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. |
TAX credits renewal deadline |
Tax credits are state benefits which are generally available to lower income families. However, entitlement to the credits is significantly increased where individuals pay for childcare or suffer a drop in normal levels of income perhaps due to incurring trading losses or redundancy. |
Redundancy alternative |
The Confederation of British Industry (CBI) has made a proposal for an 'Alternative to Redundancy' (ATR) scheme which could be introduced as part of a package of measures to reduce job losses. |
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. |
Swine flu advice for businesses |
The UK has moved from the 'containment' to the 'treatment' phase of swine flu (H1N1) as the number of people catching swine flu continues to rise. |
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. |
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. |
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 new disclosure opportunity |
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. |
TAX credits renewal deadline |
Tax credits are state benefits which are generally available to lower income families. However, entitlement to the credits is significantly increased where individuals pay for childcare or suffer a drop in normal levels of income perhaps due to incurring trading losses or redundancy. |
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. |
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. |
Digital Britain |
The government has published its report Digital Britain which sets out the government’s plans for the UK to be at the forefront of the global digital economy. |
Corporation tax return guide |
HMRC have published revised guidance on the completion of the corporation tax return form CT600. Please do get in touch if you would like any help in this area. |
One in five businesses admit data protection breaches |
A survey of over 500 SMEs carried out by the British Standards Institution (BSI) has found that nearly one in five businesses has unwittingly breached the Data Protection Act (DPA) at least once. |
Tax credits renewal deadline |
Tax credits are state benefits which are generally available to lower income families. However, entitlement to the credits is significantly increased where individuals pay for childcare or suffer a drop in normal levels of income perhaps due to incurring trading losses or redundancy. |
Filing tax returns online to be made compulsory |
Over the next few years, the government will be changing the way business owners have to manage and pay some taxes, and making it compulsory to file certain returns and forms online. |
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. |
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. |
UK opt out on 48 hour working week |
The ability of UK employers to allow employees to opt out from the European Working Time Directive is set to continue. This means that, where employees wish, they will still be able to work more than 48 hours a week. |
Financial services compensation scheme |
The Financial Services Authority (FSA) have provided a table listing the largest UK deposit takers. The list shows how the Financial Services Compensation Scheme (FSCS) limits would apply for most customers but is not a complete list of deposit takers covered by the FSCS. |
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. |
Landlords and gas safety |
Landlords letting property equipped with gas appliances need to ensure that they comply with the law relating to gas safety. |
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. |
HMRC warn of email scam |
HMRC are warning that they have become aware that a large number of individuals are receiving emails offering tax rebates. |
Vehicle scrappage scheme |
The vehicle scrappage or discount scheme is a voluntary scheme for motor dealers. |
The new pension regime |
In his Budget, the Chancellor announced two changes to tax relief on pension contributions for individuals with income above a certain level. |
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. |
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. |
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). |
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. |
VAT system for cross-border trading |
A package of measures is being introduced to simplify and modernise the VAT system for cross-border trading and to counter fraud across the EU. |
Bradford & Bingley position of former shareholders |
As you are no doubt aware, shares in Bradford & Bingley plc were taken into public ownership last year. HMRC have issued guidance relevant to former shareholders and employees who were members of employee share schemes. |
Change of HMRC bank account details |
HMRC bank account details for paying self employed Class 2 and voluntary Class 3 National Insurance Contributions have changed. HMRC have advised that individuals will need to use the new account details when making a payment. |
Businesses given more time to pay business rates |
Alistair Darling made a late change to the impact of business rate rises which were due to take effect in England from 1 April 2009. |
Budget day confirmed |
Chancellor Alistair Darling will present his Budget speech at 12.30pm on Wednesday 22 April 2009. We will keep you informed of any further developments. |
HMRC announce self assessment filing record |
According to HMRC, a record number of taxpayers filed their 2007/08 self assessment tax returns online. 5.75 million returns were filed online by the 31 January 2009 deadline, beating last year’s by over 50%. |
CBI predict deeper UK recession |
The latest CBI forecast predicts things are going to get worse for the economy before they get better. |
Marks & Spencer VAT win |
Marks and Spencer (M&S) won a landmark victory last year in the European Court of Justice (ECJ). The case concerned whether or not HMRC were correct to limit the amount of VAT they repaid to the company after their chocolate teacakes were reclassified as a cake rather than a chocolate biscuit. The issue of cakes and chocolate biscuits is an important one as cakes are zero rated rather than standard rated. The case dates back many years. |
Beneficial loan rate |
HMRC have announced a reduction in the beneficial loan rate of interest from 6.25% to 4.75% from 1 March 2009. This is the rate of interest which is used to calculate the value of the benefit provided to employees where they receive a cheap or interest free loan from their employer. |
Employment rights - statutory limits |
The limits on payments and awards made to workers in certain situations increased from 1 February 2009, where the event giving rise to the entitlement to the payment arose on or after this date. The increased limits affect statutory redundancy payments and compensatory awards for unfair dismissal. |
Business payment support services |
According to Government figures, over 60,000 businesses have agreed time to pay tax arrangements with HMRC which total more than one billion pounds. The Business Payment Support Service, which was introduced last autumn, provides a ‘fast track’ service that offers support to those needing more time to pay their tax bills. Terms can be quickly agreed over the phone. |
Employment law guidance programme |
The Department for Business, Enterprise and Regulatory Reform Employment Law Guidance Programme is designed to help employers save time and money when complying with their employment law obligations. |
Changes to the national minimum wage from 6 April 2009 |
The National Minimum Wage (NMW) rules have been with us for some years and require minimum rates of pay for certain workers. The government is now getting tough with those who do not pay the NMW. |
Higher late filing of accounts penalties – watch out! |
If you run your own company you will no doubt be aware that company law requires all companies to file a copy of their annual accounts at Companies House by their ‘due date’. Penalties become payable if these accounts are filed late. |
PAYE tax codes about to be issued |
HMRC have advised that they are about to issue PAYE tax codes to employees for the 2009/10 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, especially as many employees’ entitlement may need to be increased due to a change in the minimum holiday entitlement, which takes effect later this year. |
Pay HMRC by Direct Debit |
HMRC have announced that they are now able to offer more customers the option of paying by Direct Debit. If taxpayers are registered to use Self Assessment Online, PAYE Online for employers or Corporation Tax Online they can now set up Direct Debit payments online. Taxpayers can also make tax credit repayments by Direct Debit. |
Government help for businesses |
Richard Lambert, CBI Director-General, has given his analysis of the Government’s announcement on lending in the economy. |
Reduction in the standard rate of VAT |
The standard rate of VAT was reduced from 1 December 2008 from 17.5% to 15%. HMRC have published some further frequently asked questions which clarify the correct treatment in several situations. |
Health in Pregnancy grant |
Pregnant women are being urged to apply for the new Health in Pregnancy grant of £190. In order to qualify the baby must be due on or after 6 April 2009. |
New HMRC penalties |
Pregnant women are being urged to apply for the new Health in Pregnancy grant of £190. In order to qualify the baby must be due on or after 6 April 2009. |
HMRC warn about email fraud |
HMRC are warning taxpayers that recently they have been made aware of the email scams. |
Child Tax Allowance – Potential Refund for 2002/2003 |
It has recently come to light that many thousands of taxpayers may have omitted to claim a tax allowance due to them in the 2002/2003 tax year. |
Business Payment Support Service |
The Business Payment Support Service, announced in the Pre-Budget Report 2008, is designed to meet the needs of businesses affected by the current economic conditions. Any business that is worried about being able to meet tax, National Insurance or other payments owed to HMRC, or anticipates that payments becoming due will cause them problems, can get in touch with HMRC to discuss payment options to help them deal with temporary cash flow difficulties on 0845 302 1435. |
Changes to the advisory fuel rates from 1 January 2009 |
To reflect the reduction in fuel prices, HMRC have issued new advisory fuel rates for employees driving employer provided cars. These take effect for all journeys undertaken from 1 January 2009, so employers using the advisory rates should advise affected employees and update any expense forms as soon as possible. |
Demand for advice on redundancy and lay-offs |
Acas, the Advisory, Conciliation and Arbitration Service, have reported a sharp increase in the number of businesses and employees seeking advice on redundancy, lay-offs and business transfers. |
Cut in interest rates |
Commenting on the decision by the Bank of England’s Monetary Policy Committee to reduce interest rates by 1% to 2% earlier this month |
VAT - Extension of 14 day limit |
HMRC have issued further guidance to businesses on the reduction in the standard rate of VAT from 1 December 2008. The guidance clarifies certain issues regarding the ‘tax point’ rules for the date of supply. |
Double up on your duty free |
Travellers can now bring back more than double the amount of gifts and souvenirs from outside the EU without paying UK duty. The changes are as a result of a proposal that Gordon Brown made to the European Commission in 2004. The government has announced an increase to the allowance for what are known as 'other goods', which includes souvenirs, clothing, electrical goods and perfume. |
Capital allowances on cars |
HMRC have issued some draft legislation and guidance on how the tax relief on business cars, known as capital allowances, will be calculated from April 2009. |
Wilder Coe LLP raise money and hopes for charity |
Wilder Coe LLP were the proud sponsors of a charity quiz night held at Stevenage Borough Football Club last month. Together with the Club – who provided the venue free of charge – and those who attended and supported the charity evening, Wilder Coe LLP helped to raise a grand total of £1,137 in aid of the Cystic Fibrosis Trust |
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. |
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. |
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. |
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%. |
Tougher Penalties for Persistent Late Filing of Company Accounts and Returns with Companies House |
Late filing penalties are now doubled if accounts and returns for financial years beginning on or after 6 April 2008 are filed late in two successive years. |
Mandatory Company Trading Disclosures |
From 1 October 2008, new rules are in place to unify and replace the various regulations setting out the trading disclosures that incorporated companies must make to show their legal identity. This is now being monitored by Trading Standards and can result in a £5000 fine. |
Extra Take Home Pay |
For many employed individuals who are checking their payslip this month it should include a welcome bonus of a £60 reduction in their income tax deduction. |
Temporary Exemption On Stamp Duty Land Tax |
In a move to help the property market and first time buyers, Alistair Darling has introduced a Stamp Duty Land Tax (SDLT) exemption or holiday for purchases of residential property from 3 September 2008 to 2 September 2009 (inclusive). |
Fake HMRC Emails |
HMRC are warning taxpayers that they are aware of a high number of emails being sent out offering a tax rebate. |
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. |
NMW Rates To Rise |
National Minimum Wage (NMW) rates are set to rise from 1 October 2008. |
HSE Don’t Ban This, That And The Other |
The Health and Safety Executive (HSE) are keen to dispel the myth that they are responsible for banning ‘this, that and the other’. |
Proposed Strict New Jobs List |
The UK Border Agency is proposing to introduce a new list of shortage jobs in order to better target migration at the needs of British businesses. |
Accountants Welcome Tax Specialist To Team |
London chartered accountants Wilder Coe LLP have further strengthened their team with the appointment of a new senior tax manager. |
Gift Aid Transitional Relief |
Charities are entitled to claim a tax repayment in respect of gift aid donations made by individuals. |
Reducing Employers’ Administration |
The Department for Business, Enterprise & Regulatory Reform (BERR), has launched a campaign advising employers on how they can reduce the amount of administration involved in dealing with their employment law obligations. |
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. |
Salary Sacrifice Arrangements |
Salary sacrifice is a complex area which should not be overlooked. |
Penalties |
HMRC have published a leaflet on the new HMRC penalties warning tax payers to make sure that their records are sufficient to comply with the new penalty regime. |
‘Paper’ Tax Return Deadline Looming |
HMRC are reminding taxpayers who wish to complete paper self assessment tax returns that the new 31 October 2008 deadline is ‘only weeks away’. |
Licence To Bring In Migrant Workers |
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. |
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. |
Stamp Duty Threshold Raised In A Bid To Help Buyers |
The government has announced a package of measures to help boost a struggling property market, including raising the stamp duty land tax threshold by £50,000. Brought in for a twelve month period from 3rd September 2008 to 3rd September 2009, a home must now sell for £175,000 before stamp duty is paid. |
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. |
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. |
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. |
HMRC Penalties For Errors |
HMRC have issued revised guidance on the system of penalties which they will be able to apply to taxpayers. |
£10,000 VAT Errors |
Businesses have long been allowed to correct net errors not exceeding £2,000 in their VAT returns. |
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. |
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. |
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. |
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. |
Illegal Working |
For many years, there have been requirements for employers to verify the identity of their workers in order to prevent illegal working. |
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). |
Tax Freedom Day |
This year ‘Tax Freedom Day’ fell on June 2. The statistics make interesting reading in that the average UK taxpayer spends more than five months of the year working for the government as opposed to working for themselves. |
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. |
Surfing At Work |
According to the CBI the average UK office worker spends 95 minutes of their working week surfing the web for personal use. This they estimate costs the economy £10.6 billion a year. |
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. |
Increase In Personal Allowances |
Tucked away in a recent issue of ‘Notes for payroll software developers’ is a bit more information on the timescale for the increase in the current year’s personal allowance from £5,435 to £6,035 and the reduction in the higher rate point from £36,000 to £34,800. |
International Insolvency Focus Group |
Licensed Insolvency Practitioner Norman Cowan of Wilder Coe LLP has spoken out about insolvency and the global credit crunch at a recent conference in Luxembourg. |
Accountant Shares Expertise With Legal Specialists |
A partner at London chartered accountants Wilder Coe LLP has been giving a specialist group of lawyers an insight into his specialist insolvency work. |
22 Million Taxpayers Compensated In 10p Tax U-Turn |
The government has announced plans to compensate UK taxpayers for the abolition of the 10p income tax rate. The package of measures includes an increase in the annual personal allowance of all basic rate taxpayers. |
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. |
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. |
P11D Deadline Looming |
The forms P11D, which report employees and directors benefits in kind and expenses, are due for submission by 6 July 2008 for the year ended 5 April 2008. |
Employment Support Allowance |
Incapacity Benefit and Income Support are to be replaced by Employment Support Allowance (ESA). The change takes effect from 27 October 2008. |
Skills Gap |
With school and college students preparing to start the summer term and sit final examinations, the CBI has published the results of a new annual audit of the nation’s skills. |
Employees Entitled To Know More |
The Information and Consultation of Employees Regulations 2004 have been extended to cover undertakings with 50 or more employees from 6 April 2008. |
Entrepreneurs’ Relief |
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. |
Marks & Spencer VAT Win |
M&S have won a landmark victory in the European Court of Justice. The case concerned whether or not HMRC were correct to limit the amount of VAT they repaid to the company after their chocolate teacakes were reclassified as a cake rather than a chocolate biscuit. |
Accountant Joins Select Team Of Specialists |
A partner at a firm of London Chartered Accountants Wilder Coe LLP has joined a select group of specialist accountants. |
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 LLP 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. |
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