Potter & Pollard

The national minimum wage (NMW) hourly rates which will apply from 1 October 2012 are:

·     adult rate £6.19 (previously £6.08 )

·     18–20 year olds £4.98 ( no change)

·     16–17 year olds £3.68 (no change)

·     apprentices £2.65 (previously £2.60)

The apprentice rate applies to apprentices aged under 19, and those aged 19 and over but in the first year of their apprenticeship. Apprentices aged 19 or over who have completed at least one year of their apprenticeship are entitled to the full NMW rate applicable to their age.

Provision of a smartphone ( eg Blackberry, i-phone) is are now a tax free benefit following a change in the HMRC stance. Previously , they were classified as a computer and thus taxable.

Thus an employer may provide one such phone to an employee and there are no P11d implications. The contract must be in the name of the employer.

New penalties apply from 6 October in respect of returns files late.  The first return to be affected will be that for the month ended 5th November 2011

A contractor making contract payments under the construction industry scheme must make a monthly return together with any necessary payment to HMRC not later than the 19th each month.

Penalties will be charged as follows:

• Initial failure to meet due date of the 19th of the month - a penalty of £100.
• Return still outstanding two months after due date - a further penalty of £200
• Return still outstanding six months after due date - a ‘tax-geared’ penalty becomes due which is the greater of 5% of any deductions shown on the outstanding return, or £300.
• Return still outstanding twelve months after due date - a second ‘tax geared’ penalty becomes due.

Contractors new to CIS

Under the new rules, if you have not sent any previous returns and are filing your first returns late, there will be an upper limit of £3,000 on the total fixed penalties (£100 and £200) that may accrue.

This upper limit does not apply to any ‘tax-geared’ penalty except that, where it applies, it removes the £300 minimum penalty that would otherwise be charged where the tax-geared penalty is less than £300.

The national minimum wage (NMW) hourly rates which will apply from 1 October 2011 are:

·     adult rate £6.08 (previously £5.93 )

·     18–20 year olds £4.98 ( previously £4.92)

·     16–17 year olds £3.68 (previously £3.64)

·     apprentices £2.60 (previously £2.50)

The apprentice rate applies to apprentices aged under 19, and those aged 19 and over but in the first year of their apprenticeship. Apprentices aged 19 or over who have completed at least one year of their apprenticeship are entitled to the full NMW rate applicable to their age.

The Government’s drive to make businesses tidy up their tax and record-keeping is moving up a gear.

HM Revenue and Customrs are now starting to visit small and medium businesses and check that all tax related records for VAT, PAYE, NIC, corporation tax, expenses and any other taxes – are "adequate and accurate" ie comply with legal requirements.

HMRC will expect to see that a business is keeping full ,accurate and contemporaneous records  -  invoices, receipts, petty cash, general expenses, work diaries etc. Depending on the size of the business, they may expect to see reconciled cash books/ ledgers etc as well.

The Law required that all those running a business must:

1. Retain records ( invoices, bank statements, cheque stubs etc) going back at least six years.
   
2. If there is an apportioment of an expense betweeen business and private use ( such as for a car),  there is the necessary paperwork to back up the split
3. The record keeping up is to date 
   
4. If records include estimates, there is evidence to support the figures used.

The Chancellor, George Osborne, has announced that he will make his autumn statement on 29 November 2011.