In the UK, the standard rate of VAT (T1) is to change to 20% from 4 January 2011.  As with the changes over the previous two years, Fusion Accounts users will need to do nothing!

The new VAT rate will be available for your financial transactions from 7 December 2010 for any transactions that you are preparing now that require the new rate.

From 4 January, unless you indicate otherwise, all products having a 17.5% rate will be changed to a 20% rate as will any other defaults using this rate.

For more information on the rate change please refer to HMRC.

National Insurance Holiday – will you benefit?

This week has seen the launch of the much-anticipated ‘holiday’ for National Insurance payments for small businesses. But do you know whether you can benefit – and what it will mean for your business? Online accounting software specialists Fusion Accounts has put together a handy guide to bring you bang up to date on the new regulations – and to help your business make the most of the opportunity.

So what’s the NIC holiday all about? More...

HMRC have issued detailed guidelines on penalties for late payment of PAYE deductions due for a period starting on or after 6 April 2010 for:

• monthly or quarterly PAYE (Pay As You Earn)
• student loan deductions
• Construction Industry Scheme (CIS) payments
• Class 1 National Insurance contributions (NICs)
• annual payments of employers' Class 1A NICs
• annual PAYE Settlement Agreements (PSA) payments
• PAYE determinations or charges raised

These penalties will be up to 4% of the total amount that is late for a given tax year.

Full details can be found on HMRC’s web site.