In September, the Government intends to announce details of a scheme to help new businesses in areas outside Greater London, the South East and the Eastern regions of the UK. Which means the South-West will benefit from the scheme.

 For new businesses who start trading during a three year qualifying period, the employer will not have to pay  the first £5,000 of Class 1 Employer NICS due in the first 12 months of employment.

 The scheme extends to any new business set up from 22 June 2010 which meet the criteria. 

 The scheme will be administered as a de minimis State Aid. New businesses wishing to take part in this scheme will need to make an application to HMRC when they engage their first employee.

You can now tell HMRC about a change of name or address electronically at www.hmrc.gov.uk/individuals/change-of-circs.htm

By using this service, HMRC will amend your details with:

PAYE, National Insurance, Self Assessment, Construction Industry Scheme, Child Benefit, Child Trust Fund (although you will need to update your account provider separately), Student Loan and Tax Credits. In addition, the change you have reported will also be notified to the Government Gateway and the Pensions Service.

From 1 April 2010, HMRC introduced a single consistent penalty system across most taxes. People and companies that fail to register for tax or declare taxable income will face a failure to notify penalty. Penalties can also be given where insufficient care has been taken and/or where someone has deliberately evaded their tax and tried to conceal it.

HM Revenue and Customs has announced that it will be using debt collection agencies such as Fairfax Solicitors and iQor Recovery Services to help recoup £140 million tax debt.

National minimum wage rates will increase with effect from 1 October 2010 as follows: 

•£5.80 to £5.93 for workers aged 21 and over •£4.83 to £4.92 for workers aged 18-20 •£3.57 to £3.64 for workers ages 16-17

The ‘main’ rate which currently applies to all employees aged 22 and over will be payable for all employees aged 21 and over. 

An apprentice minimum wage rate of £2.50 an hour will also be introduced. This will apply to all apprentices aged under 19 or aged over 19 but in their first year of apprenticeship.

On Sunday 29th August, we are taking part in ’Walk on the Wildside’ in aid of St Lukes Hospice. The sponsored walk is 13 miles over Dartmoor. It’s optional fancy dress and Dom has promised to dress up as a Mexican Cowboy for the walk – look out for post walk pics.

It’s easy to donate online with a credit or debit card – just go to our JustGiving page:

http://www.justgiving.com/HardyBookkeeping

JustGiving sends your donation straight to St Luke’s Hospice Plymouth and automatically reclaims Gift Aid if you’re a UK taxpayer, so your donation is worth even more. We hope you’ll join us in supporting St Luke’s Hospice Plymouth.

On 24 March, the Chancellor of the Exchequer announced that the Government will temporarily increase the level of SBRR so that eligible ratepayers will pay no rates on properties with rateable values up to £6,000, with a tapered relief between 100% and 0% for properties with rateable values between £6,001 and £12,000. The new levels of relief will be available for 12 months from 1 October 2010 to 30 September 2011.

There are no other adjustments to the scheme and the eligibility criteria will remain the same. You should continue to pay your rates as normal. Your local authority will make any amendments required and re-issue revised bills.

Do you need an instant check of your new customer’s credit risk or continuous credit management?

With bad debts and late payments on the increase, before you offer credit to new or potential customers, it is a good idea to carry out searches to help you decide what credit term and what credit limit to offer. Failure to do so could increase the risk of being paid late or not being paid at all. Even one customer failing to pay is enough to seriously disrupt cash flow.

For just £4.99 per search we can provide you with a report that not only provides credit ratings (with a score out of 100) and suggested credit limits but will also detail any CCJ’s held by the customer. We will also alert you if there are any significant changes to the credit rating so that you can continue to make informed decisions about the credit and terms you offer.

All company reports will be completed within 24 hours.

VAT rate increase

  The standard rate of VAT will increase to 20% on 4 January 2011. Zero rated supplies and those subject  to VAT at the reduced rate of 5% will not be affected by the change. 

  To reflect the above increase in the standard rate of VAT, the percentages used in the VAT Flat Rate Scheme will also change with effect from 4 January 2011. There are no changes to the Cash Accounting Scheme or Annual Accounting Scheme. 

  National Insurance Contributions

 The threshold at which employers start to pay National Insurance Contributions will be increased by £21 per week above indexation from April 2011. 

  Income Tax personal allowance 

  The personal allowance for those aged under 65 will be increased by £1,000, from £6475 to £7475 for basic rate tax payers in the 2011/12 tax year. 

  Tax credits 

  The current tax credits system will receive an overhaul from April 2011. The main changes are as follows: 

•The Health in Pregnancy Grant will be abolished from 1 January 2011, although women who reach the 25th week of pregnancy before 1 January 2011 may still be entitle to the grant.

 •The Government will reduce tax credit eligibility for families with household income above £40,000 from April 2011. Further changes are also anticipated in 2012-13.

•The baby element will be removed from the Tax Credit system 6 April 2011 and the 50+ element will be removed 6 April 2012.