Friday 6 November 2009

Increase in the standard VAT rate

The standard rate of VAT was temporarily reduced to 15 per cent on 1 December 2008 and it will return to 17.5 per cent on 1 January 2010.

For any sales of standard-rated goods or services that you make on or after 1 January 2010 you must charge VAT at the rate of 17.5 per cent.

For more information, please contact us or follow this link:

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-changes.htm

Wednesday 21 October 2009

Business Payment Support Service

On 24 November 2008, HMRC introduced a new, dedicated Business Support Service designed to meet the needs of businesses affected by the current economic conditions. This Service is still running and is available to help you if your business is viable and you are experiencing difficulties in meeting your tax obligations as a result of the current economic circumstances.

If you're worried about being able to meet tax, National Insurance, VAT or other payments owed to HM Revenue & Customs (HMRC), or you anticipate that payments coming due will cause you problems, you can call HMRC's Business Payment Support Line below seven days a week.

HMRC Business Payment Support Line
Tel 0845 302 1435
Open Monday - Friday 8.00 am to 8.00 pm, Saturday and Sunday 8.00 am - 4.00 pm.

For more information, please follow this link:
http://www.hmrc.gov.uk/pbr2008/business-payment.htm

Thursday 17 September 2009

LOANS TO PARTICIPATORS

Inland Revenue does not want participators in a company to receive “tax-free” loans instead of taxable salaries or dividends. If a loan is made and not repaid to the company within nine months of the end of that accounting period, the company must pay 25% of the loan amount to Inland Revenue (ICTA88/S419) as further tax.

In addition, any loan in excess of £5,000 made to a director or an employee is also a benefit in kind unless the recipient pays the official rate of interest on the loan. The benefit will be taxed in the participator’s personal capacity.

For more information please contact us on 0208 241 3495 or info@sailsolutions.co.uk

Wednesday 9 September 2009

HMRC Podcasts

August 2009


New Disclosure Opportunity (NDO)
HMRC's Dave Hartnett talks about the latest opportunity for offshore account holders to come forward to HMRC and declare their untaxed offshore income and interest.


Listen to the NDO podcast mp3
View transcript of the NDO podcast (PDF 37K)

February 2009


Compliance Checks
What HMRC's new compliance checks regime, coming into effect this April, means for tax advisors, individuals and businesses.


Listen to the Compliance Checks podcast mp3
View transcript of the Compliance Checks podcast (PDF 29K)

TAX HELP

HMRC has recently launched a quick bite-size video library to get the basics on tax from real small business owners. We definately recommend having a look if you are thinking about setting up in business or if you need a general overview on a particular subject.

HMRC video library

Welcome - setting up in business
Find out about the different types of business you can set up - a self employed stunts man and a mountain bike limited company explain more.Play video (Flash video) - Opens in a new window


Income Tax - for the self employed
What happens with income tax when you work for yourself? A self employed web designer goes through the basics.Play video (Flash video) - Opens in a new window


Corporation Tax
If you decide to set up a limited company you need to know about corporation tax. A hair extension business owner discusses the lengths she went to...Play video (Flash video) - Opens in a new window

Keeping Records
A performance artist tells us why keeping good records is key to being in control of your business.Play video (Flash video) - Opens in a new window

VAT
An intriguing company talks us through the basics of VAT.Play video (Flash video) - Opens in a new window


National Insurance

What do you do about national insurance if you work for yourself? A tattoo artist and a uniforms supplier explain it.Play video (Flash video) - Opens in a new window

Employing Other People
Want to grow your business and take on staff? A gardening business sums up what you need to know about the tax side of it.Play video (Flash video) - Opens in a new window

Importing and Exporting
Buying or selling products outside the European Union? A flower importer explains about import duty and VAT.Play video (Flash video) - Opens in a new window

Business Allowances
An introduction to deductions, reliefs and allowances that can help reduce how much tax you pay.Play video (Flash video) - Opens in a new window

Construction Industry Scheme
Find out what work falls under this scheme and the special tax rules and regulations for contractors and subcontractors.Play video (Flash video) - Opens in a new window

Wednesday 10 June 2009

Manage Your Money Workshop

Tired of worrying about money? Interested in managing your own financial destiny?

Refer a friend to SAIL this month and WIN the chance to learn how to take control of your finances!

SAIL Business Solutions would like to invite you to enter our “Manage Your Money” workshop competition. Our competition is open to anyone who refers a new client to SAIL between 1 June 2009 and 26 June 2009.[1]

Our winner will be awarded a place (worth £160) at the “Manage Your Money” workshop to be held in Putney, London on the 4 July 2009. This workshop will be hosted by Alison Sparg, a Chartered Accountant with more than 10 years of commercial and corporate experience.

The workshop has received rave reviews and will cover the following topics:

Beliefs & Attitudes:
Examining your beliefs around money & understanding your attitude to money
Assets & Liabilities:
Understanding your own personal Balance Sheet
Your Financial Vision:
Why do you want to be wealthy & how do you set yourself Financial Goals?
Budgets:
Using budgets to help you achieve your Financial Goals
Joint Finances:
Dealing with money in a long-term partnership
Debt:
Understanding different types of debt & coming up with a plan to be debt-free
Mortgages:
What are your options?
Savings:
How much should you be saving and how?

If you do not know of anyone you might wish to refer, but would still like the opportunity to reserve your place at this workshop, kindly let us know. For further information about the workshop or Alison’s financial background please visit www.financialfocus.co.za

SAIL Business Solutions

0208 241 3495 (office)
info@sailsolutions.co.uk
www.sailsolutions.co.uk
http://accountantsuk.blogspot.com
[1] Terms and conditions apply. The winner will be randomly selected and will be notified by e-mail.

Thursday 12 March 2009

Rewarding Referral Scheme

We have really enjoyed working with you and would love to build our business with more great clients like yourself.

We would like to give back to you by inviting you to participate in our exciting and rewarding referral scheme.

HERE IS HOW IT WORKS:
• You pass on our details to someone who is in need of accounting and/or taxation services.
• The person you recommended then engage us as their accountants and provide us with
your name when they sign on.
• We will confirm your address details and send you some wonderful Waitrose/John Lewis
gift vouchers or a delightful duo of wines as a thank you for the recent referral[1].

Recommendations are the finest compliment we can receive from our clients. You can be assured that we will remain committed to the high level of service you have come to expect from SAIL.

Thank you again for your business and continued support.

Kind regards,



Marise Heydenrych
SAIL Business Solutions Ltd

[1] Conditions apply

Thursday 5 March 2009

VAT: Withdrawal of the Staff Hire Concession

The current concessionary arrangements in respect of supplies of temporary workers by employment businesses will be withdrawn with effect from 1 April 2009. Currently such businesses are allowed to exclude the wages element from the supplies they make, and to account for VAT solely on their margin.

Who will be affected?
Employment bureaux who use the existing concessionary arrangements and any of their customers who are not able to fully recover the VAT charged to them e.g. finance sector, health and care sector, education sector, charities and some parts of the public sector.

Background
The existing Staff Hire Concession was introduced in 1997 as a temporary measure designed to provide employment businesses with a similar VAT treatment to that enjoyed by employment agents who also paid workers directly. It was extended again at the end of 1998, pending the introduction of Department of Trade & Industry (DTI) regulations.

DTI introduced the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (Conduct Regulations) to take effect from 2004. Customs & Excise, as was, consequently introduced a further related concession to maintain an equitable VAT treatment. Customs also confirmed that the concessionary arrangements would continue for a period of 18 months to allow sufficient time to fully assess the impact of the Conduct Regulations on the VAT treatment and the effect of withdrawing the concession. In June 2006 HMRC announced its review (in Business Brief 06/06) and invited contributions from all affected businesses and any other interested parties. A summary of these responses will be published on 1 April.

Current operation
The existing concessionary arrangements are set out in Part A of the Statement of Practice contained in Notice 700/34, and in Business Brief 10/04.

Change in treatment
Following the introduction of the Conduct Regulations, changes were made which restricted the ability of employment agencies to make payments directly to temporary workers. This means that, where workers are paid directly by an employment bureau, the bureau will be acting as an employment business and a principal for VAT purposes. Now that the regulatory framework for this sector has been amended to ensure equal treatment for those operating on the same commercial basis, HMRC consider that this tax concession is no longer necessary. Furthermore, the concession has no basis in UK or EU VAT law and must therefore be withdrawn. Accordingly, VAT will be applied to all of the consideration employment businesses receive, including the wages element, in respect of the supplies they make.

HMRC recognises that different providers and hirers will be impacted in different ways, depending on the extent to which the additional VAT costs are passed through to hirers, and their ability to recover the VAT. As a result, the concession will not be withdrawn until 1 April 2009, giving over 12 months for providers and hirers to prepare for the change, and adjust their contracts and business plans accordingly. During this transitional period HMRC will be happy to discuss the impact of the change further with those in affected sectors.

Further advice
An Impact Assessment has been published alongside the announcement in the Budget. HMRC will also be publishing a summary of responses document on 1 April 2008. If you have any questions about this change, please contact the National Advice Service on 0845 010 9000.

Monday 9 February 2009

Companies House Late Filing Penalties

1st February 2009

Late Filing Penalties

Section 441 of the Companies Act 2006 requires all companies to deliver annual accounts to the Registrar of Companies by the due date. Section 453 specifies that a civil administration penalty shall be payable if the accounts are delivered late, and provides for the Secretary of State to specify the level of this penalty through regulations.

To increase the effectiveness of the late filing penalties, when section 453 comes into force Companies House will change the current schedule of late filing penalties as contained in section 242A of the Companies Act 1985. In parallel, the Government will amend section 242A of the 1985 Act so that these changes also apply to accounts prepared under the 1985 Act but delivered late on or after 1st February 2009 when the updated penalties come into force.

What are late filing penalties?

Late filing penalties were introduced in 1992 to encourage directors of limited companies to file their accounts on time because they must provide this statutory information for the public record.

What are the changes being introduced?
  • All penalties to be increased to take account of inflation between 1992 and 2007
  • A faster rate of increase in penalties for companies who file more than one month late.
  • A doubling of the penalty for any company which files late having also filed late in the previous year.

What are the new late filing penalties?

The new table of penalties is a follows: *


How late are the accounts delivered Penalty –Private Company Penalty - PLC
Not more than one month £150 £750
More than one month but not more than three months £375 £1500
More than three months but not more than six months £750 £3000
More than six months £1500 £7500


In addition where there was a failure to comply with filing requirements in relation to the previous financial year (and that the previous financial year had begun on or after 6th April 2008), the penalty will be double that shown in the table.


When do these new penalties apply?

The new penalties will apply from 1st February 2009.


If my accounts are/were already overdue before the 1 February 2009 will the new penalties apply to me?

Regardless of when your accounts became overdue, from the 1st February 2009 the new penalties apply to all accounts delivered late.


How will I know when a penalty is levied?

If accounts are delivered late, an invoice is issued automatically to your registered office address.


Do the penalties apply to flat management and dormant companies?

Yes.


How can I avoid penalties?

Read the filing reminders that Companies House send to your registered office address.
Allow enough time to ensure that your accounts reach the Registrar within the period allowed in the Companies Act. First-class post is not guaranteed so if the filing deadline is looming, then please consider guaranteed methods of delivery that will ensure that your accounts arrive on time. Remember: the Registrar will not waive a penalty if your accounts are delayed in the post.


You can now file certain categories of accounts using our Software Filing or WebFiling services using the Companies House website. If you file your accounts electronically you will benefit from an email acknowledging receipt of your accounts.


What will happen if the penalty is not paid?

The penalty will be referred to collection agents. If it remains unpaid, legal action may be taken which could result in a County Court judgement or a Sheriff Court decree against your company.


Did the Late Filing Penalty changes go for public consultation?

Yes the original proposals went for public consultation on 20th July 2007, and all responses were required by 12th October 2007


Where can I find a copy of the consultation document and the response?

The consultation document and the response are both available on the publications pages of the Companies House website at: http://www.companieshouse.gov.uk/companiesAct/publications.shtml

Copies of the regulations are available on the OPSI website at:http://www.opsi.gov.uk/si/si2008/uksi_20080497_en_1


14 day concession

Section 706 of the Companies Act 1985 required companies to deliver documents in a legible form and allowed 14 days from the date of any rejection letter to re-file them. There is no replacement in the Companies Act 2006 for this section and so it will cease to exist from 1st October 2009. A company will therefore no longer have 14 days from the date of the rejection letter in which to amend and return accounts in an acceptable format.


Do late filing penalties apply to other documents?

Where a company amends its articles of association, a copy of the amended articles must be sent to Companies House within 15 days. Failure to comply is a criminal offence.


From the 1st October 2009, the Companies Act 2006 introduces a new civil penalty of £200 for failure to comply. The penalty will only trigger if a company receives notice from the Registrar requiring it to deliver a copy of its amended articles and it does not comply within 28 days.


The company would remain liable to criminal proceedings in addition to the £200 civil penalty.