THE END OF PAPER VAT RETURNS?
HMRC’s VAT Notes 4 warn that the phasing out of paper VAT returns starts in just over a year from now. From April 2010 all businesses with annual VAT exclusive turnover will have to file their VAT returns online, and any business registering for VAT will move straight to electronic returns. Businesses making their returns online will also have to pay their VAT by direct debit, but this facility allows extra time for payment, so that the VAT is not paid until at least the 10th of the following month.

BUSINESS PAYMENT SUPPORT SCHEME
The Business Payment Support Scheme has been a huge success. Businesses struggling to meet tax payments can contact special advisers at HMRC who will generally agree a time to pay arrangement within ten minutes on the telephone. Interest will be charged on any late paid tax, but penalties which would normally apply to late payment will not be charged. However, it is important that any business seeking extra time to pay tax liabilities contacts the scheme as early as possible, and sticks to the arrangement made. The telephone number is 0845 302 1435 and the scheme is available until 8pm on weekdays.

HMRC INTEREST RATES REDUCED
HMRC has reduced the interest rates charged on late paid tax, and also reduced the supplement paid when taxpayers overpay their liabilities. Unfortunately, this now means that the rate paid on overpaid income tax and similar amounts is now zero per cent. Further reductions in the bank base rate will not therefore see any further reduction in the rate paid – new legislation has had to be introduced to prevent the rates from becoming negative in the event of further bank rate reductions. Different rates apply to corporation tax, as the resulting interest is taxable on a company. The current rate charged on late paid income and capital gains tax is 3.5%, and on underpaid instalments of corporation tax 2.5%. Late paid corporation tax not due by instalments is also charged at 3.5%.

]]> http://ukvirtualassistant.co.uk/small-business-update/feed/ 2 http://ukvirtualassistant.co.uk/merry-christmas-and-a-very-happy-new-year/ http://ukvirtualassistant.co.uk/merry-christmas-and-a-very-happy-new-year/#comments Wed, 24 Dec 2008 06:30:01 +0000 Kerry http://www.bizpro-ltd.com/bizpro-blog/?p=116 This one’s a relatively short post, but if you are reading this, then I’d like to say thank you for reading my blog – I truly do wish you the very best for Christmas and New Year,  here’s hoping 2009 is your best yet!