'FUTURE' VAT BILLS COULD THWART ENTERPRISE ACCORDING TO FSB

Date Added: 23 November 2009

There have been several reports in the media that HMRC is aiming to boost its dwindling VAT coffers by targeting entrepreneurs using pre-pack administrations to rejuvenate failed businesses.

Pre-pack measures enable owners to sell the assets of a failed business to a new company, usually a shell owned by the former management. They also wipe out debts, including those owed to the tax office.

According to The Times and The Daily Telegraph, The Revenue is reviving a little-known VAT law to demand a penalty fee or 'security for future VAT', calculated using a registration form on which the entrepreneur declares estimated future revenue.

The Federation of Small Businesses says this practice is at odds with the 2006 Enterprise Act, which is designed to encourage failed business owners to start again.

If you would like further advice please contact Tim Davies on 01242 252555 or e-mail This e-mail address is being protected from spambots, you need JavaScript enabled to view it

VAT RATE RETURNS TO 17.5%

Date Added: 19 November 2009

The VAT rate reverts back to 17.5% on 1 January 2010.  The normal tax point rules will apply for the change; the earlier of the date of invoice or the date of supply.  However there are some special anti-forestalling rules to prevent avoidance.

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STAMP DUTY HOLIDAY ENDS ON NEW YEAR'S EVE

Date Added: 12 November 2009

The Government's Stamp Duty holiday on entry-level property purchases will end at the turn of the year. The tax threshold will then revert back to £125,000 from £175,000 unless the Chancellor extends the benefit in his Pre-Budget Report, expected later this month or early next.

Anyone buying investment properties at this level should therefore ensure their transactions are completed by 31 December if they are to avoid additional tax bills.

DEADLINE LOOMING FOR NDO

Date Added: 03 November 2009

HMRC has released a video on YouTube to warn taxpayers to register for its New Disclosure Opportunity (NDO) before the end of the month. Dave Hartnett, HMRC's Permanent Secretary for Tax, warns viewers that this is their last chance to own up to holding assets in offshore bank accounts.

Anyone wishing to make a disclosure must register to do so by 30 November. Disclosure and payment of tax can follow later, but anyone holding untaxed funds offshore who does not declare the income to HMRC now will face significant penalties and potential criminal prosecution.

A feature of the video clip is the warning that the tax authority now has "more powers and more information" and warns those who don't come forward that they "will be found out and will be penalised".

If you need further advice on the NDO, please contact This e-mail address is being protected from spambots, you need JavaScript enabled to view it