Business News
December 2009
Change in VAT rate to 17.5 percent on 1 January 2010
Following this year’s Pre-Budget Report, the Chancellor has confirmed that the 15 percent VAT holiday will end on 1 January 2010, when the rate reverts back to 17.5 percent.
The Pre-Budget Report
10 December 2009
Following several consultation papers released by HMRC throughout 2009, many contractors had feared that the government was about to re-introduce income-shifting proposals and introduce measures to tackle 'false self-employment', but regulations remain unchanged following Wednesday’s announcement.
VAT Holiday Over As Rates Expected To Return To 17.5%
The Government’s one-year VAT holiday will end on 1st January 2010, with rates expected to return to 17.5% from the 15% we have enjoyed all year.
VAT and New Year’s Eve Traders
If you are going to be out celebrating on New Year’s Eve or indeed if your business will be operating over midnight, you will be glad to hear that the government has announced a relaxation of the VAT rules. Pubs, clubs, restaurants and other retail businesses remaining open past midnight on New Year’s Eve will be allowed to continue charging VAT at 15% on their sales until they close or until 6am on 1 January 2010, whichever is the earlier.
Online Filing of VAT Returns
HMRC are reminding businesses that new rules on how VAT returns are submitted and payments are made will come into force next year. Paper VAT returns will be phased out from 1 April 2010.
Business Rates Bills
The government has confirmed that 60% of business rates will fall next year as a result of revaluation and that it will not collect a penny more of extra revenue as a result of the 2010 revaluation, which is carried out every five years. However, rates bills for some businesses will rise significantly.
Pre-Budget Report 2009
Alistair Darling will make his Pre-Budget statement to the House of Commons on Wednesday 9 December 2009 at 12:30.
We will let you have details of the important announcements in the next issue.
Internet link: Treasury website
Intrastat Thresholds
HMRC have announced significant changes to the Intrastat thresholds. Intrastat is used to report the movement of goods within the EU over certain thresholds. Those traders with an annual intra-EU trade in goods exceeding the exemption thresholds are required to provide monthly statistical returns (Intrastat Supplementary declarations).
Parties For Employees
Are you planning a party for your employees? The good news is that, unlike entertaining customers, the costs of entertaining employees are generally allowable against the profits of the business.
Swine Flu and SSP
Under existing rules for Statutory Sick Pay (SSP) employees can self-certify for the first seven days of their illness and employers cannot ask for medical evidence during this period. There has been no change to this requirement.
First Aid at Work
The Health and Safety Executive are reminding businesses that the guidance for first aid at work changed from 1 October 2009.
To insure that you are complying with the revised requirements please visit the link below.
Internet link: HSE website
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