False claims of write-off
Taxation on companycars has been revised by Exchequer Chancellor Norman Lamont. Unlike the old system where taxation is based on the size of the engine, the new tax policy takes into consideration the business travel mileage in order to separate essential company car drivers and perk drivers. Starting on Apr 1994, those whotravel less than 2,500 miles will be taxed 35% of the list price of the car, those who travel between 2,500 and 17,999 miles will be charged 23.3% and thosewho travel more than 18,000 will be taxed 11.6% only. Although taxation based on the proportion of list price will lead to a more equitable distribution of tax duties, its business mileage component encourages drivers to needlessly travel just to meet the target mileage range. Other tax provisions may further make cash perks seem a better incentive. However, the benefits of company cars still make taxation cost worth paying.
Publication Name: The Accountant's Magazine
VAT... and a happy new year
The implementation of the single European market trade rules on Jan 1, 1993 will drastically change the way value-added tax (VAT) is collected and accounted for. The onset of the unified market shall mean that companies involved in the buying and selling of goods within the EC shall have to account for VAT on a special VAT return, as opposed to the previous system of collection at frontier posts. It shall also mean that VAT-related information need to be submitted to Customs on a period basis, rather than on an individual basis as was previously done. The new VAT rules thus requires all companies to complete three new documents, namely, the new VAT return, the EC sales listing and the intrastat. It is therefore imperative that companies familiarize themselves with the new VAT rules and the documentation needed to comply with them.
Publication Name: Accountancy
VAT concern over election expenses
The Home Office stated that acting returning officers are authorized to recover value-added tax on election-related bills such as ballot printing and polling boxes' transport. Problems due to returning officers' practice of opening a separate bank account for election expenses have raised concern among participants in a conference of returning electoral administration officers.
Publication Name: Public Finance and Accountancy
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