DG Accountancy News: October 2009 Business Bods News

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Welcome to this monthly Accounting News bulletin from DG Accountancy Services (http://www.businessbods.co.uk) bringing Small Business' news and information from the business world, as it happens!

Wednesday, 14 October 2009

Fathers to be given new paternity rights

Fathers will gain the right to take six months’ paternity leave under new plans announced by the Government.

The proposals will see parents afforded the right to share a year of parental leave to care for their newborn child, with fathers allowed to take six months off after the mother’s first six months of leave.

The changes will take effect for parents of children due on or after 3 April 2011.

Harriet Harman, Minister for Women and Equality, said the new rights would give ‘families radically more choice and flexibility’ and enable ‘fathers to play a bigger part in bringing up their children.’

But the Government has yet to fix a date for its plans to extend mothers’ maternity leave from nine months to a year.

Commenting on the shared leave proposals, Miles Templeman, Director General of the Institute of Directors, said: ‘We strongly support new paternity leave rights for fathers, providing the Government ensures that the new system is simple for businesses to administer and there is no overall increase in the total amount of paid and unpaid leave parents can take.’

However David Frost, Director General of the British Chambers of Commerce, told the BBC: ‘This is not the time to do it. It is a huge burden to plan for both a male and a female employee being away.’

The Government anticipates that the new rules will have a ‘minimal’ impact on companies and that just one in 137 small businesses are likely to be affected.

posted by BusinessBods.co.uk @ 06:38 0 Comments

HMRC issues new warning over fake emails

HM Revenue and Customs (HMRC) is warning people to remain vigilant as fraudsters renew their efforts to scam money from unwitting taxpayers.
Emails which appear to originate from a genuine Government source claim that recipients are entitled to a tax rebate in an attempt to coax them into sharing personal information.
Some messages also invite taxpayers to complete a form (in some cases an online form), which demands their credit card details.
Email addresses used by the fraudsters include: tax-inform@hmrc-information.co.uk; online.paper@hmrcpaper.co.uk; office.tax@hmrc.taxreturn.co.uk and securemail@hmrc.gov.uk.
However, HMRC states that it would not inform customers of a tax rebate via email, and is advising taxpayers not to visit the website contained in some of the emails, or to surrender any of their personal or payment details.
A spokesman for HMRC said: ‘The email is a sophisticated attempt at internet fraud and it is very important that anyone receiving it does not reply or provide any personal details whatsoever.
‘We are liaising closely with those agencies working to close down and prosecute those behind these scams. If you are in any doubt about a communication claiming to be from HMRC please contact us.’
Suspicious HMRC emails can be forwarded to phishing@hmrc.gsi.gov.uk.

posted by BusinessBods.co.uk @ 06:37 0 Comments

Banks must disclose 'all offshore account details' to Revenue

Over 300 banks and financial institutions have been ordered to pass the details of those customers who hold offshore accounts to HM Revenue & Customs (HMRC).
The legal ruling means that HMRC can now issue compulsory disclosure notices to the banks, ahead of its New Disclosure Opportunity (NDO).
The NDO offers people with unpaid taxes linked to offshore accounts or assets a final opportunity to make a complete disclosure, at favourable penalty rates. Those taxpayers who were not contacted by HMRC under the previous Offshore Disclosure Facility (ODF), in 2007, will be offered a penalty rate of 10%. Those who were contacted during the ODF but did not take advantage of the scheme will be offered a 20% penalty rate.
To use the scheme, a notification of the intention to disclose must be made to HMRC between 1 September and 30 November 2009. Those taxpayers notifying on paper can do so from 1 September to 30 November, while those notifying electronically can do so from 1 October to 30 November.

Disclosures can be then made from September 2009 to January 2010 on paper, or from October 2009 to 12 March 2010 electronically.

Once the NDO ends on 12 March, those taxpayers who have failed to come forward will be pursued by HMRC and will face penalties of between 30% and 100%, together with an increased risk of prosecution.

posted by BusinessBods.co.uk @ 06:36 0 Comments

Business issues warning following sick leave ruling

The Confederation of British Industry (CBI) has warned that a recent landmark ruling on sick leave by the European Court of Justice could leave employers open to abuse by unscrupulous staff.

The ruling means that employees who suffer illness while on annual leave could be entitled to reclassify their time off as sick leave, and be granted annual leave for a different period.

Katja Hall of the CBI said, 'Many firms already take a common-sense and sympathetic approach. But allowing employees to reclassify their holiday as sick leave opens the door to abuse'.

Meanwhile, the Chartered Institute of Personnel and Development (CIPD) warned that the ruling could force employers to abandon occupational sick pay schemes, in favour of statutory schemes.

The CBI is calling for employers to be given the right to ask for a medical certificate, should the ruling become law.

posted by BusinessBods.co.uk @ 06:34 0 Comments

Government to introduce new 'broadband tax'

Controversial plans to introduce a tax on landlines are set to be become law before the next election, the Government has announced.

Under the scheme, everyone with a fixed line telephone will pay a levy of 50 pence a month.

The 'next-generation fund' will generate up to £175 million a year, and will be used to subsidise the cost of making high speed broadband networks available nationally.

The Government aims to give more than 90% of the country access to next generation broadband, by the year 2017.

Treasury minister Stephen Timms has confirmed that the tax will be included in the next Finance Bill.

However, opponents of the scheme have argued that many consumers have already been hit by recent increases in line rental charges, and are calling for the burden of digital investment to be shared between businesses and consumers.

posted by BusinessBods.co.uk @ 06:31 0 Comments

Raft of new legislation comes into force

A raft of new regulations, including changes to the National Minimum Wage (NMW), came into force earlier this month.
From 1 October, employers are banned from using tips and service charges to bring the wages of bar and restaurant workers up to the minimum salary.
The change follows a recent case in the Court of Appeal, in which the judge concluded that employers must not take into account tips, gratuities, service charges or cover charges when paying the NMW, unless these are paid to employees through the employer’s payroll.
It came on the same day that the main adult rate of the NMW rose by 7p an hour to £5.80. Workers aged 18-21 are now guaranteed a minimum rate of £4.83 – up from £4.77. For 16 and 17-year-olds, the rate has gone up to £3.57 an hour.
In addition, businesses will now have to abide by new rules set out in the Companies Act 2006.
With the final sections of the Act coming into effect last week, the biggest overhaul of company law is now complete. Key provisions of the Companies Act 2006 include:
Creating separate and simpler model Articles of Association for small companies, reflecting how they operate
Enabling greater use of electronic communications with shareholders, therefore avoiding unnecessary cost and time consuming administration
Making it an offence to carry on business in the UK under a name that gives so misleading an indication of the nature of the activities of the business as to be likely to cause harm to the public.
If you think the new regulations may affect you, please contact us.

posted by BusinessBods.co.uk @ 06:31 0 Comments

Deadline approaching for paper Tax Returns

Individuals are being reminded that they have until 31 October to file their paper Tax Return.

HM Revenue and Customs (HMRC) is alerting people to the impending deadline, which is now just weeks away.

Those who miss the deadline will need to file electronically, or incur a £100 late filing penalty. Any paper Returns submitted after this date will also miss the deadline for HMRC to calculate the amount of tax owed, meaning the tax will have to be worked out by the taxpayer themselves.

If the tax that is owed is less than £2,000 it can be collected through the individual’s tax code where possible.

Meanwhile, online Returns may be submitted up until 31 January 2010. Once again, electronic Returns submitted after the deadline will attract a penalty, with further charges possible if the Return remains outstanding.

This is the second year that the 31 October paper deadline has been in place. Previously, the deadline for filing both paper and online Tax Returns was 31 January.

It was hoped the change would encourage more people to file their Return online and thus reduce the Revenue’s costs. The new rules marked the most significant reform of the self assessment tax system since its introduction more than a decade ago.
We can help you prepare and file your Tax Return with HMRC – please contact us more information and advice.

posted by BusinessBods.co.uk @ 06:29 0 Comments

Banks to provide 'more clarity' on account charges

UK banks have agreed to provide clearer information to customers regarding current account charges, and to introduce measures which will make it easier for them to switch accounts.

Under the new measures, which are expected to come into force by 2011, banks will provide an annual summary of account charges, including information on how much customers have been charged for services such as overdrafts.

Bank charges will also be listed more prominently on monthly statements, and banks will make it easier to move direct debit payments to new accounts.

The changes follow a previous report from the Office of Fair Trading (OFT), which criticised the complexity of the information given by banks to their customers.

John Fingleton, OFT chief executive, said that the measures will help to improve customer awareness, and allow individuals to compare the benefits of different accounts in order to obtain better value for money.

'Banks will need to offer more competitive and innovative products and services to attract as well as retain customers', he commented.

posted by BusinessBods.co.uk @ 06:29 0 Comments

Interest rates 'set to remain low'

Interest rates are likely to remain at a low level for a number of years, a recent report has suggested.

The economic forecast from the Centre for Economics and Business Research (CEBR) predicts that the rate will stay at its current level of 0.5% until 2011, reaching 2% in 2014.

The CEBR also forecasts that the pound is likely to weaken further, with the possibility that it could fall below one euro.

The report makes the assumption that the UK budget deficit will be cut by £100bn over the next parliament, with a combination of £80 billion of spending cuts, and tax rises to the tune of £20 billion.

Douglas McWilliams, CEBR chief executive, said, 'We are likely to see an exciting policy mix, with the fiscal policy lever pulled right back while the monetary lever is fast forward'.

'We are likely to see a major re-rating of equities and property which in turn should stimulate economic growth after a lag'.

The Bank of England has held interest rates at a record 0.5% for seven consecutive months.

posted by BusinessBods.co.uk @ 06:28 0 Comments

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