2022 -
February
HOLIDAYS - 28.02.2022
How to deal with competing annual leave requests
With changes to COVID-related travel rules meaning more employees now want to take foreign holidays, you may be faced with an influx of competing annual leave requests for spring and summer 2022. How should you manage them?
PERSONNEL MANAGEMENT - 28.02.2022
Implementing a workplace climate change strategy
Environmental issues, and particularly climate change, are currently high on the agenda for many employees, and so now is a good time to focus on sustainability matters. What workplace initiatives could you look at introducing throughout 2022?
MINIMUM WAGE - 28.02.2022
Minimum wage increases and salaried hours workers
From 1 April 2022 the national living and national minimum wage rates will all increase by between 4.1% and 11.9%. Why might you be concerned about these increases in relation to your lower-paid salaried workers?
CORONAVIRUS - 28.02.2022
COVID self-isolation rules removed
The legal requirement to self-isolate in England for those who test positive for COVID-19 ended on 24 February 2022. What are the implications for employers?
NEW STARTERS - 28.02.2022
New starter essentials
Everyone expects to be paid correctly but arguably the first payslip of a new recruit is an indication of the shape of things to come. How do you ensure you get it right first time to avoid problems down the line?
NATIONAL MINIMUM WAGE - 28.02.2022
NMW ruling could prove costly for employers
A recent Employment Appeal Tribunal case considered items that an employee had chosen to purchase and their impact on whether he was paid the correct national minimum wage (NMW). What do you need to know as a result?
TRIBUNALS - 28.02.2022
What does the tax tribunal do?
You’re probably very familiar with cases that have gone through the employment tribunal system but what about the tax tribunal? Is this a system which you also need to know about?
STUDENT LOANS - 28.02.2022
What’s new for student loans?
We now have the final information about student loan deductions for 2022/23. What are the key takeaways from the announcement?
STATUTORY PAYMENTS - 28.02.2022
Key figures rise
The Employment Rights (Increase of Limits) Order 2022 has been laid before Parliament and will revise the compensation limits for certain tribunal awards and other statutory payments from 6 April 2022. What are the relevant increases?
CAPITAL GAINS TAX - 23.02.2022
Selling your business by instalments - a tax trap
You’ve accepted an offer to buy your business from one of your fellow directors. The trouble is they can’t afford to pay all at once. You’ve therefore agreed to accept instalment payments. Might this cause you tax problems?
VAT - 23.02.2022
New VAT policy on termination payments
HMRC is changing its policy on termination payments. As a result, some businesses will be entitled to a VAT refund while others will owe more. What’s the full story?
VAT - 23.02.2022
Sharing rental income and tricky VAT issues
You recently married. Your partner’s income is considerably less than yours and so you’re considering giving a share of a property rental business to them to reduce the overall income tax. However, could doing so land you with a VAT bill?
EXPENSES - 23.02.2022
Tax relief for start-up costs
The normal rules for tax relief on expenses don’t apply if they are incurred before your business commences trading. This can affect the timing and the amount of tax deductions. What do you need to know?
BUSINESS ENTERTAINMENT - 23.02.2022
Is business entertainment tax efficient?
Generally, the cost of business entertainment isn’t a tax-deductible expense. However, it can be where it relates to your employees. How far does this exception stretch and does it make staff entertainment tax efficient?
TAX CODES - 23.02.2022
Does HMRC have the right to amend your tax code?
HMRC is busily issuing PAYE codes for 2022/23, which starts in just a few weeks. With that in mind a recent ruling by a First-tier Tribunal (FTT) is a reminder of what HMRC can and can’t include in your tax code. What were the key points in the ruling?
TAX PLANNING - 23.02.2022
How to increase your CGT exemption
The annual capital gains exemption has barely increased in recent years. But in the right circumstances and with some planning you can manufacture your own increase. How’s it done?
INHERITANCE TAX - 23.02.2022
Simple ways to reduce IHT bills
Clients often leave inheritance tax (IHT) planning until later in life when its effectiveness can be greatly reduced. Others may be put off by the potential cost of planning products. But how might a simple family loan arrangement utilising exempt gifts help them?
enterprise investment scheme - 23.02.2022
Can EIS reliefs be preserved on a company takeover?
A client that holds shares in an enterprise investment scheme (EIS) company has been told that it is to list on the stock exchange. It will first be acquired by a special acquisition company via a share exchange. How will this be taxed, and can the shares’ EIS reliefs be preserved?
NATIONAL INSURANCE - 23.02.2022
HMRC confirms NI rates for 2022/23
The National Insurance (NI) rates and thresholds are reviewed each year. HMRC has recently published the applicable amounts for the forthcoming 2022/23 year. What are the most important points for clients to know?
CRYPTOASSETS - 23.02.2022
Cryptocurrency: a trap for remittance basis users
Some of your clients have been buying and selling cryptossets and have asked your advice on how to treat the sales for tax purposes. What is HMRC’s latest view, and is there a problem if the client is a remittance basis user?
IN THIS ISSUE: SEED ENTERPRISE INVESTMENT SCHEME - 23.02.2022
Take full advantage of the SEIS
A client has recently set up a trading company. They need a modest amount of investment, and you have introduced them to another client who will invest if seed enterprise investment scheme (SEIS) relief is available. What is this relief, and what must your client be wary of?
EMPLOYMENT-RELATED SECURITIES - 23.02.2022
An alternative way to reward staff
Your client cannot afford to make the customary inflation-linked increases to staff salaries this year. However, they are keen to reward their employees in some way. Why might a share incentive plan be a good alternative?
CAPITAL ALLOWANCES - 23.02.2022
Can clients claim the AIA for more than one business?
Generally, every business is entitled to an annual investment allowance (AIA) for capital expenditure each year. One of your clients owns multiple businesses, and is asking if he needs to apportion the AIA between them. What do you advise?
CORONAVIRUS - 21.02.2022
The end of mandatory self-isolation?
The PM is expected to set out the government’s Living with COVID Plan later today (21 February) and it’s widely anticipated that this will end the legal requirement in England for individuals who test positive to self-isolate. How should you respond to this?
EMPLOYMENT STATUS - 18.02.2022
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?
DISMISSAL - 18.02.2022
Fire and rehire prevented by injunction
The High Court has granted an injunction restraining Tesco from firing and rehiring staff to remove their contractual right to enhanced pay. Is this the end for fire and rehire practices?
PENSIONS - 18.02.2022
Pension entitlement during family leave
Where an employee is absent on maternity, adoption, paternity or shared parental leave, their pension entitlement is protected, but much depends on whether their leave is paid or unpaid and on your type of pension scheme. What’s the position?
PERSONNEL MANAGEMENT - 18.02.2022
How to support employee financial wellbeing
Higher living costs and forthcoming energy and tax burdens mean that many employees may be starting to struggle financially. What steps can you take to support employee financial wellbeing in 2022?
CONTRACTS - 18.02.2022
Employment contracts: what extra clauses do you need?
The law requires you to issue employees with a written statement of employment particulars that contains certain mandatory provisions. If you want to go further and issue a more detailed employment contract, what additional clauses should you consider?
CORONAVIRUS - 17.02.2022
Omicron support deadline approaching
Businesses in the hospitality sector in England had extra support made available in the wake of the Omicron variant in December 2021. However, time is fast running out to claim it. Who can claim and what should eligible businesses do?
SUSTAINABILITY - 14.02.2022
SMEs aim low on sustainability
A survey of small and medium sized enterprises (SMEs) has identified how the pandemic and energy price hikes have reduced their ambitions for environmental sustainability. What’s to know?
ENFORCEMENT - 14.02.2022
HSE taking a tough line
During recent HSE inspections 65% of businesses visited were found to be in breach of the law. What are the key risk areas?
FIRE SAFETY - 14.02.2022
£1 million fine for BUPA fire death
A BUPA care company has been ordered to pay fines and costs of over £1 million in connection with a fire that killed a care home resident. How did a failure to control smoking lead to the fire?
FIRST AID - 14.02.2022
Determining first aid needs
Because every workplace is different, it’s impossible for the HSE to specify your first aid requirements in detail. Instead, you’re advised to carry out an assessment of first aid needs. Why not use our form?
WORKING AT HEIGHT - 14.02.2022
Mobile tower had a single guard rail
A construction company has been prosecuted over a fatal accident in which an employee fell from an incomplete mobile tower scaffold. Why was a guard rail missing and could the company have got around its difficulties another way?
PPE - 14.02.2022
Is a “help yourself” system for PPE a good idea?
Many small companies have a fairly informal arrangement for providing PPE. It might involve a well-stocked cupboard or they put what they need on a trade account. But does this fulfil your legal duty?
TRESPASSERS - 14.02.2022
London Underground not liable for trespasser’s death
The mother of a trespasser who was killed in a fall down some stairs in a restricted area at a London Underground station has lost a claim for compensation. What were the full circumstances and why was the claim dismissed?
PAYROLL - 14.02.2022
Helping staff with money worries
48% of employees say that money worries are affecting their productivity and 50% wouldn’t be able to pay an unexpected £300 bill. Pay advances are fraught with problems, but is there a way you could help staff who are struggling financially?
SICKNESS ABSENCE - 14.02.2022
Must you tell long-term sick employees about vacancies?
Where an employee is absent from work on any type of parent-related leave, you must keep them informed about any internal job vacancies which arise. But what’s the situation where an employee is on long-term sick leave?
UNFAIR DISMISSAL - 14.02.2022
Pregnant employee fired for looking at colleagues’ emails
A pregnant employee who was fired after she searched her colleagues’ emails looking for evidence that they were bullying her has lost her unfair dismissal claim. Why was her dismissal not deemed to be automatically unfair?
STAFF HANDBOOKS - 14.02.2022
Should your policies be contractual or non-contractual?
Best practice states that an employer’s rules and procedures should be set out in written policies which can then be put together to form a staff handbook. Should your written policies have “contractual” or “non-contractual” force?
RECRUITMENT - 14.02.2022
Right to work checks for Brits
From 6 April 2022 you’ll only be able to conduct online right to work checks for non-British nationals - manual checks will no longer be possible. What will be the situation for British nationals?
HARASSMENT - 14.02.2022
Failing to flush the toilet was an act of harassment
An employee who was sacked after he used his work toilet when a cleaner was present and then failed to flush afterwards has lost his tribunal claim for unfair dismissal. Why were there solid grounds for dismissal in this case?
DISCRIMINATION - 14.02.2022
Employers not making reasonable adjustments?
According to a new poll of disabled workers, two in five are not receiving the reasonable adjustments they need from their employer. What are your statutory obligations here?
PENSIONS - 11.02.2022
Auto-enrolment thresholds frozen again
Each year, the government reviews the level of earnings at which employers must include their employees in statutory pension schemes. What’s the story for 2022/23?
LATE PAYMENT INTEREST - 09.02.2022
HMRC increases late payment interest again
HMRC has increased the rate of late payment interest for the second time in two months. In light of the reprieve for late filing penalties, do you need to worry?
BENEFITS IN KIND - 09.02.2022
Electric cars - worth the sacrifice?
With climate change and cost of living rises high on the list of employee concerns, is it time to look at an electric company car policy? Would such a scheme really bring any benefits?
EXPENSES - 09.02.2022
Creating an effective expenses policy
With new ways of working post-pandemic, you’re probably aware of the need to update a raft of employment policies. If you need to update or even draft an expenses policy, what are the key considerations?
EXPENSES - 09.02.2022
Homeworking allowance to be scrapped?
Recent press reports indicate that the Chancellor is likely to scrap the tax deduction for employees who work from home. Are they correct?
VAT - 09.02.2022
Is your VAT refund claim unjust?
Your new bookkeeper has pointed out that you’ve been charging some customers standard-rate VAT for goods that ought to have been zero-rated and accounted for the excess on your VAT returns. Are you entitled to a refund?
REMUNERATION PLANNING - 09.02.2022
Tax efficiency for pensioner directors
You’ve reached state pension age and so are no longer liable to NI on salary. To improve tax efficiency should you change how you take income from your company especially in view of the extra tax payable on dividends from 6 April 2022?
LOANS - 09.02.2022
Giving away shares in a family company - income tax trap
You started your company using a bank loan on which you claim tax relief for the interest you pay. The business has grown and you want to bring other family members in by giving them shares. Why might this increase your income tax bill?
NATIONAL INSURANCE - 09.02.2022
Can voluntary NI contributions be reclaimed?
A First-tier Tribunal (FTT) recently ruled on a case involving voluntary (Class 3) NI contributions. The individual who paid them wanted them to be refunded but HMRC refused. Was it right to do so?
LOSSES - 09.02.2022
Backwards or forwards loss relief?
Our subscriber wants to know if his company could claim tax relief for losses created by his company after paying into a pension for him. If yes, would it be more tax efficient to claim relief against previous or future profits?
EXPENSES - 07.02.2022
Checking expense claims meet HMRC standards
A robust system for checking employee expenses is essential to help to keep costs down. But does your system include the checks for tax and NI exemption required by HMRC?
KEY PERFORMANCE INDICATORS - 07.02.2022
Operating cash flow ratio
With cash flow being so important in uncertain economic times, the operating cash flow ratio is a useful tool to gauge your company’s short-term liquidity. What does it measure and how do you interpret it?
CORONAVIRUS - GRANTS - 07.02.2022
Omicron funding now available
New coronavirus grants are now available for some businesses to apply for. Can your company take advantage?
MANAGEMENT ACCOUNTING - 07.02.2022
Creating meaningful data visualisations
Financial controllers need ways of making sense of large sets of data to help inform decision making and communicate results. Using data visualisations such as charts and graphs can help achieve this. How can you make them meaningful?
NATIONAL INSURANCE - 07.02.2022
The true cost of the 1.25% NI hike
1.25% doesn’t sound like very much, however when we’re talking about NI it’s actually quite a lot. So, what is the real cost to your business from 6 April 2022 and what can you do to reduce it?
IMPORTS - 07.02.2022
New customs controls now in force
On 1 January 2022 new customs controls came into force. If you’re thinking about importing goods from the EU, what are the key changes that you need to be aware of?
PROFIT EXTRACTION - 07.02.2022
Benefits of lending cash to the company
One of the directors has inherited some money and is wondering if there are tax benefits in lending the cash to the company. Is this really the case?
GROUP STRUCTURES - 07.02.2022
Should you set up a holding company?
All your company’s assets and trade are within one company. The board are considering whether they should set up a holding company and have asked you to look into it. What are the advantages and disadvantages of having one?
SPREADSHEETS - 07.02.2022
Using Excel’s accessibility checker
You may have overlooked the accessibility checker tool in Excel, assuming that it was only relevant to users with disabilities. However, it does include checks that could make your spreadsheets easier to understand for all. What does it look for?
WHISTLEBLOWING - 07.02.2022
What does the Sue Gray report mean for your business?
The Sue Gray report has highlighted the importance of having whistleblowing policies and procedures in place to encourage the reporting of wrongdoing in the workplace. What do you need?
DEMOLITION - 01.02.2022
HSE urges better safety in demolition
The HSE says that standards of safety in demolition and dismantling are falling apart. With a large number of serious incidents in the last year, it’s reminding businesses, including clients, to plan with care. What steps should you take?
WATER - 01.02.2022
Eliminating your water tank worries
Older water systems may include a cold water tank tucked away in an attic or other high point in the building. Whilst its hidden location makes it easy to ignore your tank, you shouldn’t. What are the risks?
UNDERGROUND SERVICES - 01.02.2022
Grounds worker burned in underground services strike
A case heard in December 2021 concerned an accident in which a grounds worker struck an underground cable and was badly burned. Given that he planned to safely dig the hole by hand, how did it all go wrong?
CORONAVIRUS - 01.02.2022
Unfairly dismissed for not self-isolating
A fork lift truck driver who appeared to ignore rules requiring him to self-isolate has won his claim for unfair dismissal. How did the situation unfold and what points should you note in the way that you manage similar scenarios?
HAND-ARM VIBRATION SYNDROME - 01.02.2022
30 employees with hand-arm vibration syndrome
A specialist firm which installs and repairs glass in buses and trains has been fined after 30 employees were diagnosed with hand-arm vibration syndrome. How were so many affected before anything was done about it?
PPE - 01.02.2022
PPE for all workers
The Personal Protective Equipment at Work (Amendment) Regulations 2022 are due to come into force on 6 April 2022. Will they affect your duties?
SOLAR POWER - 01.02.2022
Should you take another look at solar panels?
Over the years you’ve considered investing in solar panels, but the numbers have never added up. But, with energy prices rising rapidly, should you take another look?
SICK PAY - 01.02.2022
SSP Rebate Scheme reintroduced
On 14 January 2022 new regulations came into force which temporarily reintroduce the Statutory Sick Pay Rebate Scheme. Which employers can apply to the scheme and when is it set to end?
RECRUITMENT - 01.02.2022
Changes to right to work checks for non-British nationals
From 6 April 2022 employers will no longer be permitted to carry out manual right to work checks for any non-British nationals that they wish to employ. How will right to work checks need to be conducted?
DISCRIMINATION - 01.02.2022
Is “fear of catching COVID-19” a protected belief?
In X v Y 2021, X had refused to return to work due to her “fear of catching COVID-19”. When the employer withheld pay, X argued that she had a philosophical belief protected by the Equality Act 2010. What did the tribunal decide?
UNFAIR DISMISSAL - 01.02.2022
Gross misconduct: fairly dismissed for taking a sickie
An employee who was sacked for gross misconduct when bosses discovered that he had taken a sickie so he could go on holiday has lost his unfair dismissal claim. Why was his argument that he was owed time off in lieu irrelevant?
PERSONNEL MANAGEMENT - 01.02.2022
Tell staff about the new Highway Code rules
On 29 January 2022 three new rules were added to the Highway Code. What are they and why should you communicate them and their importance to your employees, particularly those who drive on work-related business?
DISMISSAL - 01.02.2022
Misconduct: never say “we’ve no option but to dismiss you”
Having carefully considered all the evidence in a case of misconduct, you’ve decided to dismiss the employee. Why should you never say to them - either verbally or in writing - that there is no other option available to you?
