Double
cab pickups
07 Oct 2009
There
has been a lot of publicity lately about the tax advantages of running
cars with low CO2 ratings. There are a number of benefits:
. possible
100% first year tax deduction for the cost of the vehicle,
. much reduced benefit in kind charges,
. lower road fund tax and so on.
But not
all of us want to run such vehicles even if there are tax, VAT and running
cost advantages.
Double cab pickups, sometimes described as crew cab pickups, are an
anomaly! Read
further
Rise
in Minimum Wage
01 Oct 2009
As
from 1st October, 2009 there will be an increase in the minimum wage
rates as follows:-
16 to
17 year olds - Increase to £3.57 per hour
18
to 21 year olds - Increase to £4.83 per hour
22
years and over - Increase to £5.80 per hour
We would
remind you that payment of the minimum wage rate is a legal requirement.
Vetting
and Barring Scheme
14 August 2009
It is
to be called the Vetting and Barring Scheme (VBS) and will be administered
by a new public body to be called the Independent Safeguarding Authority
(ISA).
From July
2010 all new employees can register with the ISA.
From November
2010 all new employees and volunteers must register before they start
work. Until they have registered they cannot be legally employed.
Failure
to comply with the new registration demands could possibly result in
custodial sentences for the employee and the employer!
A range
of useful online tools, posters and leaflets can be downloaded from
the ISA web site at www.isa-gov.org.uk/toolkit
or call 0300 123 1111.
VAT Updates from HMRC -
for the last updates visit our Bookkeeping
page
Car
benefit changes
01 June 2009
A
number of changes to the tax calculations for company cars have been
announced over the last few months and during the Budget. For the current
2009/10 tax year please note the following changes:
Disabled drivers who are required to drive an automatic car as their
company car will be allowed to use the list price of an equivalent manual
car when calculating the company car tax benefit
The requirement for a new P46 (car) form is withdrawn where an employee’s
car is returned and replaced with another car.
From 2010/11
the lower threshold for CO2 emissions figure will be reduced to 130g/km
(from 135g/km).
From 2011/12
the lower threshold for CO2 emissions figure will be reduced to 125g/km.
In addition, the current £80,000 list price cap used to calculate
the company car tax will be abolished and current discounts given to
cars using alternative fuels (such as bio-fuels and bioethanol) will
be removed.
Car
scrappage scheme starts 18 May 2009
17 May 2009
In
exchange for scrapping your old vehicle and buying a new one the Government
and most car manufacturers will contribute a total of £2,000 towards
the purchase of a new vehicle - the scheme will run from 18 May 2009
The scheme
will be available to the first 300,000 eligible claimants or until 28
February 2010, whichever is sooner.
To qualify
the vehicle you are trading in must:
1.)Be
a car or small van weighing up to 3,500 kilograms (kg)
2.)Have
been first registered in the UK on or before 31 August 1999
3.)Either have a current tax disc, or have a current tax disc and a
current Hackney Carriage Licence, or an MOT certificate which expired
no earlier than 14 days before the date of the contract between the
Purchaser and the 4.)Have been registered to you continuously for 12
calendar months before the order date of the new vehicle
5.)Have a UK address on the registration certificate (V5C) in the same
name as the new vehicle
6.)Have a current MOT test certificate before date of order for the
new vehicle
The new
vehicle you want to buy must be:
. A car
or small van weighing up to 3,500 kg
. First registered in the UK on or after 18 May 2009
. Declared new at first registration in the UK with no former keepers
The allowance
is funded by a £1,000 subsidy from the Department for Business,
Enterprise and Regulatory Reform (BERR) and a further £1,000 discount
paid for by the manufacturer.
In most
cases, VAT cannot be reclaimed on a car purchase even by VAT registered
businesses so the discount will only have the effect of reducing the
car's purchase price. However, certain VAT registered customers may
have to reduce their input tax in respect of the manufacturers' discount.
This will only be the case where VAT can be reclaimed on the purchase
of a car such as for the purchase of a taxi or a driving instructor's
car.
If you
are buying a business vehicle under this scheme please note the following
points regarding a future claim for capital allowances.
. The
£2000 discount reduces the capital cost of the vehicle.
. The vehicle you part exchange, or scrap, is considered to be written
off for tax purposes and the £2000 discount will not be treated
as taxable proceeds of sale.
"Am
I Running My Taxi Company Correctly?"
15 May
2009
Read our current article, published in Private
Hire Monthly
Budget
2009
23 April 2009
Chancellor
Alistair Darling has unveiled a series of measures aimed at tackling
the 'unprecedented economic crisis'.
Key announcements
include the introduction, from April 2010, of a 50% income tax rate
for those earning more than £150,000 a year.
The stamp
duty land tax 'holiday' for residential properties valued at £175,000
or less will be extended to the end of 2009.
Measures
for businesses include the introduction of a temporary 40% first year
allowance and an extension of help for loss-making companies.
The Chancellor
allocated £1 billion to tackle climate change, and announced a
commitment to cut UK carbon emissions by 34% by 2020.
The introduction
of a 'car scrappage' scheme was also confirmed, offering £2,000
to people who trade in cars that are over 10 years old. Meanwhile, fuel
duty will rise by 2p a litre from September 2009.
Other
measures include an increase in the child element of Child Tax Credit
from April 2010; credits towards the basic state pension for grandparents
of working age who care for their grandchildren; and a rise in the annual
limit for ISAs to £10,200.
To download
the full Budget report please click
here.
Update
from HMRC on advisory fuel rates
03 February 2009
From 1
January 2009 HMRC have issued revised fuel rates for car users.
These
rates apply when:
