Nunn Hayward - January 2007

Abacus January 2007

One New Year’s Resolution You Will Want to Keep

Higher penalties for taxpayers who deliberately understate or mislead on their tax returns are set to be introduced.

HMRC have released a consultation document setting out how they plan to increase penalties for deliberately submitting incorrect tax returns, whilst introducing leniency on penalties if reasonable care has been taken to provide correct information.

The new consultation includes details of proposals for:

A single penalty structure for income tax, corporation tax, PAYE, national insurance contributions and VAT.
No penalties where a taxpayer has taken reasonable care and has made a genuine mistake.
A moderate penalty if a taxpayer fails to take reasonable care.
Higher penalties if a taxpayer deliberately understates their liability.
Higher penalties still, if a taxpayer covers up any deliberate understatement.
Substantial reductions or even complete waiver for voluntary disclosure and co-operation.
Smaller reductions or suspended penalties if a taxpayer discloses an irregularity at a time when they had reason to believe HMRC suspected it; or for taxpayers who fail to take reasonable care when completing their returns but agree to take steps to ensure that the problem will not recur.

This, combined with the confirmation that paper personal tax returns will have earlier filing deadlines commencing 2008, sends a clear message:

Correctly complete your Tax Return as soon after 5th April or else . . . . ?

Anyone who has become used to doing their tax return in November, December or even January (we know who you are!) make a diary note for April or May 2007 to send in your tax information before you go on holiday. Not only will you avoid the risk of (increased) penalties and interest, but you will benefit from knowing your tax position well in advance of 31st January and where planning is appropriate, you will have time to consider and implement these plans.

If you have any queries regarding the above please contact Steve Cook, Tax Partner at steve@nunn-hayward.com or call on 01753 888211.

Companies House Act 2006 - New Ruling for Business Stationery Extended to Include Electronic Format

As from 1st January 2007 the ruling for business stationery has been extended to include electronic or any other form of correspondence.

As a reminder listed below are the criteria required for hard copy business stationery: -

A company must state its name, in legible lettering, on the following –

all the company’s business letters;
all its notices and other official publications;
all bills of exchange, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by, or on behalf of, the company;
all its bills of parcels, invoices, receipts and letters of credit

The rules have been extended to include the following when using electronic or other forms of correspondence: -

On all of its business letters, order forms or any of the company’s web sites*, the company must shown in legible lettering

place of registration
registered number
registered office address
and if it is being wound up, that fact,

*A web site is not a company’s web site if its content is determined solely by persons other than the company, or it does not relate to the company, its business or operations.

The above also applies to Limited Liability Partnerships.

If you have any queries regarding the above please contact David Duke, Accounts Partner at david@nunn-hayward.com or tel: 01753 888211.

Source of information Companies House January 2007

New VAT Reverse Charge Measure – Update

What has changed?

Our edition of Abacus in November 2006 announced that, subject to obtaining derogation from the EU, the UK Domestic Reverse Charge provisions to tackle Missing Trader Intra-Community and carousel fraud were to come into force on 1 December 2006, affecting a wide range of electronic goods and components. At a recent meeting of EU Finance Ministers the proposal was discussed but, as a result of opposition, principally from the French Tax authorities, was not approved.

As reported in the Press over recent days, the French Authorities have now withdrawn their objections to the derogation. Assuming that there are no further objections we understand that HMRC are hoping shortly to announce the start date for the new measures. This will be subject to formal ratification of the derogation at the ECOFIN meeting later in January 2007.

HMRC previously announced that businesses would have a period of eight weeks from the date of their announcement in which to make the necessary systems and accounting changes. We believe based on specialist commentary that the start date for the reverse charge could be as early as 15 February 2007.

If you have any queries regarding this article please contact Steve Cook, Tax Partner, steve@nunn-hayward.com or call 01753 888211.

Important Tax Dates

Janurary 2007
31	-	First self assessment payment on account for 2006/07
	-	Capital Gains payment for 2005/06
	-	Balancing payment - 2005/06 Income Tax/class 4 NICs
	-	Last day to file the 2006 Tax Return



February

1	-	£100 penalty if 2006 Tax Return not yet filed. Additional penalties may apply for further delay
2	-	Last day for notifying car changes in quarter to 5 January - P46 (Car)

28	-	Last day to pay any balance of 2005/06 and Class 4 NIC to avoid an automatic 5% surcharge.

Please contact us to discuss the above further

Tel: 01753 888211 Fax: 01753 889669 Email: abacus@nunn-hayward.com
Nunn Hayward, Sterling House, 20 Station Road, Gerrards Cross, Bucks SL9 8EL.

Chartered Accountants, Registered Auditors and Insolvency Practitioners. This publication has been prepared as a guide only to topics of current financial and business interest. It is not intended to be a substitute for professional advice. No responsibility for loss occasioned to any person acting or refraining from acting as a result of any material in this publication can be accepted by either the authors or Nunn Hayward. All rights reserved.

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