Broadband Tax ‘To Be Made Law’

Story by Jane Wakefield, Technology reporter, BBC News

A controversial broadband tax should be law before the next election, according to Minister for Digital Britain Stephen Timms.

The 50 pence a month tax applies to everyone with a fixed line telephone.

Speaking at a debate in London, Mr Timms said the tax will be presented to parliament as part of the Finance Bill.

But the Tory MP John Whittingdale said the tax, which could raise up to £175m a year to fund high speed networks, would be opposed by the Conservatives.

“I’m confident the Conservative party will oppose it. I object to it on the basis that it is another tax and is aimed at people who are using old technology,” said Mr Whittingdale, who is also chair of the DCMS (Department for Culture, Media and Sport) select committee.

Speaking at a debate organised by The BCS Chartered Institute for IT (formerly the British Computer Society), Mr Timms reiterated the government’s commitment to the levy and the other recommendations of Lord Carter’s Digital Britain report.

“We want to make high speed networks nationally available. The next-generation fund will help that and we will legislate for it this side of a general election,” he said.

No derailment

He told BBC News that the other recommendations of the Digital Britain report would “be built on” in the Digital Economy Bill, which will be presented to parliament in November.

There have been concerns in recent months that the Digital Britain report, which was unveiled in June, has been derailed.

Business Secretary, Lord Mandelson, has intervened to beef up the government policy on illegal file-sharing, which could include removing persistent offenders from the net.

Mr Timms denied the report had been sidelined.

“Nothing has been derailed. It is full steam ahead,” he told BBC News.

HM Revenue & Customs re-organisation of Corporation Tax work

This is a message for Corporation Tax customers in Bristol, Devon, Oxon and Bucks, Cornwall, Somerset, W Lancs and Worcester.

HM Revenue & Customs are currently re-organising the way we handle Corporation Tax work in our local offices.

During September the Corporation Tax records of companies and organisations currently dealt with by their offices in Bristol, Exeter, Milton Keynes, Plymouth, Taunton, Warrington and Worcester (that is those companies with reference numbers prefixed by 036, 071, 402, 474, 705,750 and 792) will transfer to:

HM Revenue & Customs Local Compliance
Corporation Tax Operations
Government Buildings
Castle Street
Merthyr Tydfil
CF47 8AA

Tel: 01685 353848 – please do not use this number for any other enquiries

You will shortly receive a note on form CT 210 confirming these details.

You may receive notification of this change even if your company or organisation is dormant. This is because HM Revenue & Customs want you to know which office to contact should your circumstances change.

Students Getting Educated About Tax

Full time students pay income tax just like everybody else but research from HM Revenue & Customs (HMRC) reveals that more than half of the UK’s 2.3 million university students don’t realise this.

The good news is many of those who have paid tax will be entitled to get it back if they have earned less than £6,475 during this year.

Students who think they may have paid too much tax can use the student tax calculator on HMRC’s website (http://www.hmrc.gov.uk/calcs/stc.htm) to find out if they are due a cash refund and HMRC plans to launch a tax fact Facebook application complete with a refund calculator.

Three out of every four students take paid work, and if they have worked over the summer vacation or intend to get part-time work during term-time HMRC wants to help them to get the facts about tax right so that they don’t pay more tax than absolutely necessary on their hard-earned cash.

HMRC’s research also shows that there is no such thing as a typical student job – summer posts range from retail and hospitality to counting the number of passengers on trains or setting up bouncy castles for a city council.

Jane Frost, Director of HMRC Individuals Customer Directorate said:

“The start of the academic year is a good time to get educated about tax.

Making sure your tax code is right from the start of your paid employment can save you money and is good training for life after graduation. We want to help students understand how the tax system works ideally so they pay the right amount of tax from the outset and can claim what is due.”

Key questions for Students

As well as being aware of their Personal Allowance, students should also find out:

What do I do with forms such as the P45, P60 and P38(S)?

Students who plan to work only during the holiday periods, and expect to earn no more than the Personal Allowance (currently £6,475) in the tax year can ask their employer for a P38(S) which they should complete and return to their employer at the start of their job. A P45 is given out at the end of a job and shows the pay received and tax deducted between the start of the tax year (6 April) and the date the employment ceased (if before 5 April the following year). The P60 summarises the yearly earnings and tax paid for a particular job. Students with more than one job at the 5 April each year will receive a P60 from each employer. The P45 and P60 forms should be kept in a safe place for future reference.

What does my tax code mean?

Your tax code shows how much you are allowed to earn before paying any tax. This helps employers to work out how much tax to deduct from your pay.

What if I have more than one job?

Like everyone else, students only have one Personal Allowance for each tax year and if they start a new job without finishing their first job, their second employer will ask them to fill out and sign a form P46. The employer uses the information on the P46 to notify HMRC that a new employee has started and to ensure the correct code is operated on earnings from the second job.

What are National Insurance contributions (NICs)?

NICs pay for social security benefits that you may receive later in your life and to help pay for the National Health Service. National Insurance contributions are recorded against a person’s name using a National Insurance Number. NICs are deducted at source from pay by employers and cannot be claimed back. They are only paid once your income exceeds £110 a week. You’ll need to keep a record of your National Insurance Number for any dealings with your tax office and your employer(s).

Who do I need to tell when I change address?

HMRC needs to be kept informed of your address. This is the individual’s responsibility – don’t assume your college or university will do it - and ensures you won’t miss any important letters or forms – or rebates!

Students can find all the information they need at: www.direct.gov.uk/studenttaxadvice.