Simpler Tax?
There’s a new proposal to simplify the tax system with a much easier form so that taxpayers won’t need an accountant. The new form has only three lines:
1. How much did you earn last year?
2. How much do you have left?
3. Add 20% to the figure in 2.
Send the amount in 3 to us.
Just in case you have any doubts – this is not true. Too many accountants would be out of a job and HMRC can’t afford to lose the tax they pay.
National Minimum Wage (NMW) Penalties & Compliance
HMRC seem to be intent on cracking down on contraventions of National Minimum Wage (NMW) legislation. From 6th April 2009 new regulations come into force which will make it easier for HMRC inspectors to collect information about breaches of NMW rules. Investigating officers will have the power to remove complete PAYE records for a reasonable period.
The way that arrears of NMW are calculated to ensure that, should arrears have to be paid to employees, the arrears are paid at the current rate, not the rate applicable at the time the arrears arose.
Automatic penalties of up to £5,000 will levied where arrears of NMW are discovered by compliance officers and serious NMW offences can, in future, be subject to prosecution in the Crown Court and are liable to a potentially unlimited fine, not to mention a criminal record.
If you want to discuss any payroll issues, including NMW, give us a call on 01509 816150 or contact us via our website.
Thought for a busy business owner
“If your business depends on you, you don’t have a business – you have a job. And it’s the worst job in the world because you’re working for a lunatic”
That quote always reminds me that, as a business owner, I need to spend more of my time running the business and less actually working in it. Really successful businesses are those where the owner, entrepreneur if you like, has realised that the business needs to be operated in such a way that, to a large extent, it runs itself, leaving the owner to concentrate on growth, improvement and innovation.
Frequently just a few small improvements and a renewed focus can make a significant difference. If you feel that your business is running you, rather than the other way round, a chat about our consultancy service may be beneficial. Give us a call – (01509) 816150.
Budget 2009
Budget Day for this year will be 22nd April, about a month later than usual because of the G20 summit which is being held in early April.
Since the budget relates to the tax year which starts 6th April, we won’t actually know what changes are being made until after they will have taken effect, if that makes any sense.
If you want an explanation of any of the points raised in the budget, or indeed any tax matter, please contact us on (01509) 816150 or via email. You may also want to visit our tax section web page.
Little chuckle!
When does a person decide to become an accountant?
When he realises that he doesn’t have the charisma to be an undertaker.
But not all of us!
Online Filing
HMRC reported that 5.8 million tax returns were filed online by the deadline of midnight on 31st January 2009. 620 tax returns were actually filed on Christmas Day, compared to 489 in the previous year.
We found that the filing went very smoothly with no real problems. Most returns were filed and accepted within a few minutes – an indication that HMRC have made great efforts to ensure the stability of their systems.
Around 15,000 returns were filed on 1st February and HMRC are not treating these as being late.
