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Accountancy News Archive from sdg accountants
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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 |
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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 |
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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
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| December 2009 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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
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| November 2009 |
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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
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| October 2009 |
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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
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| October 2009 |
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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 |
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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 |
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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 |
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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 |
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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
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| October 2009 |
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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 |
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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 |
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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 |
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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 |
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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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‘Paper’ Tax Return Deadline Looming |
| September 2009 |
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For those wishing to complete
paper self assessment tax returns,
the filing deadline of 31 October
2009 is fast approaching.
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VAT Increase to 17.5% |
| September 2009 |
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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.
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Pension Changes Ahead |
| September 2009 |
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Under provisions contained in the
Pensions Act 2008 employee pension
enrolment and employer
contributions are to be made
compulsory.
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Redundancy Pay |
| September 2009 |
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The weekly maximum pay which can
be taken into account when
calculating statutory redundancy
pay is set to increase from 1
October 2009.
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Cross-Border VAT Changes 2010
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| September 2009 |
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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.
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Rise in Prosecutions for Employing
Illegal Workers |
| August 2009 |
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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.
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Business Payment Support Services |
| August 2009 |
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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.
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Redundancy Alternative |
| August 2009 |
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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.
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Starting a new Business |
| August 2009 |
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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.
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HSE Warning not to be misled over
new Law Poster |
| August 2009 |
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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.
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Swine Flu Advice for Businesses |
| August 2009 |
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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.
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Scrappage Incentive Scheme
Successful |
| August 2009 |
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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).
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Pension Payments |
| August 2009 |
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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.
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Advisory Fuel Rates |
| July 2009 |
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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.
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HMRC New Disclosure Opportunity |
| July 2009 |
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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.
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HMRC PAYE Services Interruption |
| July 2009 |
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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.
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Tax Credits Renewal Deadline |
| July 2009 |
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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.
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Employees Accrue Holiday Pay while
on Sick Leave |
| July 2009 |
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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).
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Extra Paternity Leave put on Hold |
| July 2009 |
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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.
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HMRC Warn of Fraudulent Email |
| July 2009 |
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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.
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Digital Britain |
| July 2009 |
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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.
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Filing Tax Returns Online to be made
Compulsory |
| June 2009 |
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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.
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National Minimum Wage Increases
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| June 2009 |
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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.
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Tips and the National Minimum Wage |
| June 2009 |
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HMRC have won their case in the
Court of Appeal as to the
treatment of tips and service
charges for bar and restaurant
workers.
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UK Opt Out on 48 Hour Working Week |
| June 2009 |
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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.
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Financial Services Compensation
Scheme |
| June 2009 |
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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.
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P11D Deadline Looming |
| June 2009 |
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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.
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Landlords and Gas Safety |
| June 2009 |
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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.
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Furnished Holiday Lettings |
| June 2009 |
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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.
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HMRC Warn of Email Scam |
| June 2009 |
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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.
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Vehicle Scrappage Scheme |
| June 2009 |
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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.
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Practical tax planning strategies |
| May 2009 |
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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.
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Personal Tax Changes |
| May 2009 |
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The Chancellor has not only
brought forward proposals which
were to take place in 2011, he has
also made changes to his original
announcements.
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Restricted Tax Relief on Pension
Contributions |
| May 2009 |
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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.
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Enhanced Relief for Trading Losses |
| May 2009 |
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Under current rules businesses
already have a number of
mechanisms to relieve trading
losses against other income
including past trading profits.
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Capital Allowances on Plant and
Machinery |
| May 2009 |
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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).
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Standard Rate VAT |
| May 2009 |
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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.
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VAT System for Cross-Border Trading |
| May 2009 |
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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.
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Bradford & Bingley Position of
Former Shareholders |
| May 2009 |
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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.
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Change of HMRC Bank Account Details |
| May 2009 |
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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.
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Changes to SSP for Agency Workers |
| April 2009 |
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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.
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Statutory Maternity Leave, Salary
Sacrifice and Non-Cash Benefits |
| April 2009 |
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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.
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'How to Pay' Changes |
| April 2009 |
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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.
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Avoiding and Resolving Workplace
Problems |
| April 2009 |
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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.
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PAYE Changes |
| April 2009 |
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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.
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Rise in Late Payments To SMEs |
| April 2009 |
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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.
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Budget Day Confirmed |
| March 2009 |
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Chancellor Alistair Darling will
present his Budget speech at 12.30pm
on Wednesday 22 April 2009.
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HMRC Announce Self Assessment Filing
Record |
| March 2009 |
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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%.
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Marks & Spencer VAT Win |
| March 2009 |
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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.
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Beneficial Loan Rate |
| March 2009 |
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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.
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Employment Rights - Statutory Limits |
| March 2009 |
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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.
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Business Payment Support Services |
| March 2009 |
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According to Government figures, over
60,000 businesses have agreed time to
pay tax arrangements with HMRC which
total more than one billion pounds.
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Employment Law Guidance Programme |
| March 2009 |
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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.
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Don’t miss out on reclaiming VAT
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| February 2009 |
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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.
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Higher Late Filing of Accounts Penalties
– Watch Out! |
| February 2009 |
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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.
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Holidays |
| February 2009 |
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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.
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Pay HMRC by Direct Debit |
| February 2009 |
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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.
|
|
| |
| Christmas Office
Opening Hours |
| December 2008 |
The office will be closed for Christmas
between 24th December and re open on 2nd
January. Messages left on the answer
machine will however be monitored on a
regular basis. We take this opportunity
of wishing all our clients and other
readers a very happy Christmas. |
|
| |
|
Standard Rate VAT |
| December 2008 |
|
The standard rate of VAT will be reduced
from 17.5% to 15% for the period 1
December 2008 to 31 December 2009. The
rate will then revert to 17.5%. No changes
have been made to the 5% reduced rate or
the 0% rate.
|
|
| |
|
Proposed Personal Tax Changes |
| December 2008 |
|
The government has announced significant
changes to the system of personal
allowances and tax rates for the next few
years. These mainly impact on those with
higher levels of income.
|
|
| |
|
Corporation Tax Changes |
| December 2008 |
|
The main rate of corporation tax which
applies to companies with profits of more
than £1.5 million fell to 28% from 30%
from 1 April 2008.
|
|
| |
|
Taxation of Business Travel |
| December 2008 |
|
Further details have been provided on the
changes to the capital allowance treatment
of cars. The changes will have effect
from 1 April 2009 for corporation tax
purposes and 6 April 2009 for income tax.
The special rules that restrict the amount
of capital allowances for cars costing
more than £12,000 will be abolished.
|
|
| |
|
Discipline and Grievance Code of Practice
|
| December 2008 |
|
Acas (Advisory, Conciliation and
Arbitration Service) has made available a
revised Code of Practice dealing with
discipline and grievance procedures. The
Code has been approved by the Secretary of
State for Business, Enterprise and
Regulatory Reform. The draft guidance will
now be put before Parliament for approval.
|
|
| |
|
Pension Forecast |
| December 2008 |
|
Do you know how much your state pension
could be when you retire? The Pensions
Service will provide a forecast of this
information either by letter or an online
email service.
|
|
| |
|
Tougher Penalties for Health and Safety
Offences |
| December 2008 |
|
New legislation under the Health and
Safety Offences Act 2008 will increase
penalties and provide courts with greater
sentencing powers for those who flout
health and safety legislation.
|
|
| |
|
Child Trust Fund |
| December 2008 |
|
According to HMRC data the success of the
Child Trust Fund (CTF), the tax exempt
long-term savings and investment account
for children born on or after 1 September
2002, continues to grow.
|
|
| |
|
Parties for Employees |
| December 2008 |
|
Are you planning a party for your staff?
Make sure you are clear on the tax
implications.
|
|
|
Clean up at the Cumbria Community Awards |
| November 2008 |
Pictured: with awards - Graham
Bromley,
Left - Scott Gomersall from our
office. |
The
awards ceremony has now taken place
and the results are in.........It
gives us great satisfaction to
announce Graham Bromley was crowned
Volunteer of the Year.
Graham was nominated by John
Irving, of Cumbria Police and without
question is a very deserving recipient
of this award.
The good news for the evening
didn't stop there, as Marsh Street
Arches & Garden project received the
Greener Communities Award, sponsored
by Resource Cumbria.
The project was nominated for the
award by Ian Bell, of Furness Building
Society.
sdg accountants would like to
congratulate Graham on his personal
achievement and we look forward to
working together in the future
development of the Marsh Street Arches
& Garden project.
|
|
|
| |
|
VAT changes |
| November 2008 |
|
In his Pre-Budget Report this week,
Chancellor Alistair Darling announced that
the standard rate of VAT will be reduced
from 17.5% to 15% on 1 December 2008.
|
|
| |
|
The Pre-Budget Report 2008 |
| November 2008 |
Chancellor of the Exchequer Alistair
Darling has delivered a much-anticipated
Pre-Budget Report against a backdrop of
economic slowdown and turbulence in the
global economy, which has steadily
deteriorated since the 2008 Budget on 14
March. He emphasised that the measures
set out were designed to help families and
businesses through “economic uncertainty
not seen for generations” and to position
the UK to take full advantage of a future
recovery in the UK economy. |
|
|
|
|
Award Nomination for Marsh Street Arches
project |
| November 2008 |
Pictured: Centre Left - Scott
Gomersall from our office, Centre -
John Hutton MP Centre Right - Graham
Bromley |
As many of you know
we are a proud partner of Marsh Street
Arches Garden & Community Interest
Company. The project has recently
been selected as one of two finalists
in the Greener Communities category of
the Cumbria Community Awards.
The event will take place on Thursday
the 13th November at Rheged, Redhills
near Penrith. Fingers crossed
this project will get the recognition
it deserves.
A recent visit to the Garden from
John Hutton MP was also a great
success.
|
|
|
| |
|
Improvements announced to State Pension
Scheme |
| November 2008 |
|
The DWP announced last week that the
Government is proposing an amendment to
the Pensions Bill which will allow some
people to make up to six additional years
of voluntary (Class 3) NI contributions in
addition to those permitted under existing
time limits.
|
|
| |
|
Intestacy rules |
| November 2008 |
|
The Ministry of Justice has announced an
increase in the amount of the statutory
legacy on intestacy. The statutory legacy
is the amount which an individual is
entitled to receive from the estate of
their husband, wife or civil partner where
the individual has not made a Will.
|
|
| |
|
|
| |
|
Shopping on the Internet |
| November 2008 |
|
HMRC have updated their guidance on buying
goods on the internet explaining when duty
and / or VAT will need to be paid.
|
|
| |
|
Changes to rights during maternity leave
|
| November 2008 |
|
Following changes made to the Sex
Discrimination Act and to the Maternity
and Parental Leave Regulations, the law on
contractual terms of employment during
Additional Maternity Leave (AML) changed
in respect of women whose babies were due
on or after 5 October 2008. The date the
baby is due, as shown on the MATB1
certificate (provided by the midwife or
doctor at around 20 weeks into the
pregnancy) is the relevant date and not
the date the baby is actually born.
|
|
| |
|
Gift aid form amended |
| November 2008 |
|
HMRC have updated their model Gift Aid
declaration form for charities and
community amateur sports clubs to reflect
the reduction in the basic rate of tax
from 22% to 20% from the beginning of this
tax year.
|
|
| |
|
Entrepreneurs’ relief |
| November 2008 |
|
The system of capital gains tax (CGT) for
individuals and trustees changed radically
from 6 April 2008. The changes included
the abolition of taper relief and
indexation allowance and the introduction
of a single rate of CGT of 18%.
|
|
| |
|
|
| |
|
Mandatory Company Trading Disclosures |
| November 2008 |
|
From 1 October 2008, new rules are in
place to unify and replace the various
regulations setting out the trading
disclosures that incorporated companies
must make to show their legal
identity. This is now being monitored by
Trading Standards and can result in a
£5000 fine.
|
|
|
Extra Take Home Pay |
| October 2008 |
|
For many employed individuals who are
checking their payslip this month it
should include a welcome bonus of a £60
reduction in their income tax deduction.
The reason for this is the increase in the
personal allowance which finally took
effect for paydays from 7 September. Don’t
expect the bonus each month as the effect
for October onwards will be a reduction in
tax of £10 a month!
|
|
| |
|
Temporary Exemption on Stamp Duty Land Tax
|
| October 2008 |
|
In a move to help the property market and
first time buyers, Alistair Darling has
introduced a Stamp Duty Land Tax (SDLT)
exemption or holiday for purchases of
residential property from 3 September 2008
to 2 September 2009 (inclusive). The
exemption effectively raises the current
nil rate band of £125,000 (£150,000 in
disadvantaged areas) to £175,000 for the
period of one year only.
|
|
| |
|
Fake HMRC Emails |
| October 2008 |
|
HMRC are warning taxpayers that they are
aware of a high number of emails being
sent out offering a tax rebate. The
warning confirms that HMRC do not email
taxpayers advising them of tax rebates or
invite them to complete an online form to
receive a rebate.
|
|
| |
|
NMW Rates to Rise |
| October 2008 |
|
National Minimum Wage (NMW) rates are set
to rise from 1 October 2008.
|
|
| |
|
Gift Aid Transitional Relief |
| September 2008 |
|
Charities are entitled to claim a tax
repayment in respect of gift aid donations
made by individuals. The tax repayment was
22% until 5 April 2008 being the basic
rate of tax on payments made through gift
aid. As you are no doubt aware the basic
rate of tax was reduced to 20% from the
beginning of this tax year. In order to
compensate charities for this drop in
income the government has introduced Gift
Aid Transitional Relief which tops up the
tax repayment due to the charity until 5
April 2011.
|
|
| |
|
‘Paper’ Tax Return Deadline Looming |
| September 2008 |
|
HMRC are reminding taxpayers who wish to
complete paper self assessment tax returns
that the new 31 October 2008 deadline is
‘only weeks away’.
|
|
| |
|
Licence to Bring in Migrant Workers |
| September 2008 |
|
The UK Border Agency has started a
television campaign aimed at employers to
help prepare them for the introduction of
the government's new rules for skilled
migrant workers which become effective
from November 2008.
|
|
| |
|
Careless Drivers |
| September 2008 |
|
Under the new careless driving laws, which
came into effect from 18 August 2008,
motorists who kill whilst avoidably
distracted at the wheel will face prison.
|
|
| |
|
Extra Personal Allowances |
| August 2008 |
|
HMRC have now issued further guidance on
the increase in the personal tax allowance
which is due to take effect from 7
September 2008.
|
|
| |
|
Report on HMRC's Lost Discs |
| August 2008 |
|
Alistair Darling has made a statement to
Parliament following the Poynter Review,
which was commissioned following the loss
of the child benefit data discs. The
Independent Police Complaints Commission (IPCC)
has also issued a report into the
circumstances surrounding the loss.
|
|
| |
|
Professional Subscriptions |
| August 2008 |
|
Do you pay any professional
subscriptions? If so then tax relief may
be due on the subscription as long as the
professional body appears on the latest
HMRC list. The list includes all bodies
approved by HMRC up to 30 May 2008.
|
|
| |
|
HMRC Penalties for Errors |
| August 2008 |
|
HMRC have issued revised guidance on the
system of penalties which they will be
able to apply to taxpayers.
|
|
| |
|
£10,000 VAT Errors |
| August 2008 |
|
Businesses have long been allowed to
correct net errors not exceeding £2,000 in
their VAT returns. From the first new VAT
period commencing on or after 1 July 2008,
HMRC have raised the previous limit of
£2,000 to a minimum figure of £10,000.
|
|
| |
|
HMRC Powers |
| August 2008 |
|
HMRC has been busy aligning its own rights
and powers following the merger, several
years ago, between the two old
organisations of the Inland Revenue and HM
Customs. This process will take a number
of years as the different organisations
previously had different powers, from
rights to view paperwork and in some cases
to rights of access to business premises.
|
|
| |
|
|
|
Advisory Fuel Rates |
| July 2008 |
|
To reflect the increases 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 2008 so employers
wishing to use the new rates should advise
affected employees and update any expense
forms as soon as possible.
|
|
| |
|
Illegal Working |
| July 2008 |
|
For many years, there have been
requirements for employers to verify the
identity of their workers in order to
prevent illegal working. Penalties under
the Immigration, Asylum and Nationality
Act 2006 were increased from 29 February
2008 and the Home Office UK Border Agency
website has been updated to show a list of
employers fined since the introduction of
the revised penalties. The website which
lists employers fined, by region, will be
updated on a monthly basis.
|
|
| |
|
Employees’ Mileage Payments |
| July 2008 |
|
As you may be aware there is a statutory
system of tax and NIC free mileage rates
for business journeys in an employee’s own
vehicle. These mileage payments are known
as ‘Authorised Mileage Allowance Payments’
(AMAP).
|
|
| |
|
Tax Credits Renewal |
| July 2008 |
|
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 have a
dip in normal levels of income perhaps due
to incurring trading losses.
|
|
| |
|
Increase In Personal Allowances |
| July 2008 |
|
Tucked away in a recent issue of ‘Notes
for payroll software developers’ is a bit
more information on the timescale for the
increase in the current year’s personal
allowance from £5,435 to £6,035 and the
reduction in the higher rate point from
£36,000 to £34,800. These changes mean
that basic rate taxpayers will benefit by
£120 per tax year whilst the position of
higher rate taxpayers will be unchanged.
|
|
| |
|
10% Tax Rate Climb Down |
| June 2008 |
|
We live in quite amazing times in the
world of tax. Over a year ago, in
Gordon Brown’s last Budget speech as
Chancellor, the so-called ‘abolition’
of the 10% starting rate was
announced. The government’s reason for
this was, and still remains, the
simplification of the tax system.
|
|
| |
|
Take Care What Information you Post on
the Internet |
| June 2008 |
|
It has been reported in the Daily
Express that tax inspectors are
searching social networking sites for
potential tax evaders, who may be
‘advertising’ their wealth or assets
which may lead HMRC to believe they
have ‘hidden’ remuneration.
|
|
| |
|
Flexible Working Extension |
| June 2008 |
|
The government has announced plans to
extend the right to request flexible
working to parents with children up to
the age of 16.
|
|
| |
|
SMP and Salary Sacrifice Arrangements
|
| June 2008 |
|
HMRC have published some guidance on
the complex area of salary sacrifice
and entitlements to both statutory
maternity pay and continuing non cash
benefits during maternity leave.
|
|
| |
|
P11D Deadline Looming |
| May 2008 |
|
The forms P11D, which report employees
and directors benefits in kind and
expenses, are due for submission by 6
July 2008 for the year ended 5 April
2008. The process of tracking down the
information can take some time so it
is important that you don’t leave
things until the last minute.
|
|
| |
|
Employees Entitled to Know More |
| May 2008 |
|
The Information and Consultation of
Employees Regulations 2004 have been
extended to cover undertakings with 50
or more employees from 6 April 2008.
|
|
| |
|
Entrepreneurs’ Relief |
| May 2008 |
|
After business leaders voiced their
objections to the abolition of taper
relief, the Chancellor introduced a
new Entrepreneurs’ Relief (ER). ER may
be available for disposals,
reorganisations and relevant
transactions taking place on or after
6 April 2008.
|
|
| |
|
10% Rate of Income Tax |
| May 2008 |
|
Since the start of the tax year the
basic rate of income tax has been
reduced from 22% to 20% and the
starting rate of 10% abolished for
income except for savings and dividend
income.
|
|
| |
|
|
| |
|
Entrepreneurs' Relief Draft Legislation
|
| April 2008 |
|
In the Pre-Budget Report last October
Chancellor Alistair Darling announced
a series of changes to the capital
gains tax (CGT) regime for individuals
and trustees. These changes included
the abolition of taper relief and
indexation relief and the introduction
of a single rate of CGT of 18%. The
changes take effect from 6 April 2008.
|
|
| |
|
‘Income Shifting’ Legislation Delayed
|
| April 2008 |
|
For many years, there have been
requirements for employers to verify
the identity of their workers, to
prevent illegal working. The
legislation was backed up with fines.
|
|
| |
|
Online Submission of Employers Forms
|
| April 2008 |
|
The employers annual returns P35 and
P14 (P60) are due for submission to
HMRC by 19 May 2008. There is a tax
free incentive payment due of £100 for
small employers, those with less than
50 employees, who successfully file
their returns electronically.
|
|
| |
|
|
| |
|
The Budget 2008 |
| 12 March 2008 |
Alistair Darling has delivered his
first Budget as Chancellor of the
Exchequer. His focus was very much on
stability against a backdrop of
economic slowdown and turbulence in
the global financial budgets. His
50-minute speech delivered few shocks
as Mr Darling said the government
would do everything in its power to
keep Britain’s economy strong and
inflation low, although there was
“green” thread running through the
Budget. |
|
| |
|
Illegal Working Changes |
| March 2008 |
|
For many years, there have been
requirements for employers to verify
the identity of their workers, to
prevent illegal working. The
legislation was backed up with fines.
|
|
| |
|
|
| |
|
Expenses for Employees |
| March 2008 |
|
Normally, the payment or reimbursement
of expenses or the provision of a
benefit in kind is taxable on the
employee. However, particularly with
expenses, it may well be that the
employee is entitled to tax relief
personally on the same amount. In
order to obtain the relief, the
employee would have to write to HMRC
or fill out a tax return.
|
|
| |
|
Employer and Contractor Returns Interim
Penalties |
| March 2008 |
|
HMRC have announced that they have
started sending penalty notices where
their records show that they have not
received 2006/07 forms P35 and P14
(the employer’s annual return and end
of year summary). Similar penalties
are also being issued where 2006/07
form CIS36 (the contractor’s annual
return) is outstanding.
|
|
| |
|
Funds to Help Dispute Resolution
|
| March 2008 |
|
The government has announced up to
£37m of funding to prevent work place
disputes unnecessarily going to
employment tribunals. The measures are
part of a package designed to simplify
the dispute resolution system.
|
|
| |
|
Had Problems Filing your Tax Return on
Time? |
| March 2008 |
|
It will come as little surprise that,
once again, an HMRC online system
crashed an important time of year.
This time it was the self assessment
online service that was disrupted on
31 January 2008 and 1 February 2008.
|
|
| |
|
|
| |
|
Benefits in Kind and Expenses in the
Payroll |
| March 2008 |
|
HMRC have published a consultation
document on payrolling benefits in
kind. The idea is that payrolling
benefits in kind would remove the need
for employers to complete P11Ds.
|
|
| |
|
No PAYE/NIC or CIS Deduction Payments
Due |
| March 2008 |
|
Even if no PAYE/NICs or CIS deductions
payments are due for a given month or
quarter, businesses are still
generally required to notify HMRC by
way of a ‘nil’ return.
|
|
|
|
Entrepreneurs’ Relief |
| February 2008 |
|
In the Pre-Budget Report in October 2007 the
Chancellor, Alistair Darling, announced a
series of changes to the capital gains tax (CGT)
regime for individuals and trustees. These
changes included the abolition of taper relief
and indexation relief and the introduction of
a single rate of CGT of 18%. The changes take
effect from 6 April 2008.
|
|
|
|
Money Laundering Regulations |
| February 2008 |
|
From 15 December 2007, the Money Laundering
Regulations 2007 require certain businesses to
have systems in place to prevent money
laundering and report suspicious transactions.
These regulations replace the previous ones
which have been in force since 2004.
|
|
|
|
PAYE End of Year Returns |
| February 2008 |
|
HMRC are running a series of workshops on the
online completion of end of year PAYE returns.
You can use the link below to see when
sessions are running in your area.
|
|
|
|
Holidays |
| February 2008 |
|
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. The minimum statutory
holiday entitlement was raised from 20 days to
24 days per annum from 1 October 2007. This
entitlement is inclusive of Bank Holidays.
|
|
|
|
Capital Gains Tax Reform |
| January 2008 |
|
The proposed changes announced in the
Pre-Budget Report to the capital gains tax (CGT)
system are radical. Taper relief for CGT will
be abolished for disposals on or after 6 April
2008. Other changes to the CGT system include
introducing a flat rate of CGT of 18% and
abolishing indexation, an allowance for
inflation.
|
|
|
|
Advisory Fuel Rates |
| January 2008 |
|
To reflect the increases in fuel prices, HMRC
have issued new advisory fuel rates for
company car drivers. These take effect for
all journeys undertaken from 1 January 2008 so
employers wishing to use the new rates should
advise affected employees and update any
expense forms as soon as possible.
|
|
|
|
Inheritance Tax Nil Rate Band |
| January 2008 |
|
Chancellor Alistair Darling announced in his
Pre-Budget speech a change to the way in which
the inheritance tax (IHT) nil rate band of
£300,000 can be used for married couples and
civil partners.
|
|
|
|
Income Shifting Consultation |
| January 2008 |
|
You may well remember that the Arctic Systems
case involved a husband and wife who owned a
company 50/50 and, broadly, took the profits
out by way of dividends, again 50/50. HMRC
attempted to tax the dividends solely on the
husband, as he was performing most of the work
which generated the profits of the company.
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