Happy New VAT Year!

The standard rate of VAT, which fell temporarily to 15%, is due to go back up to 17.5% from the start of the New Year.
HMRC recognise that the change may cause problems for certain businesses at a particularly busy time of year, and has announced a measure designed to help.
Special accounting arrangements for businesses operating beyond midnight on 31 December 2009 effectively defer the start of the new VAT rate for some traders. These mean that pubs, clubs, restaurants and other retail businesses remaining open past midnight on New Year’s Eve will be allowed to continue charging VAT at 15% on their sales until they close or until 6am on 1 January 2010, whichever is the earlier.

Vat rate change and sage update

The rate of vat is changing back to 17.5% from 1st January 2010.

Here is the process to folow to change the vat rate in Sage.

From the settings list (Sage 50 Accounts v16)

• Configuration
• Tax codes
• Highlight the T1 code (should currently say 15%)
• Select edit
• Change rate to 17.5%
• Select OK
• Select apply
• Select close

NB
Best to go back into configuration and tax codes and make sure T1 now reads 17.5%.

Incorporation Tax Advantages

Whether you are a sole trader or in partnership there could be tax savings if you transferred your business to a company.

Not only can incorporation mean that you pay lower corporation tax on your business profits and keep more of your earnings it also presents a number of interesting tax planning opportunities.

This is especially topical as we have the introduction of 50% income tax from 6 April 2010.

For example if your business has valuable goodwill or other assets that would be chargeable to capital gains tax you might consider an incorporation that involved you selling such assets to your company and paying 10% tax now. This could then give you the ability to withdraw capital from you company in the future and avoid the 50% income tax rate.

Alternatively you may wish to consider splitting income to use your spouse or civil partners lower rates of income tax and/or their annual tax free personal allowance.

Of course there are many factors to be weighed in each case, the decision to incorporate needs to be considered carefully and in practice it doesn’t happen overnight.

If you are interested, please let us know and we can arrange without obligation to meet for an initial discussion.

Do you have a Partnership Agreement that really protects your business?

Many partners in business don’t have a formal agreement or realise that not having one could mean they are at risk when changes happen. Without an agreement, firms are governed by The Partnership Act that dates from 1890! The application of this Victorian legislation could be the source of problems if it doesn’t fit your modern day requirements.
A good partnership agreement will ensure that other partners have a survival plan to follow in different circumstances and that protects the future of your business.
While it’s advisable to draw up partnership agreements early on, there is no legal duty to do so; many businesses operate on trust alone. Whilst trust has to be a major factor in any successful partnership this can present dangers which partners may not be aware of.
For example The Partnership Act may be problematical because without an agreement:
• any Partner has the right to dissolve a firm
• there is no restrictive covenant on a partner who is leaving
• all partners are entitled to an equal profit share
• if one partner wants or has to retire other partners can just take over and make no goodwill payment.
• no person may be introduced as a partner unless every single existing partner agrees
• if one partner dies or is declared bankrupt, the partnership is automatically dissolved
Additionally, if you already have a partnership agreement, make sure it’s up to date, as it may not be relevant to your current business. It’s also essential to check that all partners have signed the agreement and that it’s not just in draft form – failure on either of these counts means your agreement is not valid.
It’s ironic that whilst your business is a large part of your wealth you may not have it properly protected. In our experience it’s too easy to underestimate the value of a Partnership Agreement.
We work with a number of legal practices who are prepared to undertake a free initial appraisal of existing agreements. Please contact us if you would like to take advantage of this offer.

IR35 Pitfalls

The IR35 legislation enables HMRC to tax some contractors as though they are employees those caught may pay significantly more tax, reducing take home pay by up to 25%!
If you are a contractor your Company could have an increased IR35 risk if for example:
• You cannot decide your hours
• Your tasks are not clearly defined
• You are personally named in the client contract
• You cannot provide a substitute
• You cannot work for other clients
• You receive benefits from your client
HMRC can backdate tax liabilities if you are found to be inside IR35 so avoid the pitfalls and speak to us if you need help.

Stamp Duty Land Tax Holiday Ends Soon

If you are in the process of buying a house you may be able to take advantage of the higher stamp duty land tax threshold before it reverts back to £125,000 from 1st January 2010.
To give the property market needed boost, the chancellor announced a stamp duty land tax holiday on purchases of residential property costing no more than £175,000. The holiday period ends on 31 December 2009. From 1 January 2010, the threshold will revert to £125,000.
This means if you are eligible to save stamp duty on residential property completion must take place on or before 31 December 2009. Missing the deadline could be costly!

Working Through Further Education

Students in the UK are liable to pay income tax and national insurance contributions on their earnings, just like everyone else.

However there is a statutory exemption that may remove any possible tax charge where an employer, or a third party, incurs expenditure on work-related training for employees. It does not matter whether the employer directly incurs the expenditure or reimburses the employee's expenditure. The exemption covers sums that would otherwise be taxable as earnings, as benefits, or under the vouchers rules.

So if you have or are thinking of employing a part time employee who is in further education we could perhaps look at the package and think about restructuring to take advantage of the available exemption. You don't have to pass all the savings on to the employee!

£1,000 Employment Subsidy

In certain circumstances subsidies are available if you employ someone who has been claiming Job Seekers Allowance for more than 6 months. Please follow the link below for more details:

http://www.jobcentreplus.gov.uk/jcp/Employers/AdvertiseaVacancy/recruitmentsubsidy/

For commercial reasons our advice generally is to base your recruitment decision making on the qualities of the applicants and if that results in you receiving a £1,000 subsidy then think of it as a bonus.

Do you have a Shareholders Agreement?

As a business evolves its good practice to consider the shareholders agreement or consider implementation of such an agreement if you don’t already have one.

A properly prepared shareholders agreement should be a useful tool that protects the owners of a Company. The agreement may for example cover:

• The price to be paid for shares or a formulae that needs to be used.

• Directors decision making powers.

• Matters requiring shareholder approval.

• Responsibilities.

• Dividend policy.

• Restrictive covenants and confidentiality.

In our experience it’s too easy to underestimate the value of such an agreement to the owners of a Company.

We work with a number of legal practices who are prepared to undertake a free initial appraisal of existing shareholder agreements. Please contact us if you would like to take advantage of this offer.

Time to Change Your Company’s Constitution?

In light of Companies Act 2006 changes we recommend companies review their articles and memorandum of association and consider making changes, you may for example:


• Change the objects clause so that the powers of the Company are unrestricted.

• Remove references to alternate directors.

• Eliminate references to annual general meetings.

• Unrestrict the authorised share capital.

• Enable board meetings by telephone and other forms of electronic communications.

We are working with a number of legal practices who are prepared to undertake a free initial appraisal of constitutional documents. Please contact us if you would like to take advantage of this offer.

NDO Disclosure Opportunity Deadline

Taxpayers with undeclared tax liabilities must notify HMRC by 30 November 2009 of their intention to make a disclosure if they wish to take advantage of the favourable terms offered by HMRC. According to HMRC NDO is a never to be repeated opportunity!
If you would like advice or assistance please contact us on 0115 9565171 or by visiting www.marshallsmalley.com

The Big Problem with PAYE

Most taxpayers pay their tax through the Pay As You Earn (PAYE) system. Whilst the principle of PAYE is simple the reality can be problematical!
In our experience the most common and best avoided problem with PAYE is operation of Incorrect Tax Codes.
Tax codes are the keystone of the PAYE system. Your tax code ultimately determines how much tax you will pay. The accuracy of your tax code depends on HMRC being supplied with correct information on a timely basis and the tax office processing it correctly.
Best advice is to check your tax code and review it if you have a change of circumstances.
For example, if you turn 65 or 75 and therefore qualify for age-related relief – then your tax code will need to be changed. The tax office may or may not do so automatically.
If you would like help with your tax please contact you local accountants in Nottingham on 0115 9565171 or visit www.marshallsmalley.com

Giving your business the best start with tax

Everyone starting out as self-employed needs to register with HMRC when they’ve started working for themselves.
If you do not register within 100 days of going self employed you may have to pay a penalty. The registration gives HMRC the information they need.Further penalties can also arise if you delay and are behind with your taxes.
If you are self employed in a partnership, each of the partners must register separately too.
Contact us to give your business the best start with tax by visiting our website www.marshallsmalley.com

Student Tax Calculator

Tax can be confusing when you start working so HMRC have produced an easy to use tax tool for students.
Students in the UK are liable to pay income tax and national insurance contributions on their earnings, just like everyone else. Due to confusion they often end up paying the wrong amount. It’s worth checking because if you have overpaid you can get the cash back from the taxman.
Just use the student tax checker on HMRC’s website:
http://stccalculator.hmrc.gov.uk/UserDetails.aspx

Or visit your local accountants in Nottingham www.marshallsmalley.com

Have you disposed of valuable assets?

If valuable assets are being or have been sold, there may be a Capital Gains Tax (CGT) liability and you should remember this when completing your self assessment tax return.
CGT is a tax on capital which affects comparatively few so most people have no cause to consider CGT. In addition to CGT being unfamiliar to many there are also a number of reliefs that can make CGT complex.
Broadly, CGT is payable on the difference between what you paid for an asset and what it’s worth when you dispose of it. This might be through a sale, exchange or gift. If you were given the item in the first place, CGT may be payable on the entire disposal value!
After an annual tax-free allowance of £9,600 for the 2008-09 tax year if you have a CGT liability you will normally have to pay it through your self assessment tax return. CGT is levied at a single rate of 18 per cent for 2008-09.
For help and advice with capital gains and self assessment contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com

Would you like to reduce your Payments on Account of Tax?

You may make a claim to reduce your payments on account of tax if you expect your business profits for the current tax year will be less than the year ended 5 April 2009.

This will reduce the amount to be paid to HMRC on account of your 209/10 tax bill and could help your January cash flow.

The claim can be included in your 2009 tax return or you can elect using HMRC form SA303. Please just give us a call if you need our assistance on 0115 956 5171 or visit www.marshallsmalley.com

Employee Expenses and Benefits

A-Z Guide for Employee Expenses and Benefits

HMRC has issued a fairly comprehensive guide explaining their reporting requirements for assets, facilities and services commonly provided to employees.

This confirms their interpretation of the tax rules for benefits and expenses and gives us another useful tool.

Follow the link below to see the A-Z Guide.

http://www.hmrc.gov.uk/paye/exb/a-z/a/index.htm

For help and advice on emloyee benefits and expenses contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com

2009 Tax Return Filing Deadline

31 October is the last date by which self assessment tax returns can be submitted to HMRC on paper for the tax year ended 5 April 2009.

However, 2009 returns can still be submitted on time up to 31 January 2010 if filed online.

For help with your self assessment tax return contact accountants in Nottingham, Marshall Smalley Chartered Certified Accountants on www.marshallsmalley.com

Ease the Business Rate Burden

A new deferral Scheme offers the chance to postpone payment of some of your business rates bill for this financial year only and you may also qualify for the Small Business Rates Relief Scheme.

2009/2010 Business rates deferral scheme

You may be able to spread the payment of the increase in your 2009/2010 business rates bills over a three year period.

You can apply at any time until 31st March 2010 provided you have some of your bill left to pay. However, you are advised to apply early.
Contact your local borough council local taxation section to request an application form or to find out more information.

Small Business Rate Relief

If you run a small business further help may be available to pay your business rates bills with Small Business Rate Relief (SBRR). This relief supports small businesses who generally occupy only one business property. The relief is available at 50% for eligible properties up to £5,000 rateable value and relief decreases at the rate of around 1% per £100.00 of rateable value up to 0% at £10,000.

To find out more or to apply for SBRR for the first time, ask your local authority for an application form. Further information can be found at:

www.businesslink.gov.uk.

For further information on saving you business money contact Nottingham Accountants Marshall Smalley on 0115 956 5171 or visit www.marshallsmalley.com

R & D Questionnaire

The following questionnaire may help you decide if you can claim tax relief on your project and flag up some issues to consider…

Please contact us if you need assistance with your claim for R&D tax relief by calling Nottingham Accountants Marshall Smalley on 0115 9565172 or visiting www.marshallsmalley.com

1. In outline, as a result of the R&D project what has been achieved to develop or improve the technology of products that already existed?
2. Why was the knowledge to develop or improve the technology not available elsewhere?
3. When did the R&D project start?
4. Who were the persons leading the R&D project and what was their relevant experience to the project?
5. Was any part of the R&D project subcontracted out?
6. What technological uncertainties were involved in the project?
7. In respect of each uncertainty when was the development or improvement achieved?
8. In respect of each uncertainty how was it overcome?
9. Excluding any capital items how much extra do you estimate to have been spent as a result of the R&D activity?
10. Who owns the intellectual property rights of the R&D project?
11. Has any patent application been or being made?
12. What plans are there to exploit the R&D commercially?
13. Has any other party contributed to the funding of the R&D project?
14. Have you identified the R&D project costs and documented the basis for allocating any costs to the project?
15. Are the documents evidencing the project costs still available?
16. Do you have professional fees insurance that can cover the costs arising from HMRC enquiries following the submission of tax returns that include R&D tax relief claims?
17. Have you previously submitted other claims for R&D tax relief?
18. Have you undertaken any other R&D projects within the last six years?

Strictly R&D Tax Relief

We are led to believe HMRC will be adopting a stricter approach to claims for R&D tax relief in future, for example, not accepting estimated figures or assisting late claims.

For those with a qualifying project R&D tax relief is fiscally attractive.

The message is simple more than ever it’s important to determine if your R&D project qualifies for tax relief and put systems in place to identify the costs before they’re incurred.

If you are involved or planning an R&D project let us know if you would like us to support your claim for tax relief.

Government Proposals Alarming Construction Industry!

A recently issued Government consultation document False self-employment in construction: taxation of workers proposes that every construction subcontractor should be deemed to be in receipt of employment income for all tax and NIC purposes, unless they can satisfy one of the three ‘key tests’:
• they provide plant and equipment (which would be defined as something beyond the tools of the trade they would normally be expected to provide); or
• they provide all the materials required to complete a job; or
• they provide other workers to carry out operations under the contract and are responsible for paying them.

This could mean a 12.8% PAYE and NIC liability for employers in respect of skilled workers who previously were regarded as self-employed.

At a time when the collapse in the housing market has already put the construction industry under pressure these proposals are bound to attract considerable interest before the opportunity to comment on them closes on 12 October 2009.

HMRC Interest Rates Set to Change

HMRC are in the process of standardising the interest regime across all taxes and as a consequence rates will change in September for the first time in six months.

Interest charged on tax paid late will be based on Bank of England Base rate plus 2.5% whilst interest added to tax refunds will be 1% below that rate subject to a minimum of 0.5%.

If you need further advice please contact us in Nottingham on 0115 9565171 or visit www.marshallsmalley.com

Company Cars - Advisory Fuel Rates from 1 July 2009

HMRC have announced new rates that apply to all journeys on or after 1 July 2009.
The rates apply where employers reimburse employees for business travel in their company cars or require employees to repay the cost of fuel used for private travel.
Customs will also accept the rates for VAT purposes if employers retain sufficient receipts.
Follow the link below for the new rates:

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

For help and advice regarding company cars contact Nottingham Accountants Marshall Smalley Chartered Certified Accountants on 0115 9565171 or visit www.marshallsmalley.com

HMRC’s New Disclosure Opportunity (NDO)

The NDO is available to all UK taxpayers who decide to make a voluntary disclosure of direct or indirect tax liabilities. The irregularities do not have to necessarily involve an offshore bank account.

Under the NDO HMRC allow people with unpaid taxes to settle their tax liabilities at a discounted penalty rate. Where the tax does not exceed £1,000 there are no penalties.

The NDO registration window opens on 1 September and closes on 30 November whilst the longest deadline date for full disclosure and settlement is 12 March 2010.

NDO covers both onshore and offshore tax problems, we are more than willing to help anyone who would like to register and make a disclosure under NDO.

HMRC have said the NDO is "the last opportunity of its kind”. Meanwhile, HMRC has won access to offshore accounts of 300 banks, and will use that information to monitor who makes a disclosure.

For assistance or more information call Nottingham Accountants Marshall Smalley on 0115 9565171 or visit http://www.marshallsmalley.com/

New disciplinary procedures

As of 6th April 2009, the Statutory Dismissal, Disciplinary and Grievance Procedure was replaced with the new Acas Code of Practice on Discipline and Grievance. Employers should ensure they ollow the new code carefully or risk falling foul of the financial penalties.

The new code sets out clearly the steps that an employer must take when dealing with issues concerning and disciplinary matter or grievance.

The code must be followed at all times, even in cases where employers simply issue an employee with a verbal or written warning. Failure to do so means that if a claim is brought against you in an Employment Tribunal, the Tribunal will have the power to increase any award made by upto 25%.

On a more positive note, employees will no longer be ale to successfully bring a claim of automatic unfair dismissal purely as a result of an employers failure to follow the statutory process. This does not mean however that no process need be followed as Tribunals will still be able to decide that a dismissal is unfair if a proper and reasonable procedure has not ben followed.

Do you really need to be registered for VAT?

You must register only if the value of your taxable supplies in the last year or less has exceeded £68,000. De-registration may enable you to reduce your prices or to keep more of your sales.

HMRC’s New Disclosure Opportunity (NDO)

HMRC have now confirmed the details of the NDO.
The NDO allows people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate. The NDO runs from the 1 September 2009 until 12 March 2010.
We have the expertise to help anyone who thinks they might benefit from the NDO.

VAT cash accounting scheme

If you sell more on credit than you buy on credit, you should look at the VAT Cash Accounting Scheme. Normally you pay VAT on your sales according to when you invoice but using this scheme defers the payment of VAT as it is based on when the customer has paid you.
Contact Accountants in Nottingham Marshall Smalley Chartered Certified Accountants on www.marshallsmalley.com

Can You Defer Self Assessment Payments on Account?

Taxpayers are not required to make payments on account for 2010 if the 2009 income tax and Class 4 National Insurance liability is less than £1,000. So getting your return in on time could reduce the payment due 31 January 2010 and mean there’s nothing to pay by 31 July 2010.

Don't wait for help

Don’t wait for HMRC to come after you if you owe money. If you anticipate any trouble paying, we can talk to the Business Payment Support Service to arrange additional time to pay.

31 July: How to pay?

All the information you need to know about making self assessment payments is on HMRC’s website at How to pay Self Assessment.

Tax Credits deadline problem

A self-imposed overtime ban undertaken by HMRC staff could lead to major delays in processing tax credit renewals by the 31 July deadline. The ban began last Monday.

31 July Self Assessment Payment Deadline

The second payment on account of Self Assessment for the year ended 5 April 2009 should reach HMRC before 31 July.

Reduce your income tax

If you are self-employed and your business profits have reduced we may be able to reduce your income tax payment due on July 31.

19 July Payment Deadline

Payroll taxes for the month ended 5 July and payments of Class IA NICs on benefits should reach HMRC by 19 July.

Working Family Tax Credits

Tax credits can add up to very significant sums, so if you think you qualify you need to act quickly, claim now and ask for your claim to be backdated.

Declarations of income for last year are also due by the end of July.

Tax Refund Information Scam

Some of our clients have received the following e-mail. Once the link is clicked it requests personal information including Mothers Maiden Name and also your credit card details!

This is obviously a scam to obtain personal information and should be deleted immediatley.



Message Received: Jun 30 2009, 08:30 PM
From: "HM Revenue & Customs"
To: undisclosed-recipients:;
Cc:
Subject: Tax Refund File Number 2009HMRC95841476X/622


ATTN: Dear Applicant,
2009 - Recalculation Tax Refund

After the last annual calculation of your fiscal activity we have determined that you are eligible to receive a tax refund of 284.23 GBP
Your TRN (TAX REFUND NUMBER): 2 7 9 0 2 1 6 8 1 5, please fill the payment form attached in the email.
Please submit the tax refund and allow us 3-9 business days in order to process it.

Note: For security reasons, we recommend that you close your browser after you have finished accessing your refund status.
- For security reasons, we will record your ip-address and date.
- Deliberate wrong inputs are criminally pursued and indicted.

Best Regards,
Greg Stephen
Tax Credit Office Agent
Preston
PR1 0SB
Telephone: 0845 300 3900
Opening hours:
8.00 am to 8.00 pm, seven days a week

Business payment support service

If you're concerned about being able to meet tax, National Insurance, VAT or other payments owed to HMRC or you anticipate that payments coming due will cause you problems, the Business Payment Support Service may give you the additional time you need to pay, although interest will be charged.

Tax Credits - protect your right

Tax credits are paid for a full tax year. A tax year runs from 6 April one year to 5 April the next.

To protect your right to tax credits HMRC should receive your claim within three months of the start of the tax year, so no later than 5 July 2009.

Making PAYE payments to HMRC

CHANGES FROM MONTH ONE 2009-2010

If you normally make direct payments to HMRC, the action you need to take to implement the new changes are as follows:

Paying by CHAPS, BACS Direct Credit, Internet or telephone banking:

You need to provide your bank or building society with the HMRC new bank account number and sort code to prevent any delay in HMRC receiving your payment. The new bank account details are as follows:

ACCOUNTS OFFICE CUMBERNAULD
Account name HMRC Cumbernauld
Sort Code 08-32-10
Account No. 12001039

ACCOUNTS OFFICE SHIPLEY
Account Name HMRC Shipley
Sort Code 08-32-10
Account Number 12001020

Bank Giro and Post Office
You do not need to take any action as each payslip in your P30BC booklet has the new account number pre-printed on it.

Direct Debit and Debit or Credit Card over the internet using BillPay.
You do not need to take any action as the new account details will be updated automatically.

Further updates on these changes can be found at www.hmrc.gov.uk/payingonline.

Warning: PAYE Problems Ahead

A New PAYE computer system is planned to go live on 29 June.

This is an enormous change involving in excess of 20 million employee records.

Whilst the new system should bring improvements Employers need to be aware that there will inevitably be problems over the next month or so as HMRC prepare for the changeover.
It is quite likely too that there will be some teething problems which will only come to light when the system goes live, so be prepared.

Vat on fuel for company cars

HMRC have published the revised fuel rates for company car users.

These new rates will take effect from 1st July 2009 and will be effective until further notice, however HMRC have said that they are happy for the new rates to be implemented immediately should the employer wish to do so.

The new rates are as follows:

Engine size Petrol Diesel LPG
1400cc or less 10p 10p 7p
1400cc to 2000cc 12p 10p 8p
Over 2000 cc 18p 13p 12p

Petrol Hybrid cars are treated as petrol cars for this purpose.

Will the rate per mile figures change if fuel prices change?

HMRC have said that the rates will be reviewed twice a year. Any changes will take effect on 1 January and 1 July but will be published on the HMRC website about one month in advance.
HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made and we consider the price change will be sustained.
Employers should make themselves aware of any changes by referring to http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

Companies House Penalty Increases

Small limited companies are required to file a copy of their accounts each year with Companies House. If you file even one day past the filing deadline you will be penalised. The new late filing penalties which will be levied from 1 February 2009 are dramatically increasing!
The new fines for private companies are:

• Not more than 1 month - £150 (presently £100)
• More than 1 month but not more than 3 months - £375 (presently £100)
• More than 3 months but not more than 6 months - £750 (presently £250)
• More than 6 months - £1,500 (presently £500 between 6 to 12 months, £1,000 over one year)

Companies House – 363 Annual Return Reminders

Companies House no longer send out paper annual returns (363 forms).
Instead they will issue a letter prior to the due date providing you with an activation key to allow you to file your annual return online for the reduced cost of £15.00. Only one copy of this letter will be sent to your Company Registered Office address – we do not receive copies unless you have opted to use us as your registered office address.

As soon as you receive this letter, please contact us immediately if you require us to produce a paper annual return form. We will complete the information required and send you the return to sign and date and forward the return direct to Companies House together with a cheque to the value of £30.00. To ensure you have a receipt for this, we would advise you to send the return using recorded delivery.

2009 Payroll Changes

IMPORTANT NOTICE

1). Changes to Holiday Entitlement

From 1 April the statutory amount of holidays for any employee increases to 5.6 weeks or 28 days. Please note that this can include the 8 bank holidays so in effect an employee must be paid for 4 weeks holiday.

You will need to apply this to whatever date your leave year commences on, to see the difference. For example if the leave year starts on 1 January, the employee’s new entitlement for this year will be 27 days as the new rule does not apply for the first 3 months of the year. If it’s 1 April, the employee’s entitlement will be 28 days.

If you have any queries about the above changes and how they will affect you, please feel free to call our Pay roll Manager Mr Rob Bentley on 01263 722122 or 07866 509324.

2). Increases to PAYE and National Insurance

The emergency tax code applied to all new starters who are unable to provide a P45 changes from 1 April to 647L. This means that employees on this code can earn £125 per week or £540 per month without paying tax. The threshold for paying NI also changes to £110 per week or £476 per month.
Please ensure that if you currently have any employees on 603L, you automatically increase their tax code to 647L unless you have received a separate coding notice from HM Revenue & Customs.

3). Changes to Statutory Payments

From 1 April the rate of Statutory Sick Pay increases to £79.15 per week, and the rates for Statutory Maternity Pay, Paternity Pay and Adoption Pay increase to £123.06 per week. Please ensure that these rates are correctly applied where required and that any entitlement to reclaim these payments is correctly made.

4). Filing of PAYE forms online

If you have more than 50 employees, you must send all P45s and P46s online from 6 April. For employers with less than 50 employees this does not come in until 6 April 2011, but you may prefer to start filing online before then, so you are fully prepared. Please note that the number of employees includes leavers so if you have a high turnover of starters and leavers, you could be required to start filing forms from next month.
New Automatic Penalties for those who do not comply with National Minimum Wage Rules
From 6 April 2009, a new automatic penalty will be levied on employers where compliance officers find arrears of the National Minimum Wage (NMW) after 6 April 2009. Penalties will range from £100 to £5,000 and those employers who settle within 14 days of notification will receive a 50 per cent discount of the penalty for prompt payment. The penalty must be paid in addition to any arrears owed to the workers. The most serious cases of non compliance may be tried in a Crown Court and subject to an unlimited fine.
To reflect this change, the current system of separate NMW enforcement and penalty notices will be replaced by a combined notice of underpayment and penalty. This will be issued whenever we discover that arrears were outstanding at the start of our enquiries.
The notice will detail the amounts due to workers (calculated according to the formula shown below) and any penalty due on those arrears. The penalty will be half the total underpayments shown on the notice, for pay reference periods starting on or after 6 April 2009. HMRC can pursue arrears claims for workers going back up to six years.
You will be able to appeal both the amount of the arrears and the penalty to an Employment Tribunal (an Industrial Tribunal in Northern Ireland) under new appeal rights. If you have any questions about the NMW you can call the National Minimum Wage Helpline in confidence on Tel 0845 6000 678.