Business basics — answers to your common retail problems

Job reference
Question An employee who left to start another job without giving notice has been sacked from his new job. He has now asked me for a reference. Am I obliged to give one?

Answer No. However, if you do give a reference you should tell the whole truth. Following a House of Lords decision, it is now understood that employers have a duty of care to departing employees in what they say.

If, as a referee, an employer fails to disclose relevant facts that will have an impact on an employee’s new job, he can be in trouble. It is unclear how this affects an employer in circumstances like your own, so be cautious.

Accounting for VAT
Question Paying VAT on a quarterly basis is a painful experience, particularly when the amount due is based on bills that customers have not yet paid. Is there an easier system for a small trader not possessing expensive accounting tools?

Answer Ask your local inspector about the cash accounting scheme under which VAT is based on payment actually received and sums paid out.

Also ask about the possibility of filing VAT returns on an annual instead of quarterly basis, and whether you would qualify to register for the scheme under which VAT is calculated as a percentage of turnover.