The Service Company Question on Form P35

The end of year PAYE form P35 to report the total NI and tax deducted from each employee in 2007/08 has to be submitted by 19 May 2008, but this year it includes a rather confusing question in part 3 of the form. Question 6 says.....

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Small Firms Loan Guarantee Scheme

As a small business you may face a dilemma; you are forced to limit the scale of your operations because you cannot get loan capital, but the bank will not provide further funds as you have no significant assets to provide as security. The Small Firms Loan Guarantee Scheme could provide a partial solution....

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When is Lunch Tax Deductible?

Free or subsidised meals provided to staff in a works canteen are tax and NI free as long as the meals are available to all staff. The company does not necessarily have to have its own canteen, but the food must normally be provided on the business premises. The local pub cannot be designated as a staff canteen just for Friday lunchtime. If some company sites have a canteen but others do not, the subsidised food will still be tax-free as long as any employee can eat in the canteen if they happen to be on site.....

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What Needs to be on a VAT invoice?

You must have a valid VAT invoice in order to reclaim VAT charged on the goods or services you purchase. When dealing with a new supplier check that their invoice includes all of the following details....

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Question and Answer Corner

Q. I'm about to pay a significant initial franchise fee. Will I be able to deduct any of that cost from my earnings for my first year of trading?

Q. Can the sole director of his own company be paid £5 per night when away on business without producing receipts to cover expenses incurred?

Q. We pay our employees a mileage allowance for business journeys in line with the Taxman's recommended rates. Can we reclaim any VAT in respect of those payments?

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Key Tax Dates for May 2008

2 - Last day for car change notifications in the quarter to 5 April - Use P46 Car.

19 - Deadline for Employers' 2007/08 end of year PAYE Returns (P35, P14, P38 & P38A). Also last date for filing contractors return online. Penalties for non submission and incentives for filing online.

19/22 - PAYE/NIC due for month to 5/5/2008.

31 - Deadline for copies of P60 to be issued to employees for 2007/08.

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