2024 -
February
INPUT TAX - 28.02.2024
Self-billing: is HMRC’s input tax assessment correct?
One of our subscribers had a recent compliance review and the officer disallowed input tax claimed on self-billed invoices issued to a supplier who deregistered 18 months ago. Is the officer correct to do this and what should our subscriber do?
RECORD KEEPING - 28.02.2024
How long do you need to keep VAT records?
The legislation states that you only need to correct errors made on your returns for the last four years, so can you destroy your accounting records and invoices that are more than four years old? And how could you save on storage costs?
CONSTRUCTION - 28.02.2024
Building certificates needed for 0% VAT
If you provide construction services on a new building to be used for a relevant charitable or residential purpose, or sell a new building to the users, your supply will be zero-rated. But what documents must you get?
PROMOTIONS - 28.02.2024
How to account for VAT on customer vouchers?
Your business will sell vouchers to customers that can be redeemed in the future against goods or services that you sell. How should you account for VAT on these vouchers to avoid a problem with HMRC?
COMPLIANCE - 28.02.2024
HMRC targets cash traders in hot food and catering
HMRC’s computer system has identified 4,000 traders in the hot food and catering sector that may be under-recording sales. What does this mean for your business and could the review be extended to other sectors?
RENTAL INCOME - 28.02.2024
What if you’ve lost your option to tax election?
You’ve signed a lease with a new tenant for the commercial property you’ve owned and rented out for six years. The tenant has asked for a copy of your option to tax confirmation letter from HMRC but you cannot find it. What should you do?
TRIBUNALS - 28.02.2024
Tribunal fees back on the agenda?
Employment tribunal fees were abolished in July 2017 following a Supreme Court ruling that they were unlawful. However, the government is now consulting on re-introducing much more modest fees than previously. What are its proposals?
DISMISSAL - 28.02.2024
Is it easy to dismiss short-service employees?
Employees with less than two years’ continuous service can’t generally claim unfair dismissal, so it can be relatively easy to dismiss them. But what risks do you need to be aware of before you decide to implement such a dismissal?
DISCIPLINARY PROCEEDINGS - 28.02.2024
Using demotion as a disciplinary sanction
A police officer has made the news headlines after being demoted for selling some police uniform trousers on Vinted. Can you demote as a disciplinary sanction?
MONITORING - 28.02.2024
Monitor entry data to check workplace attendance?
Two large employers have revealed that they’re now using entry data from security access gates to clamp down on non-compliance with hybrid working arrangements. To what extent is this type of monitoring lawful?
FLEXIBLE WORKING - 28.02.2024
Employee denied permanent homeworking loses claim
An employee who was denied permanent homeworking by her employer following her flexible working request has lost her employment tribunal claim. What does this mean for similar flexible working requests?
RECRUITMENT - 28.02.2024
Pre-employment checks for new recruits
As part of your recruitment process, you should always carry out pre-employment checks on a successful candidate once they’ve accepted your job offer. What checks should you conduct and when should you do them?
HOLIDAYS - 28.02.2024
Annual leave for irregular hours and part-year workers
For holiday years beginning on or after 1 April 2024, new rules will apply to annual leave under the Working Time Regulations 1998 for irregular hours and part-year workers. What are the essentials of those new rules?
ENVIRONMENT - 27.02.2024
Should you sign up to a carbon literacy course?
You’ve heard that a competitor has put some of her staff on a carbon literacy course. What does it entail and should you be thinking about doing something similar?
MENTAL HEALTH - 27.02.2024
HR and HS joint responsibility for mental wellbeing
The responsibility for mental health in the workplace can fall under the scope of human resources (HR) or health and safety (HS), or both. At a time when the problem is increasing exponentially, what is the best approach?
HAZARDOUS SUBSTANCES - 27.02.2024
How to manage chemicals with H360 hazard statement
There’s a huge variety of chemicals used in the workplace, and each must be supplied with a safety data sheet (SDS) telling you of its hazardous properties. If you use a substance with an H360 hazard statement, what are the particular risks and what should you do to control them?
CONSTRUCTION - 27.02.2024
What are your client duties under CDM?
You may have been referred to as a client when you are scoping a project, but what exactly does this entail under the Construction (Design and Management) Regulations 2015 (CDM)?
OCCUPATIONAL HEALTH - 27.02.2024
Why are so many Brits on long-term sick?
Long-Covid, depression from lockdowns and even back problems from homeworking are among the factors blamed for a record 2.8m workers being off sick. What can you do to lessen the impact on your business?
RISK ASSESSMENT - 27.02.2024
Company fined after 21-year-old worker dies
A company has been fined £67,000 after a young employee lost his life. What were the circumstances of the accident and what should have been in place to prevent this tragic event?
WORKPLACE - 27.02.2024
Worker fatally struck by moving vehicle
A worker was killed whilst moving around a recycling site. What lessons can be learned from the failures in this case and what controls can you implement to prevent a similar occurrence on your premises?
SHARE OPTIONS - 27.02.2024
Net settled share options: what’s the correct deduction?
A client’s employee exercised share options at a price of £10,000. The client is expecting a corporation tax deduction of £10,000. However, they have informed you they used a net settled arrangement. Why is this a problem?
CAPITAL GAINS TAX - 27.02.2024
Real time reporting not being used, says financial press
Recent reports in finance publications suggest that less than 1% of capital gains tax (CGT) is being paid through the real time reporting service. What is this service, and should you advise clients to use it?
BUSINESS PROPERTY RELIEF - 27.02.2024
Retiring without springing an inheritance tax trap
Your client holds the main interest in a family-owned trading partnership. He is looking to retire, selling his interest to his adult children. You have advised that this could lead to an inheritance tax (IHT) charge. What should you advise here?
IR35 - 27.02.2024
Employment status update
Your clients include workers who provide their services through intermediaries such as personal service companies. What do you need know about recent case law and the imminent statutory changes in April 2024 when making employment status decisions?
COMPENSATION LIMITS - 27.02.2024
New statutory compensation limits effective from 6 April 2024
From 6 April 2024, new increased compensation limits for employment tribunal claims and other amounts payable under employment legislation will come into force. What are the key increases that you need to be aware of?
INVESTMENTS - 20.02.2024
EIS - retrospectively reduce your tax bill
You want to make a tax-efficient investment and you’ve read that one which qualifies for the enterprise investment scheme (EIS) is a good option because it means you can reclaim tax you paid on 31 January. How does this work in practice?
PROFIT EXTRACTION - 20.02.2024
Planning your year-end dividend
The end of the tax year is approaching and you want to make full use of the 8.75% tax rate that applies to dividends. How can you work out how much dividend you can take and ensure its payment before the tax year ends?
CAPITAL ALLOWANCES - 20.02.2024
Can your CAs claim include VAT paid?
One of our subscribers is being threatened with extra tax and penalties for claiming capital allowances (CAs) for the VAT he paid on the purchase of equipment. Is HMRC right to say the qualifying cost must be exclusive of VAT?
NATIONAL INSURANCE - 20.02.2024
Getting directors’ NI contributions right for 2023/24
The end of the tax year is just a few weeks away. As an employer you’ll need to carry out the usual payroll year-end routines. However, if your business operates through a company there’s an extra step that might be required. What is it?
SELF-ASSESSMENT - 20.02.2024
Pressure builds on cryptoasset owners
A national firm of accountants says HMRC is stepping up investigations relating to cryptoassets. If you own Bitcoin assets, should you be worried?
NATIONAL INSURANCE - 20.02.2024
Are you missing out on the employment allowance?
The employment allowance (EA) can save you thousands a year by reducing your NI contributions bill. The trouble is that the EA is subject to tricky conditions. So when are you entitled to the EA and how do you claim it?
CARS - 20.02.2024
Government U-turn on double cab pickups
After an earlier announcement that the tax treatment of double cab pickups would change later this year, the government has almost immediately changed its mind. What is the revised position?
CARS - 20.02.2024
Double blow for double cab pickups
From 1 July 2024, double cab pickup trucks will be classed as cars for direct tax purposes. What will change and will you be affected if you already drive a company- provided vehicle meeting the description?
machinery - 14.02.2024
Landscaper sentenced after worker dies
An inexperienced worker was killed when a moving circular saw kicked back into his groin. What were the chain of events leading to the accident and how can you avoid a similar incident in your workplace?
COMPRESSED AIR - 14.02.2024
Are compressed air systems safe to operate?
Compressed air systems provide energy and power for machinery, tools and equipment, such as inflating vehicle tyres. However, operating them without proper management can pose significant health and safety risks for operators. What are they and how should they be controlled?
FIRST AID - 14.02.2024
Is your first aid box outdated and tired?
First aid kits are an important item for any workplace be it static or mobile, such as in a vehicle. Why is it important to regularly check the contents of your kit and how often should you update it?
PPE - 14.02.2024
Why well fitting PPE matters
As a last line of defence, PPE can be an effective way of protecting your staff by forming a barrier between them and the hazard you are exposing them to. But it’s critical to ensure a good fit. Why is this so important?
ENVIRONMENT - 14.02.2024
Are plastic cups and spoons banned or not?
New research has found supplies of “illegal” plastic items are widely available for sale on sites like Amazon and eBay. Haven’t some of these been banned and, if so, should you avoid buying them?
ASBESTOS - 14.02.2024
Illegal removal of asbestos leads to community order
A man has been handed a community order after he admitted removing asbestos from a school when he wasn’t licensed to do so. What were the circumstances of the case and how can you avoid selecting a bogus contractor?
PAYE - 14.02.2024
Rates and thresholds for 2024/25 confirmed
The tax and NI rates and thresholds, as well as the national living and minimum wage levels, applicable to earnings taxed under PAYE have been confirmed for the 2024/25 tax year. Are there any highlights you need to be aware of?
DISCIPLINARY PROCEEDINGS - 12.02.2024
How to deal with sickness absence during disciplinary process
Research by employment and HR support service WorkNest has revealed that nearly 20% of employees are seeing their disciplinary processes take longer than three months, often due to sickness absence. What are your options here?
SELF ASSESSMENT - 08.02.2024
Over one million tax returns not filed on time
Statistics show that more than one million tax returns were not filed by midnight on 31 January 2024. What should you do if you’ve missed the deadline, and why should you double check your filing in any case?
SPREADSHEETS - 08.02.2024
How to add hierarchies to pivot tables
You’ve heard that you can set up hierarchies in pivot tables. What are the advantages of doing so and how do you go about it?
PAYROLL - 08.02.2024
Considerations when employing a director’s spouse
A director’s spouse doesn’t currently work and he’s asked you if the company can employ her in an administrative capacity. What do you need to consider and how much can the company pay her?
ACCOUNTING SOFTWARE - 08.02.2024
Lessons from the Horizon scandal
The flawed Horizon accounting system led to the wrongful conviction of hundreds of sub-postmasters. What lessons can you learn from this when implementing new accounting software?
PROFIT EXTRACTION - 08.02.2024
Save tax by gifting shares to your kids?
To prevent parents gaining a tax advantage by shifting income to their children HMRC has tough anti-avoidance rules. Is there legitimate tax planning that company owners can use to work around them?
EXPENSES - 08.02.2024
Tax-efficient staff uniform provision
You pay a clothing allowance to your customer-facing staff and your business pays their PAYE tax and NI. You’re considering providing the clothing direct as you recently read that it’s more tax efficient than paying an allowance. Is this correct?
MERGERS AND ACQUISITONS - 08.02.2024
Are acquisition fees tax deductible?
Your company has incurred significant professional fees in relation to its purchase of another business. Are any of these costs tax deductible or do they all need to be treated as capital costs and added to the cost of the investment?
HMRC - 08.02.2024
How to manage a PAYE compliance check
Our subscriber received a routine HMRC compliance questionnaire which he completed in full. HMRC then demanded more detailed information but without starting an investigation. Is our subscriber within his rights to refuse to supply it?
VAT - 08.02.2024
Reclaiming VAT on EU business trips
Your staff regularly travel to mainland Europe for conferences and to visit suppliers. When the UK was part of the EU, it was relatively easy to claim back EU VAT on travel costs but the process is much more difficult now. How do you make a claim?
FOREIGN EXCHANGE - 08.02.2024
How to calculate forex risk
Your company is seeking to widen its international reach in search of new markets for sales. You’ve been asked to consider what the foreign exchange risks (forex) are likely to be. Where should you start?
REDUNDANCY - 07.02.2024
Some employees to gain extended redundancy protection
The right to be offered a suitable alternative vacancy on redundancy is to be extended from 6 April 2024 to cover pregnant employees and those recently returned from maternity, adoption or shared parental leave. What are the implications?
MINIMUM WAGE - 07.02.2024
Are you really minimum wage compliant?
Although the age-related national minimum wage rates are straightforward to understand, the rest of the law that applies to the minimum wage is complex. What are the key areas where you might go wrong when it comes to compliance?
PATERNITY LEAVE - 07.02.2024
Changes to the statutory paternity leave scheme
The government has published draft regulations which, once in force, will make changes to the way in which employees exercise their statutory entitlement to paternity leave. What are the changes?
EMPLOYMENT STATUS - 07.02.2024
Determining someone’s employment status
Determining an individual’s employment status for the purposes of statutory employment rights can be a complex matter. What are the key tests that you need to be aware of when it comes to making this determination?
AI - 07.02.2024
The perils of using generative AI for research
A 2023 First-tier Tribunal judgment in a tax case has highlighted the dangers of using generative AI for conducting research, particularly if used in the defence of an employment tribunal claim. What happened and what lessons can be learned?
GRIEVANCES - 07.02.2024
Must subsequent grievances be in writing?
Where an employee has submitted a written grievance and then they wish to raise further related complaints, must any subsequent grievance also be in writing for the Acas Code on Disciplinary and Grievance Procedures to apply?
PAY - 07.02.2024
What should you pay in a leap year?
2024 is a leap year with 366 days rather than the usual 365, and so employees will have to work an additional day. Do you have to pay them for it?
BENEFITS IN KIND - 06.02.2024
Can you reverse payroll tax on perks?
Tax and NI on perks can be avoided by “making good”. This involves the director or employee who received the benefit reimbursing their employer for it. But are you allowed to make good a perk if PAYE tax has already been paid on it?
CAPITAL GAINS TAX - 06.02.2024
Tax planning for a large capital gain on the sale of land
Our subscriber recently sold a field and made a substantial capital gain. The land was inherited from her father and until now used by her brothers in their farming business. Is there any tax planning she can do to reduce the tax on the gain?
CAPITAL ALLOWANCES - 06.02.2024
Capital allowances for new business - get it right!
You’re making a business plan for a new business. Naturally, tax is an important factor, especially the timing of capital allowances (CAs) for the purchase of equipment. What equipment qualifies for CAs and how much can you claim?
LOANS - 06.02.2024
Fund your business with tax-efficient personal borrowing
Your business needs a vehicle and some equipment. It will have to borrow to make these purchases. You personally have the cash which you could lend to the business, but might there be a more tax-efficient option?
IR35 - 06.02.2024
New IR35 legislation published
In his 2023 Autumn Statement the Chancellor announced new rules to prevent potential double charges on income subject to IR35/off-payroll taxes. The draft rules are now out for consultation. What’s the full story?
PENSIONS - 06.02.2024
Is your private pension being overtaxed?
Recent press reports suggest that anyone who takes income from their private pension has a better than 50/50 chance of HMRC taking too much tax from it. If you’re planning to draw any of your pension savings, how can you avoid this trap?
VAT - 06.02.2024
Personal ownership of business premises - VAT problem?
Your business is moving and you’re thinking of buying the new premises in your personal name, but there’s a possible drawback. Might personal ownership prevent recovery of VAT on costs relating to maintenance and improvement of the property?
FLEXIBLE WORKING - 06.02.2024
Employee loses claim for permanent homeworking
An employee who had her flexible working request for permanent homeworking rejected by her employer has lost an employment tribunal claim. Does this give you the green light to refuse similar flexible working requests for permanent remote working arrangements?
VAT - 01.02.2024
Go electronic with your invoices
Your business recently switched to electronic invoicing. There were a few teething problems but it’s now working well. However, some customers are asking for paper invoices and getting pushy about it. Must you comply with their requests?
PROFIT EXTRACTION - 01.02.2024
Company loans - a cheap form of profit extraction
Despite falling inflation, the Bank of England says it won’t rush to reduce interest rates. So, if you need a loan and your company has available cash is it cheaper and more tax efficient to borrow from it instead of your bank?
DISCRIMINATION - 01.02.2024
£340,000 for being called “a pensioner”
An employee who was labelled “a pensioner” because of his age and placed “in the relegation zone” has been awarded £340,000 in compensation by the tribunal. These are both no-nos, but where else did the employer go wrong?
TIME OFF - 01.02.2024
Requests for time off for medical appointments
One of your employees has requested time off during working hours to attend a medical appointment. Must you grant their request and are you entitled to ask them about the nature of the medical appointment?
CAPITAL GAINS TAX - 01.02.2024
What can you deduct from capital gains?
The First-tier Tribunal (FTT) recently ruled on a dispute regarding what should be deducted when working out a capital gain. The FTT’s decision might seem surprising but was it correct?
CONSTRUCTIVE DISMISSAL - 01.02.2024
Employee denied phased return to work wins £29,000
An employee who was denied a phased return to work after having extensive surgery on both of her wrists has been awarded over £29,000 in compensation by the tribunal. What was the legal issue here?
