Making Perfect Sense: PayStream’s response to Budget 2008
Although yesterday’s Budget speech may have been short on detail, HMRC’s website contained 107 Budget Notes amounting to 270 pages. Amongst the detailed technical material there was surprisingly no reference to the final version of the income shifting legislation which had been widely anticipated. This was because it was hidden away in Press Notice 3 and Chapter 4 of the Economic and Fiscal Strategy Report on the HM Treasury website. The following commentary summarises the issues of significance to PayStream’s customers:
The good news on income shifting
Following the extensive industry wide representations as part of the consultation process on income shifting, the Government acknowledges that a further period of consultation is required to ensure that the legislation in this area provides clarity and certainty for businesses and their advisers. It now intends to introduce legislation in Finance Act 2009 and will not enact legislation with effect from 6 April 2008.
The bad news for disreputable umbrella providers and their expense procedures
At the same time the Government indicated its concern at the increasing use of umbrella company arrangements and overarching contracts of employment as a means of obtaining tax relief, specifically travel to work expenses, that would not be available to other workers. The Government will monitor the use of such arrangements and, if necessary, consider action in the future.
We may expect to see some proposed legislation regarding travel to work expenses in the Pre Budget speech in December. Here at PayStream we are committed to working with Treasury, HMRC and our advisers to ensure that our services are fully compliant with all aspects of the legislation and to make appropriate representations on legislative developments.
A reminder
In the Pre Budget report back in October 2007, the Chancellor announced the rate of Corporation Tax payable by small companies would increase to 21% in 2008/9.
Press Release - 16 Jan 2008
PayStream, one of the UK’s leading accountancy service providers has today purchased the Glasgow-based umbrella service provider Mimax Mosaic Ltd for an undisclosed sum.
By acquiring Mimax Mosaic, PayStream increases its presence in Scotland, continuing its strategy to broaden its customer base in the growing temporary labour market.
John Whelan, MD of PayStream commented: “This acquisition is an indication of our confidence and growth ambitions in a market which is expected to consolidate further in the coming months. Customers will continue to enjoy high standards of customer care from Mimax Mosaic with the added benefit of access to PayStream’s additional service offerings and sector expertise.”
For more information contact John Whelan at PayStream on 0161 923 0217
Tailored solutions to meet individuals needs
Choose PayStream and select the individual accountancy services
you require (such as book keeping, accounting or tax return preparation),
or let us advise you of the best solution based on your particular
circumstances.
When it comes to umbrellas, PayStream has two options:
your own portable solution ‘My PAYEsafe Company' (ideal
for moving from contract to contract with you) or our employee
solution ‘My Umbrella Company' - our industry-leading
PAYE umbrella, developed through years of expertise.
With both
products we can help to appropriately optimise your earnings while
making your business accountancy as simple as 1, 2, 3…
Choosing PayStream makes more sense
than ever
With great service, choice, real expertise and a no-nonsense,
jargon-free approach to accountancy, you'll find that choosing
PayStream really does make perfect sense.
For new business enquiries
call:
0800 197 6516
|
