Brighton & Hove, Canterbury

 

 

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February 2004

 

EMPLOYERS

New staff – procedures

Remember to insist on a P45 or completed P46 for each new staff member. Failure to do so may result in a PAYE tax under-deduction, which the Inland Revenue are likely to ask you as employer to pay  - with interest!

 

Stakeholder pensions

The enforcing authority (OPRA) is carrying out a number of reviews to ensure compliance with stakeholder pension law. If you employ 5 or more individuals, you will need to ensure that a scheme is in place – a fine of up to £50000 can be charged if not!

Visit www.opra.gov.uk/StakeholderPensions for a guide to compliance in this area

 

National minimum wage

Remember that hourly rates were increased in October to:

           

Age      22 +                 £4.50

Age      18-21               £3.80

 

Further information on this subject can be found at  www.inlandrevenue.gov.uk/nmw

 

Compulsory electronic filing

 

 

Most employers will have received letters from the Inland Revenue, to notify of the move to compulsory e – filing between 2005 and 2009.

Remember that all small employers who opt for an early move will qualify for a rebate of up to £825.

Further information can be found at www.inlandrevenue.gov.uk/efiling

 

SAVING TAX

 

Child tax credits for 2003/04

These have been paid since 6 April, provisionally based on 2001/02 income.

After 5 April 2004,entitlement will be recalculated, based on actual income for the year.

Did your 2001/02 income level previously prevent a claim, whereas income has since fallen? If so, make a protective claim now at www.taxcredits.inlandrevenue.gov.uk

 

Child trust funds

For children born after 1 September 2002,the Government will pay into a trust fund,

to be made available to the child at age 18+.Further information can be found at www.inlandrevenue.gov.uk/ctf

 

Tax efficient capital expenditure

100% tax write off is now available for purchases in the following categories

 

Low emission cars

Cars which qualify in this category are either electrical or those whose emissions do not exceed 120 gms/km. For further information, and a list of cars included in the scheme, visit www.vcacarfueldata.org.uk and www.comcar.co.uk

 

IT equipment

100% immediate tax allowance is available for expenditure on computers, software and ‘peripherals’ such as printers and scanners. Note that this allowance will not be available for expenditure after 31 March.

 

 

Environmentally- Friendly Equipment

100% allowance is also available for a range of ‘environmentally- friendly’ equipment – the list of qualifying items is not limited to advanced technologies but includes everyday items such as some lighting systems, refrigerated display cabinets and even cold-water plumbing. Visit www.eca.gov.uk for a detailed list of qualifying expenditure.

 

While it is never a good idea to spend money just to qualify for a tax allowance, if you are considering expenditure in any of the above areas, remember also that:

 

-                      The 100% deduction will be available even if purchased on loan or hire

 

purchase terms

 

-                      Accelerated 100% relief will be available if purchase is made just before

 

the business year-end. At this time of year, this point applies in particular to businesses with 28 February year-ends.

 

………….and PAYING TAX!

 

Note that personal tax payments can also now be made:

 

-                      online at www.billpayment.co.uk/inlandrevenue

-                      by bank transfer (details shown on the reverse of the payslip) 

Following recent changes to the Insolvency rules, tax and vat debts are no longer preferential in a bankruptcy. This in turn means that the Inland Revenue and Customs and Excise are becoming more aggressive in the chasing of outstanding taxes – especially those owed by smaller businesses – in order to minimise potential exposure in cases of business failure.

 

 

 

 

 

 

 

 

 

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Telephone: 0044 (0)1273 203003  Fax: 0044 (0)1273 203223  Email: mail@epcn.co.uk