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March 2010 - E-NEWS
Please browse through this month’s articles using the links below and contact us if any issues or questions arise.
- New record for filing online tax returns
- Not enough help for small companies
- Vehicle scrappage
- Inflation
New record for filing online tax returns
According to HMRC statistics a record number of taxpayers filed their Self Assessment tax returns online this year.
Apparently 6,429,899 people filed online by 31 January 2010 deadline. This number was three quarters of all returns submitted and was an increase of nearly 12% on the 2009 total of 5.8 million.
Financial Secretary to the Treasury, Stephen Timms said:
"More people than ever before are now filing their tax returns online. It’s easier, quicker and HMRC processes your return faster, so any money you’re owed is repaid more quickly. If you haven’t yet made the switch from paper to online, do so, and join the millions who are benefiting already."
Internet link: Press release
Not enough help for small companies
New figures revealed the government was behind almost half of all court petitions seeking to wind up companies, are HM Revenue and Customs (HMRC) doing enough to help small firms?
The Guardian newspaper reported that HMRC had been behind 43% of creditor petitions that sought to close down companies in order to recover debts over the last six months.
This is despite calls from ministers for other creditor groups, such as banks, to do everything possible to avoid letting businesses fail, and reflects the government’s dilemma between recovering the tax revenue it needs and providing some breathing space for overstretched firms.
HMRC can offer ‘time to pay’ agreements for firms which are struggling to pay their tax bills, but is likely to be more sympathetic if it receives advanced warning of potential problems.
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.
The government has announced that the deadline for the end of the Vehicle Scrappage Scheme has been extended from the proposed February 2010 to March 2010. The extension is to allow manufacturers and dealers more time to prepare for and operate the final phase of the scheme.
The scheme, which is jointly run by the government and car manufacturers, will now run until the end of March 2010 or until the funding is exhausted, whichever is the sooner.
Business Secretary Lord Mandelson said:
“Against the background of the economic downturn the Scrappage Scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most.”
“If you’re considering buying a new car, you should place your order as soon as possible to avoid disappointment, because the budget is strictly limited.”
Internet links: Press release and Scrappage website
Government figures released show that the inflation rate increased to 3.5% in January 2010 from the previous month’s figure of 2.9%.
The Consumer Prices Index (CPI) inflation percentage was affected by both the VAT rate returning to 17.5% and higher fuel prices.
The Retail Prices Index (RPI) inflation which includes housing costs rose to 3.7% in January 2010 (from 2.4%).
Internet link: BBC news
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