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Emergency Budget |
| July 2010 |
|
George Osborne presented his first Budget
on Tuesday 22 June 2010.
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Capital Gains Tax Changes |
| July 2010 |
|
A new rate of Capital Gains Tax (CGT) of
28% will be introduced. For individuals,
the rate of CGT remains at 18% where total
taxable gains and income, after taking
into account all allowable deductions
including losses, personal allowances and
the CGT annual exemption, are less than
the basic rate limit. The new 28% rate
will apply to gains or any parts of gains
above this limit.
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Standard Rate of VAT to Increase |
| July 2010 |
|
It is proposed to increase the standard
rate of VAT from 17.5% to 20% with effect
for any supply made on or after 4 January
2011. The rate change does not affect
either zero-rated supplies nor those
supplies subject to VAT at the 5% reduced
rate.
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HMRC amend PAYE Penalties Guidance |
| July 2010 |
|
At the start of the tax year new late
payment penalties were introduced for PAYE
and other payments due from employers. The
new rules apply to almost all employers
and contractors, whether they employ one
or a hundred employees. The rules apply to
monthly, quarterly and annual periods of
PAYE starting on or after 6 April 2010.
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Keep Proper Records! |
| July 2010 |
|
HMRC have recently issued a reminder about
the various 'toolkits' that they have
developed to assist agents when preparing
returns. Although the toolkits are aimed
at tax professionals, they highlight
common errors and the steps that can be
taken to reduce those errors.
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HMRC Launch Tax Credit Video |
| July 2010 |
|
Every year, tax credit claimants must
renew their tax credit awards by 31 July
or their payments may stop. Claimants on
‘nil awards’, and those receiving only the
full family element of Child Tax Credit,
will receive a statement of their 2009/10
award. If these details are correct no
further action is needed and the claims
are automatically renewed. However, if the
details on the award statement are wrong,
claimants must tell HMRC.
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Maternity Rights for the Self Employed
|
| July 2010 |
|
It appears as though the self employed
will become entitled to maternity leave
for the first time under new laws
introduced by the European Union (EU).
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The Budget - 22 June 2010 |
| June 2010 |
|
Chancellor of the Exchequer George Osborne
delivered his first Budget less than three
months after the final Budget of the last
parliament. The Conservative Party had
promised an ‘emergency’ Budget during the
election campaign, with a view that
quicker action was needed to bring down
the UK’s record budget deficit. While the
recession officially ended in the last
quarter of 2009, recovery has been
sluggish and Mr Osborne, together with his
coalition partners from the Liberal
Democrats, has had to balance the need to
raise taxes and cut spending with the
dangers of provoking a ‘double dip’
recession.
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Flexible Working – The World Cup |
| June 2010 |
|
Acas (the Advisory, Conciliation and
Arbitration Service) is advising employers
to be ready for the World Cup. Some
employees will be expecting their
employers to be flexible about working
hours so that they can watch matches.
Employers may also be worrying about their
employees being less productive, hung over
or sick following over enthusiastic
celebrations.
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State Pension Age and National Insurance
Contributions |
| June 2010 |
|
HMRC are reminding employers to take care
when deciding whether or not their
employees need to pay national insurance
contributions (NICs). Employees do not
need to pay NICs on reaching State Pension
age (SPa). Some payroll software warns
employers as women approach age 60 to
check their national insurance status as
previously women would have been exempt
from the employee contribution from age
60. This warning may now be being issued
too early.
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Budget Date Announced |
| June 2010 |
|
The new coalition government is settling
into office and a date has been announced
for the emergency Budget. Chancellor of
the Exchequer George Osborne will present
the emergency Budget on Tuesday 22 June
2010.
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Changes to the Advisory Fuel Rates from 1
June 2010 |
| June 2010 |
|
To reflect the increase in fuel prices,
HMRC have issued new advisory fuel rates
for employees driving employer provided
cars. These take effect for all journeys
undertaken from 1 June 2010, so employers
using the advisory rates should advise
affected employees and update any expense
forms as soon as possible.
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Child Trust Fund to be cut |
| June 2010 |
|
The government has outlined plans to make
changes to the Child Trust Fund as part of
plans to cut £6 billion in expenditure.
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Are there VAT Increases Ahead? |
| June 2010 |
|
The British Chamber of Commerce are
predicting that we should expect an
increase in VAT to help deal with the
country’s budget deficit.
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Holiday Entitlement |
| June 2010 |
|
With signs that spring is finally here
many employees will be planning or longing
for their summer holidays. Holiday
entitlement is one of the complex areas
which can cause employee dissatisfaction
if not handled correctly, especially for
those with part time or irregular hours.
Since 1 April 2009 the minimum statutory
holiday entitlement has been 5.6 weeks
inclusive of Bank Holidays, the equivalent
of 28 days for those employees working a
five day week. Employers may of course
offer more holiday if they wish.
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P11D Deadline Looming |
| June 2010 |
|
The forms P11D, and where appropriate P9D,
which report employees’ and directors’
benefits and expenses for the year ended 5
April 2010, are due for submission to HMRC
by 6 July 2010. The process of gathering
the necessary information can take some
time, so it is important that this process
is not left to the last minute.
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HMRC Warn of Email Rebate Scam |
| June 2010 |
|
HMRC are warning that taxpayers are being
emailed stating that they are entitled to
a tax rebate. These emails are being sent
from a number of bogus email addresses.
They inform recipients that they are
entitled to a tax rebate and invite them
to complete an online form to receive a
rebate of tax.
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Budget date set for 22 June |
| May 2010 |
|
The Chancellor, George Osborne, will
present his budget speech on Tuesday, 22
June, the government has announced.
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Penalty Guidance on Late Payment of PAYE
|
| May 2010 |
|
HMRC have been warning employers for some
time that they may have to pay a penalty
if they do not pay their PAYE deductions
on time. They have now issued more
detailed guidance on the way in which the
penalties will work. The penalties will
apply to PAYE deductions due for a period
starting on or after 6 April 2010 include
PAYE, Student Loan deductions,
Construction Industry Scheme payments,
Class 1 NICs, annual payments of
employers' Class 1A NICs and annual PAYE
Settlement Agreements payments.
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National Minimum Wage Rates |
| May 2010 |
From October 2010, National Minimum Wage
rates will increase from
- £5.80 to £5.93 an hour for workers
aged 21 and over
- £4.83 to £4.92 an hour for workers
aged 18 to 20
- £3.57 to £3.64 an hour for workers
aged 16 to 17.
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Furnished Holiday Letting Reprieve |
| May 2010 |
|
Getting the Finance Bill 2010 passed
between when it was published on 1 April
2010 and the dissolution of Parliament on
12 April was always set to be a heavy load
in spite of the fact that there were only
73 clauses and supporting schedules.
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P11D Deadline Looming |
| May 2010 |
|
The forms P11D, and where appropriate P9D,
which report employees and directors
benefits and expenses for the year ended 5
April 2010, are due for submission to HMRC
by 6 July 2010. The process of gathering
the necessary information can take some
time, so it is important that this process
is not left to the last minute.
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VAT and Royal Mail Postage |
| May 2010 |
|
Some types of postal services offered by
the Royal Mail will be subject to VAT from
31 January 2011.
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Online Submission of Employers Forms
|
| May 2010 |
|
The employer’s annual returns P35 and P14
(P60) are due for submission to HMRC by 19
May 2010. Broadly all employers must
submit their forms online this year.
Previously those employers with less than
50 employees could file paper forms.
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Budget 2010 |
| April 2010 |
|
Alistair Darling presented his third
Budget on Wednesday 24 March 2010.
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Annual Investment Allowance Increased
|
| April 2010 |
|
Most businesses are able to claim an
Annual Investment Allowance (AIA) on the
first £50,000 spent on plant and
machinery. This provides immediate 100%
tax relief on qualifying expenditure.
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Close Company Loan Write Offs |
| April 2010 |
|
Close companies, generally meaning family
and owner managed companies, are subject
to special rules in relation to loans or
advances made to participators and their
associates. Participators primarily means
shareholders. Where such loans are written
off or released an equivalent amount is
treated as a deemed net dividend for
income tax purposes.
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Entrepreneurs' Relief |
| April 2010 |
|
The amount of an individual’s capital
gains that can qualify for Entrepreneurs’
Relief are currently subject to a lifetime
limit of £1 million. Gains qualifying for
the relief are charged at an effective tax
rate of 10% rather than the usual rate of
18%.
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Inheritance Tax Nil Rate Band Frozen
|
| April 2010 |
|
As previously announced, the nil rate band
for 2010/11 will be frozen at the current
level of £325,000. This will now be
extended to cover the tax years 2011/12 to
2014/15.
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Payment Of VAT |
| April 2010 |
|
HMRC are advising businesses that from 1
April 2010 all cheque payments by post
will be treated as being received by HMRC
on the date when cleared funds reach
HMRC's bank account. This change does not
affect any cheque payments made by Bank
Giro.
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Employer Supported Childcare |
| April 2010 |
|
In 2009 the government announced changes
to employer supported childcare and HMRC
have now issued further guidance on the
changes.
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Official Rate Of Interest |
| April 2010 |
|
From 6 April 2010 the official rate of
interest applying to interest-free or low
interest loans made to employees will be
4%. The current rate is 4.75%. Employees
are generally liable to tax on a benefit
equal to the amount of interest,
calculated at the official rate, where the
balance of the loan exceeds £5,000 at any
point in the tax year.
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Fit Notes |
| April 2010 |
|
Fit notes will be brought into effect from
April 2010 and are a replacement for sick
notes. The information that doctors will
be asked to provide means that instead of
giving patients a sick note saying they
are too ill to work, they will be able to
advise whether a person may be fit for
work with some help and support, and what
employers can do to assist in this
process.
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The Budget 2010 |
| March 2010 |
|
Chancellor of the Exchequer Alistair
Darling delivered the last budget of this
parliament at a time when the focus has
shifted slightly from tackling the
recession to how to deal with the large
amounts of debt built up in doing so.
While the economic data over recent months
has been decidedly mixed, most economists
agree a recovery of sorts is under way for
now, although some fear the economy could
slide back into recession unless a
credible plan for dealing with the budget
deficit is presented. With a general
election only months away, normally a
‘giveaway’ budget could be expected, but
the state of the public finances has
largely prevented this.
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Budget date set for 24 March |
| March 2010 |
|
HMRC are warning taxpayers to be vigilant
as there have been several reports of scam
emails offering a tax repayment. Taxpayers
should not respond to any email promising
a tax repayment.
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HMRC Offer Advice on Fraud Emails |
| March 2010 |
|
HMRC are warning taxpayers to be vigilant
as there have been several reports of scam
emails offering a tax repayment. Taxpayers
should not respond to any email promising
a tax repayment.
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Managed Payment Plans |
| March 2010 |
|
HMRC has announced that they will launch a
new method of paying tax liabilities,
known as Managed Payment Plans, in April
2011.
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Student Loan Repayments |
| March 2010 |
|
HMRC have announced a new initiative to
reduce student loan over repayments for
those ex students who repay their loan
through PAYE deductions.
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Tax Codes Being Issued |
| March 2010 |
|
HMRC have updated their guidance on the
issue of multiple or incorrect PAYE tax
codes to some employees following the
introduction of their new National
Insurance and PAYE computer system.
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Vehicle Scrappage |
| March 2010 |
|
The Vehicle Scrappage Scheme is a
voluntary scheme for motor dealers under
which participating dealers give buyers a
£2,000 discount off the purchase price of
a new car (or certain types of small van)
in exchange for scrapping their old
qualifying vehicle.
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Inflation |
| March 2010 |
|
Government figures released show that the
inflation rate increased to 3.5% in
January 2010 from the previous month’s
figure of 2.9%.
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The Tax Health Plan (THP) |
| February 2010 |
|
HMRC have obtained information from
various sources, including NHS trusts,
private hospitals and medical insurers and
are introducing the THP as an opportunity
for medical professionals with tax to pay
to get their affairs up to date with the
benefit of a fixed penalty.
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HMRC New Scam Emails |
| February 2010 |
HMRC have issued a warning about a new
scam email which is being sent from ‘HMRC
Online Services –
test@test.com’ stating that the
recipient has one new ALERT message and
should log onto their Online Account to
read the message. |
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Employment Rights - Statutory Limits
|
| February 2010 |
|
The limit on the amount of the
compensatory award for unfair dismissal is
set to decrease from 1 February 2010. The
current maximum of £66,200 is to reduce to
£65,300, due to the decrease in the retail
prices index measure of inflation. This
new limit applies where the event giving
rise to the entitlement to the payment
arose on or after 1 February 2010.
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Tax Codes being issued |
| February 2010 |
|
HMRC are advising employees that between
January and March 2010 they will be
issuing new PAYE coding for 2010/11. The
tax codes should reflect the individual’s
personal circumstances and include the tax
allowances and reliefs that individuals
are entitled to.
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Scrappage Scheme |
| February 2010 |
|
The Vehicle Scrappage Scheme is a
voluntary scheme for motor dealers under
which participating dealers give buyers a
£2,000 discount off the purchase price of
a new car (or certain types of small van)
in exchange for scrapping their old
qualifying vehicle.
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Statutory Payments |
| February 2010 |
|
The new Statutory Payment Rates for
2010/11 have been announced.
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Tax Payments |
| February 2010 |
|
For those making tax and national
insurance payments, HMRC are reminding
that their bank details changed last
year.
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Extra National Insurance Burden Ahead
|
| January 2010 |
|
One of the significant announcements in
the Pre-Budget Report last month was a
further increase in national insurance
contributions (NIC) which is to take
effect from 6 April 2011.
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Special Annual Allowance Charge – New Limits
for 2009/10 |
| January 2010 |
|
In the Pre-Budget Report last month,
changes were announced to the complex
rules for the Special Annual Allowance (SAA)
charge which affects those with
substantial income who make significant
pension contributions. The current rate of
the SAA charge is 20% on excess pension
contributions. The aim of the charge is to
discourage individuals from making
significantly higher pension contributions
in anticipation of the removal of higher
rate tax relief which will occur in 2011.
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Bank Payroll Tax |
| January 2010 |
|
In a move designed to tackle certain
remuneration practices that are considered
to have contributed to ‘excessive risk
taking’ in the banking industry, a
temporary bank payroll tax of 50% is to
apply to certain bonuses regardless of how
they are paid. The tax will apply to the
amount of the bonus which exceeds £25,000
for any individual employee and is
applicable to banks, building societies
and other related financial businesses.
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Offshore Disclosure Extension |
| January 2010 |
|
HMRC is giving taxpayers with offshore
investments more time to come forward
under the New Disclosure Opportunity (NDO).
The registration deadline, which was due
to expire on 30 November 2009 has been
moved to 4 January 2010 as some banks need
more time to contact their offshore
customers.
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Changes to the Advisory Fuel Rates from 1
December 2009 |
| January 2010 |
|
To reflect the increase in fuel prices,
HMRC have issued new advisory fuel rates
for employees driving employer provided
cars. These take effect for all journeys
undertaken from 1 December, so employers
using the advisory rates should advise
affected employees and update any expense
forms as soon as possible.
|
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HMRC Warn of more Scam Emails |
| January 2010 |
|
As the new year gets underway, HMRC are
reminding taxpayers to be vigilant as scam
emails have been reported.
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Tax Relief on Nursery Vouchers |
| January 2010 |
|
Gordon Brown has revised his proposal to
withdraw the income tax and NI exemption
on employer-provided childcare vouchers.
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Cross-border VAT Changes 2010 |
| January 2010 |
|
HMRC have issued some important guidance
regarding the changes in the place of
supply of services rules which take effect
from 1 January 2010.
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| Christmas
Office Opening Hours |
| December 2009 |
The office will be closed for
Christmas between 24th and 28th of
December. From Tuesday 29 December
to Thursday 31 December there will
be on some days reduced levels of
staff so the phone may not always
be answered. Messages on the
answer machine will however be
monitored on a regular basis. The
office fully reopens on Monday 4
January. We take this
opportunity of wishing all our
clients and other readers a very
happy Christmas. |
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Pre-budget Report 2009 |
| December 2009 |
|
Alistair Darling will make
his Pre-Budget statement to the
House of Commons on Wednesday 9
December 2009 at 12:30.
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Intrastat Thresholds |
| December 2009 |
|
HMRC have announced significant
changes to the Intrastat
thresholds. Intrastat is used to
report the movement of goods
within the EU over certain
thresholds. Those traders with an
annual intra-EU trade in goods
exceeding the exemption thresholds
are required to provide monthly
statistical returns (Intrastat
Supplementary declarations).
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VAT and New Year’s Eve Traders
|
| December 2009 |
|
If you are going to be out
celebrating on New Year’s Eve or
indeed if your business will be
operating over midnight, you will
be glad to hear that the
government has announced a
relaxation of the VAT rules. Pubs,
clubs, restaurants and other
retail businesses remaining open
past midnight on New Year’s Eve
will be allowed to continue
charging VAT at 15% on their sales
until they close or until 6am on 1
January 2010, whichever is the
earlier.
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Parties for Employees |
| December 2009 |
|
Are you planning a party for your
employees? The good news is that,
unlike entertaining customers, the
costs of entertaining employees
are generally allowable against
the profits of the business.
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Swine Flu and SSP |
| December 2009 |
|
Under existing rules for Statutory
Sick Pay (SSP) employees can
self-certify for the first seven
days of their illness and
employers cannot ask for medical
evidence during this period. There
has been no change to this
requirement.
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Online Filing of VAT Returns |
| December 2009 |
|
HMRC are reminding businesses that
new rules on how VAT returns are
submitted and payments are made
will come into force next year.
Paper VAT returns will be phased
out from 1 April 2010.
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First Aid at Work |
| December 2009 |
|
The Health and Safety Executive
are reminding businesses that the
guidance for first aid at work
changed from 1 October 2009.
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Business Rates Bills |
| December 2009 |
|
The government has confirmed that
60% of business rates will fall
next year as a result of
revaluation and that it will not
collect a penny more of extra
revenue as a result of the 2010
revaluation, which is carried out
every five years. However, rates
bills for some businesses will
rise significantly.
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Directors' service addresses |
| November 2009 |
|
Changes introduced on 1 October
mean that every director must
provide Companies House with both
their usual residential address,
and a 'service address' for each
directorship they hold.
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Tax relief on nursery vouchers to be
withdrawn |
| November 2009 |
|
In his speech to the Labour Party
Conference, the Prime Minister,
Gordon Brown announced an
extension of free nursery places,
to be financed by the withdrawal
of the tax and National Insurance
(NIC) exemptions for childcare
vouchers.
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Scrappage scheme |
| November 2009 |
|
The Vehicle Scrappage Scheme is a
voluntary scheme for motor dealers
under which participating dealers
give buyers a £2,000 discount off
the purchase price of a new car
(or certain types of small van) in
exchange for scrapping their old
qualifying vehicle.
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Paying PAYE on time |
| November 2009 |
|
HMRC are warning employers that
from May 2010 they may have to pay
a penalty if they do not pay their
PAYE on time. These are generally
due each month, on time and in
full.
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31 October self assessment deadline
|
| November 2009 |
|
HMRC are warning taxpayers who
wish to file a paper (non
electronic) tax return for the
2008/09 tax year, should generally
reach them by midnight on Saturday
31 October 2009 (or be hand
delivered by Monday 2 November).
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Additional Paternity Leave and Pay
|
| October 2009 |
|
The government has announced its
intention to introduce Additional
Paternity Leave and Pay for
fathers of children due on or
after 3 April 2011.
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National Minimum Wage Increases
|
| October 2009 |
|
The adult rate of the National
Minimum Wage (NMW) increases to
£5.80 (£5.73) an hour from 1
October 2009. This is payable to
those age 22 and over.
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Pay for Apprentices |
| October 2009 |
|
From 1 August 2009 the minimum
wage for apprentices increased
from £80 to £95 per week.
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Online Filing of Corporation Tax
Returns |
| October 2009 |
|
HMRC have written to half a
million companies and their tax
agents, to advise them of
important changes to Corporation
Tax (CT) return filing. The
mail-shot contained a new HMRC
leaflet on the changes, which will
require all company tax returns
delivered after 31 March 2011 to
be filed online, for accounting
periods ending after 31 March
2010. The leaflet explains how,
after 31 March 2011, CT returns
must be filed online in a
specified data format (known as
Inline XBRL or iXBRL).
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Online Filing of VAT Returns |
| October 2009 |
|
HMRC are advising businesses that
new rules on how VAT returns are
submitted and payments are made
will come into force next year.
Paper VAT returns will be phased
out from 1 April 2010.
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Liechtenstein Disclosure Facility |
| October 2009 |
|
HMRC have announced details of the
Liechtenstein Disclosure Facility
(LDF) which has been introduced to
support the reviews to be carried
out by the Financial
Intermediaries in Liechtenstein to
identify those who may have
liability to UK tax. The LDF
allows people with unpaid tax
linked to investments or assets in
Liechtenstein to settle their tax
liability under this special
arrangement.
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New UK Border Agency Controls
|
| October 2009 |
|
The government has announced new
measures which should enable
resident workers to have every
opportunity to fill vacancies
before they are offered to workers
abroad.
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HMRC Warn of more Scam Emails |
| October 2009 |
|
HMRC have updated their guidance
on scam emails as they are aware
that a large number of individuals
are receiving emails offering tax
rebates. HMRC have also confirmed
that they would not inform
taxpayers of a tax rebate via
email, or request that they
complete an online form to receive
a rebate of tax.
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New Disclosure Opportunity |
| September 2009 |
|
HMRC have provided more details of
the New Disclosure Opportunity (NDO)
which is due to take place from 1
September 2009 to 12 March 2010.
The NDO is for people with unpaid
tax connected to offshore accounts
and assets and will give the
taxpayers one final opportunity to
disclose.
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‘False Self-Employment’ in the
Construction Industry |
| September 2009 |
|
The government has been looking at
the best way to address the issue
of what they believe is ‘false
self-employment’ in the
construction industry. They have
concluded, for income tax and
national insurance purposes, that
they will introduce legislation
which deems workers within the
construction industry to be in
receipt of employment income
unless one of three simple, clear
and easy to apply criteria is met.
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HMRC Warn of more Scam Emails |
| September 2009 |
|
HMRC have updated their guidance
on scam emails as they are aware
that a large number of individuals
are receiving emails offering tax
rebates. HMRC have also confirmed
that they would not inform
taxpayers of a tax rebate via
email, or request that they
complete an online form to receive
a rebate of tax.
|
|
| |
|
‘Paper’ Tax Return Deadline Looming |
| September 2009 |
|
For those wishing to complete
paper self assessment tax returns,
the filing deadline of 31 October
2009 is fast approaching.
|
|
| |
|
VAT Increase to 17.5% |
| September 2009 |
|
HMRC have issued guidance for
businesses dealing with the
increase in the standard rate of
VAT from 15% to 17.5%. The change
takes effect from 1 January 2010.
They hope that by issuing the
guidance well in advance of the
change that businesses will have
sufficient time to prepare.
|
|
| |
|
Pension Changes Ahead |
| September 2009 |
|
Under provisions contained in the
Pensions Act 2008 employee pension
enrolment and employer
contributions are to be made
compulsory.
|
|
| |
|
Redundancy Pay |
| September 2009 |
|
The weekly maximum pay which can
be taken into account when
calculating statutory redundancy
pay is set to increase from 1
October 2009.
|
|
| |
|
Cross-Border VAT Changes 2010
|
| September 2009 |
|
HMRC have issued important updates
in advance of the changes in the
place of supply of services rules
which take effect from 1 January
2010.
|
|
| |
|
Rise in Prosecutions for Employing
Illegal Workers |
| August 2009 |
|
Businesses are being warned to
undertake more rigorous checks
into applicants’ backgrounds as
the number of prosecutions for
employing illegal workers
increased over 500%, according to
Giant Precision a business process
outsourcer.
|
|
| |
|
|
| |
|
Business Payment Support Services |
| August 2009 |
|
According to government figures,
as at the end of April 2009, over
116,000 businesses have agreed
time to pay tax arrangements with
HMRC to the value of two billion
pounds.
|
|
| |
|
Redundancy Alternative |
| August 2009 |
|
The Confederation of British
Industry (CBI) has made a proposal
for an 'Alternative to Redundancy'
(ATR) scheme which could be
introduced as part of a package of
measures to reduce job losses.
|
|
| |
|
Starting a new Business |
| August 2009 |
|
HMRC have amended the form CWF1
which is completed by those
individuals who have set up a new
business either as a sole trader
or as a partner in a partnership.
The form is used to notify
liability to Class 2 National
Insurance Contributions (currently
£2.40 a week) amongst other
things.
|
|
| |
|
HSE Warning not to be misled over
new Law Poster |
| August 2009 |
|
The Health and Safety Executive (HSE)
is warning businesses not to be
misled into buying unnecessary and
expensive copies of the health and
safety law poster. Employers have
a duty to display the poster
prominently in the workplace or
provide employees with a copy of
the pocket card version. Both
poster and card set out the
employer’s and employees’
responsibilities.
|
|
| |
|
Swine Flu Advice for Businesses |
| August 2009 |
|
The UK has moved from the
'containment' to the 'treatment'
phase of swine flu (H1N1) as the
number of people catching swine
flu continues to rise.
|
|
| |
|
Scrappage Incentive Scheme
Successful |
| August 2009 |
|
According to the Society of Motor
Manufacturers and Traders (SMMT)
29,796 vehicles have been
registered under the scrappage
scheme since it started on 18 May
2009. This accounted for 9.7% of
June’s new car registrations a
total of 17,014 units. In addition
to cars 323 vans were also
registered in June under the
scheme (1.9% of van
registrations).
|
|
| |
|
Pension Payments |
| August 2009 |
|
Pension contributions made by an
individual are usually paid net of
basic rate tax. Where the
individual is a higher rate
taxpayer further relief is due
which significantly reduces the
net cost of the contribution.
|
|
| |
|
Advisory Fuel Rates |
| July 2009 |
|
To reflect the changes in fuel
prices, HMRC have issued new
advisory fuel rates for employees
driving employer provided cars.
These take effect for all journeys
undertaken from 1 July 2009 so
employers wishing to use the new
rates should advise affected
employees and update any expense
forms as soon as possible.
|
|
| |
|
HMRC New Disclosure Opportunity |
| July 2009 |
|
HMRC have announced some details
of the New Disclosure Opportunity
(NDO) which is due to take place
this autumn. In order to encourage
taxpayers to disclose an
undeclared offshore account the
penalty level has been set at 10%.
HMRC hope that the low penalty
will encourage taxpayers to come
forward. HMRC are currently
liaising with various banks to
obtain details for offshore
account holders.
|
|
| |
|
HMRC PAYE Services Interruption |
| July 2009 |
|
HMRC are advising taxpayers and
employers that, as part of its
ongoing plans “to improve customer
service and efficiency”, they are
in the process of changing the way
they process PAYE records. In
order to make all PAYE records
available on one computer system
they are undertaking a major IT
upgrade.
|
|
| |
|
Tax Credits Renewal Deadline |
| July 2009 |
|
Tax credits are state benefits
which are generally available to
lower income families. However,
entitlement to the credits is
significantly increased where
individuals pay for childcare or
suffer a drop in normal levels of
income perhaps due to incurring
trading losses or redundancy.
|
|
| |
|
Employees Accrue Holiday Pay while
on Sick Leave |
| July 2009 |
|
The House of Lords has ruled in
the case of Stringer v HMRC that
workers who are refused holiday
pay while on sick leave can make a
claim to an employment tribunal
for an unauthorised deduction from
wages (under the Employment Rights
Act 1996).
|
|
| |
|
Extra Paternity Leave put on Hold |
| July 2009 |
|
Proposals to introduce six months’
paid paternity leave for new
fathers have been put on hold by
the government in the light of the
current economic climate.
|
|
| |
|
HMRC Warn of Fraudulent Email |
| July 2009 |
|
HMRC are warning that an email is
currently being sent to some
taxpayers advising them that HMRC
have “approved them to receive
monies”. Apparently the email
states that this is as a result of
an HMRC program on 15 June 2009.
|
|
| |
|
Digital Britain |
| July 2009 |
|
The government has published its
report Digital Britain which sets
out the government’s plans for the
UK to be at the forefront of the
global digital economy.
|
|
| |
|
|
| |
|
Filing Tax Returns Online to be made
Compulsory |
| June 2009 |
|
Over the next few years, the
government will be changing the
way business owners have to manage
and pay some taxes, and making it
compulsory to file certain returns
and forms online.
|
|
| |
|
National Minimum Wage Increases
|
| June 2009 |
|
The adult rate of the National
Minimum Wage (NMW) will rise to
£5.80 (£5.73) an hour in October
2009. This is payable to those age
22 and over.
|
|
| |
|
Tips and the National Minimum Wage |
| June 2009 |
|
HMRC have won their case in the
Court of Appeal as to the
treatment of tips and service
charges for bar and restaurant
workers.
|
|
| |
|
UK Opt Out on 48 Hour Working Week |
| June 2009 |
|
The ability of UK employers to
allow employees to opt out from
the European Working Time
Directive is set to continue. This
means that, where employees wish,
they will still be able to work
more than 48 hours a week.
|
|
| |
|
Financial Services Compensation
Scheme |
| June 2009 |
|
The Financial Services Authority (FSA)
have provided a table listing the
largest UK deposit takers. The
list shows how the Financial
Services Compensation Scheme (FSCS)
limits would apply for most
customers but is not a complete
list of deposit takers covered by
the FSCS.
|
|
| |
|
P11D Deadline Looming |
| June 2009 |
|
The forms P11D and where
appropriate P9D, which report
employees and directors benefits
and expenses for the year ended 5
April 2009, are due for submission
to HMRC by 6 July 2009. The
process of gathering the necessary
information can take some time so
it is important that this process
is not left to the last minute.
|
|
| |
|
Landlords and Gas Safety |
| June 2009 |
|
Landlords letting property
equipped with gas appliances need
to ensure that they comply with
the law relating to gas safety. As
a landlord it is their
responsibility to ensure that any
pipe work, appliances and flues
provided for tenants are
maintained in a safe condition.
|
|
| |
|
Furnished Holiday Lettings |
| June 2009 |
|
The Budget 2009 contained
announcements about significant
changes to the rules for furnished
holiday lettings (FHL) but those
who are affected may have to act
fast.
|
|
| |
|
HMRC Warn of Email Scam |
| June 2009 |
|
HMRC are warning that they have
become aware that a large number
of individuals are receiving
emails offering tax rebates. These
emails, which are being sent from
HMRC Tax Refunds Online and HMRC
Tax Refunds On-line, are not
genuine.
|
|
| |
|
Vehicle Scrappage Scheme |
| June 2009 |
|
The vehicle scrappage or discount
scheme is a voluntary scheme for
motor dealers. Participating
dealers will give buyers a £2,000
discount off the purchase price of
a new car or small van in exchange
for scrapping their old qualifying
vehicle which must, amongst other
criteria, be registered on or
before 31 August 1999.
|
|
|
|
Practical tax planning strategies |
| May 2009 |
|
In his budget, the Chancellor has
not only brought forward tax
proposals which were due to take
place in 2011, he has also made
changes to his original
announcements. To ensure you keep
as much of what you earn as
possible, we have examined the
opportunities for practical tax
planning that exist.
|
|
| |
|
Personal Tax Changes |
| May 2009 |
|
The Chancellor has not only
brought forward proposals which
were to take place in 2011, he has
also made changes to his original
announcements.
|
|
|
|
Restricted Tax Relief on Pension
Contributions |
| May 2009 |
|
Pension contributions made by an
individual are usually paid net of
basic rate tax. Where the
individual is a higher rate
taxpayer further relief is due
which significantly reduces the
net cost of the contribution.
|
|
|
|
Enhanced Relief for Trading Losses |
| May 2009 |
|
Under current rules businesses
already have a number of
mechanisms to relieve trading
losses against other income
including past trading profits.
|
|
|
|
Capital Allowances on Plant and
Machinery |
| May 2009 |
|
Additional capital allowances are
to be available for expenditure
incurred by a business in the 12
month period (starting 1 April
2009 for companies and 6 April
2009 for individuals and
partnerships).
|
|
|
|
Standard Rate VAT |
| May 2009 |
|
The standard rate of VAT was
reduced from 17.5% to 15% for the
13 month period 1 December 2008 to
31 December 2009. HMRC have
confirmed that the standard rate
of VAT will revert to 17.5% from
1 January 2010.
|
|
|
|
VAT System for Cross-Border Trading |
| May 2009 |
|
A package of measures is being
introduced to simplify and
modernise the VAT system for
cross-border trading and to
counter fraud across the EU.
|
|
|
|
Bradford & Bingley Position of
Former Shareholders |
| May 2009 |
|
As you are no doubt aware, shares
in Bradford & Bingley plc were
taken into public ownership last
year. HMRC have issued guidance
relevant to former shareholders
and employees who were members of
employee share schemes.
|
|
|
|
Change of HMRC Bank Account Details |
| May 2009 |
|
HMRC bank account details for
paying self employed Class 2 and
voluntary Class 3 National
Insurance Contributions have
changed. HMRC have advised that
individuals will need to use the
new account details when making a
payment.
|
|
|
|
|
|
|
|
| |
|
|
| |
|
Changes to SSP for Agency Workers |
| April 2009 |
|
Following the Court decision in the
case of Thorn Baker Limited, the
Department for Work and Pensions (DWP)
have amended the legislation. This was
done to restore the Government’s
original policy intention that agency
workers who have contracts of less
than three months should be eligible
for Statutory Sick Pay (SSP) within
the first three months of their
contract.
|
|
| |
|
Statutory Maternity Leave, Salary
Sacrifice and Non-Cash Benefits |
| April 2009 |
|
Salary sacrifice is a change to an
employee’s contractual pay
entitlement. It often involves the
giving up of some entitlement to pay
in return for some other form of
benefit, such as employer pension
contributions or childcare vouchers.
Depending on the sort of benefit
involved, tax and/or National
Insurance savings can often result for
both the employer and employee.
|
|
| |
|
'How to Pay' Changes |
| April 2009 |
|
During 2009, HMRC will be changing the
bank accounts into which businesses
and individuals make payments. These
changes will be phased in throughout
the year but HMRC will keep businesses
and taxpayers informed of any changes.
|
|
| |
|
Avoiding and Resolving Workplace
Problems |
| April 2009 |
|
The legislation governing how
businesses deal with disputes with
their employees is changing from April
2009. The new simpler and more
flexible system is intended to save
businesses time and money.
|
|
| |
|
PAYE Changes |
| April 2009 |
|
HMRC have issued a reminder to
employers with 50 or more employees
that they must send their employee
starter and leaver information - P45s,
P46s and P46(Pen) for pensions -
online from 6 April 2009. As always,
failure to comply with these new rules
could result in a penalty.
|
|
| |
|
|
| |
|
Rise in Late Payments To SMEs |
| April 2009 |
|
According to Bacs Payments Schemes
Limited (Bacs) small and medium size
enterprises (SMEs) are now owed £25.9
billion. This is apparently due to a
40% increase in overdue payments over
the last year.
|
|
| |
|
Budget Day Confirmed |
| March 2009 |
|
Chancellor Alistair Darling will
present his Budget speech at 12.30pm
on Wednesday 22 April 2009.
|
|
| |
|
HMRC Announce Self Assessment Filing
Record |
| March 2009 |
|
According to HMRC, a record number of
taxpayers filed their 2007/08 self
assessment tax returns online. 5.75
million returns were filed online by
the 31 January 2009 deadline, beating
last year’s by over 50%.
|
|
| |
|
|
| |
|
Marks & Spencer VAT Win |
| March 2009 |
|
Marks and Spencer (M&S) won a landmark
victory last year in the European
Court of Justice (ECJ). The case
concerned whether or not HMRC were
correct to limit the amount of VAT
they repaid to the company after their
chocolate teacakes were reclassified
as a cake rather than a chocolate
biscuit. The issue of cakes and
chocolate biscuits is an important one
as cakes are zero rated rather than
standard rated. The case dates back
many years.
|
|
| |
|
Beneficial Loan Rate |
| March 2009 |
|
HMRC have announced a reduction in the
beneficial loan rate of interest from
6.25% to 4.75% from 1 March 2009.
This is the rate of interest which is
used to calculate the value of the
benefit provided to employees where
they receive a cheap or interest free
loan from their employer.
|
|
| |
|
Employment Rights - Statutory Limits |
| March 2009 |
|
The limits on payments and awards made
to workers in certain situations
increased from 1 February 2009, where
the event giving rise to the
entitlement to the payment arose on or
after this date. The increased limits
affect statutory redundancy payments
and compensatory awards for unfair
dismissal.
|
|
| |
|
Business Payment Support Services |
| March 2009 |
|
According to Government figures, over
60,000 businesses have agreed time to
pay tax arrangements with HMRC which
total more than one billion pounds.
|
|
| |
|
Employment Law Guidance Programme |
| March 2009 |
|
The Department for Business,
Enterprise and Regulatory Reform
Employment Law Guidance Programme is
designed to help employers save time
and money when complying with their
employment law obligations.
|
|
| |
|
|
| |
|
Don’t miss out on reclaiming VAT
|
| February 2009 |
|
Businesses involved in overseas trade
could be in line for a VAT refund
windfall on entertaining foreign
clients, but time is running out to
make backdated claims.
|
|
| |
|
Higher Late Filing of Accounts Penalties
– Watch Out! |
| February 2009 |
|
If you run your own company you will
no doubt be aware that company law
requires all companies to file a copy
of their annual accounts at Companies
House by their ‘due date’. Penalties
become payable if these accounts are
filed late.
|
|
| |
|
|
| |
|
Holidays |
| February 2009 |
|
On returning to work in the New Year,
many will be reaching for the travel
brochures to plan their next holiday
getaway. Now would be a good time to
ensure that your employees’ (or your
own) holiday entitlement has been
correctly calculated, especially as
many employees’ entitlement may need
to be increased due to a change in the
minimum holiday entitlement, which
takes effect later this year.
|
|
| |
|
Pay HMRC by Direct Debit |
| February 2009 |
|
HMRC have announced that they are now
able to offer more customers the
option of paying by Direct Debit. If
taxpayers are registered to use Self
Assessment Online, PAYE Online for
employers or Corporation Tax Online
they can now set up Direct Debit
payments online. Taxpayers can also
make tax credit repayments by Direct
Debit.
|
|
| |
|
Government Help for Businesses |
| February 2009 |
|
Richard Lambert, CBI Director-General,
has given his analysis of the
Government’s announcement on lending
in the economy.
|
|
| |
|
Reduction in the Standard Rate of VAT
|
| February 2009 |
|
The standard rate of VAT was reduced
from 1 December 2008 from 17.5% to
15%. HMRC have published some further
frequently asked questions which
clarify the correct treatment in
several situations.
|
|
| |
|
Health in Pregnancy Grant |
| February 2009 |
|
Pregnant women are being urged to
apply for the new Health in Pregnancy
grant of £190.
|
|
| |
|
New HMRC Penalties |
| February 2009 |
|
There is a significant change in the
approach which HMRC will be taking in
dealing with tax returns relating to
periods starting on or after 1 April
2008, where the return is due to be
submitted on or after 1 April 2009.
|
|
| |
|
|
| |
|
Business Payment Support Service
|
| January 2009 |
|
The Business Payment Support Service,
announced in the Pre-Budget Report
2008, is designed to meet the needs of
businesses affected by the current
economic conditions. Any business that
is worried about being able to meet
tax, National Insurance or other
payments owed to HMRC, or anticipates
that payments becoming due will cause
them problems, can get in touch with
HMRC to discuss payment options to
help them deal with temporary cash
flow difficulties on 0845 302 1435.
|
|
| |
|
Changes to the Advisory Fuel Rates from
1 January 2009 |
| January 2009 |
|
To reflect the reduction in fuel
prices, HMRC have issued new advisory
fuel rates for employees driving
employer provided cars. These take
effect for all journeys undertaken
from 1 January 2009, so employers
using the advisory rates should advise
affected employees and update any
expense forms as soon as possible.
|
|
| |
|
Demand for Advice on Redundancy and
Lay-Offs |
| January 2009 |
|
Acas, the Advisory, Conciliation and
Arbitration Service, have reported a
sharp increase in the number of
businesses and employees seeking
advice on redundancy, lay-offs and
business transfers.
|
|
| |
|
Cut in Interest Rates |
| January 2009 |
|
Commenting on the decision by the Bank
of England’s Monetary Policy Committee
to reduce interest rates by 1% to 2%
earlier this month.
|
|
| |
|
VAT - Extension of 14 Day Limit |
| January 2009 |
|
HMRC have issued further guidance to
businesses on the reduction in the
standard rate of VAT from 1 December
2008. The guidance clarifies certain
issues regarding the ‘tax point’ rules
for the date of supply.
|
|
| |
|
Double Up on your Duty Free |
| January 2009 |
|
Travellers can now bring back more
than double the amount of gifts and
souvenirs from outside the EU without
paying UK duty. The changes are as a
result of a proposal that Gordon Brown
made to the European Commission in
2004. The government has announced an
increase to the allowance for what are
known as 'other goods', which includes
souvenirs, clothing, electrical goods
and perfume.
|
|
| |
|
Capital Allowances on Cars |
| January 2009 |
|
HMRC have issued some draft
legislation and guidance on how the
tax relief on business cars, known as
capital allowances, will be calculated
from April 2009.
|
|
| |
