Business News
Employing a Family Member
Murphy Salisbury accountants are warning family businesses to be aware of controversial legislation to prevent ‘income shifting’ which has been postponed until at least 2010, and did not feature in this year’s Budget as originally planned. However, HM Revenue and Customs has reiterated its stance that it ‘firmly believes it is unfair’ to allow a small minority of taxpayers to benefit from shifting part of their income to someone, usually a family member, who is a lower-rate taxpayer.
Advisory Fuel Rates
To reflect the changes in fuel prices, HMRC have issued new advisory fuel rates for employees driving employer provided cars. These take effect for all journeys undertaken from 1 July 2009 so employers wishing to use the new rates should advise affected employees and update any expense forms as soon as possible.
HMRC New Disclosure Opportunity
HMRC have announced some details of the New Disclosure Opportunity (NDO) which is due to take place this autumn. In order to encourage taxpayers to disclose an undeclared offshore account the penalty level has been set at 10%. HMRC hope that the low penalty will encourage taxpayers to come forward. HMRC are currently liaising with various banks to obtain details for offshore account holders.
HMRC PAYE Services Interruption
HMRC are advising taxpayers and employers that, as part of its ongoing plans “to improve customer service and efficiency”, they are in the process of changing the way they process PAYE records. In order to make all PAYE records available on one computer system they are undertaking a major IT upgrade.
Tax Credits Renewal Deadline
Tax credits are state benefits which are generally available to lower income families. However, entitlement to the credits is significantly increased where individuals pay for childcare or suffer a drop in normal levels of income perhaps due to incurring trading losses or redundancy.
Employees Accrue Holiday Pay while on Sick Leave
The House of Lords has ruled in the case of Stringer v HMRC that workers who are refused holiday pay while on sick leave can make a claim to an employment tribunal for an unauthorised deduction from wages (under the Employment Rights Act 1996).
Extra Paternity Leave put on Hold
Proposals to introduce six months’ paid paternity leave for new fathers have been put on hold by the government in the light of the current economic climate.
HMRC Warn of Fraudulent Email
HMRC are warning that an email is currently being sent to some taxpayers advising them that HMRC have “approved them to receive monies”. Apparently the email states that this is as a result of an HMRC program on 15 June 2009.
Digital Britain
The government has published its report Digital Britain which sets out the government’s plans for the UK to be at the forefront of the global digital economy.
Corporation Tax Return Guide
HMRC have published revised guidance on the completion of the corporation tax return form CT600.
One in Five Businesses Admit Data Protection Breaches
A survey of over 500 SMEs carried out by the British Standards Institution (BSI) has found that nearly one in five businesses has unwittingly breached the Data Protection Act (DPA) at least once.
To find out more about how our leading firm of accountants in Stratford-upon-Avon and Warwickshire can help you, please contact us.
