October 2007

Points to Ponder

Welcome to our thirty third newsletter – produced during October 2007 and issued in November 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, plus other oddments that have caught our eye. If you would like a copy of any past newsletters, please call and we can either send or e-mail them to you.

This month’s news –

Introduction of the new Money Laundering Regulations.

This is one of the biggest changes in practise admin that I have seen since I started work, and that’s a longer time than I care to admit! With the increase in terrorism and drug smuggling, we can understand the need to monitor movements of money but the controls we have to introduce are very heavy-handed and will be time-consuming, all adding to overhead costs. As we are likely to be regulated in this area directly by HM Revenue and Customs, we have to get things right. An officer may make a control visit on very short notice and we only have until early December to get the records in place. These records are designed to cover you as well as us as insufficient information may lead to other lines of enquiry.

Basically we need to be able to prove that we have checked our clients’ identities and have such proof on file. For those who have been with us for some years, we should hopefully have sufficient documents already to satisfy the requirements, but for the majority of you we shall still need to copy your passport or some other identification that carries your photograph. We shall also need utility bills to prove your home address. It would really help us if we can make the necessary copies next time you call in to the office.

I feel that this identity checking is intrusive to say the least, especially as we have known so many of you for so long, but if we are to maintain the practise, we must ensure we have the required information on file – and Oh yes – it will be securely stored to comply with the Data Protection Act too!

Changes to VAT invoices now in force.

Have you amended your invoices to cover the new VAT regulations? In addition to the normal regulations (sequential numbering, supplier and customer names and addresses, VAT registration number and rate of VAT charged) traders using special schemes must declare them. This affects those using the margin scheme for secondhand goods, antiques, works of art and collectors’ items. If you export or import, there are certain changes required too.

Directors’ Duties & Responsibilities – changes in the Companies Act

From 1^st October 2007, directors have additional obligations by law. The most significant statement is that the director has a “duty to promote the success of the company, for the benefit of all its shareholders.” This seems obvious but the statement is linked to covering the interests of the company’s employees, the company’s impact on the community and the environment and forecasting the likely long term consequences of any decision.

Watch where you WEEE

From 1^st July 2007, the Waste Electrical & Electronic Equipment (WEEE) Directive (from the EU – of course) requires all electronic and electrical equipment to be recycled, reused or recovered, rather than sent to a landfill site. If you want to get rid of your old computer, you must now ensure that the final disposer is properly licensed to deal with the equipment. This may mean that we can help save the planet, but it costs you more to do so!

Increase your pension – play up your ailments!

Did you know that the rate paid out on your annuity pension could be increased if your declare all your ailments? It seems that companies will pay more each year if they believe you have fewer years in which to collect! A clean bill of health could mean a lower annual income. Before you accept the first offer from the company where you have maintained a scheme for several years, Independent Financial Advisers recommend a bit more shopping around.

Rent deposits

Shorthold tenancies with deposits registered under the tenancy deposit scheme came to an end on 31^st October. Landlords are now required to register the deposit with one of three Government approved schemes. Now deposits are either held by a third party or covered by insurance. The costs are with the owner and cannot be recouped from the tenant. If the landlord wants to withhold any repayment of a deposit, the onus is on him to prove why and any action is at the owner’s cost, not the tenant. With the buy-to-let market becoming saturated, will this be another lever to lower house prices?

The Pre-Budget Bulletin.

Yes, OK, I was trying to steer away from this as the waters are still very muddy. These measures are not yet law, but it will need a full defeat of the annual Finance Act to save us from these measures. The harshest proposal is the changes in Capital Gains tax for those who have planned to hold assets for a long term and make use of the indexation allowances. After next April 5^th, the proposal is to sweep these away. Those of you considering selling any assets should ask for some “what if” calculations fairly soon as any disposals to save tax must be completed before 5^th April 2008. Some of the inheritance tax changes may be of benefit but they are still with married couples or those in a civil partnership – so we are still off to Gretna Green this month! Once these measures have been clarified, we can start to help with some tax planning – please do arrange to speak to or meet up with Angela at some time.

Previous items covered – contact us if you want to know more.

No Smoking

Local authorities now have “Smoke Enforcement Officers” to monitor the new no smoking law.

Health and safety regulations and training

Any business with 5 or more workers, including sub-contractors, owners and part-timers, must have a written Health and Safety Policy and have carried out risk assessments as well as nominating and training a first aider and a fire marshal.

Offshore disclosure

The repercussions from this will go on for a long time.

CIS Changes and fines

The new regulations came in to force in April 2007. We have received official notification that fines will be imposed from 19^th October, and they will cover all late returns outstanding as of that date.

Spam e-mails

Just don’t open these, or they will multiply. If you’re not sure of a message’s content, delete it unread.

Rent-a-room

Don’t forget this useful tax-free source of income.

Increase in the right to paid holidays.

With effect from 1^st October 2007, the entitlement is going to increase to 4.8 weeks or 24 days for a full-timer and then on 1^st April 2009, increases again to 5.6 weeks or 28 days for a full-timer. These days include bank holidays and will be pro-rata’d for part-timers.

National Minimum Wage

These have all increased – please check with Dave.

Finally a personal note from Sue

Sue Jackson-Scott & Stuart Towner

117 Church Lane, Chessington, Surrey KT9 2DP

Telephone & Facsimile 0208-397 6599

e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

or This email address is being protected from spambots. You need JavaScript enabled to view it.

After quite a while, we have decided to get married. As we are running away to Gretna Green, we can’t invite you all to the wedding, but you are invited to a celebration on 1^st December at our home any time between noon and midnight. Food will be provided, just bring yourselves and your favourite tipple.

R.S.V.P. by letter or e-mail to the above address please.