30 law


Protecting safety of machine operators


Protecting the health and safety of workers and visitors to the premises is a legal responsibility placed on all employers and, according to David Thompson, managing partner at Moore Blatch, it is vital to have robust procedures in place


The latest statistics released by the Health and Safety Executive (HSE) reveal that 148 workers were killed at work, 78,000 other injuries to employees were reported under RIDDOR (the Report of Injuries, Diseases and Dangerous Occurrences Regulations) and 175,000 over-7-day absence injuries occurred in the year 2012/2013.


Commenting on the issue, Thompson, who also heads up the firm’s health and safety team said: “Under the Health and Safety at Work Act,


employers need to ensure that the workplace is a safe environment, for both employees and visitors alike, and that all reasonable steps are taken to prevent accidents.


“The introduction and use of machinery is one area that needs careful consideration, with steps being taken to manage safety long before equipment is put into use.“


The use of machinery presents many potential risks for employees, from injury caused by moving parts, to parts of the body being drawn in, trapped or crushed – such as between rollers, belts and pulley drives.


Failing to ensure that dangerous/ moving parts of machinery are adequately guarded is an absolute offence. In other words, a prosecution can follow where companies have not adhered to this requirement even in cases where no accident or injury has occurred. If the HSE visits premises and notices dangerous/ moving parts of machinery are not adequately guarded, they can impose


David Thompson


a prohibition notice preventing the machine being used until it is rectified, which can impact on work and productivity.


Companies prosecuted for health and safety offences can face financial penalties of up to £20,000 in the magistrates court or an unlimited fine in the crown court.


Thompson concluded: “The best way to protect your employees, your productivity and to protect the business against prosecution is to ensure you have adequate health and safety procedures in place and know your responsibilities. For these


issues it is always wise to seek the advice from qualified health and safety consultants and experienced legal professionals.“


Five key steps to take to reduce the risk of injury from machinery: • Produce a process based risk assessment for carrying out the task itself • Check the machinery is complete and free from defects • Check all elements of possible safeguarding have been fitted – where possible use fixed guards to prevent access to moving parts and where fixed guards are not possible look for other measures, such as two- hand controls and interlocks • Control any remaining risk by providing employees with all the necessary training, instruction and safety equipment they need • Produce a safe system of work for using the machine and ensure there is a standard operating procedure handed out to all employees.


Details: David Thompson 023-8071-8037 david.thompson@mooreblatch.com www.mooreblatch.com


VAT must be charged on warehouse lease rents


Are you aware that landlords must charge VAT on rents payable under warehouse leases, whether or not the landlord has elected to waive exemption from VAT? asks Paris Smith partner James Snaith


Legislation became effective in October 2012 which was publicised as the imposition of VAT on charges made for “self storage“ facilities, whether or not an election has been made to waive the exemption from VAT in respect of those premises (see Revenue Information Sheet 5/14/12).


However, in August 2013, Revenue’s original note was withdrawn and a new one (IS 10/13) issued which explained that, while the relevant new wording in the Value Added Tax 1994 refers to “facilities for self storage of goods“, such facilities are actually defined in the legislation as “the use of a relevant structure for the storage of goods by the person ... to whom the grant of facilities is made“. As such the new provision applies to any a lease or licence of any “relevant structure“ (the whole or part of a container, unit or building).


Thus a landlord must charge his tenant VAT on the rent (or licence


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The following issues have been identified, some of which are addressed in the new guidance note, others are not:


1. Is it the actual use of the premises which counts or the landlord’s intention in respect of the use (as expressed in the lease)? Both are relevant, although the guidance places primary emphasis on the actual use.


fee) on warehouse-type premises even if the general exemption from VAT on property has not been waived, unless the tenant itself allows the premises to be used for storage by others.


So what appears to have started off as a simple adjustment intended to close the gap between the charging of VAT for the provision of self storage services and self storage facilities has created a whole new area of VAT complexity.


2. What if the main use is not storage, but there is ancillary storage? The primary use counts.


3. What happens if the tenant starts using the premises primarily for storage without the landlord being aware? The landlord will need to be pro- actively aware of the use of the premises made by the tenant and the premises may fall in and out of the VAT charge at different times. The user provisions in the lease may assist


in preventing an unexpected VAT charge arising.


4. Will a business which is not liable to register for VAT (for example because it trades below the VAT threshold) have to charge VAT for storage premises? No. Note however that foreign investors in UK property are now usually automatically required to register for VAT, if their receipts exceed the threshold.


5. Is VAT chargeable on rents payable on empty premises? Yes.


Key lessons for landlords are that they should make certain that they can charge their tenants/licensees VAT under relevant lease or licence and also consider waiving exemption from VAT in relevant cases in order to minimise the additional administrative burden of monitoring use.


Details: James Snaith 023-8048-2254 james.snaith@parissmith.co.uk


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2014


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