Tax Question of the Week: New Payslip Legislation

Q- My client has asked me about the new legislation regarding payslips that comes into effect in April 2019. Can you shed some light on this?

A- From 6th April 2019 new legislation around providing payslips comes into effect, under which:

  • All employers will be required to provide payslips to all ‘workers’, and
  • Show hours worked on payslips where the pay varies by the number of hours worked

Who is entitled to a payslip? Read More

VAT Question of the Week: Online Traders selling to Germany using Amazon

Q- My client is an online retailer, selling through Amazon and other online marketplaces. They have recently received correspondence from Amazon with regard to the online sales they make to customers in Germany. It appears that Amazon is insisting that my client must VAT register in Germany if they want to continue to sell to German customers via Amazon. Can you advise what has prompted this action?

A- You may be aware that from 15 March 2018 new legislation allows HM Revenue and Customs (HMRC) to hold  the operator of an online marketplace jointly and severally liable for the unpaid VAT of overseas sellers operating on their marketplace where: Read More

HR Expert: Preventing Annual Leave Carry Over

Q- My client had a number of staff who didn’t take their full allocation of annual leave during 2018 which meant this time was ‘lost’, what can they do to prevent this from happening again this year?

A- It is understandable why your client may feel uneasy with staff having to forfeit their untaken leave at the end of the year, however, the good news is there are a number of steps they can take to avoid this situation occurring in the future. Read More

Tax Question of the Week: a Valid Notice of Enquiry

Q- A client is being chased by HMRC in relation to an enquiry that may not be valid. The client moved house and changed tax advisers but HMRC sent a notice of enquiry to both the client’s old address and to the previous tax adviser. Is there a possibility that the enquiry can be cancelled?

A- HMRC may enquire into a personal tax return if they give notice of intention in a “notice of enquiry” to the person whose return it is within the time limit allowed under s 9A(1) TMA 1970. The time allowed is specified in s 9A(2) TMA 1970 and where a return is delivered on time is up to the end of the period of twelve months after the day on which the return was delivered. Read More

VAT Question of the Week: Registration

Q- Following the filing of self-assessment returns I have been asked to address VAT registrations for several clients that exceeded the VAT threshold of £85000 in the 2017 -18 accounting year. Can you advise how best to address this? Should we register them immediately with a registration date of 5 April 2018?

A- Before rushing to register your clients you should ensure that they made taxable supplies that have exceeded the threshold and at what date. You will need to consider the liability of supplies made and whether the place of supply is the UK. Read More

HR Expert: Help with a Capability Procedure

Q- My client has an employee who is struggling to meet the standards they expect and believes this is an issue with capability. How should they deal with this?

A- If an employee is failing to meet the required standards at work, then your client should first consider holding an informal meeting with them to discuss this in the hope that they improve their performance on their own accord.

If, after a suitable length of time, the employee does not improve then your client may begin a formal capability procedure. As a first step they should complete an investigation into the employee’s performance, gathering suitable evidence which highlights where they are falling short. This may vary depending on their job role, however it could include evidence of poorly executed work or customer complaints.  Read More

Tax Question of the Week: Ultra-low Emission Vehicles

Q-How do the new company car tax bands favour ultra-low emission vehicles (ULEVs)?

A- Starting from tax year 2020/21, changes will be made to company car tax benefit-in-kind bands. These were first put forward in 2016 and finally confirmed in autumn 2017. The changes affect ultra-low emission vehicles, which are cars with CO2 emissions below 75g/km.

What does this mean in practice? Read More

HR Expert: Personal Hygiene

Q- My client has received a number of complaints from customers and staff about the personal hygiene of one of their employees. As this is a sensitive topic how should they go about addressing this with the individual?

A- It is only natural that your client will want staff to maintain a good standard of personal hygiene to present the best possible image for their business. However, having a conversation with an employee about their poor personal hygiene can be difficult, with many employers choosing to avoid this altogether.  Read More

HR Expert: Zero Hours & Good Work Plan

Q- My client has heard in the news that their zero hours’ staff may be able to ask for more stable contracts in the future. Is this right?

A- Judging from your client’s query it would appear that they are referring to a proposal taken from the government’s Good Work Plan, which outlines a series of future initiatives designed to grant additional rights to those working in unsecure employment. Read More

VAT Question of the Week: Dry January? Input Tax Recovery on Alcohol

Q- My client company is a wholesale vintner of long-standing reputation. To capitalize on the current popularity of botanical gins they have recently opened a micro-distillery. To promote and celebrate this new venture the company held a party for staff and business associates, both suppliers and customers. Hospitality was provided at the event in the form of bought-in catering, as well as alcohol from their own stock, some of which were consumed at the event and some of which was given as gifts to take away. Please, could you clarify the input tax recovery position? 

A- It is a common misconception that where the provision of alcohol is involved, input tax recovery is denied. This may be due to the direct tax rules, which are more restrictive, but for VAT purposes, the fact it is alcohol is not necessarily material to the VAT recovery position. Read More