Let our clients tell you about us
Testimonials
The greatest compliment we receive is a client recommendation. Below are just a few of the kind words our clients have shared about working with Shipleys Tax.
The value of a close relationship
“We value the close working relationship we have with Shabeer and the specialist teams at Shipleys Tax and have found them very knowledgeable, friendly and quick to respond to our queries. Shabeer has attended several of our practice meetings and his advice regarding partnership succession issues has been invaluable. I would highly recommend Shipleys to other GP practices.”
Dr Khan, GP Surgery — Yorkshire
Dubai expat return — saved from a £1.2m UK tax bill
“After selling my business in Dubai I was planning to return to the UK the following year. A friend suggested I speak to Shipleys Tax before booking flights and it turned out to be the best decision I made. Shabeer quickly identified that I was about to walk into the temporary non-residence rules and face a UK tax bill in excess of £1 million on gains I had assumed were safely outside the UK net. With their guidance we restructured the timing of my return and my affairs completely legitimately — the tax saving was life changing. I cannot thank them enough.”
Imran — UK Entrepreneur, returning from Dubai
Fixed fee promise and no surprise bills
“One of the most frequent issues we had with our previous accountants was not being made aware, in advance, of the fees to be charged. Shipleys Tax were a breath of fresh air, always completely transparent — and no charges for any phone calls or meetings.”
FM Medical Practice — Manchester
CGT planning for dental practice sale
“Selling the dental practice I had built over 25 years was always going to be emotional, but I wasn’t prepared for the tax complexity. Abdul and the team at Shipleys Tax walked me through every option, explained the capital gains tax implications in plain English, and structured the sale in a way that saved me a significant amount of tax. Their attention to detail and proactive planning made all the difference — I only wish I had spoken to them sooner.”
Kevin — Derby, Dental Practice Owner
Property portfolio incorporation
“After Section 24 mortgage interest changes my buy-to-let portfolio had become a nightmare. I was paying tax on income I was never actually seeing. Shipleys Tax took the time to properly assess whether incorporation made sense for my specific situation — no hard sell, just honest advice. They modelled out ten years of projections, handled the entire restructuring including the SDLT planning, and now my portfolio is fit for the future. Genuine property tax specialists, not just accountants who dabble.”
Rashid — Leeds, Property Investor
Partner-led client service promise
“Accountants seem to promise the earth but don’t deliver do they? Well we found the opposite. Abdul made himself available on so many occasions and even on weekends when we had a really major panic with a sale. Really grateful to him for his advice and foresight. If we needed to talk, they listen. It really is that simple.”
Sabina — JL Healthcare
Inheritance tax mitigation and estate planning
“After losing my husband I was concerned about the inheritance tax exposure on our family estate. Shabeer took the time to properly understand our family situation before recommending anything. The advice I received on IHT mitigation was clear, practical and completely tailored to us — not an off-the-shelf solution. My children and grandchildren are now in a much better position and I have genuine peace of mind. I cannot recommend Shipleys highly enough.”
Louise — Leeds
Family Investment Company succession planning
“My family business had reached a point where I wanted to start bringing my children into ownership without giving up control or triggering a huge tax bill. Shipleys Tax designed and implemented a Family Investment Company structure that achieved everything I needed — I retain voting control, future growth passes to the next generation, and the inheritance tax position is now properly protected. Shabeer took the time to understand our family dynamics as well as the numbers, which was invaluable.”
James — Sheffield, Family Business Owner
GP practice incorporation
“Our GP partnership had been considering incorporation for years but no one could give us a straight answer on whether it was right for us. Shipleys Tax produced a detailed review of our specific circumstances, modelled out the tax savings over five years, and handled the entire incorporation process end to end. The transition was seamless and the tax savings have already exceeded their projections. A genuinely specialist firm that understands GPs.”
Gill — Manchester, GP Practice
HMRC tax investigation defence
“When HMRC opened an enquiry into my company, my existing accountants were completely out of their depth. A colleague recommended Shipleys Tax and within a week they had taken over the correspondence, identified the technical issues HMRC had got wrong, and put together a robust response. The case was closed within months with a fraction of the adjustment HMRC originally proposed. Their calm, experienced handling of what was a genuinely stressful time made all the difference. Having ex-HMRC Inspectors on their team was clearly a huge advantage.”
Dr Ahmed — Manchester, Private Practice Consultant
VAT reclaim for locum doctor agency
“We had been charging VAT on locum doctor supplies for years, assuming HMRC’s position was settled. When Shipleys Tax flagged the Isle of Wight tribunal decision to us, they didn’t just send a generic update — they actually reviewed our contracts, ran the numbers on partial exemption, and built a properly evidenced reclaim. The recovery was substantial and the process was completely painless on our side. The fact they understand both the VAT technical side and the commercial reality of running an agency made all the difference.”
Medical Staffing Agency — Yorkshire
Employee Ownership Trust exit
“I had built my company over 20 years and wanted an exit that looked after my staff rather than selling to a trade buyer who would strip it down. Shipleys Tax walked me through the Employee Ownership Trust route in detail — the pros, the cons, and honestly the complications too. They didn’t just sell me a product. When we went ahead they handled the entire transaction, including the HMRC clearance, and the result was exactly what I had hoped for. The team continues to thrive and my legacy is intact.”
David — Leeds, Business Founder
Going above and beyond
“I came to Shipleys Tax through a personal recommendation, at the time I was in a transitional period. I had already taken some steps towards self-employment, however I had no idea what I was doing and the information I received from others was inaccurate for what I needed. I needed someone to understand and help me resolve all the mess I was creating.
Abdul stepped in just at the right time. He dealt with all the paperwork, as well as giving me valuable advice on how to save tax, which was brilliant. I felt I was looked after, my needs taken care of without me feeling like being a burden.
I would recommend Shipleys to anyone that wants an experienced professional team. They are always eager to help and support your company and offer advice when needed, but above all they are always willing to go over and beyond expectation every time.”
Bella
Latest news & blogs…
Bounce Back Loans: avoid the 32.5% tax trap
The Bounce Back loan scheme is fast, attractive and gives small businesses easy access to money. But many unsuspecting SME companies are unaware of a potential 32.5% tax charge if used incorrectly. We look at how this arises and what you can do.
The government introduced Bounce Back Loan scheme on 4 May 2020 to help small businesses get access to a injection of cash up to £50K. As loans, the Bounce Back terms are very attractive: no interest or repayments for the first year, a low interest rate afterwards, and no penalties if you pay them back before the six years are up.
What is the loan used for?
The problem arises when the money is taken out as cash withdrawals to fund private expenses even though the Bounce Back Scheme terms specifically states that it is not for personal purposes.
In these circumstances, as a company, you essentially have two basic options: treat the withdrawal as dividends or treat the withdrawal as a loan owed to the company by the shareholder/director.
In a Coronavirus riddled world, many small companies will not be in a profitable place and hence may not be able to legally declare dividends. In such scenario, to avoid the prospect of “illegal” dividends, the second option kicks in and you are faced with treating the monies withdrawn as a “loan”. Specifically, they become what is known as directors’ loans which is a loan from the company to the director/shareholder. The upshot of this is that you must repay the loan balance to back the company at some point in the future.
Corporation tax charge on loans: 32.5%
And this is where the problems kick in. The Bounce Back loan has very attractive repayment terms, so it is tempting to leave it outstanding beyond the first 12 months. However, loans to directors can be subject to a corporation tax charge at 32.5% if not repaid within a certain time period. This 32.5% tax charge becomes due if you do not repay the director’s loan back to the company within 9 months of the company’s year-end passing. For those withdrawing the full £50,000, the tax charge can amount to an eye watering £16,250! This tax is payable by the company and will no doubt severely impact cashflow.
Can you avoid the 32.5% tax charge?
If you’re planning on taking a loan and repaying it within 9 months of your company accounting year-end (the date in which you actually applied for the BBL loan does not matter here for tax), no corporation tax charge will arise. But, if you end up having to pay the 32.5% tax charge, there is some relief as you can reclaim the tax back from HMRC at a later point when the loan is cleared and under certain circumstances.
Personal tax issue
Also, as if paying 32.5% corporation tax wasn’t enough, there is a potentially a further additional tax on the loan when borrowing money from your company. This occurs when a director’s loan exceeds £10,000 at any point during the year; HMRC treat this as receiving a “benefit in kind”. This can have personal tax implications, including a National Insurance charge for your company. However, to avoid this, the company can charge you interest on the loan at HMRC’s official rate for the duration of the “loan”.
Paying a salary instead
The more straightforward option is to pay yourself a salary. But by doing so you will be essentially taxing the loan via PAYE. This may or may not be cheaper than paying the £16,250 above depending how it is structured.
But remember, Bounce Back Loans are not for personal purposes, and insolvency practitioners (who would presumably act on behalf of banks should you fail to repay the loan) have warned that increasing salary payments after receiving Bounce Back Loans may be treated as a being for personal purposes, although we feel this interpretation may be open to challenge.
If you are considering taking out a Bounce Back Loan and need help with the issues above, please call us on 0114 272 4984 or email info@shipleystax.com.
Deferring VAT during the COVID-19 pandemic
If your business pays VAT, you can defer it until 31 March 2021. To defer, you do not need to tell HMRC – but make sure you remember to cancel your direct debit.
To help businesses struggling with their cashflow during the COVID-19 pandemic, VAT registered businesses can opt to defer the payment of VAT that becomes due between 20 March 2020 and 30 June 2020. This will cover returns for the quarter to 28 February 2020 (due by 7 April 2020), quarter to 31 March 2020 (due by 7 May 2020) and the quarter to 30 April 2020 (due by 7 June 2020).
Businesses do not have to take advantage of the option to defer – they can instead choose to pay their VAT as normal. Where they have sufficient income and have received payment from their customers, this may be a preferable option to prevent running into debt later. The VAT will still be due – the payment date is simply delayed.
HMRC will not charge interest where VAT is paid later as a result of this measure.
Businesses that wish to take advantage of the option to defer paying their VAT do not need to tell HMRC – they simply delay paying the VAT over to HMRC.
Cancel direct debits
Where a business has set up a direct debit to pay their VAT, they will need to cancel the direct debit if they wish to take advantage of the deferral option. If they forget to do this, the VAT payment will be taken automatically.
Paying deferred VAT
Any VAT that is deferred must be paid over to HMRC by 31 March 2021.
File returns on time
Deciding to defer payment of VAT does not affect the obligation to file a VAT return. VAT returns that fall due within the deferral window should be filed as normal and on time.
VAT repayments
Where a VAT returns shows that a repayment is due, HMRC will make the repayment as normal.
After the deferral period
When the VAT deferral window comes to an end, VAT for periods outside the window must be paid as usual.
If you need help with VAT deferral or any COVID-19 financial or tax issue please call us on 0114 272 4984 or email info@shipleystax.com – we are ready to help.
UK furlough scheme extended until end of October
The Chancellor. Rishi Sunak, has confirmed the UK furlough scheme will be extended until the end of October. But there will be a gradual cut to taxpayer contribution to the scheme meaning the employers would need to share in footing the bill.
Some key points from the announcement today:
- The scheme would continue in its present form until the end of July but would be amended between August and the end of October to “provide greater flexibility to support the transition back to work”.
- Between August and October he would for the first time allow payments to furloughed staff working part-time.
- He also mentioned that from August he would ask employers to share the cost with the taxpayer of the job retention scheme, although employees would continue to receive the same 80 per cent of their salary.
More details would be announced by the end of the month but his allies confirmed that the taxpayer would continue to pay the “bulk” of the costs of the scheme.
If you need help with furloughing staff please call 0114 272 4984 or email info@shipleystax.com.
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