2023 -
July
PAYE - 31.07.2023
HMRC launches PAYE code tool
HMRC has launched a new online tool to help you understand your PAYE code. What is it and how can you use it?
RACE DISCRIMINATION - 28.07.2023
“Dark horse” reference wasn’t race discrimination
A black employee who heard a colleague use the term “dark horse” has lost her claim for race discrimination at the tribunal. Why was there no finding of race discrimination and is it generally acceptable to use terms like this?
PROFIT EXTRACTION - 28.07.2023
Extracting accumulated profits from non-trading company
Our subscriber is the sole owner manager of a company he started from scratch. He’s received an offer of employment which he intends to take up. His question is what’s the most tax-efficient way to extract the accumulated company profits?
BENEFITS - 28.07.2023
Tax-free cash in the attic
As your first born is due to fly the nest shortly, you’re looking for ways to get a little extra cash to help them. Taking money out of your company in the traditional ways always results in a tax charge. Can you extract the cash without the tax?
SICK PAY - 28.07.2023
Can you withhold SSP if they’ve not provided a fit note?
One of your employees telephoned in sick a week ago and remains unwell. However, they’ve not yet provided you with a fit note from their GP which states that they are “not fit for work”. Can you withhold payment of statutory sick pay (SSP) in this situation?
OCCUPATIONAL HEALTH - 28.07.2023
The need for health surveillance
If your staff are exposed to health hazards during their work, you may be obliged to implement health surveillance measures. Once you have established the need, what should you do to implement a successful scheme?
INHERITANCE TAX - 28.07.2023
Dodging the gift with reservation trap on your home
You want to reduce the potential inheritance tax (IHT) on your estate. A friend has suggested transferring ownership of your home to your children. HMRC says this won’t work if you still live in it. If that’s correct is there a way to legitimately dodge the rule?
LAY-OFF - 28.07.2023
Lay-off and short time working differences
When there’s a temporary work downturn, you could look at implementing a lay-off or short time working. What’s the difference between the two and what payments would the employee be entitled to?
MANAGEMENT SYSTEMS - 28.07.2023
Effective toolbox talks
Toolbox talks can be a good way of getting a specific safety message to your staff. But how can you make sure that they are effective, interesting and that all those present are fully participating?
PRIVATE RESIDENCE RELIEF - 10.07.2023
Claiming PRR for periods of non-occupation
Two of your clients are about to sell residential property. One has lived in their property intermittently whilst working in the UK and overseas, whereas the other has never lived in their property at all. How could both clients potentially claim private residence relief (PRR) in full?
PENSIONS - 10.07.2023
What’s the tax treatment of inherited pensions?
A pension plan is a very tax-efficient way of saving money for later in life. However, some of your clients may die before they can fully utilise their accumulated benefits. What are the key tax considerations in these circumstances?
VAT - 10.07.2023
How can clients avoid VAT interest charges?
The default surcharge regime for late VAT payments ended on 31 December 2022, and the replacement system aims to penalise persistent rather than occasional offenders. Your clients could be charged or receive interest as part of the new system. How does it work?
CORPORATION TAX - 10.07.2023
How does the rate hike affect gains made by companies?
Your client’s company made a chargeable gain in November 2022. Its year end is 30 September each year, meaning the gain falls into a period that straddles the increase in the main rate of corporation tax (CT). How is it taxed in this situation?
STAFF ENTERTAINMENT - 10.07.2023
Will summer function be a taxable event?
One of your clients wants to hold a summer event to entertain its workers and help improve morale. They are unsure what the tax and NI position will be and have asked for your help. What can you advise?
HMRC - 10.07.2023
Shortages take toll on HMRC services
HMRC is working under severe resourcing pressure. Struggling with backlogs, there have been disruptions to a number of services. What is currently affected, and what are clients being advised to do in the meantime?
NATIONAL INSURANCE - 10.07.2023
Are clients due an NI refund after turbulent 2022/23?
Given the multiple changes to NI rates and thresholds in 2022/23, the risk of overpayment has never been so high. Some of your clients could now be due a welcome NI refund. How can you get this money back?
SICKNESS ABSENCE - 07.07.2023
How to conduct a return to work interview
According to the Office for National Statistics, the percentage of days lost due to sickness absence is at its highest since 2004. Return to work interviews can help reduce sickness absence levels in your business. How should you conduct one?
STAFF HANDBOOKS - 07.07.2023
Is it time to implement a fertility policy?
As an increasing number of employers launch fertility treatment and assisted conception policies to add to their staff benefits offering, is it now time for you to consider implementing something similar?
RECRUITMENT - 07.07.2023
Using IDSPs for right to work checks
You should be conducting a right to work check before a new recruit commences employment, and you can now use the services of an Identity Service Provider (IDSP) for some checks. When can they be used?
STATUTORY PAYMENTS - 07.07.2023
Preparing for neonatal leave and pay
In May 2023 new legislation granting employees the statutory right to take paid neonatal leave received Royal Assent. When do the new rules come into force and how many weeks’ neonatal pay will eligible employees be entitled to?
NATIONAL INSURANCE - 07.07.2023
National Insurance numbers and Apple Wallet
It’s good practice for new hires to provide you with proof of their National Insurance (NI) number. A new employee has shown you their NI number using the Apple Wallet on their iPhone - can you accept this?
INTERNAL CONTROLS - 07.07.2023
Conducting a payroll audit
It’s good practice to conduct an internal payroll audit from time to time to ensure that your payroll records are accurate and properly maintained and to identify potential issues before they become problems. Where do you start?
EXPENSES - 05.07.2023
Simplified motor deductions - use with caution
Unincorporated businesses are allowed to use simplified tax deductions for motor expenses. As you would expect they come with conditions and drawbacks. When and how can you use them?
VAT - 05.07.2023
How much VAT can you reclaim on refurb costs?
Your firm is relocating premises and spending a lot on refurbishments including fancy furnishings and artwork for the offices. A colleague has said you might not be entitled to reclaim VAT on some of these costs. Are they right?
COMPANY SELF-ASSESSMENT - 05.07.2023
Going, going, gone - company striking off and tax returns
One of your companies has only ever made losses and you want to close it down and have it struck off as soon as possible. The trouble is, accounts for the current financial period haven’t been prepared. Will this cause a problem with HMRC?
TAX CREDITS - 05.07.2023
Tax credits deadline and scam warning
The tax credits deadline is 31 July. If you haven’t renewed your claim you need to act quickly but carefully. What steps should you be taking?
LOSS RELIEF - 05.07.2023
Can you adjust a claim for loss relief?
The Court of Appeal was asked to decide if a company was entitled to use loss relief to cancel tax on extra profits that resulted from a tax enquiry. The company had lost its argument in the lower courts twice - would it be third time lucky?
PROFIT EXTRACTION - 05.07.2023
Tax-efficient pension contributions for your partner
A business associate says he gets a tax break by getting his company to pay a pension contribution for his spouse who’s currently not working. Is this something you should be considering?
VAT - 04.07.2023
Reclaiming VAT on invoices addressed to directors
It’s very common for directors and employees to buy things for the company in their own name or perhaps use their personal Amazon account for convenience. The problem is that the invoice is then addressed to them and not the company. Can you claim the VAT back?
SPREADSHEETS - 04.07.2023
How to replace pivot tables with dynamic array formulas
Pivot tables are a great way to summarise and analyse data, but they don’t automatically update when you make changes. Is there a way to create a calculation table like a pivot table using formulas which update automatically?
RAISING FINANCE - 04.07.2023
Revenue-based finance on the up
Amazon has launched a revenue-based finance scheme to give its sellers access to funding linked to their sales. Could this be an option for your business?
PAYROLL - 04.07.2023
Are you paying at least the national minimum wage?
A number of high-profile employers including WHS, M&S and Argos were “named and shamed” in June 2023 for failing to pay their staff the national minimum wage (NMW). But you pay staff annual salaries rather than on a wage per hour basis so do you need to worry about compliance?
TAX - 04.07.2023
Offshore holding company benefits and pitfalls
A UK company’s sole shareholder wants to retire and the board are considering a management buyout using a Cypriot holding company which has lower corporation tax rates. What are the advantages of doing so and what do you need to watch out for?
FINANCIAL MANAGEMENT - 04.07.2023
Using OKRs to set goals for the finance team
You want to set goals for the finance team to work towards. Defining the objectives and key results (OKRs) is an increasingly popular way to the set the goals and track the results. What are the key benefits of OKRs and the common mistakes to avoid?
EXPENSES - 04.07.2023
Tax implications and benefits of staff meals
Everyone is struggling with the cost-of-living crisis so the company wants to offer its staff free meals to help them out. Buying in bulk will be best but how will HMRC view your altruistic plans?
VAT - 04.07.2023
Claiming an output tax rebate
One of the team has discovered that an item sold by the business is zero-rated but VAT has been charged at 20% for the last five years. Is it possible to claim an output tax rebate or will it be denied on the grounds of “unjust enrichment”?
PAYE - 04.07.2023
Does it pay to have the correct tax code?
HMRC adjusts the tax paid on salaries by changing the tax code for both directors and employees. But at any one time it’s estimated that more than one in three codes are incorrect. Is this a problem you need to address?
VEHICLES - 04.07.2023
The tax trap in mileage claims
Several staff members use their personally owned vehicles for work, for which the company pays a mileage allowance at HMRC’s approved rates. But there’s a potential trap that could land the business with a tax and NI bill. How can you avoid it?
HEALTH - 04.07.2023
Are prescription medicines safe in the workplace?
Some medication prescribed by doctors and over the counter medicines can make people feel drowsy, even though it’s not listed as a side effect. Can you have a blanket disclosure policy for all staff or should it be role-specific?
PACKAGING - 04.07.2023
What is “home compostable”?
A competitor is boasting that its packaging is “home compostable”. But what does this actually mean? Is it different to other compostable packaging and is it green?
FIRE SAFETY - 04.07.2023
LPG forklift truck fire risk
In June 2023 the HSE issued an urgent safety notice regarding LPG forklift trucks. What’s the newly identified risk and do you need to act?
WASTE - 04.07.2023
Jail for illegal waste storage
Two men have been jailed and a third sentenced after the Environment Agency found they were storing material at a waste site illegally. What were the circumstances of the case and how can your business be affected?
RACKING - 04.07.2023
Rack it right: best practices for safe and efficient storage
Racking is an important piece of equipment in many industries, including warehousing, retail and manufacturing. What practices should be adopted to ensure safe use of your system to protect both workers and your valuable stock?
WORKPLACE - 04.07.2023
Worker crushed by 700kg crate
Whilst routinely handling heavy equipment a worker was crushed causing severe injuries. What went wrong and how can you prevent a similar injury ?
RISK ASSESSMENT - 04.07.2023
Poll finds SMEs lacking in health and safety
A recent poll has found that just 50% of SMEs provide health and safety information to their staff and only 52% give access to first aid facilities. What steps should you take to reduce the likelihood of being on the wrong end of enforcement action?
