Latest Accountancy News - May 2009
Personal Tax Changes
The Chancellor has not only brought forward proposals which were to take place in 2011, he has also made changes to his original announcements.
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Restricted Tax Relief on Pension Contributions
Pension contributions made by an individual are usually paid net of basic rate tax. Where the individual is a higher rate taxpayer further relief is due which significantly reduces the net cost of the contribution.
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Enhanced Relief for Trading Losses
Under current rules businesses already have a number of mechanisms to relieve trading losses against other income including past trading profits.
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Capital Allowances on Plant and Machinery
Additional capital allowances are to be available for expenditure incurred by a business in the 12 month period (starting 1 April 2009 for companies and 6 April 2009 for individuals and partnerships).
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Standard Rate VAT
The standard rate of VAT was reduced from 17.5% to 15% for the 13 month period 1 December 2008 to 31 December 2009. HMRC have confirmed that the standard rate of VAT will revert to 17.5% from 1 January 2010.
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VAT System for Cross-Border Trading
A package of measures is being introduced to simplify and modernise the VAT system for cross-border trading and to counter fraud across the EU.
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Bradford & Bingley Position of Former Shareholders
As you are no doubt aware, shares in Bradford & Bingley plc were taken into public ownership last year. HMRC have issued guidance relevant to former shareholders and employees who were members of employee share schemes.
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Change of HMRC Bank Account Details
HMRC bank account details for paying self employed Class 2 and voluntary Class 3 National Insurance Contributions have changed. HMRC have advised that individuals will need to use the new account details when making a payment.
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Businesses given more Time to Pay Business Rates
Alistair Darling made a late change to the impact of business rate rises which were due to take effect in England from 1 April 2009.
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