At the beginning of March 2000, the Dow Jones index fell below 10,000 for the first time since April 1999. In contrast, the technology-dominated Nasdaq broke through the 5000 barrier having been at just 3000 in November 1999. [2000]Read More

Some interesting economic observations from the Royal Bank of Scotland have appeared in Money Facts. As this Bank’s economic team proved to be the most accurate in predicting economic forecasts in 1999, its views deserve serious consideration. It notes a lack of evidence to suggest that lower base rates would weaken sterling, as has been...Read More

IR has published the draft clauses for its provisions on personal service companies. These are when a worker supplies his services through an intermediary, such as a company he owns, rather than directly as an employee. The government sees this as tax avoidance. From April 2000, a personal service company is liable to an additional...Read More

The issue of shares is an exempt supply of services, despite a bold attempt in the High Court to argue that it was not a supply at all. In 1992 Mirror Group plc issued 196,392,000 ordinary shares to EU residents and non-EU residents. It incurred £1,530,997.98 VAT on financial, legal and other fees of the...Read More

Another case has been heard on whether the sale of income is capital or revenue. A motor vehicle hirer required payments from customers up to one year in advance. Each year the amount of these payments was shown in the accounts as accruals and deferred income, and was included in creditors. In the following year,...Read More

Regulations have been made to allow for filing of VAT returns electronically. The regulations simply allow Customs to give directions for accepting such returns. Such a system is called an electronic return system. It must contain an electronic validation process. If a return is made electronically, payment must also be made electronically. Value Added Tax...Read More

Inland Revenue has announced that discounts will be offered to taxpayers who file their tax returns and pay their tax over the Internet. Individual taxpayers will receive a discount of £10. Small businesses will receive a discount of £50 for paying PAYE or VAT electronically, and £100 if they pay both electronically. It has subsequently...Read More

The interest rates for corporation tax instalments are increased from 21 February 2000. The rate for underpaid instalments increases from 5.5% to 5.75%. Only the largest companies are required to pay corporation tax by instalments. [2000]Read More

From 1 April 2000, the limit for a deemed supply under Value Added Tax Act 1994 Sch 4 para 8 is increased from £250 to £1,000. This relates to VAT being charged when someone ceases to be a VAT-registered trader. Value Added Tax (Deemed Supply of Goods) Order SI 2000 No 266Read More

Readers are reminded that from 6 April 2000, national insurance is payable on most benefits in kind. One aspect which may be overlooked is that national insurance is due on benefits provided by third parties. Employers are advised to ensure they have a system in place to record this. It may also be advisable to...Read More