING WITH HMRC - 21.05.2020
Can a client’s behaviour hinder a tribunal appeal?
A taxpayer recently found that acting unreasonably towards HMRC or the First-tier Tribunal can prove costly. What cautionary lesson can you pass on to clients who want to go to tribunal without representation?
CORONAVIRUS - CORPORATION TAX - 21.05.2020
Make the most of losses when a company ceases trading
Your clients are trying to make the best of a bad situation with the ongoing coronavirus crisis, but now the decision has been taken to close down one of their already loss-making companies. How can you help maximise their tax relief?
CAPITAL ALLOWANCES - 21.05.2020
Debunking clients’ preconceptions can lead to CAs savings
You believe a new client has substantial unclaimed capital allowances in respect of commercial premises. The client is convinced that these can’t be claimed due to previous poor advice and preconceptions. How can you help?
CORONAVIRUS - VAT - 21.05.2020
Are your clients overcharging VAT?
The fallout from the coronavirus crisis means that now is a good time to check if your clients are overcharging VAT to customers on some sources of income. How can you identify potential savings and what can you do about errors made on past returns?
IN THIS ISSUE - RESIDENCE - 21.05.2020
Crucial tax advice for a client coming to live in the UK
You have taken on a new non-domiciled client that will coming to live and work in the UK later in 2020. As well as preparing their tax returns, they want you to give them some advice ahead of the move. What are the first key issues you should consider, and what should you advise them to do ahead of the move date?
CORONAVIRUS - SSP - 19.05.2020
SSP rebate scheme launches 26 May
HMRC has announced that its new online service for employers to claim the cost of employees’ statutory sick pay (SSP) will open for business on 26 May.
CORONAVIRUS - RECRUITMENT - 18.05.2020
How to conduct a virtual interview
Due to the lockdown you need to conduct a recruitment interview online. As this is your first time holding a virtual interview, how can you best prepare for it and what should you ask the candidate to do?
CORONAVIRUS - CONTRACTS - 18.05.2020
Changing contractual terms
Due to the crisis you need to make cost savings so you’ve tried to reduce an employee’s hours and pay by mutual consent. They’ve refused to negotiate but you still wish to proceed. What are your options?
MATERNITY RIGHTS - 18.05.2020
New hire awarded £23,000 for email sacking
An employee who was sacked by email after she took sickness absence in her first week’s employment has been awarded £23,000 by the tribunal. New hires can’t claim unfair dismissal, so why did she receive such a big award?
SICKNESS ABSENCE - 18.05.2020
Converting sickness absence to holiday
An employee who’s been signed off sick for two weeks has several weeks’ paid annual leave outstanding. As you only pay statutory sick pay during sick leave, they’ve asked to convert their sickness absence to holiday. Is this OK?
CORONAVIRUS - HOMEWORKING - 18.05.2020
Temporary homeworking and suitable workstations
Many of your employees are temporarily working from home due to the coronavirus situation. You’re wondering if you need to carry out a home workstation risk assessment for these homeworkers. Is this necessary?
DISCRIMINATION - 18.05.2020
£20,000 for employee told to pick up dog poo
An employee who was instructed to pick up dog poo from her employer’s car park and “take the rubbish outside” has been awarded £20,000 by the tribunal. Why did the employee receive this amount?
CORONAVIRUS - FURLOUGH - 18.05.2020
Can furloughed employees be made redundant?
You might have furloughed members of staff or be planning on doing so. Where an employee has been furloughed can you make them redundant during or after their furlough period?
CORONAVIRUS - GUIDANCE - 18.05.2020
The next steps to safety
New government guidance details the road to recovery that must be followed to prevent the spread of coronavirus. What’s to know?
CORONAVIRUS - PPE - 18.05.2020
Can’t get the right PPE?
In an open letter to the food industry, the HSE has revealed a degree of flexibility in its attitude towards those who are unable to obtain their usual personal protective equipment (PPE). What has it said?
CORONAVIRUS - TRAINING - 18.05.2020
Is online training effective in the circumstances?
During the current climate many training providers can’t cater for groups and have shut down their facilities. Is online training a reasonable alternative and if so, how should you go about selecting a course?
WORK EQUIPMENT - 18.05.2020
Worker trapped under all-terrain vehicle
A council has been fined after two employees were injured when their all-terrain vehicle (ATV) overturned on a golf course. What went wrong and could the accident have been avoided?
MANUAL HANDLING - 18.05.2020
A guide to handling gas cylinders
The European Industrial Gases Association (EIGA) has published guidance to assist in the safe manoeuvring of gas cylinders. What’s covered and is it a document you should be using in your training etc.?
HOT WORK - 18.05.2020
Thermal imaging cameras reduce fire risk
An insurance company wants thermal imaging cameras (TICs) to be used as standard practice when carrying out a fire watch after hot works. Why might this be a sensible plan?
ELECTRICAL SAFETY - 18.05.2020
Electrical checks for rental homes
On 1 June 2020 new regulations will come into force requiring safety certification for electrical wiring systems in rented homes. What measures will landlords need to take from that date?
CORONAVIRUS - SALARY SACRIFICE - 18.05.2020
Sacrifice right and the job retention scheme
One of the big problems that’s emerged during the reclaim calculations under the Coronavirus Job Retention Scheme is the interaction with salary sacrifice. What are the basic rules?
CORONAVIRUS - STATUTORY SICK PAY - 18.05.2020
Getting to grips with the new sick pay
During the coronavirus pandemic it’s likely that you’re dealing with many more statutory sick pay (SSP) cases. It’s confusing because there are two sets of rules to be familiar with during the crisis. What are the basics?
CORONAVIRUS - REDUNDANCY - 18.05.2020
The right way to let staff go
Many employers have been forced to make staff redundant due to the impact of coronavirus on business. But the virus doesn’t give you carte blanche to ignore the rules. What do you need to get right?
CORONAVIRUS - HOMEWORKING - 18.05.2020
New tax exemption for homeworkers
If staff are working from home you can temporarily reimburse the cost of equipment they need to buy on a tax and NI-free basis.
CORONAVIRUS - PROFIT EXTRACTION - 13.05.2020
Income tax planning during lockdown
While there’s a hint of light at the end of the lockdown tunnel, business will take a while to recover. In the meantime you’re taking minimal income from your company, but should you consider increasing this to maximise tax efficiency?
LOANS - 13.05.2020
Directors’ loans - the trouble with joint accounts
You have been in business for several years without any trouble from HMRC. However, your accountant says that the way your director’s loan account is managed might increase your tax bill. Why, and can it be avoided?
CORONAVIRUS - PROPERTY LOSSES - 13.05.2020
Tax relief for property rental losses
The financial side effects of coronavirus on your tenants may result in the costs of your rental business outweighing the rents you receive. What are your options for claiming tax relief for the losses?
VAT - 13.05.2020
Partial exemption - improving your VAT recovery
As a partially exempt business the amount of VAT you can recover on purchases is restricted unless overridden by the de minimis rules. These can be applied in different ways, but which produces the best outcome?
CORONAVIRUS - BUSINESS SUPPORT - 13.05.2020
More news on grants for self-employed
There’s new guidance and other help for self-employed traders who want to claim the Self-employed Income Support Scheme (SEISS) grant. What’s the latest?
CAPITAL GAINS TAX - 13.05.2020
Selling your EIS investment too soon
Three years ago you bought shares in an enterprise investment scheme (EIS) company. You’ve received an offer for them which you’re thinking of accepting. You’ve been told it could be costly in terms of tax. What could you expect to pay?
COMPANY TAX - LOSSES - 13.05.2020
Loss relief when a company’s business ends
You were winding down your business with a view to closing the company in the next year or so but the lockdown has brought your plans forward. If your company makes a loss in its final period of trade how can it obtain tax relief for it?
CORONAVIRUS - LOANS - 12.05.2020
New loan scheme for smaller businesses
The Chancellor has announced a new loan scheme for small businesses suffering from the financial fallout of coronavirus. What’s the full story?
CORONAVIRUS - COMPANY MEETINGS - 12.05.2020
Holding a meeting without meeting
To keep your company going through the coronavirus lockdown, you’ll need to hold board meetings and maybe even the occasional shareholder meeting. How can you hold socially distanced meetings that are valid under company law?
CORONAVIRUS - CJRS PAYMENTS - 12.05.2020
CJRS smallprint - tackling the tax and NI consequences
The system for claiming payments under the Coronavirus Job Retention Scheme (CJRS) has been up and running since 20 April. How should your business record these payments to ensure the correct tax treatment?
BUSINESS MANAGEMENT - 12.05.2020
Mentor benefits
You’re very good at the core of your business but find the day-to-day stuff - like managing people, controlling cash flow, Brexit, insurance, etc. - more challenging. Could a mentor help and what qualities should you look for in one?
CORONAVIRUS - CONTRACTS - 12.05.2020
Can coronavirus frustrate contracts?
The coronavirus outbreak has meant that many commercial contracts can’t be performed. Could you argue that the pandemic situation is a “frustration” of contract and escape your contractual obligations without any liability?
CORONAVIRUS - HOMEWORKING - 11.05.2020
Should staff be back at work?
The government has just published its COVID-19 recovery strategy. It clarifies whether staff should continue to work from home or return to their normal place of work. What does it say?
CORONAVIRUS - RETURN TO WORK - 11.05.2020
Acas issues guidance on return to work
Acas has updated its “Coronavirus (covid-19): advice for employers and employees” including a new section on planning a return to the workplace.
CORONAVIRUS - ENFORCEMENT - 07.05.2020
Tearing up the rule book
The coronavirus pandemic has made it difficult to meet various health and safety standards. What stance is being taken by the enforcing authorities?
ENFORCEMENT - 07.05.2020
Trailing cable led officers to major infringements
When an environmental health officer visited a Lincolnshire hotel on a routine food hygiene inspection, a tell-tale trailing cable led to the discovery of such serious issues that the owners ended up with a £250,000 fine. What went wrong?
CORONAVIRUS - CONSTRUCTION - 07.05.2020
Protecting site workers from infection
Many construction sites have continued to operate during the lockdown. If you’re in this sector, what operational procedures should you be applying and how strict must you be in enforcing them?
DRIVING - 07.05.2020
Rare prosecution for driver fatigue
A contractor to the rail industry has been heavily criticised for its dangerous approach to the management of driving hours. What happened and how should the firm have managed the risk of driver tiredness?
CORONAVIRUS - MAINTENANCE - 07.05.2020
Instruct staff on home maintenance safety
If your staff carry out maintenance work in domestic properties they should have a firm grasp of the safety precautions to take, including those to prevent the spread of coronavirus. Why not use our briefing document?
CORONAVIRUS - FIRE SAFETY - 07.05.2020
Protecting vacant premises from arson
A free guide to managing the risk of unauthorised occupation has been made available by the UK’s national fire safety organisation, the Fire Protection Association (FPA). Is it worth a look?
TECHNOLOGY - 07.05.2020
Safe use of small 3D printers
As part of the public response to help the NHS during the pandemic, small 3D printers have been utilised by individuals to make protective visors. What are the safety considerations when using this equipment?
COMPANY LOANS - 07.05.2020
How to restructure debt tax efficiently
The MD’s father, also a director, lent money to the company to assist her in setting it up. To strengthen the balance sheet, she now wants to write off the loan. Are there any tax implications in doing so and is there a better alternative?
CORONAVIRUS - RAISING FINANCE - 07.05.2020
How to make a successful coronavirus loan application
You’ve heard that businesses have struggled to get one of the new Coronavirus Business Interruption Loans. What can you do to maximise your chances of getting your hands on the cash?
CREDIT CONTROL - 07.05.2020
Setting cash collection targets
Although larger debts are being collected, you’ve noticed that the level of older debts is building up. How can you motivate your sales ledger staff to keep debtor days down to an acceptable level?
COMPANY CARS - 07.05.2020
Share the company car?
A friend has told you that you can save tax and NI if your company car is provided to your spouse instead of you as they pay tax at a lower rate. Are they right and if so what are the potential savings?
POSTAGE - 07.05.2020
How to dodge the mail price hike
Stamp prices have gone up sharply again which has made you wonder how much your business is spending on postage these days. Are there any options to make savings?
OFFICE COSTS - 07.05.2020
Water cooler savings
Many offices and commercial sites still have water coolers. But with the pressure on plastic, staff are making noises for you to get rid of yours. What options are there, and which is the cheapest?
INSURANCE - 07.05.2020
Are brokers getting the best deal?
Small businesses like yours need decent insurance to provide protection if things go wrong, for example to cars, property and equipment. Is a broker the best bet to save on premiums?
coronavirus - SHARE SCHEMES - 07.05.2020
The advantage of granting share options now
It’s important for your company to incentivise the right people as it looks to the future and adjusts to the effects of coronavirus. A share scheme would be a non-cash way of doing this. What are the benefits of setting one up now?
SPREADSHEETS - 07.05.2020
A better way to show year on year changes in Excel
The board has asked you to come up with a year on year variance report. One way of doing this is to use formulas, but this will take time to set up and can lead to errors if changes are made to the data table. Is there a better way?
CORONAVIRUS - CORPORATION TAX - 07.05.2020
How to successfully negotiate time to pay
The corporation tax (CT) bill is due soon but you’re concerned the company won’t have enough cash to pay it. You’ve heard HMRC has made changes to its existing time to pay (TTP) scheme for coronavirus. Can you take advantage?
IR35 - 07.05.2020
Off-payroll working rules delayed
In the end the government decided to delay the reforms to the off-payroll working rules in the private sector. What does this mean for your company?
COMPLIANCE - 07.05.2020
HMRC targets EA and AL
HMRC has begun checking compliance with the rules on the employment allowance and apprenticeship levy. What do you need to know?
CORONAVIRUS - FURLOUGH - 07.05.2020
Will HMRC check furlough payment claims?
So far, making a claim for furloughed employees’ pay under the Coronavirus Job Retention Scheme (CJRS) seems to be relatively pain free. But HMRC has five years to check your calculations. How can you avoid trouble down the line?
