All other NMW rates are set to increase from 1 October 2010. To summarise all NMW rates increases:  

 - Apprentices aged under 19 but in their first year of apprenticeship – (All other apprentices – No special rules, normal NMW rates apply) – £2.50 /hour

 - 16 and 17 year olds – £3.64 / hour

 - 18 to 20 year olds – £4.92 / hour

 - 21 and over  - £5.93 / hour

We have added a full analysis of the Budget to our website and it is available here:

http://www.humph-net.co.uk/general/budget2010/index.htm

A summary of the tax rates which will apply as a result of the Emergency Budget, please also take a look at:

http://www.humph-net.co.uk/general/taxrates2010/index.htm

The following announcement was posted on the HMRC website today:

Annual Coding: multiple or incorrect Coding Notices – update

We advised you that HMRC recently introduced a new National Insurance and PAYE system and that we are using it to issue tax coding notices for the first time.

The transition to the new system has brought to light some discrepancies in our existing records and this is resulting in a number of incorrect coding notices being issued.

We have been working hard to identify situations where customers could receive an incorrect coding notice and have identified three key situations where this may occur. These are:

• Where a previous employment stopped sometime ago but our system has not picked this up and a coding notice has been sent for that employment
• Where 2 notices have been sent for the same employment and
• Where the code BR (basic tax) or DO (higher rate tax) has been given for an employment or pension for the first time.

We are looking to correct as many of these discrepancies as possible well in advance of the new tax year and we are doing all we can to ensure no one pays too much tax from April.

If you are concerned about your tax code and you think it is wrong, particularly if it falls into one of these three categories, then check it using the guidance included with the coding notice and the income tax area of our website. If you cannot resolve your query using this please contact us on 0845 3000 627 so we can make sure you have the right tax code applied in time for the start of the new tax year on 6 April 2010.

If you think you are affected by the HMRC’s systems failure and require any help confirming that you are on the correct tax code, please get in touch with Humphrey & Co and we will be able to assist you.

Similar arrangements will apply to telecommunications companies in respect of calls and texts made up to 6am on 1 January.

Making this announcement, Financial Secretary to the Treasury, the Rt Hon Stephen Timms MP, said:

“New Year’s Eve celebrations are a vital source of income for many in the service sector. The Government recognises that it would be very difficult for them to make the necessary changes to account for VAT at 17.5% immediately after midnight. To make the transition as easy as possible retail and telecommunication businesses will be able to charge VAT at the old rate into the early hours of New Years Day.

“I announced in May 2009 that HMRC would be allowing a ‘period of grace’ to help businesses trading across midnight on 31 December in implementing the VAT rate change, and that they would work with business on the details. I am very pleased that HMRC is now able to confirm these arrangements and I hope that those businesses affected will find them helpful.”

The ‘period of grace’ is restricted to those businesses that account for VAT at the point of sale such as businesses on a retail scheme – pubs, shops, restaurants etc and to the cost of calls or texts made and billed in the early hours of January 1.  It will not apply to businesses that account for VAT on the basis of VAT invoices issued or to mail order or on-line retail sales.

HM Revenue & Customs (HMRC) will publish a Revenue & Customs Brief on the HMRC website (www.hmrc.gov.uk) shortly, explaining the extent of the concession in more detail.

There is an update available for QuickBooks users to refresh the software so as to be prepared for the VAT rate change.

Intuit Software have compiled a list of FAQs on their site . There are instructions on how to make the rate change in QuickBooks, and once it’s set to the new rate, it will calculate VAT correctly.

If you use QuickBooks and need any further help making the change, please note that Intuit Software have made special arrangements for the support centre to be open on January 1st and 2nd 2010, between 9am and 5.30pm. You can get in touch on 0845 606 2160.