Accountancy
News |
| |
From Taper Relief to Possible Retirement Relief |
| December 2007 |
In last month’s enews we
reported on the shock announcement in the Pre-
Budget Report that capital gains tax taper relief
and indexation allowance would be scrapped for
disposals on or after 6 April 2008. Since then
business leaders have been making representations
to the Chancellor, Alistair Darling, to change
his mind or to delay the introduction of the
proposals which have significant implications
for many taxpayers. |
|
| |
Changes Ahead for Capital Allowances |
| December 2007 |
As you are no doubt aware the
system of tax reliefs on expenditure on equipment
in your business is a complex one. Broadly when
you buy a piece of equipment to use in your business
you normally cannot set the full cost against
that year’s profits, unless the value of
the item is quite small, or a special tax relief
applies. The cost of more expensive items is
written off against profits over a number of
years, using the capital allowances system. |
|
| |
PAYE Penalties |
| December 2007 |
HMRC had previously issued a
significant number of incorrect late filing penalty
notices to employers in respect of their 2006/07
PAYE end of year forms P35 and P14. These forms
are used to report details of employees pay,
tax, national insurance contributions, etc. |
|
| |
Northern Rock ISA Savers |
| December 2007 |
Following the problems at Northern
Rock earlier this year, the government has announced
that it will allow the people affected to re-invest
their money into any cash ISA, including Northern
Rock’s, and so restore their tax advantages.
This announcement applies to funds withdrawn
from Northern Rock ISAs between the 13 and 19
September 2007 inclusive. |
|
| |
2008/09 Allowances Announced |
| December 2007 |
The government has published
the 2008/09 rates and allowances for income tax,
national insurance contributions (NI), the state
retirement pension as well as other benefits
and allowances. |
|
| |
Staff Parties |
| December 2007 |
Are you planning a party for
your employees? Are you aware of the tax implications? |
|
| |
Inheritance Tax Change Welcomed |
| November 2007 |
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.
|
|
| |
Capital Gains Tax Taper Relief To Be Abolished |
| November 2007 |
The Construction Industry Scheme
(CIS) was significantly changed from 6 April
this year when monthly returns were introduced
for contractors. The CIS300 return details the
payments made to subcontractors and any tax deducted
from those payments. The returns have to be submitted
to HMRC by 19th of the month. |
|
| |
Additional Maternity And Paternity Pay And Leave |
| November 2007 |
The government had previously announced their
intention to extend Statutory Maternity Pay
(SMP), Maternity Allowance and Statutory Adoption
Pay from the current 39 weeks entitlement to
52 weeks.
|
|
| |
National Minimum Wage Prosecutions |
| November 2007 |
HMRC have issued a warning to employers about
their programme of targeted enforcement of
national minimum wage (NMW) procedures. The
programme, which is now in its third year,
was introduced to work with employers and workers
to address issues and concerns around the NMW.
|
|
| |
|
| |
Income 'Shifting' |
| November 2007 |
We have previously reported the case of Mr and
Mrs Jones who finally won their case in the
House of Lords in July this year. You may remember
that the profits of Arctic Systems (their company)
were paid equally to them by means of dividends.
HMRC had tried to have the income assessed
solely on Mr Jones rather than between them
but failed in their attempt.
|
|
| |
Construction
Industry Scheme Penalties |
| October 2007 |
The Construction Industry Scheme
(CIS) was significantly changed from 6 April
this year when monthly returns were introduced
for contractors. The CIS300 return details the
payments made to subcontractors and any tax deducted
from those payments. The returns have to be submitted
to HMRC by 19th of the month. |
|
| |
NMW
Rates Set To Rise |
| October 2007 |
National Minimum Wage (NMW) rates
are set to rise again from 1 October 2007. |
|
| |
24
Days Annual Holiday Entitlement |
| October 2007 |
Employees minimum annual holiday
entitlement is increasing from 1 October 2007.
The holiday entitlement will increase to 4.8
weeks (24 days if employees work a five day week)
from 1 October 2007 and to 5.6 weeks (28 days
if employees work a five day week) from 1 April
2009. |
|
| |
VAT
On Home Computers |
| October 2007 |
HMRC have issued guidance on
a change in their policy regarding VAT recovery
on computers. The rules affect computers which
are made available by employers to their employees
for their personal home use. |
|
| |
Pre-Budget
Report Summary 2007 |
| October 2007 |
|
With Gordon Brown now in the top seat, the eyes
of the nation were on Alistair Darling as he
delivered his first pre-budget report. The will-they-won’t-they
speculation surrounding the election, plus some
tax cuts promises from the opposition meant that
Darling had to deliver some potentially vote-winning
changes. |
|
| |
Arctic
Systems – HMRC
Gives Guidance |
| September 2007 |
Following the decision in the Arctic Systems
case HMRC have provided guidance on how tax returns
are to be dealt with following the House of Lords’ decision.
|
|
| |
| Test
Case Issue to Resolve Bank Charges Debate |
| September 2007 |
The Office
of Fair Trading (OFT) is taking a case to the
High Court to decide whether or not the level
of unauthorised overdraft charges made by banks
are legal. According to the OFT, tens of thousands
of complaints that these charges are unfair have
been received by the County Courts and the Financial
Ombudsman Service.
|
|
| |
| HMRC
Apologise for Payment Delay |
| September 2007 |
HMRC have apologised to small employers, those
with less than 50 employees, awaiting their £150
tax-free incentive payment in respect of the
2006/07 tax year. The incentive payment is due
where an employer, or their agent, successfully
filed their Employer's Annual Return form P35
and the supporting employee forms P14s online.
|
|
| |
| VAT
Fuel Scale Charges |
| September 2007 |
The VAT fuel
scale charge is the output VAT charge payable
by VAT registered businesses which allow their
employees to claim all the fuel expenses on their
company cars and reclaim VAT on the full amount
of fuel purchased without making an adjustment
for private use. |
|
| |
| VAT
Change For Invoices |
| September 2007 |
HMRC have issued guidance on changes to the
rules regarding the information to be shown on
invoices issued from 1 October 2007. Some of
the changes are very minor and reflect current
normal business practice. However some businesses
will need to amend their current invoices to
comply with the guidance.
|
|
| |
| Arctic
Systems – The Verdict |
| August 2007 |
The long running
saga of Geoff and Diana Jones and their company,
Arctic Systems Limited, has recently been back
to the courts for the final time to the House
of Lords.
|
|
| |
| Advisory
Fuel Rates |
| August 2007 |
HMRC have issued
advisory fuel rates for company car drivers.
These take effect for all journeys undertaken
from 1 August so employers should advise affected
employees and update any expense forms as soon
as possible.
|
|
| |
| Offshore
Disclosure – HMRC Follow Up |
| August 2007 |
Recently in
enews we reported what has been widely reported
in the press as HMRC’s ‘Tax Amnesty’.
As previously explained the term amnesty is misleading
as it only applies to the penalty that would
be charged on undeclared tax relating to the
offshore accounts, which HMRC have promised to
cap at 10% if a voluntary disclosure is made.
HMRC could in theory impose a 100% penalty. The
tax and penalties due will need to be paid by
26 November 2007.
|
|
| |
| Refund
of Voluntary NICs |
| August 2007 |
As previously
reported in enews in some limited circumstances
individuals who have paid voluntary national
insurance contributions (NICs) may be entitled
to a refund. HMRC have now issued further guidance
on the refund of voluntary NICs, following the
Paymaster General’s announcement on 16
January 2007.
|
|
| |
| Delays
in VAT Registration |
| August 2007 |
According to
HMRC’s website it is currently taking an
average of 38 days to process new VAT registration
applications. The reason given for the delay
is that HMRC have to carry out anti fraud checks
in some cases and this leads to significant delays.
|
|
| |
| Personal
Accounts Pensions |
| July 2007 |
The government
has published details of a new savings scheme
which will give all employees the right to a
workplace pension with a
contribution from their employer. At present employers with five employees
have to offer access to a pension scheme but
do not have to make an employer contribution.
|
|
| |
| 28
Days Holiday Entitlement – But Not Yet |
| July 2007 |
A couple of
months ago we reported on the government’s
proposal to increase the minimum statutory holiday
entitlement from the current 20 days (including
bank holidays) to 28 days (bank holidays inclusive).
The 28 days equates to 5.6 weeks for an employee
working a five day week.
|
|
| |
| P11D
Deadline Looming |
| July 2007 |
The forms P11D,
which report employees and directors benefits
in kind and expenses for the year ended 5 April
2007 are due for submission to HMRC by 6 July
2007. The process of tracking down the information
can take some time so don’t leave things
until the last minute.
|
|
| |
| Additional
Paid Paternity Leave |
| June 2007 |
The rules for
maternity pay and leave are complex and things
may be set to become more complicated for employers
and more generous for employees.
|
|
| |
| Charities
Guide |
| June 2007 |
A concise guide
for small charities has been issued. The Cabinet
Office and Charity Commission have launched 'Charities
Act 2006 - what trustees need to know', which
is being marketed as a concise guide to the biggest
shake up of charity law for centuries. The guide
is primarily aimed at those running small charities
to enable them to make the most of the new laws.
|
|
| |
| Smoke
Free From 1 July |
| June 2007 |
In last month’s
enews we reported that, as a result of provisions
in the Health Act 2006, enclosed public places
and workplaces have to be smoke free from Sunday
1 July 2007. This date applies to England only.
|
|
| |
| Local
Accountants Nominated as Best in Practice |
| May 2007 |
A co-founder
and partner of Bristol based leading accountancy
practice, Barnes Hunter was recently nominated
as a finalist for the ‘Best Chartered Accountant
Category’ at the Institute of Chartered
Accountants in England and Wales (ICAEW) South
West Regional Awards Dinner.
|
|
| |
| Corporation
Tax Changes |
| April 2007 |
The Chancellor
has moved to discourage small businesses from
incorporating for tax reasons by increasing the
tax they will pay on profits up to £300,000,
from 19% to 20% with effect from 1 April 2007.
The small companies rate will further increase
21% in 2008 and to 22% in 2009.
|
|
| |
| Income
Tax Rates |
| April 2007 |
There has been
a lot of publicity about the announcement that
the government propose to reduce the basic rate
of income tax from 22% to 20%. This change is
due to take effect from 2008/09 and not from
6 April 2007. |
|
| |
| Employers
End of Year Returns |
| April 2007 |
The Employers
annual returns P35 and P14 (P60) are due for
submission to HMRC by 19 May 2007. There is a
tax free incentive payments due of £150
for small employers with less than 50 employees
who successfully file their returns electronically.
|
|
| |
| VAT
Fuel Scale Charges |
| April 2007 |
HMRC’s
intention is to change significantly the VAT
fuel scale charges payable by businesses on the
provision of fuel for private motoring for their
company car drivers. The system of calculating
the output VAT charge on a simple cylinder banded
table is withdrawn for the businesses first VAT
return commencing after 1 May 2007.
|
|
| |
| Tax
Reductions or Tax Rearrangements? |
| March 2007 |
Bristol based
accountancy practice Barnes Hunter, is warning
local people to look closely at this year’s
budget announcements before presuming it’s
all good news. |
|
| |
| Budget
Report Summary 2007 |
| March 2007 |
Gordon Brown
has delivered his eleventh, and what is expected
to be his final, Budget. This year’s measures
contained a few shocks, with the Chancellor’s
tax cut provoking an uproarious reaction from
Labour and Conservative benches alike. The Budget
has been described as ‘substantial’,
no surprise if Mr Brown has his eye firmly on
Number Ten. |
|
| |
|
| |
| Use
of Computers
|
| March 2007 |
Before 6 April 2006 the first £500 of
the benefit in kind charge arising on the private
use of employer provided computer equipment was
exempt from tax. As the ‘annual value’ benefit
in kind on the use of an asset is calculated
as 20% of the market value of the asset when
first used to provide the benefit, this exemption
generally covered any potential benefit in kind.
|
|
| |
| VAT
Fuel Scale Charges |
| March 2007 |
HMRC have produced
some of the tables but not the final VAT fuel
scale charges which are due to come into effect
on 1 May 2007. Businesses will have to use the
new scale charges from the start of their first
accounting period beginning on or after this
date. HMRC are announcing the change early to
allow businesses time to familiarise themselves
with the new charging structure and make any
necessary IT system changes.
|
|
| |
| Cash
Accounting Limit Raised
|
| March 2007 |
HMRC have announced that the threshold for the
Cash Accounting Scheme will be more than doubled
from £660,000 to £1,350,000 from
1 April 2007.
|
|
| |
| Increased
Maternity Pay
|
| March 2007 |
HMRC have updated
their guidance on Statutory Maternity Pay (SMP)
due to women whose babies are due on or after 1
April 2007.
|
|
| |
| Implementation
of The Charities Act 2006 |
| March 2007 |
The Government
has issued the first commencement order which
brings into force a number of the Act's provisions
with an effective date of 27 February 2007. Details
of exactly what becomes effective were summarised
by the Office of the Third Sector in an implementation
plan which can be reached using the link below.
|
|
| |
| Integra
International – UK
and Ireland forge closer relationship |
| February 2007 |
Barnes Hunter
are appointed South West representatives for
Integra International, a worldwide network of
accountancy firms able to offer international
companies unrivalled levels of service and expertise.
Closer links were recently forged at a meeting
held in January at the offices of Barnes Hunter
between the UK representatives and Ireland to
discuss how we might better service companies
with links in both countries.
|
|
| |
| A Warning |
| February 2007 |
Be warned of
a fraud email scam that looks as if it has come
from HMRC which it definitely hasn’t.
It says...
|
|
| |
| Changes Required to Websites
and Electronic Documents |
| February 2007 |
The government
has recently issued new legislation extending
the requirements for companies and Limited Liability
Partnerships (LLPs) to provide certain particulars
about themselves on their websites and in electronic
versions of all documents.
|
|
| |
| Refunds of Voluntary National
Insurance Contributions |
| February 2007 |
Paymaster General
Dawn Primarolo and Pensions Reform Minister James
Purnell have announced that people who have made
voluntary National Insurance Contributions to
make up for gaps in their records may be able
to claim a refund if they made the contributions
since 25 May 2006.
|
|
| |
| Homeworking Costs for the
Self Employed |
| February 2007 |
HMRC have revised
their guidance on the deductibility of household
expenses for those people who work from home
on a self employed basis. This has always been
a complex area and case law has meant that the
rules were at least very confusing!
|
|
| |
| Construction Industry Scheme |
| January 2007 |
In last month’s
enews we reported that HMRC had launched their
press campaign on the introduction of the new
Construction Industry Scheme (CIS) which will
be introduced on 6 April 2007. In the Pre-Budget
Report the government made two announcements
regarding CIS tax rates.
|
|
| |
| Air Passenger Duty |
| January 2007 |
For those of
you planning to fly off in the New Year you should
be aware that Air Passenger Duty (APD) rates
will be increased from 1 February 2007.
|
|
| |
| Date for Arctic Systems Hearing
Announced |
| January 2007 |
At last, it
has been announced that the Arctic Systems case
will be heard in the House of Lords from 5 to
7 June 2007. The case, and the subsequent uncertainty,
has now been running for more than two years
and it is to be hoped that some sort of finality
to this issue can be obtained before the end
of 2007.
|
|
| |
| Employer Late Filing Penalties
for 2005/06 |
| January 2007 |
HMRC have announced
that they have started sending out late filing
penalty notices to those employers who they believed
sent in their 2005/06 employer’s annual
return forms P35 and CIS36 late. The due date
for the 2005/06 returns was 19 May 2006 and fixed
penalties are charged where the employer’s
original return was received after 29 May 2006.
|
|
| |
Accounting
News Archive |
Click
here to view a list
of previous news articles
|
|
| |
| Top
of page |
