Business Alert April
Interest rates on tax cut again. PAYE online filing - get ready. Tax haven developments.
01.04.2009
Interest rates on tax cut again. PAYE online filing - get ready. Tax haven developments.
INTEREST RATES ON TAX CUT AGAIN
HMRC has announced that all of the rates of interest charged on late paid tax will reduce again from March to reflect bank base rate reductions. From 16 March interest charged on corporation tax payable by instalments (by larger companies) reduces from 2 per cent to 1.5 per cent. All other interest rates will reduce on 24 March, with the rate charged on late paid income tax, NIC and VAT (and other main taxes and duties) reducing from 3.5 to 2.5 per cent. When tax is overpaid the current rate of interest paid by HMRC reduced to 0 per cent in January – this remains the rate payable on all repayments except early payment of current corporation tax liabilities (including overpaid instalment payments) for which the applicable rate reduced from 0.75 per cent to 0.25 per cent on 16 March.
TAX HAVEN DEVELOPMENTS
This month, there has been a number of developments regarding tax havens. A new Tax Information Exchange Agreement was signed between the UK and Jersey on 10 March 2009; this agreement also amends the 1952 double taxation treaty with Jersey, but the information agreement is of crucial importance. On 12 March, Liechtenstein agreed to sign up to the OECD standards of transparency, which will allow the eventual agreement of a Tax Information Exchange Agreement with the UK. There are also indications of significant movement by the Swiss Government to come into line on exchange of information, and HMRC’s announcement indicates that the pressure to provide additional information will now accelerate.
PAYE ONLINE FILING – GET READY
As the new tax year approaches, HMRC have once again reminded employers with 50 or more staff that they must file their in year staff movements online from 6 April. This means that forms P45 and P46 must be filed online for all changes on or after 6 April. There will not be penalties for failure to file online initially, but these will be introduced later this year. Employers will need to collect employee date of birth in addition to the normal information on engagement, and the new P46 also requires the gender of the employee to be stated. This will not normally be needed where the employee brings a P45 from his previous job.
Related links:
- Financial Insights 2009 - the key business and economic issues you will face in the year ahead >more
- Business Briefing - Insulating your business against the downturn >more
- Charity Briefing - Survival planning >more
- Tax planning in a recession - a range of ideas and solutions to help you to protect profitability >more
