Business Alert
Increased personal allowance and advisory fuel only rates. CIS modifications.
23.06.2008
Increased personal allowance and advisory fuel only rates. CIS modifications.
Business Alert June 2008 - Click on the links below:
- Construction Industry Scheme Modifications
- Increased Personal Allowance
- VAT Law Rewrite Complete
- Advisory Fuel Only Rates
Construction Industry Scheme Modifications
Regulations have been released to change the construction industry compliance requirements by introducing a de minimis of £100. The effect of this is to permit contractors to meet the compliance conditions even where there have been late payments of tax, provided the amounts paid late do not exceed £100. This will alleviate the position for contractors who have paid tax very slightly late (but within the tolerance allowed by the compliance rules) and incurred a small interest charge which has remained unpaid for some time. This would cause the contractor to lose gross payment status, but the new rules allow this to be ignored.
The basic personal allowance has been increased by £600 over the inflation increase that would otherwise have taken effect to compensate lower earners for the abolition of the 10% rate of income tax. However, the effect of this change will not be felt for some months yet, as the proposal will result in employers adopting the new personal allowance in September 2008. The effect of the change can then be backdated to the start of the tax year. Higher rate taxpayers are unaffected by this change, as the upper limit of the basic rate band has been correspondingly reduced.
Work started some 12 months ago to rewrite Schedule 10 of the VAT Act 1994. The relevant legislation was in Schedule 10 of the Act, and the work is now complete, as evidenced by the release of the rewritten legislation as the VAT (Buildings and Land) Order 2008. This is effectively a new Schedule 10 to the VAT Act 1994. Notice 742A has also been rewritten to reflect the new legislation.
The HMRC advisory fuel rates have been increased to reflect fuel price inflation since they were last increased in January 2008. The new rates are based on the price of 114.8p for unleaded fuel, and 127.2 for diesel. The new rates are:
|
|
Unleaded | Diesel | LPG |
| Up to 1400cc | 12p | 13p | 7p |
| 1400 - 2000cc | 15p | 13p | 9p |
| Over 2000cc | 21p | 17p | 13p |
