After a discussion I had with new client on Friday afternoon, it seems there is still a huge amount of confusion about what and how much an employee/business owner can be re-imbursed for using their private vehicle for work. It is true that if you use your private vehicle in your business, you can claim 40p/mile for the first 10,000 miles in a tax year and then 25p/mile over that level completely tax and NI free. This is fairly straight forward and hasn’t changed for a while. Just remember to keep mileage records in your diary or similar to back up your claim.
I have just scheduled my November 2010 Tax Tips & News email to go out at 9am on the 1st November. Make sute you get your copy by registering your interest in the signup boxes around the site. You can see a short summary of what the November issue contains on the newsletter page here along with all the previous issues.
The new national minimum wage (NMW) comes into force tomorrow (1st October 2010). This is the lowest hourly rate you can pay your employees as set by law. The rates that will apply from tomorrow are:-
Another government “green tax” initiative is soon to hit many unsuspecting firms with huge fines. Companies who use £500k pa of energy costs must register by the end of September 2010 for their energy use or face fines up to £45,000.
Never heard of the CRC?
Most people will now have heard the relevant bits of the budget given in Parliament today by the Chancellor, and lots of labour reaction to it. On balance I feel it was a very good budget given the circumstances. The rise in VAT will be unpopular but at least this brings us more into line with the rest of Europe. It has been 19.6% in France for some years and they are coping with it – so will we.
I need to make you aware of the new HMRC investigation regime that came into being in April 2010. This is partly due to the old Labour government’s need for cash – but there is no sign yet that the new Coalition will change anything.
HM Revenue and Customs have been charged by the government with two main aims. One, to cut costs and Two, to extract much more money from us tax payers. So as staff are cut, how can they achieve their other aim of increasing revenue?
I have had several clients ring me in a panic this week about capital gains tax (CGT) and the “changes” they have read about in the newspapers.
They have heard the annual CGT allowance is being slashed from £10,100 to £2,500. They have heard the rate of CGT will rise from 18% to 50%, and they have heard all this will be backdated to the 6th April 2010, messing up deals that have already been done.
The simple fact is…
Here is some more “good” news in the run up to the general election next week…
Are you a business that provides private fuel for your employees? If so, you must apply the new VAT Fuel Scale Charges detailed below from the 1st May 2010.
This means any VAT period that starts on or after 1st May 2010.
These scale charges are a reduction of the input tax claimed on the fuel used for private motoring and work hand in hand with the P11D taxable benefit for private fuel provided to employees.
The new quarterly charges are (figures are inclusive of VAT)…
This site has been running now since September 2007 and there is a lot of information and advice that I have put on here since then, all for free, and available to anyone who dropped by. Times are changing! I will still provide the content for free but access to it will require a commitment from you to register as a basic level member.
Having discussed tax with a high earning client earlier today, I was suprised they hadn’t realized there is a current highest rate for some earners of 60%. So I thought if one person didn’t know then there are probably a few more out there that ought to be informed before they cast a vote on May 6th.
OK. It isn’t a universal tax rate. It only applies to some people whose income falls into a certain range…