February 2005

Points to Ponder

This is now our fourth newsletter – produced during February 2005, to keep you up to date with some of the changes in Income tax, National Insurance and VAT along with compliance regulations for businesses. As we don’t write to all of you each month, we shall run the notes on a rolling three or four month basis, so if you think you have missed a month, just call and we can tell what points were covered. Don’t forget to keep us updated with any changes of address, including e-mail addresses.

November 2004

1. Classification of Construction Industry Workers. (call Sue)

2. Company vans and benefits in kind (call Sue or Angela)

5. Limited Companies – profit extraction. (call Angela)

6. Records to return (call Andy)

We are desperately short of space and need to return records. If you cannot collect your old records, we shall have to return them by post or TNT and pass on the cost. You are required to keep all your records for 6 years – please take them back!

Close of November notes

December 2004

1. 1. Limited Companies – Online filing at Companies House (call Angela)

Costs will double if you don’t file on line.

1. 2. Illegal workers - £5,000 fines.

The Home Office warning..

1. 3. Scams.

Beware of official-looking documents demanding money, they may not be genuine..

1. 4. Cheques that never clear. (Call Sue)

1. 5. Revenue and Customs and Excise are now officially combined. (call Sue)

1. 6. Protective clothing. (Call Sue)

The Revenue is tightening up on claims for protective clothing and is disallowing anything that can have “dual purpose” such as jeans. Consider a uniform with your business name on t-shirts and similar items, as this would certainly be a business expense.

1. 7. Tax-free payments from the Revenue for filing PAYE on line. (Call Dave)

Please see November’s note – we can still offer this service, even if we don’t prepare the payroll for you.

End of December’s notes

January 2005

1. New Year’s Resolutions

For those of you who let us have your records after our deadline of 30^th November, please ensure you get them in earlier this year. We shall be charging a premium on last minute records, to cover our own overtime costs etc.

2. Under-paid postage. (Call Dave)

We have experienced problems with records sent to us with insufficient postage on the packages or envelopes. Some of this is due to the new self-adhesive stamps not sticking properly! In some instances, not only has this cost us the missing postage plus a £1 handling charge from the Royal Mail, but also a delay in delivery of up to a month.

3. Small Business Rates Relief (Call Sue)

If you rent or own business premises and only have one branch with a rateable value of less than £10,000, you may be entitled to a small business rates relief. This isn’t an automatic reduction, you need to register, so don’t miss out.

4. Disciplinary and Grievance procedures. (Call Sue or Angela)

Yet more new employment legislation states that all employers must let their staff know what procedures are in place if they are to be disciplined or if they have a grievance. This should be supplied in writing and form part of their contract of employment.

5. PAYE Year End Returns may be rejected by the Revenue (Call Dave)

THIS NOTE IS VERY URGENT AND MOST IMPORTANT.

After announcing the tax-free bonus for making your PAYE year end returns on line, the Revenue has now announced that it will reject all returns where employees’ dates of birth or National Insurance numbers are missing. Rejection of the returns means that re-submitted forms will be treated as being late, so attracting the statutory £400 fine for late PAYE returns. The Lord giveth and the Lord taketh away!

End of January Newsletter

February 2005

1. Licensing Private Rented Accommodation. (Call Sue or Angela)

Moves are being made to bring in licensing of private rented accommodation, starting with multiple occupancy dwellings, but moving on to properties in areas of low demand. This may affect all buy-to-let property eventually and is likely to cover fire regulations and similar concerns under Health and Safety legislation.

2. Child Trust Funds. (Call Sue)

If you have a child born after 1^st September 2002, you are entitled to a grant from the government to open a trust fund, designed to help with the child’s education. If you are claiming Child Benefit, you should receive a voucher and information pack automatically. If you are not claiming Child Benefit, then apply now. More information is available at the government’s web site at http://www.childtrustfund.gov.uk.

3. Employer-provided childcare (Call Angela)

This is a new rule affecting limited companies who can now make contributions towards childcare for their staff. The same offer must be made to all staff, and is tax deductible to the company and not a taxable benefit in kind to the staff.

End of February newsletter – a quiet month for the legislators, pending the Budget and the anticipated General Election!