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Tax Update Bulletin - June 20081. The benefit in kind loan official rate has been frozen for 2008/09 at 6.25% per annum (only subject to review in the event of significant interest rate changes). This rate is principally used where a director or employer has an interest free loan from the company and similarly when a company provides accommodation, which could be assessed partially in this way. 2. From 6 April 2008 H M Revenue & Customs have increased the tax and National Insurance free guidance rates which employers can pay for home working employees, without the need to keep any records, from £2 per week to £3 per week. 3. The tax returns for the year to 5 April 2008 have now been issued, or a notice to complete a tax return has been issued by H M Revenue & Customs. The returns this year for individuals take on a much more computerised document look as H M Revenue & Customs seek to encourage everyone to file online. They have also shortened the time limit to 31 October 2008 for paper tax returns to be completed, beyond which an automatic penalty is levied, which will only be released once all tax is paid by 31 January 2009. This all helps to reduce the H M Revenue & Customs workload, as they are increasingly reducing their numbers. 4. From 1 June 2008 the advisory fuel rates, which can be paid by employers for business miles, principally where a car is provided by an employer but the fuel is all paid for privately and the employee is reimbursed for the business miles, have been altered: Petrol Diesel LPG 1400cc or less 12 13 7 1401 – 2000 cc 15 13 9 Over 2000 cc 21 17 13 5. The enquiry window time limits have been altered for 2008/09 returns, such that if those returns are filed on time then the enquiry window ends after 12 months from the date of the filing, not 31 January 2010, which would have been the standard time. These limits are extended if filing is late. 6. The Capital Gains Tax annual exemptions have been announced for 2008/09 at £9,600 for an individual and £4,800 for trustees per trust, subject to the usual restriction of this allowance, where there are common settlor trusts established. 7. The filing deadline for completed forms P11D to return expenses and benefits for directors and employees is 6 July 2008, with a penalty up to £300 for late submission and with any Class 1A National Insurance due by 19 July 2008. Interest runs on unpaid Class 1A after 19 July 2008. |
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