VAT, Bank Compensation Scheme, Companies House Fees, PAYE and Corporation Tax

VAT and Bank Interest you receive

It has been established that where the business pays VAT under the Flat Rate Scheme (FRS) it must include any bank interest it receives in Box 6 of the Return and so pay VAT on it at the relevant percentage.

Recently it has been shown that such interest is actually ‘outside the world of value added tax’ so that no VAT payment is due on it unless, basically, you operate much like a Bank. If the interest is ‘incidental’ then you have no liability.

Bank Compensation Scheme

The maximum amount of compensation payable under the Financial Services Scheme has increased to £85,000 since 1 January 2011 - if you remember at the time of the ‘Bank Crash’ this was only £50,000.

Fees paid to Companies House

The amount of its fees has changed from 6 April 2011 – for more detail visit:

www.companieshouse.gov.uk

PAYE Under- Over payments

The Revenue’s new systems highlighted these errors some time ago which affected the years 2008/09 and 2009/10 and all the notifications should have been received by the taxpayers by now.  Now it appears that the Revenue is raising Notices affecting people for the 2007/08 year. This affects 450,000 people.

The good news is that it will not collect amounts due where it is less than £300 in each of those years!

Corporation Tax – Electronic Payment and Filing

Basically, after 1 April 2011 all returns and payments must be made online.

If you would like further details on any of the points mentioned, please contact us.