Chartered Accountant
Understatement of Tax Liabilities - Penalty Regime from April 2009
A common and more sophisticated approach to penalties across taxes. As usual with new rules there will be a settling down period and in due course a better understanding on how theses rules will be applied. HMRC provide examples and detail on their public facing web site.
By reviewing internal control and check procedures and external relationships with advisers now exposure to penalty scenarios can be mitigated.
On-line Filing - VAT from January 2010
New on-line filing requirements for VAT come into play in January 2010. Full details are available on HMRC web site.
Only smaller businesses escape these new rules this time but all businesses will be brought into the net within a year or two.
Smaller Charities facing Independent Examination for the first time - Accounts beginning on or after 1st April 2008
Smaller charitable companies operating as companies limited by guarantee can no longer rely on the old "accountant's report" under the companies act and now need to appoint independent examiners.
New Place of Supply Rules for VAT - From 1st January 2010
The place of supply of services from business to business in the EU is redefined as where the customer belongs. New obligations for EC Sales Lists also affecting supplies of goods.
Option to Tax (VAT on property) - revocation of option after 20 years.
Customs brief 52/09 corrects information provided in their Information Sheet 14/09 on procedures and circumstances where permission from Customs is not required to opt out.
Telephone 01284 720077
Mobile 07847 004490
email enquiries@barrynudds.co.uk
Time Limits for Tax Claims Reducing
2003/04 no longer available for SA cases
From 1st April 2010 no ability to claim for 2004/05
From 6th April 2010 no ability to claim for 2005/06
Slightly more time available to non self assessment cases.
National Minimum Wage Rates from 1st October 2009
£5.80 for workers over 22
£4.83 for workers aged 18 - 21
£3.57 for workers under 18
Services are provided across the region and in particular in and around:
Brandon, Bury St Edmunds, Cambridge, Ipswich, Mildenhall, Newmarket, Norwich, Stowmarket, Sudbury and Thetford
Need to know more or have a query? Use the form below to ask.
Extra 6 days recommended for VAT payments by cheque 1st April 2010
By virtue of new rules HMRC will treat VAT payments by cheque as having been received when the cheque has been cleared as opposed to when received and the recommendation is that 3 days be allowed for the cheque to reach them and a further 3 days be allowed for the cheque to clear. Where HMRC receive cheques before 31st March for VAT due to be paid on 31st March for February returns but the cheque does not clear until April a surcharge may be incurred.
The additional seven days allowed for those paying electronically continues.
4 Year Cap from 1st April 2010
The 3 year cap becomes 4 years from 1st April. This means that errors up to 4 years old can be corrected by the registered trader as well as by HMRC.
It also means that up to 4 years records will be required to be available for VAT Inspections
Budget 2010 A Brief Summary(Not including latest budget - to be updated shortly)
A very political speech perhaps as expected and no new major tax hits for 2010/11!
It seems to be common ground that there will be a further budget this year whatever the result of the May election.
Main points to note:
VAT – Standard Rate stays at 17.5%. Silent on the issue of the date that all businesses will need to file on-line.
Income Tax – No movement in tax rates, bands and allowances as compared to 2009/10 save for the 50% band over £150k announced last year.
Corporation Tax – Increase of lower rate by 1% to 22% deferred for a year.
CGT – No increase in the rate of Capital Gains Tax and apart from a welcome increase in the level of Entrepreneurs Relief from £1m to £2m no other new changes and the rate stays the same. The taxation of capital gains is currently very advantageous as compared to income and there will be planning opportunities.
Capital Allowances – Retention of and substantial increase in the Annual Investment Allowance. The retention of the allowance is welcome for small businesses who have to replace work vehicles and equipment but there needs to be a lot of confidence to justify smaller businesses making use of the extra £50,000. The current position is similar to that experienced during the period when we had 100% First Year Allowance for a period to stimulate business investment and for many small businesses their tax bills will go up and down from year to year, further complicated by the payment on account system, simply because they will not usually invest significant monies every year.
Inheritance Tax – Exempt limit retained at same level as 2009/10 for the next four years.
Budget 2010
Scroll down for other current topics
Paying By Cheque?
Option To Tax
VAT 0n-Line Filing
Time Limits!
Independent Examination
4 Year Cap (VAT)
New Penalties!!!
Place of Supply
Minimum Wage
New Penalties - PAYE
Cuts to come!
VAT Partial Exemption
Calculation Options
HMRC introduced some changes to the partial exemption standard method effective from April 2009 and have followed it up with some further options on performing calculations effective as from April 2010.
HMRC generally justify these types of changes by results of consultations and compliance cost savings for business.
Are these changes helpful and do they encourage best practice or perhaps discourage best practice: What do you think?
See article on partial exemption calculations