Sunday 5th February 12:38 AM
York accountants strengthen team
February 1, 2011
VAT Rate Increase - Shoppers May See Price Rises
With the standard rate of VAT set to increase to 20% from the current 17.5% it is a good idea to be aware of the rules on the correct rate of VAT you should be charged on purchases around the busy New Year period.
31 October Self Assessment Deadline
HMRC (H M Revenue & Customs) are warning taxpayers who wish to file a paper (non electronic) tax return for the 2009/10 tax year, that the return should generally reach them by midnight on Sunday 31 October 2010.
Increase in the Standard Rate Of VAT
The standard rate of VAT will increase 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.
Enhanced Capital Allowances Changes
Enhanced Capital Allowances (ECAs) of 100% are available to any size of business which buys brand new energy saving plant and machinery, including water saving plant. The ECA allows a full write off for tax purposes of the cost of qualifying plant and machinery. From time to time the qualifying criteria and items are amended and the 2010 amendments are set out on the website detailed below.
Regional Firm Expands IT Services
A regional professional firm has expanded its IT services division. Clive Owen & Co LLP, Chartered Accountants and Business Advisers, have recently appointed a new Consultant to strengthen the team as they launch a range of new services to clients.
We’re All Going On An NI Holiday
In the Emergency Budget the Chancellor announced the Regional Employer National Insurance Contributions Holiday.
Unwelcome Tax Demands For Employees
Up to 1.4 million taxpayers are expected to receive an unwelcome surprise as H M Revenue & Customs (HMRC) are in the process of issuing calculations of PAYE underpayments for the last two tax years. The underpayments, some of which run into thousands of pounds, but with an average of approximately £1,400 are a result of incorrect tax codes being operated against their pay. The errors have come to light due to the checking of individuals' liabilities by HMRC after the introduction of their new NPS computer system.
HMRC Reminder About Paying VAT By Cheque
HM Revenue & Customs (HMRC) have recently issued a reminder about paying VAT by cheque.
Tell HMRC About A Change Of Name Or Address By Email
H M Revenue & Customs (HMRC) are publicising the facility to alter certain details by email.
Professional firms recognise National Payroll Week
Jackson's Law Firm in Stockton and Clive Owen & Co LLP, Chartered Accountants and Business Advisers, in Darlington recently teamed up with the IPP, Institute of Payroll Professionals to host an event aimed at employers to celebrate National Payroll Week.
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.
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:
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:
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.
Financial Firm Growth Makes Investment Easier
Financial planning is being made easier for investors in North Yorkshire and the North East with the expansion of an expert team.
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.
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.
Forecasting A Brighter Summer!
Even though we are in the midst of the British summer, the economic climate is not warming up.
Cash ISAs Cost Investors £1.6 Billion Due To Inflation
A recent survey has urged investors to be aware of the effect inflation is having on the real value of their cash ISAs.
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.
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).
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.
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.
Business Investment Increases At Fastest Pace Since 1987
Investment by UK businesses rose at the fastest rate since 1987 in the first quarter of 2010, according to the Office for National Statistics.
The continuing growth and success of Clive Owen & Co LLP
Following the recent expansion to their Corporate Finance Dept, it's now the turn of the Wealth Management and Financial Planning team to be expanded.
Compulsory Employer Pension Scheme Deadlines Approaching Fast
The recent change of Government has seen no change in policy regarding the need for every employer in the UK to provide and contribute to an approved pension scheme arrangement.
Compulsory Employer Pension Scheme Deadlines Approaching Fast
The Emergency Budget
George Osborne presented his first Budget on Tuesday 22 June 2010.
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.
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.
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.
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:
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.
The Post Election Budget 2010
George Osborne presented his first Budget on Tuesday 22 June 2010.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
National Minimum Wage Rates
From October 2010, National Minimum Wage rates will increase
VAT and Royal Mail Postage
Some types of postal services offered by the Royal Mail will be subject to VAT from 31 January 2011.
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.
Budget Report March 2010
Alistair Darling presented his third Budget on Wednesday 24 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.
Dispensations - New Online Application Form
HM Revenue & Customs have introduced the facility to apply for dispensations online.
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.
HM Revenue & Customs Old Bank Accounts Are Closing - Make Sure You Use the New Ones
During 2009 HM Revenue & Customs moved its banking services from the Bank of England to Citi and Royal Bank of Scotland Group. This meant that all HM Revenue & Customs bank sort codes and account numbers changed during 2009.
HM Revenue & Customs Old Bank Accounts Are Closing - Make Sure You Use the New Ones
An update on JEREMIE : £125m ‘super fund’ for North East Business
A new £125m scheme is now open for business following a formal launch on 22nd January 2010. The 'super fund' will allow small and medium sized businesses to access funds of up to £1.25m per company per annum for projects located in the North East of England.
An update on JEREMIE : £125m ‘super fund’ for North East Business
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.
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.
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.
Statutory Payments
The new Statutory Payment Rates for 2010/11 have been announced. The new rates are as follows:
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.
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.
Tax Liability and Self Assessment Tax Return Deadlines - 31st January 2010
If you are filing your tax return online it must reach HM Revenue and Customs (HMRC) by midnight on Sunday 31st January 2010.
Tax Liability and Self Assessment Tax Return Deadlines - 31st January 2010
Extra National Insurance Burden Ahead
Special Annual Allowance Charge
Advisory Fuel Rate Changes
Cross-Border VAT Changes - now effective
Tax Relief on Nursery Vouchers
Offshore Investments Disclosure Extension Has Ended
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.
Pre-Budget Report Summary
Chancellor Alistair Darling presented his Pre-Budget Report to the House of Commons on Wednesday 9 December 2009.
Tax Partner, Nicola Bellerby on the Pre-Budget Report 2009
Chancellor Alistair Darling will hit pay packets more than expected as a result of his Pre-Budget Report, say accountancy and business advisory firm Clive Owen & Co LLP.
Pre-Budget Report: Wed 9th December 2009
Online Filing of VAT Returns
VAT change advice for New Year's Eve Traders
Parties for Employees
Business Rates Bills
Trading in the EU - Intrastat Thresholds
Swine Flu and Statutory Sick Pay (SSP)
Prepare Now for the VAT Increase - 01/01/2010
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.
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:
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.
Tax Credits for the Remediation of Contaminated Land or Derelict Buildings
If you have acquired a brownfield site or a used building, then any expenditure incurred whilst removing any contamination from the land or building may qualify for Remediation of Contaminated Land (RCL) tax credits.
Tax Credits for the Remediation of Contaminated Land or Derelict Buildings
Tips Don't Count Towards the National Minimum Wage
As you may be aware the National Minimum Wage (NMW) rates increased from 1 October 2009 to:
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.
Protection of Residential Addresses - 1st October 2009: Companies Act 2006 Final Provisions
Online Filing of VAT Returns
National Minimum Wage Increases
Additional Paternity Leave and Pay
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.
HMRC Warn of More Scam e-mails
Pay For Apprentices
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.
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.
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.
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.
Increase in Pay for Apprentices
From 1 August 2009 the national minimum wage for apprentices increased from £80 to £95 per week.
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.
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. Clive Owen & Co LLP can help you ensure you don't have a problem with HM Revenue & Customs. Please contact Julie Dixon on (01325) 349700 or via email julie.dixon@cliveowen.com and let us know if the above applies to you - we will do the rest. Back to news page
Pension Changes Ahead
Under provisions contained in the Pensions Act 2008 employee pension enrolment and employer contributions are to be made compulsory.
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:
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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 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.
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).
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.
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.
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:
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.
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.
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.
Reporting VAT Errors
If you find that you have made a mistake on a previous VAT return you may need to tell H M Revenue & Customs (HMRC) or adjust the next return.
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.
HMRC alert to Employer CD-Rom users
HM Revenue & Customs (HMRC) are advising employers who use their Employer CD-ROM to update it now so that they have access to the most recent guidance and calculators.
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.
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.
Newsletters
The latest editions of our quarterly Correspondent can be viewed by clicking on any of the following links:
Today’s mass affluent face tomorrow's biggest disappointment
Tomorrow's generation of mass affluent retirees are set to face disappointment on a significant scale as over two thirds (69%) of people overestimate how much their pension fund equates to, and as such will fail to achieve their annual target level in retirement.
Today’s mass affluent face tomorrow's biggest disappointment
Online Filing of Corporation Tax Returns
Dragon’s Den Firm Receives Tax Cash Bonus
National Payroll Week: 7 – 11 September 2009
Change of HMRC Bank Account Details
Restricted Tax Relief on Pension Contributions
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.
Personal Tax Changes
The Chancellor has not only brought forward proposals which were to take place in 2011, he has also made changes to his original announcements.
Standard Rate VAT
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.
Enhanced Relief for Trading Losses
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
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).
Where do we go from here?
PAYE Tax Codes About to be Issued
Real Help for Businesses
Business Payment Support Service
Rise in late payments to SMEs
Statutory Maternity Leave, salary sacrifice and non-cash benefits
National Insurance Contributions from April 2009
From 6 April 2009, changes have been made to how employers will have to record National Insurance Contributions (NICs) due to changes to the State Second Pension. Employers will have to record NICs in the following four earnings bands, with the introduction of the Upper Accrual Point:
Businesses Given More Time to Pay Business Rates
Pensions Act 2008
Questions and Answers
HMRC warn of latest fraud attempt
HMRC are warning taxpayers of the latest fraud attempt to be reported to them.
PAYE changes
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.
'How to Pay' changes
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.
New Statutory Payment Rates for 2009/10
The new Statutory Payment Rates for 2009/10 have been announced (subject to Parliamentary approval). The new rates are as follows:
New HMRC Penalties
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.
Reduction in the Standard Rate of VAT
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.
Higher Late Filing of Accounts Penalties
Pay HMRC by Direct Debit
HMRC Warn About E-mail Fraud
Grant for Business Investment in England (GBI)
This grant replaces the previous SFI (Selective Finance for Investment) grant. The aim of the GBI scheme is to encourage capital investment in projects that lead to long-term improvements in productivity, skills and employment.
In the Spotlight: John Davison
The spotlight this issue focuses on John Davison, Associate Director at Clive Owen & Co LLP. With almost 17 years service with the practice, he has a lot of knowledge to share on his role in the Business Planning and Development department.
Accountants put Growth Under the Microscope
One of the leading regional accountancy businesses is branching out in a new direction with the launch of a dedicated forensics team.
Changes to the Advisory Fuel Rates From 1 January 2009
Experts Help Charities Cut Through Red Tape
CHARITIES in the North East can now access specific expertise that can help them comply with the complex regulations they face.
Forensic Focus
A FORENSIC accountant who has trapped countless fraudsters is warning businesses that they could be the next target as the recession begins to bite.
How Reorganising Your Company Can Make Commercial Sense
In recent years, we have acted on behalf of several companies to review, advise and reorganise their ownership structures. Many companies, particularly those which have been trading for a number of years, have diversified from one or two core activities into other areas. A common scenario is the company which has purchased one or more properties as investments. In such circumstances, a scheme of reconstruction can be used to break up an existing business with varied trading activities into separate undertakings.
New Penalty Regime – Be Prepared and Be Proactive!
You will hopefully be aware of the fact HMRC are introducing a new penalty regime which will apply to all VAT returns rendered with a due date of 1 April 2009 onwards but which will cover not just VAT but Corporation Tax, Capital Gains Tax, National Insurance Contribution (NIC), PAYE and CIS.
Demand For Advice on Redundancy and Lay-offs
Capital Allowances on Cars
VAT - Extension Of 14 Day Limit
Taxation Of Business Travel
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.
Standard Rate VAT
Parties For Employees
Are you planning a party for your staff? Make sure you are clear on the tax implications.
Child Trust Fund
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.
Pension Forecast
Gift Aid Form Amended
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.
‘Paper’ tax return deadline 31 October
HMRC are reminding taxpayers who wish to complete paper self assessment tax returns that the new 31 October 2008 deadline is here. They are advising that 'tax doesn't have to be taxing' with an advertising campaign fronted by well known newsreader Moira Stewart.
Intestacy Rules
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
HMRC have updated their guidance on buying goods on the internet explaining when duty and / or VAT will need to be paid.
Entrepreneurs' Relief
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%.
Changes To Rights During Maternity Leave
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.
Change to Benefits System
From 27 October 2008, in a change to the benefits system, Employment and Support Allowance (ESA) will replace the current state benefits (Incapacity Benefit and Income Support) which are paid to individuals on incapacity grounds. The new ESA will initially only be payable to new claimants.
NMW Rates to Rise
National Minimum Wage (NMW) rates are set to rise from 1 October 2008. The increased rates will be as follows:
CBI Forecast
A CBI forecast has predicted a 'shallow recession' during the final part of 2008 and that growth in the economy in 2009 will be the lowest since 1992.
Licence to Bring in Migrant Workers
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.
NMW Changes
HMRC have announced that some changes to penalties and calculation of arrears of National Minimum Wage (NMW) payments have been delayed to April 2009. The delay is apparently due to the slower than expected passage through parliament of the Employment Bill.
Gift Aid Transitional Relief
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.
Newcomers Must Earn the Right to Stay in the UK
The government has announced that foreign nationals who wish to become British citizens will have to earn the right to stay here.
HMRC Powers
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.
Report on HMRC's Lost Discs
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
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.
£10,000 VAT Errors
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.
VAT Treatment of Charity Challenge Events
HMRC have issued revised guidance on Charity Challenge Events, including those that qualify for the VAT Charity Fundraising Exemption.
Corporate Days Out – Financially Do They Stack Up?
By Angus Allan, Corporate Finance Partner at Clive Owen & Co LLP
National Minimum Wage and Tips
An Employment Appeal Tribunal has ruled in HMRC's favour in the case of Annabel's Restaurant and Nightclub. The case concerned the payment of tips through a 'tronc', which is an arrangement which sometimes operates in the restaurant industry. The 'tronc' which operates as a separate independent payroll, run by a 'troncmaster' is used by some restaurants as a means of distributing tips or service charges paid by customers. HMRC have argued successfully that where the tips are paid in this way they do not count towards national minimum wage (NMW) entitlement.
Advisory Fuel Rates
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.
Employees' Mileage Payments
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).
Brothers Expand Empire in Style
TWO brothers have launched the latest phase in the expansion of their business empire by opening a contemporary fashion outlet in Yarm.
Wilton Engineering Services Ltd acquires PD&MS Ltd
Middlesbrough-based Wilton Engineering Services Limited has acquired Project Design & Management Services Ltd of Aberdeen.
Family's Firm Choice for the Future
North Shields-based family company Tom Swan Builders' Merchants has made a firm choice for its future by dovetailing with North Yorkshire Timber (NYT).
Tax Credits Renewal
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.
Flexible Working Extention
The government has announced plans to extend the right to request flexible working to parents with children up to the age of 16.
Drive to Help Women Boost their State Pension
Women pensioners could boost their state pension or even be in line for a windfall payment under special terms.
SMP and Salary Sacrifice Arrangements
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.
Update your Will
The Law Society has warned that thousands of Wills could need updating as a result of rising care and nursing fees which force the elderly to sell their assets, in many instances their homes, to pay for care. The home is generally the largest asset left to loved ones.
Implementation Date for Rights During Maternity Leave
Following changes being made to the Sex Discrimination Act and, later this year, to the Maternity and Parental Leave Regulations, the law on contractual terms of employment during Additional Maternity Leave (AML) is due to change in respect of women whose babies are due on or after 5 October 2008. HMRC had previously advised that this change would be effective for babies due from 6 April 2008.
No PAYE/NIC or CIS Deduction Payments Due
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.
Credit Squeeze
It appears that many businesses are suffering a cash "squeeze" from delayed payment of their invoices as the credit crunch begins to impact on the economy. There are complaints from businesses that some large customers have begun to extend their payment period terms. This is putting a strain on the cashflow of businesses.
Benefits in Kind and Expenses in the Payroll
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.
Homeworking Costs Increase
From 6 April 2008, HMRC has increased the tax and NIC free guideline rate that employers can pay home working employees without keeping records from £2 to £3 per week.
Entrepreneurs' Relief
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.
Don’t Miss Out on Grant Assistance
Employment Support Allowance
P11D Deadline Looming
Marks & Spencer VAT Win
M&S have won a landmark victory in the European Court of Justice.
Clive Owen & Co LLP Appointment to Lead Company Expansion
File Online if You Missed The 31 October Self Assessment Deadline
Pre-Budget Report 2009
Tax Credits Renewal Deadline
10% Rate of Income Tax
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.
Productivity Training All Adds Up
10% Tax Rate Climb Down
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.
'Income Shifting' Legislation Delayed
The introduction of the proposed legislation on 'income shifting' has been delayed until April 2009.
National Minimum Wage Increases
The National Minimum Wage will rise to £5.73 (£5.52) an hour in October 2008.
HMRC Warning on Scams
HMRC have updated their guidance on scams. HMRC have become aware of a new ruse to persuade unsuspecting taxpayers to complete a form detailing their bank or credit card details. The form implies that a tax refund may be due and that this will be paid straight into their bank account.
Increase in Personal Allowances
HMRC Penalties for Errors
HMRC have issued revised guidance on the system of penalties which they will be able to apply to taxpayers.
Extra Personal Allowances
HMRC have now issued further guidance on the increase in the personal tax allowance which is due to take effect from 7 September 2008.
'Paper' Tax Return Deadline Looming
Penalties
Fake HMRC Emails
Temporary Exemption on Stamp Duty Land Tax
Extra Take Home Pay
VAT Rate to Change to 15% on Monday 1st December 2008
• Do you know how to change the VAT rate on your Accounts Software?
Bank of England reduces bank rate by 0.5%
The Bank of England reduced the bank rate by 0.5% to 4.5% with effect from 8 October 2008.
Corporation Tax Changes
Proposed Personal Tax Changes
Cut In Interest Rates
