You may well remember that the Arctic Systems case involved a husband and wife who owned a company 50/50 and, broadly, took the profits out by way of dividends, again 50/50. HMRC attempted to tax the dividends solely on the husband, as he was performing most of the work which generated the profits of the […]

A new Employment Bill will, if enacted, impose tougher penalties on employers and dispute resolution procedures will be simplified. The overall effect of the Employment Bill is to strengthen and clarify key aspects of employment law. It was introduced and had its first reading on 6 December 2007 with the aim of receiving Royal Assent […]

In November’s enews we reported on proposed changes to the capital allowances system and HMRC have now issued a 91 page document including draft legislation. In a written statement the Financial Secretary to the Treasury, Jane Kennedy, said: ‘The government announced a major package of reforms to the business tax system in Budget 2007. These […]

Chancellor Alistair Darling announced in his Pre-Budget speech a change to the way in which the inheritance tax (IHT) nil rate band of £300,000 can be used for married couples and civil partners. Before the introduction of this change, where an individual died and left some or all of their property to their spouse or […]

According to a government report, cuts in ‘red tape’ are saving UK businesses and third sector organisations more than £800 million per year. The report, ‘Delivering Simplification Plans’ outlines more than 280 government initiatives to tackle ‘red tape’. The report is wide ranging and covers almost 20 departments and agencies. The government aims to hit […]

To reflect the increases in fuel prices, HMRC have issued new advisory fuel rates for company car drivers.  These take effect for all journeys undertaken from 1 January 2008 so employers wishing to use the new rates should advise affected employees and update any expense forms as soon as possible. Engine size Petrol Diesel LPG […]

The proposed changes announced in the Pre-Budget Report to the capital gains tax (CGT) system are radical. Taper relief for CGT will be abolished for disposals on or after 6 April 2008. Other changes to the CGT system include introducing a flat rate of CGT of 18% and abolishing indexation, an allowance for inflation. Last […]