Chartered Accountants of Poynton, Cheshire |
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Employee leaving?When one of your employees leaves, you need to give them a form P45 and send a copy to HMRC. You can file P45s online, and this will be compulsory for small employers by April 2011. Employers with 50 or more employees must file online by April 2009. The form is straightforward to fill in but even simple errors could mean your form is rejected. These errors include incorrect or missing National Insurance numbers, pay details or tax codes. Company VansThere has been a big change to the taxable benefit due on vans. Where an employer provides a van for an employee, which they can use for private journeys, the taxable benefit from 6 April 2007 becomes £3000 per annum. This taxable benefit is not levied if the private use is merely incidental. HMRC have given some guidance on what is incidental but this is not exhaustive so we will be pleased to advise on the situation if you are providing vans that can also be used for private journeys. Filing onlineEvery year, employers are required to send details of the salaries, tax and National Insurance deducted from their employees. These year-end returns have to be submitted by 19 May 2007 to avoid a fine. These documents can be submitted on-line via the internet. Appletons can assist you in this process. If you are a small business - defined by HMRC as having fewer than 50 employees - and you file your P35 online, HMRC will pay you £100 tax-free for doing so. You usually claim this back by reducing your next monthly PAYE payment. |
Income TaxAs previously announced there will be a starting rate of 10% for 2008/09 on savings income up to £2,320. This will not be available if taxable non-savings income exceeds £2,320.
* 10% starting rate only available for savings income up to £2,320. Allowances which Reduce Taxable Incomes
Allowances which Reduce Tax
Ages are at the end of the tax year.
Tax Shelters
** Based on 13 May 2008 revisions to original Budget announcements and subject to final confirmation. ° Start date subject to European Commission approval.
Income ShiftingFollowing the protracted case of husband-and-wife business Arctic Systems, which finally ended in defeat for HMRC last year, the Government has proposed legislation intended to undo the tax advantage gained by income shifting arrangements. The Government has considered the responses received to the recent consultation and believes that a further period of consultation will ensure that legislation in this area provides clarity and certainty for businesses and their advisers. The Government now intends to introduce legislation through the 2009 Finance Bill will not enact legislation effective from 6 April 2008. |
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