Finance & Tax & VAT

VAT Annual Accounting Scheme

The scheme allows for VAT to be paid in nine monthly instalements, followed by a balancing payment.
For some businesses the scheme will be worth considering, especially if your business is seasonal, as the Annual Accounting Year could be timed to end shortly before your busy period.
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On-line filing for PAYE & VAT

Large and Medium sized employers will have to file their PAYE in-year forms (P45 & P46) on-line from April 2008.
For all other employers the due date will be April 2010.
Vat returns for traders with an annual turnover of more than £5.6 million will have to file on-line after 31 March 2008, as will new traders.
Traders with an annual turnover of more than £100,000 will have to file on-line from 31 March 2010
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Late Payer Large Companies

There is a website that gives details of the payment record of large companies.
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Credit Card Fraud

To help retailers combat credit card fraud, CARDWATCH are offering a free Retailer Pack.  Telephone 0207 711 6200
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Small Business Rate Relief

Eligible companies with rateable values of below £5,000 get 50% rate relief.  The relief decreases on a sliding  scale by 1% for every £100 of rateable value from £5,000 to £10,000.   The closing date for application is 30 SEPTEMBER 2006.  Your local council will tell you if you qualify.
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Interest on Overdue Payments

Since 7th August 2002 large companies have been able to charge small businesses interest on overdue payments.
It has been reported that only 14% of small businesses are aware of this.
For a copy of the Users Guide to the Late Payments of Commercial Debts Act 1998, phone 0870 150 2500

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EU Funding

A guide with full details for small and medium sized enterprises on different sources of finance available can be found on www.businesslink.org
Hard copies are available from DTI publications — Tel: 0870 150 2500, reference URN 02/234

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Banking Reform

Implementation by 1st January 2003 was agreed by Ministers and 4 major clearing banks to provide free money transmission services or to pay interest on current accounts for small and medium sized customers in England and Wales

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Credit Card Terminals

Due to the introduction of PIN and chip at point of sale from 2003, traders who operate their own integrated point of sale systems as opposed to rented bank owned terminals) need to take some action. Retailers with unconverted equipment will be liable to counterfeit fraud after January 2005

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Small Claims on line

Small businesses, consumers and solicitors can make claims for less than £100,000 on the Internet at www.courtservice.gov.uk/colCourt
 Fees can be paid by credit card and progress checked on the Internet. Uncontested claims eliminate unnecessary paperwork

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Enterprise Bill

Proposals will result in Banks no longer being able to put defaulting borrowers into receivership and the Inland Revenue and Customs & Excise will no longer have first claim on assets of insolvent companies. New proposals are that all creditors can stake a claim and vote on best action for all concerned

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New Bank Code

The big banks have agreed a code with the office of fair trading which will regulate how they handle the accounts of small firms which switch to a rival. The new rules will take effect from the end of 2003.
Banks will have three days to transfer account information and up to five days to transfer balances.
Banks who sign up new customers will have three days to request a funds transfer and clear any balances and four days to set up the accounts

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Long Service Awards

Their is a tax free allowance for awards to long service employees provided the gift does not exceed £50 for each year of service
and that the employee has completed 20 years service
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