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Why Us

The foundation of our practice rests on three core beliefs:

  • Service
  • Knowledge
  • Trust

We pride ourselves on delivering exceptional service, first time, everytime.
Our knowledge built upon combined decades of expert experience in tax and accountancy so you can rest assured that the most important of financial decisions are in the most competent hands.
Our objective is to become your most trusted adviser.

Our promises to you

  • To fully understand your needs
  • To provide unrestricted access to senior tax advisers when you need them and whatever you need them for
  • To provide a guaranteed expectation of superior levels of technical expertise in all areas of tax and accountancy
  • To offer services that provide efficient account management – placing the power of financial planning into your hands so that you can focus on running your business
  • To be home to a team with steadfast dedication to their clients and years of experience.

Latest news & blogs…

Making Tax Digital For VAT – Update

MTD goes live

Making Tax Digital (MTD) for VAT went live from 1 April 2019. It applies to businesses with VATable turnover over the VAT registration threshold of £85,000 from the start of their first VAT accounting period on or after 1 April 2019, unless they fall within one of the categories of businesses with more complex affairs (such as those in a VAT group) in respect of which the start date is deferred until the start of the first VAT accounting period beginning on or after 1 October 2019.

Under MTD for VAT businesses must keep digital records and file their VAT returns digitally using MTD-compatible software.

Speak to Shipleys Tax to check what you need to do to comply with the requirements of MTD for VAT.

Call us on 0114 275 6292 or email info@shipleystax.com.

NHS Pension Doctor’s Tax Trap

The Doctor will not be seeing you now.

The ‘pension tax trap’ that’s affecting senior NHS doctors has been getting plenty of media attention over the past few months. But if you’re one of the senior doctors and consultants that’s directly affected by this issue, you’ll already know about the detrimental effect on your earnings.

Some doctors have been advised to use the “NHS Scheme Pays” option as a solution, but this, as we will see below, has a secondary trap waiting for the usnsuspecting pension patient. What a mess!

It works as follows. If you are subject to an Annual Allowance (AA) charge, you can either pay this directly to HMRC via the self-assessment system, or in some circumstances, you can ask your pension scheme to pay the charge on your behalf (Scheme Pays). NHS Pensions have confirmed to what extent Scheme Pays applies to members whose AA is tapered due to their level of earnings (refers to “earnings” generally above £150k).

The legislation will only allow Scheme Pays if the AA tax is over £2k and the growth in the scheme is above the £40k limit (not the reduced limit if an individual is subject to tapering). However, there is also a paragraph in the revenue’s personal tax manual (PTM056410):

“There is a maximum amount that a member can ask their scheme administrator to pay under these circumstances based on the pension input amount in the scheme which exceeds the annual allowance.”

This means that the NHS Pension scheme will only pay the tax charge on the excess over £40k. So if a member has a £60k growth in their pension and a tapered AA limited of £10K, NHS Pensions will only pay the AA tax on £20K, (being £60k – £40k). The member will have to pay the tax on £30k (i.e. £40k – £10k) via their Self Assessment return.

Any clients affected we can write to ask for a voluntary scheme pays to be considered but it is unlikely any will be. The Department of Health (DoH) are currently monitoring the position as use of Scheme Pays is quite low. If members are opting out as a result of not being able to Scheme Pay the whole amount, NHS pensions may well refer them to the DoH.

If you need advice on NHS pensions and how you can avoid the tax trap please call 0114 275 6292 or email info@shipleystax.com.

Tax Efficient Profit Extraction for Companies

Changes to the rates and allowances impact on directors of personal and family companies looking to extract profits in a tax-efficient manner. As always, the optimal strategy will depend on circumstance, and professional advice should be sought.

It is generally beneficial to take a small salary, particularly where the recipient does not have the 35 qualifying years needed for the full single-tier state pension. Where the employment allowance is not available (as is the case for a company with a single employee who is also a director, or where it is utilised elsewhere), the optimal salary for 2019/20 is one equal to the primary threshold for Class 1 National Insurance purposes, which for 2019/20 is set at £8,632 (equivalent to £166 per week and £719 per month).

If the employment allowance is available, for example in a family company with a number of employees, the optimal salary is one equal to the personal allowance of £12,500, assuming it is available and not used elsewhere.

Above these limits, it will generally be more beneficial to extract further profits as dividends, making use of shareholders’ dividend allowances and basic rate bands, where possible.

Before extracting profits from your company, discuss your optimal profit extraction strategy with our professional adviser at Shipleys Tax.

Call 0114 275 6292 or email info@shipleystax.com.

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