Archive for December, 2010

Class 2 NIC Changes

Monday, December 6th, 2010

Changes to payment dates – Class 2 National Insurance contributions

From April 2011, payments for your Class 2 National Insurance contributions will become due on 31 January and 31 July, the same as a Self Assessment tax bill.

Payments made by internet/telephone banking, CHAPS, Bank Giro, Post Office or post
You will receive just two payment requests from HM Revenue & Customs (HMRC) in the year (instead of four bills) in October and April, showing payments due by 31 January and 31 July respectively. You do not need to wait until the due date to make payment.

Payment made by Direct Debit
To meet the new due by dates, collection of monthly Direct Debit payments will be delayed by HMRC to bring the payment dates into line. This means that:
• for the first year only, monthly Direct Debits will stop for a short period and then start again
• Class 2 contributions due for April 2011 will be requested from your bank in August 2011
• payments thereafter will be monthly unless you choose to pay 6 monthly from April 2011

A new option to pay by 6 monthly Direct Debit, collected in January and July each year, will be available from April 2011 for those who do not wish to spread their payments.

For those affected by these changes detailed information will be issued via a series of special mail shots in the coming weeks.

Change of our company name

Wednesday, December 1st, 2010

You may notice that there has been a slight change to our invoices from this month onwards.

I have now changed the name of my company from Accountancy Brown Capper Limited to ABC North East Limited.

This will not affect your payments or invoicing in any way.

Thanks

Dawn

Increase in VAT Rates

Wednesday, December 1st, 2010

The standard rate of VAT is currently 17.5 per cent but will be increased to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

For those businesses on the Flat Rate VAT Scheme the new rates can be found on the following website.

HMRC VAT Increase