HR EXPERT: Managing Overtime

Q- My client anticipates needing their staff to work overtime during an upcoming busy period, can they just make them do this?

A- Overtime is often used by employers as a way of managing times of peak business or high customer demand. The way in which overtime is managed can differ significantly and your client should consider the pitfalls that can come with introducing this to their organisation. Read More

VAT Question Of The Week: VAT and Welfare Services

Q- My client provides domiciliary care services to the elderly and they are approaching the VAT registration threshold. The client is regulated by the Care Quality Commission and the individuals receiving the supply are under the instruction of a care plan and require help with personal care and domestic tasks. Can you confirm if my client is required to register for VAT?

A- Under VAT Act 1994 Schedule 9 Group 7 supplies of welfare services and connected goods by charities, public bodies, state regulated institutions or agencies are exempt from VAT.
The legislation defines welfare services as: Read More

Tax Question Of The Week: Class 4 NIC Changes

Q- One of our clients asked about that the Class 2 NIC is finally being abolished from 6 April 2019. This means that those of my self-employed client with losses or low profits who want to protect their state pension contribution record will have to pay Class 3 contributions which are considerably more expensive. Will there be any alternatives?

A- A. At the same time that Class 2 NIC is being abolished, changes will be made to Class 4 NIC which may be of assistance – but not in all cases. We have no legislation as yet and so the following comments are based on the information available but may be subject to change.

Class 2 NIC currently gives

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VAT Question Of The Week: Clawback

Q- My client is a housing developer and bought some land in August 2016 on which he incurred VAT. At the time of purchase, he intended to build new dwellings for sale (zero-rated taxable supplies) and therefore he claimed back the VAT incurred on the October 2016 return. However, upon completion of the site in January 2018 the developer changed his mind, and now, for the first time, he intends to rent 50% of the properties out (exempt). What happens to the VAT he has claimed?

A- Input tax can be reclaimed on goods or services where they are used, or intended to be used to make taxable supplies.

As your client intended only to make taxable supplies with the land, he was correct to claim back the input tax in full at the time.Had your client changed his intention within the same partial exemption year as the claim for input tax (i.e. by April 2017), then any input tax claim would Read More

Childcare Voucher Scheme

Q- My client’s employee wants to join their childcare voucher scheme but has heard that the scheme is being removed. Can the employee still join and what do the changes mean for my client?

A- On 5 October 2018, childcare voucher schemes will close to new applicants, meaning your clients are likely to receive an influx of questions from employees with young children who make use of the existing provisions. It is therefore important for your clients to familiarise themselves with these new developments and what this means for the existing voucher scheme.

Under the current scheme, clients can Read More

VAT Question Of The Week: Private Tuition

Q- When two of my clients retired from teaching in schools they set up a partnership to deliver tuition for GCSE Maths and English. They each tutor their own individual students, as well as delivering tuition to a group, but most of the time they use third-party teachers to take the group sessions. Their turnover is £140,000 looking back over the last 12 months but they are not VAT registered as they believe their services are all exempt; is this correct?

A- Where a sole trader or a partner in a partnership teaches a subject ordinarily taught in schools or universities, this is an exempt supply of

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Settled Status

Q- One of our clients has a number of EU workers who have asked them about applying for settled status. What can they do to help?

A- Clients are likely to receive an influx of questions following the recent announcement on the settled status application process for EU workers. Although the Home Office has placed the emphasis of applying for settled status firmly with the individual, it would be within your client’s interest to make staff aware of these requirements and provide support where possible to relieve uncertainty surrounding Read More

Tax Question Of The Week: Additional Interest Acquired In Main Residence

Q- An unmarried couple are separating after many years together, as part of the separation my client has agreed to buy her partner’s joint interest in the family home for £300,000. Will Stamp Duty Land Tax be payable on this acquisition, and if so, as she also owns a rental property, will the additional 3% rates apply?

A- Finance Act 2003, Schedule 3, Paragraph 3A provides an exemption from SDLT on transactions made in connection with the ending of a marriage or civil partnership. As the couple never married, this exemption will not apply and SDLT will be due on the £300,000 consideration paid by your client to acquire the joint interest from her ex-partner.

Legislation at Read More

Flexible Working Summer Holiday

Q- With the school summer holidays approaching one of our clients has received a request from an employee for flexible working over this period. What should they do about this?

A- The school summer holidays can be a difficult time for working parents who are often tasked with having to manage workplace responsibilities and increased childcare commitments for a prolonged period of time. Whilst many choose to take annual leave during the summer months to be at home with their children, this is not always possible. Therefore, it is important that

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Brexit From a VAT Perpective

Q- One of our clients has a small manufacturing business and all of his trade is with the EU. With Brexit on the horizon, how will this affect the business?

A- Unless all member states agree to an extension, the UK leaves the EU on 30 March 2019. The UK intends to leave the EU Customs Union, meaning the re-introduction of a UK-EU Customs border. A negotiated outcome of a Free Trade Agreement (FTA) with no customs duties imposed is still the most likely scenario. However, Read More

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