Did you know that you could get tax-free pay for doing nothing? Well not exactly nothing; you will have to find someone to take with you next time you are out on a business related journey.

Not many employers are aware that if an employee takes a passenger with them when travelling on business and if that travel would also be business related for the passenger, in addition to the usual mileage rate payments they can also pay an additional 5p per mile, per passenger to the driver.  

Passenger payments are free of both tax and national insurance if they are within this 5p per mile limit, although unlike general mileage payments no additional relief is available to the employee where the payments are not physically made or if the amounts paid are less than the maximum.

The rules are more complicated if you do not pay the set mileage rates as suggested by HM Revenue and Customs, however if you would like further information on this subject, please contact your client manager who will be happy to help.

Brown presents the budget on 21st March  

Chancellor Gordon Brown will present his government budget for 2007/08 on Wednesday 21st March. This will be Gordon Brown’s 11th and it is highly likely that it will be his last as he hopes to replace Tony Blair as Prime Minister.

Plans for this year’s budget include confirmation of new rules for ISAs and could give more details for planned green taxes. There is also pressure for Mr Brown to provide more money for pensioners.

Every year we publish a budget newsletter for our clients, which contain a summary of how the budget affects small businesses with a complete review of the all the tax rates and allowances for the forthcoming year on the back. If you would like to pre order a FREE laminated copy for you and any of your colleagues please email Cheryl@stephen-hill.co.uk

Tax Planning’s best kept secret

If you either:

• Are paying tax at the higher rate of income tax;
• Own rental properties
• Have control of more than one limited company;
• Have any staff with a significant degree of independence in terms of their work

Then attending one of our free forums may be of benefit to you!

If your are interested in coming along to one of our tax saving forums the next forum will be held here at our offices on Thursday 15th March.

To book you place please contact Cheryl Taylor on 01474 853 856 or for further information please contact your client manager.

Quote of the week

“A journey of a thousand miles begins with but a single step.”

Chinese Proverb