Furnished Holiday Lettings
The tax treatment of Furnished Holiday Lettings (FHL) has been advantageous for many years. Provided that certain conditions are met, FHL are treated as a trade. This can be more preferable than the tax regime for normal let property in a number of specific areas, as the rules and reliefs for trades are often more generous.
Furnished Holiday Lettings
Government Confirms Minimum Wage Rises
The government has confirmed that the new National Minimum Wage rates, which come into effect on 1 October 2010, will be:
Government Confirms Minimum Wage Rises
H M Revenue & Customs Use New Debt Collection Organisations
In the Emergency Budget it was announced that H M Revenue & Customs (HMRC) would use Debt Collection Agencies (DCAs) operating under industry and HMRC standards to increase HMRC's debt collection capacity and help the pursuit of lower value debts. HMRC will be using DCAs to collect an additional £140m of tax debt. Contracts have been signed with:
H M Revenue & Customs Use New Debt Collection Organisations
Employer Provided Company Cars
Historically, when employers started to provide, changed or stopped providing cars to employees, Form P46 (Car) had to be submitted by the employer to H M Revenue & Customs (HMRC). This enabled HMRC to keep tax codes up to date, which in turn ensured that the employee didn't end up with an unexpected tax bill.
Employer Provided Company Cars
Darlington gets first Bacs- accredited firm
Clive Owen & Co, LLP's payroll bureau, Accupay, recently gained this accreditation from Bacs, and are now the only payroll bureau in Darlington to have this status.
Darlington gets first Bacs- accredited firm
Brush buyout secures 110 jobs
A County Durham company has secured its own future - and that of over a hundred employees - with help from local business development agencies.
Brush buyout secures 110 jobs
Finance Expert Returns To His Roots
A CORPORATE Finance specialist has returned to the Darlington firm which first trained him after establishing his reputation in the Newcastle marketplace working for one of the UK's leading professional services firms.
Finance Expert Returns To His Roots
Forecasting A Brighter Summer!
Even though we are in the midst of the British summer, the economic climate is not warming up.
Forecasting A Brighter Summer!
Revenue Attacks Internet Bank Accounts
If you have opened or intend to open a joint bank account over the internet please check to see if the account is really a joint bank account.
Revenue Attacks Internet Bank Accounts
National Insurance Holiday
The Coalition government intends to introduce a scheme to help new businesses in targeted areas of the UK by allowing a reduction in employers' national insurance (NIC).
National Insurance Holiday
End Of Period Of Grace
An H M Revenue & Customs (HMRC) concession, ESC B46, was introduced in 1995 and means that HMRC will not issue penalties for late filing of company tax returns or employers'/contractors' end-of-year returns, provided that they are received by the last working day within seven days of the filing date.
End Of Period Of Grace
New Guidance For Charities
Earlier this year a series of changes were made to the tax rules for charities and Community Amateur Sports Clubs (CASCs). Broadly, the rules are intended to offer UK tax reliefs to EU charities and also allow donations to EU charities to qualify under the Gift Aid scheme.
New Guidance For Charities
The Emergency Budget
George Osborne presented his first Budget on Tuesday 22 June 2010.
The Emergency Budget
Capital Gains Tax Changes
A new rate of Capital Gains Tax (CGT) of 28% will be introduced. For individuals, the rate of Capital Gains Tax remains at 18% where total taxable gains and income, after taking into account all allowable deductions including losses, personal allowances and the Capital Gains Taxannual exemption, are less than the basic rate limit. The new 28% rate will apply to gains or any parts of gains above this limit.
Capital Gains Tax Changes
Standard Rate of VAT To Increase
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.
Standard Rate of VAT To Increase
HMRC Amend PAYE Penalties Guidance
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.
HMRC Amend PAYE Penalties Guidance
Keep Proper Records!
H M Revenue & Customs 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. The first series of toolkits cover:
Keep Proper Records!
HMRC Launch Tax Credit Video
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 H M Revenue & Customs.
HMRC Launch Tax Credit Video
Budget Date Announced
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.
Budget Date Announced
Clive Owen & Co LLP is now an approved BACS Payroll Bureau!
We are delighted to announce that Accupay has become a Bacs Approved Bureau. This new accreditation is the result of a rigorous registration and inspection process. In addition to payroll services we can now offer you a BACSTEL facility to make employee payments and any payments associated with the payroll, which has substantial benefits for business owners.
Clive Owen & Co LLP is now an approved BACS Payroll Bureau!
Are There VAT Increases Ahead?
The British Chamber of Commerce are predicting that we should expect an increase in VAT to help deal with the country's budget deficit.
Are There VAT Increases Ahead?
P11D Deadline Looming
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 (HM Revenue & Customs) 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.
P11D Deadline Looming
HMRC Warn Of Email Rebate Scam
HMRC (H M Revenue & Customs) 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.
HMRC Warn Of Email Rebate Scam
Changes To The Advisory Fuel Rates From 01 June 2010
To reflect the increase in fuel prices, HMRC (H M Revenue & Customs) 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.
Changes To The Advisory Fuel Rates From 01 June 2010
State Pension Age And National Insurance Contributions
HMRC (HM Revenue & Customs) 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.
State Pension Age And National Insurance Contributions
P11D Deadline Looming
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 (HM Revenue & Customs) 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.
P11D Deadline Looming
Furnished Holiday Letting Reprieve
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.
Furnished Holiday Letting Reprieve
Online Submission of Employers Forms
The employer's annual returns P35 and P14 (P60) are due for submission to HMRC (HM Revenue & Customs) 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.
Online Submission of Employers Forms
Penalty Guidance on Late Payment of PAYE
HMRC (HM Revenue & Customs) 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.
Penalty Guidance on Late Payment of PAYE
VAT and Royal Mail Postage
Some types of postal services offered by the Royal Mail will be subject to VAT from 31 January 2011.
VAT and Royal Mail Postage
HMRC Offer Advice on Fraud E-mails
HMRC (HM Revenue & Customs) are reminding taxpayers to be vigilant as there have been several reports of scam emails.
HMRC Offer Advice on Fraud E-mails
Budget Report March 2010
Alistair Darling presented his third Budget on Wednesday 24 March 2010.
Budget Report March 2010
The Tax Health Plan (THP)
HM Revenue & Customs 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.
The Tax Health Plan (THP)
Tax Codes Being Issued
HM Revenue & Customs 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.
Tax Codes Being Issued
HMRC New Scam Emails
HM Revenue & Customs 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.
HMRC New Scam Emails
Reminder from HM Revenue & Customs, 2008-09 Penalties for Outstanding PAYE Employer Annual Returns
Our colleagues at HM Revenue & Customs have requested that we send you the following reminder: "From 23 January, HM Revenue & Customs will be sending a penalty notice to those employers who we believe have still not yet submitted their 2008 - 09 Employer Annual Return (P14s and P35). 2008 - 09 returns were due by 19 May 2009. The penalty will be £100 per 50 employees for each month a return is outstanding, from 20 September 2009 to 19 January 2010. So, an employer with 50 or less employees will receive a penalty of £400, this penalty is in addition to those sent in September 2009.
Reminder from HM Revenue & Customs, 2008-09 Penalties for Outstanding PAYE Employer Annual Returns
Employment Rights - Statutory Limits
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.
Employment Rights - Statutory Limits
Using Your Own Car For Work
HM Revenue & Customs have updated their guidance on using your own vehicle for work. The guidance needs to be read in conjunction with the mileage rates which for those using their own car for work purposes are unchanged at 40 pence a mile for the first 10,000 miles dropping to 25 pence a mile thereafter.
Using Your Own Car For Work
Statutory Payments
The new Statutory Payment Rates for 2010/11 have been announced. The new rates are as follows:
Statutory Payments
Scrappage Scheme
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.
Scrappage Scheme
Dragon’s Den Firm Receives Tax Cash Bonus
A COMPANY which won over the stars of television's Dragon's Den with its innovative fuel device has received a financial boost from the Government with the help of business advice specialists Clive Owen & Co LLP.
Dragon’s Den Firm Receives Tax Cash Bonus
HMRC Warn of More E-mail Scams
As the end of the year fast approaches HM Revenue & Customs (HMRC) are reminding taxpayers to be vigilant as scam emails have been reported. For details of their latest guidance on scam emails, more information on this and other scams together with a copy of the latest example visit the links below.
HMRC Warn of More E-mail Scams
Pre-Budget Report Summary
Chancellor Alistair Darling presented his Pre-Budget Report to the House of Commons on Wednesday 9 December 2009.
Pre-Budget Report Summary
Paying PAYE on Time - Avoiding New Penalties
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.
Paying PAYE on Time - Avoiding New Penalties
Online Payroll Forms - Further HMRC Penalties Introduced
HMRC are reminding employers with 50 or more employees that they should now be filing their starter and leaver information online. The forms which need to be filed electronically, and should have been online since 6 April 2009, include:
Online Payroll Forms - Further HMRC Penalties Introduced
Vehicle Scrappage Scheme
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. Funded by the government and manufacturers the scheme has proved very popular and according to the Department for Business Innovation and Skills (BIS) website 260,226 cars have now been scrapped under the scheme, which is set to run until February 2010.
Vehicle Scrappage Scheme
Tax Relief on Nursery Vouchers to be Withdrawn
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.
Tax Relief on Nursery Vouchers to be Withdrawn
Over 50? Some Good News!
Earlier this year, it was announced that the over 50s could shelter up to £10,200 a year from the taxman in an ISA. ISA allowances increased with effect from 5 October 2009.
Over 50? Some Good News!
Redundancy Pay
The weekly maximum pay which can be taken into account when calculating statutory redundancy pay is set to increase from 1 October 2009.
Redundancy Pay
Paper Tax Return Deadline Looming
For those wishing to complete paper self assessment tax returns, the filing deadline of 31 October 2009 is fast approaching.
Paper Tax Return Deadline Looming
False Self-Employment in the Construction Industry
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.
False Self-Employment in the Construction Industry
VAT Increase to 17.5%
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.
VAT Increase to 17.5%
Increase in Pay for Apprentices
From 1 August 2009 the national minimum wage for apprentices increased from £80 to £95 per week.
Increase in Pay for Apprentices
New Disclosure Opportunity
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.
New Disclosure Opportunity
Student Loans and Income Tax
If you are in the position of having a student loan and are either self-employed or receive dividends your income tax liability may be affected.
Student Loans and Income Tax
Pension Changes Ahead
Under provisions contained in the Pensions Act 2008 employee pension enrolment and employer contributions are to be made compulsory.
Pension Changes Ahead
HMRC Warn of More Scam e-mails
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. There is a long list of web addresses being used in the scams including:
HMRC Warn of More Scam e-mails
Are You Complying With the National Minimum Wage Rules?
HMRC are reminding employers that since the beginning of the current tax year automatic penalties have been introduced for those who do not comply with the National Minimum Wage (NMW) Regulations.
Are You Complying With the National Minimum Wage Rules?
Starting a New Business
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.
Starting a New Business
Pension Payments
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.
Pension Payments
Business Payment Support Services
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.
Business Payment Support Services
HSE Warning Not to be Misled Over New Law Poster
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.
HSE Warning Not to be Misled Over New Law Poster
Scrappage Incentive Scheme Successful
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).
Scrappage Incentive Scheme Successful
Rise in Prosecutions for Employing Illegal Workers
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.
Rise in Prosecutions for Employing Illegal Workers
Identity Fraud: Directors and Trustees beware
Fraudsters have been attempting to steal or appropriate the identifying information of Directors, Company Secretaries, Trustees and Audit Partners for the purposes of identity fraud. The latest scams are believed to be making use of digital versions of personal signatures included in a company's accounts, which are available online from Companies House and the Charity Commission.
Identity Fraud: Directors and Trustees beware
HMRC Warn of Fraudulent Email
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.
HMRC Warn of Fraudulent Email
Advisory Fuel Rates
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.
Advisory Fuel Rates
HMRC PAYE Services Interruption
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.
HMRC PAYE Services Interruption
HMRC New Disclosure Opportunity
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 New Disclosure Opportunity
Employees Accrue Holiday Pay While on Sick Leave
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).
Employees Accrue Holiday Pay While on Sick Leave
Extra Paternity Leave Put On Hold
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.
Extra Paternity Leave Put On Hold
P11D Deadline Looming
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.
P11D Deadline Looming
Furnished Holiday Lettings
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. The main announcements are set out below:
Furnished Holiday Lettings
Tips and the National Minimum Wage
HMRC have won their case in the Court of Appeal as to the treatment of tips and service charges for bar and restaurant workers.
Tips and the National Minimum Wage
National Minimum Wage Increases
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.
National Minimum Wage Increases
Vehicle Scrappage Scheme
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.
Vehicle Scrappage Scheme
HMRC Warn of E-mail Scam
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.
HMRC Warn of E-mail Scam