Inland Revenue VS husband and wife companies

The Inland Revenue have referred a case to the House of Lords after a tax victory for Arctic Systems, a limited company with shares owned by a married couple, Geoff and Diana Jones. The Inland Revenue are appealing on the basis that Mr and Mrs Jones have split their shares in their company in order to divert income from Mr to Mrs Jones and thereby save higher rate tax. They are using an old piece of tax legislation as the basis of their claim and appeal.

If the Inland Revenue win the case in the House of Lords, this could open many similar companies up to investigation and large tax bills.  This case has specific circumstances and may not apply to most husband and wife companies.  Over the next few weeks, stephen-hill A4G will be writing to all their clients where shares are owned by both spouses. In the meantime, if you would like some more information or to discuss your own situation please contact your client manager or if you are not a client of ours yet, please email Janice@stephen-hill.co.uk .

Liability for own car drivers

If an employee is involved in a motor accident in his or her own vehicle, which results in damage or injury to a third party, the employer can be found liable for any damages claim. To overcome this potential problem, employers should get their employees to sign an annual declaration to say that they have a valid drivers licence, that their car is insured, has an MOT and is roadworthy.

For further information on this issue please email Cheryl@stephen-hill.co.uk

Gordon’s last budget?

There has been a huge amount of speculation recently that the 2006 budget could very well be Gordon Brown’s last before he prepares to move in to 10 Downing street to replace Tony Blair.

After a difficult past two or three years as Chancellor, Gordon may be parting on a high as official figures released by the Office for National statistics revealed that the country's budget surplus hit £15.3 billion for January thanks to a surge in Corporation Tax receipts.

Hopefully for small businesses, the strength of the public’s financial situation means that he will avoid making any major tax increases but the concern is that he may wish to acknowledge the voting power on the left of his party in what might be his legacy budget. Wednesday 22nd March is the date, noon is the time. Watch this space!

"In this world nothing is certain but death and taxes." 

Benjamin Franklin