| Enews - July 2006 | ||||||||||||||||||||||||||
Introduction With the World Cup and Wimbledon a distant memory, we report on the good news that Lord Carter has revised his recommendations on the bringing forward of the personal tax self assessment deadline. We also include our usual round up of news. Please browse through this month’s articles using the links below and contact us if any issues or questions arise.
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| Tax return deadline Lord Carter has revised his recommendations on bringing forward the personal tax return submission deadline. After consultation with the professional bodies, the proposed deadlines from 2008 will be 31 October for paper returns and will remain at 31 January for returns filed online. Lord Carter’s original proposals were 30 September for paper returns and 30 November for returns filed online so the change in deadlines represents a significant revision of the proposals.
Advisory fuel rates for company cars HMRC have announced new rates for journeys on or after 1 July 2006. These rates apply to company car drivers who are reimbursed for business miles driven. The rates can also be used by company car drivers who claim all their fuel costs and then reimburse their employer for their private mileage.
Employers can increase the rates paid to the above amounts without having to agree them with HMRC. There has been no increase to the 40p a mile rate which applies to the first 10,000 business miles driven by an employee in their own car. The employee car rate drops to 25p per mile after 10,000 miles.
Personal tax payments on accounts due The second payment on account (POA) of income tax and Class 4 National Insurance liabilities for 2006/07 is due on 31 July. These payments generally need to be made by individuals within the self assessment system whose liabilities are not covered by tax deduction at source. The system of tax deduction at source includes tax deductions through PAYE, for current or previous year’s liabilities, or tax deductions by banks and building societies. The POA is based on the taxpayer’s liability for the previous tax year but can, in some cases, be reduced if the taxpayer’s circumstances have changed and their liability for 2006/07 is likely to be significantly lower than it was in 2005/06. If you believe you may be able to reduce your POA do get in touch. If you need to make a POA you should have received a statement from HMRC advising you of what you need to pay. Unfortunately due to an HMRC computer problem you may have received two statements, the second of which was issued to clarify the breakdown of any under or overpayments brought forward. The payslip should show the correct amount that is payable. Just pay it once! If you have not already made your payment you need to do so by 31 July to avoid interest being automatically added to your liability.
£250 tax free payments for online filing HMRC have advised employers with less than 50 employees who filed their end of year returns online for the year ended 5 April 2006 that they can deduct the £250 tax free compensation payment they are due from their next payment of PAYE. These tax free compensation payments are due to employers with less than 50 employees who successfully filed their 2005/06 end of year forms P35 and P14 online. Last year employers were advised to wait for HMRC confirmation that the £250 was due. Confirmation will be sent in the next few months to all employers who successfully filed online. These confirmation notices will all be sent via the internet. For those employers who need the compensation repaying to them, for example, where they do not have a PAYE liability for the year, then they will need to wait for the online confirmation that the payment is due before being able to get it repaid by HMRC.
Age discrimination and retirement HMRC have published some guidance on age discrimination. HMRC’s 10 key points about age legislation and retirement are reproduced below. At the bottom of the article is the link to Employers’ Bulletin 23. The key points are:
Sunday trading laws to remain unchanged The DTI have reviewed the current regulations on Sunday opening hours and have decided to leave them unchanged. The current rules, which have been in place for over 10 years, prevent large stores from opening for more than six hours on a Sunday. There are no restrictions on the opening hours for smaller shops. We had previously reported that small business groups had opposed the proposal to change the law. They appear to have been successful.
Warning to big banks A survey by the Daily Telegraph has revealed that small businesses are looking to change their bank because they are no longer willing to put up with poor service and that they were shopping around for better deals. The results are part of the paper's survey ‘Banks: You Decide’ campaign. The majority of readers responding to the survey told the Telegraph that they still feel let down by poor customer service levels, particularly as many have loyally used their bank for years.
HMRC interventions HMRC have been considering various ideas which might reduce time spent on enquiries and have announced that trials started in July. Currently, HMRC have no power to carry out the majority of these trials without raising an enquiry, so these ‘interventions’ potentially extend HMRC’s powers substantially. It is understood that accountants will be sent copies of any letters sent to taxpayers that they act for, including letters giving advance notice of telephone contact. If you would like to read more about the types of ‘interventions’ which HMRC are proposing to trial click the link below. If you are invited to take part in an HMRC trial, cooperation is entirely voluntary. If you do receive a letter or phone call from HMRC please get in touch with us as soon as possible.
Is your CCTV good enough? The Home Office has warned that analogue CCTV pictures are no longer good enough for the police to use in prosecutions. High quality digital images are now needed and retailers are being advised to update their systems accordingly. If you use CCTV to protect your business or premises, you might wish to read the guidance below.
Low Pay Commission to consider small businesses The Low Pay Commission (LPC) has been advised to consider the impact of any increase in the national minimum wage on small businesses, which is a change to the current remit of their considerations. The government has told the LPC that it must look carefully at the impact the decision will have and to make ‘particular reference to the effect on pay, employment and competitiveness in the low paying sectors and small firms’. The current limit of £5.05 an hour, for workers over the age of 22, will rise to £5.35 in October.
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