Change of mind or mistake?

6 February 2012

The case of Turbine Motor Works Limited (TC1543) is an interesting case study in a situation where it may have appeared, initially that the taxpayer changed its intended use of a cost, but it was held that it had always had an intention which happened to be inconsistent with its original behaviour in claiming VAT on the cost.

Meeting the workforce challenge

3 February 2012

The challenges facing HR professionals in the public sector have, perhaps, never been greater as organisations continue their drive for reduced costs and increased efficiencies. The desire to protect front-line services has focused attention on workforce numbers and costs, along with other savings strategies in support functions and areas such as property and ICT. The scale and pace of change, combined with an increasingly difficult employee relations climate resulting from the continuing pay freeze, job insecurity and proposed pension changes, requires innovative and imaginative thinking as organisations seek to manage more immediate imperatives, while planning for the longer term.

Court of appeal judgment rules PA holdings’ dividends subject to NICs

3 February 2012

In the case of HM Revenue & Customs v PA Holdings Limited, PA wished to pay its employees discretionary annual bonuses. It adopted an arrangement whereby the employees were awarded shares in a special purpose company and received dividends. The effect, so PA contended, was that the cash the employees received was dividend income rather than employment income and should be taxed as such. Additionally, PA contended that there was no liability to make National Insurance Contributions (NICs) in respect of these payments.

Pension scheme trustees given top priority

2 February 2012

The Court of Appeal has upheld the High Court’s decision in the Lehman Brothers Holdings Inc/Nortel Networks Corp case, confirming that in insolvency proceedings, pension scheme trustees will have super priority status as creditors above other unsecured claims.

Partner or employee?

2 February 2012

When it comes to employment rights, working in a partnership is not as straightforward as it might seem, says Sarah Rushton

International Safety Awards deadline closing soon

2 February 2012

Organisations wishing to apply for this year’s prestigious International Safety Awards have just weeks left to complete their applications, with the scheme closing for entries on 29 February.