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 introduction of a single rate of CGT of 18%. The changes take effect from 6 April 2008. […]

The introduction of the proposed legislation on ‘income shifting’ has been delayed until April 2009. You may well remember that HMRC proposed to legislate following their defeat in the Arctic Systems case. This involved a husband and wife who owned a company 50/50 and, broadly, took the profits out by way of dividends, again 50/50. […]

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. The final date for payment of PAYE, national insurance contributions, construction industry […]

A reduced 5% VAT rate for ‘over the counter’ sales of smoking cessation products was introduced from 1 July 2007 for a period of one year only. The government has announced that the 5% reduced rate will continue to apply. Smoking cessation products dispensed on prescription continue to be zero rated. Internet links: HMRC Budget […]

HMRC have issued some additional guidance on filing in year forms online. The guidance concerns online submission of forms P45 and P46. HMRC have advised that they will be making changes to their systems which will mean that employers will be unable to submit these forms online between 2 and 8 of April 2008 and […]

The National Minimum Wage will rise to £5.73 (£5.52) an hour in October 2008. The hourly rate for 18 to 21 year olds will increase to £4.77 (£4.60) and for 16 and 17 year olds to £3.53 (£3.40) an hour. HMRC are responsible for enforcing the NMW and have an ongoing programme of targeted enforcement. […]