I would say that the problem is with the HMRC forms, which should have been designed to strip out the blanks (a relatively simple job for the form designer). As mentioned, many codes have spaces in them. It makes them much easier to read and identify. Forms should acknowledge both formats.
Copy and paste is definitely the reliable way to go. Just had that problem this morning with 2 digits reversed in a login name - it took a long time to realise why it wouldn't work.
My answers
DLA
I suspect not everyone realised what DLA referred to. It took me quite a while to work it out.
The advice to run the mobile through the company was good as no P11D benefit arises, but HMRC do insist that the contract is in the company name.
I think it's fairly obvious that it continues at 4% effective. How often you choose to present invoices can have no bearing on the vat due.
Loan instead
Pub could try calling the first 3 payments a loan, to be repaid on the 4th payday.
I expect it bends some of the rules, but might be acceptable. Pub needs to be made aware of this effect, brought about by RTI.
Spaces in VAT numbers
I would say that the problem is with the HMRC forms, which should have been designed to strip out the blanks (a relatively simple job for the form designer). As mentioned, many codes have spaces in them. It makes them much easier to read and identify. Forms should acknowledge both formats.
Copy and paste is definitely the reliable way to go. Just had that problem this morning with 2 digits reversed in a login name - it took a long time to realise why it wouldn't work.