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One of the most important aspects of DAC6 compliance is making sure intermediaries report transactions within the reporting deadline. Having consulted with over 50 leading international firms and HMRC, we have updated the DAC6 portal dashboard to make it easier for administrators to stay on top of deadlines. Our customisable dashboard will allow firms to easily track when a deadline is approaching, see what’s overdue and review what has been reported.

What are the key features of the new DAC6 portal dashboard?

1. Clear overview of the status of reports

Screenshot of DAC6 reporting portal dashboard

Failure to submit a report can result in a fine from HMRC. The dashboard gives a clear, customisable visual overview of the upcoming deadlines and overdue reportable transactions.

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Under DAC6, special entities, known as intermediaries, must log certain cross-border transactions that may have a tax implication and where necessary report these to local tax authorities. They should therefore start registering and keeping track of all cross-border transactions. VinciWorks has consulted with 50 leading international firms, as well as HMRC, to build a best-practice DAC6 reporting solution. The portal allows intermediaries to record all cross-border transactions while guiding them on which transactions require reporting.

Keeping track of all DAC6 reports

When it comes to DAC6 reporting, how do you make sure matters are not falling through the cracks? At matter intake, partners are unlikely to have all the details of the transaction and there needs to be a way to trigger the DAC6 review at a later time. To solve the problem, we have added a new feature that allows administrators to build flexible reminders that will trigger emails to the relevant parties when a submission needs to be reviewed or has an upcoming reporting deadline.

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To help businesses keep track of updates in UK legislation and policies, VinciWorks regularly publishes a short regulatory update. Since our last update in January, the UK left the EU, with certain legislation coming into effect. This includes the GDPR we have become familiar with disappearing from the statute book and the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2019 coming into effect.

This regulatory agenda is designed to provide an overview of regulatory changes or new regulations recently passed, proposed, or on the agenda which are relevant to key compliance areas of VinciWorks’ clients in the UK. It includes legislative and government action on data protection, whistleblowing, modern slavery, DAC6, tax evasion, legal services, IR35 and more.

This edition of the regulatory agenda will cover the following:

  • EU developments
  • Bills before Parliament
  • Upcoming legislation
  • Current open consultations
  • Closed consultations
  • Key points of the Queen’s speech that are relevant to compliance
  • An analysis of the manifesto commitments of the last election

Download Regulatory Agenda

Cover of the guide to mental health

Around one in four adults in the UK experience mental health issues. These problems can often be exacerbated by work. The problem is that the vast majority of mental health training solutions require onsite, day-long, classroom-based external sessions that require a significant time and cost investment. Only the largest or most progressive companies can afford this form of training.

Convincing leadership to include company-wide mental health training in their budget and that effective training doesn’t need to come at a huge cost has proven to be a real challenge. VinciWorks has created a short guide to help present a business case for mental health training and get board buy-in.

The guide covers:

  • Some of the difficulties in getting board-level buy-in for action on mental health
  • Shocking statistics surrounding wellbeing at work
  • Guidance on how to get buy-in for mental health training
  • Business’ legal requirement to provide mental health training

Download the guide

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Cover of the DAC6 guide to UK implementation

Following engagement with relevant parties for over a year, together with a written consultation document and review period, HMRC laid their DAC6 Regulations before Parliament on 13 January 2020 under the International Tax Enforcement (Disclosable Arrangements) Regulations 2020, Statutory Instrument 2020 No. 25. However, trawling the Directive, the consultation paper and draft guidance to find that one piece of information you need is proving to be a real challenge.

We have summarised all of HMRC’s guidance into an easy-to-read guide answering many of the questions we’ve received from firms.

Here are some of the areas of DAC6 compliance the guide covers:

  • The extent to which Brexit will affect DAC6 implementation in the UK
  • Transfer of information between EU member states
  • Defining intermediaries and who needs to report
  • Reporting exemptions
  • Understanding hallmark categories

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Outside HMRC

On Wednesday 29 January, over 50 leading international firms joined us for our third DAC6 core group meeting. During the meeting, our panel, which included HMRC’s Policy Lead for DAC6, took questions from our 100-strong audience to try to make sense of the Directive and fill in some missing details. Here is a summary of the discussions with HMRC:

Brexit

Brexit will not have any immediate effect on the UK’s implementation of DAC6. The Directive will continue to apply in full at least for the duration of the transition period or until a deal is reached.

DAC6 reporting obligations

All intermediaries have a reporting obligation. The primary interest of HMRC is to receive the correct information about transactions so that they can assess whether a transaction needs further review.  While the Directive mandates reporting deadlines, reports should include as much relevant information as possible.

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Details of the extension of the trust registration service under the Fifth Directive

On 24 January 2020, HMRC launched their promised technical consultation on changes to the Trust Registration Service (TRS) to be made under the Fifth Anti-Money Laundering Directive.

The changes will focus on the registration requirements of all UK and many non-EU resident express trusts, whether or not they incur a UK tax consequence. This could extend the number of registrable trusts from around 200,000 to over two million. 

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With new research showing that poor mental health costs UK employers £45 billion a year, now more than ever is the time to take action on wellbeing. Mental health-related problems for businesses, including presenteeism, absences, and staff turnover, have increased 16% since Deloitte’s last survey in 2016.

Changes in work practices, particularly the ‘always on’ culture, have made it harder for employees to disconnect during their downtime, and employers haven’t yet figured out how to adapt to this new work culture.

Research from the CIPD found that two fifths of UK businesses have seen an increase in stress-related absences, with management style increasingly identified as the source of stress.

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DAC6 core group meeting photo of experts
From left to right: VinciWorks’ COO Josh Goodhardt, VinciWorks’ Legal and Research Exec Ruth Cohen, Freshfield’s Senior Knowledge Lawyer Brin Rajathurai, Transfer Pricing Services’ Founder Adrian Luca, VinciWorks’ CEO Howard Finger and VinciWorks’ Director of Best Practice Gary Yantin

29 January 2020, London

Over 100 people from 50 top law firms, accounting firms and banks gathered at the offices of Freshfields Bruckhaus Deringer in a meeting organised by VinciWorks to fire questions at HMRC regarding the latest EU tax transparency law, DAC6.

HMRC have just published legislation implementing DAC6 and firms are scurrying to fully get to grips with the tremendous impact it will have on how law firms, banks and accountants do business. In response to a question about the impact of DAC6, the head of compliance at a top-five global law firm described the Directive as “the most difficult piece of legislation we’ve ever had to grapple with”.

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Steel fabrication company receives second fine for health and safety breaches

A steel fabrication company has been fined after steel cages fell on a worker’s leg, causing multiple fractures.

In November 2017, an employee used a gantry crane to lift a steel cage from a stack at the companies main site in Essex. Each cage weighed an estimated 1188kg and were stacked between 2-4 cages high and unsecured. 

When the employee used the crane to lift the top cage from the stack, two cages at the bottom rolled onto his left foot and leg, which led to significant fracture injuries. The worker had to undergo reconstructive surgery to repair the damage and undergo extensive physiotherapy. 

The HSE found that the company did not implement a safe method for working with and storing the cages, and had not provided employees with sufficient information, instruction, training or supervision. In addition, the company failed to prepare an adequate risk assessment for the work task. 

The company pleaded guilty to breaching Section 2(1) of the Health and Safety at Work etc Act 1974. They were fined £130,000 with additional costs of £5,590.

The HSE had previously served them notices of improvement regarding lifting operations and its management of vehicles and pedestrians. In November 2018, the company was fined £100,000 for a breach of Section 2(1) of the Health and Safety at Work etc Act 1974 following a 2016 incident in which an employee was struck by unsecured steel rebar, causing life-changing leg injuries. 

Concluding the case, HSE Inspector Eleanor Kinman commented: “This incident could easily have been prevented if the company had adopted safe control measures for storing and handling cages, and adequately supervised the task.”

 

Company fined after delivery vehicle struck overhead powerline

A stone merchant has been fined for safety breaches after one of their vehicles made contact with an overhead electric power line.

Leeds Magistrates’ Court heard that on 25 July 2018, a truck delivering work materials to the company’s worksite was directed to tip its load close to the overhead power lines. As the tipping procedure was underway, the vehicle came in to contact with the live 11,000v powerlines. No one was injured during the incident.

An investigation by the Health and Safety Executive (HSE) found that a similar incident had taken place two years earlier. While no one had been injured in that incident, the electricity supplier had provided advice to help prevent further incidents. This first incident was not reported to HSE in line with RIDDOR regulations.

The only advice the company implemented was to place two small warning notices near the site. These signs were missed by the driver in the second incident.  

In court, the company pleaded guilty to breaching Regulation 3 of the Electricity at Work Regulations 1989 and Regulation 7 of the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013. They were fined £50,000 and ordered to pay £621 in additional costs.

Following the case, HSE inspector Julian Franklin noted: “Had the company reported the first incident to HSE and acted on the guidance from the electricity supplier, effective precautions could have been taken to avoid a repeat incident. This incident could have led to the death of the driver. Standard industry-wide precautions should be followed to avoid the risk of contacting high-voltage overhead lines.”

 

Construction company fined after untrained worker dies during demolition work

A construction company has received a fine after a father-of-two was killed when a re-enforced concrete slab collapsed underneath him during a demolition project.

On 14 April 2014, a 33-year-old labourer was working with an excavator operator at a worksite in London as part of an operation to demolish a multi-storey building. The worker had been using an oxy-propane lance to burn through reinforcing steel bars to assist the excavator’s efforts to remove part of the re-enforced concrete slab. Another worker noticed that their work had made the structure unsafe and work was stopped. However, the supervisor subsequently ordered the removal of props that were holding up the remaining slab. When the slab collapsed the worker, the excavator and its operator fell with it. 

The worker suffered fatal head injuries and died at the scene. The operator received injuries to their back.

The HSE’s investigation found that the worker had not received adequate training on the use of the lance. In addition, they had no training on the use of a safety harness which was not attached when the incident occurred. CCTV footage inspected following the incident recorded previous demolition work that had also been carried out in unsafe conditions. 

The construction company, who was also the principal contractor for the project, pleaded guilty to a breach of Section 22(1)(a) of the Construction (Design and Management) Regulations 2007. The company was fined £500,000 with £66,236 in additional costs.

On conclusion of the case, HSE inspector Andrew Verrall-Withers stated “In the weeks before this tragic incident workers were regularly put at risk of falling. This is a case of a company wanting to have good systems to protect the workers, but not paying enough attention to what was actually happening at the site. This young man’s death could have been prevented. He should not have been allowed to operate an oxy propane lance. Employers have a duty to check workers have sufficient skills, knowledge, experience and training before they allow them to use equipment.”