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Value Added Tax
As company car owners will be aware, the taxable
benefit for fuel is determined by applying a
percentage to a set figure which was £14,400 for
the 2005/06 tax year. The good news is that this
figure has been frozen for the 2006/07 tax year.
The bad news however, despite the freezing of
the taxable benefit figure is that the scale
used to charge VAT on fuel used for private
motoring has increased on average by just over
10%. The revised scales come into effect on the
first VAT period commencing on or after 1 May.
Business Tax
Small businesses intending to replace existing
plant & machinery or to invest in additional
equipment over the next twelve months can
accelerate tax relief if purchasing by 5 April
2007 (31 March 2007 for small companies) as a
50% first year allowance was introduced (for one
year only) from the beginning of the tax year (1
April for small companies). A small business is
defined as one that satisfies two of the
following three criteria: annual turnover
doesn’t exceed £5.6 million, assets don’t exceed
£2.8 million, the number of employees doesn’t
exceed 50.
Business Names
With many farming and estate businesses seeking
to diversify, one of the important decisions to
be made will be choosing a name for the new
business. Although business names no longer have
to be registered, the Business Names Act 1985
allows the Secretary of State to have certain
controls over the name someone might choose for
their business.
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What is a business name? A “business name” is a
name used by any person, partnership, or company
for carrying on a business, unless it is the
same as their own name. The Act applies to
companies which trade under a name different
from their corporate name, a partnership which
doesn’t trade under the names of all the
partners, or an individual who trades under a
name which is not his or her surname. Disclosure
rules apply in such cases and this means that
either the corporate name, the name of each
partner, or the individual person’s name must be
shown clearly in all places where you carry on
business, business letters, written orders for
the supply of goods or services, invoices and
receipts, and written demands for the payment of
business debts. The use of certain names e.g.
one which would suggest a connection with the
government or a local authority would need
approval prior to it being used. Professional
advice should be sought before using a business
name as breaching the law or unintentionally
using a name similar to a registered trademark
for example, could prove costly.
David Robertson
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