New Budget 22 June 2010

The Cancellor of the Exchequer, George Osborne, will deliver his first 2010 budget speech to the House of Commons on 22 June 2010.

We will keep you informed of anything which may have implications for small business owners and will also be keeping a close eye on the possible implimentation of GAAR (General Anti Avoidance Rules) and possible (but more than likely) changes to the VAT rate, CGT and Corporation Tax.

Running your own business

• Are you planning to work as a freelancer or sole trader?
• Are you struggling to make your business a success?
• Do you need advice and guidance on small business accounting?

Contact SAIL for a free no obligation consultation on 020 8 241 3495.

In the comming weeks we will also be exploring the practicallities of setting up and administering your company and tackle some of the stumbling blocks our clients face on the way to making their business a success.

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

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

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

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