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Business News - February 2010
Executive cars
Those driving the most expensive company cars will face steep tax increases from 6 April 2011. The current rules place a cap of £80,000 on a car's list price which is used as the basis for calculating the car benefit charge. This cap will be removed from 6 April 2011. So let us suppose that a company director drives an AMG S Class Mercedes Saloon with a list price of just over £153,000. The taxable benefit of such a car will rise from £28,000 to a breathtaking £53,550 from 6 April next year.
The Tax Health Plan (THP)
HMRC have obtained information from various sources, including NHS trusts, private hospitals and medical insurers and are introducing the THP as an opportunity for medical professionals with tax to pay to get their affairs up to date with the benefit of a fixed penalty.
HMRC New Scam Emails
HMRC have issued a warning about a new scam email which is being sent from ‘HMRC Online Services – test@test.com’ stating that the recipient has one new ALERT message and should log onto their Online Account to read the message.
Employment Rights - Statutory Limits
The limit on the amount of the compensatory award for unfair dismissal is set to decrease from 1 February 2010. The current maximum of £66,200 is to reduce to £65,300, due to the decrease in the retail prices index measure of inflation. This new limit applies where the event giving rise to the entitlement to the payment arose on or after 1 February 2010.
Dispensations - New Online Application Form
HMRC have introduced the facility to apply for dispensations online.
Tax Codes Being Issued
HMRC are advising employees that between January and March 2010 they will be issuing new PAYE coding for 2010/11. The tax codes should reflect the individual’s personal circumstances and include the tax allowances and reliefs that individuals are entitled to.
Scrappage Scheme
The Vehicle Scrappage Scheme is a voluntary scheme for motor dealers under which participating dealers give buyers a £2,000 discount off the purchase price of a new car (or certain types of small van) in exchange for scrapping their old qualifying vehicle.
Statutory Payments
The new Statutory Payment Rates for 2010/11 have been announced.
Using Your Own Car For Work
HMRC have updated their guidance on using your own vehicle for work. The guidance needs to be read in conjunction with the mileage rates which for those using their own car for work purposes are unchanged at 40 pence a mile for the first 10,000 miles dropping to 25 pence a mile thereafter.
Internet links: HMRC factsheet mileage and HMRC mileage rates
Tax Payments
For those making tax and national insurance payments, HMRC are reminding that their bank details changed last year. To confirm that you are making payment to the correct bank account please visit the link below.
Internet link: HMRC bank details
