Business Newsletter Spring 2011
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01 April 2011
2011/12
Record keeping
The Revenue has now announced that it feels it loses out on tax because small businesses’ records are not good enough! This is their rationale to increase the number of enquiries it will open in the coming few years with no other reason than “ an enquiry into the record keeping “.
I do try to offer some proactive advice after preparing your Accounts every year - how a little tweek could make my job easier! – and will be definitely focussing on this but in the meantime do have a look yourself at the way you recognise and record your sales and expenses and give me a call if you want to discuss any changes.
VAT Increase
Changing the VAT rate again has made the sums easier but increased the cost of services – however no one really noticed the decrease to 15% and against a background of spiralling fuel costs for example hopefully no one will have seriously challenged your increase.
Increased costs are going to be the feature of this year and all of us will have to consider increasing our prices anyway as well as making yet more efficiencies.
I am bombarded with offers of alternative services which I find little time to follow up – if anyone does follow up a switch to a new energy or phone or whatever supplier please could you share your findings on the website guestbook!
Real time PAYE
Following the success – for the Revenue! - of the imposition of real time CIS and VAT with online Returns and payments due within a tight time framework PAYE is next over the next two fiscal years
Already the computer will assume that a payment is due and send very heavy letters if nothing is paid; now we will be expected to inform the Revenue online of the monthly liability anyway!
Abolition of the default retirement age
The last notifications of retirement must be issued by 6 April 2011 and the date of retirement be before 1 October 2011.
The practical issues for an employer are of course succession and promotion planning and developing performance and consistency management systems.
Pension funding for employees
The gradual introduction of mandatory automatic enrolment into a pension scheme from 2012 to 2017 with employers contributing at least 3% of salary and bearing the costs.
Maternity and Paternity pay
From April 2011 if the mother does not take her full entitlement to statutory maternity leave the father will be allowed up to another 26 weeks of paternity leave to cover!
Flexible working hours
Can be requested from April 2011by all parents of children up to 18 and possibly from next year by any employee. Refusal can only be upheld if the request would have a significant commercial impact.
