Author: Glenn

If you use a company car for private travel, it's taxed as a Benefit in Kind (BIK). The tax rate depends on the car’s list price and CO2 emissions—low-emission vehicles get tax breaks. Use HMRC’s online tool to check and update your company car tax details.

If you are provided with a company car that has private use (including commuting), it is considered a "benefit in kind" (BIK) and is subject to taxation. This means that the employee or director using the car must pay tax on the value of the benefit they receive from the car’s private use.

The amount of tax payable is based on the car’s list price, including optional extras and VAT. It also takes into account the CO2 emissions of the car, as cars with lower emissions usually have a lower benefit-in-kind (BIK) tax rate. The more polluting the car, the higher the tax rate will be, and conversely electric and low-emission cars are taxed more favourably.

HMRC’s ‘Check or update your company car tax’ service can be used to:

• check your company car’s details
• tell HMRC about any changes to your car since 6 April
• update your fuel benefit, if your employer pays for fuel

In order to use this service, you will need to know:

• the car’s list price (including VAT and accessories)
• to check if your diesel car meets Euro 6d standard
• CO2 emissions information
• the zero emission mileage figure or ‘electric range’ – if your hybrid car has a CO2 emission figure of 1 to 50g/km

The service is not available if:

• you’re part of a car averaging or car sharing scheme
• your employer is managing benefits and expenses through the company payroll (known as ‘payrolling’)
• you want to make updates for a company commercial vehicle, such as a van

Separation and divorce can create tax implications, particularly Capital Gains Tax (CGT) on asset transfers. New rules from April 2023 extend the ‘no gain/no loss’ period, helping spouses manage tax efficiently. Private Residence Relief may also apply.

When a couple separate or divorce, their focus is typically directed towards the emotional and practical aspects of the process. However, it is essential to recognise that alongside the emotional challenges, there are significant tax considerations that can arise from the transfer of assets. These tax implications, if not properly managed, can lead to unintended financial consequences for one or both parties involved.

One of the key tax issues that arises during separation or divorce pertains to the application of Capital Gains Tax (CGT) on the transfer of assets between spouses or civil partners. Notably, the CGT rules that govern disposals of assets during separation and divorce underwent significant amendments for transactions occurring on or after 6 April 2023. Under the revised regulations, the period within which separating spouses and civil partners can transfer assets on a 'no gain/no loss' basis was extended to up to three years from the date they cease living together. An unlimited period for making such transfers is allowed if the assets in question are covered by a formal divorce agreement, ensuring that no immediate CGT liabilities arise.

In addition to the revised CGT provisions, there are specific rules that apply to individuals who continue to hold a financial interest in the family home following separation. These rules are particularly relevant when the home is eventually sold. In such instances, individuals may be eligible to claim Private Residence Relief (PRR), which can exempt them from paying CGT on the sale of the property, provided it meets certain qualifying criteria.

In the midst of divorce proceedings, it is also crucial for both parties to consider reaching a financial settlement that is as mutually agreeable as possible. In situations where the couple is unable to reach an amicable financial agreement, the court may intervene to issue a 'financial order.' This legal order will outline the distribution of assets, financial support, and any other relevant arrangements.

Before extending credit to new customers, it’s essential to assess their financial reliability. Checking their creditworthiness helps protect your business from potential losses and late payments. Here’s how to do it:

• Start by requesting basic financial information from the customer, including company details, trading history, and references from suppliers. Established businesses should be able to provide trade references that confirm their payment behaviour.
• Conduct a credit check using a business credit reference agency such as Experian, Equifax, or Credit safe. These agencies provide credit scores and reports on a company’s financial health, outstanding debts, and payment history. For individual customers, you may need their consent to run a personal credit check.
• Review the customer’s filed accounts at Companies House if they are a UK-registered business. Financial statements, including balance sheets and profit and loss accounts, offer insight into their financial stability. A company with poor liquidity or persistent losses may pose a credit risk.
• Check for County Court Judgments (CCJs) or insolvency records. If a business or individual has a history of unpaid debts or legal action, this could indicate a higher risk of non-payment.
• Set appropriate credit limits and payment terms based on the information gathered. If necessary, request upfront payments or guarantees to minimise risks.

Finally, monitor ongoing customer creditworthiness. Even reliable customers can experience financial difficulties, so it’s important to review accounts periodically and adjust credit terms when necessary.

Stopping future payments from being made on your debit or credit card is crucial for avoiding unwanted charges and managing your finances effectively. Here’s how you can do it:

The first step is to contact the company taking the payments. Request that they cancel the recurring charge and provide confirmation in writing or via email.

If the merchant refuses to stop the payments, you can contact your bank or card provider. Under UK law, you have the right to cancel recurring payments (also known as Continuous Payment Authorities, CPAs) at any time. Banks are legally required to stop the payment when requested.

Many banks allow you to manage subscriptions and regular payments through their online or mobile banking services. Look for options under “Manage Payments” or “Recurring Transactions” to cancel them yourself.

If all else fails, cancelling your debit or credit card and requesting a new one can be an effective way to stop unauthorised charges. However, this should be a last resort, as it can cause disruption to other legitimate payments.

Regularly checking your bank statements ensures that no unauthorised payments slip through. If you spot an issue, report it immediately to your bank.

Taking these steps will help you stay in control of your finances and prevent unwanted payments from continuing.

The Employment Appeal Tribunal slashed a £10,000 award for injury to feeling by 80% after an original tribunal ruling was deemed not to be Meek compliant as it failed to provide adequate reasons for the quantum awarded. A Miss Graham was employed by Eddie Stobart Ltd. for just over ten months as a planner when she became pregnant and immediately notified her line manager. Miss Graham asserted her right to be offered suitable alternative employment during her maternity leave under the MAPLE Regulations. She was interviewed for a new role but was unsuccessful and was terminated by reason of redundancy although her grievance Email to HR was blocked by the firewall.

Miss Graham complained that she had been "automatically" and unfairly dismissed as per Section 99 of the Employment Rights Act 1996 on the basis that the new role should have been given to her in priority to others who were not on maternity leave. The first Tribunal found that Miss Graham had not been unfairly dismissed but upheld her claim of detrimental treatment and pregnancy/maternity discrimination and awarded £10,000 for injury to her feelings. Eddie Stobart Ltd. appealed and the second tribunal found the award excessive given that she had soon found alternative employment and had not endured prolonged suffering.

This case underscores the importance of presenting evidence supporting any claim for injury to feelings in the form of a ‘checklist’, although HR departments should note that those who are forced to chase up their grievances during allocated maternity or paternity leave may have grounds for such claims, however excessive or seemingly irrational.