|
|
|
 |
|
| |
Business Alert: 24 July 2007 |
|
|
| |
Welcome to Moore Stephens’ Business Alert Service, designed to help you keep up-to-date with business and tax legislation. The service provides details of key changes, issues and opportunities, and includes suggested action and links to more information.
To receive these Business Alerts automatically, email businessalerts@moorestephens.com.
NEW VAT INVOICING RULES
Businesses will need to be aware of changes to the rules regarding the content of VAT invoices from 1 October 2007. The changes are explained in VAT Information sheet 10/07 which has been issued recently. Many businesses will not have to change their procedures, as they already voluntarily comply with the rules, but businesses will need to be aware of the change in the law. As is normal, HMRC will not issue penalties for those breaching the new rules in the twelve months following the date of change, so businesses have at least a year to implement changes. Those making supplies under second hand margin schemes and the Tour Operators Margin Scheme will need to change their invoicing procedure, as will many businesses making cross border supplies within the EC.
PENSION ARRANGEMENTS - WHO IS RESPONSIBLE FOR TAX?
When someone sets up an individual pension arrangement rather than joining an existing scheme, they may be responsible for the administrative functions of the scheme which are necessary under tax law. Although this will not impose a significant burden until the scheme is wound up, having paid all of the benefits, if a tax change does arise at another time, it may be the member who is responsible for contacting HMRC to declare and pay the tax. HMRC are asking those who have set up separate pension arrangements to contact their pension providers to establish who is the scheme administrator. There is information available form HMRC about what the responsibilities of scheme administrators are.
INCREASED INTEREST RATES - CORPORATION TAX ONLY
The new rates of interest apply to corporation tax due by quarterly instalments, and underpaid instalments will attract an interest charge at 6.75% from 16 July. There is also a new rate applying to overpaid instalments and corporation tax not due by instalments which is paid early. This will attract a supplement of 5.5% from the same date. Rates of interest on other taxes remain unchanged.
TAX AND SMALL PENSIONS
HMRC have publicised the fact that some small pensions are not being correctly taxed, as those paying the pensions have been operating under a redundant agreement. Pensioners in receipt of small pensions may have a small tax liability on that pensions, and from April 2008, the problem will be resolved. HMRC will be in touch with affected pensioners to establish whether any tax is owing, and if this is so, will collect the tax through an adjustment to the pensioner’s code notice in 2008-09.
TOBACCO SALES - INCREASED AGE LIMIT
The Department of Health is now publicising the increased legal minimum age for sales of tobacco products. From 1 October this will increase to 18. Retailers breaching the law will risk prosecution and a fine of up to £2,500.
We believe the information in this Business Alert to be correct at the time it was sent, but cannot accept any responsibility for any loss occasioned to any person as a result of action or refraining from action as a result of any item herein.
|
|
|
| |
SEARCH |
| |
|
|
|
|
|