Our newsletter this month includes articles on the new car scrappage scheme, P11D deadline reminder, announcement of a new tax amnesty and finally notice of changes to car tax benefits.
Car scrappage scheme starts 18 May 2009
In exchange for scrapping your old vehicle and buying a new one the Government and most car manufacturers will contribute a total of £2,000 towards the purchase of a new vehicle – the scheme will run from 18 May 2009
The scheme will be available to the first 300,000 eligible claimants or until 28 February 2010, whichever is sooner.
To qualify the vehicle you are trading in must:
The new vehicle you want to buy must be:
The allowance is funded by a £1,000 subsidy from the Department for Business, Enterprise and Regulatory Reform (BERR) and a further £1,000 discount paid for by the manufacturer.
In most cases, VAT cannot be reclaimed on a car purchase even by VAT registered businesses so the discount will only have the effect of reducing the car’s purchase price. However, certain VAT registered customers may have to reduce their input tax in respect of the manufacturers’ discount. This will only be the case where VAT can be reclaimed on the purchase of a car such as for the purchase of a taxi or a driving instructor’s car.
If you are buying a business vehicle under this scheme please note the following points regarding a future claim for capital allowances.
P11D filing deadline approaches
Employers should be aware that the filing dates for 2008-9 P11D and P11D(b) is 6 July 2009. Those employers who filed a paper P11D(b) form last year are currently being sent new paper forms and a payslip.
All relevant businesses should receive these forms by 15 June 2009.
Businesses who submitted online forms last year are being sent a payslip and an online reminder to file the form before the deadline.
This year, a new quality standard for the P11D forms has been introduced. This means that paper forms that are not properly completed will be returned and online submissions must be fully complete before submission is possible. The quality standards are designed to check that the employer reference is included, that employees’ names and National Insurance numbers are completed and that the list price of any car provided to an employee is shown on the form etc.
Businesses filing online can file the forms using commercial payroll software or HMRC’s online facility.
Updates from HMRC
HMRC have announced a second offshore tax amnesty for holders of overseas bank accounts. It will be referred to as the New Disclosure Opportunity and will close March 2010.
Text messages from HMRC
HMRC are currently exploring new ways of making contact with taxpayers. This includes HMRC leaving an automated voicemail or sending a text message. Both of these methods are currently only being used to ask taxpayers to call HMRC rather than to provide any other specific advice or information.
If you receive an automated voicemail message or a text message claiming to be from HMRC asking you to contact them use the number for your local office or the telephone numbers on the official HMRC web site at www.hmrc.gov.uk.
Car benefit changes
A number of changes to the tax calculations for company cars have been announced over the last few months and during the Budget.
For the current 2009/10 tax year please note the following changes:
From 2010/11 the lower threshold for CO2 emissions figure will be reduced to 130g/km (from 135g/km).
From 2011/12 the lower threshold for CO2 emissions figure will be reduced to 125g/km. In addition, the current £80,000 list price cap used to calculate the company car tax will be abolished and current discounts given to cars using alternative fuels (such as bio-fuels and bioethanol) will be removed.
Tax Diary June/July 2009
1 May 2009 – Due date for corporation tax due for the year ended 31 July 2008.
1 June 2009 – Due date for corporation tax due for the year ended 31 August 2008.
19 June 2009 – PAYE and NIC deductions due for month ended 5 June 2009. (If you pay your tax electronically the due date is 22 June 2009)
19 June 2009 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2009.
19 June 2009 – CIS tax deducted for the month ended 5 June 2009 is payable by today.
1 July 2009 – Due date for corporation tax due for the year ended 30 September 2008.
6 July 2009 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NIC’s.
6 July 2009 – Deadline for submission of new Tax Credit application for 2009-2010, if you want to secure a full years claim.
19 July 2009 – Pay Class 1A NIC’s (by the 22 July 2009 if paid electronically).
19 July 2009 – PAYE and NIC deductions due for month ended 5 July 2009. (If you pay your tax electronically the due date is 22 July 2009)
19 July 2009 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2009.
19 July 2009 – CIS tax deducted for the month ended 5 July 2009 is payable by today.