Following this year’s Pre-Budget Report, the Chancellor has confirmed that the 15 percent VAT holiday will end on 1 January 2010, when the rate reverts back to 17.5 percent. General points The normal rule is that all sales invoices dated on or after 1 January 2010 must use the new VAT rate of 17.5 percent. […]

If you are going to be out celebrating on New Year’s Eve or indeed if your business will be operating over midnight, you will be glad to hear that the government has announced a relaxation of the VAT rules. Pubs, clubs, restaurants and other retail businesses remaining open past midnight on New Year’s Eve will […]

HMRC have announced significant changes to the Intrastat thresholds. Intrastat is used to report the movement of goods within the EU over certain thresholds. Those traders with an annual intra-EU trade in goods exceeding the exemption thresholds are required to provide monthly statistical returns (Intrastat Supplementary declarations). From 1 January 2010, subject to parliamentary approval: […]

Under existing rules for Statutory Sick Pay (SSP) employees can self-certify for the first seven days of their illness and employers cannot ask for medical evidence during this period. There has been no change to this requirement. If employees are ill for more than seven days, employers can ask for reasonable evidence that they are […]

VAT Standard rate of VAT As previously announced the temporary reduction in the standard rate of VAT to 15% will end on 31 December 2009. The Pre-Budget Report confirms arrangements to smooth the transition for businesses back to the 17.5% standard rate. There will be a ‘period of grace’ for businesses trading across the midnight […]

Chancellor Alistair Darling presented his Pre-Budget Report on Wednesday 9 December 2009. Mr Darling spoke of the Report taking place at ‘a critical time for our economy’ and that the task was ‘to secure the recovery and promote long-term growth’. This summary concentrates on the main tax measures which are being introduced: a 1% increase in […]

Personal Tax Allowances and rates There will be no increase in the under 65 personal allowance for 2010/11 which will remain at the current £6,475. The basic rate limit will also be maintained at the current £37,400. Therefore an individual will continue to pay 40% tax rather than the basic rate of 20% when their […]

Other Business Measures The government has announced the following measures. An extension to the temporary exemption from business rates for empty properties. For 2009/10 properties with a rateable value of up to £15,000 are exempt. The relief will be extended to 2010/11 for empty commercial properties with a rateable value of up to £18,000. An […]

Miscellaneous Spotlights on avoidance HMRC’s internet publication, ‘Spotlights’, which highlights avoidance schemes, will be expanded to include more general ‘buyer beware’ messages. These will provide taxpayers with an indication of the type of arrangements to avoid. It will continue to highlight specific avoidance schemes that in HMRC’s view are ineffective or have unintended adverse consequences […]

Capital Taxes Inheritance tax (IHT) nil rate band The nil rate band for 2010/11 will be frozen at the current level of £325,000. Comment The original intention of the government was to increase the nil rate band to £350,000. IHT avoidance Legislation, effective from 9 December 2009, will be introduced in Finance Bill 2010 to […]