Dean Statham

Newsletter June 2009

Our newsletter this month includes articles on the new car scrappage scheme, P11D deadline reminder, announcement of a new tax amnesty and finally notice of changes to car tax benefits.

The next issue of our newsletter will be published on 7 July 2009.

Contractors Tax Solution

Just a reminder that we still have what we believe is the best solution in the market place for consultants & contractors, with a gross income of £50k plus, in managing their administration & maximising their net income.

Additionally, many businesses have used our solution in their quest to turn fixed costs into variable to assist in the present economic circumstances.

Similarly where new personnel are being recruited at a package of £50k plus, our solution should be considered.

If this is of potential interest, Phill Dann will be delighted to discuss with you. Contact him on 01782 614618 or 07930 325206 or phill.dann@dsonline.co.uk

Back to top  

HOW TAX EFFICIENT ARE YOUR INVESTMENTS?

So what difference does it make whether your investments are tax efficient or not? Is it something you think about or ever take advice on? Here is an example of what tax efficiency can mean. It is extreme but perhaps might make you think about where your hard earned and mostly taxed savings are!

Take £1 and assume it doubles every year in value. What do you think it would be worth in 20 years time?

£1,048,576!

What do you think it would be worth if you had to pay 20% tax, (basic rate tax) on this £1?

£127,482

What do you think it would be worth if you had to pay 40% tax, (higher rate tax) on this £1?

£12,089

Extreme we know, but take advice from us using our independent advisory service and make sure your money works as hard for you as it possibly can.

Call Carol or Sue for a chat on 01782 614618 or email carol.ogden@dsonline.co.uk or sue.haycock@dsonline.co.uk .

Back to top  

Furnished Holiday Lettings - 31st July Deadline

As you will have noted from last month's newsletter, there is an article regarding the extension of the favorable tax regulations relating to holiday lets, from just those properties in the UK to those elsewhere within the European Economic Area (EEA) .

To qualify under the rules : -

• the business must be carried on commercially, and with a view to a profit;

• Availability: the property must be available for commercial letting as holiday accommodation to the public for at least 140 days during the relevant 12 month period;

• Letting: the property must be commercially let as holiday accommodation to members of the public for at least 70 days during the relevant 12 month period. A letting for a period of longer term occupation is not a letting as holiday accommodation for the purposes of the letting condition. (A period of longer term occupation is a continuous period of more than 31 days during which the accommodation is let to the same person.)

Some of the possible claims must be made by 31^st July 2009.

If you have a property that you believe may qualify under the above criteria & has rental losses or capital losses, please call either your usual contact, or David Talbot on 01782 614618 or at dave.talbot@dsonline.co.uk

Back to top  

Help in the recession

Recent research shows that business owners want more support from their accountant to help them beat the recession. Therefore we have produced this checklist to identify the proactive support and guidance we can provide to help you through these difficult times.

If there is anything here that you would like to discuss with us, please speak to or email your usual Dean Statham contact and we will be happy to assist you.

Back to top  

Car scrappage scheme starts 18 May 2009

In exchange for scrapping your old vehicle and buying a new one the Government and most car manufacturers will contribute a total of £2,000 towards the purchase of a new vehicle - the scheme will run from 18 May 2009

The scheme will be available to the first 300,000 eligible claimants or until 28 February 2010, whichever is sooner.

To qualify the vehicle you are trading in must:

• Be a car or small van weighing up to 3,500 kilograms (kg)
• Have been first registered in the UK on or before 31 August 1999
• Either have a current tax disc, or have a current tax disc and a current Hackney Carriage Licence, or an MOT certificate which expired no earlier than 14 days before the date of the contract between the Purchaser and the Dealer for the acquisition of title to the vehicle by the Purchaser
• Have been registered to you continuously for 12 calendar months before the order date of the new vehicle
• Have a UK address on the registration certificate (V5C) in the same name as the new vehicle
• Have a current MOT test certificate before date of order for the new vehicle

The new vehicle you want to buy must be:

• A car or small van weighing up to 3,500 kg
• First registered in the UK on or after 18 May 2009
• Declared new at first registration in the UK with no former keepers

The allowance is funded by a £1,000 subsidy from the Department for Business, Enterprise and Regulatory Reform (BERR) and a further £1,000 discount paid for by the manufacturer. 

In most cases, VAT cannot be reclaimed on a car purchase even by VAT registered businesses so the discount will only have the effect of reducing the car's purchase price. However, certain VAT registered customers may have to reduce their input tax in respect of the manufacturers' discount. This will only be the case where VAT can be reclaimed on the purchase of a car such as for the purchase of a taxi or a driving instructor's car.

If you are buying a business vehicle under this scheme please note the following points regarding a future claim for capital allowances.

• The £2000 discount reduces the capital cost of the vehicle.
• The vehicle you part exchange, or scrap, is considered to be written off for tax purposes and the £2000 discount will not be treated as taxable proceeds of sale.

Click here for a call back from our office regarding this article.      Back to top  

P11D filing deadline approaches

Employers should be aware that the filing dates for 2008-9 P11D and P11D(b) is 6 July 2009.  Those employers who filed a paper P11D(b) form last year are currently being sent new paper forms and a payslip.

All relevant businesses should receive these forms by 15 June 2009.

Businesses who submitted online forms last year are being sent a payslip and an online reminder to file the form before the deadline.

This year, a new quality standard for the P11D forms has been introduced.  This means that paper forms that are not properly completed will be returned and online submissions must be fully complete before submission is possible. The quality standards are designed to check that the employer reference is included, that employees' names and National Insurance numbers are completed and that the list price of any car provided to an employee is shown on the form etc.

Businesses filing online can file the forms using commercial payroll software or HMRC’s online facility.

If you need help completing individual forms, or filing returns, please contact us soon as the deadline is fast approaching.

Click here for a call back from our office regarding this article.      Back to top  

Updates from HMRC

Tax Amnesty

HMRC have announced a second offshore tax amnesty for holders of overseas bank accounts. It will be referred to as the New Disclosure Opportunity and will close March 2010.

Text messages from HMRC

HMRC are currently exploring new ways of making contact with taxpayers.  This includes HMRC leaving an automated voicemail or sending a text message.  Both of these methods are currently only being used to ask taxpayers to call HMRC rather than to provide any other specific advice or information.

If you receive an automated voicemail message or a text message claiming to be from HMRC asking you to contact them use the number for your local office or the telephone numbers on the official HMRC web site at www.hmrc.gov.uk.

Click here for a call back from our office regarding this article.      Back to top  

Car benefit changes

A number of changes to the tax calculations for company cars have been announced over the last few months and during the Budget. 

For the current 2009/10 tax year please note the following changes:

• Disabled drivers who are required to drive an automatic car as their company car will be allowed to use the list price of an equivalent manual car when calculating the company car tax benefit.
• The requirement for a new P46 (car) form is withdrawn where an employee’s car is returned and replaced with another car.

From 2010/11 the lower threshold for CO2 emissions figure will be reduced to 130g/km (from 135g/km).

From 2011/12 the lower threshold for CO2 emissions figure will be reduced to 125g/km.  In addition, the current £80,000 list price cap used to calculate the company car tax will be abolished and current discounts given to cars using alternative fuels (such as bio-fuels and bioethanol) will be removed.

Click here for a call back from our office regarding this article.      Back to top  

Tax Diary June/July 2009

1 June 2009 - Due date for corporation tax due for the year ended 31 August 2008.

19 June 2009 - PAYE and NIC deductions due for month ended 5 June 2009. (If you pay your tax electronically the due date is 22 June 2009)

19 June 2009 - Filing deadline for the CIS300 monthly return for the month ended 5 June 2009.

19 June 2009 - CIS tax deducted for the month ended 5 June 2009 is payable by today.

1 July 2009 - Due date for corporation tax due for the year ended 30 September 2008.

6 July 2009 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NIC's.

6 July 2009 - Deadline for submission of new Tax Credit application for 2009-2010, if you want to secure a full years claim.

19 July 2009 - Pay Class 1A NIC's (by the 22 July 2009 if paid electronically).

19 July 2009 - PAYE and NIC deductions due for month ended 5 July 2009. (If you pay your tax electronically the due date is 22 July 2009)

19 July 2009 - Filing deadline for the CIS300 monthly return for the month ended 5 July 2009.

19 July 2009 - CIS tax deducted for the month ended 5 July 2009 is payable by today.

Click here for a call back from our office regarding this article.      Back to top  

DISCLAIMER - PLEASE NOTE: The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Dean Statham,
29 King Street, Newcastle, Staffs, ST5 1ER.
Tel: 01782 614618  Fax: 01782 717287.
Web: www.dsonline.co.uk.

Dean Statham is a limited liability partnership, registered for VAT under reference 812 0016 96. Partners in the firm are members of the Institute of Chartered Accountants in England and Wales (ICAEW). This body has its headquarters in the UK and its rules of professional conduct can be obtained from its web site.

Dean Statham are authorised to act as statutory auditors by the ICAEW.