Taxation Services

Taxation Services

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

IR35

For more information, see our IR35 and contractors helpsheet.

Employment Status

The question as to whether someone is employed or self employed is not as straightforward as it might at first appear. Many people assume they are free to choose, but this is not the case.

Although there is no clear-cut answer as to how you decide if you are self-employed or not, the following should be on your checklist.

Fundamental factors to consider:

  • Control;
  • Mutuality of obligations;
  • Financial Risk;
  • Opportunity to profit from sound management;
  • Right of dismissal;
  • Intention of the parties;
  • The right to get a substitute or helper to do the job;
  • Provision of equipment;
  • Basis of Payment;
  • Part and parcel of the organisation;
  • Employee benefits;
  • Length of engagement.

These are often matters of general employment law, and not specific tax legislation. There is an enormous amount of Case Law in this area and HMRC are not always right. HMRC do not have the final say on whether somebody is self-employed or not. We can argue your case and take it before the Tax Commissioners for you.

The cost if you get it wrong is enormous. Not only is there the question of employees and employers national insurance, being classified as an employee also gives rise to all sorts of employment rights such as holiday pay, maternity pay, unfair dismissal etc. The decision has to be made by the employer and if you get it wrong it is going to be very hard to recover the back tax, interest, penalties etc from the worker.

We can review your existing arrangements and give you our opinion on whether it will stand up to attack from the Taxman. We can help advise on contracts for services to assist you and advise on how you can maximise your chances.

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".

Inheritance Tax Planning

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;
  • Departmental reports;
  • Provision of analysis of staff costs;
  • Assistance with automated payment set-up to your employees;
  • Monthly summaries;
  • Dealing with leavers and starters;
  • PAYE returns for the Revenue;
  • 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 and P14'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;
  • Termination payments;
  • Company car and van strategies;
  • Planning for retirement;
  • Inducement payments;
  • Benefits planning.

Personal Tax

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;
  • Tax enquires;
  • Tax disputes;
  • Inheritance tax planning;
  • Dealing with Tax Returns;
  • Computation of liabilities;
  • Correspondence with HMRC;
  • Tax Investigation Fees Protection.

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

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;
  • PAYE and benefits enquiries;
  • VAT 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.

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;
  • Tax efficient employee remuneration strategies;
  • Inheritance Tax strategies;
  • Profit extraction strategies;
  • Employment status;
  • Business taxes;
  • Vat planning;
  • Capital Gains;
  • Exit strategies;
  • 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.