| Agricultural VAT Margin Scheme | Financing Alternative | Playtime over for Creches | Pay and File Summary |
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AGRICULTURAL VAT MARGIN SCHEME |
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Finance Act 2010 introduced a margin scheme for agricultural machinery. From 1 January 2010 dealers in second hand agricultural machinery may opt to apply the margin scheme to sales. To that end they would account for VAT at 21% on the profit margin on each sale. Where the margin scheme is applied the dealer would not be entitled to claim VAT on the purchase price.
Transitional measures are available from 1 January 2010 to 30 June 2010 whereby the dealer is entitled to claim a residual amount of VAT on the first purchase of the machine as follows: |
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| 1 January 2010 – 28 February 2010 |
40% |
| 1 March 2010 – 30 April 2010 |
30% |
| 1 May 2010 – 30 June 2010 |
20% |
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| FINANCING ALTERNATIVE |
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In the current economic climate most companies are finding it extremely hard to source finance. One avenue worth exploring is where a director loans personal funds to the company and charges interest to the company. Where a company is categorised as a close company (i.e. owned by five or fewer people) and where the director in question owns 5% or more of the company, any interest paid by the company to him or his associates could be treated as a distribution and taxed at his marginal rate of tax. The interest will only be treated as a distribution where the interest payment exceeds the lower of 13% of the total of loans to the company from directors, or the nominal amount of issued share capital together with share premium. |
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PLAYTIME OVER FOR CRÈCHES |
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30 September 2010 is the termination date for the scheme that permitted capital allowances for buildings used as childcare facilities. Finance Act 2010 included transitional measures, which apply to buildings in the pipeline and may in some circumstances extend the availability of the scheme until 31 March 2012. Extending the termination date is only possible if the following conditions are satisfied:
- A termination date of 31 March 2011 applies where the work to be carried out does not require planning permission and at least 30% of the total construction, conversion or refurbishment costs have been incurred on or before 30 September 2010.
- A termination date of 31 March 2012 applies where planning permission is required for the work, a planning application has been submitted and acknowledged in writing by the planning authority on or before 30 September 2010 and the planning application is not invalid.
While Revenue may be calling time on the capital allowance scheme, it is clear that there is still life in the scheme for anyone who can act fast enough to fulfil the criteria pre- 30 September 2010. |
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PAY & FILE SUMMARY |
| The following is a summary of upcoming pay and file dates: |
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CORPORATION TAX |
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| Filing date for Corporation Tax returns for accounting periods ending in October 2009 |
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| Balancing payment of Corporation Tax for accounting periods ending in October 2009 |
21 July 2010 |
| Filing date for Corporation Tax returns for accounting periods ending in November 2009 |
21 August 2010 |
| Balancing payment of Corporation Tax for accounting periods ending in November 2009 |
21 August 2010 |
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| UNAPROVED SHARE OPTION SCHEME |
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Return of information relating to Unapproved Share Option Schemes has been extended from 31 March 2010 to |
09 July 2010 |
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