Businesses Given More Time to Pay Business Rates
March 31, 2009 by Scott
Filed under Accountancy News
Businesses will be able spread payment of this year’s inflation up-rating to Business Rates over three years, under new legislation announced by the Government today.
Under existing legislation business rates are adjusted every April in line with the Retail Prices Index for the previous September. The new measures are designed to smooth the effects of the spike in inflation of 5 percent in September, which would have seen businesses facing an impact on their cash flow this year.
The majority of independent economists expect RPI inflation - which has now fallen to 0 percent - to turn negative at the end of 2009. The impact of up-rating if RPI is negative would be to reduce total business rates in cash terms in 2010-11. However the Government recognises that many businesses also need help now to ease cash flow.
Business ratepayers will be able to defer around £600m across 1.6 million properties, boosting their cash flow for the current year. This will include measures to allow those affected by the end of the 2005 transitional relief scheme also to spread payment of the increase in their bills over a three year period.
Today’s announcement builds on other measures to help businesses meet the challenges of the current economic climate, such as HM Revenue and Customs’ time to pay arrangements, which have already benefited over 100,000 businesses by giving them extra time to pay NICs, VAT and corporation tax bills.
The Chancellor of the Exchequer said:
“The Government recognises that businesses need help now to ease their cash flow at a time when money is very tight. This measure will help businesses to smooth their rates payments over the next three years.”
Secretary of State for Communities and Local Government Hazel Blears said:
“It’s vital that we support businesses as they navigate their way through this tough financial climate. The steps we are taking today will provide them with real help now, by giving them the flexibility to defer part of this year’s increase in business rates, and manage the financial pressures that they are facing.”
Bumper April Package to Help Businesses
March 30, 2009 by Scott
Filed under Accountancy News
A bumper package of measures to increase consistency and streamline how business, agents and other customers work with HM Revenue & Customs (HMRC) will be introduced in April.
From 1 April 2009:
- HMRC will have one set of powers and safeguards covering PAYE, VAT, Income Tax, Capital Gains Tax and Corporation Tax. This means there will be less confusion for customers because the same rules will be applied, no matter which tax position we are checking.
- a new two-tier system of tax tribunals comes into effect - a ‘first-tier tribunal’ and an ‘upper tribunal’. General Commissioners, Special Commissioners and the VAT & Duties Tribunal will no longer exist.
- changes to simplify the entry and leaving rules for small businesses using the VAT flat rate scheme will take effect.
From 6 April 2009:
- employers with 50 or more employers will have to file their employee starter and leaver notifications and similar pensions notifications online.
- a new A4 version of the P45 form will replace the old style A5 form.
- changes to form P46 (Car), used for reporting the private use of cars supplied by employers, will be implemented.
Dave Hartnett, HMRC Permanent Secretary for Tax, said:
“These are important measures which will make it easier for businesses and their advisers to meet their obligations whilst making it easier to work with us and to get decisions on points of law. These initiatives will provide businesses with more consistency, certainty and faster on-line processing of key documents”.
Summertime Begins
March 27, 2009 by Scott
Filed under Accountancy News
Summer time will start on Sunday 29 March at 1.00am GMT throughout European Union Member States. The Clocks go forward an hour. This means that at 1.00am (GMT) the UK will move to 2.00am British Summer Time (BST).
The 9th EC Directive on summer time harmonised, for an indefinite period, the dates on which summer time begins and ends across member states as the last Sundays in March and October respectively. Under the Directive, summer time begins and ends at 1.00am GMT in each Member State. Amendments to the Summer Time Act to implement the Directive came into force on 11 March 2002.
Time zones are the responsibility of individual Member States and vary across the EU. The UK is not planning to move to Central European Time.
Flexible Working Rights Go To Extra 4.5 Million
March 26, 2009 by Scott
Filed under Accountancy News
More than 10 million people will have the right to request flexible working from April 6th and government support is helping businesses get ready for the change.
Six million parents and carers already have the right to request flexible working from their employers, with another 4.5 million now gaining the right with its extension to parents of children aged 16 and under.
Employment Relations Minister Pat McFadden said:
“This is about balancing work and family life. Both workers and employers have felt the benefits of flexible working since we first introduced the right to request.
“Fewer mothers change jobs when they return to work meaning greater continuity for businesses and more employees have been able to work hours which help them cope with parental responsibilities.
“Firms can still say no if they have legitimate business concerns, but more than 95% of all requests for flexible working from working parents and carers are now accepted, as employers recognise the benefits more and more.
“Parenting doesn’t end as children get older. Extending the right to request will help more parents get the flexibility they need. The business benefits of flexible working are well documented and this remains the case in tougher economic times.”
All carers and parents of children aged up to six, or children with disabilities aged up to 18, already have the right to request flexible working.
An independent review by Imelda Walsh last year recommended that the right to request should be extended to parents of children aged up to 16.
Flexible working embraces a wide variety of working practices, including compressed hours, working from home, or any pattern of hours other than the standard one in an organisation.
Benefits of flexible working to business include increased productivity and recruitment savings.
Please contact us for further advice on this issue, by using the simple form below.
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VAT Recovery - Business Entertainment of Overseas Customers
March 24, 2009 by Scott
Filed under Accountancy News
HM Revenue & Customs (HMRC) are currently reviewing the input tax treatment of business entertainment provided to overseas clients in the light of a recent European Court of Justice (ECJ) judgment in the joined case of Danfoss and AstraZeneca (Case-371/07).
The case concerned a Danish law provision, which excluded certain types of expenditure from the right to deduct VAT, and whether it was still effective, since although, it had been introduced before the Sixth Directive came into force, it had not been applied in practice.
Businesses may wish to consider the relevant time limits applying to potential claims and to submit claims, together with supporting evidence, in order to protect their position, pending HMRC’s statement of their position. Businesses should note that, in any event, any claim would be confined to entertainment which is of a kind and on a scale that is reasonable. Any claims submitted should, as a minimum, include:
- Details of the overseas clients (NB overseas suppliers are not covered).
- The type of expenditure (eg meal, drinks, sporting event etc).
- The amount of VAT claimed.
- Evidence to support the fact that the VAT had not previously been deducted.
HMRC do not consider that this decision has any implications for the input tax block on expenditure on entertaining UK business clients. Nor does it have any impact on input tax that can be claimed on expenditure on meals and other entertainment provided to employees - business can continue to claim this input tax subject to the normal rules.
If you require any assistance with VAT, please contact us by completing the simple form below, to see how Davenports can help you.
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Print & Design Starter Pack
March 23, 2009 by Davenports
Filed under Featured, Featured Print & Design, Special Offers
Get your company recognised with a Print & Design starter pack from Davenports.
Like every business, Davenports was once a startup. And we realise that, for new companies, a huge marketing budget is generally out of the question.
That’s why Davenports have put together this very special pack to help get your business’ identity and marketing activities on their feet.
This high-value pack includes:
- Expert logo design
- 250 business cards
- 250 letterheads
- 250 compliment slips
We’re delighted to offer the entire pack for just £300 (+VAT) - that’s a saving of 20% compared to our regular price.
This offer is available until 30/09/2009. UK-based businesses only.
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HMRC Change Bank Details
March 16, 2009 by Scott
Filed under Accountancy News
HM Revenue & Customs have annouced that new bank details will be in place for the 2009-10 tax year, with regards to PAYE and National Insurance payments.
The new bank details for payments due 21st May 2009 are:
| Sort Code | Account Number | |
| Accounts Office Shipley | 08-32-10 | 12001020 |
| Accounts Office Cumbernauld | 08-32-10 | 12001039 |
For assistance with any PAYE or National Insurance matter please contact us using the simple form below
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HMRC Welcomes Important First Steps by Liechtenstein on Path to Tax Transparency
March 13, 2009 by Scott
Filed under Accountancy News
Today’s announcement by the Liechtenstein Government of its intention to sign up to the Organisation for Economic Co-operation & Development (OECD) standards of transparency and exchange of information is the culmination of many years of internationally co-ordinated work on the part of the UK tax authorities working in partnership with colleagues in the OECD and recent collaboration between HM Revenue & Customs (HMRC), the UK embassy in Berne and the Liechtenstein Government.
The Right Honourable Stephen Timms MP, Financial Secretary to the Treasury said:
“Today’s welcome announcement is further evidence that tax secrecy is fast becoming entirely unacceptable. We now need to see Liechtenstein move quickly to take the concrete steps which need to follow. In the next few weeks we will be accelerating the internationally co-ordinated drive for improved openness and transparency.”
Dave Hartnett, HMRC Permanent Secretary for Tax said:
“Whilst today’s commitment is to be welcomed, we need to see a quick application of the OECD standards on transparency, including to previous years.
Today’s recognition of the need for transparency does not mean we can draw a line under many earlier years of secrecy.”
“HMRC looks forward to taking these matters forward with the Government and banks of Liechtenstein in the near future.”
Please for further advice on this issue, by using the simple form below.contact us
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London Agencies Lacking Model Behaviour
March 12, 2009 by Scott
Filed under Accountancy News
The Government has put modelling and entertainment agencies in London under the spotlight. Nine agencies have been issued with warnings for failing to comply with the law.
This follows an investigation by the Government’s Employment Agency Standards Inspectorate. Of the nine offending agencies, inspectors found 37 separate infringements of the law.
Many of these offences were relatively minor, but the worst practices identified included:
- charging illegal fees
- sub-standard accounting practices
Employment Relations Minister Pat McFadden said:
“There are some agencies willing to exploit models and entertainers who think they’ve got the X-Factor but don’t know their rights. This behaviour is unacceptable and agencies that flout the law should get their final curtain call.”
“The Government has doubled the number of Employment Agency Standards inspectors so that they can get out on the ground and target the rule-breakers.”
The Employment Agency Standards team acted in London following reports of improper activity in agencies supplying staff in the modelling and entertainment sectors. Follow up investigations will take place to make sure that the agencies concerned have acted to change their ways. Agencies that continue to disobey the law could be prosecuted, hit hard with fines or even banned from operating for up to 10 years.
The Government will shortly publish a consultation, which will seek views on any further steps that might be needed to protect models and entertainers.
These inspections come hot on the heels of a successful prosecution of an agent in the West Midlands, who withheld £3,500 from entertainers including comedian Tom O’Connor.
People can report employment agencies they suspect of breaking the law by contacting the Employment Agency Standards inspectorate on 0845 955 5105 or emailing eas@berr.gsi.gov.uk.
If you require assistance why not contact Davenports by simply completing the form below and one of our team will get back in touch with you shortly.
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Government Signs Up Jersey in Tax Agreement
March 11, 2009 by Scott
Filed under Accountancy News
Jersey is to join other Crown Dependencies and Overseas Territories as a signatory to a Tax Information Exchange Agreement (TIEA) with the UK. TIEAs play a vital role in HM Revenue & Customs (HMRC) drive against offshore avoidance and evasion.
The Financial Secretary to the Treasury, the Rt. Hon Stephen Timms MP said:
“Exchange of information and transparency between countries and territories is vital in combating tax avoidance and evasion. Jersey’s decision to embrace this principle is very welcome and a crucial step in the right direction.
“More countries and territories must now follow Jersey’s example. In coming weeks we will be working with G20 partners to boost global co-operation to address tax evasion. I urge those who have not yet met international standards to think again and start work on the necessary reforms immediately”.
HMRC Permanent Secretary for Tax, Dave Hartnett said:
“The importance of this TIEA with Jersey should not be under-estimated. It will enable us to obtain the information we need to ensure that the days when putting assets off shore provided an unfair tax advantage are well and truly over.”
The text of the agreement will be accessible on the HMRC website by following the link below: http://www.hmrc.gov.uk/international/jersey-eol.pdf and will in due course be laid as Schedules to a draft Order in Council for consideration by the House of Commons. It will then also be available from the Stationery Office.
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