CPA Bulletin

www.cpa.uk.net CPA Bulletin > February/March 2021 33 LEGAL: 2 From 1st March 2021, London’s Direct Vision Standard (DVS) will come into effect. All HGVs over 12 tonnes travelling throughout Greater London will need a permit. To qualify for a permit, the vehicle must have a minimum 1-star rating DVS, or, have a ‘safe system’ measure fitted to the vehicle - whether this is a camera, or sensor, or warning alarm. However, Transport for London (TfL) has allowed HGV operators who register with TfL before 1st March 2021 a ‘grace’ period of 90 days from that date to enable them to comply with the DVS safety requirements. Registration is conditional on operators providing evidence of their applications or planned installation arrangements for safe system equipment to their vehicles. Operators who do not register by that date and/or do not hold a valid HGV Safety Permit will face enforcement action by TfL. The DVS will operate in the same area as the existing London-wide Low Emission Zone (LEZ), and will operate for the full day, every day of the year. Any HGV which does not have a permit, or operates in contravention of the permit’s conditions, will be issued with a £550 Penalty Charge Notice for each day the vehicle is driven within the DVS area. Permits are free of charge to obtain and are still available; however, due to possible late demand, applications may take time to process. Further information on DVS can be found at https://tfl.gov . uk/info-for/deliveries-in-london/delivering-safely/direct- vision-in-heavy-goods-vehicles?utm_source=dotdigital&utm_ campaign=753397_Enews%2006%20January%202021&utm_ medium=email&dm_i=4WKY,G5BP,10AES0,1WT8S,1 London Direct Vision Standard (DVS) HMRevenue & Customs (HMRC) has confirmed that the IR35 employment tax changes, which had been postponed due to the impact of the Coronavirus, are set to take effect from 6th April 2021. On this date, IR35 - the UK tax law applicable to the engagement of contractors through a personal service company or other intermediary - will expand significantly. In law, a contract of employment can only exist if there is a direct contractual relationship between the employer and the employee. So, if an individual is engaged to supply their services through some other intermediary (such as a private limited company fromwhich they take a small salary plus dividends) and the intermediary (not the individual) has the contract with the end user client, this will not be an employment relationship in the legal sense. Such devices obviously give rise to opportunity to disguise true employment and avoid employment tax and other employment obligations. The impact this will have will mean end user clients of independent contractors must undertake detailed assessments to determine whether each contractor is caught by IR35; and if so, tax the individual as if they were an employee. If, following any particular assessment, the end user considers that IR35 does apply to a particular contractor relationship, the end user will have the obligation to notify the intermediary and, if the engagement continues, operate PAYE - taxing the payments to the intermediary as if it were income from employment. Where contractors are engaged by the client via some other additional third party, such as an agency, the client could pass the PAYE obligation to them. It is advisable to obtain specialist legal and tax advice on this matter. IR35 - Changes introduced in April Updated guidance: Tyres over 10 years old From 1st February 2021, the tyres on the front axle of goods vehicles with a maximum gross weight exceeding 3,500 kgs, must be less than 10 years old. The Driving and Vehicle Standards Agency (DVSA) already checks the tyres during roadside enforcement stops to see if any are aged 10 years and older. The introduction of this law will allow Prohibition Notices to be issued if these tyres are found at the vehicle’s annual test, or during enforcement checks. If a tyre is found which is past this new threshold, then it will be deemed a ‘failure item’ on the test. If they also fail to display a ‘date code’, they will also fail. It is advisable to check all qualifying vehicles to ensure compliance. You can read more about this on page 19. Due to the economic downturn caused by the pandemic, the Government has been reviewing the Annual Investment Allowance (AIA). The AIA limit was to revert back to £200,000 with effect from 1st January 2021, however it will remain at £1 million for another year. The Chancellor’s Budget is set for 3rd March 2021, so at the time of writing, there did not appear to be any changes to the AIA. Annual Investment Allowance maintained