News - September

From time to time, we produce information for clients on a number of topical and important issues, some of which can be found below:

‘Fit Notes’ to replace Sick Notes

Halesowen chartered accountants E R Grove & Co is advising businesses of a new government announcement concerning the introduction of a ‘fit note’ scheme, which aims to encourage employees to stay in work, rather than taking long-term sickness leave, and make it easier to return to the workplace after a period of illness.

New Disclosure Opportunity

HMRC have provided more details of the New Disclosure Opportunity (NDO) which is due to take place from 1 September 2009 to 12 March 2010. The NDO is for people with unpaid tax connected to offshore accounts and assets and will give the taxpayers one final opportunity to disclose.

Increase in Pay for Apprentices

From 1 August 2009 the national minimum wage (NMW) for apprentices increased from £80 to £95 per week.

‘False Self-Employment’ in the Construction Industry

The government has been looking at the best way to address the issue of what they believe is ‘false self-employment’ in the construction industry. They have concluded, for income tax and national insurance purposes, that they will introduce legislation which deems workers within the construction industry to be in receipt of employment income unless one of three simple, clear and easy to apply criteria is met.

HMRC Warn of more Scam Emails

HMRC have updated their guidance on scam emails as they are aware that a large number of individuals are receiving emails offering tax rebates. HMRC have also confirmed that they would not inform taxpayers of a tax rebate via email, or request that they complete an online form to receive a rebate of tax.

‘Paper’ Tax Return Deadline Looming

For those wishing to complete paper self assessment tax returns, the filing deadline of 31 October 2009 is fast approaching.

VAT Increase to 17.5%

HMRC have issued guidance for businesses dealing with the increase in the standard rate of VAT from 15% to 17.5%. The change takes effect from 1 January 2010. They hope that by issuing the guidance well in advance of the change that businesses will have sufficient time to prepare.

Pension Changes Ahead

Under provisions contained in the Pensions Act 2008 employee pension enrolment and employer contributions are to be made compulsory.

Redundancy Pay

The weekly maximum pay which can be taken into account when calculating statutory redundancy pay is set to increase from 1 October 2009.

Cross-Border VAT Changes 2010

HMRC have issued important updates in advance of the changes in the place of supply of services rules which take effect from 1 January 2010.

Employing a Family Member

Halesowen chartered accountants E R Grove & Co are warning family businesses to be aware of controversial legislation to prevent ‘income shifting’ which has been postponed until at least 2010, and did not feature in this year’s Budget as originally planned.