Stephen Timms, the minister charged with overseeing Britain's "digital revolution," pledged yesterday to pass the £6-a-year broadband tax into law "before the general election," despite opposition from the Conservatives.
Mr Timms, the Financial Secretary to the Treasury and minister for Digital Britain, said: "We want to make high speed networks nationally available. The next-generation fund will help that and we will legislate for it this side of a general election."
The Government announced in June that it would tax each household with a landline telephone 50p per month. The levy would be used to fund ambitious plans to bring super-fast broadband to 90 per cent of the country by 2017.
Read more: http://www.independent.co.uk/news/business/news/1636-broadband-tax-will-be-law-before-next-election-1792266.html
www.ukba.co.uk
Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Wednesday, 14 October 2009
Sunday, 11 October 2009
HMRC raises interest rate on late tax payments
HMRC has been criticised for increasing the rate of interest it charges on late tax payments. The Guardian reports that HMRC now charges 3% interest on late payments, even though the Bank of England's base rate has stayed at 0.5% since March. A spokesperson from accountancy firm UHY Hacker Young said that this was a sign of HMRC "clawing more money from taxpayers".
For more on this story go to:
http://www.guardian.co.uk/money/2009/sep/18/interest-rate-late-tax-payments
www.ukba.co.uk
For more on this story go to:
http://www.guardian.co.uk/money/2009/sep/18/interest-rate-late-tax-payments
www.ukba.co.uk
Friday, 2 October 2009
Tax code swells by 150% in 12 years
Lexis Nexis says its Yellow Tax Handbook has more than doubled in size from 4,998 pages in 1997 to 11,520 today.
LexisNexis has found the UK's tax code weighs in at double the amount of pages it did in 1997, when the Labour government came into power.
On the the launch of the 2009 edition of its tax guide, Tolley’s Yellow Tax Handbook, the business information company said the current issue contained 11,520 pages, compared to 4,998 pages twelve years ago.
Tax experts said the significant increase highlights the growing complexity of the UK tax system and the impact of the government’s recent attempts to introduce recession-busting legislation.
Read more: http://www.accountancyage.com/accountancyage/news/2248994/tax-code-swells-150-years
www.ukba.co.uk
LexisNexis has found the UK's tax code weighs in at double the amount of pages it did in 1997, when the Labour government came into power.
On the the launch of the 2009 edition of its tax guide, Tolley’s Yellow Tax Handbook, the business information company said the current issue contained 11,520 pages, compared to 4,998 pages twelve years ago.
Tax experts said the significant increase highlights the growing complexity of the UK tax system and the impact of the government’s recent attempts to introduce recession-busting legislation.
Read more: http://www.accountancyage.com/accountancyage/news/2248994/tax-code-swells-150-years
www.ukba.co.uk
Friday, 18 September 2009
Tax regime ‘threatening businesses’
Small and medium-sized business in the UK are worried that the country's tax regime will hinder economic recovery, according to research from accountancy firm MacIntyre Hudson.
The research revealed that 80% of small firms think that the UK's tax regime poses a greater threat to the economy than cuts in public spending and, as a result of the tax penalties on high earners, 89% believe Britain will fall victim to a ‘brain drain', as top talent leaves for more favourable opportunities elsewhere.
One in five company owners said that it is unlikely they would have chosen to start a business under the tax regime of today and 69% describe the current system as less competitive than when they first set up their own business.
"The message from business is clear. What was once a celebrated, competitive tax and regulatory regime has become increasingly burdensome, particularly for those ambitious individuals who underpin the health of our economy," said Nigel May of MacIntyre Hudson.
www.ukba.co.uk
The research revealed that 80% of small firms think that the UK's tax regime poses a greater threat to the economy than cuts in public spending and, as a result of the tax penalties on high earners, 89% believe Britain will fall victim to a ‘brain drain', as top talent leaves for more favourable opportunities elsewhere.
One in five company owners said that it is unlikely they would have chosen to start a business under the tax regime of today and 69% describe the current system as less competitive than when they first set up their own business.
"The message from business is clear. What was once a celebrated, competitive tax and regulatory regime has become increasingly burdensome, particularly for those ambitious individuals who underpin the health of our economy," said Nigel May of MacIntyre Hudson.
www.ukba.co.uk
Thursday, 3 September 2009
£100m tax hike threat to 100,000 small firms Read more: http://www.dailymail.co.uk/news/article-1208021/100m-tax-hike-threat-100-000-small-firms.html#
Tax rises of £100million are threatening to drive tens of thousands of small firms out of business, the Tories warn.
Ministers have admitted that 100,000 of the smallest companies are likely to be taxed an average of £1,000 extra each over the next three years.
The Government's own estimates suggest that one in 20 firms will go out of business while trying to pay.
Read more: http://www.dailymail.co.uk/news/article-1208021/100m-tax-hike-threat-100-000-small-firms.html
Source: Daily Mail
www.ukba.co.uk
Ministers have admitted that 100,000 of the smallest companies are likely to be taxed an average of £1,000 extra each over the next three years.
The Government's own estimates suggest that one in 20 firms will go out of business while trying to pay.
Read more: http://www.dailymail.co.uk/news/article-1208021/100m-tax-hike-threat-100-000-small-firms.html
Source: Daily Mail
www.ukba.co.uk
Monday, 17 August 2009
Tax timebomb could force more small businesses under
A leading insolvency expert has urged small businesses affected by the recession not to "bury their heads in the sand" as another wave of business collapses could be on the horizon, triggered by the inability to settle tax liabilities.
Mace & Jones insolvency unit partner Graeme Jump said while many exposed companies have already succumbed to the pressures of the recession, a new round is inevitable after the summer break. Official figures show that North West insolvencies dropped to 35 in June, compared to an average of 48 per month since the start of the year. The first six months of the year saw 10,242 companies enter into insolvency – up 33.8 per cent on the same period in 2008.
“There has been a slight drop in insolvencies but this masks deep problems,” he said. “A number of vulnerable businesses have been slashing costs by redundancies, operational cuts, and grabbing the Government’s offer of delaying payments for such taxes as PAYE, VAT, and Corporation Tax. That six months tax-holiday already amounts to billions in delayed payments, and will soon expire, leaving many businesses exposed to urgent demands from the taxman.”
Seek insolvency advice as soon as possible
www.ukba.co.uk
Mace & Jones insolvency unit partner Graeme Jump said while many exposed companies have already succumbed to the pressures of the recession, a new round is inevitable after the summer break. Official figures show that North West insolvencies dropped to 35 in June, compared to an average of 48 per month since the start of the year. The first six months of the year saw 10,242 companies enter into insolvency – up 33.8 per cent on the same period in 2008.
“There has been a slight drop in insolvencies but this masks deep problems,” he said. “A number of vulnerable businesses have been slashing costs by redundancies, operational cuts, and grabbing the Government’s offer of delaying payments for such taxes as PAYE, VAT, and Corporation Tax. That six months tax-holiday already amounts to billions in delayed payments, and will soon expire, leaving many businesses exposed to urgent demands from the taxman.”
Seek insolvency advice as soon as possible
www.ukba.co.uk
Saturday, 8 August 2009
£3bn in tax payments deferred by HMRC
The taxman has now deferred £3.17bn in tax under arrangements announced in April's Budget - around 177,000 separate deferral agreements- to ease the burden on business in the recession.
The latest statistics from HM Revenue and Customs show that while the sum deferred is still climbing it is not all outstanding - around £2bn has been paid back. That leaves a sum of £1.14bn still in the process of being repaid.
According to a statement from HMRC around 90% of what was expected to be repaid has been received.
Of the £3bn deferred £320m forms repeat deferrals. Around 60% of deferrals are for three months or less.
The payment service arranges deferrals of PAYE, VAT, national insurance and corporation tax.
Businesses are able to use the service if they are 'genuinely unable to pay' and if the tax they owe is on the previous year's profits or if a trading loss in the current year is a high probability.
www.ukba.co.uk
The latest statistics from HM Revenue and Customs show that while the sum deferred is still climbing it is not all outstanding - around £2bn has been paid back. That leaves a sum of £1.14bn still in the process of being repaid.
According to a statement from HMRC around 90% of what was expected to be repaid has been received.
Of the £3bn deferred £320m forms repeat deferrals. Around 60% of deferrals are for three months or less.
The payment service arranges deferrals of PAYE, VAT, national insurance and corporation tax.
Businesses are able to use the service if they are 'genuinely unable to pay' and if the tax they owe is on the previous year's profits or if a trading loss in the current year is a high probability.
www.ukba.co.uk
Thursday, 30 July 2009
Small firms warned over VAT change
Millions of small businesses face a potentially crippling tax bill because of confusion about changes in VAT, according to the Federation of Small Businesses (FSB).
The FSB claim that many small companies are confused about how much tax they should be paying from next year, when VAT reverts to 15% from 17.5% on the 1st of January 2010.
"Companies will be suffocated by further red tape as a result of the change and will face crippling tax fines if they get their tax wrong." Said Stephen Alambritis of the FSB.
In April this year the government doubled the standard penalty for companies that make an error on VAT payments
www.ukba.co.uk
The FSB claim that many small companies are confused about how much tax they should be paying from next year, when VAT reverts to 15% from 17.5% on the 1st of January 2010.
"Companies will be suffocated by further red tape as a result of the change and will face crippling tax fines if they get their tax wrong." Said Stephen Alambritis of the FSB.
In April this year the government doubled the standard penalty for companies that make an error on VAT payments
www.ukba.co.uk
Sunday, 3 May 2009
Leading entrepreneurs have warned that the Chancellor's new 50% tax on those earning more than £150,000 could lead to an exodus of talent
"Higher taxes may be politically attractive in the short term, but I think that this could be a real hindrance to the next wave of UK entrepreneurs and international companies looking to invest," said Sir Richard Branson.
Michelle Mone, the lingerie tycoon, revealed that she was withdrawing her support for Labour and branded the forthcoming top rate a "disgrace" that would damage the economy.
The director of the Confederation of British Industry, Richard Lambert, said that he had already spoken to some businesses that were considering relocating because of the tax increase.
Source: newbusiness.co.uk
www.ukba.co.uk
Michelle Mone, the lingerie tycoon, revealed that she was withdrawing her support for Labour and branded the forthcoming top rate a "disgrace" that would damage the economy.
The director of the Confederation of British Industry, Richard Lambert, said that he had already spoken to some businesses that were considering relocating because of the tax increase.
Source: newbusiness.co.uk
www.ukba.co.uk
Thursday, 23 April 2009
Budget Summary - Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Read a summary report here.
Having acknowledged the depth of the recession, he hinted that the Budget measures would enable the UK economy to begin to grow 'by the end of the year'.
As always the timing of the changes needs to be carefully watched – some are immediate but some are delayed to 2010 and beyond.
Our summary focuses on the issues likely to affect you, your family and your business.
Main Budget proposals
:: Introduction of a 50% top rate of tax for those with income over £150,000 from 2010 and phased reduction of personal allowances for those with income over £100,000.
:: Increases in ISA limits from October this year for those aged over 50 and for everyone from April 2010.
:: Enhanced relief for trading losses extended by a further year.
:: Short term increase in capital allowances on most plant and machinery.
:: Extension of the furnished holiday lettings scheme to properties in the EEA but then the removal of the scheme completely from April 2010.
:: Names of deliberate tax defaulters to be published where default was tax in excess of £25,000.
Previous announcements
Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:
:: removal of the £12,000 'expensive car' limit for capital allowance purposes
:: availability of non-repayable tax credit on overseas dividends received by any individual
:: removal of tax charge for companies on overseas dividends
:: extension of HMRC compliance powers across all the taxes dealt with by HMRC.
For more details in the different areas the budget covered - click on the relevant link below:
Introduction
Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Personal Tax
Details of the changes to personal tax.
Corporate and Business Tax
Details of the changes to corporate and business tax.
Employment Issues
Details of the changes to employment issues.
Capital Taxes
Details of the changes to capital taxes.
VAT
Details of the changes to VAT.
HMRC Powers
Details of the changes to HMRC powers.
Other Matters
Details of Child Trust Fund, Charities: substantial donors, Landfill tax and the Business Payment Support Service.
Source: Faust Loveday Bell
www.ukba.co.uk
Having acknowledged the depth of the recession, he hinted that the Budget measures would enable the UK economy to begin to grow 'by the end of the year'.
As always the timing of the changes needs to be carefully watched – some are immediate but some are delayed to 2010 and beyond.
Our summary focuses on the issues likely to affect you, your family and your business.
Main Budget proposals
:: Introduction of a 50% top rate of tax for those with income over £150,000 from 2010 and phased reduction of personal allowances for those with income over £100,000.
:: Increases in ISA limits from October this year for those aged over 50 and for everyone from April 2010.
:: Enhanced relief for trading losses extended by a further year.
:: Short term increase in capital allowances on most plant and machinery.
:: Extension of the furnished holiday lettings scheme to properties in the EEA but then the removal of the scheme completely from April 2010.
:: Names of deliberate tax defaulters to be published where default was tax in excess of £25,000.
Previous announcements
Many of the changes detailed in this summary have been the subject of earlier announcements. Here is a reminder of some of the more important ones:
:: removal of the £12,000 'expensive car' limit for capital allowance purposes
:: availability of non-repayable tax credit on overseas dividends received by any individual
:: removal of tax charge for companies on overseas dividends
:: extension of HMRC compliance powers across all the taxes dealt with by HMRC.
For more details in the different areas the budget covered - click on the relevant link below:
Introduction
Alistair Darling presented his second Budget on Wednesday 22 April 2009.
Personal Tax
Details of the changes to personal tax.
Corporate and Business Tax
Details of the changes to corporate and business tax.
Employment Issues
Details of the changes to employment issues.
Capital Taxes
Details of the changes to capital taxes.
VAT
Details of the changes to VAT.
HMRC Powers
Details of the changes to HMRC powers.
Other Matters
Details of Child Trust Fund, Charities: substantial donors, Landfill tax and the Business Payment Support Service.
Source: Faust Loveday Bell
www.ukba.co.uk
Saturday, 18 April 2009
Cash-strapped small businesses are losing out on the chance to defer a potential £7.7bn of tax payments due to poor finance skills
....and a failure to seek out professional advice. New research for the AAT, the leading professional education and membership body for accounting staff, found that an unnecessarily complex tax regime and a lack of finance training is compounding the impact of the recession, at a time when this sector - considered the ‘backbone’ of the economy – needs to make every penny count.
Common mistakes which cost firms cash include incurring fines for late filing of accounts; failing to claim Business Rate Relief and ignorance of opportunities such as the ‘Time to Pay’ scheme, which allows those companies unable to pay their tax bill to spread payments.
Business rates are a major cost to SMEs per annum and rate relief could be worth up to £1200 per firm. Despite this, over £400m of Business Rates Relief goes unclaimed each year, in large part because firms are not aware of the opportunity. The scheme, introduced in 1990, closed on 1st April, further impacting on small businesses.
Read the full article here: http://www.aat.org.uk/about/content/item19416/
www.ukba.co.uk
Common mistakes which cost firms cash include incurring fines for late filing of accounts; failing to claim Business Rate Relief and ignorance of opportunities such as the ‘Time to Pay’ scheme, which allows those companies unable to pay their tax bill to spread payments.
Business rates are a major cost to SMEs per annum and rate relief could be worth up to £1200 per firm. Despite this, over £400m of Business Rates Relief goes unclaimed each year, in large part because firms are not aware of the opportunity. The scheme, introduced in 1990, closed on 1st April, further impacting on small businesses.
Read the full article here: http://www.aat.org.uk/about/content/item19416/
www.ukba.co.uk
Tuesday, 7 April 2009
Small employers urged - file online and get a £75 bonus
Small employers are being urged to file their 2008/09 Employer Annual Return online this year, and get a £75 tax-free payment in the process.
Employers with fewer than 50 employees can file on paper or online, but only those filing a valid online return will qualify for the £75 payment.
Those employers with 50 or more employees must file their 2008/09 return online, or face a penalty.
To file online, employers must first register with HMRC's "PAYE Online for Employers" service. It can take up to a week to get the Activation PIN after registering, so employers should not leave it until the last minute.
Agents, tax advisers or payroll bureaux can also file on behalf of employers. And small employers will still qualify for the £75 tax-free payment, even if an intermediary files online for them.
Employer Annual Returns are due by 19 May, or late-filing penalties will apply.
HMRC's Sue Williams said:
"We are accepting returns now, and would urge all employers to send them in as soon as they are ready, to avoid any last-minute rush."
Read more: http://nds.coi.gov.uk/content/detail.asp?NewsAreaID=2&ReleaseID=396367
www.ukba.co.uk
Employers with fewer than 50 employees can file on paper or online, but only those filing a valid online return will qualify for the £75 payment.
Those employers with 50 or more employees must file their 2008/09 return online, or face a penalty.
To file online, employers must first register with HMRC's "PAYE Online for Employers" service. It can take up to a week to get the Activation PIN after registering, so employers should not leave it until the last minute.
Agents, tax advisers or payroll bureaux can also file on behalf of employers. And small employers will still qualify for the £75 tax-free payment, even if an intermediary files online for them.
Employer Annual Returns are due by 19 May, or late-filing penalties will apply.
HMRC's Sue Williams said:
"We are accepting returns now, and would urge all employers to send them in as soon as they are ready, to avoid any last-minute rush."
Read more: http://nds.coi.gov.uk/content/detail.asp?NewsAreaID=2&ReleaseID=396367
www.ukba.co.uk
Friday, 6 March 2009
Tax doesn't have to be taxing
HMRC has released a series of online video guides to help small companies and start-ups with the complexities of the UK's tax system.
The guides, presented by Dan Snow, cover a variety of important tax topics - such as VAT, Corporation Tax, and PAYE.
The online guides also cover other areas such as the Construction Industry Scheme, importing and exporting, keeping accurate records, and things to consider when employing other people.
A new guide is also available alongside the videos - "Giving your business the best start with tax".
Dan Snow commented: "We've broken the information down into small video chunks, so that people can access exactly what they need to know. Hopefully this makes the new videos really useful for people and businesses."
Access them by clicking here.
The guides, presented by Dan Snow, cover a variety of important tax topics - such as VAT, Corporation Tax, and PAYE.
The online guides also cover other areas such as the Construction Industry Scheme, importing and exporting, keeping accurate records, and things to consider when employing other people.
A new guide is also available alongside the videos - "Giving your business the best start with tax".
Dan Snow commented: "We've broken the information down into small video chunks, so that people can access exactly what they need to know. Hopefully this makes the new videos really useful for people and businesses."
Access them by clicking here.
Sunday, 15 February 2009
Survive the Downturn - Think Cash
Extract from ICAEW report: 8 Ways To Survive The Downturn
Find out how managing cash flow and access to capital and funding can help you survive the downturn.
Managing cash flow and access to capital and funding are critical to all businesses – more so in difficult times.
It is important to keep updating your cash flow forecasts and examine your debt cycles, stock and overhead levels and working capital.
Be proactive
Be proactive in managing your cash. Put cash flow and financing on the agenda for every management meeting.
Consider what you can do to improve your sales in a declining market:
* Can you reduce your stock levels quickly to boost cash?
* How reliant are you on your major customers and suppliers?
* How robust are your credit control procedures?
* If you are ’cash rich‘ do you need to conserve this cash or could you use surplus cash for the longer term benefit of the business?
Minimise your tax liabilities
It’s more important than ever to minimise your tax liabilities where possible and ensure that you are paying the correct amount of tax. Make sure all capital allowances and expenses have been claimed. Are you taking maximum benefit for all losses?
If you have difficulties making your tax payments, talk to HMRC before they become due; it may be possible to agree repayment deals without suffering any surcharges for late payment.
Talk to your financiers
It is vital that you talk to your current financiers before you get into difficulties. If you delay telling your finance providers about changes in your circumstances, they will lose trust in your future forecasts.
Source ICAEW - full report can be downloaded by clicking here.
Find out how managing cash flow and access to capital and funding can help you survive the downturn.
Managing cash flow and access to capital and funding are critical to all businesses – more so in difficult times.
It is important to keep updating your cash flow forecasts and examine your debt cycles, stock and overhead levels and working capital.
Be proactive
Be proactive in managing your cash. Put cash flow and financing on the agenda for every management meeting.
Consider what you can do to improve your sales in a declining market:
* Can you reduce your stock levels quickly to boost cash?
* How reliant are you on your major customers and suppliers?
* How robust are your credit control procedures?
* If you are ’cash rich‘ do you need to conserve this cash or could you use surplus cash for the longer term benefit of the business?
Minimise your tax liabilities
It’s more important than ever to minimise your tax liabilities where possible and ensure that you are paying the correct amount of tax. Make sure all capital allowances and expenses have been claimed. Are you taking maximum benefit for all losses?
If you have difficulties making your tax payments, talk to HMRC before they become due; it may be possible to agree repayment deals without suffering any surcharges for late payment.
Talk to your financiers
It is vital that you talk to your current financiers before you get into difficulties. If you delay telling your finance providers about changes in your circumstances, they will lose trust in your future forecasts.
Source ICAEW - full report can be downloaded by clicking here.
Friday, 23 January 2009
How to defer tax!
Some 20,000 businesses who contacted the Business Payment Support Service have between them arranged to defer tax of over £350m. We provide some practical pointers for using this new HMRC service.
A recent HMRC press release gave some information about the activities of the Business Payment Support Service (BPSS) since its launch in November 2008. By 14 January, 20,000 businesses who contacted the BPSS have delayed paying a total of more than £350m tax.
The BPSS is designed to help people who are struggling to pay their tax on time, by setting up suitable payment arrangements. The taxes it can deal with include income tax, corporation tax, PAYE, National Insurance contributions and VAT. The phone number is 0845 302 1435 and it is open seven days a week (8am to 8pm Monday to Friday, 8am to 4pm at weekends). Further information is available on the BPSS page of the HMRC website.
The following points may be useful:
Although the service is aimed primarily at businesses, it can be used by any taxpayer.
Once payment terms are agreed, HMRC will not charge late payment surcharges on payments included in the arrangement, although interest will continue to be charged where it applies.
The BPSS can only deal with new requests for time to pay, not with existing debts where there the taxpayer is already in contact with HMRC.
HMRC will have three main questions for callers:
• What do you need to pay at the end of the month?
• Why can't you pay it then?
• When will you be able to pay?
In the majority of cases, HMRC will be able to make a decision in around 10 minutes.
For larger liabilities or more complicated cases, HMRC may need to have a longer discussion or request more information.
HMRC ask callers to have the following information to hand:
• Your tax reference number.
• Details of the tax that you have, or will have, trouble paying.
• Basic details of your businesses income and outgoings.
The Tax Faculty also suggests that:
• Non-business taxpayers should have details of their income and outgoings.
• All callers should consider what sort of payment terms they could sensibly manage.
http://www.ukba.co.uk
A recent HMRC press release gave some information about the activities of the Business Payment Support Service (BPSS) since its launch in November 2008. By 14 January, 20,000 businesses who contacted the BPSS have delayed paying a total of more than £350m tax.
The BPSS is designed to help people who are struggling to pay their tax on time, by setting up suitable payment arrangements. The taxes it can deal with include income tax, corporation tax, PAYE, National Insurance contributions and VAT. The phone number is 0845 302 1435 and it is open seven days a week (8am to 8pm Monday to Friday, 8am to 4pm at weekends). Further information is available on the BPSS page of the HMRC website.
The following points may be useful:
Although the service is aimed primarily at businesses, it can be used by any taxpayer.
Once payment terms are agreed, HMRC will not charge late payment surcharges on payments included in the arrangement, although interest will continue to be charged where it applies.
The BPSS can only deal with new requests for time to pay, not with existing debts where there the taxpayer is already in contact with HMRC.
HMRC will have three main questions for callers:
• What do you need to pay at the end of the month?
• Why can't you pay it then?
• When will you be able to pay?
In the majority of cases, HMRC will be able to make a decision in around 10 minutes.
For larger liabilities or more complicated cases, HMRC may need to have a longer discussion or request more information.
HMRC ask callers to have the following information to hand:
• Your tax reference number.
• Details of the tax that you have, or will have, trouble paying.
• Basic details of your businesses income and outgoings.
The Tax Faculty also suggests that:
• Non-business taxpayers should have details of their income and outgoings.
• All callers should consider what sort of payment terms they could sensibly manage.
http://www.ukba.co.uk
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