April 2005

PAYE Filing Incentives

The incentive for on-line filing is tax free and is £250 for the year ended 5 April 2005. This raises the question of how it should be included in the accounting records.

The Inland Revenue advice is to include it as other operating income. As the payment is not taxable the tax computation should show profit reduced by the payment.

Childcare Vouchers

Childcare vouchers provided by employers are free of tax and national insurance up to £50 per week with effect from 6 April. However you should be aware that many people taking the vouchers would be better off taking a cash alternative. Lower and middle income employees should be most careful if they are not to be disadvantaged.

Company Law Changes

New company law proposals will abolish the need for a company secretary for small companies. It will also eliminate the requirement for hard copy share certificates and make it easier to avoid holding an annual general meeting.