CPA Bulletin

www.cpa.uk.net CPA Bulletin > May 2019 67 Q&As: 2 Could you please kindly ask someone to advise what VAT rate we use when raising a loss invoice for a rig which was stolen from a client’s site. Our loss adjuster said that we do not charge VAT to our client for the loss, but I need to know is this the case and if so, is it the No Vat or Exempt code that I use? a There is no VAT charge for idle-time charges or for the replacement cost of a stolen item of plant. Below is where this information has been summarised and can be located. HMRevenue & Customs Internal Guidance VI-3 Section 10 10.14 Compensation for damaged goods This covers the situation when goods are lost or destroyed when out of the custody of the owner when they are either supplied on hire or left in trust, for example leaving them for repair. Either replacement goods similar to the original will be given or a payment made to cover the cost of repair or replacement. These are not supplies made for any consideration and so are outside the scope of VAT. Can you tell me whether a Crane Supervisor can also act as a Slinger/Signaller under the CPA’s Contract Lift Conditions? a The first thing to say is that one should not confuse the CPA’s Contract Lift Conditions, which are commercial terms, with the requirements of LOLER, which are regulationsmade under the Health and Safety at Work etc. Act 1974. Commercial conditions cannot override health and safety legislation. To answer your specific query: The CPA’s Contract Lift Conditions say in Clause 5.1 “The Company will perform the Contract Lifting Services in accordance with the relevant Regulations and Codes of Practice.” Clause 1.6.10 says “’Regulations and Codes of Practice’ means the Lifting Operations and Lifting Equipment Regulations 1998 (SI 1998 No. 2307), the Provision and Use of Work Equipment Regulations 1998 (SI 1998 No. 2306), the British Standard Codes of Practice for the Safe Use of Cranes (BS 7121), as amended from time to time, and/or any other Regulations or Codes of Practice whichmay supersede them.” Clause 6.2.8 of BS 7121-1:2016 says: “ 6.2.8.1 In certain circumstances, it might be possible to combine some of the roles of members of the lifting team. However, the combination of roles should only take place following a review of the lifting operation by the appointed person. 6.2.8.2 All lifting operations should be planned by an appointed person. 6.2.8.3 The combination of roles should only be considered if the person undertaking the combined role has achieved the necessary competence for each role. NOTE Competence requirements for self-supervisionmight differ from those for supervising others.” In summary, it is possible to combine the roles of Crane Supervisor and Slinger/Signaller where the Risk Assessment carried out as part of the lift planning indicates that doing so will not increase the risk of something going wrong. It is unlikely that it would be safe to do so for a lift with greater complexity than a basic lift as defined in BS 7121-1:2016. We have a customer that has been hiring a machine from us under CPA’s Model Conditions. He has a couple of hire payments outstanding and a dilapidations charge following the return of the machine. The total amount for damage and loss of hire charges is just over £25,000. We have tried to sue him through our solicitors, but they have said that because there is an arbitration clause in the Model Conditions, would we have to go down that route first? a It is always better to explore the arbitration route before taking a customer to court. The courts prefer/insist disputing parties use other avenues to resolve the matter, particularly if it is stated in any binding agreement. Under clause 35(b) of the Model Conditions, there is reference to Alternative Dispute Resolution, which can include mediation, arbitration or adjudication. It is up to you which avenue you take, but the CPA does have a list of adjudicators. These adjudicators are solicitors, barristers, engineers who act in the role of a judge, where a quicker decision can be reached over the dispute, than waiting to comply with the court process. If you offer this avenue of dispute resolution to your customer with a specified deadline for him to respond to, then if they refuse or fail to respond within that deadline, you can still proceed to court. I would suggest that this offer is made by e-mail, fax and recorded delivery. This helps to avoid the customer claiming that he wasn’t aware of the initial proposal, when he is in court. Under the mileage rates given by HM Revenue and Customs (HMRC), when an individual uses their own car for business purposes, would the same rates apply to apprentices when they attend college? Yes, you can use the same mileage rates for apprentices. The figures states up to 45 pence per mile for the first 10,000 miles, but you can pay a lesser figure.