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Business News - December 2007
From Taper Relief to Possible Retirement Relief
In last month’s enews we reported on the shock announcement in the Pre- Budget Report that capital gains tax taper relief and indexation allowance would be scrapped for disposals on or after 6 April 2008. Since then business leaders have been making representations to the Chancellor, Alistair Darling, to change his mind or to delay the introduction of the proposals which have significant implications for many taxpayers.
HMRC Apologise to Child Benefit Customers
Following the announcement that HMRC disks, containing an estimated 25 million Child Benefit recipients’ personal and banking information, have gone missing, HMRC have put a letter on their website apologising to all those potentially affected.
Changes Ahead for Capital Allowances
As you are no doubt aware the system of tax reliefs on expenditure on equipment in your business is a complex one. Broadly when you buy a piece of equipment to use in your business you normally cannot set the full cost against that year’s profits, unless the value of the item is quite small, or a special tax relief applies. The cost of more expensive items is written off against profits over a number of years, using the capital allowances system.
PAYE Penalties
HMRC had previously issued a significant number of incorrect late filing penalty notices to employers in respect of their 2006/07 PAYE end of year forms P35 and P14. These forms are used to report details of employees pay, tax, national insurance contributions, etc.
Northern Rock ISA Savers
Following the problems at Northern Rock earlier this year, the government has announced that it will allow the people affected to re-invest their money into any cash ISA, including Northern Rock’s, and so restore their tax advantages. This announcement applies to funds withdrawn from Northern Rock ISAs between the 13 and 19 September 2007 inclusive.
2008/09 Allowances Announced
The government has published the 2008/09 rates and allowances for income tax, national insurance contributions (NI), the state retirement pension as well as other benefits and allowances.
Staff Parties
Are you planning a party for your employees? Are you aware of the tax implications?
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