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February 2010 - E-NEWS
Please browse through this month’s articles using the links below and contact us if any issues or questions arise.
- Bankruptcy is too easy
- Using your own car for work
- Statutory payments
- Dispensations - new online application form
- HMRC new scam emails
Changes to the bankruptcy laws announced in January 2010 have attracted criticism that the procedure is becoming too easy, with little penalty for individuals who are unable to pay their debts.
Alan Williams, Managing Director, says: “The government has announced that debtors will soon be able to apply for bankruptcy by post or online, bypassing the court system altogether. This follows the recent reduction in the time it takes to be discharged from bankruptcy to 12 months, and this year’s decision by the Insolvency Service to stop publishing the names of debtors in appropriate journals.”
However, critics have argued that with little stigma attached to bankruptcy, the system now provides no incentive for people to try to pay their debts off first, and only use bankruptcy as a last resort.
In addition, easier bankruptcy could result in fewer people using Individual Voluntary Agreements (IVAs), where they enter an arrangement to pay back a proportion of their debts, but get to keep their assets. However, since these must be arranged through a licensed Insolvency Practitioner, they may prove more difficult to arrange than bankruptcies.
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
The new Statutory Payment Rates for 2010/11 have been announced. The new rates are as follows:
The current Statutory Sick Pay (SSP) weekly rate of £79.15 is being retained for 2010/11.
The Statutory Maternity Pay (SMP) standard rate will be £124.88 for payment weeks beginning on or after 4 April 2010. The current rate is £123.06.
The same weekly rate applies to Statutory Paternity and Statutory Adoption Pay.
If you would like any help with any of these statutory payments please do get in touch.
Internet link: Business link statutory payment rates
Dispensations - new online application form
HMRC have introduced the facility to apply for dispensations online.
Where an employer has a dispensation they do not have to report expenses and certain benefits to HMRC on forms P9D or P11D at the end of the tax year. Where employers have a dispensation in place this can be time saving.
If you would like to discuss applying for a dispensation please do get in touch.
Internet link: HMRC guidance on dispensations
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.
The email includes a link to a fraudulent website which asks the taxpayer for their personal account information and password. HMRC are advising that the email is not from them and that anyone receiving a copy should forward it to them at phishing@hmrc.gsi.gov.uk
Internet link: HMRC scam email example
HWB
Chartered Accountants, Highland House, Mayflower Close, Chandlers Ford, Eastleigh,
Hampshire, SO53 4AR.
