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Woolley & Co E-Zine
Tips and ideas for keeping your business on the right side of the law
 Welcome to our July E-zine. This month we’re please to announce the re-launch of the e-lawfirm website. Because the site contains so much information we’ve restructured things, and with the comprehensive search facility this should make articles and fact sheets easier to find. We’d welcome your feedback on the site and ideas for future articles and fact sheets. Over the next 3 months we will be adding some new functionality to the site including a client only area where clients can store their legal documents. So watch this space...
We welcome your feedback – if there is any particular legal issue you’d like to see covered send the details through to marketing@business-lawfirm.co.uk. Andrew Woolley Andrew Woolley, Principal, Woolley & Co
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IT Consultancy Wins Battle with the Revenue Husband and wife IT consultancy Arctic Systems recently won a reprieve against possible insolvency following a surprise IR climb down. The Revenue, which had previously claimed five years back-tax under the much criticised Section 660A rule, agreed belatedly to reduce its claim to only one year.
The IR claim on dividends the husband and wife team had netted had previously been stated at £42,000. It is expected that the figure now sought will be much lower. S660A Income and Corporation Taxes Act 1988, IT consultants will recall, prevents short-term transfers of income earning assets (dispositions) from a higher to a lower rate taxpayer to avoid higher taxation. Typically this would represent a saving of 15% on such “net earnings”. The preventative measure under Part XV of the Act appears specifically aimed at settlements and trusteeships of charities but would in fact cover all and any disposition of this type out with a trust/charity scenario. The IR says the provisions also apply to husband and wife businesses where such dispositions have long been used to avoid paying higher rate tax by paying dividends to the lower tax payer. Hence under strict interpretation of an arguably obscure section of the Act the IR previously had sought to claim back tax for up to six years. Whether the above climb down represents a change of tack by the IR remains to be seen as final written judgement is yet awaited. Further it remains unclear whether any precedent is set by this change of heart that followed intense lobbying by the Federation of Small Businesses, Institute of Chartered Accountants in England & Wales, Institute of Taxation and the Professional Contractors Group. As yet it would be premature for any IT consultants to think that they have heard the last on the matter though these latest developments are to be welcomed.
Directors Responsibilities in Times of Financial Trouble All too often directors are financially ruined after the demise of their company and some of them even end up in prison. To understand your responsibilities as a Director and what you can do to avoid personal liability read our article.
No Phone Calls Please – We’re in Business! A reminder – from 25 June 2004 it became illegal to cold call any businesses which has registered with the Telephone Preference Service. Andrew Woolley of Woolley & Co has more advice about the consequences. Click here to read.
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| To find out more about these and other legal issues visit the Woolley & Co website at www.e-lawfirm.co.uk. The Woolley & Co E-Zine is sent monthly to subscribers. Feel free to pass on to friends and colleagues. To subscribe, click here. This E-Zine is mailed to subscribers monthly. If it has been sent to you in error we apologise, if you wish to unsubscribe to the Woolley & Co E-Zine click here.
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