Pay your family to work in your business

During the busy festive period some businesses will use family members to help out. This has a number of financial benefits for both sides. 

Provided that the wage is not excessive in relation to the work performed, a wage of £85 to £97 a week,  will result in them receiving an NIC credit that counts toward the state basic and second pensions and as long as they are not working elsewhere, the payment will be tax and National Insurance.  You of course will get tax relief in your accounts for the cost of such wages. 

For more information on this tax tip or any other tax tips please email Janice@stephen-hill.co.uk

Employers must take responsibility at Christmas party.

Legal experts Advisory, Conciliation and Arbitration Service (ACAS) have published guidelines to warn employers that have “a duty of care” under health and safety laws to ensure their drunken staff get home safely after the office Christmas party.

ACAS have also warned that managers could be to blame if staff were “bullied” by colleagues in a pub before the party started the visit to the pub could be classed as an extension of work.

To ensure that no legal action can be taken against you the following advice has been given to employers:

• Think about travel arrangements after the party and maybe end the party before public transport has stopped running.
• Provide phone numbers for local registered cab companies and encourage employees to use
• Consider hiring a mini bus.

These guidelines are small steps to protect yourself in the event that an employee tries to take you to a tribunal so please bear in mind at your office party.

Late filing Penalties

Continuing from last weeks other section of the email newsletter this week we thought we would inform you about the penalties for the relevant documents that need to be filed at either company’s house or HMRC.

Late filing of accounts:

The penalty depends on how late the accounts reach the Registrar, the length of the delay is measured from the date the accounts are due.

Late filing penalty for late CT600 (company tax return):

Partnership tax return:

If the time limits for filing a partnership return are not met fixed penalties will arise. The initial fixed penalty will be £100 for each partner who was a member in the partnership during the period covered by the return and will be charged on individual partners not the partnership. If the return is still outstanding 6 months after the filing date there will be a further fixed penalty of £100 per partner.

Interest on late tax payments:

This is charged at the official rate of interest and from 6th September 2006 the rate is 7.5%.

Annual Return

There is no penalty for the late filing of an annual return, but please note that it is the responsibility of the Director to ensure that it is filed.

For any further information on the late filing penalties please use the following websites:

www.companieshouse.co.uk

www.hmrc.gov.uk

For any other questions please speak to your client manager.