All
Taxation
Personal Tax
Our approved accountants can help with computerised tax returns and electronic lodgement, you will be advised of your tax liability for the relevant tax years and any repayments or tax liabilities payments required for the following year.
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Preparation of self-assessment tax returns for:
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Sole traders
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High net worth individuals
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Individuals including company directors
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Business partnerships
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Any other individuals who have an obligation or requirement to submit an annual tax return to HM Revenue & Customs
Our service also includes:
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General capital gains tax advice
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Checking and adjusting PAYE code notices
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Advising directors on the most tax efficient form of remuneration
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Annual review of taxation affairs, tax planning opportunities & claims
Banking & Financial Services
This is, to put it simply, a tax on capital gains. Capital gains tax (CGT) is levied at 10% and 20% (10% up to the limit of the basic rate income tax band, 20% above it) for the 2018/19 tax year.
Rates of 18% or 28% apply to disposals of residential property that do not qualify for private residence relief and the receipt of carried interest.
Everyone has an exemption of £11,700 for 2018/19. Used carefully, this exemption can ensure that you need never pay capital gains tax when you come to turn your capital savings into supplementary income, provided that your disposals are relatively low in value. This allowance cannot be carried forward if unused.
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Pre March 1982 assets
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These are to be valued at their 31 March 1982 value.
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Post March 1982 assets
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Valued at cost.
Entrepreneurs' Relief
When you sell qualifying assets (i.e. a business) your first £10,000,000 of gains are taxed at a rate of 10%.
This is a lifetime limit and, for those who build and sell businesses on a serial basis, you can utilise part of this relief with each business sale until you have reached your limit.
Chargeable assets
Broadly speaking, if you sell, gift or otherwise dispose of any asset or property, unless such an asset or property is exempt from CGT, and make a profit on the sale or disposal compared to the price or value you acquired it for, you should assume that CGT might be applicable and seek advice.
Exemptions and reliefs
Exempt assets are free from CGT, whilst reliefs operate to reduce or eliminate a CGT liability in the event of the sale or disposal of certain types of assets, such as businesses. The relief applicable to most people is the Private Residence Relief for your main home. The sale of your home does not incur a CGT liability in most circumstances. If you have more than one house, we can advise you as to the best way to proceed.
Definition of disposal
There is no formal definition of disposal but, for everyday use, the two main events that are classed as disposals are the sale of an asset or the gift of an asset.
Gifts between spouses (living together) are not chargeable at the time of transfer, nor are gifts to certain charities. Most other gifts are chargeable, and it is important to take advice before making any significant gifts. For example, passing a valuable heirloom to your child may result in a tax bill arising even though no money has changed hands.
The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances. This information is based on our understanding of current HMRC rules and practice. Tax rules and allowances are not guaranteed and may change in the future.
Inheritance Tax
Inheritance Tax (IHT) is a tax paid on a person’s estate (their property, money and possessions) if it is worth more than £325,000 when they die. This is called the ‘Inheritance Tax threshold’.
The current rate of Inheritance Tax is 40% on anything above the threshold. There are different thresholds for previous years. The main IHT charge is likely to arise on death.
Inheritance tax may also be levied on certain gifts made during an individual’s lifetime.
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Lifetime gifts fall into one of three categories:
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A transfer to a company or a trust is immediately chargeable
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Exempt gifts which will be ignored both when they are made and also on the subsequent death of the donor, eg gifts to charity
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Any other potentially exempt transfers (PETs) with inheritance tax only becoming due if the donor dies within seven years of making the gift. It may be more prudent to consider them as potentially chargeable transfers and make provisions for inheritance tax accordingly.
Corporation Tax Self-Assesment
A Corporation Tax your company or organisation must pay for each Corporation Tax accounting period. Yet, your Company Tax Return is not just a return form and signed declaration, it also includes any supplementary pages you may need to file, your annual accounts and other relevant documentation.
Corporation Tax Self-Assessment for limited companies and organisations is a different tax from Self-Assessment for individuals, self-employed, sole traders or partners but one common feature is that you self-assess your liability for the tax.
Our corporate tax services include:
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Advising owner-managed companies.
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Advising on company’s tax liability and assist with the calculation of any instalment payments.
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Capital allowances planning.
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Research and Development tax credits.
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International tax – inbound and outbound corporate planning.
Late payment penalties
If the payment is late or is not correct, there will be late payment interest on tax paid late and repayment interest on over payments of tax. These interest payments are tax deductible/taxable.
Penalties
Late submission of the return will incur penalties of £100 if it is up to three months late and £200 if the return is over three months late. Additional tax geared penalties apply when the return is either six or twelve months late. These penalties are 10% of the outstanding tax due on those dates.
The company corporation tax self-assessment that a company files is final subject to:
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Taxpayer Amendment – A company has a right to amend a return (for example changing a claim to capital allowances) and has 12 months from the statutory filing date to make any amendments.
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HMRC Correction – HMRC have nine months from the date the return is filed to correct any ‘obvious’ errors in the return (for example an incorrect calculation). In particular, the correction of errors does not involve any judgement as to the accuracy of the figures in the return. This is dealt with under the enquiry regime
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HMRC Enquiry – Under CTSA, HMRC check returns and has an explicit right to enquire into the completeness and accuracy of any tax return. This right covers all enquiries, from straightforward requests for further information on individual items through to full reviews of a company’s business including examination of the company’s records.
Please do not hesitate to contact if you have any queries or would like any further information regarding Company Self-Assessment for Corporation Tax or about any of the services that we offer.
Making Tax Digital
Businesses with turnover above the VAT threshold (£85,000) will be the first to join HMRC’s brave new digital world. This will revolutionise the way many businesses keep their books and accounts. It is HMRC’s hope that one day the tax return as we know it will have been entirely abolished, and all individuals and businesses will be required to submit their tax returns digitally.
All individuals and small businesses will have access to digital tax accounts, with the information HMRC needs already automatically uploaded. HMRC believe that you should never have to tell them information they already have and therefore under and over payments should be reduced. Digital accounts will give you a single, personalised view of your tax position across all liabilities and entitlements.
From April 2019, businesses with turnover above the VAT threshold (£85,000) will be required by law to keep their records on accounts software. Many people already do that – but there will be an additional requirement in that, the software must be capable of sending information to HMRC every three months. We know that the major software developers such as QuickBooks, Sage & Xero are Making Tax Digital compliant.