2022 -
April
ADMINISTRATION - 29.04.2022
Dealing with group registration delay
If you decide to form a VAT group, your business will be issued with a new VAT number. But what does new guidance indicate you should you do if HMRC delays your application?
REVERSE CHARGE - 29.04.2022
When is the reverse charge needed on VAT returns?
The number of business transactions subject to the VAT reverse charge has increased in recent years, even more so after Brexit. Are you getting your VAT returns right and are your suppliers dealing with it correctly?
FLAT RATE SCHEME - 29.04.2022
When should you leave the FRS?
You’re currently using the flat rate scheme (FRS) and are trading below the exit threshold. But what changes to your trading structure could make it worthwhile to leave voluntarily and is there an optimum way to do this?
LAND AND PROPERTY - 29.04.2022
Are you supplying more than land to your tenants?
Your business is looking to let out rooms in your trading premises. Your potential tenant has asked for some extra benefits as part of the deal. Do these create a possible land supply VAT problem and if so how should you deal with it?
ELECTRIC VEHICLES - 29.04.2022
Electric vehicle charging costs: HMRC’s input tax policy
Your business owns several electric vehicles (EVs), which are used by your employees for business purposes. Other employees own EVs and you pay them a mileage rate for their business trips. How much input tax can you claim on the costs you incur?
NON-REGISTERED SUPPLIERS - 29.04.2022
Belated VAT charge by non-registered supplier?
One of our partly exempt subscribers will pay £100,000 to a sporting celebrity to promote its products. They are concerned that the celebrity is a non-registered supplier. Could they be at risk of a belated VAT charge?
DIRECTORS’ LIABILITY - 28.04.2022
De facto directors: did consulting equal directing?
Two directors worked together for decades, running closely linked companies. Following the liquidation of two of the companies, the court had to untangle who was responsible for them, complicated by the fact that both directors had dementia. How did the court make sense of it?
ENVIRONMENT - 27.04.2022
Why use an EMS?
You’ve heard a lot about environmental management systems (EMS) and some of your competitors already have one in place. Before you go ahead and do the same, what could be the benefits, and aren’t they really only for large firms and come with a hefty price tag?
ERGONOMICS - 27.04.2022
Cutting MSD risks
It’s not just office workers who need protecting from musculoskeletal disorders (MSDs) as workers in all sectors and sizes of organisation are affected. What damage occurs and what benefit is there to you in investing time to reduce this hazard?
MACHINERY - 27.04.2022
Worker drawn into potato harvester
A farmer has been sentenced after a worker suffered multiple injuries having been drawn into a potato harvester. What happened and what could have been done differently to prevent this injury occurring?
WORKPLACE - 27.04.2022
Bull crushed worker to death
A livestock auction market has been fined after a bull crushed a worker to death whilst trying to load it onto a lorry. How did this occur and what lessons can you learn to avoid injuries in your workplace?
LIGHTING - 27.04.2022
Emergency lighting requirements
Many small companies have informal arrangements for emergency lighting, but do you understand its types and purposes and whether you’re legally required to have it? And how can you ensure the system is really emergency ready?
TRAINING - 27.04.2022
P&O in dry dock due to safety failings
It’s been widely reported that P&O Ferries has been forced to stop daily sailings due to failure of safety checks and the hiring of untrained, ill-prepared staff. What went wrong and how can you avoid similar disruption to your business?
ENFORCEMENT - 27.04.2022
HSE to visit woodworking businesses
The HSE has announced that the current focus of its inspections will be on woodworking businesses. Why is this, what will its inspectors be looking for and how can you prepare?
DISCRIMINATION - 27.04.2022
Request for new chair costs employer £23,000
An employee who was dismissed after she asked for a new chair has been awarded £23,000 in compensation by the tribunal. Where did the employer involved in this case go wrong?
RIGHT TO SEARCH - 27.04.2022
Unfair dismissal, illegal drugs and the right to search
An employee who was sacked after her employer searched her bag and found illegal drugs inside has lost her claim for unfair dismissal. What does the law say about conducting searches of employees and their personal possessions?
JURY SERVICE - 27.04.2022
Is there a right to full pay during jury service?
Apparently, two thirds of workers believe that they are entitled to receive full pay if they are called up for jury service. Are you really obliged to pay a member of staff their normal salary if they have to carry out this public duty?
SICKNESS ABSENCE - 27.04.2022
Working elsewhere during sickness absence
You’ve discovered that an employee who’s been off sick is working elsewhere for another employer. Does this give you automatic grounds for disciplinary action on the basis that their sickness absence is fraudulent?
PARENTAL LEAVE - 27.04.2022
Statutory parental bereavement leave
On 6 April 2022 Northern Ireland came into line with the rest of the UK by granting working parents there a right to statutory parental bereavement leave (SPBL) and pay. How much SPBL and pay are eligible employees entitled to receive?
CORONAVIRUS - 27.04.2022
Private coronavirus test options
Now that you can no longer obtain free lateral flow tests, you might be considering alternative testing options. One is to use an approved coronavirus test provider. How can you find one of these?
IR35 - 27.04.2022
Court of Appeal rules in contractors’ favour
A TV presenter won a high-profile Upper Tribunal case regarding her employment status under the IR35 rules. HMRC appealed against this, but the Court of Appeal has just rejected its argument. What happened?
HMRC - 26.04.2022
Don’t miss out on tax breaks
It’s an unfortunate fact that some of the most widely applicable tax reliefs are the most underclaimed. In an effort to encourage as many people as possible to claim these, HMRC has published a page giving a summary of the reliefs with a link for checking eligibility. What’s the full story?
REDUNDANCY - 26.04.2022
Voluntary redundancy can still be unfair
An employment tribunal erred when striking out an unfair dismissal claim made by an employee who volunteered for redundancy. What are the implications of this case?
MINIMUM WAGE - 26.04.2022
Can you avoid paying the higher minimum wage rates?
Taking account of the current national living and national minimum wage rates, it’s now much cheaper to recruit workers who are aged under 21. Are you entitled to favour younger workers to keep your costs down?
CORONAVIRUS - 26.04.2022
Extension of tax exemption for COVID-19 tests
If you’re paying for COVID-19 lateral flow tests for your staff now they are no longer free, employees can still benefit from a tax and NI exemption. What’s to know?
DISCIPLINARY PROCEEDINGS - 26.04.2022
Dealing with disciplinary issues during maternity leave
The fact that an employee is on maternity leave doesn’t mean you can’t take disciplinary action against her for misconduct matters that come to light during her absence. How should you tackle disciplinary issues during maternity leave?
SETTLEMENT AGREEMENTS - 26.04.2022
What claims can’t a settlement agreement settle?
The mass dismissals of employees by P&O Ferries in March 2022 has shone a light on the use of settlement agreements to settle potential and actual employment claims. However, what claims cannot be settled through a settlement agreement?
PAY - 25.04.2022
One-off cost of living pay rises
Following pressure from investors, Sainsbury’s has announced that it is increasing the wages for some workers for the second time in four months, as it will now pay the real Living Wage. If you decide to award an additional one-off pay increase what should you make clear to staff?
CORONAVIRUS - 21.04.2022
HMRC starts to assess grant overpayments
HMRC is currently writing to taxpayers that need to repay some or all of their self-employment income support scheme (SEISS) grants. What’s the full story and what action needs to be taken on receipt of such a letter?
COMPANY CARS - 20.04.2022
Paying more than HMRC’s advisory rates
HMRC recently updated its advisory fuel rates for company cars. However, the new rates don’t even come close to reflecting the current pump prices. What can you advise clients on how to pay employees a more realistic rate?
TAX-EFFICIENT INVESTMENTS - 20.04.2022
Advising clients on tax-efficient share investments
A client has enjoyed a windfall and wants to make some tax-efficient investments. They are asking for some advice on the tax breaks offered by investing in either enterprise investment scheme (EIS) or venture capital trust (VCT) shares. What are the key differences?
BUSINESS EXPENSES - 20.04.2022
Taxpayer wins tribunal case involving “duality of purpose”
One of your clients has a number of entries for legal fees paid from the business bank account. You are concerned that these may not be deductible if they relate to individuals, rather than the business. How might a recent Tribunal decision help here?
PROFIT EXTRACTION - 20.04.2022
How do the NI changes affect 2022/23 planning?
The 2022 Spring Statement increased the NI threshold, however the way this has been done is not straightforward. How does the change affect small company clients’ profit extraction planning for 2022/23?
TERMINATION PAYMENTS - 20.04.2022
Tax on termination payments
One of your clients has suffered a significant downturn in trade and they have taken the difficult decision to make a number of staff redundant. What are the key points regarding termination payments?
COMPANY PURCHASE OF OWN SHARES - 20.04.2022
HMRC clarifies its view on multiple completion buybacks
A purchase of own shares carried out with multiple completion stages is often a neat solution for a shareholder exit when cash flow is tight. But how could a recent change of view by HMRC affect your clients and what alternative could you suggest?
HOLIDAY PAY - 20.04.2022
Calculating holiday pay for zero-hours contracts
Several employees are on zero-hours contracts and you need to calculate what their holiday pay should have been over the Easter break. You’ve heard that you shouldn’t be using the 12.07% figure, so how should you be calculating it?
NATIONAL MINIMUM WAGE - 20.04.2022
Avoiding issues during an NMW inspection
For pay periods starting from 1 April 2022, the new national minimum wage (NMW) and national living wage (NLW) rates are in force. As compliance with the NMW/NLW is a key focus of HMRC inspections, what action do you need to take?
SICK PAY - 20.04.2022
New digital fit note
If one of your employees goes off sick, you may notice changes to the fit note that you receive from them. What’s changed and are the old fit notes still valid?
pensions - 20.04.2022
Check your auto-enrolment thresholds for 2022/23
The auto-enrolment thresholds for 2022/23 have remained frozen at their 2021/22 levels. If you base employees’ pension contributions on qualifying earnings then you need to check your software settings. What’s the issue?
INHERITANCE TAX - 20.04.2022
Using the pre-owned assets rule to save tax
The pre-owned assets rule was introduced to counter inheritance tax (IHT) avoidance schemes. The unusual nature of this IHT rule creates an opportunity for income tax savings. How can you take advantage of it?
FOREIGN EXCHANGE - 20.04.2022
Is a notional gain from exchange rate changes taxable?
The First-tier Tribunal has ruled on a case involving the sale of a holiday home in Switzerland. The dispute centred on how exchange rates affected the amount of gain taxable. Some important tax principles were covered in the ruling. What were they and how did they affect the outcome?
CAPITAL GAINS TAX - 20.04.2022
Are you personally liable to CGT on your company’s gains?
You’re buying a holiday home abroad. You’ve been advised by a local agent to own the property through a company. Your accountant has warned that this can trigger UK capital gains tax anti-avoidance rules. What are these and when do they apply?
HMRC - 20.04.2022
Are you ready for tax conditionality?
There’s a lack of awareness about the new “tax conditionality” checks which could block some businesses from trading. What do these checks involve and who do they apply to?
LOANS - 20.04.2022
Beware the loan-related job expenses trap
As a perk you offer your staff interest-free loans up to the tax-free limit. However, your bookkeeper says your travel expenses policy has caused the limit to be exceeded in some cases. What’s the problem with this and can it be avoided?
VAT - 20.04.2022
The limits of VAT cash accounting
The VAT cash accounting scheme is a boon for businesses, especially those whose customers are slow to pay. You must stop using it when your turnover exceeds the scheme limit, but there’s an exception. What is it and when does it apply?
SALARY PLANNING - 20.04.2022
The pros and cons of taking salary from a start-up
You’ve used your personal savings to fund a start-up. You expect it to take a year until it will be financially self-sufficient. You can’t see the point of taking a salary from the company until then, but might you be losing tax and other advantages?
SICKNESS ABSENCE - 14.04.2022
What to do when an employee calls in sick
When an employee calls in sick, their first point of contact will normally be their line manager. What are the key issues for managers to be aware of when dealing with the early stages of an employee’s sickness absence?
PERSONNEL MANAGEMENT - 14.04.2022
How to deal with workplace personality clashes
Staff don’t always get on and sometimes this causes personality clashes in the workplace. This can lead to employees refusing to work with each other, or even demanding that the other be dismissed. How should you tackle this problem?
DISMISSAL - 14.04.2022
New Code of Practice on fire and rehire
The government has announced that it’s going to implement a new statutory Code of Practice to clamp down on fire and rehire tactics. What can we expect?
MAKING TAX DIGITAL - 14.04.2022
New MTD milestone reached
HMRC’s Making Tax Digital (MTD) project entered another key implementation phase on 1 April 2022, bringing more traders within the requirements of MTD for VAT. How will VAT-registered businesses be affected by this?
INCOME TAX - 14.04.2022
Tax incentives for assisting Ukrainian refugees
The Russia-Ukraine conflict has displaced millions of people. The government has now announced details of a tax-exempt scheme aimed at those who wish to offer accommodation to refugees. What’s the full story?
CHEMICALS - 13.04.2022
Don’t rely on PPE
HSE statistics show that 22% of ill-health reports are due to occupational lung disease caused by exposure to chemicals. Why shouldn’t you rely on PPE, and what can you do to prevent incidents amongst your workers?
RISK CONTROL - 13.04.2022
What does “reasonably practicable” mean?
“So far as is reasonably practicable” (SFARP) is frequently mentioned in health and safety legislation, but what does it really mean and how can you demonstrate compliance with it?
CDM - 13.04.2022
Why was principal contractor sentenced?
Works were stopped and a principal contractor (PC) prosecuted after he had supervised unsafe excavation works which put employees in danger and rendered the neighbouring property unstable. What mistakes were made?
LONE WORKING - 13.04.2022
Don’t overlook lone worker risks
Working patterns changed dramatically due to the pandemic, so are you now faced with managing lone workers on a permanent basis. Use our updated lone worker risk assessment to identify those at risk and implement appropriate controls to protect them.
ENVIRONMENT - 13.04.2022
Farmer facing charges for damaging river
A farmer who bulldozed a riverside beauty spot to protect homes from flooding is now facing criminal charges. What happened and what you need to know to avoid making the same mistakes?
NOISE - 13.04.2022
How to reduce noise complaints
Noise complaints increased by over 50% during the first lockdown year in England. Why was this, what were the issues and what can you do to reduce your work-related noise impact on the surrounding environment?
FLEXIBLE WORKING - 13.04.2022
Hybrid working leaves workplaces exposed
With many businesses having chosen to make hybrid working the norm, there’s a risk that with a reduced number of staff at the traditional workplace, hazards will go unchecked. What are those hazards and how can you manage them?
SEX DISCRIMINATION - 13.04.2022
Personal hygiene discussion was sex discrimination
A woman who was asked to speak to a man about his personal hygiene has won her tribunal claim for sex discrimination and been awarded over £5,000. How did the employer involved in this case trip up?
CONTRACTS - 13.04.2022
Does a PILON change a resignation to a dismissal?
When an employee resigns you may want to terminate their employment early by exercising a contractual payment in lieu of notice (PILON) clause. When such a clause is invoked, does that change the employee’s resignation to a dismissal?
DISCIPLINARY HEARINGS - 13.04.2022
Statutory right to call witnesses to disciplinary hearings?
Having asked an employee to attend a disciplinary hearing, they’ve notified you that they intend to bring immediate colleagues as witnesses. Do they have a statutory right to do this and can you object?
DATA PROTECTION - 13.04.2022
Must you have a data protection officer?
You received a letter from an external company which is offering to act as your data protection officer (DPO). It states that all employers are required to have a DPO, regardless of their size. Is this correct?
RESIGNATIONS - 13.04.2022
Resignations: should you make them a better offer?
One of your employees has unexpectedly handed in their resignation. It turns out that their new employer has offered them a higher salary. As you’d really like to retain this employee, should you make them a better offer?
FIT NOTES - 13.04.2022
The new digital fit note
On 6 April 2022 a new digital version of the fit note was introduced. It’s been suggested that these documents will be easier to forge. So, can you ask a GP whether a fit note they’ve purportedly issued is genuine?
RACE DISCRIMINATION - 13.04.2022
No race discrimination for missing work on Diwali
A Hindu employee who attended Diwali celebrations instead of coming into work has lost his claims for race discrimination, unfair dismissal and harassment. Why did the tribunal find in the employer’s favour?
ABSENCE - 11.04.2022
Grounded - staff who fail to return on time
With flights cancelled, and ferry services disrupted at Dover, many travelling abroad for the Easter holidays have been faced with travel chaos. If employees are unable to report for work on their expected return date, what’s the position?
CORPORATION TAX - 07.04.2022
Maximising tax relief for joint venture losses
Your firm is starting a new business in league with other companies. You expect the joint venture company to make losses in the first year or two. What precautions should you take to ensure your firm gets its fair share of tax relief for them?
VAT - 07.04.2022
First-time exporter to the EU
Our subscriber has been asked to supply goods to a business in the EU. A sticking point to the deal is the post-Brexit VAT rules as the customer doesn’t want the hassle that goes with importing from the UK. Is there a way to resolve this?
NATIONAL INSURANCE - 07.04.2022
Some relief from the NI increase
The Chancellor’s Spring Statement announced cuts to NI to offset the earlier hike. How will the cuts impact on you and your business?
PROPERTY - 07.04.2022
Tackling capital allowance gaps for holiday lets
If you let residential accommodation and meet other conditions you can claim capital allowances (CAs) for the cost of furniture etc. But, if temporarily the conditions aren’t met, some CAs can be permanently lost. How can you avoid this?
EXPENSES - 07.04.2022
Business expense trap for companies and directors
During the pandemic your company was struggling for cash. To help, you didn’t claim reimbursement of business expenses you incurred. However, your company can now afford to pay you back. Will this cause a problem?
INCOME TAX - 07.04.2022
Tax planning for the basis period reform
If you’re self-employed the basis period reform can increase the profit on which you’re taxed for 2023/24. However, within the rules there’s room to make this more tax efficient. What steps can you take to achieve this?
EMPLOYMENT ALLOWANCE - 07.04.2022
EA increased to £5,000
As part of the Spring Statement 2022, the Chancellor announced an increase in the employment allowance (EA) from £4,000 to £5,000. But will your payroll software be ready?
DIRECTORS’ PAY - 07.04.2022
Optimal director shareholder’s salary 2022/23
With the Chancellor’s Spring Statement 2022 making changes to the previously published NI thresholds, what’s the optimal salary to pay a director shareholder in 2022/23?
NATIONAL INSURANCE - 07.04.2022
Using salary sacrifice to mitigate the 1.25% NI hike
With employees’ and employers’ NI contributions having increased by 1.25%, you’ve been asked to work out what the savings would be if the company implemented a salary sacrifice arrangement for the employees’ pension contributions. Where do you start?
PAYROLL YEAR-END - 07.04.2022
Correcting year-end errors
The 2021/22 payroll year is over, and you’ve submitted your final full payment submission (FPS). But you’ve realised that you didn’t indicate that it was the final submission and you’ve noticed an error on the payroll. How can you correct it?
INVESTIGATIONS - 07.04.2022
Checking your advisor hasn’t made mistakes
A tax Tribunal considered whether an accountant’s actions were careless. The case provided a blunt reminder of where the responsibilities lie. So, what was the outcome and how might this affect your choice of tax advisor?
VAT - 07.04.2022
VAT returns - getting it right
Brexit’s well in the rear-view mirror and HMRC will expect you to have got to grips with completing the nine relevant boxes on your VAT return. However, there are some common errors - how can you avoid them (and a possible enquiry)?
