Business Alert - February
VAT refunds. CGT and Non-doms reforms. New tax guidance on sending staff home by taxi.
21.02.2008
VAT refunds. CGT and Non-doms reforms. New tax guidance on sending staff home by taxi.
Click on the links below to go to straight to the story:
- Sending staff home by taxi
- Help with online filing
- Residence and domicile - the proposals
- Capital gains tax reform
- VAT refunds
- Tax Calendar 2008-2009
When staff work late and are sent home by taxi with the employer meeting the cost this will frequently be a taxable benefit for the staff involved. HMRC has published a new section to their Employment Income Manual, which sets out the restrictive conditions under which the benefit will not be taxable on the staff involved. There is also new guidance on the provision of travel cards to staff who can use them for private travel in addition to business journeys, and the provision of Oyster Cards for business travel. The Employment Income Manual is available on HMRC’s website.
From April 2009, all employers with more than 49 staff will be required to file certain PAYE forms online during the tax year, in addition to filing their end of year return online. To help employers prepare for this change, (which will affect small employer’s form 2011) HMRC are running free online filing workshops at which employers can raise practical queries about the online process for PAYE. Details of these workshops are available on the HMRC website at http://www.hmrc.gov.uk/payeonline/workshops.htm
RESIDENCE AND DOMICILE – THE PROPOSALS
The draft legislation which will implement the Government’s proposals for changes to the taxation of non domiciled individuals has now been released for comment. The proposals, which will also amend rules determining whether regular visitors to the UK are resident here for tax purposes, have been widely criticised, and will have a significant impact on many taxpayers if implemented as planned. For a detailed fact sheet on this topic, click here.
The proposals for the simplification of Capital Gains Tax announced in the pre Budget Report in October 2007 are to be carried through. The draft legislation to implement the changes has been released and makes the changes that Mr Darling proposed in full. There are also some consequential changes to the treatment of assets which are the subject of an interspouse gift (or a gift between civil partners). In addition, the release of the draft legislation has been accompanied by the announcement that in response to the representations made by small business owners, the Chancellor intends to bring forward a relief that will reduce the tax paid by those selling their businesses. This is to be called Entrepreneur’s Relief. For a detailed fact sheet on this topic, click here.
HMRC has lost an appeal in the House of Lords concerning the implementation in 1997 of a three year cap on refunds of VAT. There have been prior challenges regarding the legality of the introduction of the cap without prior warning and without an appropriate transitional period. The House of Lords has ruled in favour of two appellants regarding their claims to VAT dating back prior to the imposition of the cap, and it is now widely expected that HMRC will be forced to make substantial repayments to businesses. For more VAT news, click here.
The year in tax deadlines. Click here to download a copy.
Business Alert - February (1) 2008
