All businesses and self employed individuals must complete tax returns in various forms which can often be time consuming and problematic. We take the stress out of the process, and make it as straight forward as possible.
We are heavily involved in tax planning for our clients, looking at opportunities and structures which not only help minimise tax liabilities but which also can help with the direction which the business needs to go.
We offer a fee protection service to assist with tax investigation costs which helps ensure that clients are covered for costs in the unfortunate event of a tax investigation.
What we do
Corporation Tax Return
A company is a separate legal entity and pays corporation tax on the taxable profits of the company. Annually a corporation tax return needs filing.
We look after limited companies and deal with the filing of their corporation tax returns, and any other queries which may arise. The corporation tax rate is 19% (reducing to 18% over the next four years) and corporation tax for SMEs is due and payable nine months and one day after the company’s financial year end. Investment in capital expenditure and any R&D research can help reduce your corporation tax charges.
Many people are required to complete and submit tax returns for various reasons:
- You are self employed
- A company director
- Your annual income is over £100,000
- An employee or pensioner who receives additional income from savings, investment or property may need to complete a self assessment tax return
- You may act as a trustee or a personal representative
- You are in receipt of income from trusts, settlements or estates
- If you or your partner earn over £50,000 and are in receipt of child benefit
- If you have made a capital gain such as selling a rental property or a holiday cottage
- Overseas income which is liable to UK tax
Capital Gains Tax
You are taxed on profits made when selling (or gifting) an asset, such as a second home or a business, and you need to complete a tax return to declare the same and pay any tax due.
There are many reliefs available which may help reduce your tax liability, such as rollover/holdover relief, entrepreneurs’ relief. Capital gains are currently taxed at 10% for basic rate tax payers, and 20% for higher rate tax payers. If you have gain on residential property, which is not your main home, any gain will be taxed at either 18% for basic rate tax payer and 28% for higher rate. There is an annual exemption of £11,300 for 2017/18. Talk to us before you implement any many changes and we can help you plan.
R&D Tax Relief
Research and development tax relief is available under an SME scheme which enables a business to receive tax relief in respect of costs relating to qualifying work. The idea is you are rewarded for your time, cost and effort in bringing something new to market.
This effectively means that your taxable profits are reduced by up to 230% of qualifying spend, or if you are in a loss making position you can receive a tax credit. There are many businesses may not realise that they are entitled claim for R&D tax relief and/or gaming tax.
Please contact us to find out how we can help.
From April 2016 there are changes with regards the taxing of dividends. The first £5000 of dividend income is tax free. After the first £5000 tax free, dividends will be taxed at 7.5% for the basic rate threshold (up to £32,000); 32.5% for higher rate (£32,001 – £150,000), and the upper rate (>£150,000) at 38.1%.
HMRC delegate the collecting and payment of income tax and national insurance on employee’s income to the employer, via the PAYE system. However whilst some benefits are tax free, some are deemed to be part of employment income and therefore taxable. If you are unsure as to what is a qualifying benefit and want to avoid penalties arising, please contact us and we can discuss these in depth with you.
Employers are required to complete forms P11D/P9D to HMRC which lists each employee’s benefits and expense payments. Dispensation is available for certain expense payments/benefits to be omitted from a P11D/P9D.
It may be that as an employer you may wish to settle an employee’s income tax and national insurance liability on certain expenses/benefits and this can be done via a PAYE Settlement Agreement (PSA). PSAs also save an employer having to complete P11D/P9Ds for individual employees.
We can look after all expects of your PAYE responsibilities such applying for dispensations or for a PAYE Settlement Agreement and the preparation of the same.