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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…

IR35 & Off-Payroll Workers

FAQs Shipleys Tax Advisors

Recently , the IT contracting market has faced upheaval due to the upcoming changes in off-payroll workers. From 6 April 2020, the off-payroll working rules that apply where the end client is a public sector organisation are being extended to the private sector. 

The amended rules will apply where services are provided via an intermediary, such as a personal service company, to an end client which is a medium or large private sector organisation. The rules bite if, ignoring the personal service company, the worker would be classed as an employee of the end client. Prior to 6 April 2020, the personal service company had to operate the IR35 rules and work out the deemed payment. However, from 6 April 2020, responsibility for working out whether the rules apply will shift to the end client and, where they do, the fee payer must deduct tax and National Insurance from payments made to the worker’s personal service company.

Where the end client is a small private sector organisation, the existing IR 35 rules apply. A private sector organisation is not small if at least two of the following apply:

   •  turnover of more than £10.2 million; 

   •  balance sheet total of more than £5.1 million; 

   •  more than 50 employees.

To prepare for the changes, HMRC recommend that medium and large private sector companies should:

 • look at their current workforce (including those engaged through agencies and intermediaries) to identify those individuals who are supplying their services through personal service companies;

 •  determine whether the off-payroll rules will apply for any contracts that extend beyond 6 April 2020 (HMRC’s Check Employment Status for Tax (CEST) tool can be used to determine a worker’s status);

 •  start talking to contractors about whether the off-payroll rules apply to their role; and

 •  put processes in place to determine if the off-payroll working rules will apply to future engagements. These may include assigning responsibility for making a determination and determining how payments will be made to contractors who fall within the off-payroll working rules.

Workers affected by the changes should also consider whether it is worth remaining ‘off-payroll’.

If you are medium or large private sector organisation engaging workers who provide their services through an intermediary, such as a personal service company, or if you are a worker providing services via an intermediary, speak to us to understand what the changes to the off-payroll working rules mean for you.

CLASS 1A NIC ON EMPLOYEE TERMINATION PAYMENTS

FAQs Shipleys Tax Advisors

Class 1A National Insurance contributions are employer-only contributions charged on most taxable benefits in kind (cars, gifts, vouchers etc).

From 6 April 2020 the Class 1A charge is extended such that from that date it will apply to taxable termination payments in excess of the £30,000 tax-free limit and to sporting testimonial payments in excess of the £100,000 lifetime limit. Currently, such payments are taxable but notliable to National Insurance.

The new Class 1A charge on termination payments will apply to the extent that the termination payment exceeds the £30,000 tax-free limit. The normal Class 1A percentage of 13.8% will apply. However, unlike Class 1A National Insurance contributions on benefits in kind, any liability on termination payments will be notified to HMRC via real time information (RTI) and paid with PAYE tax and Class 1 National Insurance contributions. Termination payments in excess of the £30,000 threshold will remain free of employee’s National Insurance contributions.

As with the new Class 1A charge on taxable termination payments, the liability will be reported and paid via the PAYE/RTI process, rather than through the P11D(b) process.

Non-contractual, non-customary sporting testimonials are taxable to the extent that they exceed a £100,000 lifetime tax-free allowance. From 6 April 2020, Class 1A National Insurance contributions will also be payable to the extent the lifetime allowance is exceeded. The Class 1A charge will fall on the sporting testimonial committee and it will be the responsibility of the sporting testimonial committee to report and pay the Class 1A liability to HMRC. 

Speak to your professional adviser to understand how the timing of a termination payments will affect whether any employer-only National Insurance contributions are due.

SELF-ASSESSMENT TAX RETURN DEADLINES

FAQs Shipleys Tax Advisors

The deadline for filing the 2018/19 self-assessment return online is 31 January 2020. Where a notice to file a return was issued after 31 October 2019, a later deadline of three months from the date of issue of the notice to file applies.

An earlier date of 30 December 2019 applies to taxpayers who have a liability of £3,000 or less which they would like to pay via an adjustment to their tax code.

A late filing penalty is charged if the return is filed late, even if it is only late by one day and regardless of whether any tax is due.

Speak to us to ensure that you understand what information you need to provide by when to ensure that the filing deadline is not missed.

Any tax that is unpaid for 2018/19 must be paid by 31 January 2020. The first payment on account for the 2019/20 tax year is due by the same date. Payments on account must be made where the previous year’s liability was £1,000 or more unless 80% of your tax liability is deducted at source, such as under PAYE. Each payment on account is 50% of the previous tax year’s tax and Class 4 National Insurance liability. The second payment on account for 2019/20 must be paid by 31 July 2020.

If you would like to us to check what needs to be paid by when speak to us.

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Contact us

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

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