2022 -
November
RECRUITMENT - 30.11.2022
Christmas workers can save time with HMRC app
If you’re taking on seasonal workers, HMRC has a secure app which they can use to find out their personal tax information to pass on to you. How do they get hold of it?
CARS - 30.11.2022
Advisory fuel rates updated
The advisory electricity and fuel rates have been updated for 1 December 2022. What are the changes?
HOLIDAY PAY - 30.11.2022
Holiday pay for new starters
There are several myths about how to calculate the holiday entitlement of workers who join part way through a holiday leave year. How should you be calculating the holiday entitlement of new starters?
PROPERTY - 30.11.2022
Are you entitled to land remediation relief?
There are tax breaks for businesses that move to areas in need of a financial boost. But unless you’re nearby you probably won’t want to make the move. However, an alternative tax break might be on your doorstep. What is it?
VAT - 30.11.2022
Avoiding HMRC’s business aggregation trap
If you acquire or start a business which is not registered it might immediately come within the scope of VAT if you already own another business. When might this apply and what steps can you take to prevent it?
EXPENSES - 30.11.2022
New job expenses claim procedure under attack
Earlier this year HMRC introduced changes to the way that employees claim tax relief for job expenses. The legality of the changes was challenged in the High Court. What was the outcome and how might it affect your future expenses claims?
CAPITAL ALLOWANCES - 30.11.2022
Accelerate tax relief for plant and machinery
The annual investment allowance (AIA) allows you a tax deduction for the cost of equipment for the financial year in which it’s bought. But it doesn’t always apply, meaning tax relief takes decades. How can you slash this timeframe?
BENEFITS - 30.11.2022
When should you pay salary before benefits?
Usually, the total NI bill on benefits in kind is less than that for an equivalent amount of salary. However, in some circumstances the position is reversed. In what situation can this work in your favour when planning your remuneration?
PAYE - 30.11.2022
Rewarding an employee tax and NI free
One of our subscribers wants to reward an employee for his charitable work. He has been unable to find HMRC guidance on whether he should apply PAYE tax and NI to the payment. What’s the correct answer?
SETTLEMENT AGREEMENTS - 29.11.2022
Settlement agreements and unknown discrimination claims
Settlement agreements can be used to compromise various types of employment-related claim that have already arisen or are intimated by the employee. But can they be used to compromise unknown discrimination claims?
MINIMUM WAGE - 29.11.2022
2023 minimum wage rates
On 1 April 2023 all of the national minimum wage (NMW) and the national living wage (NLW) rates will rise. What are the new rates?
DISCIPLINARY PROCEEDINGS - 29.11.2022
How to handle a reluctant witness
You’re conducting a disciplinary investigation and have approached an employee asking them to provide a witness statement. However, they are extremely reluctant to do so. How should you handle the situation?
UNFAIR DISMISSAL - 29.11.2022
Reinstated on appeal - still unfair dismissal?
When an employee who’s been dismissed for misconduct successfully appeals against that decision, they are automatically reinstated. If they then say that they don’t want to return to work, can they still claim unfair dismissal?
BENEFITS - 29.11.2022
Avoid abuse of staff discount schemes
Many employers are offering better staff discount schemes to help their employees with the cost-of-living crisis. For example, IKEA has increased its staff discount to 30%. However, these schemes can be open to abuse. How can you stop this?
CONTRACTS - 29.11.2022
Ban on exclusivity clauses extended
On 5 December 2022 new legislation came into force which widened the ban on the use of exclusivity clauses. The ban previously only applied to zero-hours contracts. Which contracts are now covered?
EMPLOYERS’ LIABILITY - 29.11.2022
Staying safe this party season
After a two-year break due to the pandemic, office Christmas parties are back in full swing this year. What are the key considerations to ensure you stay on the right side of the law?
SELF ASSESSMENT - 25.11.2022
Time to pay arrangements - now much easier to agree
Agreeing a time to pay (TTP) arrangement used to involve calling HMRC and convincing it that you were struggling to pay. Agreement was often made grudgingly. This stance has softened in recent years, and there may be no need to make a call at all. What do you need to know?
WORKPLACE - 24.11.2022
Prepare for winter
Although this autumn has been mild, with December just around the corner, cold weather is never far away. How should you prepare for the workplace risks?
WORKPLACE - 24.11.2022
Are your staff hand hygienic?
Hand hygiene is always an important topic but becomes even more relevant in winter with the arrival of more germs, which can be spread by touch. What should you implement to ensure that you reduce the risk of contamination in your workplace?
MENTAL HEALTH - 24.11.2022
How to deal with workplace stress
Stress and mental health is the number one cause of lost time in the workplace. You know that managing the risk helps to avoid sickness absences and loss of productivity, so what can you do to decrease pressure on your business?
LONE WORKING - 24.11.2022
The business case for lone working solutions
Lone working presents many challenges for businesses. You know that managing the risk helps to avoid unexpected fines, costs and losses, but is it worth investing in technical solutions?
ENVIRONMENT - 24.11.2022
Construction - a filthy industry?
The construction industry is second only to road transport for large particle air pollution in the UK and is responsible for 18% of contamination, rising to 30% in London. Why is this a concern and what steps can you take to lessen the impact of your construction business?
ENFORCEMENT - 24.11.2022
Food firm appeals against “excessive” fine
A food firm has successfully appealed against its sentence following prosecution for breaches of fire safety law. What originally occurred and why was the appeal successful?
INSURANCE - 24.11.2022
Furniture retailer fined for insurance breach
A Bedford furniture retailer has been fined for not having the right insurance. What went wrong for them, and what do you need to have in place to make sure you are fully covered in any situation?
CYBERCRIME - 24.11.2022
Warning about phishing attacks
HMRC has issued a warning to business owners about the dangers of scam emails and text messages. What can you do to avoid being caught out?
ENTERTAINMENT - 24.11.2022
How much VAT can you claim on your Christmas party?
After two years without an office Christmas party, you’ve decided to hold a big festive meal which will be attended by all your staff, their spouses and some key suppliers and customers. How much input tax can you claim on the event?
PROPERTY - 24.11.2022
Buying property in a different legal entity
Your landlord has given you the chance to buy the freehold of your trading premises at a reduced price but will charge VAT on the deal. Should you buy the property in a different legal entity and, if so, what VAT issues does this create?
CONSTRUCTION - 24.11.2022
Does reverse charge apply to subcontractor materials?
One of our subscribers is a building contractor and uses subcontractors that are registered for VAT, so the reverse charge applies to their services. The subscriber has been charged VAT on materials supplied by two subcontractors, but is this correct?
CHARITIES - 24.11.2022
Can your charity save VAT on its rent?
Your charity has always paid VAT on rental payments. This is an extra cost because you cannot fully claim input tax on your expenses. Can you ask the landlord to stop charging you VAT and what about past payments you have made?
RECRUITMENT - 24.11.2022
Can you dismiss someone who can’t prove right to work?
If it comes to light that an employee may not have the right to work in the UK, you could be committing a civil or criminal offence if you continue to employ them. Can you dismiss them and, if so, what’s the potentially fair reason for dismissal?
REDUNDANCY - 24.11.2022
Implementing redundancy for remote workers
If you need to implement a redundancy programme and some staff are remote workers, what should you do to ensure you’re still complying with your obligations relating to fair selection, consultation and searching for alternative employment?
CONTRACTS - 24.11.2022
Protecting your intellectual property rights
If you need to protect your business against the misuse of intellectual property rights by current or former employees, it’s worth including an appropriate clause in employment contracts. What’s the legal position here?
MINIMUM WAGE - 24.11.2022
Annual minimum wage increases
The government has announced the increases to the national living wage and national minimum wage to take effect from 1 April 2023. What’s to know?
HOLIDAYS - 17.11.2022
Managing the extra bank holiday
To celebrate the King’s coronation, there will be a UK-wide additional bank holiday on Monday 8 May 2023. This is likely to be a peak time for competing holiday requests. How can you handle these?
RECRUITMENT - 17.11.2022
Can you reject them for being overqualified?
You’ve advertised a job role and received applications from several people who are clearly overqualified. Is it safe to reject a job applicant because they have more qualifications, skills and/or experience than are needed for a job role?
DATA PROTECTION - 17.11.2022
£4.4 million fine after employee opened phishing email
An employer has been fined £4.4 million by the Information Commissioner’s Office after one of its employees opened a phishing email that led to a data breach affecting its employees. What should you do following this decision?
SICKNESS ABSENCE - 17.11.2022
Sickness absence and telephone contact
One of your employees has been off work due to sickness for over a week and you’d like to find out how they are doing. Are you entitled to contact them by phone and if so what if your calls go unanswered?
MATERNITY - 17.11.2022
Promoted but now she’s pregnant
You recently promoted a female employee who’s now told you that she’s pregnant. You suspect that she will be taking her full maternity leave entitlement. As this will cause difficulties for your business, can you withdraw the promotion?
HARASSMENT - 17.11.2022
Text sent after midnight wasn’t harassment
An employee who received his shift rota for the following week in a text message sent after midnight used this as grounds to issue a claim for harassment. However, he’s now lost his claim at the tribunal. Why was he unsuccessful?
UNFAIR DISMISSAL - 17.11.2022
Threatening a colleague led to unfair dismissal
An employee who threatened to “rip off” a colleague’s beard when he found out that somebody had used his personal mug has won his claim for unfair dismissal at the tribunal. Where did the employer go wrong?
APPRAISALS - 16.11.2022
How to conduct an appraisal
Appraisals are an important element of performance management processes, and with many employees now working from home for some or all of their time, a good appraisal system is key. What should you think about when conducting an appraisal?
MATERNITY - 16.11.2022
Can an employee work during the maternity pay period?
During their statutory maternity pay (SMP) period, an employee might decide to return to work, either for you or for another employer. How does that return to work affect their entitlement to SMP?
DISCRIMINATION - 16.11.2022
Can staff speak out on climate change?
With climate change now being high on many people’s priority list, if an employee speaks out on it in a work context without your permission, what protection might they have?
COST OF LIVING CRISIS - 16.11.2022
Cost-of-living payments and employee hardship funds
As the cost-of-living crisis continues to bite, two options for offering assistance to employees, if financially viable for you, are awarding a one-off cost-of-living payment or setting up a hardship fund. What do these involve?
KPIS - 16.11.2022
What payroll metrics should you be tracking?
The efficient management of payroll is critical for any business. By measuring a handful of key payroll metrics, you can identify recurring issues which will help reduce employee and HMRC queries. What key performance indicators (KPIs) should you be looking at?
HMRC - 16.11.2022
HMRC late payment interest rates rise again
HMRC has increased its interest rates for late payments, including PAYE/NI, following the Bank of England interest rate hike to 3% - the highest for three decades. What are the new figures?
RTI - 16.11.2022
RTI reporting when paying staff before Christmas
In its October 2022 Employer Bulletin, HMRC reminded employers of the date to report on the full payment submission (FPS). Should you report the date staff are actually paid or their regular payment date?
EMPLOYEE GIFTS - 15.11.2022
Tax free employee gifts?
One of your clients is the director of a growing company. Their sales manager has faced extremely challenging personal circumstances, and the director wants to give them a substantial Christmas gift. The director believes there will be no tax or NI if they buy this personally, rather than via the company. Is this correct?
RENTAL INCOME - 15.11.2022
First-time landlord: what can be claimed in year one?
One of your clients became a landlord in 2021/22. She is preparing the accounts for the rental business, and has included a lot of items, including repairs, she says were necessary in preparing the property for letting. What is tax deductible?
INHERITANCE TAX - 15.11.2022
Post-death sales: claiming relief for a fall in value
A client has been left a significant legacy. This is awaiting probate, but he needs cash to meet his rising household expenses, and notices the value of some assets have fallen. What are his options, keeping inheritance tax (IHT) in mind?
COMPANY LAW - 15.11.2022
How to protect assets in an unlimited company?
A new client owns an unlimited company trading in a relatively high-risk industry. Your client is concerned about asset protection and has asked for your advice. What are the key points with unlimited companies and how should you advise?
EMPLOYEE SHARE SCHEMES - 15.11.2022
Operating a company share option plan
A client is looking to set up a share option plan for their employees and is particularly interested in finding out more about the company share option plan (CSOP) following an announcement that it is to be expanded. What are the advantages of using a CSOP, and when is it most appropriate?
SEIS - 15.11.2022
Seed EIS to be expanded
While most of the mini-Budget announcements were axed, a welcome reform to the seed enterprise investment scheme (SEIS) is here to stay. What’s happening and when will the changes take place?
MANAGED SERVICE COMPANIES - 15.11.2022
Managed service companies: mitigate your clients’ risk
Your client provides the services of themselves, or other individuals, via a limited company. You have some reservations about the arrangement and believe the managed service company rules (MSC) might apply. What are these, and how can the risk be mitigated?
SECONDARY EMPLOYMENT - 15.11.2022
Cost of living crisis: secondary employment considerations
Apparently, 47% of working adults in the UK are considering taking on secondary employment to cope with the cost of living crisis. Why is it worth raising this possibility with your own employees and what else should you do?
WORKPLACE TEMPERATURE - 15.11.2022
Keeping staff warm in the energy crisis
With concerns about rising energy costs you may be considering leaving the heating off in the coming months. Is this feasible and what options do you have to keep staff warm?
LOANS - 15.11.2022
Can paying interest on your director’s loan account save tax?
Your director’s loan account is substantially in the red and likely to stay that way for a while. As this is a benefit in kind you’ll have to pay tax and your company, NI. Both can be avoided if you pay interest on the debt but would it be tax efficient to do so?
DISCRIMINATION - 15.11.2022
Is supporting a football club a philosophical belief?
A lifelong football fan has taken his employer to the tribunal claiming that support of his team is a philosophical belief worthy of protection under the Equality Act 2010. What did the tribunal decide?
TRAVEL EXPENSES - 15.11.2022
Home-to-work travel costs during a strike
During the recent rail strikes several of your employees made alternative travel arrangements to commute to work. To recognise their efforts you want to reimburse their extra travel costs. How should you account for any tax and NI on this?
DISCIPLINARY PROCEEDINGS - 15.11.2022
Disciplinary proceedings: when must records be destroyed?
The Acas Code of Practice on Disciplinary and Grievance Procedures advises employers to keep a written record of all disciplinary cases that they deal with. When must these written records be destroyed?
VAT - 15.11.2022
Bad debt relief or credit note - which is better?
You’re worried that one of your customers is about to go under owing you a lot of money. You’ve agreed to write off part of the debt if the balance is paid immediately. How soon can you get a refund of the VAT you’ve paid on the bad debt?
CHEMICALS - 15.11.2022
Are safety data sheets a risk assessment?
You’ve heard of safety data sheets (SDS) and chemical risk assessments. But are they the same thing and how should you manage chemicals used by your business to avoid accidents, ill health and enforcement action?
REDUNDANCY - 15.11.2022
How to sack without following procedure
You’ll have seen that Twitter is reportedly making staff redundant. If you want to do something similar in a hurry how can you avoid tribunal claims?
PENSIONS - 14.11.2022
Tax-efficient pension drawdown
You’ve reached the age when you can access your pension savings. Your financial advisor has explained the options available to you, but how much tax will you have to pay on each one?
CARS - 14.11.2022
Does contribution save company car tax?
By personally paying part of the cost of your company car you can reduce the benefit in kind on which you’ll be taxed and your company will pay NI. But will these savings be enough to outweigh the cost of your contribution?
VAT - 14.11.2022
Prepare for the new penalty rules
HMRC’s new penalty system for late VAT returns and payments will take effect from January 2023. What do you need to know about the new rules?
STAMP DUTY LAND TAX - 14.11.2022
When is a residence not a residence for SDLT?
In a high-profile case the First-tier Tribunal (FTT) considered the topical question of the stamp duty land tax (SDLT) rate applicable to the purchase of land and buildings used for mixed purposes. What did the FTT decide?
VAT - 14.11.2022
How to accelerate new business VAT reclaim
You’ve formed a company to develop a new business unconnected with your existing firm. Even if it’s viable it won’t generate income for months or even more than a year. Can you register and reclaim the VAT on development costs?
LOANS - 14.11.2022
Is loan interest tax deductible?
Our subscriber borrowed money to provide funds for his company. He’s claimed a tax deduction for the interest paid on the loan, but HMRC has started an enquiry saying that because the company is not “close” no tax relief is due. Is this correct?
CAPITAL ALLOWANCES - 14.11.2022
Tax deductions for personally owned equipment
If you use personally owned equipment for your job you may be entitled to a capital allowances tax deduction. It’s only allowed if the equipment is “necessary” for your job, but who decides what’s necessary and what’s not?
PERSONNEL MANAGEMENT - 07.11.2022
Managing employees with gambling problems
Problem gambling is often called a “hidden addiction” and it can go unnoticed for years. However, there are at least two million people at risk of it in the UK. How can you support one of your employees if they disclose a gambling problem?
UNFAIR DISMISSAL - 07.11.2022
Unfairly dismissed for liking Facebook post
The tribunal has ruled that an employee who was sacked for liking and sharing a Facebook post which criticised her boss was unfairly dismissed. Where did the employer go wrong?
RECRUITMENT - 07.11.2022
Terminating recruitment discussions costs £23,000
An employer who terminated recruitment discussions when it found out about a job applicant’s sickness absence history from her previous employer has been ordered to pay £23,000 in compensation. Why did the tribunal make this award?
REDUNDANCY - 07.11.2022
Redundancy selection based on fixed-term contracts
One of your employees is on a fixed-term contract (FTC) which will shortly expire. Can you automatically select this employee for redundancy over other employees on the basis that their FTC is going to end soon anyway?
