<html> <head> <meta http-equiv=Content-Type content="text/html; charset=unicode"> <link rel=Edit-Time-Data href="December08_files/editdata.mso"> <link rel=themeData href="December08_files/themedata.thmx"> <link rel=colorSchemeMapping href="December08_files/colorschememapping.xml"> <style> <!-- .Section1 {page:Section1;} --> </style> </head> <body bgcolor="#FFFFFF" link=blue vlink=purple class="Normal" lang=EN-GB> <div class=Section1> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width="100%" class="Normal"><p><a name=top></a><b><span style='font-size:14.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;&quot;Times New Roman&quot;'>Northams Chartered Accountants</span></b></p></td> <td class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman"'><img id="_x0000_i1025" src="406.jpg"></span></p></td> </tr> </table> <div style='border:solid gray 1.0pt;padding:1.0pt 1.0pt 1.0pt 1.0pt' width="100%"> <div style='border:solid black 1.0pt;padding:4.0pt 4.0pt 4.0pt 4.0pt' width="100%"> </div> </div> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1026" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Newsletter December 2008</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1027" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>In our newsletter this month we have included a few practical tips for accommodating the reduction in the VAT standard rate to 15% on 1 December 2008, a note of the VAT consequences for house builders who rent out property, a reminder of the increased late filing penalties for companies and a commentary on the National Minimum Wage as it affects directors of small companies.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Our first newsletter for 2009 will be published on Tuesday 13 January.</span></p> <p></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1034" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Business is good but we would like more!</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1035" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Generating new business is always a costly exercise for any business and it is no different for accountants.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>One of the&nbsp;better ways for us to get a new client is to be introduced by an existing client or contact.&nbsp; This is far more cost effective in terms of our time compared to other forms of marketing.&nbsp; This&nbsp;in turn helps avoid wasting time on less effective marketing activities which can otherwise be spent dealing with the needs of existing clients.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Therefore, if know of any business who might benefit from the services we can offer, please e-mail Colin Gillard&nbsp;at <a href="mailto:colin@northams.com"><span style='font-size:10.0pt'>colin@northams.com</span></a> with their contact details.&nbsp; Colin is only too pleased to see a business for an&nbsp;informal no obligation meeting to see if we can be of help.</span></p> <p></p> </td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1038" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>VAT 15% - practical guidelines</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1039" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The Chancellor announced a reduction in the standard rate of VAT to 15% from 1 December 2008. This reduction will be effective for a fixed period of 13 months. From the 1 January 2010 the rate will revert to 17.5%.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>For VAT registered traders this creates a number of practical issues, some of which are highlighted in this article.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>1.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>All sales on or after 1 December 2008 should be charged plus 15% VAT.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>2.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>Zero rated, reduced rate and exempt sales or supplies are unchanged.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>3.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>Retail businesses should use the new 15% rate on all takings received on or after 1 December 2008 - except, if a customer took delivery before 1 December, in which case you should apply the 17.5% rate.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>4.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>If you supply goods to other VAT registered customers and need to issue tax invoices, you should add on 15% VAT to all invoices dated 1 December or later - except where you provided the goods or services more than 14 days before you issue the VAT invoice. For example, if you issue a VAT invoice on 1 December for goods or services provided before 18 November 2008, or you were paid before 1 December. In these cases, your sale takes place before 1 December and you must use the old rate of 17.5%. Note if you received part payment before 1 December, use the old rate for the part payment.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>5.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>Under the normal rules all invoices issued and all payments received before 1 December 2008 are subject to VAT at the old rate, 17.5%. There are also optional rules that you can adopt. See section 3 of the HMRC publication recommended at the end of this article for more information on these special rules.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>6.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>If you want to work out the 15% VAT charged in a VAT inclusive amount, multiply by the fraction 3/23.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>7.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>If you have point of sale tills etc that produce a VAT inclusive receipt you may need to contact your supplier to ensure the VAT rate applied is changed for sales after 1 December.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>8.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>If you want to reduce your current (pre 1 December) sales price to reflect the reduction in VAT to 15%, multiply your old price by 115/117.5, this is equal to 46/47.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>9.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>Do you have to pass on the reduction in VAT to your customers? The answer is no - its up to you.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>10.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>If your VAT return period does not begin on 1 December, you will have to account for VAT in the quarter which straddles this date accommodating both rates of VAT. If you use software to produce your VAT returns your supplier should be able to advise you on this. </span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>11.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Make sure that you follow your accounts software supplier's instructions, or give us a call if you need help regarding the change in VAT rate. </span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>12.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>If you operate a cash accounting scheme you will continue to pay VAT based on receipts from customers. If the amount you receive after 1 December 2008 is payment of an invoice including VAT at 17.5% (pre 1 December 2008) or 15% (post 30 November 2008) you must include the appropriate amount in your output tax calculation. Most accounts software programs that accommodate cash accounting will do this automatically.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>13.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>If you are registered to use the flat rate scheme there are new percentage rates you should apply from 1 December 2008. The new rates are published on pages 43 and 44 of the HMRC guide highlighted in the paragraph that follows.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>HM Revenue &amp; Customs have published a comprehensive guide to the VAT change. You can download it at: <a href="http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf"><span style='font-size:10.0pt'>http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf</span></a>. It is quite a large PDF document. If you need specific advice on any aspect of the change please call.</span></p> <p></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1042" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>House builders renting property</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1043" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Many building firms are now holding completed residential property which is proving difficult to sell in the current property market. One solution is to rent out this property for a short period in the expectation that property prices will recover.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Ordinarily most of the VAT paid on construction costs is recoverable. Unfortunately rents received from the letting of residential property are an exempt supply for VAT purposes. Accordingly a builder who both constructs and lets residential property is considered to be a &quot;Partially Exempt&quot; trader. Potentially a proportion of the VAT recovered on the construction work may have to be paid back!</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The builder may have to:</span></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>adjust the VAT recovered on his submitted VAT returns</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>restrict the VAT to be recovered on current and future VAT returns</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>or do both</span></li> </ul> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><br> Fortunately there is an escape route! If the amount of input tax which can be attributed to the exempt rental income is below a defined &quot;de minimis&quot; amount, no adjustment to past or future returns is required - VAT input tax can be recovered in full.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Provided the exempt input tax is below:</span></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>&pound;625 per month, on average, up to &pound;7,500 per year; and</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>is not more than half of total input tax ,</span></li> </ul> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>then the exempt input tax is de minimis and recoverable in full.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>If you are a house builder, and considering the rental of residential building stock, do contact us at an early stage so we can help you through the partial exemption calculations which are tedious and complex.</span></p> <p></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1046" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Company late filing penalties increasing from 1 February 2009</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1047" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Small limited companies are required to file a copy of their accounts each year with Companies House. If you file even one day past the filing deadline you will be penalised. The new late filing penalties which will be levied from 1 February 2009 are increasing dramatically! </span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The new fines for private companies are:</span></strong></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Not more than 1 month - &pound;150 (presently &pound;100)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>More than 1 month but not more than 3 months - &pound;375 (presently &pound;100)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>More than 3 months but not more than 6 months - &pound;750 (presently &pound;250)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>More than 6 months - &pound;1,500 (presently &pound;500 between 6 to 12 months, &pound;1,000 over one year)</span></li> </ul> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The new fines for public companies are:</span></strong></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Not more than 1 month - &pound;750 (presently &pound;500)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>More than 1 month but not more than 3 months - &pound;1,500 (presently &pound;500)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>More than 3 months but not more than 6 months - &pound;3,000 (presently &pound;1,000)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>More than 6 months - &pound;7,500 (presently &pound;2,000 between 6 to 12 months, &pound;5,000 over one year)</span></li> </ul> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Additionally if you were late filing in the previous year (and the previous financial year had begun on or after 6 April 2008) the above fines are doubled.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The new fines also apply to flat management and dormant companies.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The message is clear. If you are responsible for the management of a limited company make sure you give yourself plenty of time to prepare and file accounts on time.</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Filing deadlines</span></strong></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Companies with accounting periods beginning on or after the 6 April 2008 should note the following changes to the filing deadlines with Companies House.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>1.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>Private companies and LLPs - the delivery deadline has been reduced by one month from 10 to 9 months.</span></p> <p><span style='font-size:9.0pt;font-family: &quot;Arial&quot;,&quot;sans-serif&quot;;'>2.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp; </span></span><span style='font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; &quot;Times New Roman&quot;'>Public companies - the delivery deadline has been reduced by one month from 7 to 6 months.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Consequential changes include:</span></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Full calendar months for filing periods have been introduced. Where the accounting period ends on a month end date the accounts filing period will end on a month end date. (Except for the first accounting period)</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Qualifying companies can still file abbreviated accounts.</span></li> </ul> <p></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1050" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Directors and the National Minimum Wage</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1051" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>There are many directors of small companies that are effectively paid at rates lower than the National Minimum Wage (NMW). This is perfectly legal as long as the director concerned does not have a contract of employment. As soon as a contract of employment is signed the NMW must be applied.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>This choice, to be a contracted employee or not, also affects a director's eligibility for Working Tax Credit (WTC). </span></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>If you are a director with no contract of employment you will not qualify for WTC unless your partner works the required number of hours each week.</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>If you do have a contract of employment and pay yourself at least NMW for hours worked, you should qualify for WTC.</span></li> </ul> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>For ease of reference the current rates of National Minimum Wage are published below.</span></p> <p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The rates from 1 October 2008 are:</span></p> <ul type=disc> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Adults (which means people aged 22 and over), &pound;5.73 an hour </span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Workers aged 18-21, &pound;4.77 an hour - the 'development rate' </span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Young people (those older than school leaving age and younger than 18; you're under school leaving age until the end of summer term of the school year in which you turn 16), &pound;3.53 an hour</span></li> <li><span style='font-size:9.0pt;font-family:"Arial","sans-serif";"Times New Roman"'>Apprentices under the age of 19 are not entitled to the National Minimum Wage. Apprentices who are 19 or over and in the first 12 months of their apprenticeship are not entitled to the National Minimum Wage.</span></li> </ul> <p></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td width=2 colspan=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1054" src="box_tl.gif"></span></p></td> <td width="100%" class="Normal"><p align=center style='text-align:center'><b><span style='font-size:11.0pt;font-family:"Arial","sans-serif";"Times New Roman";color:black'>Tax Diary December 2008/January 2009</span></b></p></td> <td width=2 class="Normal"><p><span style='font-family:"Arial","sans-serif";"Times New Roman";color:black'><img border=0 id="_x0000_i1055" src="box_tr.gif"></span></p></td> </tr> <tr> <td width=1 class="Normal"></td> <td colspan=2 valign=top class="Normal"><p><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'><br> <strong><span style='font-family:"Arial","sans-serif"'>1 December 2008</span></strong> - Due date for corporation tax payable for the year ended 28 February 2008.</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 December 2008</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - PAYE and NIC deductions due for month ended 5 December 2008. (If you pay your tax electronically the due date is 22 December 2008)</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 December 2008</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - Filing deadline for the CIS300 monthly return for the month ended 5 December 2008 </span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 December 2008</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - CIS tax deducted for the month ended 5 December 2008 is payable by today.</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>1 January 2009</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - Due date for corporation tax payable for the year ended 31 March 2008.</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 January 2009</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - PAYE and NIC deductions due for month ended 5 January 2009. (If you pay your tax electronically the due date is 22 January 2009)</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 January 2009</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - Filing deadline for the CIS300 monthly return for the month ended 5 January 2009 </span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>19 January 2009</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - CIS tax deducted for the month ended 5 January 2009 is payable by today.</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>31 January 2009</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - Last day for electronic filing of Self Assessment returns for 2008</span></p> <p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>31 January 2009</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> - Due date for payment of any balance of self assessment liability for the tax year ending 5 April 2008, plus any payment on account due for the tax year ending 5 April 2009. </span></p> <p></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=4 class="Normal"></td> </tr> <tr height=0> <td width=1 class="Normal"></td> <td width=1 class="Normal"></td> <td width=744 class="Normal"></td> <td width=2 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td colspan=3 class="Normal"></td> </tr> <tr> <td width=1 class="Normal"></td> <td valign=top class="Normal"><p><strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>DISCLAIMER - PLEASE NOTE:</span></strong><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'> The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.</span></p></td> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=3 class="Normal"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td colspan=3 class="Normal"></td> </tr> <tr> <td width=1 class="Normal"></td> <td valign=top class="Normal"><p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Northams</span></p> <u1:p></u1:p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>21-23 New Street</span></p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Devon&nbsp; EX14 1HD</span></p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Tel: 01404 45994  Fax: 01404 46470 web: </span><span style='font-size:10.0pt'><a href="http://www.northams.com/"><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif";color:purple'>www.northams.com</span></a><u1:p></u1:p></span></p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>Northams is registered for VAT under reference no 540590849.</span></p> <u1:p></u1:p> <p><span style='font-size:7.5pt;font-family:"Tahoma","sans-serif"'>The Principal of the firm is a member of the Institute of Chartered Accountants of England and Wales (ICAEW) and the Chartered Institute of Taxation.  These bodies have their headquarters in the <st1:country-region u2:st="on"><st1:place u2:st="on">UK</st1:country-region> and their rules of professional conduct can be obtained from their web sites.</span></p></td> <u1:p></u1:p> <td width=1 class="Normal"></td> </tr> <tr> <td colspan=3 class="Normal"></td> </tr> </table> </div> </body> </html>