2022 -
December
VAT - 21.12.2022
Passing on the cost of travel to customers
Your new bookkeeper says that VAT for travel expenses you pass on to your clients has been handled incorrectly. He says standard-rate VAT should have been added even though travel costs are zero-rated. Is he correct?
COMPENSATION - 21.12.2022
Was compensation payment taxable?
The First-tier Tribunal recently ruled on the tricky question of whether a payment to a former employee was earnings or, if not, whether it was taxable under the special rules for termination payments. What did the tribunal decide?
PROFIT EXTRACTION - 21.12.2022
Make more from the SEIS changes
Changes to the seed enterprise investment scheme (SEIS) are due to take effect from April 2023. If yours is a new or young company, how might you be able to take advantage of these changes to extract a tax-efficient income from your business?
TRAVEL EXPENSES - 21.12.2022
Tax-free mileage allowances for cycling
Our subscriber wants to use cyclists to deliver to her local customers. She’s been told she can pay them a tax and NI-free mileage allowance which could save her money. However, HMRC’s helpline doesn’t mention this. What’s the correct position?
PROPERTY - 21.12.2022
CGT on the sale of a former let property
You’re selling a property that until two years ago was let as holiday accommodation. Since then you, your family and friends have used it for the occasional weekend. Does the special lower rate of capital gains tax still apply to the gain you make?
IHT - 21.12.2022
Pension funds and a potential IHT trap
You could access your private pension savings but as you’re still working you don’t need the cash. However, according to a recent press report leaving your money untouched could expose your estate to extra inheritance tax (IHT). When might this be a problem?
SAFE SYSTEMS OF WORK - 20.12.2022
Demolition firm prosecuted after labourer crushed
A demolition firm and its director have been fined after a 20-year-old worker was crushed during a routine task. How did this happen and what controls should have been in place to prevent this?
DRIVING - 20.12.2022
Control the risk from driving
For most organisations driving at or for work is the riskiest activity you ask your staff to undertake. What are the risks, what is your responsibility and what should you put in place to keep your drivers safe?
ENVIRONMENT - 20.12.2022
Why throw away when you can repair?
There is a significant upswing in repairing goods rather than disposing of them. Can this trend be applied to your business, are there any legal responsibilities and what could be the benefits to your organisation?
TREEWORK - 20.12.2022
Dealing with damaged trees
Cold weather and high winds can cause damage to trees that if left untouched will become a risk to people and property. How should you safely reduce the hazard?
FIRE SAFETY - 20.12.2022
Safe use of evacuation chairs
Safe evacuation for all should be embedded within a building or organisation’s culture. But how do you know if you need to supply an evacuation chair for less mobile occupants, and are your staff aware of how to use it in an emergency?
ASBESTOS - 20.12.2022
Fine for haulier after workers exposed to asbestos
A logistics company has been fined after work at one of its sites exposed staff to asbestos. What were the failures and what should you do to keep your staff free from the risk of asbestos exposure during maintenance works?
CULTURE - 20.12.2022
How do staff view your safety ethic?
How you think you’re communicating the safety message and how staff are receiving that message can be very different. Why does it matter and how can it be improved?
MAKING TAX DIGITAL - 20.12.2022
MTD ITSA delayed
The government has announced a further delay to the introduction of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). Why and what’s the new timeframe?
SCOTTISH TAX - 16.12.2022
Scottish Budget approved - after furore!
The Scottish Budget for 2023/24 went ahead on 15 December but only after a furore in the Scottish Parliament about leaked documents relating to the proposed tax and other announcements. But were these good or bad news if you’re a Scottish taxpayer?
SHARE REMUNERATION - 14.12.2022
Shares: an alternative to paying cash bonuses?
Your client is a company that usually pays an annual cash bonus to its key employees. However, the CEO has asked whether using share-based remuneration would be better given the current economic outlook. What are the tax implications?
R&D - 14.12.2022
R&D changes for April 2023
If you have clients that claim relief for research and development expenditure, they will be affected by an announcement from the November 2022 Autumn Statement. What do you need to advise them?
PROPERTY LOSSES - 14.12.2022
Optimising loss relief for mixed property businesses
A client has both residential and non-residential properties which are let to third parties. You’re preparing the tax return and note that some properties made a profit and some were loss making. How can you ensure maximum relief for the property losses?
CAPITAL GAINS TAX - 14.12.2022
More people to be caught in CGT net
For once, the rumoured changes to capital gains tax (CGT) swirling before the Autumn Statement proved to have some truth to them. What was announced, and what will you and your clients need to be particularly careful about?
INCORPORATION - 14.12.2022
Is incorporation still worthwhile?
Following months of uncertainty, the Autumn Statement finally clarified what changes affecting small company owners’ profit extraction would be retained. What are the key points, and is incorporation still worthwhile for growing businesses?
DATA PROTECTION - 14.12.2022
Annual check of employee personal information
You should conduct an annual check to ensure that you hold accurate personal information for each employee. Which details should you confirm and what else should you make clear to your employees?
GRIEVANCES - 14.12.2022
The right to be accompanied at a grievance meeting
All employees have a statutory right to be accompanied by a workplace companion where they are invited to attend a disciplinary hearing. Does this right also apply during a grievance hearing?
HOLIDAYS - 14.12.2022
Carrying over holiday for a long-haul trip
An employee wants to carry their unused statutory holiday entitlement over into your next holiday year so that they can travel long-haul to visit family. What, if anything, can they carry over?
UNFAIR DISMISSAL - 14.12.2022
Heat of the moment dismissal costs £10,000
An employee who was told to hand over her keys and leave during a heated exchange has claimed unfair dismissal and been awarded £10,000. What should you do if a manager dismisses an employee in the heat of the moment?
STATUTORY RATES - 14.12.2022
2023/24 statutory rates
In April 2023 statutory sick pay (SSP), statutory maternity pay (SMP) and all of the family-related benefits, e.g. statutory paternity pay (SPP) and statutory shared parental pay (ShPP), will rise. What are the new rates?
CONTRACTS - 14.12.2022
Changes to contract terms before employment starts
A law firm which changed a new employee’s verbally agreed contract terms four days before his employment was due to commence has lost a claim for breach of contract at the tribunal. Why was there a breach?
REDUNDANCY - 14.12.2022
The £50,000 redundancy selection mistake
An employee who was marked down on her accuracy and performance in a redundancy scoring exercise and subsequently made redundant has been awarded £50,000 by the tribunal. Where did the employer go wrong?
VAT - 14.12.2022
New VAT penalty regime to start in January 2023
The often-criticised default surcharge regime is coming to an end, and a new system for late VAT returns and payments will be introduced from 1 January 2023. How will the migration to the new scheme be handled?
SECOND JOBS - 13.12.2022
Handling second job consent requests
The cost-of-living crisis is leading to a rise in the number of employees looking to take on a second job, or so-called “side hustle”. If an employee seeks your permission to undertake secondary employment, how should you handle their request?
WORKING TIME - 13.12.2022
What are night workers’ working time rights?
Specific statutory provisions set out the limits on working time for night workers, which are additional to the working time rules that apply to workers generally. What hours are night workers permitted to work?
EMPLOYMENT LAW REFORM - 13.12.2022
New flexible working on the way?
The government is pursuing its employment law reform programme by supporting two further Private Members’ Bills. What do they say?
REDUNDANCY - 13.12.2022
Right to a companion at redundancy meetings?
Workers have a statutory right to be accompanied at disciplinary and grievance hearings where they make a reasonable request. Does that right extend to individual consultation meetings during a redundancy process?
STATUTORY RATES - 13.12.2022
New statutory payment rates announced
The government has outlined its proposed 2023/24 statutory payment rates relating to time off work. What are the increases?
FLEXIBLE WORKING - 13.12.2022
Employee denied flexible working wins £36,000
An employee who was denied reduced hours and a flexible working arrangement on her return to work from maternity leave has been awarded £36,000 by the tribunal. Why so much?
SLIPS, TRIPS AND FALLS - 13.12.2022
Limit the chances of a fall injury
With the seasons changing and cold and wet weather in abundance, is there anything that you can do to reduce the likelihood of your staff or visitors suffering a slip, trip or fall on your premises?
VAT - 13.12.2022
Reclaiming VAT on expenses paid by employees
Your bookkeeper is preparing your latest VAT return which includes expenses paid by your employees, some of which include VAT. How much of this can you reclaim and what supporting evidence must you have?
UNFAIR DISMISSAL - 13.12.2022
Fairly dismissed for being “persistently late”
The Employment Appeal Tribunal has ruled that an employee who was sacked for being persistently late was fairly dismissed. Does this decision mean that you can safely sack any employee who is a poor timekeeper?
ILL HEALTH - 13.12.2022
Is a defibrillator worthwhile?
You may have a health and safety plan with hand sanitisers and PPE, etc. but does it include an automated external defibrillator (AED)? Are you prepared to save an employee from sudden cardiac arrest?
REMUNERATION PLANNING - 13.12.2022
Tax deduction for personally employing your partner
Our subscriber, a junior director, suggested to the board that they put their partners on the company payroll to save tax. They didn’t like the idea, so is there an alternative way to achieve the same goal?
PENSIONS - 13.12.2022
Avoiding the Christmas auto-enrolment problem
If you’ve taken on extra staff for the Christmas period or paid Christmas bonuses, you need to consider how auto-enrolment affects them and your business. What are the problems and how can you mitigate them?
STATUTORY PAYMENTS - 13.12.2022
2023/24 sick pay and parental leave rates
The government has now announced the benefits and leave rates for 2023/24. Importantly for payroll, this confirms the new statutory sick pay (SSP) and parental pay rates. What are the new figures?
SALARY SACRIFICE - 13.12.2022
National living wage increase and salary sacrifice
If your business operates a salary sacrifice scheme you need to consider whether it might be affected by the national living wage (NLW) increase in April 2023. What do you need to look out for?
CAPITAL GAINS TAX - 12.12.2022
Get ahead of the CGT exemption cut
One of the more significant tax changes announced in the Autumn Statement was the slashing of the capital gains tax (CGT) annual exemption. What’s changing and how can you make use of the higher exemption while it lasts?
VAT - 12.12.2022
VAT on staff benefits in kind
Providing your employees with benefits in kind is a supply for VAT purposes on which you might have to account for VAT. However, special rules and HMRC concessions mean this doesn’t apply in all circumstances. So when can you take advantage?
TAX PAYMENTS - 12.12.2022
Self-assessment deadlines looming
The deadline for submitting your self-assessment tax return online is 31 January. But if you expect to owe tax why should you consider submitting your return earlier?
EMPLOYMENT STATUS - 12.12.2022
Was building subcontractor an employee?
The Employment Appeal Tribunal (EAT) had to decide the effect of the construction industry scheme (CIS) on the employment status of an individual. What was the outcome and why is it significant for businesses in the construction sector?
PROFIT EXTRACTION - 12.12.2022
Alternative tax break for homeworking
The tax deductions that HMRC allows for expenses for directors and employees who work from home seem stingy, especially considering the huge hikes in energy costs. How can you obtain a more generous tax deduction?
EXPENSES - 12.12.2022
Are marketing costs tax deductible?
You’re putting on a customer event at which there will be food and drink. Your bookkeeper says that because the event is business entertainment the costs aren’t tax deductible. Is that correct?
PROFIT EXTRACTION - 12.12.2022
Salary v dividend after CT rate changes
The Autumn Statement included another swipe at company owner managers to add to the hit they’ll take when the corporation tax rate increases in April 2023. In light of this should you be rethinking your profit extraction strategy for next year?
DISCRIMINATION - 12.12.2022
Do employees have to disclose disabilities?
According to a study by BUPA, 43% of employees with a less visible disability haven’t disclosed it to their employer. Do employees have to disclose disabilities and what’s the legal position if they don’t?
GAS SAFETY - 12.12.2022
Give your gas appliances a safety check
The HSE is encouraging the use of Gas Safe registered engineers to check on all boilers this winter. Why is this important and could it save you money in the long run?
VEHICLE MOVEMENTS - 12.12.2022
Company fined after member of public crushed
A plant hire company has been fined after a member of the public was crushed at its site. What injuries were sustained, how did the accident occur and what controls should have been in place?
OCCUPATIONAL HEALTH - 12.12.2022
Mould - a workplace problem too?
There’s recently been extensive media coverage about mould causing harm to individuals. But how does it cause ill health and could it be a problem in a business setting too?
ELECTRICITY - 12.12.2022
Company fined after worker suffered electric shock
A construction company and two workers have been sentenced after a worker suffered an electric shock whilst working on a farm. What happened and what steps should have been taken to prevent such an injury?
WORKING AT HEIGHT - 12.12.2022
Cut roof working risks
It’s becoming increasingly common that safety failures during roof work lead to prosecution if the work is carried out unsafely. How can our permit to work - roof work help you to avoid ending up in a similar position?
BEHAVIOUR - 12.12.2022
Human errors and mistakes behind incidents
There is always a chain of events that lead up to the near miss or accident. How will understanding why staff behave in certain ways complement your engineering and management controls and minimise the risk of accidents?
ENVIRONMENT - 12.12.2022
Are diesel particulate filters the answer?
Air pollution is the number one cause for environmental concern. Along with obvious health implications it leads to global warming. Can diesel particulate filters help to reduce emissions thereby protecting both your workers and the environment?
MERGERS & ACQUISTIONS - 05.12.2022
Calculating the TUPE liability
If you’re negotiating to take over another business, you need to be aware of the potential TUPE liability so that this can be incorporated into the purchase price and contract. What information do you need to calculate it?
EXPENSES - 05.12.2022
Tax-free benefits to save on energy costs?
The government has a new energy bill relief scheme but you’re still worried that bills this winter will be huge. Are dishing out jumpers an option and could there even be a tax benefit to this approach?
ENTERTAINMENT - 05.12.2022
Tax implications of company director celebration
The business has just landed a lucrative new contract and the directors are planning a celebration. Is there a tax deduction available in such circumstances and if so what’s the most-efficient way to pay for it?
FINANCIAL MANAGEMENT - 05.12.2022
Why undertake customer profitability analysis?
Examining customer past profitability rather than revenues can better inform decision making and be a starting point for assessing future profitability. Where do you start?
PROPERTY - 05.12.2022
Rates revaluation - what’s the impact?
The next business rates revaluation comes into effect on 1 April 2023. How can you check what your business rates are likely to be from that date and are you able to challenge the rateable value?
STAFF COSTS - 05.12.2022
Preparing for the NLW increase
The national living wage is to increase by 9.7% in April 2023. Is there anything you should be doing now to prepare?
MANAGEMENT ACCOUNTS - 05.12.2022
Streamlining the month-end process
A 2022 survey found that the biggest pain point for finance leaders is meeting deadlines. What can you do to streamline the month-end process to close it down faster?
WORKING TIME - 05.12.2022
Can you force staff to work Twitter hours?
Elon Musk sent an email to Twitter staff in November requiring them to commit to work “long hours at high intensity” or leave the company. Could you force your staff to work long hours too?
NATIONAL INSURANCE - 02.12.2022
Coronavirus still causing HMRC issues
It transpires that HMRC’s system has not accepted some voluntary Class 2 NI payments for 2020/21, meaning entitlement to the state pension might be affected. Do you need to take action to resolve this?
