Wildaxe Bullets

Life is great - the tax return season is now over and we can breathe again - at least for a little while. In the meantime, you might be interested in the following:


NEWS UPDATE

Changes to Fuel Rates from 1 January 2008

A reminder that from 1 January 2008 the Revenue have published new mileage rates that company car users can use to calculate the fuel cost of running their vehicles for private purposes. If this private element is repaid to employers the employees will avoid the penal car fuel benefit charge.

The new rates are:

Engine size:

1400cc or less: petrol 11p, diesel 11p, LPG 7p.
1401cc to 2000cc: petrol 13p, diesel 11p, LPG 8p.
Over 2000cc: petrol 19p, diesel 14p, LPG 11p.

VAT

Employers can also use these rates to calculate the VAT input tax on fuel included in staff mileage claims - employers will need to retain fuel receipts from staff to prove the fuel was purchased. (Remember: it is unlikely that staff will have receipts that exactly match the fuel element on their claim forms. Receipts should cover the same time period and be sufficient to cover the VAT claimed.)


VAT invoicing changes from 1 October 2007

If you are in business and registered for VAT, then from 1 October 2007 you became required to add certain information to your sales invoices. However in the first year of the new requirements HMRC will issue penalties for non compliance with the new requirements in exceptional cases only.

Who does this affect?

While the new regulations apply to the whole of the VAT population, most businesses will already comply. Those most likely to be affected are:

businesses who do not presently operate a sequential sales invoice number system

businesses using the margin scheme for second-hand goods, works of art, antiques and collectors items

businesses involved in making travel related supplies that fall within the scope of the Tour Operators Margin Scheme

businesses involved in intra EC supplies of goods and services, and e.. businesses making supplies where the customer accounts for the VAT

What is required?

Invoice numbering - all VAT registered businesses should now sequentially number their sales invoices.

Second hand margin scheme - if you use this VAT scheme you should note this fact on your sales invoice. We suggest you add the following line to your invoice: "This invoice is for a supply covered by the VAT second-hand margin scheme."

Tour operators margin scheme - if you use this VAT scheme you should note this fact on your sales invoice. We suggest you add the following line to your invoice: "This invoice is for a supply covered by the VAT tour operators margin scheme."

Cross border EC supplies - if you make such a supply, which would be exempt if supplied in the UK or subject to the reverse charge provisions, you will need to make an appropriate note on your invoice. As this is a more complex area we suggest you call if you would like our help with the compliance aspects of the relevant invoicing changes.

Intra EC supplies of goods - these supplies tend to be zero rated for VAT in the UK. A simple statement to include on your invoices could read: "Intra-community supply, subject to VAT in the country of acquisition.

Tax Diary Dates

19th of each month - CIS tax deducted for the month ending on the 5th is payable by today (ie two weeks time)

19th of each month - PAYE and NIC deductions due for the month ending on the 5th is payable by today (Or if you pay your tax electronically the due date is the 22nd of each month)

19th of each month - Filing deadline for the CIS300 monthly return for the month ending just two weeks earlier ie on the 5th.

28th February 2008 – automatic 5% surcharge for 2006/07 tax not fully paid.

6th April 2008 – new tax year starts and 2008 tax returns are issued.

19th May 2008 – deadline for submitting the employers annual returns (P35 forms etc.)

6th July 2008 – deadline for submission of P11d (B) forms – relating to taxable benefits paid to employees during 2007/08. The payment of any associated class 1A National Insurance is due by the 19th.

31st October 2008 – deadline for 2008 tax returns filed on paper.

31 January 2009 - Filing deadline for all individual, partnership, and trust self assessment tax returns for the year ending 5 April 2008 which are to be filed on line.

31 January 2009 - Due date for payment of any balancing self assessment tax and/or NIC class 4 contributions due for the year ending 5 April 2008, together with the payment of any first payment on account of self assessment liabilities for 2007-2008.