CPA Bulletin

Q&As: 1 48 CPA Bulletin > November 2019 www.cpa.uk.net q & a s Can you confirm that the Reverse VAT legislation, which was to be introduced on the 1st October 2019 has now been deferred? The Government did announce that the Reverse VAT legislation has been deferred and will now be introduced on 1st October 2020. q A We have a customer who hired a crushing machine fromus, with the intention to buy one. The hire, under the Model Conditions, was originally for two days, but this was extended to five. On the first morning, the belt-drive failed, and had to be replaced. We credited the customer a half-day’s hire for this lost time. When themachine was collected, it had been damaged. The customer is now querying the hire charges, as he hadn’t used it for all of the extended hire period, and is questioning the damage, which he alleges wasn’t caused by him. Where do we stand? As the machine was hired under the Model Conditions, the customer’s liability is clear-cut. After your customer had extended the hire from two to five days, the hire charges would be applicable in full for those five days (less the half-day’s loss of hire, which you’ve credited). The fact that he hadn’t used it for a full day, on all of the days, is immaterial. If the machine was damaged on or prior to delivery, this would have been highlighted on the delivery ticket. As it was not, then the damage can only have occurred during the hire period. Under clause 13(b), the customer must make good this loss. Hire charges can continue at two-thirds of the hire rate until settlement has been agreed. Whether you wish to reduce the hire rate and ignore the claim for damage for commercial reasons - in the hope the customer will buy a machine - is your decision. q A We referred one of our operators to an Occupational Health Advisor (OHA) who subsequently prepared a writtenmedical report on the operator’s condition. Our operator is now stating that he wants the OHA’s report altered, otherwise he won’t consent to it being released to us. Is our employee legally entitled to do this? Under the Access to Medical Reports Act 1988 (AMRA) where a report has been supplied by any medical practitioner for employment purposes, the employee concerned has a general right to withhold their consent to it being released to you - despite you probably having paid for it. Where the operator believes that the report is incorrect or misleading in some way, AMRA permits changes to made provided that the OHA who wrote it, agrees with the operator’s request. However, if the OHA disagrees, then the operator can insist that a note is attached to the report which explains his/her objection and then can give their consent. The operator is still within his/her rights to refuse to give their consent; though the employer should enquire as to the grounds for refusing. q A We have a customer that has requested a reduction to the hire charges due to inclement weather he was experiencing. Can you confirm whether this is outlined within the Model Conditions, and does it cover for non-operated items of plant? The CPA Model Conditions are for business-to-business hire agreements, whether an operator is supplied with the plant or not. If an item of plant is prevented fromworking due to inclement weather, then the hire rate is reduced to two-thirds. However, if you refer to clause 25 of the Model Conditions, it states that if the plant is used for any part of the working day, then the whole of that day is charged at the normal rate. q A