The VAT Rise to 20% Will Be Permanent

The VAT rise to 20% will be permanent, according to chancellor George Osborne.

Speaking to the Spectator, Osborne said that was a “structural change” to the tax system to help deal with the deficit.

The 50p tax rate on income above £150,000 was a temporary measure, he confirmed.

Osborne also suggested that lower taxation could become a policy after stability was brought to public finances.

“Once we can bring some stability to the public finances, we can look at reducing the tax burden on people.”

From AccountancyAge

Student Festive Helpers Could Get Tax Free Income Gift

Students who work as Santa’s helpers, ice rink supervisors and shop gift wrappers are being reminded today that they may not have to pay tax on the income they receive over the festive season.

With universities, colleges and schools set to break up for the Christmas holidays over the coming weeks, many students will be starting holiday jobs. HM Revenue & Customs (HMRC) is therefore reminding them that, as long as their total earnings for the tax year are less than the personal allowance of £6,475, they will not have to pay any tax.

But to ensure that employers do not take tax off their earnings before it goes into their bank accounts or pockets, students have to fill in a form, P38(S).This can be found at: www.hmrc.gov.uk/forms/p38s.pdf.

Those who fail to fill in the form and who do pay tax can claim it back afterwards, by submitting a form P50. The P50 can be downloaded at www.hmrc.gov.uk/pdfs/p50.pdf.

Anyone who worked over the summer and earned less than £6,475, but paid tax on those earnings, should also apply for a refund as they could receive a Christmas present of £340 from the tax office.

Farmers Can Use Red Diesel Now to Help Out During This Extreme Weather Snap

HM Revenue & Customs (HMRC) confirmed today that during extreme weather farmers can use red diesel in their tractors to help grit and clear snow from public roads.

Under normal rules any vehicle that is specifically constructed or adapted for dealing with frost, ice and snow – such as a snow plough – can work on public roads while using red diesel.

HMRC recognises the vital role played by farmers in helping to keep rural roads clear. So during this period of extreme weather HMRC will adopt a pragmatic approach to the rules. This means tractors on public roads clearing snow or gritting to provide access to schools, hospitals, a remote dwelling, or communities cut off by ice and snow are entitled to use red diesel.

More details can be obtained by calling the Excise and Customs Helpline on 0845 010 9000.

Agriculture Minister Jim Paice has Made the Following Statement to Parliament

“The Rural Payments Agency (RPA) will today begin payments under the 2010 Single Payment Scheme (SPS). Over the next few days payments totalling over £1 billion are expected to be made to some 80,000 claimants. This represents over 75% of eligible claimants.

Further progress towards the Agency’s 2010 SPS payment targets - to pay 85% of eligible SPS claimants by the end of December 2010 and to pay 95% of the value of SPS payments by the end of March 2011 – is being closely monitored by the RPA Oversight Board which I chair. Against the background of the additional workload created by the update last year to Rural Land Register and reduced staff numbers, it is clear that meeting those targets represents a significant challenge.

Farmers may be assured that outstanding payments will be made as individual claims are verified. But that will not mean cutting corners: I am determined to bring a renewed focus on accuracy to the administration of the scheme so that legacy issues are addressed once and for all and the Agency is then able to deliver a better quality of service to farmers in the medium term. Equally, we need to ensure taxpayers interests are safeguarded by ensuring our actions represent good value for money and further discussions will take place with the National Audit Office to that end.

As we progress through the payment window, I will keep the House informed on the Agency’s progress towards its targets and any related decisions by the RPA Oversight Board. At an individual level, the RPA are writing to farmers where it appears unlikely that payment will be made during the course of December. “