News Headlines on 09-05-2008

- EMPLOYMENT SUPPORT ALLOWANCE
Incapacity Benefit and Income Support are to be replaced by Employment Support Allowance (ESA). The change takes effect from 27 October 2008.

- 10% RATE OF INCOME TAX
Since the start of the tax year the basic rate of income tax has been reduced from 22% to 20% and the starting rate of 10% abolished for income except for savings and dividend income.

- ENTREPRENEURS’ RELIEF
After business leaders voiced their objections to the abolition of taper relief, the Chancellor introduced a new Entrepreneurs’ Relief (ER). ER may be available for disposals, reorganisations and relevant transactions taking place on or after 6 April 20

- P11D DEADLINE LOOMING
The forms P11D, which report employees and directors benefits in kind and expenses, are due for submission by 6 July 2008 for the year ended 5 April 2008. The process of tracking down the information can take some time so it is important that you don’t

- HOMEWORKING COSTS INCREASE
From 6 April 2008, HMRC has increased the tax and NIC free guideline rate that employers can pay home working employees without keeping records from £2 to £3 per week.

- CREDIT SQUEEZE
It appears that many businesses are suffering a cash “squeeze� from delayed payment of their invoices as the credit crunch begins to impact on the economy. There are complaints from businesses that some large customers have begun to extend their payme

- MARKS & SPENCER VAT WIN
M&S have won a landmark victory in the European Court of Justice. The case concerned whether or not HMRC were correct to limit the amount of VAT they repaid to the company after their chocolate teacakes were reclassified as a cake rather than a chocolate

- EMPLOYEES ENTITLED TO KNOW MORE
The Information and Consultation of Employees Regulations 2004 have been extended to cover undertakings with 50 or more employees from 6 April 2008.

- SKILLS GAP
With school and college students preparing to start the summer term and sit final examinations, the CBI has published the results of a new annual audit of the nation’s skills.

- IMPLEMENTATION DATE CHANGE FOR RIGHTS DURING MATERNITY LEAVE
Following changes being made to the Sex Discrimination Act and, later this year, to the Maternity and Parental Leave Regulations, the law on contractual terms of employment during Additional Maternity Leave (AML) is due to change in respect of women whose

- ONLINE SUBMISSION OF EMPLOYERS FORMS
The employers annual returns P35 and P14 (P60) are due for submission to HMRC by 19 May 2008. There is a tax free incentive payment due of £100 for small employers, those with less than 50 employees, who successfully file their returns electronically.

- ‘INCOME SHIFTING’ LEGISLATION DELAYED
The introduction of the proposed legislation on ‘income shifting’ has been delayed until April 2009.

- UPDATE ON RESIDENCE AND DOMICILE
The government will implement a package of reforms announced in the 2007 Pre-Budget Report subject to certain changes. The measures will take effect from 6 April 2008.

- ENTREPRENEURS` RELIEF DRAFT LEGISLATION
In the Pre-Budget Report last October Chancellor Alistair Darling announced a series of changes to the capital gains tax (CGT) regime for individuals and trustees. These changes included the abolition of taper relief and indexation relief and the introduc

- NATIONAL MINIMUM WAGE INCREASES
The National Minimum Wage will rise to £5.73 (£5.52) an hour in October 2008.

- NO PAYE/NIC OR CIS DEDUCTION PAYMENTS DUE
Even if no PAYE/NICs or CIS deductions payments are due for a given month or quarter, businesses are still generally required to notify HMRC by way of a ‘nil’ return.

- BENEFITS IN KIND AND EXPENSES IN THE PAYROLL
HMRC have published a consultation document on payrolling benefits in kind. The idea is that payrolling benefits in kind would remove the need for employers to complete P11Ds.

- HMRC Clamp Down on Income Shifting
FAMILY-run businesses face losing a tax saving of nearly £8,000 under plans by HM Revenue & Customs (HMRC) to clamp down on a practice known as ‘income shifting’.

- EMPLOYMENT RIGHTS - STATUTORY LIMITS
The limits on payments and awards made to workers in certain employment rights cases rose from 1 February 2008. The increased limits affect:

- HAD PROBLEMS FILING YOUR TAX RETURN ON TIME?
It will come as little surprise that, once again, an HMRC online system crashed an important time of year. This time it was the self assessment online service that was disrupted on 31 January 2008 and 1 February 2008.

- FUNDS TO HELP DISPUTE RESOLUTION
The government has announced up to £37m of funding to prevent work place disputes unnecessarily going to employment tribunals. The measures are part of a package designed to simplify the dispute resolution system.

- EMPLOYER AND CONTRACTOR RETURNS INTERIM PENALTIES
HMRC have announced that they have started sending penalty notices where their records show that they have not received 2006/07 forms P35 and P14 (the employer’s annual return and end of year summary). Similar penalties are also being issued where 2006/

- EXPENSES FOR EMPLOYEES
Normally, the payment or reimbursement of expenses or the provision of a benefit in kind is taxable on the employee. However, particularly with expenses, it may well be that the employee is entitled to tax relief personally on the same amount. In order to

- ILLEGAL WORKING CHANGES
For many years, there have been requirements for employers to verify the identity of their workers, to prevent illegal working. The legislation was backed up with fines.

- Curbing the capitalists hurts us all
FOR decades, venture capitalists have remained the people operating behind the scenes of some of the biggest business deals globally. On a much smaller scale, they are often the ones who have injected much-needed funding into SMEs to help them grow and ex

- PRE-BUDGET REPORT
This week’s pre-budget report gave notice of some important future changes which could affect your long term tax planning.

- According to national reports, the housing market has been booming for the past five years.
But the situation in the North East is a much more chequered picture…

- VAT-man gifts businesses up to £40k
THE VAT-man is not renowned for his generosity, but a tweaking of the rules is netting North East businesses as much as £40,000.

- NEW RULES ON VAT INVOICING
Certain new rules regarding VAT invoicing (i.e. what must be shown on an invoice) are being introduced. HMRC have issued an Information Sheet 10/07 confirming the scope of the changes which are to be introduced with effect from 1st October 2007...

- Should you buy machinery before or after 5 April 2008?
In the March Budget, the Chancellor announced significant changes to capital allowances.

- New life for LG Philips site
Accountants Expansion Onwards and Upwards. A NEW chapter in the life of the former LG Philips factory in Durham has begun with the first tenants moving in to a business park built on the site.

- Current Top 5 Tax Incentives?
Capital Allowances – Business Property Renovation Relief - This 100% regeneration incentive was legislated for in the 2005 Finance Act, but the measure has been awaiting EU approval. The commencement order has now been issued and the allowance is availabl

- “What Can You Do Today to Increase Your Focus on Adding Value?”
Many businesses claim they offer value added services, but are they actually offering what they say? In what ways are your services adding value to your clients’ experience with you?

- TOO BUSY TO LOOK FOR THE RIGHT MORTGAGE?
Too busy to look for the right mortgage? Let Coniscliffe do the work for you…

- A GREAT CATCH FROM ACROSS THE WATER
Whitby Seafoods is riding the wave of success after acquiring successful Northern Ireland firm Middleton Seafoods.

- Trainees can count on success
Two young accounting apprentices have set their sights on high flying careers after securing training places with one of the area’s leading accountancy firms.

- Clive Owen & Co LLP backs purchase of Teesside oil and gas inspection specialists
A Teesside firm of specialist oil and gas inspection engineers has been acquired by new owners following £250,000 worth of funding provided by NEL Fund Managers Ltd’s specialist mezzanine and debt division, Evolve Finance.

- IHT Looks Set to Hit Millions of Homeowners!
Increases in the price of housing means that one in five house owners may be liable to pay Inheritance Tax by 2020 according to new research by Halifax.

- REVISED BENEFIT IN KIND CHANGES TO COMPANY VANS (POST 6 APRIL 2007)
The first notices of coding showing the revised benefits in kind arising from company vans for the next tax year to 5 April 2008 have recently been landing on doormats. Whilst it has been known for the last three years there was to be a change in the tax

- THE BUDGET 2007
Gordon Brown presented his eleventh Budget on Wednesday 21 March 2007. This is expected to be his last before he makes a bid to become Prime Minister.

- Graduate Trainees Required For Expansion
Our continual expansion allows us to provide graduates the opportunity to study a wide variety of accountancy and tax qualifications. We train both graduates and school leavers with a good exam record and an eagerness and ability to progress. Please send

- TAKING OVER THE DRIVING SEAT AT VITAL YORK
Stephen Pattison and James Pawson have completed a management buy out of Vital York Limited from the Huntington School Education Fund.

- SMALL AND MEDIUM SIZED COMPANIES TO BENEFIT FROM NEW COMPANIES ACT
Regional firm of Chartered Accountants and Business Advisers, Clive Owen & Co LLP, have been assessing how the new Companies Act will affect businesses.

- Tees Valley Young Professionals Network - Members Event
Colourful Speed Networking! Hotel Bannatyne, Darlington on Wednesday 7th March 2007 at 6.30pm arrival for a prompt 7.00pm start.

- Communication Regulations
Limited companies in the UK must include certain regulatory information on their websites and in their e-mails from 1 January this year or risk breaching the Companies Act 1985. Every company now has to list its registration number, place of registration

- ENHANCED PROFILE FOR WINDOW SUPPLIER
Alan Hall has completed a management buy out to purchase the Newcastle division of the Sekura Group, the Sunderland-based window supplier. The business specialises in the manufacture of PVCu windows, French doors, conservatories and cavity formers to pre