February 2007

Points to Ponder

This is now our Twenty Sixth newsletter – produced during February 2007 and issued in March 2007, to keep you up to date with some of the changes in Income tax, National Insurance and VAT along with compliance regulations for businesses. If you would like a copy of any past newsletters, please call and we can either send or e-mail them to you.

February News

1. Building work linked to planning applications – a back-door HMRC investigation (call Sue)

We have had several confirmed reports that HMRC is contacting householders who have had work carried out on their properties that required planning permission. This includes conversions, renovations, conservatories and tree surgery. A letter has been sent requesting details of all contractors and workers used on the site and the method by which they were paid. Although there doesn’t appear to be any legal obligation to answer these requests for information, most householders are likely to comply. The wrong answer will trigger a full Revenue enquiry.

2. Workers from the new EU states (call Sue)

Romania and Bulgaria have now joined the EU so their nationals have the right to come here. Unlike the existing member states, not everyone from these countries will be entitled to work. If you interview anybody from these countries, please make sure you check their passports and work permits.

3. Company directors working from home (call Angela or Sue)

To be able to claim your due “rent” for office space from your company, make sure you have a written agreement in place.

4. Interest on directors’ loans – is the company paying the tax? (Call Angela or Sue)

Many new companies are started by directors’ loans to buy initial equipment or stock etc. or the company agrees to buy the Goodwill of a former sole-tradership or partnership, with the purchase amount recorded in the accounts as a loan from the directors. The company is liable to pay interest on these loans but, just like a bank or Building Society, has to deduct tax on the interest and pay it over to the Revenue on a quarterly basis. Once set up, the Revenue sends out the necessary forms on a quarterly basis, so we are starting to ensure that all these loans are correctly registered. More red tape, but more tax-effective income for you.

5. Corporate Manslaughter Act (Call Sue)

I’m sure we were all horrified by the latest rail crash and have heard calls for “Corporate Manslaughter Charges” to be levied against the companies involved, but this new act covers all aspects of Corporate Responsibility for Health and Safety, including company vehicles and even use of employees’ vehicles for company travel. How safe are your vans or your workers’ vans or cars? Do you check the drivers are properly insured and the vehicles have a current MoT certificate? If there is an accident and the vehicle proves unroadworthy, you may be held to blame!

January News in brief.

Following the latest Self Assessment deadline we are determined that we are not going to have another December and January like those we have just worked through. We are bringing forward our record submission date to 15^th September 2007- it was 24^th October in 2006. Any records received after that date will be subject to a £50 surcharge and if they arrive after the beginning of December, we will not guarantee completing them on time. For once, since the start of Self Assessment, we want a break over Christmas and to see the New Year in at home and not in the office! Please help.

1. Company details needed on your Website and e-mails (Call Sue)

Just as on your business stationery, you must now give your company registration number, place of registration, registered office and VAT registration number on your Website and on your e-mails. This was introduced on 1^st January 2007 and non-compliance can attract a fine of up to £1,000.

2. Smokefree from 1^st July (Call Sue)

From 1^st July, when the ban on smoking in public places comes in to force, everyone will have to display notices on their business premises, to state that they are smoke-free – another sticker for the window.

Earlier News recapped

Apologies to non-Construction Industry clients, but we do want to remind those most likely to be at risk that the time left to get employee status checked and in order is getting shorter. Don’t forget we can offer a “Health Check” review of your workers.

Standing Order payments (Call Sue, Angela or Bernadette)

If using this method of payment would help you, we would be pleased to discuss a monthly or quarterly arrangement.

VAT Flat-rate Scheme (Call Sue)

This scheme can save many VAT-registered traders both time and money, but it is vital that you use the correct rate for your trade and not the one that saves the most money!

Company Law Changes (Call Angela or Sue)

Many rules and regulations are about to change for companies, most of which will affect our limited company clients. We’ll keep you posted.

Yet another scam.

West Midlands Police are investigating a recent scam where a card is posted through your door from a company called PDS (Parcel Delivery Service) saying that they had been unable to deliver a parcel and you should call them on 0906 6611911, which is a premium rate number. DO NOT CALL THIS NUMBER, as this is a mail scam originating in Belize. As soon as you call, you will be billed £15. If you receive a card with these details, contact Royal Mail Fraud on 020-7239 6655 or ICTIS (the premium rate service regulator) at http://www.ictis.org.uk or your local trading standards office.

Worker status review service. (call Sue)

Is emigration really the answer?

Agency Staff and Worker Status (call Sue)

Offshore accounts

The Revenue will be given details so tell us first.

Home Information Packs.

If you sell your home after June 2007, you will have to supply the purchaser with a Home Information Pack, including an Energy Rating Certificate. Find out more from the Department for Communities & Local Government Public Enquiries on 020-7944 4400.

Composite Companies

Time to get out from under these “Umbrella” companies. Beware of IR35

HMRC Enquiries – Trials of Alternative Interventions

If you receive any of these forms of contact, please let us know immediately.

Regulatory Reform (Fire Safety) Order 2005

Revenue v Police – access to information.

An opportunity here for underhanded access to records.