Experts in Business

New HMRC penalties…

There is a significant change in the approach which HMRC will be taking in dealing with tax returns relating to periods starting on or after 1 April 2008, where the return is due to be submitted on or after 1 April 2009. HMRC have the legal right to enquire into any return and if they find [...]

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Pension contributions….

5th April 2009 will spend the end of tax year, and for some of you that will coincide with YOUR year end; therefore if you are wanting to maximise your pension contributions for the year, you may want to get in touch VERY soon. But then again, even if it isn’t your year end, [...]

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Reduction in the standard rate of VAT…

The standard rate of VAT was reduced from 1 December 2008 from 17.5% to 15%. HMRC have published some further frequently asked questions which clarify the correct treatment in several situations. One situation which helps to explain the complexity of the issue is as follows: ‘Treatment of tickets to events (theatre, football season tickets etc): 1. I [...]

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Business Payment Support Service

The Business Payment Support Service, announced in the Pre-Budget Report 2008, is designed to meet the needs of businesses affected by the current economic conditions. Any business that is worried about being able to meet tax, National Insurance or other payments owed to HMRC, or anticipates that payments becoming due will cause them problems, can [...]

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Proposed personal tax changes

The government has announced significant changes to the system of personal allowances and tax rates for the next few years. These mainly impact on those with higher levels of income. Allowances and rates The 2009/10 personal allowance will be £6,475. The basic rate limit will be £37,400. Therefore an individual will pay 40% tax rather than the [...]

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Standard rate VAT

The standard rate of VAT will be reduced from 17.5% to 15% for the period 1 December 2008 to 31 December 2009. The rate will then revert to 17.5%. No changes have been made to the 5% reduced rate or the 0% rate. The government will introduce ‘anti-forestalling legislation’ to prevent abuse of the reduction in [...]

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Newsflash…..BoE reduces base rate to 2%

The Bank of England has today voted to reduce the Bank Base Rate 1.0 percentage points to 2.0%…. the lowest rate in over 50 years. The Council of Mortgage Lenders has welcomed today’s rate cut, and believe “it will help the wider economy, even if it cannot be reflected universally in lower mortgage rates.” The impact this [...]

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Bank of England and Libor Rates

Following the recent 1.5% base rate cut by the Bank of England, the cost of inter-bank lending also decreased quite dramatically by falling over 1% to 4.49%. The LIBOR rate is the rate at which the banks lend to each other is related to the cost of mortgages to customers, and we are hoping that this [...]

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Shopping on the Internet

HMRC have updated their guidance on buying goods on the internet explaining when duty and / or VAT will need to be paid. The guidance has been updated in recognition that we are becoming increasingly global shoppers and may therefore benefit from some straightforward guidance. The information includes warnings that although you may think that a website [...]

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Entrepreneurs’ relief

The system of capital gains tax (CGT) for individuals and trustees changed radically from 6 April 2008. The changes included the abolition of taper relief and indexation allowance and the introduction of a single rate of CGT of 18%. In response to pressure from the business community the Chancellor introduced a new ‘Entrepreneurs’ Relief’ which has [...]

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