Interest rate increase not likely in the near future
Expectations of an increase in the official interest rate, or Bank Rate, from its 0.50 per cent level were pushed back last week.
The minutes from the Bank of England’s Monetary Policy Committee meeting in July, published on 20 July, showed the risks that economic activity would remain subdued through the rest of 2011 had increased.
Tax avoidance campaigns continue
New campaigns targeting VAT defaulters, private tutors and e-marketplaces will be launched by HM Revenue & Customs (HMRC) over the next year. HMRC will use cutting-edge tools such as “web robot” software to search the Internet and find targeted information about specified people and companies. Using the software, the department can pinpoint more accurately people who have failed to pay the right tax. The “web robot”, used with the department’s Connect computer system, also helps find people who are trading without telling HMRC.
Are Markets predicting a rate rise in August 2012?
The UK money market is pricing in a first UK interest rate hike for August 2012, says Mike Riddell, the manager of the M&G international sovereign bond fund.
Small firms could benefit from simpler accounting rules
Up to 1.5 million small UK firms could benefit from proposed changes to the accounting rules after EU ministers reached a new agreement earlier this week.
Are you claiming the new higher mileage rate?
Don’t forget that from 6 April 2011 the HMRC approved amount you can claim for the business use of your own car is 45p per mile (previously 40p per mile). The 45p rate applies to the first 10,000 business miles claimed in a tax year, after that the rate reduces to 25p per mile.