Please remember that VAT is going up on 4th Jan 2011 to 20%. So please make sure your invoices reflect new VAT Rates. Those on Flat Rates will pay VAT on new rates which you can check on new vat rates. DNS Clients using online portal please be rest assured as we will make changes to reflect these changes.

If a director or an employee incurs expenses for business entertainment or buys a gift in connection with his or her trade, business or profession, these expenses are not allowable under the employee's or director's personal self-assessment tax return or as a business expense. However, an annual allowance of £150 per employee is allowable as a business expense, which includes functions such as Christmas parties so do not miss this allowance to have a free dinner or party on company.

From 6th April 2011, new rules apply for employer-supported childcare schemes unless you already belong to one. The changes have been made in order to even out the discrepancy between what a high-earner and a low-earner receives in tax relief, thus the amount an employee will be eligible to receive will now depend on a "basic earnings assessment", made by the employer at the beginning of the tax year. If the assessment shows that the employee is likely to be paying higher rate tax, the weekly limits will be £28 and £22 respectively. The limit for basic rate taxpayers remains at the £55 per week.