Small Businesses Boosted By The Budget |
London based accountancy firm Wilder Co is encouraging small business owners to pay close attention to this year’s budget, as a large proportion of the changes are pertinent to them. |
The Budget 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. |
Entrepreneurs’ Relief |
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. |
Residence and Domicile |
Following the Pre-Budget Report announcement that HMRC would be reviewing the rules on residence, HMRC have issued some draft legislation which is expected to take effect from 6 April 2008. |
Money Laundering Regulations |
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 |
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. |
HMRC payments due 31 January 2008 |
HMRC have apologised for a problem that they have identified with the self assessment tax return. The problem apparently only relates to tax returns submitted prior to 31 October 2007 where the taxpayer asked for any unpaid tax to be collected directly rather than by a restriction in their tax codes for 2008/09. |
HSE launch campaign to stop slips and trips |
The Health and Safety Executive (HSE) have announced that they will run a workplace slips, trips and falls campaign in February and March this year. |
PAYE tax codes about to be issued |
HMRC have advised that they are about to issue PAYE tax codes to employees for the 2008/09 tax year. |
Holidays |
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. |
CGT U-Turn Welcomed |
A major change to Chancellor Alistair Darling’s plans for a controversial shake-up of the capital gains tax regime has been welcomed by London accountants, Wilder Coe as a respite for businesses. |
Capital Gains Tax Reform |
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 |
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. |
Proposed cuts in ‘red tape’ |
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. |
Inheritance Tax Nil Rate Band |
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 Allowances |
In November’s enews we reported on proposed changes to the capital allowances system and HMRC have now issued a 91 page document including draft legislation. |
Employment Bill |
A new Employment Bill will, if enacted, impose tougher penalties on employers and dispute resolution procedures will be simplified. The overall effect of the Employment Bill is to strengthen and clarify key aspects of employment law. It was introduced and had its first reading on 6 December 2007 with the aim of receiving Royal Assent by summer 2008. |
Consultation On Residence And Domicile |
In the Pre-Budget Report the government announced a package of reforms affecting the personal tax rules on residence and domicile. |
Income Shifting Consultation |
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. |
