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Frequently Asked Questions

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What exactly do you do?

We offer bespoke tax planning solutions for individuals and businesses helping them legally minimise their tax burden in a variety of ways. We also help with accounts.

Can you save me tax?

In most cases, probably yes. This is more likely if you haven’t done any tax planning before.

Isn’t it wrong or illegal?

No – tax law allows you to administer your affairs in the most tax efficient manner possible.

Which tax can I save?

Potentially all taxes can be mitigated, some less than others. The main taxes are Income Tax, Capital Gains Tax, Corporation Tax, Stamp Duty and VAT (quite a lot of taxes!)

Why can’t my accountant just do it?

As with most things in life the best advice is usually given by those who specialise in a particular field or topic as opposed to getting a generalist to advise on an specialist area.

Do you sell tax “schemes”?

Tax schemes usually are “off the shelf” high risk tax planning products which are almost sold like insurance products. In such cases HMRC require you to disclose these on your Tax Return. Our tax planning is in-house and based on your circumstances, meaning they are completely unique.

I am being investigated by the tax man – what did I do wrong?

Some tax investigations are random others are as a result of HMRC obtaining some sort of intelligence. The important thing to remember is that early intervention by a tax investigation specialist could resolve the dispute relatively quickly; what not do to is to attempt to correspond with the tax man yourself as you could unknowingly put the proverbial “foot in it”.

I heard I have to pay up to 40% tax on death on my assets is this true?

Partly. Inheritance tax is payable on ALL WEALTH above the inheritance tax threshold. However, there are some simple ways to mitigate inheritance tax.

What are your costs?

We have a fixed cost structure so there are no surprises. However, we aim to keep costs low at all times and be the most competitive in market given the expertise and experience we have. We have a small motto at Shipleys: “we’re happy to talk problems, but ideas cost money…”

Latest news & blogs…

Further interest rate restrictions for landlords

Over the past few years the way in which landlords have been able to obtain relief for interest and other finance costs has been changing. The system of relief is moving from one of relief by deduction – which applies for 2016/17 and earlier tax years – to one under which relief is given as a basic rate tax reduction. From 2020/21, relief will be given in full as a basic rate tax reduction.   Transitional rules apply for 2017/18 to 2019/20 inclusive as the changes are phased in, with some interest costs relieved by deduction and the balance as a basic rate tax reduction. For 2019/20, 25% of the interest costs can be deducted in computing profits, with relief for the remaining 75% being given as a tax reduction at the basic rate.   Check with Shipleys Tax that you are obtaining relief for interest costs in the correct manner.

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

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.

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  • info@shipleystax.com
  • 0114 275 6292
  • Wharf House, Victoria Quays,
    Wharf Street Sheffield,
    S2 5SY

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