2021 -
September
HOMEWORKING - 29.09.2021
Homeworking: do you have to provide the equipment?
If you’re in the process of implementing long term or permanent homeworking arrangements for staff, one issue to consider is the provision or funding of equipment and facilities for homeworking. Are you legally obliged to provide this?
REDUNDANCY - 29.09.2021
Redundancy pay on refusal of alternative employment
A redundant employee who unreasonably refuses an offer of suitable alternative employment will lose their right to a statutory redundancy payment. What’s an unreasonable refusal and what’s suitable alternative employment?
RECRUITMENT - 29.09.2021
Verifying a successful job applicant’s stated qualifications
As well as taking up references, you should consider verifying other factual data that a successful job applicant provides in their CV, including academic and professional qualifications. How do you undertake this process?
TAX RATES - 29.09.2021
Tax hikes for 2022/23 confirmed
On 7 September 2021 the government confirmed some tax and NI rates would increase to help fund the NHS and social care. How will the changes affect your clients?
CORPORATE RESTRUCTURING - 29.09.2021
Holding company alternative to share exchange
One of your clients operates two trading companies and wants to insert a holding company above them. A share-for-share exchange is one option, but what alternative might you consider and why?
FURNISHED HOLIDAY LETS - 29.09.2021
Preserving qualifying status for 2020/21
The lockdowns of 2020 mean that clients with furnished holiday lets could fail to meet the qualifying conditions for the 2020/21 year. How can you help them maintain the qualifying status, and why is it important?
BUSINESS PROPERTY RELIEF - 29.09.2021
Ensure qualifying assets aren’t overlooked for BPR
A longstanding client has recently died and you are assisting the solicitors with the business property relief claim in respect of a trading company. What can you do to ensure maximum relief is obtained?
LOANS TO PARTICIPATORS - 29.09.2021
Does a partnership arrangement create a s.455 charge?
Your client is a director and shareholder of a company. She wants to use company funds to lend two of her friends money which will fund a new partnership. However, as she will be involved in the partnership, will the loans to participators rules apply?
ANTI-AVOIDANCE - 29.09.2021
Are you overlooking the value shifting rules?
The value shifting rules can apply a tax charge to a transaction in certain circumstances. Your clients are unlikely to be aware of the rules, so you will need to advise them accordingly. What circumstances should you be looking out for?
INVESTMENTS - 27.09.2021
Cut your investment bonds tax bill
One of your investment bonds is due to mature later this year. It’s showing a healthy gain and as a result you’re expecting a stiff tax bill. What steps can you take to reduce it?
DIRECTORS’ LOANS - 27.09.2021
Repay a director’s loan with dividends now or next year?
You borrowed cash from your company last year and the plan was to clear the debt with a dividend from your company next tax year. The trouble is by then the new higher dividend tax rate will apply. Should you therefore clear the debt sooner?
CARS - 27.09.2021
Partnership cars taxable as benefits in kind?
You own connected businesses that run through a partnership and a limited company. The partnership provides each partner with a car that they also use for company business. Will this result in a taxable benefit in kind?
VAT - 27.09.2021
VAT on mixed use property
Our subscriber is buying the freehold in a property, part of which he wants to convert to residential use. The other part is let to a charity with some years left to run on the lease. The seller wants to add VAT to the wholesale price. Is he right to do so?
NATIONAL INSURANCE - 27.09.2021
Business owners hit by tax and NI hike
The recently announced rise in NI and dividend tax was unwelcome news for most workers but especially for business owner managers. What impact can you expect the increases to have on your income?
INCOME TAX - 27.09.2021
Tax reform for the self-employed
You’ve heard reports about an important change to income tax regarding the “basis period” for sole traders and business partners. What does this involve and how might it affect your tax bill?
FLEXIBLE WORKING - 23.09.2021
Flexible working to become day one right
The government has announced plans to make the statutory right to request flexible working a day one right. What else is on the cards?
CARBON OFFSETTING - 22.09.2021
Think before you offset carbon emissions
With the Dutch advertising watchdog ruling that Shell has been greenwashing, it’s time to think before you consider carbon offsetting. What was the ruling and what can be learned from it?
ENVIRONMENT BILL - 22.09.2021
What’s new with the Environment Bill?
The Environment Bill is back in Parliament and a number of amendments have been made to it. What’s changed and what do you need to know moving forward?
ENVIRONMENTAL PERMITS - 22.09.2021
Plastics fire risk lands firm in court for breaching permit
A recycling company has been prosecuted after it was found to have stored far more fine plastics than was permitted, risking their escape into the environment or catching fire. Why did the authorities feel the need to act?
GUIDANCE NOTE - STATUTORY NUISANCE - 22.09.2021
Complying with statutory nuisance requirements
There are numerous ways to upset your neighbours, whether from noise, odours, litter or lighting. Our guidance note explains the subject of statutory nuisance and how to avoid it.
WATER - 22.09.2021
How to avoid a water company fine
The water industry has powers to prosecute the firms it supplies. How does this work and what steps should you be taking to make sure you avoid any potential penalties?
PACKAGING - 22.09.2021
What is home compostable packaging?
Some businesses are promoting the green credentials of the packaging they use by stating it is home compostable. But what does that mean and is this something that you should be looking at?
UNFAIR DISMISSAL - 21.09.2021
Employee denied right of appeal was fairly dismissed
The Employment Appeal Tribunal has decided that a dismissal in which the employee was denied a right of appeal was both reasonable and fair. Does this decision mean that you can stop offering a right of appeal?
HOMEWORKING - 21.09.2021
Hybrid working and the “normal place of work”
In a hybrid working arrangement the employee splits their working time between the employer’s workplace and a remote working location. In these situations what should be the employee’s contractual “normal place of work”?
MINIMUM WAGE - 21.09.2021
Can a worker contract out of the NMW?
You’ve been contacted by someone who is looking for a job. They’re offering to work for slightly less than the national minimum wage (NMW) and say that they will sign a contract to this effect. Why should you refuse?
HOMEWORKING - 21.09.2021
Do homeworkers need a music licence?
Any business which allows its employees to listen to music at work generally needs a music licence. But what if a homeworker plays music in the background whilst they’re working - must you obtain a music licence for them?
RECRUITMENT - 21.09.2021
Can you ask why they’ve declined a job offer?
You’ve just offered a job role to your ideal candidate, but they’ve unexpectedly refused. Can you ask for the reasons why they’ve declined your job offer, or could this open the door to a tribunal claim?
RECRUITMENT - 21.09.2021
Permanent digital right to work checks?
The end date for adjusted coronavirus right to work checks has now been deferred until 5 April 2022. Will this process become permanent?
CORONAVIRUS - 21.09.2021
NHS Covid Pass to access your workplace?
You’re thinking of requiring all employees to produce an NHS Covid Pass before they enter your workplace as this will enable you to check their COVID-19 status. Why might this be a bad idea?
INHERITANCE TAX - 21.09.2021
Easily avoid a life insurance tax trap
Life insurance policies generally pay out a premium in the event of the policyholder’s death. However, recently published figures from HMRC suggest that many of them are falling into an easily-avoided tax trap. What’s going on?
FITNESS FOR WORK - 20.09.2021
Assessing fitness for work
Some job roles require physical fitness, for example to work at height, in confined spaces or to carry heavy loads. Whilst you are permitted to ask questions about fitness to work, you must avoid discrimination. How can our flow chart help?
DIRECTORS’ DUTIES - 20.09.2021
How to ensure directors’ duties are met
When the HSE comes across serious breaches of health and safety legislation it will look to see where the buck stops. What type of evidence will persuade it that directors and senior managers are fulfilling their responsibilities?
ELECTRICAL SAFETY - 20.09.2021
Steep fine for striking overhead line
Those in the role of principal contractor must manage the safety of all activities on a construction site. One of those responsibilities is to control the risk from overhead lines. What was the outcome of a recent case involving a line strike?
CORONAVIRUS - 20.09.2021
Improving ventilation to reduce coronavirus risk
The HSE has published practical case studies illustrating how ventilation can be increased in different types of workplace so as to manage the risk of viral transmission. What does it suggest you do?
OCCUPATIONAL HEALTH - 20.09.2021
Should staff sit or stand?
A prominent safety organisation has confirmed that prolonged sitting is bad for health, but warns against standing all day too. What’s the advice?
FIRE SAFETY - 20.09.2021
Fire risk assessors feeling the heat
With another prosecution of a fire risk assessor reaching its conclusion, those who offer these services, and their clients, need to step up to meet current expectations. What’s been happening?
INSURANCE - 20.09.2021
Are your staff driving without insurance?
Where employees and workers use their own vehicles for work-related purposes, their insurance needs to cover that. However, there’s a risk that delivery drivers in particular could be at risk of invalidating their insurance policies. What’s the problem?
PENSIONS - 16.09.2021
New auto-enrolment warnings from the regulator
The Pensions Regulator is concerned that employers may have ignored vital housekeeping routines and compliance activities during the pandemic. What are the key areas to focus on now?
RTI - 16.09.2021
Reporting pension payments
HMRC has announced changes to the reporting of certain types of non-taxable payment to beneficiaries following a member’s death. What do you now need to know?
BUSINESS TAX ACCOUNT - 16.09.2021
HMRC upgrades tax account security
The business tax account (BTA) is a vital tool to check the accurate receipt of PAYE data and payments by HMRC. But what do you need to know about the security changes that it is implementing?
PAYROLL GIVING - 16.09.2021
Workplace payroll giving
There have been many examples of individuals wanting to give something back by supporting the charitable sector during the pandemic. Is it time to introduce a payroll giving scheme in your business?
DISMISSAL - 16.09.2021
SOSR dismissal not unfair despite lack of appeal
The Employment Appeal Tribunal has ruled that a “some other substantial reason” (SOSR) dismissal due to loss of trust and confidence was fair even though the employee wasn’t offered an appeal. Why?
DISCIPLINARY PROCEEDINGS - 16.09.2021
Investigating anonymous misconduct allegations
If you receive anonymous allegations of misconduct about an employee, it’s not safe just to ignore them as they could raise serious issues. What should you do when launching a disciplinary investigation into such allegations?
EMPLOYMENT LAW REFORM - 16.09.2021
Changes to sexual harassment and flexible working laws
The government has published its responses to consultations on sexual harassment in the workplace and reducing ill health-related job loss have been published. What are the outcomes?
CORONAVIRUS - 16.09.2021
Changes to self-isolation rules: implications for employers
If employees are contacted by NHS Test and Trace, in some circumstances they no longer need to self-isolate if they are a close contact of someone who’s tested positive for COVID-19. What are the implications for you?
LAND & BUILDINGS - 13.09.2021
HMRC reviewing land exemption rules
A change in VAT rules which will affect transactions in land and buildings is under consideration. What is being suggested in HMRC’s policy paper?
BREXIT - 13.09.2021
VAT IOSS up and running
The VAT import one stop shop (IOSS) scheme was introduced by the EU on 1 July 2021. It should simplify the process of importing low-value goods you sell in the EU. How does the scheme work and what pitfalls should you consider?
VAT RATES - 13.09.2021
Will the new 12.5% VAT rate affect your business?
On 1 October 2021 a new VAT rate of 12.5% will be introduced for most sales made by a hospitality business. How will you deal with the rate change in your purchase records and what savings can you make using the tax point rules?
REGISTRATION - 13.09.2021
Can you avoid VAT registration?
One of your subsidiary companies is usually below the VAT threshold, but coronavirus helped to increase its turnover. Annual sales exceeded £85,000 in the most recent month. Can the company avoid VAT registration?
CARS - 13.09.2021
HMRC confirms 20% rate to charge electric cars
If your business owns electric vehicles you might have previously been charged 5% VAT when you charged them at public places. HMRC has now issued a Brief advising that all supplies are subject to 20% VAT. What does this mean for claiming input tax?
DEVELOPMENT LAND - 13.09.2021
Land sale opportunity - should you opt to tax?
Our subscriber’s premises includes a separate plot of land suitable for residential development. They intend to appoint a surveyor to get planning approval and then make a sale of land to a builder. What VAT issues must they consider?
SMOKING - 13.09.2021
Can you stop homeworkers from smoking?
Japanese investment bank Nomura has apparently banned all its employees in Japan from taking smoking breaks, even while working from home. To what extent can you ban homeworking employees from smoking during their working day?
PENSIONS - 10.09.2021
Pension trip lock abandoned (for now)
Pensioners had been in line for a bumper increase in the state pension from April 2022 under the triple lock rules. However, the government has now confirmed this will not go ahead. What’s going on?
NATIONAL INSURANCE - 08.09.2021
NI hiked - how much more will you pay?
Boris Johnson has announced that NI and dividend tax rates will be hiked to help fund social care and clear the NHS backlog. Who will be affected and by how much?
PENALTIES - 07.09.2021
Late payment penalty rules made clear
HMRC has explained the circumstances in which it will consider not charging a late payment penalty under the new regime. What’s the full story?
VAT - 07.09.2021
Opting to charge VAT on a mixed use property?
Our subscriber is in the process of leasing a property to a tenant who will use the ground floor for her retail business and the upper floor as living accommodation. Could opting to tax the property save her VAT?
INHERITANCE TAX - 07.09.2021
IHT-efficient business gifts
It’s well known that the value of a business escapes inheritance tax (IHT) if it meets the conditions for business property relief. But if yours is a family business there are other ways you can use it to reduce your estate for IHT. What are they?
CAPITAL GAINS TAX - 07.09.2021
Transferring your business to a company
You’re considering transferring your unincorporated business to a company, primarily to save tax and NI. This can be done without triggering a tax bill but there’s more than one way to achieve this. What are your options?
IR35 - 07.09.2021
Preventing the double taxation of off-payroll income
If yours is one of the many firms that are now paying PAYE tax at source following the extension to the IR35 rules, what steps should you be taking to avoid paying tax twice on the same income?
TRADING STATUS - 07.09.2021
When is selling land or buildings “trading”?
The First-tier Tribunal recently ruled on whether profit made from the sale of land bought as part of a residential property was taxable as trading income or capital gains. What was the outcome and why?
TAX - 07.09.2021
New plastic tax on the way
A 2021 survey found that 83% of UK companies don’t know about the plastic packaging tax due to come in on 1 April 2022. If your company is a manufacturer or importer of plastic packaging, what action do you need to take to prepare?
CREDIT CONTROL - 07.09.2021
Customer services = effective credit control?
In the current economic climate it’s even more important to stay on top of your trade receivables. How can you use your sales or customer service team to help with the process?
SPREADSHEETS - 07.09.2021
Microsoft introduces “Show Changes”
A common concern many financial controllers have about sharing their Excel spreadsheets is that they don’t trust their co-workers not to inadvertently overwrite the formulas. In response, Excel now has a new “Show Changes” feature. How does it work?
SUPPLY CHAIN - 07.09.2021
Missing milkshakes
Sectors from construction to food are struggling with crippling supply shortages. What should your company be doing to manage its supply chain?
MANAGEMENT REPORTING - 07.09.2021
Performing a soft close
Due to the pandemic you’ve had to downsize the accounts team and are concerned about meeting your monthly deadlines. Performing a soft close could enable you to produce the reports on time. Where do you start?
RAISING FINANCE - 07.09.2021
Raising SEIS and EIS funding at the same time
The seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) have both been designed to attract investors to fledgling companies. But if you need to raise more than the £150,000 SEIS limit, can you apply for EIS funding at the same time?
KEY PERFORMANCE INDICATORS - 07.09.2021
Designing your own KPIs
Your company is currently using standard key performance indicators (KPIs) such as debtor days and gross profit margin, but you don’t feel that these are the most relevant to your business. What do you need to consider when designing your own KPIs?
benefits in kind - 07.09.2021
Board meeting travel expenses
The directors are working from home more often than not. However, they have been coming in for board meetings. What are the tax and NI implications for their travel expenses?
LOANS - 07.09.2021
Repaying a director’s loan
Director shareholders that end up owing money to their companies can trigger a tax charge for the company equal to 32.5% of what’s owing. What are the ways to avoid this happening?
COMPANY CARS - 07.09.2021
Fuel as a benefit
Employer-paid-for fuel tends to have a poor reputation for resulting in high tax bills. But is this also the case for hybrid vehicles? Is it worth another look to see if the benefit stacks up?
TAX YEAR - 02.09.2021
Change of tax year on the cards?
The Office of Tax Simplification is consulting on changing the tax year end date to 31 March. Why and what might be the payroll implications?
DATA PROTECTION - 02.09.2021
GPDR - time for a refresh?
It’s three years since the GDPR took effect, since when we’ve left the EU and been through a pandemic. Is it time to check if you’re still compliant with the relevant data protection requirements?
CORONAVIRUS - 02.09.2021
Have you overclaimed employers’ NI?
The Institute of Chartered Accountants in England and Wales (ICAEW) has issued new guidance that describes two scenarios where employers using the furlough scheme may have inadvertently reclaimed secondary Class 1 NI twice when the scheme was first introduced. What’s the full story?
