2020 -
December
CORONAVIRUS - 23.12.2020
Cycle to work conditions relaxed
If you operate the “cycle to work” scheme for your employees, coronavirus may have resulted in the conditions for the tax and NI exemption not being met. This has prompted a statement from HMRC clarifying the position. What’s the full story?
PRINCIPAL DESIGNER - 23.12.2020
Get the principal designer appointment right
The role of the principal designer in a construction project is often misunderstood. What does the role involve, who should be making the appointment and who is best placed to undertake the work?
TRAINING - 23.12.2020
Staff petrol bombed during training exercise
HM Prison and Probation Service has accepted health and safety charges in relation to injuries to prison officers during riot training. What happened and where did the service go wrong?
BREXIT - 23.12.2020
H&S after Brexit
Now that the UK is out on its own, has anything changed regarding health and safety compliance?
STORAGE - 23.12.2020
Poor storage leads to head injury
The National Exhibition Centre has appeared in court because bad storage arrangements led to a 11.5kg scenery prop falling onto an individual’s head. What mistakes were made and what action can you take to prevent falling objects?
VENTILATION - CORONAVIRUS - 23.12.2020
Good ventilation lowers coronavirus risk
The advice from scientists, and repeated in government guidelines, is that good ventilation reduces the risk of viral transmission. But having the windows wide open in winter won’t make you popular. What’s the latest information?
WORKPLACE TRANSPORT: REVERSING - 23.12.2020
Traffic marshal killed by reversing lorry
In 2016, during the redevelopment of the former BBC Television Centre, a traffic marshal was fatally struck by a reversing vehicle. His employer has since been fined £850,000. Where did it go wrong?
MENTAL HEALTH - 23.12.2020
Mental health: how teams can thrive
The Chartered Institute of Personnel and Development has published a guidance note to help managers to look after their workers’ mental health. What does it say and how might you make use of it in your business?
MINIMUM WAGE - 22.12.2020
Minimum wage changes
On 1 April 2021 the national minimum wage rates will rise. In addition, more workers will be legally entitled to receive the national living wage (NLW). What’s the all-important information?
UNFAIR DISMISSAL - 22.12.2020
No unfair dismissal - that will still be £16,000!
A former employee whose dismissal for gross misconduct was found to be fair by the tribunal has still been awarded more than £16,000 in compensation. Why was he handed this amount of cash if there was no unfair dismissal?
RETIREMENT - 22.12.2020
Can you ask about retirement plans?
Apparently, one in eight older workers is choosing to delay their retirement because of the economic fallout from the coronavirus pandemic. Can you ask an older employee when they plan to retire?
REDUNDANCY - 22.12.2020
Redundancy: paid time off to look for a new job?
If an employee who has been given notice of redundancy has two years’ continuous service, they are entitled to reasonable time off work during their notice period to look for a new job. Is this time off paid or unpaid?
recruitment - 22.12.2020
How to handle interview feedback requests
An unsuccessful job applicant has asked for feedback on their recent interview, as they are keen to polish their skills and secure employment elsewhere. Must you provide interview feedback where it’s requested?
DISABILITY DISCRIMINATION - 22.12.2020
Is “Long Covid” a disability?
Some individuals who contract coronavirus will unfortunately experience ongoing symptoms and effects. This is known as “Long Covid”. Where an employee has this condition, is it considered to be a disability?
HOMEWORKing - 22.12.2020
Should homeworkers be encouraged to “fake commute”?
The average homeworker gains 60 minutes per day by not commuting into work. However, 42% of homeworkers claim that no commute is having a negative effect on their well-being. So, should you encourage homeworkers to “fake commute”?
VAT PAYMENTS - 22.12.2020
HMRC launches payment deferral scheme
If your business deferred some VAT in 2020 due to coronavirus, you might be bracing to pay it back by 31 March 2021. How can a new VAT payment scheme help?
CONSTRUCTION INDUSTRY - 22.12.2020
Reverse charge for builders is (finally) coming
After two delays, the new reverse charge for builders is set to take effect from 1 March 2021. This will mean big changes, which are still not being fully appreciated by the industry. What must you do if you trade services with other builders?
CORONAVIRUS - CANCELLED SERVICES - 22.12.2020
VAT due on advance payment if service is cancelled?
One of our subscribers is a stage actress. Her company received an advance fee of £70,000 from a theatre in January 2020, but the show was cancelled due to coronavirus. No refund is due to the theatre, so what is the VAT position?
VAT INVOICES - 22.12.2020
Invalid VAT invoices: what should you do?
Your company’s auditors have identified a number of invalid VAT invoices from a major supplier. This means HMRC might disallow the input tax you have already claimed. How should you deal with this problem?
PARTIAL EXEMPTION - 22.12.2020
VAT savings on recruitment costs if partially exempt
Your partially exempt business needs an interim finance director for six months and a recruitment agency is proposing to charge you an hourly rate plus VAT for the person’s services. Is there a more VAT-efficient way of structuring the deal?
INCOME TAX - 22.12.2020
Rates and thresholds for 2021/22
The 2020 Autumn Spending Review confirmed the approach to the personal allowance and basic rate for 2021/22. What do you need to know?
COMPANY MERGERS - 22.12.2020
How to structure a company merger tax efficiently
One of your corporate clients has agreed to join forces with a competitor and operate the combined businesses as a joint venture. How can the reconstruction reliefs be used to undertake the company merger tax efficiently?
CORONAVIRUS - DIVIDENDS - 22.12.2020
Dividends, coronavirus and the distributable profits trap
Your client is single director company. It paid a dividend to the sole shareholder over the summer, but due to coronavirus it doesn’t have distributable profits to cover it, and the shareholder can’t afford to repay it. What should you advise?
PENSIONS - 22.12.2020
Using pension recycling to help fund coronavirus shortfall
Your client’s company is struggling for cash due to the second coronavirus lockdown. It has approached its bank for a loan but the interest rate being offered is eye-watering. How could your client use pension recycling as a tax-efficient alternative?
CORONAVIRUS - REDUNDANCY PAYMENTS - 22.12.2020
Enhancing the tax-free element of termination payments
There have been new rules governing the treatment of termination payments in effect since April 2020. Sadly, many clients will be dealing with these first hand sooner than they would have expected. How can you help improve the efficiency of such payments?
CGT PLANNING - 22.12.2020
Should rumours of increased CGT rates cause concern?
The Office of Tax Simplification has made a number of recommendations to the government, including aligning capital gains tax (CGT) rates with income tax. What should you be advising clients who believe that rates will increase in 2021?
VAT - 22.12.2020
End of Brexit transitional period: trading in services
The end of the Brexit transitional period was 31 December 2020. For your clients that buy and sell services, rather than goods, most issues will remain the same. However, what two key changes do you need to advise them about?
TAX RETURNS - 21.12.2020
No deal on tax return deadline
Representatives from the professional accountancy bodies met with HMRC to urge them to move the 31 January 2021 filing deadline. HMRC ultimately said no, but did clarify some important points regarding penalties. What are they?
CORONAVIRUS - 21.12.2020
Tier 4 workplace implications
A new Tier 4 of coronavirus-related restrictions took effect from Sunday, 20 December 2020, affecting London and many areas in the south east and east of England. What are the implications for employers?
CORONAVIRUS - 18.12.2020
Furlough scheme extended again
Originally, the Coronavirus Job Retention Scheme (CJRS) had been due to finish at the end of March 2021. It’s been announced that it will be extended until the end of April.
GREEN ECONOMY - 17.12.2020
Ten-point green economy plan
The government has issued its long-awaited plan to fuel a green economy. What does it include and how might you be affected?
MARKETING - 17.12.2020
How to avoid greenwash penalties
It’s easy to fall into the trap of over stating your case and making misleading green claims. This is known as “greenwashing”. However, the government is clamping down on this practice. What’s the latest?
WATER LEAKS - 17.12.2020
Prevent winter water leaks
Winter is a time when water leaks are more likely, as freezing weather hits and rainfalls cause land and structures to move. It’s time to take action to prevent this potential waste of resources.
WASTE - 17.12.2020
Plastic tax legislation due in 2022
The government has published draft primary legislation on the tax that will be introduced if you use plastic packaging. What does it say and what should you be doing in preparation?
EMISSIONS - 17.12.2020
Business travel policy
The coronavirus pandemic is likely to have had a significant impact on the amount of business travel your staff undertake, for example if meetings are now online rather than face-to-face. How might you reflect this in your policies?
POLLUTION - 17.12.2020
Emergency spill procedures prevent water pollution
A food company which caused water pollution has agreed to donate to charity in compensation. What events led to it doing so and how was the unfortunate event so very nearly avoided?
WASTE - 17.12.2020
Fined for illegally storing scrap vehicles
A company has been fined after arguing that unroadworthy scrap vehicles on his site were there for “assessment” and ignoring several warnings to remove them. How can you avoid a similar fate?
SALARY ADVANCES - 17.12.2020
Should you offer a salary advance?
Even employees who had financial security ahead of the pandemic are now struggling as redundancy and pay cuts kick in, with the prospects for 2021 looking bleak for many. Do you have a role to play in supporting them, e.g. via a salary advance?
BENEFITS IN KIND - FUEL - 17.12.2020
Car and fuel benefits - how to avoid the traps
The press has been full of the news that sales of petrol and diesel cars will be outlawed by 2030, but that still means ten more years of understanding car and fuel benefit issues from a payroll perspective. How can you play it safe?
CORONAVIRUS - BENEFITS IN KIND - 17.12.2020
Coronavirus test tax exemption
The government has decided to exempt employees from tax where their employers pay for them to be tested for coronavirus. However, the exemption is limited. As an employer what do you need to know?
CORONAVIRUS GRANTS - 17.12.2020
When will coronavirus support payments be taxed?
Coronavirus support payments, whether received from your local authority or central government, are taxable income for your business. How and when should you report the income to HMRC?
PROFIT EXTRACTION - 17.12.2020
Pay your spouse or partner to save tax
Your spouse was made redundant with little prospect of getting a job in the near future. As a result they’re wasting their tax-free allowance and losing state pension rights. Might paying them from your company help?
COMPANY CARS - 17.12.2020
Car fuel benefit - poor records cost tax
The tax charge for car fuel benefit is easily avoided with a few simple steps. However, a recent First-tier Tribunal decided that an employer’s actions weren’t sufficient to prevent it. What went wrong and how can you avoid the same mistakes?
LOANS - 17.12.2020
Directors’ loans - is indirect borrowing taxable?
One of our subscribers wants her company to lend money to two individuals who will use the cash to help fund a new business partnership which she’s also involved in. Will it count as a taxable director’s loan?
INCOME TAX - 17.12.2020
Life insurance bonds and HMRC‘s top slicing relief trap
If you’ve cashed in a life insurance bond you’ll need to report it on your self-assessment return. This might involve so-called top slicing relief. HMRC has changed its mind on how to calculate this. What do you need to know?
VAT - STAFF GIFTS - 17.12.2020
Accounting for VAT on employee gifts
After a tough year you might be scaling down Christmas gifts for your employees. Even so you need to consider the VAT consequences which vary depending on the cost and type of gift. What should you be reporting on your VAT return?
DIRECTORS’ LIABILITY - 16.12.2020
Directors can avoid liability
All directors should be aware of their general “directors’ duties”, but did you know that they can be “relieved” from liability even if they’re in breach? When is this relief likely to be granted?
TAX - BENEFITS - 16.12.2020
Declaring income from EU companies
One of our subscribers is a shareholder in a company based in Europe. In 2019/20 it paid dividends and gave him non-cash perks. He’s read that benefits in kind from foreign companies aren’t taxable. What should he declare to HMRC?
TAX - IR35 - 16.12.2020
Avoiding double taxation under the new IR35 rules
From April 2021 if you provide your services through an intermediary they and not you will decide if IR35 apples. Where they decide it does there’s a risk of the same income being taxed twice. What steps must you take to avoid this?
CARS - 16.12.2020
Are plug-in hybrids the solution?
Plug-in hybrid vehicles (PHEVs) promised the best of both worlds: greener than a petrol or diesel equivalent but without the range limitations and price tag of a pure electric vehicle. But do they really deliver?
CARS - 14.12.2020
CO2 emissions thresholds cut
The government is altering the CO2 emissions threshold for capital allowances to encourage the use of electric cars. What’s changing?
BREXIT - 10.12.2020
Post-Brexit NI goods movement
The government has introduced the draft legislation that will govern the way VAT, customs and excise duty will work following 31 December 2020. What are the key points?
MENTAL HEALTH - 07.12.2020
Workplace mental health challenges
Mind has published the results of a survey which asked 44,000 employees about their mental health at work. What did it reveal?
SLIPS, TRIPS AND FALLS - 07.12.2020
Gallery owner at fault for milkman’s fall
A milkman has won an appeal and been awarded damages after he had a fall while delivering milk to the Scottish National Portrait Gallery in Edinburgh. Where did the gallery go wrong?
CORONAVIRUS - 07.12.2020
Workers fear catching coronavirus
An independent report has found that 35% of workers are concerned about the transmission of coronavirus in their workplace. What are the other findings of the research and what should you take from it?
risk assessment - 07.12.2020
Care home resident fell from unrestricted window
A care home operator has been fined £40,000 for health and safety failings after a vulnerable resident fell to his death from a second-floor window. What restrictions should have been in place to prevent the fall from height?
HOMEWORKING CHECKLIST - 07.12.2020
Homeworking checklist
With homeworking now becoming the norm for many office workers you need to undertake some basic checks to be sure that they are able to work safely in that environment. What questions should you ask?
FORK LIFT TRUCKS - 07.12.2020
Fork lift driver killed in “driveaway” accident
A pallet truck company has paid out over £120,000 after one of its fork lift truck drivers was killed when the machine overturned. What should have been done to prevent this?
FIRE SAFETY - 07.12.2020
What’s wrong with expanding foam filler?
When services such as pipes and cables pass through walls and floors, they often create a weakness in the fire protection of the building. A common response is to use fire-rated expanding foam. But why might this be a bad idea?
CORONAVIRUS - 07.12.2020
Work-related travel and Christmas bubbles
Now that England has reverted to a revised tier system of local coronavirus-related restrictions, what are the latest developments impacting employers?
STAFF CONDUCT - 04.12.2020
The risk of online parties
Like many employers this year, you might be holding a virtual annual party. As employees attend these social events from their own homes, is their behaviour your concern?
MATERNITY - 04.12.2020
Can a maternity returner demand part-time hours?
A full timer who is currently on maternity leave is claiming that she has a legal right to return work on a part-time basis. You believe that this type of request can be refused. Who is correct?
HARASSMENT - 04.12.2020
16-year-old apprentice wins £8,000 for harassment
A 16 year old who was called “immature” when he chased an employer about a promised apprenticeship has been awarded £8,000 for the harassment he experienced. As well as name calling what else did the employer do wrong?
CORONAVIRUS JOB RETENTION SCHEME - 04.12.2020
Furlough pay claims: time limits, delays and excuses
All furlough pay claims must now be submitted within two weeks of the end of the previous calendar month, unless you have a “reasonable excuse for failing to make the claim in time”. What will HMRC accept as a reasonable excuse?
RESIGNATIONS - 04.12.2020
Can an employee withdraw their resignation?
An employee resigned amicably a few days ago. They’ve now said that they are withdrawing their resignation and will be staying on in your employment. Does an employee have the legal right to retract their resignation?
SUSPENSION - 04.12.2020
15 days’ pay for employee’s unpaid “suspension”
An employee has been awarded 15 days’ pay after his employer told him not to attend work following an anonymous misconduct allegation. This was effectively a suspension. Why did the tribunal make that award?
right to work - 04.12.2020
The right to work check grace period for EU citizens
The Brexit transition period ends on 31 December 2020 and a new immigration system will apply to EU citizens coming to the UK from 1 January 2021. What right to work checks must you undertake during the six-month period to 30 June 2021?
DISCRIMINATION - 04.12.2020
How does employment law protect non-binary workers?
Gender identity isn’t limited to the binary of male or female. In fact, in 2020, it’s estimated that there are around 250,000 UK people who identify as non-binary. To what extent are non-binary workers currently protected by the law?
TAX AVOIDANCE - 03.12.2020
HMRC gets tough on tax scheme ads
HMRC and the Advertising Standards Authority (ASA) have issued a joint enforcement notice to combat ads promoting aggressive tax avoidance schemes. What’s going on?
CASH FLOW - 03.12.2020
How to get the most from your non-core assets
The company has a number of non-core assets that are not essential to generating revenue and the core business operations of the company. Should you advise the board to sell these non-core assets to free up cash?
MERGERS & ACQUISITIONS - 03.12.2020
What should heads of terms include?
Your company is acquiring another business and the board has asked for your assistance in drafting a heads of terms agreement. What should you consider including in such an agreement?
RECRUITMENT - 03.12.2020
Intern opportunity?
There are plenty of young people on the market and you need an extra member of staff as business has started to pick up. What might you save by bringing an intern on board?
TAX - 03.12.2020
Business change - the tax implications
Many businesses have been forced to make changes to the way they operate in an attempt to stay afloat and profitable during the pandemic. Are there tax implications to be aware of though?
VAT - 03.12.2020
Compensation payments U-turn
HMRC has changed its mind in relation to the VAT treatment of compensation payments - and the timing could not be worse. What do you need to know to ensure compliance?
