2022 -
May
PROPERTY - 31.05.2022
Tax deductions for new landlords
Our subscriber is preparing accounts for the first year of his property rental business during which he spent a lot of money getting the properties ready for letting. His question is how much of the expenditure is tax deductible?
PAYROLL - 31.05.2022
New guidance on tips and gratuities
HMRC has issued new guidance to employers about the tax and NI payable on tips. It explains the position where customers tip electronically. What’s the full story?
PROFIT EXTRACTION - 31.05.2022
Unlawful dividends - what’s the tax cost?
Your company’s accounts for its last financial year have been prepared in draft. They show that you and your fellow director shareholders received more dividends than permitted by company law. This has tax consequences. What’s the most tax-efficient way to manage them?
VAT - 31.05.2022
Reclaiming hidden VAT on supplies
You’re planning improvements to your business premises. You’ll be using individual contractors for the work as they gave the best quotes. None of them is VAT registered which could mean you paying hidden VAT. Why and how can you reclaim it?
INHERITANCE TAX - 31.05.2022
More than double the tax-free part of your estate
15 years ago the inheritance tax nil rate band was made transferable. This doubled the tax-free amount for many estates. With a little planning some estates could do even better. Might yours be one of these?
BENEFITS IN KIND - 31.05.2022
How to avoid tax on benefits by “making good”
In 2021/22 your company provided you with benefits in kind on which you’ve paid tax through PAYE. It’s possible to reverse the tax and NI consequences by making good the benefit. What’s involved?
HMRC ASSESSMENTS - 31.05.2022
Were HMRC’s assessments issued in time?
The First-tier Tribunal recently ruled on a long running battle over the validity of tax assessments. A key issue was whether the taxpayer’s tardiness gave HMRC the right to extend the time limits for issuing them. What was the outcome?
CAPITAL ALLOWANCES - 31.05.2022
Capital allowances reform coming?
The government has published a policy paper inviting views on a number of potential changes to the capital allowances regime. What ideas are being considered?
HOLDOVER RELIEF - 31.05.2022
Avoid hidden traps with gift holdover relief
Holdover relief can provide valuable shelter from capital gains tax, but some of the lesser-known aspects of the rules can result in unexpected tax bills for your client. What do you need to know to avoid these traps?
CORPORATION TAX - 31.05.2022
Planning ahead for corporation tax changes
It’s now less than twelve months until major reforms to the corporation tax (CT) regime take effect on 1 April 2023. Why do clients need to consider these now, and how should you advise them to prepare effectively?
PLASTIC PACKAGING TAX - 31.05.2022
How do clients comply with the PPT?
Since 1 April 2022, there’s the new plastic packaging tax to consider. Which of your clients are likely to be affected, and what do they need to do to comply with the new reporting requirements?
BASIS PERIODS - 31.05.2022
Basis period reform: why clients need to act now
The first impact of basis period reform starts in 2023/24. But why is it important to start planning for it now, and could some options close if you don’t resolve your client strategy sooner rather than later?
EMPLOYEE EXPENSES - 31.05.2022
Helping clients navigate employee expenses
Your client would like to know more about claiming employment-related expenses, and when a deduction may be available for employee travel and subsistence in particular. What key things should you be advising them on?
CHALLENGING A VAT ASSESSMENT - 31.05.2022
How to challenge a VAT assessment
A client has received a VAT assessment for underpaid VAT going back four years. It is described as a “best judgment” assessment but how can you challenge HMRC if you think it’s wrong?
CAPITAL GAINS TAX - 31.05.2022
HMRC takes aim at CGT relief claimants
The lifetime limit for business asset disposal relief (BADR) fell to just £1 million back in 2020. Now, HMRC is sending letters to individuals who claimed the relief in 2020/21, warning that they may have underpaid tax. What’s going on?
BUILDINGS - 31.05.2022
Will you be impacted by the Building Safety Act?
The Building Safety Bill received Royal Assent on 28 April 2022 and will come into force some time in 2023. What buildings does this legislation apply to and what could it mean for your company?
WORKING AT HEIGHT - 31.05.2022
Food firm fined after fall from ladder
A jam and preserve manufacturer has been prosecuted after a worker sustained multiple fractures after falling from a ladder. How did this incident occur and how can you reduce the chances of a similar event happening in your workplace?
SEASONAL WORKERS - 31.05.2022
Reducing the risks to seasonal fruit pickers
The fruit picking season is with us once again. What are the ergonomic hazards that your workers face and what can you do to limit any issues such as musculoskeletal disorders (MSDs) that may arise?
SAFE SYSTEMS OF WORK - 31.05.2022
Engineering firm fined over fatality
An engineering firm has been prosecuted after a worker was crushed to death whilst working under a 1,000 tonne press. What were the failings and what should have been done to prevent such a tragedy?
WATER - 31.05.2022
Cut the risks of working near water
It’s not just those in the construction industry that work near water, so if your teams are out and about this summer, follow a few simple steps to keep them safe. What are the hazards and what controls can be implemented to prevent an emergency?
RISK MANAGEMENT - 31.05.2022
How to conduct a performance review
Performance reviews indicate whether your health and safety system is effective in managing risk and protecting people. But it can be difficult to know what key indicators to include and how often it should be reviewed. Where should you start?
ENVIRONMENT - 31.05.2022
Ozone - a bigger problem than first thought?
New research reveals that ozone may be playing a more significant role in climate change than originally thought. Why is this, is there anything you can do to reduce the impact and are there any business benefits in doing so?
TRANSPORT - 30.05.2022
Rail strike implications for employers
National rail strikes are threatening to cause widespread disruption over the summer period. What are an employee’s obligations to get to work during a strike?
BUSINESS SUPPORT - 27.05.2022
Do you need help to grow?
Help to Grow is an initiative providing two schemes to smaller businesses with a view to helping growth. If you want to take advantage, what do you need?
CORONAVIRUS - 26.05.2022
Taxman chases overpaid SEISS grants
HMRC is writing to taxpayers it believes should repay some of the self-employment income support scheme grant they received. Might this affect you and what should you do if you receive a letter?
DATA PROTECTION - 26.05.2022
Employee sending work emails to personal account
You suspect that an employee is forwarding work emails to their personal email account and you’re concerned about the risks to your business. Should you disable the employee’s work email account immediately or do something else?
INCOME TAX - 26.05.2022
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?
COMPANY LAW - 26.05.2022
Company name re-use ended in jail
In the wake of liquidation, company directors can face personal liability and disqualification. As two directors found out recently, there is also an automatic prohibition on them running another company with a similar name. Why the separate ban and what happened to these directors?
TRAINING - 26.05.2022
Poor training led to serious hand injury
An apprentice suffered a serious hand injury after being left unsupervised following insufficient training. What were the implications for his employer and what can you do to prevent a similar accident?
CAPITAL GAINS TAX - 26.05.2022
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?
RELIGIOUS DISCRIMINATION - 26.05.2022
£26,000 compensation for not working on Passover
A Jewish employee who was sacked after he failed to attend work on the religious festival of Passover has won his claim for indirect discrimination and been awarded over £26,000. Where did the employer go wrong?
CONTRACTS - 26.05.2022
Ban on exclusivity clauses set to widen
The government has confirmed that it’s to extend the ban on exclusivity clauses in zero- hours contracts to low-income workers. How is the ban set to widen?
DISMISSAL - 26.05.2022
Automatic unfair dismissals and COVID-19
The Employment Appeal Tribunal has held that an employee was fairly dismissed after he refused to attend work because of COVID-19 concerns. Why was this?
RECRUITMENT - 26.05.2022
Employing university students over the summer
With staffing shortages currently cutting across many industries, one option to cover the busy summer period is to employ one or more university students. What points do you need to consider before temporarily employing one?
REDUNDANCY - 26.05.2022
Can you make a sick employee redundant?
If you need to make redundancies, you must follow a fair redundancy process, incorporating consultation, fair selection and considering alternative employment. However, what happens if an affected employee is absent due to long-term sickness?
EMPLOYMENT LAW REFORM - 26.05.2022
Employment Bill to fall away?
The Queen’s Speech 2022 contained no Employment Bill for the new Parliamentary session. What are the implications?
DISCIPLINARY PROCEEDINGS - 26.05.2022
Can an appeal rectify earlier procedural defects?
When an employee appeals against a disciplinary sanction, you should arrange an appeal hearing. If you made procedural errors when imposing the original sanction, is the appeal hearing an opportunity for you to correct those errors?
SICKNESS ABSENCE - 26.05.2022
Sickness absence at all time high
It’s been reported that sickness absence rates are at an all-time high. What’s the main reason for this and how can you tackle fraudulent sickness absence, including amongst homeworkers?
HARASSMENT - 26.05.2022
Being a “good girl” is harassment
An employee who was often called a “good girl” by her ex-manager has won her sexual harassment claim. However, the ex-manager didn’t attend the hearing to give evidence. Can former employees be forced to attend the tribunal?
REDUNDANCY PAY - 26.05.2022
How do pay cuts affect statutory redundancy pay?
Many employers negotiate staff pay cuts to avoid making redundancies. If redundancies later become inevitable, is a statutory redundancy payment (SRP) calculated using the reduced rate of pay or the employee’s original salary?
PATERNITY RIGHTS - 26.05.2022
Can you ask an employee to defer paternity leave?
An employee has submitted a paternity leave request form, indicating that they intend to take their full two weeks’ leave entitlement in one go. However, their chosen dates don’t suit you. Can you ask them to defer their paternity leave?
HOMEWORKING - 26.05.2022
Can you revoke permanent homeworking?
In May 2022 it was reported that civil service staff have been ordered back to their workplaces, thus ending their homeworking arrangements. If an employee’s homeworking arrangement is permanent, can it be revoked?
MISCONDUCT - 26.05.2022
Accessing porn during working hours
According to media reports a male MP was seen watching porn in the House of Commons by a colleague in April 2022. If one of your employees was observed doing the same thing, would this automatically be gross misconduct?
CONSTRUCTIVE DISMISSAL - 26.05.2022
Constructive dismissal, grievances and the last straw
When an employee raises a grievance, the outcome decision may include some form of resolution. A ruling from the Employment Appeal Tribunal (EAT) highlights why resolutions should be actioned properly. What do you need to know?
LOSSES - 26.05.2022
Moscow Stock Exchange - tax implications
Until April 2022, the Moscow Stock Exchange (MOEX) was treated by HMRC as a “recognised stock exchange”. This status has been revoked in the wake of the invasion of Ukraine, but what tax repercussions does this have?
PAY & CONDITIONS - 24.05.2022
Easy bonus payments?
EasyJet is to offer new and existing cabin crew a £1,000 bonus at the end of the summer holiday season. What should you consider if proposing to introduce a similar one-off recognition/retention bonus?
HMRC - 24.05.2022
HMRC warns against sharing sign in details
HMRC has updated its online services terms and conditions. Buried within the guidance is a warning not to share personal login information with an accountant or agent. What are the risks?
PENSIONS - 19.05.2022
Minimising tax on inherited pensions
Our subscriber’s father died a few years ago leaving his pension savings to his wife. She recently passed away and now our subscriber is the beneficiary of her pension savings plus those of her father. What tax will she have to pay on these?
TAX CREDITS - 19.05.2022
Time to renew your tax credits
HMRC is currently issuing tax credit renewal packs. There are two versions of the form which require different responses. What action is required to renew your claim?
VAT - 19.05.2022
VAT on staff travel
During routine records checks HMRC first looks for mistakes which businesses commonly make. One target area is the VAT treatment of travel expenses. What should you be checking to ensure your VAT returns are correct?
PAYROLL - 19.05.2022
Beware the tax and NI cost of temporary workers
Summer is on the way and for many businesses that means taking on temporary workers. Some may stay for the season while others just a week or two. What tax tips and traps should you be alert to?
COMPANY TAX - 19.05.2022
Writing off a loan to a company
A few years ago you lent your son money to help get his new business off the ground. It’s now established but he can’t afford to repay you. You decided to waive the loan but are there any tax consequences you need to be aware of?
PROFIT EXTRACTION - 19.05.2022
Can you profit from the sale of an old company vehicle?
You recently replaced one of your company’s vans and a friend has now offered cash for the old one. Can you personally make a little extra money from the sale by transferring the van to yourself first?
PROPERTY - 19.05.2022
Renting accommodation to your business
You recently moved to a new home which has land and outbuildings suitable for commercial use. You’re going to relocate your company there and charge it rent as a tax-efficient way of extracting profit. Will it have to pay stamp duty land tax (SDLT)?
LEGISLATION - 19.05.2022
Which type of law is likely to impact you?
There are two types of law that shape the health and safety management of your business, but do you know the differences between them, and which is likely to have the bigger impact on your organisation?
ENVIRONMENT - 19.05.2022
Sewage discharge consultation - possible impacts
The Department for Environment, Food and Rural Affairs (Defra) recently held a consultation on a storm overflow discharge reduction plan. What’s the purpose of this and will it have an impact on your operations?
WORKING AT HEIGHT - 19.05.2022
HSE updates advice on ladders
The HSE has recently issued a safety bulletin offering guidance on how, when and where to use ladders and stepladders. Is this good news for your business?
CHEMICALS - 19.05.2022
Chemical company fined for burns injury
A chemical company has been fined following burns to a worker’s hand that resulted from the ignition of flammable vapours. How did this happen and what lessons can be learnt to prevent a similar injury occurring at your organisation?
TRAINING - 19.05.2022
What are the benefits of training young persons?
With schools, colleges and universities soon breaking up, you may be considering employing a young person who may have little or no work experience. What is your duty of care to look after them and why is training them in health and safety so important for your business?
ELECTRICAL - 19.05.2022
Avoidable cable strike at substation
Two contractors have been fined after an employee suffered a damaged retina when their excavator hit an underground cable causing multiple explosions. What went wrong and what controls can you implement to prevent accidents like this in your workplace?
WORKING AT HEIGHT - 19.05.2022
Rescue plans for workers caught in harnesses
Working at height is a high-risk activity and is generally well controlled with rescue plans, but do you have a robust process in place for execution of your rescue plan if an incident occurs?
STATUTORY PAYMENTS - 19.05.2022
Shared parental leave and pay
One of your employees who is currently on maternity leave has asked if she can now share this leave with her partner, also an employee. This is the first time you’ve received such a request. How much pay is the partner entitled to and what paperwork do you need to see?
PAYROLL ACCOUNTING - 19.05.2022
Reconciliation of payroll control accounts
It’s good practice for the payroll control accounts in a company’s general ledger to be regularly reconciled. If you’ve been tasked with this reconciliation, how should you go about it?
HMRC - 19.05.2022
PAYE late payment interest rate rise
On 5 May 2022 the Bank of England increased the base rate from 0.75% to 1%. As HMRC interest rates are linked to the Bank of England base rate, these will also increase. What are the new rates for PAYE late payments and repayments?
HMRC - 18.05.2022
New version of 64-8 launched
HMRC has issued a new Form 64-8 for authorising a representative to manage someone’s tax affairs. What does this mean for people that already have a tax agent?
RECRUITMENT - 16.05.2022
Gender-neutral job ads
According to a study of 230 job ads covering a range of roles posted by FTSE 100 companies, only 5% were completely gender neutral in their wording. Why and how should you ensure your job ads are fully gender neutral?
BANK HOLIDAYS - 12.05.2022
Bank holidays and sickness absence
Thursday 2 and Friday 3 June 2022 are both bank holidays, with the latter being an additional one this year. If an employee calls in sick on either of these days, are they entitled to compensatory holiday or not?
GROSS MISCONDUCT - 12.05.2022
Unfairly dismissed over a piece of chewing gum!
A postman of 25 years, who was sacked for gross misconduct after he stuck a piece of chewing gum on a customer’s property, has won his claim for unfair dismissal. Why did Royal Mail lose this case?
TRIBUNAL PROCEDURE - 12.05.2022
When can the tribunal order reinstatement?
The employment tribunal has extensive powers, one of which is to order the reinstatement of an employee who has been unfairly or constructively dismissed. How can you prevent this type of order being made?
GRIEVANCES - 12.05.2022
Grievances raised during exit interviews
It’s good practice to conduct exit interviews for all departing employees. But what if an employee who’s leaving raises a verbal complaint during an exit interview - should you trigger your grievance procedure?
DISABILITY DISCRIMINATION - 12.05.2022
Hot desking results in disability discrimination claim
The tribunal has found that managers at the House of Commons discriminated against an employee who had placed a note on her desk asking colleagues not to use it in her absence. Where did the managers go wrong?
UNFAIR DISMISSAL - 12.05.2022
Can a volunteer for redundancy claim unfair dismissal?
In some instances an employee will ask to be made redundant or they may volunteer for redundancy if you indicate that compulsory redundancies are on the cards. Can volunteers for redundancy still claim unfair dismissal?
PAY & CONDITIONS - 12.05.2022
A one-off bonus to help with the cost of living
To help curb the impact of rising living costs, one employer paid its employees a one-off bonus of £900 in April. If you decide to make a similar one-off bonus payment, what should you make clear to staff?
APPRENTICES - 12.05.2022
Managing the end of an apprenticeship
When an apprenticeship is coming to an end, you may have a permanent role that you can offer them, or alternatively you may now need to terminate their employment. What action should you take in either scenario?
RECRUITMENT - 12.05.2022
Can you withdraw a job offer for business reasons?
If, for business reasons, you need to withdraw a job offer before employment is due to start, can you legally do so and are there any potential repercussions you need to be aware of?
RECRUITMENT - 12.05.2022
Right to work checks for Ukrainian nationals
Ukrainian nationals who have been granted a visa under one of the new schemes have the right to work in the UK. How do you evidence their right to work?
TIME OFF - 12.05.2022
Time off to give evidence as a witness in court
There’s no statutory right for an employee to take time off work to appear before a criminal or civil court or an employment tribunal to give witness evidence. What should you do if presented with a request for time off to give evidence?
TRIBUNALS - 12.05.2022
New website for court and tribunal judgments
The government has launched a new free "find case law" website for users to access court and tribunal judgments in England and Wales. What’s online so far?
STATUTORY PAYMENTS - 12.05.2022
Parental bereavement pay
On 6 April 2022 parents in Northern Ireland were finally given the same right as those in England, Wales and Scotland to take paid time off following the death of their child. How do you calculate their statutory pay?
TAX CODES - 12.05.2022
Urge your employees to check their tax codes
If your employees were asked to work at home during the pandemic, they were entitled to claim a £6 per week tax relief to cover their costs. The problem is that if HMRC has now adjusted their tax code for this claim, they may be underpaying PAYE for 2022/23. How can you help?
HMRC - 12.05.2022
Check your payment references
To manage cash flow, you’ve delayed paying your PAYE/NI bill. In this situation, it’s really important to ensure that you’re using the correct payment reference. How can you make sure it’s the right one?
OFF-PAYROLL WORKING - 12.05.2022
Off-payroll working - is your business still exempt?
You’re concerned that your business may have breached the small company limits and now has to comply with the off-payroll working rules for the first time. Is this the case and, if so, what do you need to do?
CAPITAL ALLOWANCES - 12.05.2022
Capital allowances to be reformed?
The super deduction and temporary increase in the annual investment allowance are both set to end in March 2023. The government is now asking for views on how the capital allowances system can be reformed and improved. What’s on the cards?
BANKING - 11.05.2022
How to prepare for the annual bank meeting
You’ve got a meeting with the new bank relationship manager coming up. What will be covered at this meeting and what should you be doing in advance to prepare for it?
VAT - 11.05.2022
Relief on VAT record keeping
Digital invoices are quickly becoming the norm and that has led to less reliance on physical documents for VAT claims. But there are situations when you might not have the evidence needed, so can VAT still be reclaimed?
VAT - 11.05.2022
Moving to monthly VAT returns to ease cash flow
Your company usually gets quarterly VAT repayments but having to wait three months to reclaim VAT is making cash flow a little tight. Is it possible to move to monthly VAT returns to get the cash in quicker?
SPREADSHEETS - 11.05.2022
Rounding budgeted numbers to the nearest 1,000
Using exact numbers to the nearest £1 in budgets and forecasts can make more work for you when it comes to explaining miniscule variances. There are ways in Excel to round the numbers to the nearest 100 or 1,000. How do you do it?
