Latest News - September 2008
Gift Aid Transitional Relief
Charities are entitled to claim a tax repayment in respect of gift aid donations made by individuals. The tax repayment was 22% until 5 April 2008 being the basic rate of tax on payments made through gift aid. As you are no doubt aware the basic rate of tax was reduced to 20% from the beginning of this tax year. In order to compensate charities for this drop in income the government has introduced Gift Aid Transitional Relief which tops up the tax repayment due to the charity until 5 April 2011.
Reducing Employers’ Administration
The Department for Business, Enterprise & Regulatory Reform (BERR), has launched a campaign advising employers on how they can reduce the amount of administration involved in dealing with their employment law obligations. The BERR believe that some employers are routinely over-complying or duplicating work.
NMW Changes
HMRC have announced that some changes to penalties and calculation of arrears of National Minimum Wage (NMW) payments have been delayed to April 2009. The delay is apparently due to the slower than expected passage through parliament of the Employment Bill.
Salary Sacrifice Arrangements
Salary sacrifice is a complex area which should not be overlooked. HMRC have added some questions and answers on this difficult subject to their website.
Penalties
HMRC have published a leaflet on the new HMRC penalties warning tax payers to make sure that their records are sufficient to comply with the new penalty regime. The new legislation covers returns and other documents issued for periods commencing from 1 April 2008 which are due for submission from 1 April 2009.
‘Paper’ Tax Return Deadline Looming
HMRC are reminding taxpayers who wish to complete paper self assessment tax returns that the new 31 October 2008 deadline is ‘only weeks away’.
Licence to Bring in Migrant Workers
The UK Border Agency has started a television campaign aimed at employers to help prepare them for the introduction of the government's new rules for skilled migrant workers which become effective from November 2008.
VAT Treatment of Charity Challenge Events
HMRC have issued revised guidance on Charity Challenge Events, including those that qualify for the VAT Charity Fundraising Exemption.
Stamp Duty Threshold Raised in a Bid to Help Buyers
The government has announced a package of measures to help boost a struggling property market, including raising the stamp duty land tax threshold by £50,000. Brought in for a twelve month period from 3rd September 2008 to 3rd September 2009, a home must now sell for £175,000 before stamp duty is paid.
