Financial Monitor (March 2009)

Government Extends its Ability to Obtain Information for Tax Purposes

The UK Government has recently signed a Tax Information Exchange Agreement with Jersey. This allows the exchange of information which may be relevant to the tax status of residents of either country. The UK already has such agreements with Bermuda, the Isle of Man, the British Virgin Islands and Guernsey.

This is the latest in a number of initiatives which increases the likelihood that UK taxpayers with offshore assets and bank accounts will have their details provided to the UK authorities.

HMRC Changes its Bankers

During 2009 HM Revenue and Customs will be moving its banking business from the Bank of England to Royal Bank of Scotland and Citibank due to the Bank of England deciding to cease providing retail banking and clearing services. Those who pay by telephone or over the internet will need to obtain a new sort code and account number once HMRC have moved to the new Banks. HMRC will provide this information in due course.

Approved Passenger Payments

In addition to the 40p (or 25p) tax free mileage allowances that can be paid to employees who use their own cars for business a 5p per passenger per mile tax free allowance can also be paid if an employee carries one or more passengers, provided any passenger is also travelling for business purposes. The 5p per mile can also be paid to those who use company cars other than pool cars for business travel when passengers are carried.

Stress in the Workplace

Stress is a major problem for some employers and can be the biggest single reason for staff absences from work in the UK. The Health and Safety Executive has produced a dedicated website to help employers identify and cope with stress related issues.

(Contributed by Rod Austin, Estates Services On Line Limited)

The website address is www.hse.gov.uk/stress/tacklestress/index.htm

Tax Deferrals Help Line

HMRC set up a helpline in November to help those who were having difficulty paying their tax, PAYE and VAT bills. Over 60,000 businesses and individuals have so far benefited from time to pay arrangements. Most deferrals have been for a period of 3 to 6 months. A decision is often given within 10 minutes. However, where the debt is large – more than £10,000 or in complex cases more detailed considerations have been necessary.

HMRC will consider the following criteria when deciding on time to pay arrangements:

HMRC have generally been sympathetic during the first few months of the scheme but recent experience suggests that HMRC are applying tougher criteria and deferrals of more than 3 months will require review by a local manager or a Revenue Accountant for deferrals more than 6 months.

Flexible Working

On 6 April 2009 the right to request flexible working is being extended to parents of children aged 16 or under. Currently it is only for children under 6 or a disabled child under 18 where parents have that right.

The employer will need to consider such requests carefully to see whether they can be accommodated.

Penalties for Failing to Pay Class 2 National Insurance Contributons

The £100 penalty for failing to register with HM Revenue and Customs within 3 months of commencing self-employment will not apply where the self-employment begins after 5 April 2009. However, failing to pay Class 2 National Insurance Contributions by 31 January following the end of the tax year in which self-employment commences will be treated as an under declaration of tax and be liable to penalties in line with those applied to understated tax liabilities.

VAT on Business Entertaining of Overseas Customers

VAT recovery relating to expenditure on business entertainment provided to overseas customers is under review.

HMRC is currently reviewing the input tax treatment of business entertainment provided to overseas customers in the light of a recent European Court of Justice judgment.

Businesses may submit claims, together with supporting evidence, in order to protect their position, pending HMRC’s statement of its position. Any such claims should be confined to entertainment which is of a kind and on a scale that is reasonable. Any claims submitted should, as a minimum, include:

HMRC believes that the current practices regarding the entertaining of UK customers and employees are unaffected by the ruling.

Claims can go back 3 years.

Statutory Holiday Entitlement

From 1 April 2009 all full time employees will be entitled to 28 days paid holiday including statutory holidays per annum. Part-time workers will be entitled to pro rata holidays according to their working hours.

Open Day 29 April 2009

Our offices will be open to all from 2.00pm to 6.00pm on Wednesday 29 April 2009 for free advice. Our team will be available to answer any financial questions you may have but in particular we will be focussing on ways of protecting your business during the recession. We will be supported by representatives from Banner Jones Limited Solicitors, Yorkshire Bank and Stephen Smith our in-house Financial Adviser. The event is open to clients, contacts and anyone who requires assistance on financial issues. Refreshments will be available throughout the afternoon. There is no need to book appointments for this event but it would be helpful if you could let us know if you are intending to attend and at roughly what time in the afternoon. Please telephone Joyce Crowther on 0114 275 1544 or email her at j.crowther@uhy-wingfieldslater.com if you wish to attend.

Whilst every care has been taken in the preparation of these notes we can accept no responsibility for errors or omissions contained in them or for any loss arising from their use unless we have been consulted professionally prior to any action being taken.

UHY Wingfield Slater
Wellington House, 39 Wellington Street, Sheffield S1 1XB
Tel: 0114 275 1544 Facsimile: 0114 275 1366 Email: info@uhy-wingfieldslater.com Web Site: www.uhy-wingfieldslater.com
Registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales

A member of the UHY Hacker Young Group of independent UK partnerships. A member of UHY, an international association of independent accounting and consulting firms.

Print This Page | Previous Page