This “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
VAT reclaims in time
A 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
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