2022 -
June
RECRUITMENT - 29.06.2022
Offering work to people arriving from Ukraine
If you want to offer employment to nationals who have arrived in the UK from Ukraine, the government is advising you to get in touch. How can you offer work to them?
DISABILITY DISCRIMINATION - 29.06.2022
Employee with long COVID symptoms was disabled
A Scottish employment tribunal has ruled that an employee with long COVID was disabled for the purposes of the Equality Act 2010. What can we take from this case?
DATA PROTECTION - 29.06.2022
Data protection reform proposals
The government has announced its proposals for reforming UK data protection laws through a new Data Reform Bill. What can we expect to change?
SETTLEMENT AGREEMENTS - 29.06.2022
How to hold without prejudice or pre-termination meetings
Where you wish to propose a settlement agreement to terminate employment on agreed terms, you should hold either a without prejudice or pre-termination negotiation meeting with the employee. What are the key issues to cover?
DISMISSAL - 29.06.2022
Acas Code of Practice applied to sham redundancy
The Employment Appeal Tribunal has held that a tribunal was right to award a 25% uplift on an employee’s compensation for her employer’s failure to follow the Acas Code of Practice on Disciplinary and Grievance Procedures on redundancy. Why was this?
MATERNITY LEAVE - 29.06.2022
Rights on returning to work from maternity leave
When an employee returns to work from maternity leave, they are generally entitled to come back to the same job in which they were employed before their absence. However, the law is a bit more complicated than that. What are the employee’s rights?
IMPORTS - 28.06.2022
VAT estimates on imports are fine
If you import goods, you should be using postponed VAT accounting to declare VAT on your returns. But what happens if you cannot download your monthly VAT statements from HMRC’s website?
CARS - 28.06.2022
Avoiding traps with input tax on leased cars
Your business leases cars for its employees, paying VAT on the monthly charges. Are you correctly claiming input tax and what happens if you return the vehicle before the end of the agreement or, alternatively, receive a rebate of your rental payments?
INTEREST INCOME - 28.06.2022
VAT on interest income?
Rising rates mean that your business can now earn interest income on surplus funds in a savings or deposit account. Does this money have potential VAT implications that you will need to consider?
DEREGISTRATION - 28.06.2022
Avoid reregistering following deregistration?
One of our subscribers deregistered from VAT two months ago because of an expectation of reduced turnover. But they are concerned that they must re-register immediately because sales have still exceeded £85,000. Are their concerns justified?
EXPENSES - 28.06.2022
Rewarding subcontractors: VAT on business expenses
You’re keen to retain the services of several highly productive subcontractors, so you want to give them incentives to keep them on-board. What payments and expenses can you provide without missing out on VAT recovery?
MAKING TAX DIGITAL - 28.06.2022
Avoid MTD non-compliance penalties
Making Tax Digital for VAT is now compulsory for all registered businesses, and you could get fixed or variable penalties for not complying with the regulations. What can you do to ensure that you tick all the relevant boxes?
MAKING TAX DIGITAL - 28.06.2022
HMRC’s latest on MTD ITSA
HMRC has finally set out its new timetable and criteria for joining its Making Tax Digital pilot. When will you be able to sign up and should you bother?
VAT - 28.06.2022
Reclaiming VAT on cars, personalised plates and clothing
The First-tier Tribunal (FTT) recently considered a firm’s VAT claim for the purchase of two cars, a personalised number plate and clothing. Its ruling neatly sums up the conditions that must be met for such claims to be successful. What was the outcome?
BENEFITS IN KIND - 28.06.2022
Can “making good” benefits reduce your tax bill?
In 2021/22 your company provided you with benefits in kind on which you’ve been taxed. It’s possible to reverse this by making good the benefit. But will this save you and your company tax in the long run?
EXPENSES - 28.06.2022
Uncover extra tax relief on your travel expenses
Your firm’s policy is to pay the HMRC-approved mileage rates to staff who use their own vehicles for business journeys. However, HMRC’s definition of business mileage can mean that an additional tax deduction can be claimed. When might this apply?
ENQUIRIES - 28.06.2022
HMRC’s rights to information about your staff
Our subscriber received a letter from HMRC about one of her former employees. It wants to know about his working hours, holiday dates and other absences. Is it OK for her to divulge this information to HMRC?
INHERITANCE TAX - 28.06.2022
IHT-efficient business incorporations
You and your partners are transferring your business to a company. This has tax pros and cons. One major drawback is the loss of inheritance tax business property relief (BPR). How can you prevent this and retain the other benefits of transferring the business?
DISMISSAL - 28.06.2022
Fairly dismissed following informal discussion
The tribunal has ruled that a short-serving employee who was sacked after an informal meeting was fairly dismissed. How was this a fair dismissal when employees shouldn’t be sacked following an informal process?
CORONAVIRUS - 28.06.2022
Is long Covid now automatically a disability?
In June 2022 it was reported an employee has been the first to successfully argue that long Covid is a disability and this is a “landmark tribunal ruling”. Does this mean that all employees who have long Covid are now automatically disabled?
GRIEVANCES - 28.06.2022
Can you reject a verbal complaint?
One of your employees has made a serious verbal complaint. However, the Acas Code of Practice says that all grievances “should be put in writing”. Does this mean you can ignore this complaint?
PART-TIMERS - 28.06.2022
Part-time workers and comparable full-time workers
The law states that you can’t treat a part-timer worker “any less favourably than a comparable full-time worker”. Must the full-time comparator be someone you actually employ or can the part timer use a hypothetical comparator?
TRIBUNAL PROCEEDINGS - 28.06.2022
Why was employer awarded tribunal costs?
An employer who successfully argued that an employee should pay its costs of defending a claim for unlawful deduction from wages has been awarded £3,200 by the tribunal. Why did the tribunal make this award?
FIT NOTES - 28.06.2022
GPs no longer have to sign fit notes
On 1 July 2022 key changes were made to the fit note regime which means that an employee may be signed off work by someone who is not their GP. Which health professionals can now issue fit notes?
PAY RISES - 28.06.2022
Refusing a pay rise request was discrimination
In a 2022 case, an employee’s request for a pay rise had been refused. She alleged that this was an act of discrimination and won her tribunal claim. Where did the employer involved in this case go wrong?
P11DS - 28.06.2022
Problems with HMRC’s online P11Ds
Employers must ensure that their P11Ds are filed by 6 July 2022. However, a problem has emerged with HMRC’s online forms. What’s going on?
NEW AND EXPECTANT MOTHERS - 28.06.2022
New guidance for mums
The HSE has updated its guidance to employers regarding new and expectant mothers. What does this include and what must you do?
WORKPLACE - 28.06.2022
Jewson fined for life-changing injury
A builders’ merchant has been fined following crush injuries to two of its workers, leaving one with life-changing injuries. What managerial mistakes were behind this incident?
ANIMALS - 28.06.2022
Protect workers from the rise in dog attacks
Dog bite injuries have doubled in 15 years with more than 10,000 people a year requiring hospital treatment. Not all of these are work related but if your staff are likely to come across dogs in their daily tasks what can you do to protect them?
RISK ASSESSMENT - 28.06.2022
What caused fatality at seafood company?
A worker was run over and killed by a fork-lift truck at a seafood processing facility. How did this happen and could it have been prevented? What measures should you implement to avoid such tragedies?
FATIGUE MANAGEMENT - 28.06.2022
Reducing fatigue risks
Fatigue is an important safety subject, and one which needs to be proactively managed and monitored by businesses and their staff as it contributes to many fatalities. What can you do to help your staff lower the risk?
CULTURE - 28.06.2022
Don’t blame but seek to learn
Rather than blaming individuals for causing or contributing to accidents a more accurate account of events can be gathered if you seek to learn what went wrong to prevent reoccurrence. What is meant by blame and how can you avoid it in your workplace?
ENVIRONMENT - 28.06.2022
MPs demand reduction in demolition work
There is a growing call by MPs for the construction industry to stop knocking down old buildings but to refurbish them instead to lessen the impact on the environment. Why is this and can you contribute to the call for change in a positive way?
PENALTIES - 24.06.2022
Penalty interest rate set to rise again
The Bank of England raised its base rate again in June, and HMRC has confirmed the penalty rate of interest on late-paid tax will follow suit. What will the new rate be and when will it start to apply?
DEDUCTIONS - 21.06.2022
Is it illegal to pay employees late?
If you end up paying your employees’ wages late due to a mistake with the payroll or your business has a temporary cash-flow problem, could you face legal action?
EXPENSES & BENEFITS - 21.06.2022
2021/22 P11D filing deadline fast approaching
The deadline for submitting the 2021/22 P11D forms is 6 July 2022, and it usually falls to the payroll team to complete these. What do you need to be aware of this year?
CIS - 21.06.2022
CIS change for employer payment summary
If your company makes claims for construction industry scheme (CIS) deductions then you need to be aware that HMRC has introduced an additional field on the employer payment summary (EPS). What’s changed?
DISCRIMINATION - 20.06.2022
Is ethical veganism protected?
An employment tribunal has ruled that an employee’s ethical veganism wasn’t a protected philosophical belief under the Equality Act 2010. Why?
CAPITAL ALLOWANCES - 16.06.2022
Super-deduction guidance published
HMRC has published guidance relating to the super-deduction, which is available to clients for expenditure incurred before 31 March 2023. What are the highlights?
SETTLEMENTS LEGISLATION - 16.06.2022
Avoiding issues when splitting income between spouses
Due to the forthcoming increase in the main corporation tax rate, a client intends to issue his spouse with 50% of the share capital in his company via a new issue of non-voting B shares. Is there a settlements legislation issue here?
DOUBLE TAXATION TREATIES - 16.06.2022
How to minimise double taxation
One of your new clients is internationally mobile. They are concerned that paying tax in several countries may mean they are overpaying. What are the key things clients should know about double tax treaties, and what implications do they have for UK tax returns?
SALARY SACRIFICE - 16.06.2022
How to help employees with the NI increase
Your client has several employees that have been affected by the recent NI rate increase. They have asked you for any creative ideas to help increase their pay packages. Why might salary sacrifice be an unexpected solution?
HOLDOVER RELIEF - 16.06.2022
Gift of company shares - avoid an unexpected trap
Two of your director shareholder clients are about to make a gift of shares and want to claim gift holdover relief, but how can two seemingly similar gifts produce two very different outcomes?
INHERITANCE TAX - 16.06.2022
Planning opportunities for non-domiciled clients
The concept of domicile status was recently the subject of a media storm. A non-domiciled client has now asked if you can help them minimise their UK inheritance tax (IHT) exposure as they will shortly become deemed UK-domiciled. What could you advise?
VAT - 16.06.2022
Are clients supplying more than land to their tenants?
Many of your clients sublet part of their trading premises to earn income, especially as more employees are now homeworking. Rental income is exempt from VAT as a land supply, but could additional services provided mean your clients have a VAT issue?
MAKING TAX DIGITAL - 15.06.2022
MTD ITSA pilot to become more accessible in July
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will begin to become compulsory from 2024. However, HMRC is encouraging taxpayers to sign up early via the pilot scheme. Now its announced that from July 2022, the pilot will be expanded, allowing more individuals to join. Who will be eligible?
UNFAIR DISMISSAL - 14.06.2022
Unfairly dismissed over 300 sick days
The tribunal has ruled that an employee who was sacked for taking over 300 sick days was unfairly dismissed. When you’re managing sickness absence, what must be disregarded from sick leave calculations?
MATERNITY LEAVE - 14.06.2022
Early return to work from maternity leave
You recently received an early return to work from maternity leave notification. However, the employee has now said that she wishes to withdraw her notice and take her full maternity leave entitlement. Can she do this?
DISCIPLINARY PROCEEDINGS - 14.06.2022
Workplace companion can’t make the disciplinary hearing
An employee has the right to be accompanied by a workplace companion to a disciplinary hearing. But what’s the situation if their companion can’t make the hearing date that you’ve set. Must you reschedule?
NOTICE PERIODS - 14.06.2022
What’s the statutory minimum notice period?
You’re free to set an employee’s notice period which will depend on the needs of your business. Whatever you decide must be clearly stated in the employment contract, but what’s the minimum notice period you can set?
REDUNDANCY - 14.06.2022
Redundancy and suitable alternative employment
By law you must offer any suitable alternative employment that you have available to a redundant employee. When does this statutory duty cease - when you serve notice of redundancy or the date the employee’s employment terminates?
SEX DISCRIMINATION - 14.06.2022
Employee asked to work Saturdays wins £25,000
An employee who was asked to work on Saturdays, which could be required under the terms of her employment contract, has been awarded over £25,000 by the tribunal. Where the employer involved go wrong?
TRIBUNAL PROCEDURE - 14.06.2022
Early conciliation numbers must be on tribunal claims
In a recent case the employee had submitted a tribunal claim form but sent her Acas early conciliation (EC) certificate number via a separate email later. This led to her claim being rejected. What do you need to know?
RACE DISCRIMINATION - 14.06.2022
Is it discriminatory to not recruit someone with an accent?
There’s a diverse range of regional, national and international accents and dialects in the UK, some of them not always easy to understand. Does it constitute discrimination to reject a job applicant due to their accent?
TIME OFF - 14.06.2022
Paid menstrual leave?
Spain intends to become the first country in Europe to give workers a right to paid menstrual leave. Could we see something similar being introduced in the UK?
YOUNG WORKERS - 14.06.2022
Working hours for young workers
Young workers aged 16 and 17 have additional working time rights to protect them because of their age. If you want to employ a young worker, what do you need to know about the rules relating to their permitted working hours?
COMPANY TAX - 14.06.2022
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?
VAT - 14.06.2022
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?
MACHINERY - 14.06.2022
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?
INHERITANCE TAX - 14.06.2022
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?
PROPERTY - 14.06.2022
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)?
DISABILITY DISCRIMINATION - 14.06.2022
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?
WORKPLACE - 14.06.2022
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?
WORKING AT HEIGHT - 13.06.2022
HSE alert on mast climbing platforms
The HSE has issued an urgent safety alert regarding the use of mast climbing work platforms (MCWPs). What’s the problem and what action should be taken?
RISK ASSESSMENT - 13.06.2022
Driver injured by falling pallets
Two companies have been fined for mistakes resulting in a neck fracture to a driver when pallets were being unloaded from his lorry. Why did this happen and what can be done to prevent a similar occurence in your workplace?
TRANSPORT - 13.06.2022
The role of a dangerous goods safety adviser
You’ve heard about the carriage of dangerous goods legislation, but aren’t sure if you need to appoint a responsible person when transporting dangerous goods and if so, what training they may need. What do you need to know?
VIBRATION - 13.06.2022
Council fined over HAVS
A council has been fined after failing to address an improvement notice issued after a hand-arm vibration syndrome (HAVS) report. What action should you take if you receive an enforcement notice to avoid a similar outcome?
BEHAVIOUR - 13.06.2022
Improve behaviour, cut accidents
There have been many improvements in legislative controls in the workplace, so why are accidents still occurring? Many of these are down to human behaviour and doing the wrong thing at the wrong time. How can you change this?
NOISE - 13.06.2022
Is exposure to noise inevitable?
A noisy workplace is something that many blue collar workers seem to put up with as they think it is just part of the job and hearing loss is inevitable. Why should you try to control noise and what steps should an individual take to protect themselves?
ENVIRONMENT - 13.06.2022
Can you save money on compressed air?
Compressed air generation is an energy guzzler, increasing electricity use resulting in higher bills. What can be done to lessen consumption without affecting productivity?
DRESS & APPEARANCE - 13.06.2022
Should you relax your tattoo policy?
Virgin Atlantic is to allow its cabin crew and other uniformed customer-facing staff to display their tattoos by reversing its ban on visible tattoos, the first UK airline to do so. If you have a dress policy which also bans visible tattoos, is it time to consider relaxing it?
ASBESTOS - 13.06.2022
Directors pay the price for serious asbestos failings
The directors of a construction business were prosecuted after their company disturbed asbestos during the refurbishment of retail premises. What went wrong, and what penalties did the directors face?
RESIDENCE - 09.06.2022
Ukraine: the effect on statutory residence
HMRC has updated its guidance to confirm that non-UK resident individuals returning to the UK from Russia, Belarus or Ukraine can disregard UK days due to exceptional circumstances. How might this affect the tax position?
CAPITAL ALLOWANCES - 09.06.2022
Is there a special time limit on AIA claims?
Unless the annual investment allowance (AIA) applies it can take well over a decade for your business to receive tax relief for the purchase of equipment. If you overlook the AIA can you go back and claim it later?
PAYE RETURNS - 09.06.2022
P11Ds - what’s new for 2021/22?
HMRC recently published its latest guidance regarding the reporting of employee benefits and expenses for 2021/22. As an employer, what do you need to know?
BENEFITS - 09.06.2022
Is your summer staff party tax and NI free?
You’re thinking of holding your first ever summer event for your employees. You’re not sure what form it will take but one factor in your decision is the cost and therefore the tax and NI position. What do HMRC’s rules say about this?
CAPITAL GAINS TAX - 09.06.2022
Business asset disposal relief company exit trap
Our subscriber recently sold his shares back to her company. She made a capital gain from this which qualified for business asset disposal relief (BADR). The company has now offered her a one-off freelance job. Might this cause her to lose the BADR?
