The Revenue have produced updated guidance in the Employment Income Manual on how car benefits are calculated. The guidance sets out the basis for the calculation using the list price of the car and an appropriate percentage normally based on the CO2 emissions of the car. There are lower benefits, and therefore less tax to pay, on energy efficient or ‘green’ cars and the guidance for the benefit calculation for these cars is also included.

In last month’s enews we reported on the changes to the procedures for input VAT recovery by employers on employees’ mileage allowances. Customs have issued further clarification of the evidence required to support a claim for input VAT recovery.

The small business service (sbs) has announced the development of a new opportunities portal for lower-value public sector contracts. the new portal, to be launched in spring 2006, is the first uk government-backed online service for publicising lower-value public sector contracts, typically under â£100,000. all public sector organisations will be able to publicise their contracts on the portal and, for the first time, all businesses will have access to these contracts in a single place. http://www.supplyinggovernment.gov.uk/

Article re-produced with kind permission of the PCG

In reaction to this advert Clive Dickin, the Chief Executive Officer of the Association of Plumbing & Heating Contractors Ltd (APHC), commented, “Whilst APHC fully supports the message in the advert, we do feel the Inland Revenue has been unfair in using an unrepresentative stereotype of a plumber to depict a person who evades paying tax.