tag:blogger.com,1999:blog-7200464388540389092024-03-14T06:36:14.883+00:001st Addition Accountancy blog : The 1st EditionAlan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.comBlogger81125tag:blogger.com,1999:blog-720046438854038909.post-38698188504625366742010-09-08T23:38:00.013+01:002010-09-10T19:18:46.255+01:00HMRC Tax Error. The Facts.<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_9wsB9zCIi6s/TIgZPxRirII/AAAAAAAAAUw/_pxdihBDWnw/s1600/business+man+reading+BE+2.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 181px; height: 272px;" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/TIgZPxRirII/AAAAAAAAAUw/_pxdihBDWnw/s400/business+man+reading+BE+2.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5514685502430817410" /></a><div style="text-align: left;"><span class="Apple-style-span"><span class="Apple-style-span" style="border-collapse: collapse; font-size: 14px; line-height: 18px;"><p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal"><span class="Apple-style-span"><span class="Apple-style-span" style="font-size: 11px;"></span></span></p><span class="Apple-style-span"><p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal"><span class="Apple-style-span" ><span class="Apple-style-span" style="font-size: 13px;"></span></span></p><span class="Apple-style-span" ><p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal"><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB">Almost 6 million people have been caught up in what has been dubbed a huge <a href="http://www.guardian.co.uk/money/tax" title="More from guardian.co.uk on Tax"><span style="color:#005689;text-decoration: none;text-underline:none">tax</span></a> blunder. Here we look at who is affected and what they can do.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB">What's happened?</span></b></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: normal"><span class="Apple-style-span" style="font-size: 16px; ">In a nutshell, around 4.3 million people have paid too much tax through the Pay As You Earn (PAYE) system, while HM Revenue & Customs says a further 1.4 million people have not paid enough tax.</span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">How has this happened?</span></b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">Every year, HMRC checks that the amount of tax and national insurance deducted by the employer matches the information held on its records. This is called the "end of year reconciliation" process.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">However, this wave of errors is linked to the introduction in June 2009 of a new IT system, which holds all the information on an employee in one place, rather than having it spread over several different systems - making it easier to see if people have paid the wrong amount of tax.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">The Revenue admitted a few months ago that the transition to the new system had "brought to light discrepancies... and this is resulting in a number of incorrect [PAYE coding] notices being issued".<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">This same system is now being used to do the reconciliation process for the tax years 2008-09 and 2009-10 - resulting in these new underpayment and overpayment calculations.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">What sort of people are affected?</span></b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">The wrong amount of tax may have been paid if people failed to tell HMRC about a change to their circumstances, such as starting a new job, having more than one job or receiving a new benefit through work, such as a company car. Individuals may also have paid the wrong amount of tax if their employer has used the wrong tax code.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">How do I know if I'm one of them?</span></b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">HMRC this week began sending out the first batch of letters to around 45,000 of those affected. It will contact the remaining people between now and early January. "Most people have paid the right amount of tax so won't get a letter from us with a revised tax calculation. So don't worry if you don't receive a letter (and there is no need to contact us if you haven't received one)," says the Revenue.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">How does the Revenue intend to take the money back?</span></b><span style="font-size:12.0pt; font-family:"Arial","sans-serif";mso-fareast-font-family:"Times New Roman"; color:#333333;mso-fareast-language:EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">If you owe less than £2,000, you won't get a bill - instead, your tax code will be changed from April 2011. Effectively, you will pay it back in monthly instalments deducted from your salary during the 2010/2011 tax year.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">If you owe more than £2,000, you must repay the amount in a lump sum.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">Do I have to pay up?</span></b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">Some experts said people hit with an unexpected tax demand may be able to refuse to pay up as Revenue & Customs could have exceeded its own time limits in which to ask for the money.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">The Low Incomes Tax Reform Group said any calculations produced by HMRC which result in an underpayment of tax should be treated with caution. It is urging recipients to "check and challenge" them.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">"The underpayment may have arisen because HMRC have failed to make timely use of information about you which they have had in their possession," said the group. In such cases, individuals have the right to ask for the unpaid tax to be written off through what is known as an "Extra Statutory Concession" or ESC A19.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">The rules state that if Revenue & Customs was provided with all the necessary information needed to correctly attribute a tax code, it should have used this within 12 months of the end of the tax year in which it was received to claw back the full amount of money. As a result, individuals cannot normally use ESC A19 to ask for tax owing for 2009/10 to be written off, but a group spokesman said: "If HMRC have persistently got something wrong year after year, we would expect them to write the tax off for all years up to and including 2009/10."<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">Is there some help available?</span></b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-line-height-alt: 10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB">The Low Incomes Tax Reform Group was one of the first to produce sample letters that those affected can tailor to their own situation and send off to HMRC in an attempt to get the underpayments waived. Its guide, including the template letters, is available from the LITRG website via the link: <a href="http://tinyurl.com/taxletters" title=""><span style="color:#005689; text-decoration:none;text-underline:none">http://tinyurl.com/taxletters</span></a><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-line-height-alt: 10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB">What if I can't afford to pay back the money?</span></b></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-line-height-alt: 10.35pt"><span class="Apple-style-span" style="font-size: 16px; ">HMRC advises people who genuinely cannot afford to pay the tax to contact it to see if it can come to some arrangement with them. It may be that they can pay some now and some in the future. This will be done on a case by case basis.</span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><b><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">What is happening with refunds?</span></b><span style="font-size:12.0pt;font-family:"Arial","sans-serif"; mso-fareast-font-family:"Times New Roman";color:#333333;mso-fareast-language: EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">Around 4.3 million people have paid too much tax, and are due average refunds of £420. If you are one of them, a "payable order" (essentially a cheque) should be sent to you within five to 14 days of receiving the letter.<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:7.5pt;mso-line-height-alt:10.35pt"><span style="font-size:12.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:#333333;mso-fareast-language:EN-GB">Source: www.guardian.co.uk (To view the original article, click on the heading at the top of this post).</span></p></span><p></p></span><p></p></span></span></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com26tag:blogger.com,1999:blog-720046438854038909.post-59266110945295559412010-05-24T23:16:00.006+01:002010-05-26T23:40:09.243+01:00Worried About Renewing Your Tax Credits? New Video Help Is Available.<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/S_2i0kc0IXI/AAAAAAAAAUQ/EF5vbUl73aw/s1600/wallet(1).jpg"><img id="BLOGGER_PHOTO_ID_5475711745973821810" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 300px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/S_2i0kc0IXI/AAAAAAAAAUQ/EF5vbUl73aw/s400/wallet(1).jpg" border="0" /></a>As 31 July rapidly approaches, many of you will be mindful of the need to complete your Tax Credits Annual Renewal Pack.<br /><br /><div>For those of you who are still unsure as to how to go about it, HMRC have released a series of brief videos to make the whole process a little simpler.</div><br /><div>You can check these out here:</div><br /><div><a href="http://campaigns.direct.gov.uk/taxcreditsvideos/index.html?cid=taxcreditsvideos&cre=mainimage">http://campaigns.direct.gov.uk/taxcreditsvideos/index.html?cid=taxcreditsvideos&cre=mainimage</a></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com13tag:blogger.com,1999:blog-720046438854038909.post-32396409155420274662010-04-21T14:31:00.005+01:002010-04-21T15:02:13.402+01:00HMRC Introduces New Self Assessment Three Line Account Limit (TLA)<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/S88EjnXi0pI/AAAAAAAAATo/E2Ks1_-hRoA/s1600/2400057181_ff7abae933_m.jpg"><img id="BLOGGER_PHOTO_ID_5462589882933367442" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 275px; CURSOR: hand; HEIGHT: 211px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/S88EjnXi0pI/AAAAAAAAATo/E2Ks1_-hRoA/s400/2400057181_ff7abae933_m.jpg" border="0" /></a>For those of you who complete your own Self Assessment Tax Returns, there has, for a number of years, been a concession in place for smaller businesses, below the qualifying threshold.<br /><div></div><br /><div>Under this concession, full accounting information was not required to be shown on the Return. Instead, the financial position could be summarised in just 3 lines; Turnover, Total Expenses and Profit or Loss, thereby keeping the whole process much simpler.</div><br /><div>For the tax year to 5 April 2010 onwards, the limit for providing details of just these three items has been increased from £30,000 for self employed, and £15,000 for those with property income, to permanently bring them in line with the VAT registration threshold (currently £68,000).</div><br /><div>This means that, if your turnover is less than the limit, you no longer need to provide a detailed breakdown of your business or property expenses. Instead, all you need to provide is;</div><ul><li>Business Details</li><li>Turnover</li><li>Total Allowable Business Expenses</li><li>Net Profit or Loss</li><li>Details of Any Adjustments, Allowances And Losses</li></ul><p>The TLA facility is optional. You are, however, still required to maintain adequate business records. Details of how to do this can be found on one of our earlier posts, at; <a href="http://1staddition.blogspot.com/2010/03/hmrc-issues-keeping-records-factsheet.html">http://1staddition.blogspot.com/2010/03/hmrc-issues-keeping-records-factsheet.html</a></p>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com14tag:blogger.com,1999:blog-720046438854038909.post-14193613838402713542010-04-07T16:58:00.005+01:002010-04-07T17:23:59.498+01:00New PAYE Late Payment Penalties<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/S7yxKA-_NwI/AAAAAAAAATg/NxwNVkexcMc/s1600/3320207150_13f727abb5_m.jpg"><img id="BLOGGER_PHOTO_ID_5457431634087196418" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 386px; CURSOR: hand; HEIGHT: 260px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/S7yxKA-_NwI/AAAAAAAAATg/NxwNVkexcMc/s400/3320207150_13f727abb5_m.jpg" border="0" /></a>Employers and contractors may be liable to penalties if they do not <a href="http://3.bp.blogspot.com/_9wsB9zCIi6s/S7ywzIwARZI/AAAAAAAAATY/scaeJaqUPSc/s1600/3320207150_13f727abb5_m.jpg"></a>pay PAYE, National Insurance contibutions, Construction Industry Scheme deductions and student loan deductions on time and in full for periods starting on or after yesterday, 6 April 2010. <div><br /><div>HMRC have produced a guide to these new penalties, Which apply to all employers and contractors, from May 2010.</div><br /><div>These penalties are in addition to any interest charged. Full details can be found on the HMRC website:</div><br /><div><a href="http://www.hmrc.gov.uk/paye/problems-inspections/late-payments.htm">http://www.hmrc.gov.uk/paye/problems-inspections/late-payments.htm</a></div></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com3tag:blogger.com,1999:blog-720046438854038909.post-75180965552469616122010-03-25T00:01:00.010+00:002010-03-25T00:24:51.650+00:002010 Budget. A Quick Summary<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/S6qpxpOp1OI/AAAAAAAAATQ/6su4cqkax6Q/s1600/2330106139_c4c1b1637d_m.jpg"><img id="BLOGGER_PHOTO_ID_5452356969231406306" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 292px; CURSOR: hand; HEIGHT: 254px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/S6qpxpOp1OI/AAAAAAAAATQ/6su4cqkax6Q/s400/2330106139_c4c1b1637d_m.jpg" border="0" /></a>Today saw the presentation of Alistair Darling’s much anticipated pre election budget.<br /><br />Let’s face it, it was hardly going to be an easy task with three main issues to contend with.<br /><br />The first big challenge for Mr Darling was that of the current financial deficit.<br /><br />The second headache to contend with is that of unemployment.<br /><br />Finally, there was the added pressure of knowing that this budget was the last one before the upcoming General Election, with all the media and public attention that would, inevitably ensue.<br /><br /><strong><em>The Basics<br /></em></strong><br />Mr Darling confirmed a growth forecast of 1-1.5% for 2010 and growth of 3-3.5% in 2011. The national debt was forecast to fall from 56% to 54% of GDP in 2009/10.<br /><br />Borrowing was lower than the £178 billion forecast in the last Budget at £167 billion for 2009/10.<br /><br />He also predicts the national deficit will fall to £163 billion in 2010/11, £131 billion in 2011/12, £89 billion 2013/14 and £74 billion in 2014/15.<br /><br />There are a number of reasons why the deficit is not as bad as predicted.<br /><br />Firstly, there is the income derived from bankers’ bonuses. The super tax was originally introduced to deter high bankers’ bonuses, however, much to the dismay of the banks’ shareholders, these bonuses were still paid, resulting in a £2 billion reduction in the overall deficit.<br /><br />Secondly, with the announcement of the increase of the top level of income tax to 50%, from 6 April, many business owners will have taken larger than normal dividends from their companies, in order to take advantage of the 40% rate, while they still can.<br /><br />Whilst this will have swelled the coffers of the Government, for now, it’s likely that, as a result, April will be a particularly bad month.<br /><br />Also, the return of the VAT rate, to 17.5%, will have had an impact on incoming revenues.<br /><br />Public sector cuts of £5 billion were announced for the coming financial year and £11 billion of further efficiency savings, with 15,000 civil servants to be relocated out of London within the next five years. Public sector pay rises will be held at maximum of 1% until 2013.<br /><br /><strong><em>The Highs</em></strong><br /><br />There were no new hikes in VAT, income tax, capital gains tax or national insurance. The inheritance tax threshold is frozen at £325,000 for a further four years.<br /><br />Mr Darling moved to combat financial exclusion with the guarantee that everyone will have a basic bank account under new legislation to be announced.<br /><br />The child tax credit to increase by £4 a week for one and two-year-olds from 2012.<br /><br />The guarantee of a job or training for all 16 to 24-year-olds, who have been unemployed for 6 months, was extended, by a year, to March 2012.<br /><br />The tax-free ISA limits, having risen from £7,200 to £10,200 (with 50% being in cash) will now increase annually in line with inflation.<br /><br />Help will be provided for first-time buyers, and the faltering housing market, through the doubling of the stamp duty threshold to £250,000 for two years but for first-time buyers only. The measure will be paid for through an increase in stamp duty to 5% for homes priced at £1 million and above, effective midnight Wednesday.<br /><br />The 3p fuel duty increase previously announced will now be phased in by 1p a month from April, another 1p in October and a final 1p in January 2011. The chancellor also allocated £285 million to improve motorway network and £100 million for the maintenance of local roads.<br /><br />Higher winter fuel payment for pensioners will be renewed for another year - worth £250 or £400 a year for over-80s. Also, from next month, because of above-inflation increases in the basic state pension, and the introduction of the pension credit, every pensioner will be entitled to a weekly income of £132.60.<br /><br />According to the chancellor, almost 400,000 more people now go to university than when Labour came to power in 1997.To help support this growing student base, the government will provide £270 million funds in 2010/11, with a specific focus on key subject like science, engineering, tech and maths.<br /><br />The chancellor announced a £2.5 billion one-off growth package to help small businesses and invest in key skills. New measures to force Lloyds and RBS to issue £94 billion of new business loans were also announced. A new growth fund of £200 billion for small businesses unveiled for coming financial year. Annual investment tax allowance for small businesses doubled to £100,000 and entrepreneur tax relief threshold increased to £2 million.<br /><br />Mr Darling also vowed to sell shares in state-owned banks in a way that "gets all taxpayers money back" - but offered no concrete measures.<br /><br />The feared increase in VAT, from 17.5% to 20%, in line with some of our European cousins, never actually materialised, neither did any hikes in PAYE & National Insurance. (Let’s see what happens after the Election)<br /><br /><strong><em>The Lows<br /></em></strong><br />Duty on cider will rise at 10% above inflation from midnight Sunday in measure designed to tackle binge drinking.<br /><br />Duty on beer, wine and spirits to rise by 2%, also from Sunday.<br /><br />Tobacco duty will rise at 1% above inflation from midnight Wednesday.<br /><br /><strong><em>Conclusion</em></strong> <p>So, once again, on the face of it, there are way more highs than lows in this budget, but it is a cautious and, some would argue, non committal one. Then again, few of us would expect anything any different, this close to an Election.</p><p>On the whole, this budget has been welcomed, as a positive step forwards, but there are many, myself included, who have concerns as to the over optimism of many of Mr Darling’s predictions.</p><p>CBI director-general Richard Lambert summed up the general consensus in his statement; </p><p>"With the election just weeks away, this was a clever, political Budget. However, anxiety remains on how the deficit is going to be paid down, and the growth forecasts for 2011 and beyond are still on the optimistic side"</p>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com3tag:blogger.com,1999:blog-720046438854038909.post-72835931828618489882010-03-22T21:57:00.012+00:002010-03-22T23:19:57.212+00:00HMRC Produces First Ever 'Super Podcast'<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/S6fuLl4QDyI/AAAAAAAAATI/MAz5MuRIzeg/s1600-h/3170133435_241ed53923_m.jpg"><img id="BLOGGER_PHOTO_ID_5451587756869291810" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 395px; CURSOR: hand; HEIGHT: 274px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/S6fuLl4QDyI/AAAAAAAAATI/MAz5MuRIzeg/s400/3170133435_241ed53923_m.jpg" border="0" /></a>This month, HMRC launched it's first ever 'Super Podcast'. In it, HMRC experts, Stephen Banyard and Don Macarthur discuss forthcoming VAT, PAYE and Corporation Tax filing.<br /><br />You can check out the podcast below:<br /><br /><a href="http://podcasts.hmrc.gov.uk/audio/21-HMRC_Superpodcast.mp3">http://podcasts.hmrc.gov.uk/audio/21-HMRC_Superpodcast.mp3</a><br /><br />If you prefer, you can view a transcript of the podcast at the following link.<br /><br /><p><a href="http://www.hmrc.gov.uk/podcasts/super-podcast.pdf">http://www.hmrc.gov.uk/podcasts/super-podcast.pdf</a></p>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com4tag:blogger.com,1999:blog-720046438854038909.post-77797490269683676082010-03-16T21:18:00.003+00:002010-03-16T22:28:09.445+00:00HMRC Issues The 'Keeping Records' Factsheet<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/S6AF0DSJBeI/AAAAAAAAATA/KkDP7A7d3hY/s1600-h/Reading+glasses+and+accounting+books+and+calculator.jpg"><img id="BLOGGER_PHOTO_ID_5449361940911031778" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 264px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/S6AF0DSJBeI/AAAAAAAAATA/KkDP7A7d3hY/s400/Reading+glasses+and+accounting+books+and+calculator.jpg" border="0" /></a>The Keeping Records Factsheet is the first in a series to be published shortly, by HMRC, giving guidance on a variety of useful topics.<br /><br /><div></div><div>If you're starting out in self employment, or just interested to know what the requirements are, it might be worth a look.</div><br /><div><a href="http://www.hmrc.gov.uk/record-keeping/index.htm">http://www.hmrc.gov.uk/record-keeping/index.htm</a></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com3tag:blogger.com,1999:blog-720046438854038909.post-55071956423243176552010-01-24T20:39:00.009+00:002010-03-03T09:11:43.524+00:00Download Your Free 'Complete Guide To Tax And Expenses'<a href="http://1.bp.blogspot.com/_9wsB9zCIi6s/S1y1CRqd74I/AAAAAAAAAS4/aixeOsAHMcQ/s1600-h/Complete+Guide.jpg"><img id="BLOGGER_PHOTO_ID_5430414301407866754" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 267px; TEXT-ALIGN: center" alt="" src="http://1.bp.blogspot.com/_9wsB9zCIi6s/S1y1CRqd74I/AAAAAAAAAS4/aixeOsAHMcQ/s400/Complete+Guide.jpg" border="0" /></a>The Home Business Network is producing a series of 'Complete Guides' to running a business from home. <div><br /><div>There are, currently, two guides in the series, The Complete Guide to Legal Requirements, and The Complete Guide To Tax And Expenses.</div><br /><div>The latter has been written by 1st Addition CEO, Alan Young.<br /></div><div></div><div>You can check out a brief overview of the Tax & Expenses guide, and download both guides from the Home Business Network web site.</div><br /><div><a href="http://www.homebusinessnetwork.co.uk/completeguide">http://www.homebusinessnetwork.co.uk/completeguide</a></div><br /><div>Between the two guides, you should be able to answer most questions arising from starting and running a business from home, so why not check them out.</div></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com2tag:blogger.com,1999:blog-720046438854038909.post-21564208859144007302010-01-24T16:01:00.008+00:002010-01-24T16:49:14.920+00:00HMRC Warns of New Phishing Scams<a href="http://1.bp.blogspot.com/_9wsB9zCIi6s/S1x3vP6y5QI/AAAAAAAAASo/mBavPjZ95D8/s1600-h/Phishing.jpg"><img id="BLOGGER_PHOTO_ID_5430346904312669442" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 175px; CURSOR: hand; HEIGHT: 222px" alt="" src="http://1.bp.blogspot.com/_9wsB9zCIi6s/S1x3vP6y5QI/AAAAAAAAASo/mBavPjZ95D8/s400/Phishing.jpg" border="0" /></a>In January 2010 HMRC issued new guidance on current phishing scams now in circulation.<br /><br /><div>This is something that is very much on the increase, with at least a dozen of our own clients having received one or more of these in the last month or so.</div><br /><div>The key scams are listed on the HMRC web site as follows:</div><br /><div><strong><em>You have 1 new ALERT message</em></strong></div><br /><div>An email from "HMRC Online services - test@test.com" is being issued, stating the recipient has 1 new ALERT message, and should log into their Online Account to read the message.</div><div><br />The email contains a link to a fraudulent website that requests the disclosure of personal account information and password.</div><br /><div>The email is not from HMRC. If you have received a copy please forward it to them at <a href="mailto:phishing@hmrc.gsi.gov.uk">phishing@hmrc.gsi.gov.uk</a>.<br /></div><br /><div><strong><em>Tax rebate</em></strong><br /></div><br /><div>HM Revenue & Customs (HMRC) would not inform customers of a tax rebate via email, or invite them to complete an online form to receive a rebate of tax.</div><div><br />Do not visit the website contained within the email or disclose any personal or payment information.<br /></div><div>Email addresses used to distribute the tax rebate emails include:<br /></div><br /><div>tax.refunds@hmrc.gov.uk<br />attached.form@hmrc.attached.gov.uk<br />service@hmrc.gov.uk<br />hmrcrefunds@hmrc.gov.uk<br />refundsdept@ir-efile.gov.uk<br />noreply@hmrk.co.uk<br />customers@hmrc.gov.uk<br />taxcredits@hmrc.co.uk<br />officer.robinson@hmrc.co.uk<br />securemail@hmrc.gov.uk<br /></div><br /><div>HMRC does not send out emails using these email addresses.<br /></div><br /><div>An example of the tax rebate scam:<br /></div><br /><div><a href="http://www.hmrc.gov.uk/security/tax-rebate-exple.pdf">Example 1 (PDF 22K)</a> (added 21 August 2009)</div><br /><div><a href="http://www.hmrc.gov.uk/security/scamexample.pdf">Example 2(PDF 43K)</a> (added 6 July 2009)</div><br /><div><a href="http://www.hmrc.gov.uk/security/phish-scam-0109.pdf">Example 3(PDF 211K)</a> (added 7 January 2009)<br /></div><br /><div><strong><em>Notice of Underreported Income</em></strong><br /></div><br /><div>Emails entitled Notice of Underreported Income are currently being circulated from<br /></div><br /><div><a href="mailto:no-reply@hmrc.gov.uk">no-reply@hmrc.gov.uk</a><br /><a href="mailto:relations@hmrc.gov.uk">relations@hmrc.gov.uk</a><br /><a href="mailto:commuinication@hmrc.gov.uk">commuinication@hmrc.gov.uk</a><br /></div><br /><div>The email links to a fake HMRC website entitled 'Fraud Application' and asks that you download and review a tax statement document. The website then opens an executable file on your machine. </div><div><br />The email is not from HMRC. You should be aware that opening executable files (.exe) over the internet can potentially compromise the security on your machine.<br /></div><div>HMRC do not issue emails asking for personal details.<br /></div><br /><div>Do not visit the website contained within the email or disclose any personal or payment information.<br /></div><br /><div>If you receive an email requesting such information, please forward it to </div><div><a href="mailto:phishing@hmrc.gsi.gov.uk">phishing@hmrc.gsi.gov.uk</a> and then delete it.<br /></div><div><strong><em>National Insurance Contributions email<br /></em></strong></div><br /><div>An email is in circulation entitled National Insurance Contributions, stating that a payment has not been made. The email contains a link to a fraudulent website that requests the disclosure of payment/personal details. The email is not from HMRC.<br /><a name="cert"></a></div><br /><div><strong><em>Update from HM Revenue & Customs' email</em></strong><br /></div><br /><div>HMRC has received reports of emails being sent asking recipients to 'update your account to the new EV SSL certification'. This is a scam email attempting to steal User IDs and passwords.<br /></div><br /><div>The email is being sent from <a href="mailto:info@hmrc.gov.uk">info@hmrc.gov.uk</a>.<br /></div><br /><div><a href="http://www.hmrc.gov.uk/security/ssl-certification.pdf">An example can be seen here (PDF 21K)</a><br /></div><br /><div>You should never disclose personal information such as User IDs or Passwords.<br /></div><br /><div><strong><em>Approval of funds scam email</em></strong><br /></div><br /><div>An email is being issued displaying the email address postmaster@hmrc.co.uk with the subject 'You are a winner of 168,240.00 GBP'.</div><br /><div>The email features an attachment and requests that personal details are recorded on the attachment and forwarded to <a href="mailto:info@lloydstsbprize.com">info@lloydstsbprize.com</a>.<br /></div><br /><div><strong><em>Previous phishing scams<br /></em></strong></div><br /><div>The following are phishing attempts that you need to be aware of. Each of these has been reported to HMRC previously. </div><div><br />Anti-Terrorist Certificate - this is a scam involving postal items supposedly being stopped by Customs that require the purchase of an Anti-Terrorist Certificate before being released. There is no such certificate in existence within HMRC.<br /></div><div>Child Benefit and Income Support - unsolicited emails are being issued advising the recipient may be entitled to Child Benefit. A non-departmental email address and mobile numbers are being used as the contact points for this scam. <a href="http://www.hmrc.gov.uk/security/chb-scam.pdf">An example of the Child Benefit and Income Support scam (PDF 26K)</a>.<br /></div><br /><div>Compensation - this scam is aimed at people who supposedly have already been the subject of a fraud attempt. The email requests personal details on the pretext that compensation will be paid. <a href="http://www.hmrc.gov.uk/security/compensation.pdf">An example of the compensation scam (PDF 32K)</a>.<br /></div><div>Export Clearance Process (Delivery Stop Order) - a number of frauds state that a parcel containing a cheque in respect of lottery winnings, or a legacy left in a will, has been held up by Customs at an airport or dock and requires payment of a percentage of the winnings. This will be a fraud. <a href="http://www.hmrc.gov.uk/security/stop-order.pdf">An example of the Export Clearance Process (Delivery Stop Order) (PDF 92K)</a>.<br /></div><br /><div>Fake P86 form - letters are being sent with fake P86 Forms, which ask for personal information from taxpayers employed outside the UK. These forms are fake and should not be completed. <a href="http://www.hmrc.gov.uk/news/fraud-p86.htm">Further details can be found at Fraud attempt - Fake P86 Form</a>.<br /></div><br /><div>Lottery winnings - emails requesting tax payments are required to release funds won on a foreign lottery. This is fraud. An example of the <a href="http://www.hmrc.gov.uk/security/stop-order.pdf">Stop Order fraud (PDF 92K)</a><br /></div><br /><div>Telephone variations - the individual may be contacted by telephone rather than email. HMRC has seen examples where customers are contacted by someone purporting to be from HMRC, claiming that a rebate of tax was due and requesting for payment details to make the payment into. Please note: HMRC would only notify you of eligibility to a tax rebate in writing, not over the phone or email. If you are asked to give any personal details over the telephone you should always check with HMRC that the caller is a genuine representative of the department. </div><br /><div><em>Source: </em><a href="http://www.hmrc.gov.uk/security/examples.htm"><em>http://www.hmrc.gov.uk/security/examples.htm</em></a></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-2758615228193658402009-12-20T19:58:00.008+00:002010-01-03T12:34:09.002+00:00Are We Making The Most Of The Video Revolution?<a href="http://3.bp.blogspot.com/_9wsB9zCIi6s/Sy6Rs_2Ps2I/AAAAAAAAASg/zgKn2WxF-Ww/s1600-h/youtube-search-200x157.jpg"><img id="BLOGGER_PHOTO_ID_5417427604012512098" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 157px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_9wsB9zCIi6s/Sy6Rs_2Ps2I/AAAAAAAAASg/zgKn2WxF-Ww/s400/youtube-search-200x157.jpg" border="0" /></a>Ever wondered if search is important for video?<br /><span style="color:#ffffff;">.</span><br /><div></div><div>In November of last year, YouTube surpassed Yahoo for the first time in total U.S. search queries, making it the second largest search engine, surpassed, only, by its owner, Google.</div><br /><div>Since then, YouTube has continued to dominate the search space in respect of the total number of search queries.<br /></div><div>When you think that all the searches on Youtube are users looking for video content in particular, there is no doubt that YouTube is THE largest video search / discovery destination.</div><br /><div>In October, 2009, there were more than 3.7 Billion search queries on YouTube as measured by comScore. This represents and increase of more than 31 percent year on year (vs 2,580,000.000 queries in Oct. 2008) and an increase of 7% over just last month.</div><br /><div>Yahoo, although still the 3rd largest search engine, has now fallen more than 1 billion queries per month behind YouTube.</div><br /><div>It stands to reason, then, that anyone not using You Tube as a promotional tool could, possibly, be missing out on a vast potential audience.</div><br /><div>This is something we, at 1st Addition, are taking very seriously, and, some time ago, we set up our own channel on YouTube, in order to showcase the key videos we use for both educational and promotional purposes (as well as one or two of our favourite humerous ones). You can check this channel out at; <a href="http://www.youtube.com/user/1stAddition">http://www.youtube.com/user/1stAddition</a></div><br /><div></div><div>Also, in the spirit of moving with the times, wherever possible, from here on in, the key posts in this blog will now also be in video format. As well as being more user friendly, these videos will also be uploaded to YouTube, thereby increasing both our online presence, and SEO rankings, due to increased incoming traffic.</div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com5tag:blogger.com,1999:blog-720046438854038909.post-30608600943831928372009-12-10T02:12:00.007+00:002009-12-10T02:58:37.678+00:00Pre Budget Report 2009. A Quick Summary<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/SyBa5Ru8rVI/AAAAAAAAASQ/3HGqUJfYM8o/s1600-h/PBR+2009.jpg"><img id="BLOGGER_PHOTO_ID_5413426692158696786" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 250px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/SyBa5Ru8rVI/AAAAAAAAASQ/3HGqUJfYM8o/s400/PBR+2009.jpg" border="0" /></a>Yesterday saw Mr Darling’s second Pre Budget Report since taking office last year. So, how does it compare with last years, and how will it affect us all?<br /><br />Some of you may recall that my main concern last year, as it was for most commentators, was the optimistic nature of the Mr Darling’s projections, both in terms of future economic growth and potential cost savings.<br /><br />In the 2008 Pre Budget Report, the Chancellor predicted 2009 borrowings of £78bn, rising to £118bn in 2010. (Earlier in 2008, he was predicting borrowings of £38bn).<br /><br />So where are we now? Well, according to Mr Darling, the Government will spend £178bn more than it earns, this year alone, with overall borrowings rising by £789bn in the next 5 years.<br /><br />The concern at the moment is that these projections are based on assumptions that the economy will start to grow rapidly, and that taxes will rise, after which, the level of debt should fall. Bearing in mind the Chancellor’s ongoing history of extreme optimism, it’s not the most encouraging of plans.<br /><br />Ok, but why is this Pre Budget Report so important? Well, it’s the last throw of the dice (perhaps a rather unfortunate analogy) for Labour and it will lay down some of the policies that will be used to fight the general election next year. This is particularly important, as we plough our way through the longest recession on record, when employment is on the increase, and Labour are about as popular as a fart in a spacesuit.<br /><br />The Government really needs to cut spending and increase taxes if they are to tackle our current debt crisis, but that will hardly boost their popularity in the run up to the election.<br /><br />So that’s where we are, but what’s the plan, and how will it actually affect us?<br /><br /><strong><em>The Highs</em></strong><br /><br />Bankers’ bonuses will, effectively, be taxed at 90%. (Yes, I know that’s not a high, if you’re a banker, but I can’t help feeling it will raise an approving smile from the majority of us) The bankers, themselves, already pay tax of 40% on these bonuses, and, now the banks, themselves, will also have to pay a further 50% of any bonuses in excess of £25,000. Sounds great, but it is only expected to raise around £500 million, a drop in the £178bn deficit ocean expected this year alone.<br /><br /><div>The 2008 Pre Budget Report announced plans to allow businesses to spread their tax payments in times of financial hardship. This has now been extended “for as long as it is needed” which should avoid too many businesses going bust as a result of a large, unexpected tax demand.<br /></div><br /><div>The ‘Access To Credit Scheme” has been extended. This is the scheme whereby the Government guarantees borrowing by businesses, thereby increasing the likelihood of the banks lending to them.<br /></div><br /><div>Empty property relief (where empty properties, with a rateable value below £18,000, are not subject to business rates, as long as they remain empty) has also been extended.<br /></div><br /><div>The Increase in small company taxation, originally scheduled to kick in from April next year, has been suspended for a second year in a row.<br /></div><br /><div>In order to allow more over 65s to claim Working Tax Credits, the hours needed to work, in order to qualify for them, have been reduced.<br /></div><br /><div>Currently, any 18-24 year old, who has been out of work for more than 12 months is guaranteed work or training. From next month, this has been reduced to 6 months.<br /></div><br /><div>State pension is to increase by 2.5% in April next year.<br /></div><br /><div>At the other end of the spectrum, child benefits are to increase, by 1.5%, from the same date.<br /></div><br /><div>Interestingly, Mr Darling has given a global guarantee that anyone in work will always be better off than they were on benefits.<br /></div><br /><div>One piece of good news for the elderly is the announcement of discounts on new boilers, which will, hopefully, help those who struggle with the rapidly increasing energy prices.<br /></div><br /><div>Free school meals were announced for 500,000 children from low income families.<br /><br /><strong><em>The Lows<br /></em></strong><br />VAT will return to 17.5% from 1 January 2010. Not only will this reverse the, admittedly questionable, benefit of reducing the VAT level last year, but those businesses who spent the time and money changing price lists etc must now repeat the process, once again.<br /></div><br /><div>As with VAT, the stamp duty threshold reverts to its previous level of £125,000.<br /></div><br /><div>Anyone earning in excess of £20,000 will see an increase in tax, and a further 0.5% increase in National Insurance, for both the employer and the employee.<br /></div><br /><div>Missed by some, the 40% tax threshold has remained the same. This means that anyone getting a pay rise this year, who is already close to this level, will now fall under the 40% income tax rate for the first time.<br /></div><br /><div>Spending will be capped at £32bn (the same as last year) although there are expected to be further ‘efficiency savings’. In the long term though, spending is expected to slow down.<br /></div><br /><div>Pay rises for Government employees are to be capped at 1% from 2011 onwards.<br /></div><br /><div>Plans to increase the inheritance tax threshold, from £325,000 to £350,000 were postponed until 2011. It is estimated that over 100,000 additional homes will be caught by this, as a result.<br /><br /><strong><em>Conclusion</em></strong><br /><br />On the face of it, there are more highs than lows in this budget, but is it enough? The current economic climate demands immediate and dramatic action.<br /><br />Unfortunately, the Pre Budget Report has been prepared by a Chancellor who (a) has a history of excessive optimism, and (b) will not want to ‘rock the boat’ too much, in the face of an upcoming general election.<br /><br />Mr Darling has hinted at future tax hikes and cuts in spending, but ‘not yet’.<br /><br />There are one or two popular moves, such as the super tax on bankers’ bonuses as well as some of the new greener policies and help for the youth of the country, but, once again, we have to ask; “Is it enough?” The statement that; “anyone in work will always be better off than they were on benefits” is a bold and admirable one, but is it really achievable, and, more importantly, how will it help the expected £178bn deficit this year?<br /><br />Once again, it remains to be seen.</div><div><span style="color:#ffffff;">.</span></div><div></div><div></div><div>For those of you with no life, and loads of time on their hands, we have reproduced the full transcript of Mr Darling's Pre Budget Report Speech on our web site.</div><div></div><div>Check it out at <a href="http://www.1stadditions.biz/cdata/33039/docs/2213990_1.doc">http://www.1stadditions.biz/cdata/33039/docs/2213990_1.doc</a></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-20589260208243821142009-12-08T02:19:00.008+00:002010-01-03T12:37:20.554+00:00Working From Home. What Are The Implications?<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/SyBfW7lqxpI/AAAAAAAAASY/2EFeLUP9b6c/s1600-h/64985745_afe9843411_m.jpg"><img id="BLOGGER_PHOTO_ID_5413431599656781458" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 313px; CURSOR: hand; HEIGHT: 214px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/SyBfW7lqxpI/AAAAAAAAASY/2EFeLUP9b6c/s400/64985745_afe9843411_m.jpg" border="0" /></a>If you work at or from home, the part of the property used for work may be liable to business rates (also known as non-domestic rates) whilst the remainder of the property will continue to be liable to council tax (although an alteration may be made to its banding).<br /><div><div><br />To decide whether or not part of your property should be liable to business rates there are a number of things we have to consider, including the extent and frequency of the non-domestic (business) use of the room (or rooms) and any modifications made to the property to accommodate that use.<br /></div><div>Each case is considered on its own merits, and normally The Valuations Office Agency (VOA) will visit your property to check the facts before an assessment is made for non-domestic rates.<br /></div><br /><div><strong><em>Business rates</em></strong><br /></div><br /><div>If your property needs to be assessed for business rates, the VOA will work out a rateable value for the part that is used for non-domestic purposes. Rateable values are based in broad terms on the annual rent for a building or part of a building if it was available to let on the open market at a fixed valuation date. Currently this is 1 April 2003<br /></div><br /><div>It is important to note that rateable values are a key factor in the calculation of business rates but they are not the rates bill. An increase or decrease in rateable value does not automatically lead to a smaller or larger bill because the final calculation is based on a number of other factors. </div><br /><div>These include transitional relief and the multiplier, (rate in the pound) which is set by the Department for Communities and Local Government (for England) and the National Assembly for Wales. Local authorities are responsible for calculating actual rates bills and for collecting rates.<br /></div><br /><div>For more information, please contact your local Valuation Office - details are in the phone book - or visit www.voa.gov.uk and <a onclick="return ntptLinkTag( this );" href="http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858808&topicId=1074019801&r.l2=1073859221&r.s=tl">http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858808&topicId=1074019801&r.l2=1073859221&r.s=tl</a> - both official government websites<br /></div><br /><div>Below are some examples of assessments we might make where part of a property is used for both domestic and non-domestic purposes<br /></div><br /><div>1. A detached Edwardian dwelling in a residential area owned and occupied by a self-employed solicitor who practices from the property, specialising in matrimonial law. The front room on the ground floor is furnished with sofa and comfortable chairs, has a TV set, and ornaments/photos of a personal nature displayed around the room. It is used on an occasional basis as a waiting room for clients during weekdays, and as the lounge by the solicitor during evenings and weekends.<br /></div><br /><div>The former dining room is used as an office equipped with computer, dedicated fax and telephone line, filing cabinets, desk and shelving stocked with law books. No domestic use is made of this room. It is used by a part-time secretary when the solicitor is visiting clients or attending court.<br /></div><br /><div>The ground floor kitchen is used for preparation of family meals, but also to make tea or coffee for clients. The first floor accommodation of bedroom and bathroom is wholly used for domestic purposes.<br /></div><br /><div><em><strong>Conclusion</strong>: The office is the only non-domestic part and will be assessed for business rates. The main purpose of the front room is to serve as a lounge. In this instance, the non-domestic use is sufficiently minimal so as not to warrant assessment for business rates. The lounge and the remainder of the dwelling will be banded for council tax purposes</em>.<br /></div><br /><div>2. An integral garage of an estate house is converted to an office with plastered walls, electric power points, solidfront, suspended ceiling and floor screed suitable for carpeting. A separate telephone line has been installed. Access is through the hallway of the house. All toilet facilities are in the main house.<br /></div><div>The room is used by the family in the evenings and occasionally at weekends. During the day the occupier designs computer software. He is employed by a major company to work at home, because of a physical disability. All of the equipment has been provided by his company and is specially adapted for his needs. He visits his employer's office on an occasional basis for meetings with colleagues and customers.<br /></div><br /><div><em><strong>Conclusion</strong>: The former garage is no longer domestic property. It has been adapted for office use and should be assessed for business rates. The remainder is domestic.</em><br /></div><br /><div>3.The occupier is employed as a site finder by a major building company, and travels across most of the southern part of the country, using her home as a base, but calling into the company office once a week to pick up new instructions, for meetings, and to leave completed work.<br />She has a four drawer cabinet in the corner of a dining room, which also functions as an 'office' for the family computer, and there is no dedicated telephone line for business purposes.<br />The occupier is out visiting sites four days a week, and does 'writing up' at home on the dining room table in the evenings and at weekends. No clients or members of the public visit the house for business purposes.<br /></div><div><em><strong>Conclusion</strong>: Dwelling is domestic property, and should be banded for council tax.<br /></em></div><br /><div>4. A doctor uses a room in his house as a consulting room three days a week. The main practice surgery is situated some three miles away near the town centre. The house is more convenient for patients who live locally.<br /></div><br /><div>A concrete ramp has been added to the front door and the door opening to the hall and the consulting room has been widened to accommodate a wheelchair. No one in the doctor's family is disabled.<br /></div><br /><div>In the room itself there is an examination couch which is essentially a single bed with a cotton sheet thrown over it. A paper sheet is added and removed after use by each patient.<br /></div><br /><div>There is no office desk as such but there is a computer, table and chair in a corner of the room, which are used by the doctor during his consultations.<br /></div><div>No patients records are held at the house, nor are there any medicines. Basic medical equipment is kept in the doctors medical bag or stored in a drawer after use.<br /></div><div>There is planning consent for use as a branch surgery and part of the front garden has been surfaced to accommodate two to three extra private vehicles. There are parking restrictions in the street.<br /></div><br /><div>On the walls of the consulting room the doctor has attached pictures painted by his young children, and there are toys in the corner of the room, which belong to his children but can be played with by young patients. There is a brass sign outside the front door to advertise surgery hours.<br /></div><div>The remainder of the week the doctor attends surgeries at the main premises, and in the afternoons he makes house calls. Other than for consultations the room is often unused, but when friends come to stay it can be used as a spare bedroom. At weekends, and some evenings the doctor uses the room to read professional papers or watch a portable TV away from the children.<br /></div><br /><div><em><strong>Conclusion</strong>: The principal use of this room is as a doctor's surgery, and occasional use for domestic purposes is minor. The room should be separately assessed for business rates, and the remainder of the dwelling banded for council tax.<br /></em></div><br /><div>5. A teleworker formerly employed by a large national company in a call centre now works for the company five days a week at home, using a spare bedroom to house an office desk, telephone consul, computer terminal and chair all supplied by her employer. Her hours are flexible but generally the room is used for the purposes of work at least 40 hours each week. During evenings and weekends it is used by other members of the family for leisure purposes, and by the taxpayer for doing domestic chores such as ironing. No physical alterations have been made to the property other than installation of new telephone lines, and no members of the public or work colleagues visit the house for business purposes.</div><br /><div><em><strong>Conclusion</strong>: Rateability will not arise unless equipment of a non-domestic sort is installed or the property is physically adapted for the business use. This is because the character of the room remains as domestic living accommodation, and the purposes of living accommodation may include recreational and leisure use and work. Also the taxpayer uses furniture and equipment of the kinds that are commonly found in domestic property. </em></div><br /><div>OK, so why is this so important, and what are the tax implications of this legislation?</div><br /><div>Well, firstly, for most of us who work from home, we are able to claim an element of the household running costs, based on floor area, or, more simply, number of rooms. This will include a proportion of domestic council tax for the whole property. Where a room is deemed to be used exclusively for business purposes, and is, therefore, subject to business rates, those rates will be 100% allowable, for business purposes.</div><br /><div>On the down side, there could just be a Capital Gains Tax implication. Contrary to popular opinion, simply claiming part of your property as a business expense will not automatically mean that element of the property is subject to CGT, but you need to be aware of the criteria.</div><br /><div>You will still be eligible for Private Residence Relief, providing you keep using all of the house as a home. In other words, if the room or rooms used have dual purpose (office and spare room, for example) or have not been modified in any way, then full PRR will still be available. If, on the other hand, you have converted your garage to a joiner's workshop, including modifications to the power supply etc, this is likely to be subject to both business rates and, ultimately, Capital Gains Tax on the sale of the property.</div><br /><div>For this reason, it's always wise to plan your business usage claims properly, especially if there is a private usage of the room, or rooms, concerned.</div><br /><div></div><div>Remember, there may well be other things to consider, such as notifying your insurers, landlord or mortgage company, as well as being aware of any covenants that may affect the property, and, more specifically, running a business from it.</div></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com3tag:blogger.com,1999:blog-720046438854038909.post-56437904243208587172009-12-06T11:15:00.005+00:002009-12-06T11:33:17.551+00:00HMRC Offers Practical Help For People Affected By Flooding<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/SxuV0CYAMPI/AAAAAAAAASA/leaeIxDjF3E/s1600-h/280733966_df48c35aa4.jpg"><img id="BLOGGER_PHOTO_ID_5412084098439065842" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 296px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/SxuV0CYAMPI/AAAAAAAAASA/leaeIxDjF3E/s400/280733966_df48c35aa4.jpg" border="0" /></a>HM Revenue & Customs (HMRC) has a special Helpline for anyone affected by the recent floods, where, they say, fast, practical help and advice is available.<br /><div><br />You can contact the Helpline on 0845 3000 157 between 8am and 8pm Monday to Friday and 8am to 4pm Saturday and Sunday.<br /></div><br /><div>Financial Secretary to the Treasury, Stephen Timms MP said:<br /></div><br /><div>“We want people to be able to concentrate on recovering from the recent events. A quick call to the HMRC helpline will give peace of mind, enabling customers to focus on restoring their homes and businesses.”<br /></div><br /><div>Each call to the helpline will be handled on its own merits but HMRC may be able to help by:<br /></div><br /><div>agreeing a revised payment schedule when customers are unable to pay due to financial difficulties caused by the flooding<br /></div><br /><div>agreeing practical arrangements where individuals and businesses cannot comply with their tax obligations perhaps because their records have been lost or destroyed in the flooding<br /></div><br /><div>reviewing any penalties or not imposing additional surcharges that may be triggered where customers have missed deadlines as a result of the flooding<br /></div><br /><div>providing help and advice in dealing with other practical, tax related matters arising as a result of the flooding.<br /></div><br /><div>The service is available for all HMRC taxes, including VAT, Corporation Tax, Income Tax and NICs (PAYE) and for individuals affected by the flooding.</div><br /><div><br />Tax credit recipients are asked to continue to use the helpline number 0845 300 3900.<br /></div><br /><div>Businesses needing to discuss rescheduling payments as a result of the general economic situation rather than issues relating specifically to flooding should continue to contact the </div><br /><div>Business Payment Support Service on 0845 302 1435.<br /></div><br /><div><strong>Contacts<br /></strong><br />NDS Enquiries</div><br /><div>Phone: For enquiries please contact the above department</div><br /><div><a id="ctl00_body_ctl00_MediaContacts_pageOnlyContainerRpt_ctl01_hlEmail" href="mailto:ndsenquiries@coi.gsi.gov.uk">ndsenquiries@coi.gsi.gov.uk</a> </div><br /><div>Reproduced from NAT 83/09 </div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-43744244447077642912009-12-06T10:36:00.005+00:002009-12-06T11:10:08.292+00:00HMRC Advisory Fuel Rates Change Again<a href="http://3.bp.blogspot.com/_9wsB9zCIi6s/SxuQu1jCUyI/AAAAAAAAAR4/ugK2P_Ij6Rk/s1600-h/2717022223_783eab4f5f_m.jpg"><img id="BLOGGER_PHOTO_ID_5412078511538197282" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 276px; CURSOR: hand; HEIGHT: 193px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_9wsB9zCIi6s/SxuQu1jCUyI/AAAAAAAAAR4/ugK2P_Ij6Rk/s400/2717022223_783eab4f5f_m.jpg" border="0" /></a>On 3 January this year, we blogged on the new HMRC advisory fuel rates. These are the rates used to calculate the VAT element of any vehicles mileage rates claimed, such as those under the Fixed Profits Car Scheme. <div><br /><div>This original article can be revisited at; <a href="http://1staddition.blogspot.com/search?q=Mileage+rates">http://1staddition.blogspot.com/search?q=Mileage+rates</a> if you want to check out the specifics.</div><br /><div>As of 1 December 2009, these rates have, once again, changed. The revised rates are now available on the HMRC web site, at the following link; <a href="http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm">http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm</a></div></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-33526293931022269342009-10-19T13:32:00.006+01:002009-12-06T14:46:25.322+00:00New Minimum Holiday Entitlement<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/SuRMG9RY1VI/AAAAAAAAARo/0LnMhhAjcI0/s1600-h/2236067451_e55b06b3f8_m.jpg"><img id="BLOGGER_PHOTO_ID_5396521935907116370" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 317px; CURSOR: hand; HEIGHT: 218px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/SuRMG9RY1VI/AAAAAAAAARo/0LnMhhAjcI0/s400/2236067451_e55b06b3f8_m.jpg" border="0" /></a>October has been a busy month for changes in legislation. One of these is the increase in holiday entitlement from 24 to 28 days (5.6 weeks) including bank holidays.<br /><br /><div>The 28 day entitlement applies to those of us working a full 5 day week. This is applied pro rata to those on part time hours. (For example, 22.4 days, for anyone on a four day week).</div><br /><div>Other holiday pay basics are as follows:</div><ul><li>Holiday starts to accrue as soon as an employee begins work.</li><li>The employer can control when the holdiay is taken.</li><li>Employees are entitled to normal pay whilst on holiday.</li><li>When an employee leaves, they are entitled to be paid for holiday accrued but not taken.</li><li>Bank & public holidays can be included in the annual entitlement.</li><li>An employee continues to be entitled to their holiday leave throughout their ordinary and additional maternity leave, paternity leave and adoption leave.</li></ul>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-11598901273479465402009-10-18T23:04:00.008+01:002009-10-19T12:00:01.081+01:00New National Minimum Wage From 1 October 2009<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/StuU5ERYjPI/AAAAAAAAARY/UD0uP0fM3yk/s1600-h/3490675739_485a31849f_m.jpg"><img id="BLOGGER_PHOTO_ID_5394068686826409202" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 227px; CURSOR: hand; HEIGHT: 335px" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/StuU5ERYjPI/AAAAAAAAARY/UD0uP0fM3yk/s400/3490675739_485a31849f_m.jpg" border="0" /></a>The National Minimum Wage has increased, again, from the beginning of this month. <div><br /></div><div>New rates from that date are as follows;</div><ul><li>For workers aged 22 or over: £5.80 per hour</li><li>For workers aged 18 - 21, inclusive: £4.83 per hour</li><li>For workers aged under 18 (but above compulsory school age): £3.57 per hour</li></ul><p>Almost all workers are entitled to NMW, but there are some groups who are not.</p><ul><li>Self employed people</li><li>Apprentices under the age of 19</li><li>Apprentices aged 19 years or over, but only for the first year of their apprenticeship</li><li>Children who are still of compulsory school age.</li></ul><div>So, if you're an employee, you should now be paid at least these hourly rates. As an employer, you need to be aware of the rates, to ensure you are keeping up with your legislative responsibilities.</div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-51813147039535315602009-10-13T20:25:00.005+01:002009-10-13T21:04:11.770+01:00Companies Act 2006, Introduces Complete Set of New Companies House Forms<a href="http://1.bp.blogspot.com/_9wsB9zCIi6s/StTctMEKnFI/AAAAAAAAARI/Mo8eNc8VyEY/s1600-h/3343398484_83d1aabcc8_m.jpg"><img id="BLOGGER_PHOTO_ID_5392177322760248402" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 322px; CURSOR: hand; HEIGHT: 193px; TEXT-ALIGN: center" alt="" src="http://1.bp.blogspot.com/_9wsB9zCIi6s/StTctMEKnFI/AAAAAAAAARI/Mo8eNc8VyEY/s400/3343398484_83d1aabcc8_m.jpg" border="0" /></a>From 1 October 2009, the Companies Act 2006 has introduced a set of new forms for conducting day to day company business.<br /><div></div><br /><div>These new forms cover everything from Annual Returns to changes in directors, registered office, accounting reference date etc.</div><br /><div>Those of us familiar with the completion of a Form 363 (Annual Return) will now be doing so on a Form AR01. The original Form 288(a) (Appointment of Director / Secretary) has now been replaced by a Form AP01 (Director), AP02 (Appointment of Corporate Director), AP03 (Secretary) and AP04 (Corporate Secretary). (Good to see, another Government Department helping to simplify administration. Hmmmm).</div><br /><div></div><div>A full list of the new Companies Act 2006 forms is available on the following link (including details of the original 2005 Act forms they are replacing).:</div><br /><div></div><div><a href="http://www.companieshouse.gov.uk/forms/formsOnline.shtml#Company">www.companieshouse.gov.uk/forms/formsOnline.shtml#Company</a></div><br /><div></div><div>Full details of the new Companies Act implications can be found at:</div><br /><div></div><div><a href="http://www.companieshouse.gov.uk/companiesAct/companiesAct.shtml">www.companieshouse.gov.uk/companiesAct/companiesAct.shtml</a></div><br /><div></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-2769899062440086062009-10-06T12:02:00.006+01:002009-10-06T23:07:10.284+01:00VAT Changes For Online Payment & Filing<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/Ssu-4Pi2jFI/AAAAAAAAARA/1UTJl6j3Rjk/s1600-h/3075681924_1251541e71.jpg"><img id="BLOGGER_PHOTO_ID_5389611252533595218" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 288px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/Ssu-4Pi2jFI/AAAAAAAAARA/1UTJl6j3Rjk/s400/3075681924_1251541e71.jpg" border="0" /></a>In a bid to move ever closer to the phasing out of paper filing, HMRC have announced new Government proposals as follows:<br /><ul><li>From 1 April 2010, all VAT registered businesses with an annual turnover of £100,000 or more (excluding VAT) <strong>must</strong> file their tax returns online <strong>and</strong> pay electronically.<br /></li><li>From that same date, all businesses newly registering for VAT, whatever their turnover, <strong>must</strong> file their returns online <strong>and</strong> pay electronically.<br /></li></ul><p>Paper returns will still be an option for the remaining VAT registered businesses, but this will be reviewed More information can be found on the HMRC web site, at <a href="http://www.hmrc.gov.uk/vat/start/register/signup-online.htm">http://www.hmrc.gov.uk/vat/start/register/signup-online.htm</a><br /></p><p><strong><em>Changes To Banking Services And Making Payments To HMRC</em></strong><br /><br /></p><p>During 2009, H M Revenue & Customs are moving over to new banking arrangements.<br /></p><p><strong><em>The banking details are as follows:</em></strong><br /></p><p></p><br /><p><strong>Current Bank Account Details:</strong><br /></p><p>Account Name: HMRC VAT</p><p>Sort Code: 10 00 00</p><p>Account Number: 52055000</p><br /><p><strong>New Bank Account Details:</strong><br /></p><p>Account Name: HMRC VAT</p><p>Sort Code: 08 32 00</p><p>Account Number: 11963155</p><br /><p>If you use online banking, and have stored templates or transactions, that you use when making your current VAT payments, you may need to update these to reflect the changes.<br /></p><p>More information or guidance can be found at <a href="http://hmrc.gov.uk/payinghmrc/">http://hmrc.gov.uk/payinghmrc/</a></p>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-43354854557020869222009-09-27T11:42:00.007+01:002009-09-27T13:09:30.057+01:00HMRC Introduces Standard 'Benchmark' Scale Rates For Subsistence<a href="http://1.bp.blogspot.com/_9wsB9zCIi6s/Sr9U_uI1hiI/AAAAAAAAAQ4/YSr9tyT7X0o/s1600-h/Train+Meal.jpg"><img id="BLOGGER_PHOTO_ID_5386117133051987490" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 275px" alt="" src="http://1.bp.blogspot.com/_9wsB9zCIi6s/Sr9U_uI1hiI/AAAAAAAAAQ4/YSr9tyT7X0o/s400/Train+Meal.jpg" border="0" /></a> On 2 April 2009, HMRC issued Brief 24/09 covering the new scale rates for day subsistence. (Day rates only, overnight allowances are unaffected).<br /><div></div><br /><div>Their aim is to cover allowable travelling expenses, paid to employees, free of Tax & NI.</div><br /><div><strong><em>Introduction</em></strong></div><div><br />HM Revenue & Customs (HMRC) has introduced an advisory system of benchmark scale rates which employers can use to make subsistence payments to employees who incur allowable business travel expenses free of tax and National Insurance contributions (NICs). The new advisory system was implemented from 6 April 2009.<br /></div><div>The advisory system only covers benchmark scale rates for day subsistence payments. If an employer wishes to pay subsistence to employees who have to stay overnight they can either reimburse the actual cost incurred by the employee or agree a tailored scale rate to cover meals and other expenses in a dispensation with HMRC.</div><div><br />The brief sets out the framework for the system.<br /></div><div><strong><em>Overview</em></strong><br /></div><br /><div>Under the current rules an employer is required to notify HMRC of all expenses paid to an employee, even where those expenses would be allowable, unless they have a dispensation. A dispensation is an agreement between HMRC and an employer which allows the employer to pay an agreed rate for allowable expenses without the need to report the expenses to HMRC. An employer may apply for a dispensation by submitting a completed form P11DX. As part of this process, where business travel expenses are paid, the employer often agrees scale rates for travel and subsistence expenses with HMRC that broadly match the allowable expenditure incurred by its employees on business travel.</div><div><br />HMRC currently expects employers to conduct a sampling exercise before it will agree to a particular rate being included within a dispensation. The aim of the exercise is to identify a reasonable level of allowable expenditure that reflects the most common level of spending.<br />HMRC recognises that a sampling exercise can be burdensome and expensive for employers. It has therefore introduced an advisory system of benchmark scale rates for day subsistence payments that an employer can use without having to carry out a sampling exercise.<br /></div><div>As part of this new approach, in response to concerns from some employers and professional advisers about consistency between what is agreed for different employers, HMRC also proposes to standardise the different scale rates that it will agree with employers.<br /></div><br /><div><strong><em>Benchmark system/rules</em></strong><br /></div><br /><div>Under the benchmark system, HMRC has set advisory scale rates for particular day subsistence expenses that it will accept for all employers. As long as the employee has incurred subsistence expenses while travelling on an allowable business journey, employers will be able to make tax and NICs free subsistence payments up to the advisory rates without agreeing them with HMRC. Employers wishing to use the benchmark scale rates for subsistence payments will simply need to notify HMRC of their intention by ticking the appropriate statement/box on form P11DX before starting to use the system.</div><br /><div><strong><em>The rates that can be used will be:</em></strong><br /></div><br /><div>Breakfast rate (irregular early starters only) - A rate of up to £5.00 may be paid where a worker leaves home earlier than usual and before 6.00 am and incurs a cost on breakfast taken away from his home. If the employee regularly leaves home before 6.00 am because, for example, he works an early shift he would not be entitled to use the breakfast benchmark scale rate.<br /></div><br /><div><em>One meal rate</em> (Five hour rate) - A rate of up to £5.00 may be paid where the worker has been away from his home/normal place of work for a period of at least five hours and has incurred a cost on a meal.<br /></div><br /><div><em>Two meal rate</em> (Ten hour rate) - A rate of up to £10.00 may be paid where the worker has been away from his home/normal place of work for a period of at least ten hours and has incurred a cost on a meal or meals.<br /></div><br /><div><em>Late evening meal rate</em> (irregular late finishers only) - A rate of up to £15.00 may be paid where the employee has to work later than usual, finishes work after 8.00 pm having worked his normal day and has to buy a meal which he would usually have at home.<br />If the employee is paid an allowance under the five or ten hour rule, the late meal allowance could still be paid if he finishes work after 8.00 pm and buys a meal that he would usually have at home. However, if the employee regularly finishes work late because, for example, he normally works the afternoon or evening shift, he would not be entitled to use the late evening meal rate.<br /></div><br /><div><strong><em>Particular issues and exemptions<br /></em></strong></div><br /><div><strong><em>Payments in excess of the benchmark rates</em></strong></div><br /><div>The benchmark rates are the maximum tax and NICs free amounts that could be paid by employers who choose to use this system. An employer could pay less than this rate if it wants to do so. If a higher amount is paid without agreeing a tailored scale rate with HMRC, the excess should be subject to tax and NICs.<br /></div><br /><div><strong><em>Qualifying conditions<br /></em></strong></div><br /><div>Benchmark scale rates must only be used where all the qualifying conditions are met.</div><br /><div><em>The qualifying conditions are:</em></div><br /><div>• the travel must be in the performance of an employee’s duties or to a temporary place of work</div><br /><div>• the employee should be absent from his normal place of work or home for a continuous period in excess of five hours or ten hours</div><br /><div>• the employee should have incurred a cost on a meal (food and drink) after starting the journey<br />Early starter and late finisher ratesThe early starter and late finisher rates are for use in exceptional circumstances only and not intended for employees with regular early or late work patterns.<br /></div><br /><div>Tax and NICs free scale rate payments must be limited to three meal rates in one day (or 24 hour period). A meal is defined as a combination of food and drink.<br /></div><br /><div>Where employees are required to start early or finish late on a regular basis, the over five hours or over ten hours rates could be paid provided all the other qualifying rules are satisfied.<br /></div><br /><div><strong><em>Working Rule Agreements<br /></em></strong></div><br /><div>Benchmark scale rates would not apply to employees covered by Working Rule Agreements, for which separate specific rates are already set for particular occupations.<br /></div><br /><div><strong><em>Friends and Family Allowance</em></strong><br /></div><br /><div>Some existing dispensations also include a tax free scale rate for staying with family and friends when employees are required to stay overnight on business. HMRC has reviewed this policy and concluded that there is no legal basis for giving tax relief because it is not linked to any specific underlying expense. Therefore, a scale rate for staying with family and friends will not be included within the advisory system or given in any new dispensations. All agreed tax and NICs free scale rates in existing dispensations covering such an allowance will be withdrawn when the dispensation comes up for review.<br /></div><br /><div><strong><em>Questions and answers</em></strong><br /></div><br /><div><strong>What you have to do if you want to pay scale rates to your employees?</strong><br /></div><br /><div>You should apply to HMRC for a dispensation. You need to complete a form P11DX, which is the form used by employers to apply for a dispensation, and submit it to HMRC. On the form you need to indicate with a tick against the appropriate statement under 'Travel and Subsistence' that you intend using HMRC’s benchmark scale rates to reimburse your employees’ subsistence payments. By ticking this box you would be merely notifying HMRC that you intend paying HMRC’s benchmark scale rates for day subsistence and that you have adequate management processes in place to ensure that payments are only made where all the qualifying conditions are met. If you want to apply to include other items of allowable expenditure in a dispensation for example fees and subscriptions, laundry, telephone charges, etc, you need to tick the appropriate boxes and supply the requested information on the form.<br /></div><br /><div><strong><em>When can you pay a scale rate?<br /></em></strong></div><br /><div>Scale rate payments may be made to employees who necessarily travel in the performance of their duties or have to travel to a temporary place of work. The statutory rules are in Section 336 to 342 of Income Tax (Earnings and Pensions) Act 2003. Where the employer agrees a scale rate in a dispensation, the scale rate may also be taken into account for NIC purposes.<br />Guidance on how the employment income travel expense rules work can be found in HMRC’s Booklet 490. This booklet will be updated shortly to reflect the new scale rates system available to employers from April 2009.<br /></div><br /><div><strong><em>When must you not pay tax and NICs free scale rates?<br /></em></strong></div><br /><div>Tax and NICs free scale rates must not be paid where the employee is not travelling on a qualifying business journey. For example, when on a journey that involves ordinary commuting (or similar to ordinary commuting), or private travel.<br />Additionally, no tax and NICs free payment should be made if an employee does not incur an expense on meals after leaving home or his normal place of work, even if the journey was a qualifying business journey. This means that employees who do not buy a meal or who take a packed lunch from home are not entitled to a tax and NICs free payment.<br /></div><br /><div><strong><em>Do employers have to use the benchmark scale rates?<br /></em></strong></div><br /><div>Employers do not have to use the benchmark rates. They can reimburse their employees’ actual expenditure or apply to HMRC to agree a scale rate appropriate for their business needs in a dispensation. However, where an employer wants to use a higher scale rate, it will have to undertake a sampling exercise to show the higher rates are in line with what its employees’ typically spend on subsistence and agree the rate with HMRC.<br /></div><br /><div><strong><em>What records would an employer need to keep?</em></strong><br /></div><br /><div>An employer will need to keep sufficient records to be able to demonstrate that the employee was entitled to the payment. An employer also needs to be able to demonstrate that routine checks are undertaken to ensure that the travel expenses rules are being followed.<br /></div><br /><div><strong><em>What happens to existing dispensations?</em></strong><br /></div><br /><div>Existing dispensations will remain in force until they come up for review in accordance with HMRC’s rolling review programme, usually on a five year cycle. When the existing dispensation comes up for review the employer can choose to switch to benchmark scale rates or apply to continue to use a tailored rate. Where a new dispensation is requested the employer will have to go through the process of undertaking a statistically valid sampling exercise.<br /></div><br /><div><strong>Uprating benchmark scale rates</strong><br /></div><br /><div>HMRC will review the rates annually and consider revising them when there has been a change in the scale rate of plus or minus 10 per cent based on the Consumer Price Index from when it was last revised.<br /></div><br /><div><strong><em>How has HMRC arrived at the benchmark scale rates in question?</em></strong><br /></div><br /><div>HMRC reviewed the scale rates agreed for a number of employers, both large and small, and based the rates on the most commonly agreed rates.<br />Why not have higher benchmark rates for London or other locations where prices are more expensive?The benchmark rates are linked to what employers typically reimburse their employees and it would not be possible to break this down between different locations. Personal expenditure on subsistence varies significantly between employees even when working at the same location.<br /></div><br /><div>If an employer typically reimburses more than the benchmark rates then it will remain open to them to agree a higher rate with HMRC or to reimburse actual expenditure. </div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-68031015801346294432009-09-10T19:59:00.007+01:002009-10-13T20:24:13.610+01:00Companies Act 2006 Kicks In From 1 October 2009<a href="http://3.bp.blogspot.com/_9wsB9zCIi6s/Sqlp3q1J9UI/AAAAAAAAAPo/TjrjZVfgK1g/s1600-h/Graphic1.jpg"><img id="BLOGGER_PHOTO_ID_5379947634981729602" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 268px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_9wsB9zCIi6s/Sqlp3q1J9UI/AAAAAAAAAPo/TjrjZVfgK1g/s400/Graphic1.jpg" border="0" /></a>The Companies Act 2006 has made a number of changes, many of which will affect us, as small businesses, and some of which have already been actioned.<br /><div></div><br /><div><strong><em>Where Are We Now?</em></strong></div><br /><div>The following changes have already taken place. (Some are optional, others are not).</div><br /><div><strong><em>You Must:</em></strong><br /></div><ul><li>be <strong>aged 16</strong> or over to be appointed a director.</li></ul><p><strong><em>You Do Not Need To:</em></strong><br /></p><ul><li>appoint a <strong>company secretary</strong>, if you are a private company (though you can still do so, if you wish).</li><li>hold an annual general meeting, if you are a private company, again, unless you opt to do so.</li><li>have a unanimous vote for resolutions. Subject to articles, if you are a private company. Members may agree in writing to resolutions.</li><li>get a court order to make capital reductions as a private company - they can be supported by a solvency statement instead.</li></ul><p><strong><em>What We Can Look Forward To:</em></strong><br /></p><ul><li>Directors address protected from disclosure. From 1 October, each director will have a service address, and a usual residential address. The former will be in the public domain, with the latter only being available to public authorities and credit reference agencies. Initially, the director's residential address will automatically become the service address, though you will be able to specify an alternative address (such as the company's registered office) on the Companies House website.</li><li>Also, there will be an alternative address for the company to specify where its registers can be made available for public inspection. This can either be the registered office, or a single alternative inspection location (SAIL).</li><li>A number of changes have been made to make it easier to set up a limited company..</li><li>There will be changes to company articles for new companies. They will include the company's objects and liabilities - which were previously in the memorandum. Copies of model articles are available on the Companies House website.</li><li>Any ammendments to the company's articles must be notified to Companies House, within 15 days. Failure to do so is a criminal offence, carrying a civil penalty of £200.</li></ul><p>Also remember; all Companies House accounts filing deadlines have been reduced, by one month to 9 months (private companies) and 6 months (public companies). This applies to all accounting periods beginning on, or after, 6 April 2008.</p><p>Failure to comply will result in a fine of up to £1,500.</p><p>From 1 October 2009, all original Companies House forms are being replaced. Watch this space for a future blog post on this particular change.</p><p>In the interim, you can check out the new provisions of the Act on the following link, including transitional provisions, and downloadable versions of the new forms.:</p><p><a href="http://www.companieshouse.gov.uk/companiesAct/companiesAct.shtml">http://www.companieshouse.gov.uk/companiesAct/companiesAct.shtml</a></p><p>Companies House has produced guidance notes, in a variety of formats, giving step by step instructions on how to form a limited company.</p>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-47447329175244078182009-08-31T18:54:00.004+01:002009-08-31T19:11:15.060+01:00Blackberry Users 'Work An Extra 15 Hours A Week'<a href="http://3.bp.blogspot.com/_9wsB9zCIi6s/SpwSEQ9TSqI/AAAAAAAAAPg/Uq-m0CPtwEY/s1600-h/2975225014_a24b27e004.jpg"><img id="BLOGGER_PHOTO_ID_5376191919654390434" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 297px; TEXT-ALIGN: center" alt="" src="http://3.bp.blogspot.com/_9wsB9zCIi6s/SpwSEQ9TSqI/AAAAAAAAAPg/Uq-m0CPtwEY/s400/2975225014_a24b27e004.jpg" border="0" /></a>New research finds that staff with mobile technology such as Blackberries work an extra 15 hours a week as they constantly check emails even out of the office.<br /><div><br />A survey of over 600 employees revealed many were turning into workaholics because of the ability to receive and send messages and work online even when they were at home.<br />Employment law firm Peninsula said the working week was being extended to around 55 hours for many people and urged employers to make sure their staff were not breaching working time regulations. </div><div><br />Managing director Peter Bone said: "It is important for staff to spend quality time away from the office, spending time with the family, or undertaking recreational activities rather than tapping away responding to client emails or deadlines so that they keep a healthy work/life balance. </div><div><br />"Bosses should encourage staff not to work from home unless necessary. Inform staff that they should limit working from home. If they are happy to work away then ensure they agree to opt out of the maximum working week and have this signed. Limit the extent to which employees are using their devices when they choose to do so; unrested employees will be less productive during the working day." </div><div><br />"The recession has forced everyone to become more productive and for those with access to work at home, this is an opportunity for them to catch up or get ahead. With email on tap, employees with smartphones are able to respond a lot quicker and also get themselves prepared for the working day ahead by checking their email first thing.<br /><br />"Employees should be encouraged to take appropriate rest breaks if they do choose to continue working out of hours. Having a well rested employee with a good work/life balance is a lot more useful than a tired employee that put one too many hours in the night before." </div><br /><div><em>Source: Business Matters Magazine</em><br /></div><div><a href="http://www.bmmagazine.co.uk/"><em>www.bmmagazine.co.uk</em></a></div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-58856970821700516432009-08-11T19:16:00.002+01:002009-08-11T19:21:42.985+01:00Home Business Uncovered<a href="http://2.bp.blogspot.com/_9wsB9zCIi6s/SoG2f9JneFI/AAAAAAAAAPY/wZjS_ZOZLeE/s1600-h/BUSINESS+ROAD+TRIP+8.JPG"><img id="BLOGGER_PHOTO_ID_5368772890909440082" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 279px; TEXT-ALIGN: center" alt="" src="http://2.bp.blogspot.com/_9wsB9zCIi6s/SoG2f9JneFI/AAAAAAAAAPY/wZjS_ZOZLeE/s400/BUSINESS+ROAD+TRIP+8.JPG" border="0" /></a><br /><div>Home business website, Enterprise Nation, is going on a national road trip to produce a documentary on the rise of home business in the UK.<br /><br />Starting in Scotland on Monday 14th September, a crew of three will travel south to interview home business owners and talk to experts and politicians, with the team expecting to meet over 400 businesses at events and meet-ups over the course of the week.<br /><br />More than 2 million businesses are run full time from home but the documentary will also take a closer look at what Enterprise Nation has termed the ‘Working 5 to 9’ trend that is seeing millions of people hold down a day job and build a business at nights and weekends. It’s a way of easing out of insecure employment, into self-employment.<br /><br />Founder of Enterprise Nation, Emma Jones, says:<br />‘Streets are buzzing with people starting and growing their own business. Amazing businesses that utilise the best of technology to make and sell niche products and services. We’ll be revealing the stories of people turning business dreams into reality and showing that home business is truly the bright spot of the UK economy. Yet we don’t think enough is being done to allow home business to flourish – and it remains almost a hidden sector - so we’ll be calling for action from policy makers and politicians and recording their response.”<br /><br />The Enterprise Nation team will visit home business hotspots in Scotland, North East, London, South West and return home to the West Midlands on Friday 18th September. They will film by day and at night host get-togethers for anyone starting and growing a business from home. They will also show how to work whilst on the move in a trip that’s sponsored by communications company, Orange.<br /><br />The documentary will be aired on Friday 20th November – a date that marks the UK’s first ever Home Enterprise Day, held as part of Global Entrepreneurship Week. The first people to see footage will be delegates at the Enterprise Nation Conference.<br /><br />As Jones says:<br />“Visitors to the conference may not be surprised by what they see as they are living and breathing home business owners but for those in Government and large organisations this documentary will uncover the incredible entrepreneurial activity underway. It will also call on them to act. Home business is Britain’s best-kept secret and its story needs to be told!”<br /><br />Over 60% of new businesses were launched from home in 2008. The attraction is lower costs, no commute and being on hand for friends and family. Sectors range from fashion design and food production through to IT and business services with whole families coming together to make these businesses a success and growing profits through outsourcing and sub-contracting.<br /><br /><br />Media notes<br /><br />Full details of the roadtrip and registration for meet-ups is online at <a title="blocked::http://www.enterprisenation.com/ http://www.enterprisenation.com/" href="http://www.enterprisenation.com/">http://www.enterprisenation.com/</a><br /><br />Updates are being posted to Twitter at <a title="blocked::http://www.twitter.com/e_nation http://www.twitter.com/e_nation" href="http://www.twitter.com/e_nation">www.twitter.com/e_nation</a><br /><br />The Home Business Roadtrip starts in Scotland on Monday 14th September and travels south. Dates and locations are:<br /><br />Monday 14th September – Scotland<br />Tuesday 15th September – North East<br />Wednesday 16th September – London<br />Thursday 17th September – South West<br />Friday 18th September – West Midlands<br /><br />The trip is being sponsored by Orange, supported by One North East, Business Link for London and Enterprise HQ, with accommodation generously provided by Malmaison Hotels<br /><br />The crew will be:<br /><br />Emma Jones, Founder, Enterprise Nation<br />Tim Sargent, Mint Video<br />Nick Clark, 1st Class Travel<br /><br />The documentary will be aired at the Enterprise Nation Conference on Home Enterprise Day, Friday 20th November. Home Enterprise Day is part of Global Entrepreneurship Week <a title="blocked::http://www.gew.org.uk/ http://www.gew.org.uk/" href="http://www.gew.org.uk/">http://www.gew.org.uk/</a><br /><br />For media enquiries, please contact:<br /><br />Marisa Harrison, Tadpole PR<br /><a title="blocked::mailto:Marisa@tadpolepr.co.uk mailto:Marisa@tadpolepr.co.uk" href="mailto:Marisa@tadpolepr.co.uk">Marisa@tadpolepr.co.uk</a><br />Tel: 01743 741161 Fax: 01743 741161 Mobile: 07767608563<br /><br />Emma Jones<br /><a title="blocked::mailto:emma@enterprisenation.com mailto:emma@enterprisenation.com" href="mailto:emma@enterprisenation.com">emma@enterprisenation.com</a><br />0789 9871698 </div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com2tag:blogger.com,1999:blog-720046438854038909.post-82622869609231602592009-07-07T20:35:00.012+01:002009-07-11T10:52:32.827+01:00Last Chance To Be Ex Directory On Your Mobile Phone<a href="http://1.bp.blogspot.com/_9wsB9zCIi6s/SlXaGKABvhI/AAAAAAAAAPQ/ZZEpjmryoSU/s1600-h/273414619_8975886913.jpg"><img id="BLOGGER_PHOTO_ID_5356427131125612050" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 400px; CURSOR: hand; HEIGHT: 300px; TEXT-ALIGN: center" alt="" src="http://1.bp.blogspot.com/_9wsB9zCIi6s/SlXaGKABvhI/AAAAAAAAAPQ/ZZEpjmryoSU/s400/273414619_8975886913.jpg" border="0" /></a>As many of you may have heard, there is a new mobile phone directory being introduced shortly, called; '118 800'.<br /><br />Many will welcome this, but others are concerned that their mobile number will now be available to anyone looking to use it, which could mean being swamped by unsolicited messages and calls.<br /><br />It is extremely easy to unsubscribe, but it must be done before the begining of next week, to make sure that you are ex directory.<br /><br />Removal has been recommended by the BBC;<br /><a href="http://news.bbc.co.uk/1/hi/programmes/working_lunch/8091621.stm">http://news.bbc.co.uk/1/hi/programmes/working_lunch/8091621.stm</a> and you may wish to pass this on to friends, family and colleagues.<br /><br />To remove your number from the directory, click on the link below. You will need your mobile number with you, as they will text you a code.<br /><br /><a href="http://www.118800.co.uk/">http://www.118800.co.uk/</a><br /><br />Click on; 'Ex Directory' on the top right hand side, and follow the straight forward instructions.<br /><br />**Update** Looks like people are registering in droves. Shortly after posting this, the 118800 site posted a 'Service Suspended' notice, as follows:<br /><br />"The 118 800 service for mobile phone connections is currently unavailable - from this website and by phone - whilst we undertake major developments to our 'Beta Service' to improve the experience for our customers. We'll be back as soon as possible with the new improved service.<br /><br />All ex-directory requests made by people in our directory to date are being processed. There will be no need to resend these requests. And we will take further ex-directory requests when the service resumes. We will not be taking ex-directory requests by phone or text whilst the service is not operational.<br /><br />Please do not call us on 118 800 for anything other than landline directory enquiry requests as you will be charged for the call.<br /><br />Sorry for any inconvenience caused"<br /><br />Coincidence? I doubt it. What's the odds the service will be restored 5 minutes before deadline, thereby preventing many people from registering as ex directory? Let's hope they prove me wrong, but I wont hold my breath.Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com4tag:blogger.com,1999:blog-720046438854038909.post-22467852966060973672009-07-07T20:35:00.007+01:002009-07-07T22:27:09.180+01:00Tax Credits Renewal Pack Due At The End of This Month<a href="http://1.bp.blogspot.com/_9wsB9zCIi6s/SlO9PC33VkI/AAAAAAAAAPI/AQpBOWo8XBo/s1600-h/2325527126_ba799c7282_m.jpg"><img id="BLOGGER_PHOTO_ID_5355832448040523330" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 256px; CURSOR: hand; HEIGHT: 208px; TEXT-ALIGN: center" alt="" src="http://1.bp.blogspot.com/_9wsB9zCIi6s/SlO9PC33VkI/AAAAAAAAAPI/AQpBOWo8XBo/s400/2325527126_ba799c7282_m.jpg" border="0" /></a>Your tax credits are awarded for a tax year. You are required to renew your claim after the end of each year so that your payments will continue. HMRC need to check whether they have paid you the right money during the year and whether they will carry on paying you the same amount of money going forward.<br /><div><br /><strong><em>The Tax Credits Cycle</em></strong><br /></div><br /><div>When you first make a claim for tax credits, any payments you get are based on your income from the last tax year, and your current personal circumstances. A tax year runs from 6 April one year to 5 April the next. So if you're making a claim because you've just had a baby, HMRC will take this into account along with your income for the year that ended on 5 April 2009.<br />The tax credit payments you get throughout the year are temporary or 'provisional' until you confirm your actual income and circumstances as part of the renewals process.<br />It is important that you tell HMRC about any changes to your circumstances straight away as it could affect the amount of money you should be getting. For example, you must tell them within one month if you split up from your partner, or if you start working fewer hours. Otherwise you might not get all the money you should - or you may end up getting too much and may have to pay it back.<br />When you tell them about a change, they will send you an award notice confirming the new information provided by you, and any changes to your payments. It is important that you check each award notice you get carefully using the checklist that came with it, and let them know if anything is incomplete, missing or wrong within one month.<br />After the end of each year they ask you to renew - or in some cases they will automatically renew your claim. This helps them to check that the payments we've made to you are correct, and to set your payments for the coming year.<br />Sometimes they will have paid you too much (an overpayment) or not enough (an underpayment). If this happens, they will either make an adjustment to your payments, or if you have been paid too much but you're no longer getting tax credits, they will ask you to make a direct payment - a one off payment for the full amount.<br /></div><br /><div><strong><em>Why Is It Important To Renew?<br /></em></strong></div><br /><div>It's important to renew so that you can:</div><div><br />· check that we have the right information<br />· make sure your income is still within the limits for getting tax credits<br />· tell HMRC if anything has changed<br />· continue to get all the money you're entitled to<br /></div><br /><div>If you don't renew your tax credits, you may only receive payments for a limited period after the end of the tax year and you'll have to repay any overpayment from the previous year as well as any money paid to you since 6 April.<br /></div><br /><div><strong><em>How To Renew<br /></em></strong></div><br /><div>HMRC will send you a renewal pack between April and June which you must respond to. You don't have to complete any paperwork if you don't want to, you can renew by phone.<br />The renewal pack includes an Annual Review notice which tells you what to do to renew your tax credits. Most people will also get an Annual Declaration form in their pack as well.<br />It's important you read the Annual Review notice carefully - it will tell you how to renew your tax credits.<br /></div><br /><div>You must:<br /></div><br /><div>· check the information provided on your Annual Review notice<br />· tell HMRC if anything has changed<br /></div><br /><div>You may also be asked to give details of your income in the last tax year on the Annual Declaration form.<br /></div><br /><div>You can return the information by either:<br />· calling the Tax Credit Helpline on 0845 300 3900<br />· completing the Annual Declaration form - if you were sent one, and returning it in the envelope provided.</div><div><br />If you've only got an Annual Review notice, you don't need to do anything if:<br /></div><br /><div>· nothing has changed in your personal situation<br />· your income is still in the limits shown in the notice<br />· there are no mistakes or missing details in the notice<br /></div><br /><div>Your tax credits will be automatically renewed.<br /></div><br /><div><strong><em>Who Will Receive A Renewal Pack?</em></strong><br /></div><br /><div>You will receive a renewal pack even if you claimed tax credits but didn't get them because your income is too high (a nil award), and even if you only got tax credits for part of the year.<br />If you have made more than one tax credits claim during the year, you will be sent a separate renewal pack for each claim. You must fill in each one separately.</div><div><br /><strong><em>What Happens If You Don't Renew?<br /></em></strong></div><br /><div>If you don't renew, your payments will stop and you will have to pay back any overpayment from the previous year as well as any money paid to you since 6 April.<br />The deadline for all replies is shown on your Annual Review form - usually 31 July. Don't wait for the deadline. The sooner you check your details and tell HMRC of any changes, the sooner they can make sure you get the money you're entitled to.<br /></div><br /><div><strong><em>Why You Need To Tell HMRC About Changes<br /></em></strong></div><br /><div>You should tell them about changes in your personal circumstances straight away. You could lose money if you don't as tax credits can only be backdated by up to three months. For example if you have a baby on 12 June, but do not tell us until 12 October, we will only backdate your payments until 12 July.<br /></div><br /><div><strong><em>Contact the Tax Credit Office<br /></em></strong></div><br /><div>If you need more help you can call the Tax Credit Helpline, which is open from 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day, and New Year's Day. The numbers you can ring are:</div><div><br />· telephone 0845 300 3900<br />· textphone 0845 300 3909 - if you are deaf or have a hearing or speech impairment.</div><div><br />If you’re calling from overseas you can also contact the Tax Credit Office on Tel + 44 289 053 8192. </div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com1tag:blogger.com,1999:blog-720046438854038909.post-43550269938499002732009-07-05T17:05:00.003+01:002009-07-05T17:40:29.137+01:00P11D Deadline is Upon Us Again<a href="http://4.bp.blogspot.com/_9wsB9zCIi6s/SlDXURLMMeI/AAAAAAAAAPA/E0RLrRIigmg/s1600-h/103725116_2917dbace9_m.jpg"><img id="BLOGGER_PHOTO_ID_5355016700151214562" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 264px; CURSOR: hand; HEIGHT: 170px; TEXT-ALIGN: center" alt="" src="http://4.bp.blogspot.com/_9wsB9zCIi6s/SlDXURLMMeI/AAAAAAAAAPA/E0RLrRIigmg/s400/103725116_2917dbace9_m.jpg" border="0" /></a>Don't forget, tomorrow, 6 July is the deadline date for submission of 2009 Forms P11D and P11D(b) for all companies who pay qualifying benefits in kind to their directors and higher paid employees (including, of course, MPs. Wouldn't we all like to see one or two of those?)<br /><div></div><br /><div>Left it to the last minute? Don't worry, you can pop on and do it online to speed things up.</div><br /><div></div><div>It's also worth bearing in mind that the Class 1A National Insurance arising on any benefits in kind is due by the 19th of this month, when you pay your normal monthly PAYE / NI bill for June.</div><br /><div>As usual, fines can run to £100 a month, per 50 employees, so, if you still haven't done so, get yourselves straight to it, and get those forms in.</div>Alan Younghttp://www.blogger.com/profile/05712585651639712076noreply@blogger.com0