|Exceed CA Limited
Newsletter May 2008
|Newsletter May 2008|
The Finance Bill 2008 continues its progress through Parliament. You will no doubt have heard the debate regarding the abolition of the 10% income tax band. The Chancellor has promised that affected groups will be compensated. The compensation will take various forms; for certain pensioners the compensation will come from the same system that pays the winter fuel allowance; other low income couples through potential changes to the tax credit system, and finally younger workers by adjusting the minimum wage.
This month we have outlined the potential cash flow benefits of switching to the VAT cash accounting scheme, set out a few pointers for payroll administrators, provided you with ways to check the validity of National Insurance and VAT numbers, and finally outlined which State benefits are available to you if you are self-employed.
Our next newsletter will be published on Wednesday 4 June 2008.
|Checking the numbers - NINO's and VAT|
Certain PAYE returns (P35, P11D) will be rejected by HMR&C if a National Insurance number (NINO) is incorrectly displayed. Valid numbers always follow the same format, two letters, followed by six numbers, followed by a single letter. i.e. AB123456D.
The following information sets out the valid alpha prefixes and suffixes. If you are at all uncertain that you have been given a correct NINO, you should check with your local tax office.
Valid National Insurance Number Prefixes:
AA, AB, AE, AH, AK, AL, AM, AP, AR, AS, AT, AW, AX, AY, AZ BA, BB, BE, BH, BK, BL, BM, BT CA, CB, CE, CH, CK, CL, CR EA, EB, EE, EH, EK, EL, EM, EP, ER, ES, ET, EW, EX, EY, EZ GY HA, HB, HE, HH, HK, HL, HM, HP, HR, HS, HT, HW, HX, HY, HZ JA, JB, JC, JE, JG, JH, JJ, JK, JL, JM, JN, JP, JR, JS, JT, JW, JX, JY, JZ KA, KB, KE, KH, KK, KL, KM, KP, KR, KS, KT, KW, KX, KY, KZ LA, LB, LE, LH, LK, LL, LM, LP, LR, LS, LT, LW, LX, LY, LZ MA, MW, MX NA, NB, NE, NH, NL, NM, NP, NR, NS, NW, NX, NY, NZ OA, OB, OE, OH, OK, OL, OM, OP, OR, OS, OX PA, PB, PC, PE, PG, PH, PJ, PK, PL, PM, PN, PP, PR, PS, PT, PW, PX, PY RA, RB, RE, RH, RK, RM, RP, RR, RS, RT, RW, RX, RY, RZ SA, SB, SC, SE, SG, SH, SJ, SK, SL, SM, SN, SP, SR, SS, ST, SW, SX, SY ,SZ TA, TB, TE, TH, TK, TL, TM, TP, TR, TS, TT, TW, TX, TY, TZ WA, WB, WE, WK, WL, WM, WP YA, YB, YE, YH, YK, YL, YM, YP, YR, YS, YT, YW, YX, YY, YZ ZA, ZB, ZE, ZH, ZK, ZL, ZM, ZP, ZR, ZS, ZT, ZW, ZX, ZY
The characters D, F, I, Q, U and V are not used as either the first or second letter of a National Insurance Number prefix.
Valid National Insurance Number Suffixes:
The final alpha of the NINO should be A, B, C, or D.
There are occasions when the validity of a VAT registration number is critical. Particularly:
Supply to EU trader
If it appears that the VAT number you have been given is incorrect, you should charge VAT rather than exempt the supply.
Purchase of goods/services from registered UK trader.
One of the aspects that qualifies a supply for a reclaim of input tax charged, is if the invoice shows a valid VAT registration number. Although HMR&C have discretion to allow a deduction even if the number is wrong, the discretion only applies in certain circumstances.
How to check a VAT registration number.
There are two ways to check the validity of a VAT number:
1. Call HMR&C 0845-010-9000.
DISCLAIMER - PLEASE NOTE: The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.