Our core Taxation Services consist of

• Inheritance Tax Planning
• Payroll and PAYE Returns
• Personal Tax
• Property Tax
• Tax Disputes
• Tax Enquiries and Investigations
• Tax Planning
• Tax Returns and Self-Assessment
• VAT Planning and Disputes
• VAT Registration
• VAT Returns

Inheritance Tax Planning

Tailored wealth succession planning enables a smooth transition to the next generation as well as minimising tax liabilities.

We can advise…

• Individuals whose estate planning is close to the nil rate band or many times larger;
• Techniques to mitigate inheritance tax on family homes, family businesses and investment portfolios;
• On both lifetime transfers and wills.

However, estate planning is not solely about tax and we adopt a common sense approach, helping you to ensure your own financial needs are met and to avoid “giving away too much too soon”.

Payroll, PAYE Returns and RTI

Everything seemed fine running your own business until the day you took on your first employee and became an unpaid tax collector. This is when you found out what red tape was all about.

Let us take the strain away from you and let you get on with running and growing the business. Payroll is complicated and has to be done on time and you as the employer are responsible for the mistakes.

We run payrolls on time and can provide a tailor made service for your business including…

• Employee pay slips;
• Monthly summaries;
• Departmental reports;
• Dealing with leavers and starters;
• Provision of analysis of staff costs;
• Real Time Information (RTI) PAYE returns for the Revenue;
• Assistance with automated payment set-up to your employees;
• CIS returns completed by us.

You will never have to worry about calculating statutory sick pay or maternity pay and dealing with tax credits and student loan deductions ever again!

And at year end…                                    

• Employer Annual Return P35;
• Employee summary P60′s;
• P11D and P9D benefit and expenses returns.

And the related tax planning advice…

Beyond the payroll compliance service, we offer comprehensive advice on all employment tax issues including…

• Tax efficient remuneration strategies;
• Planning for retirement;
• Termination payments;
• Inducement payments;
• Company car and van strategies;
• Benefits planning.

Personal Tax

Need help with your Tax Return or want to pay less tax?

Personal tax services are available both for business owners and private individuals including…

• All aspects of Self Assessment;
• Dealing with Tax Returns
• Tax enquiries
• Computation of liabilities;
• Tax disputes
• Correspondence with HMRC;
• Inheritance tax planning
• Tax Investigation Fees Protection
• Trusts.

Property Tax

Are you a buy to let investor or property dealer or developer?

Property tax is a bit of a maze and we can advise you on issues such as…

• Tax reduction strategies for rental income;
• What is a repair and tax deductible and what is capital and not;
• When to use a Limited Company to save tax;
• Trading income versus Capital Gain considerations and advice;
• Capital Gains rollover and holdover considerations;
• Stamp Duty planning;
• Tax efficient mortgage structures;
• VAT considerations of property deals;
• Making the most of the Principal Private Residence election;
• Tax issues on the sale of part of your residence;
• Second homes;
• Inheritance Tax angles.

 Tax Disputes

It’s an unfortunate fact of business life that from time to time there will be disagreement between the taxpayer and HMRC. Sometimes it is the facts of the case that are in question but it is also often the legislation itself that is in question. Tax isn’t always black and white and where this is the case we are happy to argue your case in the strongest possible terms.

As a taxpayer you have many rights and we will ensure they are never forgotten by HMRC.

Disputes can arise in all sorts of areas outside of full enquiries and investigations including…

• Employment status disputes;
• Repairs v capital disputes;
• Private usage adjustments;
• Capital allowances – is it plant or property?
• Settlements legislation – the classic husband and wife company scenario;
• IR35;
• Valuations for tax purposes;
• Is it a trading activity?
• VAT segregation of businesses to avoid registration;
• Employee benefit disputes.

We have the specialist tax knowledge to assist with a wide range of tax disputes.

Tax Enquiries and Investigations

It is an unfortunate fact of business life that you may well come under enquiry by HMRC through no fault of your own or of your accountant. HMRC now investigates businesses at random as well as for specific reasons. A full investigation is not a pleasant experience for anyone. Without expert defence it is possible to get trampled all over.

If you are selected at random, you need an accountant who knows how HMRC works and thinks and is prepared to fight your case. We make sure that the Taxman keeps to its own internal guidelines and doesn’t over step the mark. We will talk you through the enquiry process and what to expect and support you throughout.

The Penalties

There are various penalties HMRC can seek to impose following an enquiry for undeclared income. As well as having to pay the tax, you can find them seeking penalties up to an amount equal to the tax, so doubling your tax bill. Interest on the late payment of the tax is also part of the arrangement – not a pleasant experience. We can help you minimize these penalties..

Tax Planning

You are entitled to arrange your affairs to pay the absolute legal minimum amount of tax.

Whilst completion of tax returns and statutory tax obligations are important jobs, all accountants should be capable of completing them and advising you of your tax position and liabilities.

We try to do more than just this and are interested in maximising your tax planning opportunities.

We all have to pay our taxes but within the legal framework there are numerous ways of saving tax and making sure you do not pay a penny more than is absolutely necessary. We have extensive experience in this area of work and always fight as hard as we can for our clients.

We can help with tax planning in relation to…

• Personal taxes;
• Business taxes;
• Tax efficient employee remuneration strategies;
• VAT planning
• Inheritance Tax strategies
• Capital Gains;
• Profit extraction strategies;
• Exit strategies;
• Employment status
• IR35 advice.

Apart from extensive experience in this arena, we have invested heavily in reference materials and specialist software and have access to the Tax Legislation, Tax Cases, to the internal manuals of HMRC and to detailed commentary on all taxes, direct and indirect. This allows us to research any tax topic at all and provide many ways of helping you legally save tax.

New clients are often surprised at how much can be done to help with their tax position. We are always willing to go that extra mile to offer advice on the areas where tax can be saved. We enjoy this work!

It is important that this work is done in advance and you should contact us as soon as possible.

All of our Tax Planning makes legitimate use of the Tax Legislation and Case Law, so that you are not put at additional risk from a full HMRC Enquiry, or where there are risks, these are pointed out to you.

Tax Returns and Self Assessment

Tax Returns can be completed for…

• Individuals and sole traders;
• Partnerships;
• Limited Companies.

The self-assessment regime is full of penalties and HMRC enquiry powers are extensive. It’s important that…

• Returns are correctly completed;
• They are filed on time;
• All backup records are retained for the appropriate period of time.

As well as the completion of your return we can assist with…

• Advice on your tax liabilities;
• Negotiating with the Collector if necessary;
• Identifying suitable tax planning opportunities;
• Completing all the necessary tax computations;
• Dealing with all correspondence from HMRC, taking the worry away from you.

VAT Planning and Disputes

Compliance with VAT is becoming ever more complex. Investigations from the Vatman can be intense – all the more important that you have an accountant who is successful in negotiations with them.

We take best advantage of the reliefs available and the interpretation of the regulations. This is an extremely important feature of the service provided as it ensures peace of mind for all our clients.

We can help you with advice on the VAT schemes suitable to your business and dealing with VAT control visits as well.

VAT Registration

For VAT registration we can assist with…

• Advising if you need to or if it would be beneficial to register;
• Completion of the VAT registration forms and formalities;
• Advising on the best VAT schemes to use suitable to your business – some you have to notify HMRC you are using and some you don’t.

VAT Returns

Compliance with VAT is complex. Investigations by the Vatman can be intense – all the more important that your VAT returns are completed correctly.

There are three methods we can use to assist in completion of VAT returns…

1. Let us do your book-keeping and we complete the return from there;
2. Give us your books and we’ll complete the return for you;
3. Provide training on how to complete your return.

We complete VAT returns in good time to ensure you avoid any penalties.

Tax Rates and Allowances 2013/14

• Capital Allowances
• Capital Gains Tax
• Car And Fuel Benefits
• Charitable Gifts
• Corporation Tax
• Fuel Rates
• Income Tax Allowances
• Income Tax Bands & Rates
• Individual Savings Accounts
• Inheritance Tax
• Key Tax Dates
• Minimum Wage
• National Insurance
• Pension Premiums
• Social Security Benefits
• Stamp Duty
• Tax Credits, Universal Credit & Child Benefit
• Tax Free Mileage Allowances
• Tax Shelters
• Value Added Tax
• Van Benefits

Capital Allowances

Capital allowances write off the cost of capital assets against taxable profits. They are used instead of the depreciation in the accounts, which is not allowable as a tax deduction.

(1) For accounting periods shorter or longer than 1 year the £250,000 (£25,000 before 1 Janaury 2013) limit is pro-rata. Transitional provisions apply to accounting periods that straddle 1 January 2013. There is a single £250,000 (£25,000 before 1 Janaury 2013) AIA limit for groups of companies and there is “anti-fragmentation” rules for “related” companies and businesses under common control. The AIA limit can be allocated between companies as they wish.

(2) Companies that make losses attributable to 100% first year allowances on designated energy saving or environmentally beneficial plant and machinery can surrender the loss in exchange for the first year tax credit equal to 19% of the loss surrendered subject to a maximum of the greater of £250,000 or the company’s total PAYE and NIC liability for the period concerned.

(3) The distinction between cars that cost more and less than £12,000 ended on 1 April 2009 for companies and 6 April 2009 for unincorporated businesses. From this date cars will be put into one of two general plant pools. Cars with private usage will still be held in individual pools but the rate determined by these criteria. For expenditure on cars before April 2009, there is a 5 year transitional period where they will continue to be subject to the existing expensive car rules. Prior to these dates there was a 20% writing down allowance subject to a maximum of £3000p.a.

Capital Gains Tax

*Individuals, trustees of settlements for the disabled and personal representatives of the estate of a deceased person.

Entrepreneurs’ relief is available on qualifying lifetime gains on or after 6th April 2008.

*The higher rate applies to higher and additional rate taxpayers.

Transfers between husband and wife or civil partners that live together are exempt.

Car and Fuel Benefits

The following rates apply for 2013/14.

To find the CO2 figure for your car, you can…

• visit the Vehicle Certification Agency www.vca.gov.uk
• inspect the car’s V5 registration document
• ask your dealer
• look at the data pages of car magazines

For cars registered before 1 January 1998 the tax charge is 15% of the list price for engines up to 1,400 cc, 22% for engines of 1,401 cc to 2,000 cc and 32% for engines above 2,000 cc.

Where cars have zero CO2 emissions in all circumstances, the car benefit charge is reduced to zero.

List price is reduced for capital contributions made by the employee up to £5,000.

Employee contributions reduce the taxable benefit by the amount paid.

Fuel Benefits

The car fuel benefit is calculated by applying the above car benefit percentage to a figure of £21,100 (2012/13 – £20,200).

The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.

The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Charitable Gifts

Gift Aid

Individuals can claim higher and additional rate relief on cash gifts and payments to charities using gift aid. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from HMRC. Higher and additional rate taxpayers can claim an additional tax relief on the gross donation through their tax return at their marginal rate.

You can make a claim for a charitable donation made in one tax year to be treated as if it had been made in the previous tax year.

To qualify for gift aid you must pay at least as much tax as the amount the charities will reclaim on your gifts in the tax year in which you make them. You must make a declaration to the charity concerned, other than for eligible charities and Community Amateur Sports Clubs who can claim the tax on up to £5000 of small donations (up to £20) without the need for a declaration.

Give As You Earn

Give As You Earn allows employees to make regular donations tax-free from their gross salary. The employer will deduct the amount from their salary for payment to the charity.

The taxable pay of the employee is reduced by the amount of their donation.

Corporation Tax

Corporation tax on Profits – £ per year (unless stated)

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

It has been announced the main companies rate will decrease to 21% from 1 April 2014 and to 20% from 1st April 2015.

Fuel Rates

From 1st December 2013*

*Rates per mile

From 1st September 2013*

*Rates per mile

Income Tax Allowances

(1) The personal allowance is reduced for individuals with a gross income before the allowance of £100,000. The allowance will be reduced by £1 for every £2 of gross income above the income limit up to a maximum reduction down to zero. This applies irrespective of age.

(2) These allowances are reduced where the income is above the income limit by £1 for every £2 of income above the limit but will never be less than the basic personal allowance or minimum amount of married couple’s allowance.

Income Tax Bands & Rates

* Only applies to savings income (otherwise is 20%)

** Dividends taxed at 10%

*** Dividends taxed at 32.5% of the gross dividend

**** Dividends taxed at 37.5% (2012/13 – 42.5%) of the gross dividend

Other income is taxed first, then savings and then dividends.

Individual Savings Accounts

Savings are exempt from income tax and capital gains tax.

Anyone aged 16-17 can invest in cash ISA only up to the cash limit above.

Junior ISA’s are available for those under 18 to invest up to £3,720 (2012/13 – £3,600).

Inheritance Tax

Inheritance Tax Thresholds

The IHT threshold is to be frozen at £325,000 until 2017/18.

For deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners.

Amounts above the threshold are taxed at 40%.

Most transfers between spouses and civil partners are exempt.

Chargeable lifetime transfers are initially charged at 20%.

Business Property Relief

• Business, interest in business or qualifying shareholders in unquoted companies (includes AIM listed companies) – 100%
• Land, buildings, machinery, or plant used in a company controlled by the transferor – 50%
• Agricultural property – 50% or 100%

Other Reliefs:

• Annual gifts of up to £3000 per donor are exempt.
• Small gifts £250
• Marriage gifts…
  • parent £5,000
  • grandparent £2,500
  • bride/groom £2,500
  • other £1,000
    

Reduced charge on gifts made within seven years of death:

Key Tax Dates

Income Tax and Class 4 NIC

• 31 July 2013 – 2nd payment on account for 2012/13
• 31 Jan 2014 – balancing payment for 2012/13 and 1st payment on account for 2013/14
• 31 July 2014 – 2nd payment on account for 2013/14
• 31 Jan 2015 – balancing payment for 2013/14 and 1st payment on account for 2014/15

Tax Return

• 31 October 2013 – Filing deadline for 2013 paper return
• 31 January 2014 – Filing deadline for 2013 online return

Capital Gains Tax

• 31 January 2014 – CGT payment due for 2012/13
• 31 January 2015 – CGT payment due for 2013/14

Inheritance Tax

Payment due 6 months after the end of the month of death or chargeable transfer.

For chargeable lifetime transfers from 6 April to 30 September, payment is due by 30 April in the following tax year.

Corporation Tax

Payments are due 9 months and one day after the end of the accounting period. Accounts longer than 12 months are divided into two periods.

2012/13 PAYE Return Deadlines

• 19 May 2013 – P35, P14, P38, P38A and CIS36
• 31 May 2013 – P60s to employees
• 6 July 2013 – P11D, P11Db and P9D – and give copies to employees
• 19 July 2013 – Payment of Class 1A National Insurance on benefits due or 22nd July 2012 for electronic payments
  

Minimum Wage

National Insurance

 NIC Holiday

Some businesses will be exempt from paying the employer’s class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee. The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010. It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions. Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal.

 Budget 2013

From April 2014, the first £2,000 is to be deducted from National Insurance (Employer Class 1 secondary NIC liability) paid by an employer.

Pension Premiums

For year 2013/14

• Maximum amount of pension contributions that qualify for tax relief is the greater of £3,600 or the individuals UK relevant earnings.
• An annual allowance is set at £50,000* for the Pension Input Period ending in the tax year. Contributions in excess of the allowance are charged to tax at the top slice of income. Contributions also include those made by the employer.
• Unused annual allowances of up to £50,000 can be carried forward for the next three years. When considering if there is any unused allowance from 2010/11, 2011/12 and 2012/13 the annual allowance for those years will be deemed to be £50,000.
• Employer contributions need to be “wholly and exclusively” for the benefit of the trade to obtaintax relief.
• Minimum age for taking benefits is 55. Was 50 prior to 6 April 2010.
• Maximum age for tax relief on contributions is 74.
• Lifetime allowance is £1,500,000. (£1,250,000 for 2014/15 onwards)
• There is a tax charge of 55% on the excess value above the lifetime allowance if the excess if taken as a lump sum and 25% on monies retained.
• Maximum tax-free lump sum is 25%.

* The annual allowance will be set at £40,000 for the Pension Input Period ending in the tax year 2014/15

Social Security Benefits

* Or 90% of weekly earnings if this is lower

** Jobseekers Allowance will be replaced by Universal Credits in a phased introduction between April and October 2013

Stamp Duty

The following rates apply for 2013/14.

Stamp Duty Land Tax

The applicable rate of Stamp Duty Land Tax must be applied to the whole of the consideration paid to acquire the land / buildings.

For disadvantaged areas, sales of land and buildings up to £150,000 are exempt.

New leases (lease duty)

Duty on rent

Please note that when calculating duty payable on the ‘NPV’ (Net Present Value) of leases, you must reduce your ‘NPV’ calculation by the following before applying the 1% rate.

Residential – £125,000
Non-Residential – £150,000

Duty on premium is the same as for transfers of land (except special rules apply for premium on non-residential properties where the rent exceeds £1,000 annually).

Stamp Tax

The rate of stamp duty / stamp duty reserve tax for the transfer of shares and securities is 0.5%. Where the consideration is £1,000 or less on the transfer of shares, they will be exempt from stamp duty.

Tax Credits, Universal Credit & Child Benefit

Universal Credit will replace Child Tax Credits and Working Tax Credits as well as income-based Jobseekers Allowance, Income Support and Housing Benefit. It does not replace Child Benefit.

Universal Credit is starting with certain areas of North-West of England in April 2013. Form October 2013 there is a national launch of Universal Credits for new claimants. Existing claimants will be phased in over a period expected to be completed by the end of 2017.

Tax Credits

Working Tax Credit* – £ per year (unless stated)

Childcare Element of the Working Tax Credit* – £ per year (unless stated)

Child Tax Credit* – £ per year (unless stated)

* Tax Credits elements will be replaced by Universal Credits in a phased introduction between April and October 2013

Income thresholds and withdrawal rates – £ per year (unless stated)

Child Benefit

Child Benefit/Guardian Allowance – £ per week

From 7 January 2013 tax payers with income of over £50,000 will have their Child Benefit restricted.

This will be administered as an income tax charge on the person earning over £50,000.

The income tax charge will apply at a rate of one per cent of the full Child Benefit for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid.

Where both partners earn over £50,000 it is the partner with the highest income who will be subject to the charge.

Universal Credit

Standard Allowance – £ per month

 Child Element – £ per month

 Capability for Work Elements – £ per month

 Career Element – £ per month

 Childcare Costs Element – £ per month

* 70% of relevant childcare costs met

 Housing Costs Element

This includes:

• · Eligible rent payments
• · Certain service charges
• · Mortgage interest

Work Allowance and Taper – £ per month

After the Work Allowance has been taken into account, the Universal Credit award will be withdrawn at a rate of 65p for each £1 of net earnings.

Benefit Cap* – £ per week

* Only affects claimants in receipt of Housing Benefit during the Universal Credit transitional period

Tax Free Mileage Allowances

Rates for 2012/13 and 2013/14

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Tax Shelters

Value Added Tax

 VAT fuel scale charges from 1/5/13

 VAT fuel scale charges from 1/5/12

Van Benefits

2013/14 and 2012/13

The taxable benefit for private use of a company van that is more than home to work travel is £3,000. For 5 years from 2010/11 this is reduced to nil for vans which cannot produce CO2 emissions under any circumstances.

The taxable benefit for fuel provided for private use is £564 for 2013/14 (£550 for 2012/13).