CPA Bulletin

www.cpa.uk.net CPA Bulletin > August 2019 53 Q&As: 2 Can you please outline what allowances, if any, are permitted for employees’ meals. In 2008, Her Majesty’s Revenue and Customs (HMRC) introduced a flat rate tax-free allowance which covered an employee’s meal allowance when the employee was travelling on business. The tax-free rates are: • £5 for breakfast if the business journey starts before 6am. • £5 if the employee spendsmore than five hours away and buys onemeal. • £10 if the employee is out for more than ten hours and he/she buys twomeals. • £15 if the employee is out beyond 8pm, and he/she buys an eveningmeal. The maximum tax-free allowance is £25 per day. Although these allowances have been in existence since 2008, it is at the employer’s discretion on whether they offer these allowances to staff. If the employer does offer them, then these sums do not need to be recorded in the employee’s P11D and/or self-assessment form(s). q A Our office is low risk with most accidents being resolved with the use of a plaster. We’ve been told that all accidents, irrespective of how minor, must be recorded in an accident book. Is this correct? All workplace accidents must be recorded in an accident book, irrespective of howminor they are. The accident book ensures companies comply with their legal requirements under social security, and health and safety legislation, including the Reporting of Injuries, Diseases and Dangerous Occurrences (RIDDOR) requirements. Recording the events surrounding the accident may assist in defending any future claims brought against the company. q A We have an employee who has just gone on maternity leave. She has asked us if she can take all her accrued holiday between her ordinary maternity leave period and any additional maternity leave that she takes afterwards. Is this possible? No. Where an employee wishes to take additional maternity leave, it must commence on the day immediately after her period of ordinary maternity leaves ends. This is because a maternity leave period, which can be up to 52 weeks in total, must be taken continuously; it can’t be interrupted or paused at any point. Any accrued holiday pay can be taken immediately after the end of the maternity leave period. q A We had supplied a Hiab lorry and driver under the Model Conditions to a new customer. Just prior to it starting work on site, the lorry broke down. We found another which didn’t arrive at the customer’s site until after 2pm but remained on site until all the material was unloaded. The customer has sent over an invoice to address the consequential losses he has suffered. We appreciate our customer’s frustrations, but the breakdown was a factor out of our control. Are we covered under the Model Conditions? Yes. Under clause 12 of the Model Conditions - Limitation of Liability - you cannot be held liable for losses, whether this is consequential or otherwise, if it is outside your reasonable control. You could explain to your customer that with any mechanical vehicle, whether a lorry, telehandler, excavator, etc., there is a possibility that it may unfortunately breakdown at the most inconvenient time. You could go on to mention that you made your best endeavours to find a replacement vehicle, which you did, and that it completed their requirements, albeit, in a slightly longer timeframe than originally anticipated. With reference to clause 12 of the Model Conditions, it is at your discretion whether you wish to rely upon it; or merely mention it as a negotiating tool, where you could contribute to some of your customer’s consequential losses, without admitting any liability. This may help maintain future business relations. q A