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News and Information

No Boats and Holiday Homes after All!
So the Chancellor has reversed his decision to allow all sorts of future investment by pension schemes. Many insurance companies were gearing up for the changes on 1st April, only to find that their plans were rendered futile. As a result, it is probably more important than ever that the changes are understood and that action is taken now to protect your pensions arrangements. (See Newsheet for further information).

Interest Rates
Some forecasters are predicting a further cut in interest rates by the end of 2006 perhaps to 4% or even lower. The high oil price impact will fall out of the equation and, whilst non-predictive world events will always be a risk to local and world economies, the outlook remains positive.

Be Involved and Be Recognised
Johnston Smillie has initiated a policy of greater involvement in the immediate local community by the Firm, its staff and partners. Various projects are being considered. This is timely, given that Scottish Business in the Community is urging small businesses to join Community Mark, a UK standard which recognises and rewards those who become involved with their local communities. The benefits are said to include improved staff retention rates as well as productivity and turnover.

Stopped Smoking Recently?
If you decided that the cigarettes had to go in view of the forthcoming ban from public areas and have now successfully thrown out the last ever packet, the potential savings could be more than you think. A recent reminder from Sainsburys bank points the way to a tidy reduction in your life insurance cover so remember to have a word with your insurer or broker before 16th March. Give us a call if you want an introduction.

Computer Power
Some If you are a regular user of a laptop computer, you will know the potential problems associated with it. These include heat generation and reducing speed. Ironically, the reduction in size of computers and their components has led to increased heat with the resulting excessive use of battery power for running cooling fans.

Now the processor is set to introduce what are known as duel-core chips. These share the computer’s work between two processors and this creates greater energy efficiency. One of the other benefits is increased speed.

Internet telephones the latest big thing in communications technology
The ability to make telephone calls over the internet has become a hot subject now that Tesco has joined other suppliers such as SKYPE. The technology, known as voice over internet protocol, requires a broadband connection as well as a headset or phone that plugs into the computer. Calls are significantly cheaper and, especially when calling someone with the same provider, may be free. It is even possible to make calls with the computer switched off but a special broadband router is required.

The benefits can come especially if making international calls but the quality will not be as good as an ordinary landline telephone. It depends on factors such as the time of the day and the speed of the particular broadband access being used.

New Tax on Art Sales
Yet another stealth tax in the offing? This time it has been initiated by the EU and involves a levy which entitles artists to royalties of up to 4p in the £1 on the resale price of works of art sold for 1000 euros or higher. The maximum will be 12,500 euros.

The tax will not apply to private sales but all galleries, auction houses and art dealers will be affected. It only affects works by living artists until 2010 but after that, it will apply if the artist has been dead for less than 70 years. If the work of art is resold less than three years after the artist sold it, the tax is not levied unless the price is 10,000 or more euros.

Valentine’s Day Panic
Most credit cards will only be useable after 14th February if they are of the new chip-and-pin variety. Signatures will not be accepted on the majority of cards and although there will be exceptions, these will be few and far between. Some cards have still to be upgraded and you should ensure that you know the situation about your own credit card(s) as soon as possible.

Arctic Systems – whether not weather
This case will just not go away. Having lost their latest battle, the Revenue are having one final shot at turning the prevailing wind in their direction. It looks as though they will appeal to the highest authority, the House of Lords. If you think you may be affected by this, turn to Newsheet for more information. (See Newsheet for further information).

Sage Accounts – the latest version
Have you upgraded yet to version 12 of Sage Line 50? If not, you could be missing out on some of the new features. Give our Allan Davidson a call for advice and a quote to upgrade with installation and training included.

Other developments with this software company include the purchase of a merchant services company based in the States. This will eventually lead to a link between payment processing and existing accounting software. There is also a real time internet sharing package which will allow accountants and their clients to share information through the computer link.

VAT Treatment of Conferencing
A significant change has been announced in the way VAT can be accounted for on hotel 24 hour delegate rates. At present, these include VAT on te full amount, including the room hire.

From 18th January 2006, hotels may split the cost and charge VAT only on the catering and accommodation portions.

It is possible that some delegate rates will be reduced as a result and hotels may be entitle to a VAT refund (See Newsheet for further details).