1st October also saw the introduction of new rights to pay and benefits for agency workers. Those who have completed 12 weeks of service in the same role with an employer will be entitled to many of the same employment and working conditions as other staff, including pay, overtime payments and holiday entitlements. Temporary workers will also be able to enjoy certain staff facilities, including childcare facilities, canteens and transport services, from the first day of their employment.

The Goverment has announced changes to the rules of unfair dismissal, which could save British business is nearly £ 6 million a year. From April 2012, employees will only qualify for the right to claim unfair dismissal after two years of employment, rather than one. In addition, a fee system will be introduced with those employees who wish to raise a tribunal claim, with a view to reducing the number of vexatious claims. With effect from April 2013 employees must pay a £250 application fee with a further charge of £1000 a hearing is granted. If successful, the money will be refunded to the claimant.

Changes to the penalties for late construction industry scheme (CIS) returns came into effect on the 6th October 2011. These include:-

A £ 100 fixed penalty if the return misses its due date, ie 19th of each month.

A second £ 200 fixed penalty if a return is two months late.

A tax geared penalty if the return in not filed six months after its due date, ie the greater of 5% of any deductions shown on the return or £ 300.

A second tax geared penalty if the return is still outstanding after 12 months. This will be the greater of 100% of any deductions or £ 3,000 if withholding of information was deliberate and concealed.

Or the greater of 70% or £1,500 if it was deliberate but not concealed, or the greater of 5% or £ 300 for cases where information was not withheld.

An upper limit on the amount of fixed penalties charged to new contractors that have not filed their first returns on time and interest on any penalty paid late.

The first return affected will be for payments made to subcontractors in the month ending 5th November 2011.

Up to now you have only been liable to pay a penalty for late self assessment return if you had tax to pay for the tax year concerned. The rules have now changed so that if you are late in submitting your return regardless of whether you have tax to pay or not or indeed due a refund from HM Revenue & Customs. You will be charged a penalty of £ 100. The penalties increase the later you are, so if your return was a year late you would pay a minimum of £ 1,600. The deadline for returns for the year ended 5th April 2011 are 31st October 2011 for paper returns and 31st January 2012 for returns submitted on line.

If you need a quote to complete your Self Assessment returns, contact Andrew or Sarah at Phillips Associates