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The 2011 Budget increased the limit for Entrepreneurs Relief (ER) to £10 million per person which makes this a very generous relief which should not be missed.
These are trying times for individuals working overseas with the unrest in the Middle East and North Africa. For security reasons many have returned to the UK, however could this have an adverse affect on their residency status for UK tax purposes?
SIMPLIFIED PARTIAL EXEMPTION METHODS
If your business makes exempt supplies, it is likely you will be due to undertake a partial exemption annual calculation. This is therefore a good time to remind readers of the changes HMRC introduced in 2009 and 2010 to simplify the partial exemption rules. Making full use of these changes may enable you to reduce the time spent on partial exemption calculations and may also achieve VAT savings....
The Chancellor's recent budget may not have introduced significant new measures on VAT. There are nevertheless sound
commercial reasons why businesses should undertake a periodic review of their VAT affairs. These are brought into sharper focus by the current penalty regime, but more of that later.
This Alert is a reminder that the standard rate of VAT will increase to 20% with effect from 4 January 2011. The reduced rate (5%), the zero rate and VAT exemptions are not affected by the change.
Currently a window of opportunity exists for incorporated or unincorporated trading businesses of any size, inclusive of rental
businesses, to benefit from a £100,000 deduction against taxable profits...
VAT NOT PAYABLE ON SAMPLES
The European Court has delivered its judgement in the case of EMI plc concerning the liability to VAT of samples, e.g. audio CDs. EMI took the view that the CDs, which were identified as samples, were not gifts on which VAT was due but were normal promotional costs of operating their business. HMRC disagreed and applied the rules for gifts and samples which resulted in a VAT charge. After much legal wrangling - which commenced in 2003! - the final decision has been delivered in EMI's favour resulting in a claim in excess of £3.3M.
Motoring expenses paid to employees who use their own cars for business travel...
On 29 July 2010 the European Court of Justice (ECJ) delivered a judgment against Astra Zeneca which may mean employers will face the prospect of paying VAt to the taxman on goods or services provided to employees under salary sacrifice schemes.
While the VAT rate changes have grabbed the headlines, there have been perhaps more significant developments as HMRC have sought to harmonise tax provisions and tackle perceived avoidance. Just a few points are summarised in the following paragraphs....
