2022 -
January
BREXIT - 27.01.2022
Intrastat arrival returns abolished
HMRC has confirmed that Intrastat arrivals reports are no longer necessary for a GB based firm since 1 January 2022. What does this mean for your business?
EU TRADE - 27.01.2022
Goods sold to a UK customer but delivered to EU
One of your customers is UK based and has asked you to manufacture some goods and export them directly to their customer in Ireland. Their customer is VAT registered in Ireland. How do you deal with VAT for the Irish trade?
CASH ACCOUNTING SCHEME - 27.01.2022
Tips for when you leave the cash accounting scheme
Your turnover has grown since the end of the last lockdown, and you must now leave the cash accounting scheme at the end of your current VAT quarter. How can your business mitigate the cash flow challenges this will create?
LEGAL FEES - 27.01.2022
Challenging HMRC’s crackdown on legal fees
You are the sole director and shareholder of your limited company and one of your customers has issued legal proceedings against you and the company. Can you claim input tax on the legal fees to defend your case?
INPUT TAX - 27.01.2022
Ensure your suppliers don’t charge VAT incorrectly
HMRC officers will often check that your business has not claimed input tax on supplies that should be exempt, zero-rated or outside the scope of VAT. You can only claim correctly charged VAT. What are the three main risk areas that you should be aware of to avoid a problem with HMRC?
VAT ERRORS - 27.01.2022
Accounting for VAT on gift vouchers
One of our subscribers is a retailer of sports equipment and issues gift vouchers that can be redeemed for goods in the following twelve months. Our subscriber only accounts for VAT when the voucher is redeemed. Is this a VAT error?
RECRUITMENT - 27.01.2022
Digital right to work checks coming soon
New technology will enable employers to conduct digital right to work checks on some British and Irish citizens from 6 April 2022 using certified providers. How will this work?
HOLIDAYS - 27.01.2022
Can you cancel pre-booked annual leave?
With staff shortages now affecting many businesses due to coronavirus-related incapacity for work, one option to consider is cancelling the annual leave of those workers who are still fit to work. Can you lawfully do this?
DISMISSAL - 27.01.2022
Handling “heat of the moment” resignations and dismissals
Resignations and dismissals aren’t binding if there are special circumstances that mean they can’t be relied on by the other party. What should you do when an employee resigns, or a manager dismisses an employee, in the heat of the moment?
TIME OFF - 27.01.2022
What rights do staff in surrogacy arrangements have?
Where employees enter into surrogacy arrangements in order to have a child, questions may arise as to what their entitlements are to time off work both before and after the child is born. What are their leave and pay rights?
RISK ASSESSMENT - 27.01.2022
Ignoring HSE notices rarely ends well
HSE inspectors uncovered a litany of health and safety breaches at a construction site in Scotland. What did the company get wrong, and what happened to it and its director?
P11D - 27.01.2022
New P11D filing system
Many smaller businesses use HMRC’s interactive PDF to file their P11D forms each year. However, this won’t be available for the 2021/22 year onwards. If that includes you, how will you report your figures in the future?
PROPERTY - 26.01.2022
How to use losses in a mixed property business
You own several properties, some commercial and some residential. In the last tax year you made a loss from letting some of the properties while others made a profit. What’s the most efficient way to use the losses?
PROFIT EXTRACTION - 26.01.2022
The dos and dont’s of tax-efficient bonuses for directors
Your company’s accounting period is ending soon and the directors want to pay a bonus so the company can reduce its corporation tax bill. The trouble is they don’t want to pay tax on it until the following year. Is this possible?
PENSIONS - 26.01.2022
Topping up a director’s personal pension fund
A married couple run a small company but plan to retire in a few years. They want to use the company’s profits to significantly top up their personal pension funds. Can HMRC refuse a tax deduction for this?
BENEFITS IN KIND - 26.01.2022
Can you make tax and NI-free gifts to your staff?
Generally, gifts you make to your employees are taxable as benefits in kind unless they are covered by a specific exemption. However, are they taxable if the gift is being made for private reasons?
VAT - 26.01.2022
Reclaiming VAT paid on “business” purchases
You recently bought some artwork for your offices. Your bookkeeper says you might not be entitled to reclaim the VAT paid on the purchases. As the items are solely for the business premises can this be right?
INVESTIGATIONS - 26.01.2022
New investigation powers for HMRC
Tax inspectors will soon have more powers to dig into your tax affairs. What’s more, the new rules will apply retrospectively. What’s the full story?
CAPITAL GAINS TAX - 26.01.2022
Selling your business by instalments
A First-tier Tribunal has considered a claim for entrepreneurs’ relief (ER) by a business partner who sold his share of the firm by instalments. HMRC refused relief for the gain relating to the sale of the business premises. Was it correct to do so?
DRIVING - 26.01.2022
Highway Code updated
On 29 January 2022 three new rules will be added to the Highway Code. What are they and why should you communicate their importance to employees who drive on work-related business?
PROFIT EXTRACTION - 25.01.2022
Profit extraction 2021/22
With the 5 April tax year end in sight, now is the time to look at profit extraction with your small company clients. What specific considerations might affect your advice this year?
SELF-ASSESSMENT - 25.01.2022
Clarifying the position for late filers
Following HMRC’s decision to offer a one-month reprieve for late tax returns this year, it’s likely that you will have at least some client returns to file in February 2022. What’s the position for late filing in respect of penalties?
ANTI-AVOIDANCE - 25.01.2022
Ensure clients don’t fall foul of the anti-phoenixing rules
The two shareholders of one of your corporate clients wish to go their own way and liquidate the trading company. Will their new business ventures trigger the anti-phoenixing rules, and what alternative solution can you suggest if so?
PENSIONS - 25.01.2022
Can salary sacrifice save money with pension schemes?
Your client operates an employer pension scheme where contributions are made by both the employer and the employees. How could a salary sacrifice arrangement save both parties money without impacting the level of savings?
DIRECTORS’ REMUMERATION - 25.01.2022
Limited company sole director risks
Directors often have misconceptions regarding their remuneration. This can sometimes have consequences for you as the advisor. What does a recent High Court decision underline the importance of impressing on clients?
INVESTMENT BONDS - 25.01.2022
Migating the tax when an investment bond matures
A higher rate taxpayer client invests heavily in insurance investment bonds. A particularly well-performing bond is due to mature in June 2022, and they are asking if there is any way to reduce the income tax charge. What might you suggest?
DIRECTORS’ LIABILITY - 20.01.2022
Disqualification regime extended
Until recently, a director could be disqualified for “unfitness” if their company was insolvent, but the conduct of directors who dissolved their companies while solvent escaped scrutiny. The disqualification regime has now been expanded to close this loophole. What’s prompted this change and what difference will it make?
GROSS MISCONDUCT - 20.01.2022
Unfairly dismissed for swearing at abusive customer
An employee who was dismissed for gross misconduct after he told an abusive customer to “fuck off” has won his claim for unfair dismissal at the tribunal. Where did the employer go wrong?
CORONAVIRUS - 20.01.2022
Warning to companies to report grants
HMRC has published new guidance to companies about the taxation and reporting of coronavirus support payments. What special steps should you take to ensure that your company’s return is correct?
FRAUD - 20.01.2022
How to avoid payment diversion fraud
With many more employees continuing to work from home and that trend likely to continue indefinitely, there’s an increased risk of payment diversion fraud (PDF). But what is it and how can it be prevented?
COMPLIANCE - 20.01.2022
What does your senior accounting officer certify?
If you’re a large company incorporated in the UK you must ensure that your senior accounting officer (SAO) is able to certify that your PAYE arrangements are compliant. What does that mean?
SOFTWARE - 20.01.2022
Payroll IDs - why you need to get them right
Surely a unique identifier for a payroll record is just an employee or NI number and that will be sufficient for HMRC compliance purposes? In fact, such a number won’t do - what do you need to know?
CORONAVIRUS - 17.01.2022
Business shut due to COVID - staff pay rights
If you’re forced to close your business for a few days because several employees are self-isolating, what’s the pay position for those who would have been fit and able to attend work?
VAT - 14.01.2022
HMRC delays new VAT penalty rules
The first step towards alignment of VAT and direct tax penalties was due to take place in just two months but yesterday the government announced a delay. What’s the full story?
COMPLIANCE - 13.01.2022
What’s new for 2022/23?
There’s been a trickle of key announcements for employers in respect of the new tax year. What can you rely on so far?
As both the apprentice rate and the 21/22-year-old minimum wage rate rise sharply, it’s important to check that employees in these categories are still able to participate in salary sacrifice arrangements without reducing their pay below the appropriate rates.
TAX CODES - 13.01.2022
Tax codes: back to basics
Lots of employees don’t understand how their tax code is made up and they are likely to come to you when they have a question/problem. What do you need to know to help them?
DISMISSAL - 13.01.2022
Dismissal for raising numerous frivolous grievances was fair
The Employment Appeal Tribunal has upheld a finding that it was fair to dismiss an employee for using their employer’s grievance procedure in a frivolous and vexatious manner. What key points can you take from this ruling?
TIME OFF - 13.01.2022
The right to time off for public duties
Employees are entitled by law to take a reasonable amount of unpaid time off from work during their normal working hours to carry out certain designated public duties. How far does this statutory right extend?
SICK PAY - 13.01.2022
Temporary changes to the SSP rules
The Coronavirus Statutory Sick Pay Rebate Scheme has been temporarily reintroduced and there’s also been an important temporary change to the statutory sick pay (SSP) medical evidence requirements. What are the details?
CAPITAL GOODS SCHEME - 13.01.2022
Capital goods scheme: a VAT pitfall when buying a business
A subscriber is buying a pub as a going concern. The seller has said that they purchased it for £1 million plus VAT two years ago and this could affect our subscriber’s own VAT returns. Why is this the case and what should they do?
CHARITIES - 13.01.2022
Should your charity choose a “design and build” contract?
Building services to construct a new building are zero-rated if your charity certifies that it will wholly use the building for charitable activities. But what is the VAT position with the professional fees associated with the project?
LAND - 13.01.2022
Changes to land and property supplies?
The government issued a call for evidence in May 2021 about making major changes to the VAT rules for land and property supplies. What does this mean for your business?
BREXIT - 13.01.2022
Can you claim VAT on the costs of your EU office?
Your business supplies services to EU business customers and you have decided to rent an office in an EU country which will be used by your employees there. Your landlord will charge VAT on your rent. Can you reclaim this?
VALUE OF SUPPLIES - 13.01.2022
Part-exchange value for VAT purposes
Your business might sometimes agree to provide goods or services to a customer in return for other goods or services from them, rather than payment in cash, e.g. part exchange. How will you account for VAT in this situation?
PENALTIES - 13.01.2022
Penalties to be issued for late repayment returns
Since VAT was introduced in 1973, there has never been a surcharge or penalty issued by HMRC for a VAT return that shows a net repayment. But that will change from 1 January 2023. What is the change and how can you avoid problems?
PASSENGER LIFTS - 13.01.2022
Resident killed in faulty passenger lift
In January 2017 a care home resident died in a faulty passenger lift. Although the lift maintenance company had identified the problem which caused it, the lift remained in service. What managerial mistakes were behind the accident?
VENTILATION - 13.01.2022
Carbon dioxide monitors and other ventilation tricks
Coronavirus advice on the topic of ventilation changes regularly due to scientific advances and how the HSE decides to best put the information across to employers. What’s the latest?
TREES - 13.01.2022
Council fined £300,000 over fallen oak tree
Staffordshire County Council has been heavily fined in relation to an accident in which a man was killed by a falling tree. What happened and what should you do to avoid the same mistakes?
SHARED PREMISES HEALTH AND SAFETY CHECKLIST - 13.01.2022
Do you control shared premises?
If you’re in charge of a multi-occupancy premises the division of health and safety responsibilities can seem complex. Why not reassure yourself that you’re on the right path by carrying out a review with our checklist?
CYCLE TO WORK - 13.01.2022
New Year cycle to work commitments
Some of your staff have returned from their Christmas break with resolutions to get fit and reduce their impact on the environment. This includes cycling to work whenever they can. Are there any benefits for employers in helping their staff with this?
TRAINING - 13.01.2022
Is accredited training worth the extra cost?
There is a wide array of options and prices for health and safety training, with courses which are accredited by well-known bodies usually the most expensive. How do you know if they’re worth it?
STATISTICS - 13.01.2022
Accident statistics 2021 - trends
The HSE’s annual statistics show a return to normal after a dip in accident numbers the year before. What can be learned from the numbers?
BANK HOLIDAYS - 13.01.2022
The June 2022 bank holidays and part timers
In 2022 the last May bank holiday has been moved to Thursday 2 June and there’s a one-off additional bank holiday on Friday 3 June. If a part timer doesn’t usually work on Fridays, must you give them time off in lieu?
HOMEWORKING - 13.01.2022
Homeworkers, power cuts and pay
On average, there are 80 power cuts each day in the UK and they are expected to increase over the next few years. Where a homeworker can’t work due to a lengthy power cut, are they entitled to be paid for working time that’s lost?
HEALTH & SAFETY - 13.01.2022
Hidden health danger for homeworkers
Experts are warning employers that thousands of homeworkers are missing out on daily incidental exercise and this may lead to serious health problems in the future. If you have homeworkers, what can you do to help them?
SICK PAY - 13.01.2022
Fit notes temporarily scrapped
Emergency legislation has been brought into force which temporarily allows employees to self-certify for 28 days instead of the usual seven days for statutory sick pay purposes. When do the temporary rules apply?
UNFAIR DISMISSAL - 13.01.2022
£23,000 for “breaching COVID rules”
An employee who was accused of gross misconduct and sacked for “knowingly breaching COVID rules” has won his claim for unfair dismissal and been awarded over £23,000. Why did he win?
RECRUITMENT - 13.01.2022
Vaccines: time to rethink “no jab, no job”?
We previously advised you not to introduce a “no jab, no job” policy for new hires. Since then, new Regulations have made the COVID-19 vaccine mandatory for workers in some healthcare settings. Has our advice now changed?
EMPLOYMENT STATUS - 13.01.2022
Does a director shareholder have employee status?
Thousands of director shareholders play a crucial hands-on role in the day-to-day running of their small businesses. Does their status automatically mean that they are an employee?
HMRC - 13.01.2022
New HMRC discovery powers will be retrospective
The government has confirmed that the Finance Bill will include changes to discovery assessments, allowing HMRC to recoup unpaid high income child benefit charges going back almost ten years. What’s the full story?
IT - 10.01.2022
Help to Grow Digital scheme
Help to Grow Digital is a new UK-wide scheme to help SMEs adopt digital technologies that are proven to increase productivity. Can you take advantage?
FINANCIAL REPORTING - 10.01.2022
What’s the correct rate to use for deferred tax?
Your company prepares accounts under FRS 102, so you need to include a deferred tax provision. With the corporation tax rate increasing from 19% to 25% on 1 April 2023, what rate of tax should you use?
RAISING FINANCE - 10.01.2022
The end of LIBOR - does this affect you?
As your business adapts to post-lockdown trading, you may be considering your financing and leasing arrangements. How will the end of LIBOR affect these considerations?
DIRECTORS’ EARNINGS - 10.01.2022
Optimum tax efficiency with a freelance role?
The hike in corporation tax in 2023 means that the “dividends versus salaries” debate will intensify. Should small owner-managed companies switch to some freelance work too, in the interests of tax efficiency?
VAT - 10.01.2022
The benefits of quicker VAT repayment claims
Some large purchases mean that the next VAT return will, for the first time, be a repayment claim. Is there any way of speeding up this repayment from HMRC to improve cash flow?
EXPENSES - 10.01.2022
Tax relief on mobile phone deals
The way in which mobile phones are bought is changing. More are now purchased on SIM-only deals covering calls and data, with the phone bought separately. But what does this mean for tax relief?
DIRECTORS’ LOANS - 10.01.2022
Don’t get caught by the s.455 charge
If a director borrows money from the company there can be a special tax charge applied to the outstanding debt. Repayment is one option to avoid the charge, but are there any others?
CASH FLOW - 10.01.2022
Preserving cash flow after the end of government aid
Government support packages have been a vital lifeline to ease the pressure on businesses throughout the pandemic. How can you measure and mitigate the impact on your cash flow now that these financial aids are no longer in place?
CRYPTOCURRENCIES - 10.01.2022
Can you take advantage of DeFi?
Bitcoin is likely to be on your radar, but you may not be so familiar with decentralised finance (DeFi). What is it and is this something that your company could take advantage of?
SPREADSHEETS - 10.01.2022
How to handle formula errors in Excel
Having an error such as \DIV/0! in a worksheet can make users question the integrity of your spreadsheet. The IFERROR function is very useful for handling this and different types of error in Excel. How does it work?
RECRUITMENT - 10.01.2022
Digital right to work checks to be made permanent
The government has announced that from 6 April 2022, employers will be able to use a new permanent digital solution to conduct remote right to work checks. Will this simply be a permanent extension to the existing COVID-19 adjusted process?
TAX RETURNS - 07.01.2022
HMRC issues deadline reprieve
The standard deadline for individuals filing a tax return is 31 January. Failure to meet this deadline usually means a £100 automatic penalty applies, even if no tax is owed. Why will an HMRC announcement bring relief to those struggling due to the pandemic?
BREXIT - 07.01.2022
New year brings new Brexit rules into force
To all intents and purposes, the UK left the EU on 31 December 2020. However, some changes to rules were delayed to ease the transition. From 1 January 2022 there are additional customs rules to be aware of for businesses trading with the bloc. What’s changed?
CAPITAL GAINS - 06.01.2022
New CGT deadline for separating couples
The government is to change the law to correct one of the great tax injustices. The overdue reform will reduce the pressure on separating couples to settle ownership of their asset quickly or face a capital gains tax (CGT) bill. What’s the full story?
