Tax

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Our Tax services

Quick links: Capital Gains Tax | Corporation Tax | Inheritance Tax | PAYE & National Insurance | Salary Sacrifice | Self-Assessment Tax Returns | Stamp Duty | VAT

Getting your taxes in order can be complex and time-consuming. Even getting all your transactions and accounting data organised can still leave you with questions and doubts about whether you are working in the most tax efficient way.

We provide a full range of tax service for individuals, sole traders and small and medium-sized businesses. We can help you throughout the tax and compliance cycle, from initial data entry, through to sending your completed documents to HM Revenue & Customs. We can help you plan business and personal finances for long-term tax efficiency. Time and money lost through re-analysing data and tracking down missing accounts information can be avoided with the right planning. Our service built around your specific needs with a qualified professional accountant working directly with you.

Capital Gains Tax

Capital Gains Tax (CGT) is a tax charged on the profit made from the sale of an asset purchased at a lower price. With professional advice there are possibilities to mitigate and defer Capital Gains Tax. We can advise on the CGT implications for companies, individuals and couples. Typical scenarios include:

• Selling buy to let or other investment properties
• Exercising share options
• Selling shares
• Gifts of assets
• Business disposals

Corporation Tax

Corporation Tax is the tax that a company pays on its profit – or more precisely its taxable profit which is usually different to the company’s accounting profit. The directors have a legal obligation to work out the company’s corporation tax liability, pay it on time, and ensure that they deliver all required information to HM Revenue & Customs.

When you set up your limited company you have a legal obligation to tell HMRC that your company exists and is liable for tax. This is the best time to appoint us to manage your corporation tax affairs. We can help you prepare your corporation tax return as part of our accounts preparation service so you pay the right amount of tax on time. We can also work with you on forward planning to take the maximum advantage of tax allowances and reliefs in the most tax-efficient manner.

Inheritance Tax

Inheritance Tax (IHT) is usually paid on an ‘estate’ when somebody dies.  The estate comprises all of the deceased’s assets such as their home and contents.  It may also include trusts or gifts made during someone’s lifetime.  Many estates don’t have to IHT because they are valued at less than the IHT threshold (£325,000 in 2012-13).  The tax is payable at 40 per cent on the amount over this threshold.  As a result of rising property prices many individuals and couples will find that they have been pushed over the current IHT threshold.

The value of the estate for IHT purposes can be reduced by for example donations to charities.  Some other types of gifts and some donations to political parties may also be exempt.  There are also IHT reliefs for business assets (Business Property Relief) and farmland.

Since October 2007, married couples and civil partners can effectively increase the threshold on their estate when the second partner dies – to as much as £650,000 in 2009-10. Their executors or personal representatives must transfer the first spouse or civil partner’s unused Inheritance Tax threshold or ‘nil rate band’ to the second spouse or civil partner when they die.

For any individual or couple where the value of their estate is above the IHT threshold state, tax planning is essential. Please contact us for more information and specific advice on your inheritance tax position.

PAYE and National Insurance

PAYE (Pay As You Earn) is the system that HM Revenue & Customs (HMRC) uses to collect Income Tax and National Insurance contributions (NICs) from employees’ pay (including directors) as they earn it. As an employer, you’ll have to deduct tax and NICs from your employees’ pay each pay period and pay Employer’s Class 1 NICs if they earn above a certain threshold. You pay these amounts to HMRC monthly or quarterly. If you don’t send the correct amount, or if you send it in late, you may have to pay interest and penalties.

As an employer you have a legal obligation to operate PAYE on the payments you make to your employees if their earnings reach the National Insurance Lower Earnings Limit. PAYE is applied to all the payments that an employee receives as a result of working for you, including salary, wages, overtime, shift pay, bonuses, commissions and certain tips.

Employees are also taxed through PAYE on benefits in kind, such as a company car, medical insurance and other benefits. As an employer you will have to pay Class 1A NICs on some benefits.

You have to give each of your employees a pay statement – or payslip – at or before the time that you pay them.  At the end of each tax year you must give them a summary of their pay and deductions on form P60. This must be in paper format. You also need to submit employers returns to HMRC for the year.

The administration of payroll – paying your employees accurately, making the right deductions and maintaining PAYE and NI records – is a heavy burden for employers. Our outsourced payroll service for employers takes care of all monthly and annual calculations, paperwork, electronic filing and tax compliance. We can design a payroll service to suit your business needs. Contact us today to find out how we can help you.

Salary Sacrifice

The concept of salary sacrifice is straightforward but the structure and implementation always needs careful planning and professional advice. With salary sacrifice, an employee accepts a salary reduction and the employer gives an additional benefit. There can be financial, tax and National Insurance benefits to salary sacrifice arrangements, in particular. We can help you through the process to see if salary sacrifice is right for your business and your employees and work with you and HMRC to set up and run your salary sacrifice arrangements.

Self-Assessment Tax Returns

Many people find it complicated and time-consuming to complete a self-assessment. If the whole process fills you with dread then you are not alone but it can be very costly in interest and penalties if deadlines are missed, incorrect returns submitted or records are not properly kept.

Our self-assessment tax return service takes away the hassle and worry of filling in and submitting your tax return and working our your tax. For a single agreed fixed fee we can:

• Gather the relevant data for your annual returns
• Complete your tax return and all necessary schedules
• Calculating your tax liability
• Send you a full copy and explanatory notes
• File your return online with HM Revenue & Customs
• Deal with HMRC on your behalf
• Be available for all your tax queries and questions
• Advise you when various payments are due and how much to pay
• Advise on appropriate record retention

We can also introducing you to any relevant tax saving ideas and represent you in the event of your being selected for investigation by HMRC.

Contact us today to discuss how we reduce the burden of preparing your tax return and self-assessment.

Stamp Duty

Stamp Duty refers to a group of taxes. You pay ‘Stamp Duty Land Tax’ (SDLT) when you buy property and either ‘Stamp Duty’ or ‘Stamp Duty Reserve Tax’ when you buy shares.

Stamp Duty Land Tax (SDLT) is usually payable when you buy or lease land or property. It is also sometimes payable on transfers of ownership of property or land. Usually your solicitor will calculate the stamp duty on your property purchase as the calculation is straightforward. On leases the calculation is more complex, requiring a valuation of future rentals taking into account factors like any rent free period. We can work with you and your solicitor to carry out these calculations and make sure you pay the right amount of SDLT.

When you buy existing shares in a London Stock Exchange listed company through a stockbroker, the transaction is usually completed electronically through CREST (the electronic settlement and registration system). You pay SDRT on paperless transactions for UK shares at a flat rate of 0.5 per cent based on what you pay for the shares.

SDRT is also payable on transfers of shares in a private company. Professional tax advice should always be sought by both the buyer and seller at the outset of any share transfer in a private company to ensure that the transaction is structured in an appropriate manner for tax purposes. Please contact us for more information and specific advice in this area.

VAT

VAT legislation has become increasingly complex and there are a number of areas of opportunity to improve your cash flow, save you time and in many cases claim back significant amounts of VAT.

Our VAT compliance service helps businesses to limit their time spent on the administrative burden of VAT compliance. It can be beneficial to small and medium companies or international businesses that require VAT registration and where a full understanding of legislation may not be present in-house. As well as advising on procedures, we can prepare and file VAT returns for clients. With the move towards compulsory electronic filing of VAT data, more clients will need help and support to comply.

We also can also assist clients to undertake a full pre VAT inspection. Clients who have been notified by HMRC that they are to receive a VAT inspection will receive a comprehensive pre VAT audit review which will give the opportunity to voluntarily disclose any errors, thereby eradicating potential penalties and interest charges.