The budget 2007 was presented by Gordon Brown on 21st March.
Headline grabbing tax cuts but hidden in the detail a number of new provisions which will have a significant impact on business and personal wealth.
Corporation tax is cut for big companies (from 30% to 28%) but is set to increase for small companies increasing by 1% per year until it reaches 22% from 1 April 2009.
Capital Allowances reformed: the 25% rate for plant and machinery is to decrease to 20% from 2008/09 and fixtures integral to a building will also be fixed at 10% from that year.
The 50% rate for small enterprises is extended a further 12 months.
Industrial Buildings allowance will be phased out by 2010/11.
VAT registration threshold is increased to £64,000 from 1st April 2007 (de-registration threshold £62,000). Please keep a continual eye on your turnover over the last 12 months of trading to see if you are nearing this threshold to avoid the complications of late VAT registration.
For individuals the basic rate of income tax will be reduced from 22% to 20% from 6th April 2008 (but the 10% rate on the first couple of thousand of taxable income disappears from that date).
New tax filing dates will be implemented for 2007/08. Paper returns will have to be filed by
31st October.
We will continue to file client's returns online, wherever possible, and the deadline for this will remain at 31st January.
Personal Allowances increases on 6th April 2007 to £5,225 Primary Threshold for N.I becomes £100 per week. (So on earnings of up to £100 per week as sole income you will pay no tax or NI.)
From 6th April 2007 New CIS replaces the current system. Main Changes are:
Still available for the current and following two years - amounts per year as follows:
After this, online filing becomes compulsory.
HMRC have announced two changes to their procedures for administering PAYE, both of these to make the system more efficient. The plan is to update PAYE codes as soon as information is sent in on Forms P11D or P46(Car). They will no longer wait until the previous year's underpayment has been calculated. Also employees with more than one employment will have their pay and tax details brought together sooner so that the overall tax position for the year can be calculated and checked without delay.
Dividend Vouchers and Interest Certificates, Forms P45/P60 and other information relating to your 2007 tax return will be flooding in shortly. Get a file or an envelope and when you have collected everything together send it all to us.
Download our check-list here.
We are running a series of workshops in association with the Priory Business Centre, Longden Road, Shrewsbury.
Running from 4.30pm until 6.30pm, the workshops will be held on the following dates and cover various aspects of business.
| Wed, 18th April 2007
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Exceed customer's expectations | |
| Tue, 22nd May 2007
|
Successfully managing business | |
| Tue, 5th June 2007
|
Good people matter
|
|
| Tue, 3rd July
|
Rewarding business development |
Workshops will be hands-on and focused on the needs of the group. Call 01743 363202 now.
The Course will be led by Nigel Hinton & Sue Whittles who set up her training and consultancy business in May 1992. Her previous careers include teaching in secondary and further education and work in both the retail and hospitality industries.
New guidance from HMRC has clarified the allowances where expenditure has a 'duality of purpose'.
Where a room is used for business only a proportion of household costs can be claimed based on the part of the home this represents compared to the whole home (e.g. if 1 room out of 8 then 1/8th of household costs).
If the above room is used for part of the time for non business purposes (an office that children use in the evenings for computer games) then the 1/8th would have to be reduced according to the amount of time it is used for something other than business.
If a part of a room is used for business purposes for some of the time then costs must be allocated first on space (e.g. 25% of 1 room out of 8) then on use (but you cannot claim anything for any time any part of the room is used for purposes other than business (e.g. 20% of time used for business only, 20% of time used for both private and business & 60% private use only) can only claim for the 20% business use only time.
As of 1st January 2007 all business websites must include more details of the business:
<<>>If you own property abroad and do not have a valid will drawn up in that country then you may lose the property under local intestacy rules. >The fact you have a valid UK will may be of little interest to the foreign tax authorities.
February was a good month for our exam students with Natalya passing the final part of her ACCA professional exams and Bonnie is now qualified AAT.
Fionna Simmonds has joined us as a part-time telephonist / receptionist and brings energy and enthusiasm from the Antipodes to this important position.
Jan Hollis has joined us to develop the services of Darwin HR. This division offers employers support in the important area of Human Resources. We offer an initial consultation at a fixed cost and also an ongoing service with an annual fee based on the number of employees. This service can also be included alongside our payroll packages.
Contact Jan Hollis on
01743 363202
Following the late delivery of many 2005/06 client books (causing us to incur staff overtime pay and additional overheads because of having to work until 8 pm or later most evenings and all through most weekends in January) we have reluctantly decided to impose a deadline, for books to be delivered to us, of 6 months after the accounting date (year end date).
We will be implementing a system of issuing regular reminder letters to clients, following their year end, and surcharges of 25% or 50% of normal fees may well be imposed if books are received significantly after the six month deadline.
The main beneficiary of the increase in house prices looks like being the Chancellor of the Exchequer. He is likely to grab 40% of your estate if you have not organised your affairs in a way that reduces Inheritance Tax.
Working with Roy Munn of Darwin Financial Management Ltd we have come up with a series of IHT saving strategies that are straight forward and easy to implement but will mean that the Chancellor is not the main beneficiary of your estate.
You may have heard of Equity Release which may be an option for some people. For a fee of £197 we are able to prepare a report on its suitability for you.
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