February 2004
EMPLOYERS
New staff – procedures
Remember to insist on
a P45 or completed P46 for each new staff member. Failure to do so may
result in a PAYE tax under-deduction, which the Inland Revenue are likely
to ask you as employer to pay - with interest!
Stakeholder pensions
The enforcing
authority (OPRA) is carrying out a number of reviews to ensure compliance
with stakeholder pension law. If you employ 5 or more individuals, you
will need to ensure that a scheme is in place – a fine of up to £50000 can
be charged if not!
Visit
www.opra.gov.uk/StakeholderPensions for a guide to compliance in this
area
National minimum wage
Remember that hourly
rates were increased in October to:
Age 22
+ £4.50
Age
18-21 £3.80
Further information on
this subject can be found at
www.inlandrevenue.gov.uk/nmw
Compulsory electronic
filing
Most employers will
have received letters from the Inland Revenue, to notify of the move to
compulsory e – filing between 2005 and 2009.
Remember that all
small employers who opt for an early move will qualify for a rebate of up
to £825.
Further information
can be found at
www.inlandrevenue.gov.uk/efiling
SAVING TAX
Child tax credits for
2003/04
These have been paid
since 6 April, provisionally based on 2001/02 income.
After 5 April
2004,entitlement will be recalculated, based on actual income for the
year.
Did your 2001/02
income level previously prevent a claim, whereas income has since fallen?
If so, make a protective claim now at
www.taxcredits.inlandrevenue.gov.uk
Child trust funds
For children born
after 1 September 2002,the Government will pay into a trust fund,
to be made available
to the child at age 18+.Further information can be found at
www.inlandrevenue.gov.uk/ctf
Tax efficient capital expenditure
100% tax write off is
now available for purchases in the following categories
Low emission cars
Cars which qualify in
this category are either electrical or those whose emissions do not exceed
120 gms/km. For further information, and a list of cars included in the
scheme, visit
www.vcacarfueldata.org.uk and
www.comcar.co.uk
IT equipment
100% immediate tax
allowance is available for expenditure on computers, software and
‘peripherals’ such as printers and scanners. Note that this allowance
will not be available for expenditure after 31 March.
Environmentally-
Friendly Equipment
100% allowance is also
available for a range of ‘environmentally- friendly’ equipment – the list
of qualifying items is not limited to advanced technologies but includes
everyday items such as some lighting systems, refrigerated display
cabinets and even cold-water plumbing. Visit
www.eca.gov.uk for a detailed list of qualifying expenditure.
While it is never a
good idea to spend money just to qualify for a tax allowance, if you are
considering expenditure in any of the above areas, remember also that:
-
The 100%
deduction will be available even if purchased on loan or hire
purchase terms
-
Accelerated 100% relief will be available if purchase is made just before
the business year-end.
At this time of year, this point applies in particular to businesses with
28 February year-ends.
………….and PAYING TAX!
Note that personal tax
payments can also now be made:
-
online
at
www.billpayment.co.uk/inlandrevenue
-
by bank
transfer (details shown on the reverse of the payslip)
Following recent
changes to the Insolvency rules, tax and vat debts are no longer
preferential in a bankruptcy. This in turn means that the Inland Revenue
and Customs and Excise are becoming more aggressive in the chasing of
outstanding taxes – especially those owed by smaller businesses – in order
to minimise potential exposure in cases of business failure.
