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Taxation Services

Our core Taxation Services consist of...

Contractors and IR35

Please contact us if you would like a free consultation to discuss the tax advantages of contracting in more detail and the different possible scenarios.
We offer all inclusive services for contractors including...

  • Company formation;
  • Annual Accounts;
  • Company tax returns;
  • Personal Tax Returns;
  • Company secretarial service;
  • Book-keeping;
  • VAT Returns;
  • PAYE Returns;
  • Tax computations;
  • Review of contracts for IR35 status;
  • Provision of anti IR35 draft contracts;
  • Dealing with IR35 disputes.

IR35

Introduction
All contractors need to consider the IR35 issue.
This article explains what it is and how it affects contractors.

What is IR35?

“IR35” is a piece of tax legislation announced in 1999, which took effect from April 2000.
The legislation means that the Revenue can tax some contractors as though they are employees of their clients.
Contractors caught by IR35 pay significantly more tax reducing their take home pay by up to 25%.

Why did the government introduce IR35?

HMRC intention was to tackle tax and National Insurance avoidance schemes through the use of intermediaries, such as Partnerships or Personal Services Companies.
The Revenue’s view was that a large number of IT Consultants, Engineers, non-executive directors and “one man band companies” were often treated as self-employed when in fact they should have been treated as employees of the end Client. This was based on the terms and conditions that the Contractors worked under.
The Revenue argued that if the agency or the PSC were removed, a large number of contractors would really be “disguised employees” who should be included on the client payroll and have tax and NIC deducted each month.
The Government announced the “rule changes” which would take effect from 6 April 2000. The first reporting and payments would be due from 19 April 2001.

Does IR35 affect all contractors?

Yes, in the sense that all contractors need to consider IR35 and take action to protect them selves from it. However, not all contractors are caught by IR35.
Being ‘inside of IR35 will rely on a number of factors. It is not entirely objective whether a contractor is caught and depends on the terms and conditions in the contract, together with the contractors working arrangements.
Being inside or outside IR35 is not a black and white issue. Estimates are that 20% of contractors are definitely inside IR35, 20% are definitely outside and the rest are in a grey area in the middle.

What happens if you are caught?

If you are “caught by IR35”, then all fees are considered “deemed salary” through your PSC and Tax and NIC will need to be deducted similar to an employee.

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 and PAYE Returns

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 payslips;
  • Monthly summaries;
  • Dealing with leavers and starters;
  • Provision of analysis of staff costs;
  • PAYE returns for the Revenue;
  • CIS returns completed by us.

And at year end...

  • Employer Annual Return P35;
  • Employee summary P60's and P14's;
  • P11D and P9D benefit and expenses returns.

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...

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;
  • Tax advantages of furnished holiday lettings;
  • 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.

Anti-investigation Scanning Checks

Whilst with random investigations anyone can come under enquiry, you can help to avoid the chance of an investigation into your affairs for other reasons. We know the triggers that often give rise to enquiries if not fully explained to HMRC when submitting Returns to them. Every Tax Return or set of accounts we submit to the Taxman goes through an anti-investigation scanning check to identify any areas that may lead to an enquiry before they are submitted without explanation. This really does help to minimise the chances of you being on the wrong end of an enquiry.
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Tax Investigation Fee Protection

Worried about the accountancy fees of a tax investigation?
HMRC has powers to investigate income tax and corporation tax payers at RANDOM.
With the ever increasing risks of full tax enquiries and investigations, it's worth considering protecting yourself from the accountancy costs of dealing with it as the amount of work involved is often substantial.
You can get cover for the following...

  • Self-assessment enquiries;
  • VAT enquiries;
  • PAYE and benefits enquiries;
  • IR35 enquiries.

Even if HMRC finds nothing as a result of any investigation, you will still have unexpected professional fees to pay as a result.
We cannot prevent you from being investigated by the Taxman, but we can help to ensure that you get the best possible support and advice without having to worry about the cost.
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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...

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.
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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.

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Trusts

Trusts aren't just for the very wealthy
Trusts can be used as part of a wealth protection strategy to protect assets as well as tax planning vehicles, particularly as part of inheritance tax planning.
We can advise on the setting up and running of...

  • Discretionary trusts;
  • Accumulation and maintenance trusts for children;
  • Interest in possession trusts.

We can deal with all trust accounting and tax matters on your behalf.
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VAT Planning and Disputes

Compliance with VAT is becoming ever more complex. Investigations from the VAT man 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.
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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.

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VAT Returns

Compliance with VAT is complex. Investigations by the VAT man can be intense - all the more important that your VAT returns are completed correctly.
There are two methods we can use to assist in completion of VAT returns...

  • Let us do your book-keeping and we complete the return from there;
  • Give us your books and we'll complete the return for you;

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

Please contact us for any further questions.