Budget News
The new CIS becomes effective from April 2007. There will be an increase in the standard deduction rate applied to subcontractors from 18% to 20%. A rate of 30% is also introduced which will allow unregistered subcontractors to start work.
Van benefit charge increases to £3000 from 6th April 2007.Please contact this office to find out the conditions under which no tax would be payable.
Small companies rate increases from 19% to 20% to April 2008 and a further 1% a year in the next two financial years. Please e-mail info@hpbs.co.uk with any comments.
Attention Retiring Business Owners ! If you wish to sell and avoid the increased Capital Gains Tax charges effective from April 2008 get your skates on !
Artic Systems ruling
National Insurance was not payable on the dividend income and was taxed at a lower rate than it would have been if added to her husband's income. It was argued by the Revenue the scheme operated by the couple was not permitted. The Revenue was concerned that husband deliberately paid himself a low salary to pass a larger share of company profits to his wife. This meant the wife was effectively sharing income with the husband and he should therefore be assessed for tax on the whole of his wife's dividend.
The revenue were defeated , however the Treasury have been quoted as saying "income splitting undermines the principle of independent taxation - that each person should be taxed on their own income. The Government will therefore bring forward legislation to put beyond doubt its intention that the principle of independent taxation is preserved."
Watch this space.
Company Law changes effective December 2006
- Companies are required to disclose name, number and other specified particulars on company websites and order forms.
Company Law changes effective by October 2008
- Private companies no longer need to have a company secretary, if they do however the secretary will have the same authority as currently.
- Auditors can by agreement with the company limit their liability in respect of the audit
Pension Changes
