Tax update – week ended 10 September 2010

13th September 2010

NI HolidayThis “holiday” scheme started last Monday (6 September 2010), so HMRC clarified matters. The scheme only applies to:

• The first 10 employees employed in a business during the first trading year. If an employee leaves in this time, his “place” can’t be taken by another.
• Earnings paid to employees on or after 6 September 2010, where his/her first year expires

Tax update – week ended 27 August 2010

3rd September 2010

VAT reclaims in timeA married couple opened a pub in County Durham, April 2004. They submitted VAT returns, paying sales tax (VAT) to the government every 3 months. However, they didn’t realise that they could reclaim the VAT on purchases – up until they de-registered for VAT in March 2006.Somebody pointed out to them that they had lost out on ...read more

Tax update – week ended 20 August 2010

25th August 2010

Update 1. Employers lending cycles to employees The HMRC ordinarily taxes loans of cars, equipment etc. as a "benefit in kind". Essentially the benefit of this loan is considered part of the employee's wages. This is generally subject to income tax (20%/40%) and national insurance both for employers (12.8% national insurance) and employees (11% national insurance)Lending a cycle (and helmet) to ...read more