2023 -
February
ADMINISTRATION - 27.02.2023
HMRC: don’t forget to report changes
HMRC has launched a publicity campaign to encourage businesses to promptly notify any changes to their business details. What are the key VAT issues for you to check and how can you make changes?
INPUT TAX - 27.02.2023
Input tax recovery: key conditions
You might think that you can always claim input tax if a purchase invoice relates to your business, and you have paid the supplier who has charged you VAT. But this is not always the case. What other issues must you consider to avoid VAT problems?
PENALTIES - 27.02.2023
Will a time-to-pay agreement help?
A new penalty regime for late VAT payments started on 1 January 2023. Can you avoid a penalty by agreeing a time-to-pay (TTP) arrangement with HMRC and what happens if you break the agreement?
CAPITAL GOODS SCHEME - 27.02.2023
VAT recovery and the capital goods scheme
One of our subscribers is the treasurer of their local golf club. The club plans to spend £500,000 plus VAT on major improvement works to its clubhouse. How much input tax can it claim and how will the capital goods scheme affect the calculations?
MIXED SUPPLIES - 27.02.2023
Correctly charging VAT on mixed supplies?
Your business sells packages of goods. The items are subject to different rates of tax if they are sold individually, so how should you account for VAT when you sell them for a single price in a bundle, i.e. a mixed supply?
ERRORS - 27.02.2023
How should you correct errors made on past returns?
You’ve discovered that your business has overclaimed input tax on your returns for the last five years. How should you deal with these underpayments and how will HMRC’s new online form help you to make an accurate submission?
WORKPLACE - 27.02.2023
Company fined after HGV driver killed
A wine and drinks supplier has been fined after a visiting HGV driver was hit by a forklift truck and later died. What happened, what were the failures that led to the incident and what can you do to prevent a similar occurence?
FLAMMABLE ATMOSPHERES - 27.02.2023
Know your ignition sources
One third of the fire triangle is dedicated to ignition sources, but it’s not just naked flames you need to worry about. What other sources of ignition are there, how can you control them and what else should you consider?
ENVIRONMENT - 27.02.2023
The end for carbon offsets?
A long investigation into the controversial world of carbon offsets shows that 90% of those approved by the world’s leading provider are “worthless”. So are offsets to be avoided completely?
WORKPLACE - 27.02.2023
Keep workers safe during Ramadan
During the holy month of Ramadan some of your employees could be fasting. What can you do to support them and ensure the safety of all workers?
CONSTRUCTION - 27.02.2023
Lack of equipment led to unsafe improvisation
A building firm has been fined for a catalogue of health and safety failings that included two builders being lifted into the air by a raised telehandler bucket. What duties were contravened and what should have been in place?
ILL HEALTH - 27.02.2023
Workplace exposure limits explained
What are workplace exposure limits (WELs) and why do they have different reference periods? How you can use the information to protect your staff from over exposure to hazardous substances?
COST OF LIVING CRISIS - 27.02.2023
Should you offer salary advances?
According to a new survey by Indeed Flex, one third of workers would prefer to be paid weekly, rather than fortnightly or monthly, to enable them to budget better during the cost-of-living crisis. If you don’t want to change your pay frequency, is there another option?
VAT - 24.02.2023
When does reverse charge apply to overseas supplies?
Reverse charge accounting is a way of reducing domestic VAT fraud. As well as construction services, it applies to certain overseas transactions. How can you help clients apply the rules correctly for the supplies they make and receive?
OFF-PAYROLL WORKING - 24.02.2023
Advising clients that work through an intermediary
Your client engages workers who provide their services through intermediaries, such as personal service companies. After an announcement in September 2022 that the off-payroll working rules were to be repealed, followed by a swift U-turn, what does your client now need to do in order to ensure that they comply with the rules?
ATED - 24.02.2023
Don’t forget to revalue property
The annual tax on enveloped dwellings (ATED) is now ten years old. But as well as the annual uplift in the charges, 2023/24 is also a “revaluation year”. What does this mean for clients?
CHILD BENEFIT - 24.02.2023
HICBC catching more clients
With the £50,000 threshold now stealthily catching even basic rate taxpayers, some of your clients may fall within the claws of the high income child benefit charge (HICBC) for the first time. What are the risks and how can they be mitigated?
INHERITANCE TAX - 24.02.2023
Claiming relief when family home’s been sold
Your client’s mother has recently died. During her final years she lived in a care home, and sold her property to pay the fees. Your client believes they have lost the right to claim the residence nil rate band as a result. What can you advise?
SEED EIS - 24.02.2023
Improving medium term tax efficiency
Your client made a successful seed enterprise investment scheme investment four years ago. She wants to sell her shares to make further efficient investments, but the company can’t afford to give up that much working capital. Can you suggest a tax-efficient solution?
CARS - 24.02.2023
Is car buying through the company more efficient?
Your client is the owner manager of a small company. They want to buy a new car. What are the different ways of purchasing it, and is it more tax efficient to buy through the business or pay personally?
INCORPORATION - 24.02.2023
Incorporating tax efficiently in 2023
Your client is a successful sole trader. In order to enjoy more flexibility over his income tax and NI, he is looking to incorporate the business with his civil partner as a second director shareholder. What will be the most efficient method?
EXPENSES - 24.02.2023
Income tax relief for employment expenses
In its 100th Employer Bulletin HMRC is encouraging employers to let employees know where there are work-related expenses and allowances that they can claim tax relief on. What qualifies and what’s the best way to claim the relief?
NATIONAL INSURANCE - 24.02.2023
How to correct NI errors
One of the payroll settings for an employee was incorrect which ended up with them paying more NI than they should have. How should you correct this error?
YEAR END - 24.02.2023
Preparing for payroll year end
For payroll professionals the calendar is always busy, however never more so than at the payroll year end. There are multiple tasks to think of and deadlines to hit. What are the important actions you need to take?
DISCRIMINATION - 23.02.2023
EAT ruling on discrimination due to marriage
Marriage is a protected characteristic under the Equality Act 2010. Does this protection apply to those who are treated unfavourably because of their marital status or because they are married to a certain person?
BANK HOLIDAYS - 23.02.2023
Bank holiday sickness absence
During April and May 2023 there are five bank holidays. If an employee goes off sick over one or more bank holidays, will they be entitled to compensatory holiday?
SEX DISCRIMINATION - 23.02.2023
Asking staff to share the toilet was sex discrimination
The Employment Appeal Tribunal has ruled that an employer who offered female staff the use of a cubicle in the men’s toilets when the women’s toilets were unavailable committed an act of sex discrimination. Why did it reach this decision?
UNFAIR DISMISSAL - 23.02.2023
Unfairly dismissed for calling in sick yet again!
An employee has won her claim for unfair dismissal and been awarded over £3,400 by the tribunal after she was sacked for calling in sick yet again on a Monday morning. Why did the employer lose?
PENSIONS - 23.02.2023
Who can opt in to your auto-enrolment pension?
You must offer a workplace pension scheme and auto-enrol staff who meet certain criteria. However, some staff who aren’t eligible for auto-enrolment still have a right to opt in to your pension scheme. Who can do this?
GRIEVANCES - 23.02.2023
Grievances: handling suspected false allegations
An employee has raised a grievance which you strongly suspect includes false allegations. Are you obliged to consider their complaint and could you take disciplinary action later if it turns out that you were correct?
CARS - 22.02.2023
Why pool vehicles are not a perk but a necessity
Much is made of the tax savings achieved by convincing HMRC that a car or van used by employees for work is a pool vehicle. In practice, it means jumping through hoops to prevent a tax bill where there ought not to be one. What’s involved?
CHILD BENEFIT - 22.02.2023
Don’t spring the child benefit tax trap
You recently received a bonus that will take your income over £50,000 for this tax year and so trigger the high income child benefit charge (HICBC). What steps can you take to reduce it?
IHT - 22.02.2023
Tackling higher IHT bills and falling values
The Financial Times recently raised concerns about how delays in granting probate are increasing the inheritance tax (IHT) bill for some estates. It’s asking for changes in this year’s Budget to counter this. What’s the full story?
NATIONAL INSURANCE - 22.02.2023
Date for pension boost imminent
To enhance your state pension entitlement, you have a limited time to plug any gaps in your NI contributions record going back to 2006. When is the deadline, and how can you check for and correct any shortfall?
BENEFITS - 22.02.2023
Are directors’ trivial benefits contractual earnings?
Our subscriber asked HMRC if low value benefits given to directors every year were covered by the “trivial benefits” tax exemption. It said that benefits provided regularly may count as contractual earnings and might not be exempt. Is this correct?
SELF-ASSESSMENT - 22.02.2023
Self-assessment payment deadline
A critical deadline for unpaid self-assessment tax is just a couple of weeks away. What are the consequences of missing it and how can you mitigate them?
HEALTH & SAFETY - 22.02.2023
No working toilet left staff short
A construction firm failed to provide adequate welfare facilities for its workers who were carrying out renovation work at a residential property. Just how bad was the breach?
REDUNDANCY - 20.02.2023
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?
VEHICLE MOVEMENTS - 20.02.2023
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?
VAT - 20.02.2023
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?
UNFAIR DISMISSAL - 20.02.2023
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?
PROFIT EXTRACTION - 20.02.2023
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?
COMPANY LAW - 20.02.2023
The perils of family businesses
Many couples set up in business together not expecting to split up; how can they navigate this tricky time without destroying a business they’ve grafted to build? A recent case details the challenges.
PROFIT EXTRACTION - 20.02.2023
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?
OCCUPATIONAL HEALTH - 20.02.2023
Could extended desk time lead to health problems?
According to a new study on health, wellbeing and habits, one fifth of employees are sitting for more than eight hours per day. Could this potentially cause health problems and if so, what can you do about it?
CHILDCARE - 17.02.2023
Don’t miss out on Tax-Free Childcare
HMRC has reported that over 400,000 families used the Tax-Free Childcare (TFC) scheme in December. Now it’s urging families to check their eligibility so they don’t miss out. What’s the full story?
PART-TIME WORKING - 16.02.2023
How to implement a job share arrangement
One flexible working option is to enable two (or more) employees to share the same full-time role, often referred to as a job share. What are the legal and practical considerations?
GRIEVANCES - 16.02.2023
Responding to retraction of employee’s grievance
Where an employee has raised a grievance, they’re still entitled to subsequently withdraw it. However, it’s best not to just take their word for it. How should you respond when an employee says they want to retract their grievance?
PAYROLL - 16.02.2023
What do itemised pay statements need to include?
You’re required to give each employee and worker a written itemised pay statement, or payslip, at or before the time at which any payment of wages or salary is made to them. What particulars must it contain?
MARRIAGE ALLOWANCE - 14.02.2023
HMRC sends Valentine’s message to couples
HMRC is urging married couples/civil partners to check whether they are entitled to claim the marriage allowance. What is it, are you eligible and how do you claim it?
PERSONAL RELATIONSHIPS - 13.02.2023
Is love in the air?
As Valentine’s Day approaches, it’s a good time to consider how to manage close personal relationships or romances at work. What should you put in place?
DISCRIMINATION - 07.02.2023
No menopause protection?
The government has confirmed that it’s not going to make menopause a protected characteristic under the Equality Act 2010. Does this mean that you can ignore menopause-related issues?
PERSONNEL MANAGEMENT - 07.02.2023
Should cakes be banned in your workplace?
The Chair of the Food Standards Agency says that the tradition of bringing cakes into the workplace is “as harmful as second-hand smoking”. Should you ban cakes in your workplace to protect your employees?
UNFAIR DISMISSAL - 07.02.2023
Fabricated documents resulted in unfair dismissal
An employee has been awarded over £38,000 after the tribunal concluded that the documents produced by the employer to support its dismissal decision had all been fabricated for the hearing. How can you prove that a document is genuine?
CONTRACTS - 07.02.2023
Blanket right to vary the employment contract?
A robust employment contract will include the key terms and conditions of employment. But can it also include a blanket clause that permits you to vary or amend any terms and conditions as you need or wish?
HOLIDAYS - 07.02.2023
Maternity leave and holiday entitlement
An employee can’t take accrued holiday entitlement during a period of maternity leave - it must be taken at another time. But what’s the situation if the employee is unable to take their accrued holiday during the same holiday leave year?
SICKNESS ABSENCE - 07.02.2023
Handling questions about a colleague’s sickness absence
One of your employees has been off sick for a few days and their colleagues are now starting to ask questions about the cause of their current sickness absence. How should you handle this type of query?
PARENTAL LEAVE - 07.02.2023
New right to neonatal leave on the cards
Employees will be granted the statutory right to take paid neonatal leave if their baby requires neonatal care. Will this be a day one employment right and how many weeks’ neonatal leave will eligible employees be entitled to take?
ENVIRONMENT - 07.02.2023
Time to shut up on sustainability?
You’ve seen more businesses being called out for greenwashing of late so how can you avoid falling into the same trap - or is it best to say nothing about the green credentials of your business?
OCCUPATIONAL HEALTH - 07.02.2023
Chemical vapour linked to lung damage
The HSE has issued a warning regarding exposure to diacetyl vapour in food and drink manufacture. What’s the risk and how should you manage it?
ELECTRICITY - 07.02.2023
Company fined after fatality in switch room
A company has been fined after a surveyor died from injuries caused by an electrical explosion. How did the accident occur and what should have been in place to prevent it?
ACCIDENTS - 07.02.2023
Why take hand hazards seriously?
Hand injuries account for over 25% of all industrial injuries and cost around £1.3bn p.a. How can you help your staff protect their hands to avoid injury and skin conditions to keep them at work and productive?
WORKPLACE - 07.02.2023
Worker injured due to missing pit protection
A company has been fined after a worker fell into a moulding pit and suffered a broken rib. What were the repeated failures leading to this event and how can you avoid a similar incident?
OCCUPATIONAL HEALTH - 07.02.2023
Are contact lenses safe in the work environment?
If your work entails a risk of eye injuries, such as handling chemicals and welding, you will need to assess whether contact lenses are suitable to be worn in the workplace. What should you consider?
Coronavirus - 07.02.2023
Long COVID may qualify as disability - H&S implications
A recent employment tribunal concluded that a man’s long COVID symptoms amounted to a disability. What factors were taken into account, and if an employee has it what are the health and safety implications?
SICK PAY - 07.02.2023
Drafting contractual sick pay clauses
Whether employees are entitled to pay in excess of statutory sick pay during periods of sickness absence will depend on whether you operate a contractual sick pay scheme. What should you consider when drafting such a scheme?
AGENCY WORKERS - 07.02.2023
What are agency workers’ “day one” rights?
Agency workers have the right to access collective facilities and amenities and to receive information about employment vacancies from the first day of their temporary assignment with a hirer. How far do these “day one” rights extend?
DISCIPLINARY PROCEEDINGS - 07.02.2023
When can you extend suspension?
If you’ve suspended an employee from work whilst you investigate allegations of very serious misconduct against them, you should have let them know how long that suspension is likely to last. What happens if you need to extend it?
HMRC - 07.02.2023
HMRC late payment interest rates hiked again
On 2 February the Bank of England increased interest rates again, this time to 4%. As HMRC interest rates are linked to the Bank of England base rate, what are the new late payment rates and when do they come into effect?
PAYROLL FRAUD - 07.02.2023
Reducing the risk of ghost employee fraud
According to reports, businesses are losing more than £12bn each year to payroll fraud. One of the biggest problems is ghost employees. How can you protect your organisation against this risk?
BENEFITS - 07.02.2023
Payrolling benefits for 2023/24
Your organisation is considering whether to start payrolling benefits for the upcoming tax year. What are the key advantages and disadvantages of doing so and how do you go about it?
GRIEVANCES - 07.02.2023
Employee grievances on the rise
According to a survey by XpertHR, nearly one third of employers have seen the number of employee grievances increase over the last two years. How should you deal with a formal grievance?
HMRC - 07.02.2023
Late payment interest rises again
A further increase in the Bank of England’s base rate means that HMRC’s late payment interest rates will rise again next week. What will the new rates be?
