Get Ready for New Compliance Checks Regime

Businesses need to get ready for the new aligned compliance checks framework that comes into effect next month, HM Revenue & Customs (HMRC) warned today.

With new information and inspection powers, record keeping requirements, time limits for tax assessments and claims and the accompanying safeguards, businesses need to make sure that they know what this will mean for them.

From 1 April 2009, HMRC will have one set of powers and safeguards covering PAYE, VAT, Income Tax, Capital Gains Tax, Corporation Tax and the Construction Industry Scheme. There will also be safeguards in place to ensure that the powers are used appropriately.

HMRC’s Dave Hartnett said:

“This new approach to compliance checks will improve HMRC’s ability to ensure that the right tax is paid at the right time. We have consulted with taxpayers and their agents to make very sure that HMRC achieves the right balance between obtaining the information we need and appropriate use of our powers.”

To ensure you remain compliant, why contact us to see how Davenports can help, simply complete the quick form below and one of our team will get back in touch shortly.

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Nick Archibold – Director – London

Davenports have been extremely proactive towards helping me with our accounts & tax returns. I will be switching other business towards them within the next few weeks.

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£1Billion Cashflow Boost to Business

Over 60,000 businesses have agreed time to pay tax arrangements with HM Revenue & Customs (HMRC) totalling more than one billion pounds.

The Business Payment Support Service (BPSS) announced by the Chancellor in November’s Pre-Budget Report provides a fast track service that offers support to businesses needing more time to pay their tax bills. These businesses can quickly agree terms they can afford with HMRC over the phone.

The Right Honourable Stephen Timms, Financial Secretary to the Treasury said:

“I’m delighted that HMRC’s Business Payment Support Service is proving such a huge success, already providing a cashflow boost worth over a billion pounds to UK businesses.

“This service is delivering the kind of tangible support that business needs at this time. I would urge any business anticipating or experiencing difficulties paying their tax to call the helpline and get a quick response tailored to their specific needs.”

Darling Confirms 2009 Budget Date

Alistair Darling has told the House of Commons he will present his Budget statement after the Easter recess.

The 2009 Budget will be held on 22 April the Chanceller announced.

HM Revenue and Customs Interest Rate Reduction

HM Revenue & Customs (HMRC) announce a cut in the interest rates charged on late payments and paid on overpayments.

The reduced rates cover quarterly instalment payments and early payments of corporation tax not due by instalments. The new rates take effect from 19 January 2009.

Reduced rates covering late payments and overpayments of all other direct taxes, indirect taxes and national insurance contributions take effect from 27 January 2009.

Legislation effective from January 2009 now enables HMRC to act following Bank of England interest rate announcements much more quickly.

HMRC continues to look at ways to simplify and harmonise the rules for interest charged and paid across all taxes and duties. In June 2008 a consultation document was published ‘Interest – working towards a harmonised regime’. This was followed in November 2008 by a further consultation document. Both documents are available to view on the HMRC website.

Details of HM Revenue and Customs Interest Rates can be found here.

Corporation Tax Small Companies’ Rate

The Chancellor, Alistair Darling today annouced in his Pre-Budget Report that the planned increase of the small companies’ rate (SCR) of corporation tax from 21 per cent to 22 per cent from 1 April 2009 has been deferred until 1 April 2010.

The current rules at section 13 of the Income and Corporation Tax Act 1988 (ICTA) provide that, where a company is not a close investment-holding company and its CT profits (other than ring fence profits) are lower than the lower relevant maximum amount (LRMA) (currently £300,000), those profits are taxed at the lower rate of CT, known as the ‘small companies’ rate’(currently 21 per cent). Legislation will be introduced in Finance Bill 2009 to maintain the SCR at 21 per cent for the non-ring fence profits. The SCR for ring fence profits will remain at 19 per cent for the financial year 2009-10.

Section 13(2) of ICTA entitles companies with a profit of between £300,000 and £1.5 million to marginal relief (‘marginal small companies’ relief’) from tax computed at the main rate. The fraction used in calculating this relief will remain at 1/40 for non-ring fence profits and 11/400 for ring fence profits.

The upper and lower limits for small companies’ rate are set at section 13(3) of ICTA. These will remain unchanged.

For further information on Corporation Tax or the Small Companies Rate, contact us to see how Davenports can help

Accountancy Request

1. Your Name(required)
2. Post Code
3. Contact Number(required)
4. Email(valid email required)
5. I Need...
6. Help!
   A Change of Accountant
   Assistance starting up
   Help with the Payroll
   Help with Tax, CIS or VAT
   Help with getting money from my clients
7. Any other comments
8. To receive your FREE key fob, tick this box
9. Verification

 

HMRC Business Payment Support Service

From 24 November 2008, HM Revenue & Customs (HMRC) have introduced a new, dedicated Business Payment Support Service designed to meet the needs of businesses affected by the current economic conditions.

If you’re worried about being able to meet tax, National Insurance or other payments owed to HMRC, or you anticipate that payments coming due will cause you problems, you can contact them to discuss payment options to help you deal with temporary cashflow difficulties.

The information below will help you decide whether you need to contact HMRC now. If you do need to phone them you can call our Business Payment Support Line which is open seven days a week.

Their staff will review your circumstances and discuss temporary options tailored to your business needs, such as arranging for you to make payments over a longer period. They will not charge additional late payment surcharges on payments included in the arrangement, although interest will continue to be payable on those taxes where it applies.

Getting in touch with the Business Payment Support Service

If you have payments due soon, please contact them - the sooner you do so, the sooner we’ll be able to see how they can help. In most cases HMRC should be able to give you a decision in about 10 minutes. For larger payment debts and those that are more complicated they may need to have a longer, more detailed discussion with you and may need to call you back before finalising payment arrangements.

If your payment is not due yet, you can ring the Business Payment Support Line nearer the time and as soon as you are clear about whether you will be able to pay or not. But remember that you need to contact HMRC in advance. Don’t wait until your payment is overdue.

HMRC Business Payment Support Line
Tel 0845 302 1435       

Open Monday – Friday 8.00am to 8.00 pm, Saturday and Sunday 8.00 am – 4.00 pm.

Please note: The Support Line is intended for new enquiries only.

Davenports Registered Office Service

The new registered office service, allows new and existing incorporated businesses to use Davenports’ address as the business’ Registered Office.

Davenports can filter out the ever increase amount of junk mail received and give the business two ways of receiving the remainder of their post.

Firstly Davenports can forward the legimate post, based on predefined criteria supplied by the client, to the business.

Alternatively Davenports can open and scan the remaining post and either send by email, or provide a area to download the post from. If the latter is chosen then an email is sent to the client advising them that some new post has arrived.

For more information on this service, complete our form on our Registered Office page, or for more information on Davenports other company services, why not contact us.

First Double Taxation Convention with Libya

Double Taxation Conventions aim to eliminate the double taxation of income or gains arising in one country and paid to residents of the other country. They do this by dividing the taxing rights that each country has under its domestic law over the same income and gains. They provide additional protection for taxpayers by specific measures combating discrimination in tax treatment. More generally, Conventions benefit individuals and businesses by ensuring certainty of treatment and, as far as possible, by reducing compliance burdens. Double Taxation Conventions also serve an Exchequer protection role by including provisions to combat avoidance and evasion – not least by measures providing for the exchange of information between revenue authorities.

The first ever Double Taxation Convention between the UK and the Great Socialist People’s Libyan Arab Jamahiriya was signed on 17 November in London by the Foreign Office Minister of State, Bill Rammell and the Libyan Secretary for European Affairs, Abdulatti al-Obidi.

Welcoming the Convention, Mr. Rammell commented: “This Double Taxation Convention will bring benefits to British business in Libya and Libyan investors in the UK – benefits in terms of certainty, clarity and transparency and reducing tax compliance burdens.”

The treaty largely follows the OECD Model Double Taxation Convention. Important features include, with one exception, the complete elimination of source-country withholding taxes on dividends, interest and royalty payments.

The text of the new Convention is available on HM Revenue & Customs’ website, at http://www.hmrc.gov.uk/international/signed.htm#http://www.hmrc.gov.uk/international/signed.htm and will be presented to Parliament for approval, when it will be published by the Stationery Office.

The Convention will enter into force once both countries have completed their legislative procedures. In the United Kingdom the provisions of the Convention will take effect from 1 April (for corporation tax purposes), and from 6 April (for income tax and capital gains tax purposes) in the calendar year following the date of entry into force. In Libya, the provisions will take effect from 1 January in the calendar year following the date of entry into force.

Pre-Budget Report 2008 Accounced

The Chancellor has announced that he will deliver his Pre-Budget Report (PBR) to Parliament on Monday 24 November at 3.30pm.

Full details of all of his announcements which will affect taxes will be published on this site after he finishes his speech.

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