As a member of the Tax Faculty of the Institute of Chartered Accountants in England and Wales, our resident partner Chris Skarparis can advise you on a wide range of tax issues, including completion of personal tax returns, Capital Gains Tax, Corporation Tax, tax investigations, tax planning, estate planning and Inheritance Tax, and the implications of converting your business from sole trading to a limited company.
If you run your business as a company you will be liable for Corporation Tax. The majority of small and medium companies are owned and managed by the directors and their family, who are also subject to income tax on any money drawn from the company. By choosing the right combination of dividend and directors` remuneration we can minimise the overall tax liability.
We can help you to monitor and record any reimbursements made to employees for mileage/petrol payments and subsistence, and help you obtain dispensation from the HM Revenue & Customs. We can also assist you in declaring benefits in kind, such as private healthcare or company cars. We can advise you how to maximise capital allowance claims on new equipment and other assets purchased during the year, such as computers. We will prepare and submit the Corporation Tax computation and return and answer any enquiries raised by the HM Revenue & Customs. Finally we can help you sell your business in the most tax efficient manner, claiming the maximum business taper or roll over relief, in order to minimise Capital Gains Tax.
If you are self-employed, the director of a limited company or a higher-rate earner, then you will need to submit an annual self- assessment tax return of your income and other gains liable to tax.
When your tax return arrives you have two choices: fill in the form yourself – accurately and fully – or save yourself the worry and risk of penalties by simply sending it to us. We will advise you whether payments on account are due and inform you which records we will need to complete the return. You will be asked to check the completed return before you sign it, and we will inform you exactly how much tax is due and when it is due. And in the process we can provide you with tax planning advice. The choice is yours.
If you decide to go it alone and submit a paper Tax return, read on. The paper Tax return must be submitted by 31 October if you want the HM Revenue & Customs to calculate your tax bill. However the HM Revenue & Customs will not decide for you which income or gains are or are not taxable, you must do that accurately or risk penalties. Alternatively , for on line tax returns , the final deadline for submitting your tax return and payment of your tax is 31 January – the return must be complete, correct and the tax due correctly calculated. Miss this deadline and you will be subject to automatic penalties. Do your calculations wrong and you may be charged interest. Ignore this deadline and further, mounting penalties continue to arise.
Effective tax planning, based on professional advice and tailored specifically to your circumstances is vital for all forms of business. We can advise you on the allowances and deductions you are legally allowed to claim – thereby minimising your tax bill. Seeking tax planning advice is completely legal and a wise move if you want to save yourself and your business money.
At Chris Skarparis & Co we are experienced in dealing with all types of Tax Investigations by HM Revenue & Customs. We aim to ensure that you are prepared for visits from the tax authorities before they happen, by providing you with advice on the issues which can prompt an investigation.
- HM Revenue & Customs Investigations:
- Any Personal or Corporation Tax Return can be investigated by the HM Revenue & Customs with or without reason, to check that the figures are accurate. We can support you during HM Revenue & Customs Investigation – but we aim to minimise the possibility of an Investigation. By asking us to prepare your accounts and tax return we can explain at that stage reasons for unusually low profits or drawings – the most likely cause of an Investigation being launched.
- PAYE Inspections:
- Are routine and aim to check that Income Tax and National Insurance have been correctly deducted and to consider whether self employed workers paid cash should have been treated as employees and included on PAYE. We can arrange to be present during the Inspection or advise you how to prepare and what to expect on the day. But prevention is better than cure – ask us to take care of your payroll requirements and your calculations will be accurate. We can also advise at an early stage on the difficult issue of whether workers should be treated as self employed or employees.
- VAT Control Visits:
- Are routine for all VAT registered businesses – how often you are inspected HM Revenue & Customs will depend on the size of your business, the VAT-track record of your type of business and whether you have experienced significant changes in turnover. At Chris Skarparis & Co we can help you avoid some common problems such as late submission of VAT Returns or errors on VAT Returns, which increase the frequency of VAT Control Visits. So when you do have a Visit you can feel confident that your VAT affairs are in order; we can also arrange to be present during the Visit or advise you how to prepare and what to expect on the day.