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Author: Femi Ogunshakin

Bounce Back Loans

Written by Femi Ogunshakin on . Posted in Restructuring & Insolvency.

Interesting article on another one of the government’s initiative to ensure the cashflow of small businesses do not dry up #bouncebackloans. Confirms my personal suspicions on the future direction of this government initiative to help #smallbusiness cope with the anticipated damage the #coronavirus #lockdown will have on SMEs.

The shocking part of the article, if, as the article states, anecdotal evidence suggests, is the allegation that up to 50% of business owners interviewed are taking out loans knowing they’ve no intention of paying it back.

The Rise of the Virtual Law Firm

Written by Femi Ogunshakin on . Posted in Litigation & Dispute Resolution.

With the outbreak of COVID-19 and the UK government’s compulsory lockdown of the economy in March this year, thousands of employers have been forced to embrace the wonders of modern technology and equip their employees for compliance with the mantra “Stay at home, Save the NHS”.

In a world in which the majority of employees have had little choice but to spend their working week either battling with poor running over crowded trains or congested city roads and clogged motorways, the lockdown would have been a welcomed respite for some and a nightmare for others.

https://www.lawgazette.co.uk/practice/slater-and-gordon-to-close-london-office-as-remote-working-becomes-norm/5104404.article

EAT Announces New Practice Direction on Remote Hearings

Written by Femi Ogunshakin on . Posted in Law.

Etiquette on the conduct of remote hearings during the current lockdown has necessitated the need for the President of the Employment Appeal Tribunal to revisit the rules. In an announcement made today, 12 June 2020, with immediate effect, paragraph 19 of the 2018 Practice Direction is amended to cover the following;

 ·         Procedure where a judge sits with one lay member;

·         Guidance on how partial and full remote hearing will be conducted; and·      

·       A ban on the recording by either party of the remote hearing

For full details of the changes, click here for a link to the full details of Practice Direction (Employment Appeal Tribunal – Procedure – Hearings) 2020

Taxation of coronavirus support payments

Written by Femi Ogunshakin on . Posted in Tax.

The following update is for those employers who are not clear on the status of the receipt from HMRC of grants in respect of the furlough of employees during the lockdown. These payments are made under the Coronavirus Job Retention Scheme (CJRS), the Self Employment Income Support Scheme (SEISS) and other business supporting schemes.

For the avoidance of doubt, the grants are taxable. They will be treated as the receipt of income by the business which for a limited company will be subject to Corporation Tax and if paid to a sole trader, partnership or Limited Liability Partnership (LLP) will be taxed as income on the individual sole trader, partners and LLP members as profits from trading activities.

For further information on the tax implications of the receipt of COVID-19 support, see:

A word of caution: the legislation give HMRC powers to recover payments to recipients where these was no entitlement to either SEISS or the CJRS schemes or when an employer fails to use a grant to pay employees, makes pension contributions, or pay PAYE or National Insurance contributions. These powers will include the raising by HMRC of income tax assessments or requiring taxpayers to submit a self-assessment tax return declaring the sum of the grants received. HMRC will also have the power to levy a penalty charge in cases where deliberate non-compliance is established.

For further information on the tax implications of the receipt of COVID-19 support, see:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/888810/Taxation_of_coronavirus_support_payments_-_draft_new_clause.pdf

https://www.gov.uk/government/consultations/draft-legislation-taxation-of-coronavirus-covid-19-support-payments

HMRC: Clarification on tax rules with regards to the lockdown and company car taxation

Written by Femi Ogunshakin on . Posted in Tax.

To resolve a number of burning on the subject of the taxation of an employee’s company car during the period of the lockdown, HMRC has finally clarified its position with regards to the impact of ‘availability’ and the issues surrounding salary sacrifice scheme.The article should prove to be useful guidance for both employer and employee on the potential for mitigating the Class 1A NICs for the employer and the #benefitinkind tax charge for employees.

HMRC sets out lockdown changes to company car ‘availability’ and salary sacrifice

Working from Home (Part 2): HMRC Announces lockdown changes to tax rules on expenses for home workers

Written by Femi Ogunshakin on . Posted in Tax. No Comments on Working from Home (Part 2): HMRC Announces lockdown changes to tax rules on expenses for home workers

A follow up to my recent post; for those technically inclined, here is a link to the Chartered Institute of Taxation’s summary of the new, albeit temporary tax rules on claiming expenses for employees working from home during the coronavirus pandemic lockdown:  https://www.tax.org.uk/policy-technical/technical-news/new-exemption-covid-19-related-reimbursed-home-office-expenses

Tax Litigation: Use of Mediation in HMRC disputes encouraged

Written by Femi Ogunshakin on . Posted in Tax.

A good read about using Alternative Dispute Resolution as a viable option to litigating disputes with HMRC.

The important thing to note is that whilst mediation is currently optional, this route may be come a necessary one in line with the ongoing streamlining of tax tribunal cases – and its cost effectiveness when compared the cost of a full hearing before a tax judge.

https://www.accountancydaily.co/use-mediation-speed-tax-disputes-hmrc