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
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BUDGET 2024 – At a glance
THE UK CHANCELLOR, Rachel Reeves, today delivered Labour’s first Budget since 2010 after coming to power over the summer. A mixed bag with no real innovation to restart the UK economy. With much of the announcements being leaked beforehand, there were no surprises other than the significant change to NIC for employers.
Here at Shipleys Tax we provide a summary of the UK Autumn Budget 2024 with some brief insights on personal and business tax measures:
At a glance summary
1. National Insurance for Employers
The employer National Insurance rate will increase from 13.8% to 15% in April 2025, paired with a decrease in the NI threshold from £9,100 to £5,000. This change significantly raises costs for businesses, especially those with larger workforces or lower-wage employees, as NI contributions start sooner in the earnings scale. To offset some impact, the employment allowance is raised to £10,500, allowing about 865,000 small businesses to reduce or eliminate their NI contributions.
2. Personal Tax Adjustments
- Income Tax Threshold Freeze:
The government extended the freeze on income tax thresholds until 2028, drawing more earners into higher tax bands due to “fiscal drag.” This measure indirectly increases tax revenue without changing rates.
- Inheritance Tax:
Several IHT changes have been introduced:
- New AIM Share IHT Rate: AIM-listed shares, previously fully exempt, now only receive 50% relief, leading to a 20% effective IHT rate.
- Adjusted Relief on Business and Agricultural Assets: For estates above £1 million in business/agricultural assets, a 50% IHT relief will apply, aimed at ensuring smaller family-owned estates remain protected.
- Threshold Freeze Extended: The IHT threshold freeze, initially set to end in 2028, now extends to 2030, likely drawing more estates into the tax bracket as asset values rise.
- Pension Pots Subject to IHT: From 2027, inherited pension pots will be taxed, impacting estate planning where pensions were intended for tax-free inheritance.
3. Corporation Tax Steady
Corporation tax remains at 25%, offering stability for SMEs. While no further rate increases were announced, potential policy shifts around capital allowances could incentivize reinvestment in business growth.
4. Capital Gains Tax Increase
Capital Gains Tax is set to increase from 10% to 18% for lower rate taxpayers and from 20% to 24% for higher rate taxpayers, with no changes to the Annual Exempt Amount (AEA) of £3,000. The government’s decision to avoid a drastic hike aligns with investor concerns, especially for business asset disposals, which retain a £1 million lifetime relief. The Capital Gains Tax increase announced in the Budget reduces the gap between Capital Gains Tax and Income Tax rates, although it perhaps remains significant enough to encourage entrepreneurs to invest in their businesses.
Business Asset Disposal Relief changes – The rate of Capital Gains Tax available under Business Asset Disposal Relief remains at 10% this financial year, rising to 14% in April 2025 and 18% in 2026. The lifetime limit of £1m remains unchanged.
Currently, Business Asset Disposal Relief reduces CGT to 10% on all qualifying gains, a major tax incentive that benefits company directors providing the conditions are met. While BADR continues to provide access to reduced rates of Capital Gains Tax, the CGT rate is set to increase from 6 April 2025.
5. VAT and Digital Compliance
SMEs in the e-commerce sector face tighter VAT compliance as the government rolls out new VAT collection mechanisms, aimed at narrowing the tax gap on digital sales. This step aligns with the broader effort to improve tax efficiency in digital transactions.
6. R&D Tax Credits Expansion
R&D tax credits are extended, particularly benefiting SMEs in tech and green sectors. Eligible SMEs can claim up to 20% of R&D expenses, supporting innovation-focused businesses.
7. Apprenticeship and Training Grants
New grants now cover 50% of training costs for SMEs investing in apprenticeships, addressing skill shortages across key sectors
More to follow.
For further assistance or queries, please contact us.
Leeds: 0113 320 9284 Sheffield: 0114 272 4984
Email: info@shipleystax.com
Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.
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Tax Reliefs: Are you missing out?
THE UK HAS some of the most complex and voluminous tax legislation in the world, making it all too easy for taxpayers to miss out on valuable reliefs simply because they assume they will be applied automatically. Imagine losing thousands—if not millions—of pounds in tax relief, not because you didn’t qualify, but because you didn’t know how to claim it correctly. Taxpayers often assume that tax reliefs, especially valuable ones, will automatically apply to their financial situation.
In today’s Shipleys Tax brief we look at how misunderstanding tax laws can lead to missed opportunities and financial setbacks and how failing to actively manage and claim tax reliefs can result in costly mistakes using some basic case studies.
(NB: All rates and allowances are as at date of the article.)
The Importance of Actively Claiming Tax Relief
Tax reliefs (such as Business Property Relief (BPR), Capital Gains Tax (CGT) relief, Income Tax reliefs, and Inheritance Tax (IHT) reliefs) can significantly reduce a taxpayer’s liability. However, they are not automatically applied, and taxpayers must ensure they meet specific criteria, actively make claims, and regularly review their tax position to avoid unexpected pitfalls.
Case Study 1: Tribunal Denies Business Property Relief (BPR) Claim
Business Property Relief basics
In the right circumstances Business Property Relief (BPR) allows for the reduction or complete elimination of Inheritance Tax (IHT) on the value of business assets when they are passed on as part of an estate. This relief typically applies to businesses that are trading and do not have the hallmarks of investment trade, the aim being to help protect businesses from being dismantled to pay inheritance taxes.
…taxpayers must ensure they meet specific criteria, actively make claims, and regularly review their tax position to avoid unexpected pitfalls.
Background
A family-owned restaurant that has been actively trading for over a number of years would generally qualify for full BPR, meaning that if the owner passes away, the restaurant’s value would not be subject to IHT when transferred to the owner’s heirs. This ensures that the business can continue without needing to be sold to cover tax liabilities.
The Pitfall: Mrs T’s Fishery Business
In a recent case, Mrs T who had operated a fishery business for 17 years, saw her Business Property Relief (BPR) claim denied by the First-tier Tribunal. The fishery, initially run by her late husband, was once a profitable business involving the stocking of fish. However, after regulatory changes, the business shifted to maintaining a wild fishery with minimal services offered to customers. The tribunal concluded that the business had transitioned into one primarily holding land for investment purposes rather than operating a trading business, disqualifying it from BPR.
Key Takeaway: Regularly review your business model. A shift in business activities or external factors can result in your business being viewed differently for tax relief purposes. In Mrs Pearce’s case, the absence of services like tuition or equipment hire meant the business was classified as an investment, not an active trade.
Case Study 2: Denial of Entrepreneurs’ Relief (ER) on Property Sale (CGT)
Entrepreneurs’ Relief basics
Entrepreneurs’ Relief (now known as Business Asset Disposal Relief) allows individuals to pay a reduced rate of Capital Gains Tax (CGT) of 10% when selling a qualifying business or shares in a trading company, up to a lifetime limit of £1 million. This relief is designed to incentivise business owners and entrepreneurs by lowering the tax burden on the sale of their business.
Background
If a small business owner sells their trading company for £500,000, under Entrepreneurs’ Relief, they would only pay a 10% CGT rate on the sale, rather than the standard rates of 20%. This could result in a significant tax saving of £50,000.
The Pitfall: Denial of Entrepreneurs’ Relief on Property Sale
In another case, a property developer sought to claim Entrepreneurs’ Relief on the sale of a commercial building. The developer believed that the building, held within his trading company, qualified for the relief under Capital Gains Tax (CGT) rules. However, upon review, it was determined that the building had been rented out for several years, and the income from this rental activity was considered non-trading. As a result, the company was no longer classified as a trading company for CGT purposes, and Entrepreneurs’ Relief was denied.
Key Takeaway: Ensure that qualifying conditions are maintained with regular monitoring, usually a good accountant will see to this on an annual review. Entrepreneurs’ Relief is only available if a company is trading. In this case, the shift to generating rental income changed the company’s classification, leading to loss of relief and a significant tax liability.
Ensure that qualifying conditions are maintained with regular monitoring, usually a goods accountant will see to this on an annual review.
Case Study 3: IHT Agricultural Property Relief (APR) Disallowed
Agricultural Property Relief basics
Agricultural Property Relief (APR) allows for up to 100% relief from Inheritance Tax (IHT) on agricultural property, such as farmland, farm buildings, and growing crops, when it is passed on as part of an estate. The goal is to preserve the value of agricultural businesses by reducing or eliminating the IHT burden, ensuring that the business can continue without disruption.
Background
A farmer who owns £1 million worth of farmland can pass that land on to their children with no Inheritance Tax liability, as long as the land qualifies for APR. This can save the heirs up to £400,000 in IHT.
The Pitfall: Agricultural Property Relief Disallowed
A recent IHT case involved a claim for Agricultural Property Relief (APR) on farmland that had been used for grazing cattle. The owner believed the land qualified for relief as agricultural property. However, the tribunal ruled that since the land had not been actively farmed for several years and was primarily used for renting out grazing rights, it did not meet the strict criteria for APR. Consequently, the estate was subject to inheritance tax on the full value of the land.
Key Takeaway: Again as above active farming and monitoring through compliance reviews is critical for APR qualification. Landowners must demonstrate ongoing agricultural use to qualify for this relief. A shift to passive income from land rental, even if it involves agricultural activities, can disqualify an estate from APR.
Conclusion: The Importance of Regular Tax Review
Taxpayers should not assume that valuable tax reliefs will automatically apply or continue to apply without a thorough review of their financial and business activities. Whether it’s Business Property Relief, Capital Gains Tax relief, or Inheritance Tax relief, the rules are intricate, and failing to meet the conditions can lead to substantial tax liabilities. To maximise tax savings, it’s crucial to stay informed, maintain the correct business structure, and consult with tax professionals to ensure ongoing eligibility.
By staying proactive, taxpayers can avoid the costly mistake of missing out on significant tax reliefs.
For further assistance or queries, please contact us.
Leeds: 0113 320 9284 Sheffield: 0114 272 4984
Email: info@shipleystax.com
Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.
Want more tax tips and news? Sign up to our newsletter below.
HMRC Targets Unpaid Tax on Cryptoassets
WITH CRYPTO NOT going away anytime soon, HM REVENUE & CUSTOMS (HMRC) is writing to individuals who may need to pay tax on the disposal of cryptoassets such as Bitcoin.
These letters – known as “nudge letters” – which began circulating in August 2024, are part of a broader initiative to address underreported income related to digital assets, urging taxpayers to voluntarily disclose any outstanding liabilities before facing more serious repercussions.
In today’s Shipleys Tax brief overview, we take a look at HMRC’s latest crackdown on crypto investors through these targeted nudge letters aiming to reinforce the message that crypto investors must remain tax compliant and dispel the widespread misconception that using cryptocurrency is a loophole to hide wealth from the taxman. So, why might tax be due and what should you do if you receive a letter?
… to reinforce the message that crypto investors must remain tax compliant and dispel the widespread misconception that using cryptocurrency is a loophole to hide wealth from the taxman.
Understanding the Nudge Letters
The recent nudge letters specifically target individuals who may have disposed of cryptocurrency assets without fully declaring the resulting gains. These letters, which are based on data obtained from major crypto exchanges, warn that failure to disclose could lead to additional tax liabilities, including Capital Gains Tax (CGT) or Income Tax, as well as interest on late payments and significant penalties. A larger wave of these letters is expected to follow in September, as HMRC seeks to intensify its focus on this area.
Common Reasons for Underreporting Crypto Gains
One of the main reasons why many cryptocurrency gains go unreported is the complexity surrounding the tax treatment of digital assets. HMRC generally considers the profit or loss from buying and selling cryptocurrencies as subject to Capital Gains Tax. However, many investors are unaware that certain actions are considered taxable events. For example:
- using cryptocurrency to purchase goods or services
- exchanging one type of cryptoasset for another; or
- gifting cryptoassets.
In certain circumstances, income tax and NI may be payable.
These letters, which are based on data obtained from major crypto exchanges, warn that failure to disclose could lead to additional tax liabilities
Additionally, the constantly evolving nature of the cryptocurrency market, combined with the relative novelty of these assets, has left some investors unsure of their tax obligations. Misconceptions, such as the belief that holding assets in crypto without converting them to fiat currency exempts them from tax, further contribute to non-compliance.
Options for Voluntary Disclosure to HMRC
If you receive such a letter from HMRC, you must take action within 60 days even if no tax is due. If you submitted a tax return, the return should be amended where possible. If you did not submit a tax return, or the deadline has passed, you should use the dedicated Cryptoasset Disclosure Facility (CDF)to inform HMRC.
While the CDF was specifically designed for cryptocurrency owners, there are other disclosure routes which might be more appropriate depending on individual circumstances:
1. Contractual Disclosure Facility (CDF) – This facility offers protection from prosecution for those making full disclosures of deliberate tax fraud, making it a critical option for those concerned about potential criminal liability.
2. Worldwide Disclosure Facility (WDF) – Suited for individuals with offshore holdings, the WDF allows for the disclosure of unpaid taxes on global assets.
3. Digital Disclosure Service (DDS) – Best for UK-based holdings or when multiple tax issues, such as inheritance or corporation tax, are involved.
If you receive such a letter from HMRC, you must take action within 60 days even if no tax is due.
These disclosure options allow taxpayers to notify HMRC of their intent to disclose and provide a 60-90 day window to make full disclosures and settle any outstanding liabilities. This flexibility is especially useful for addressing multiple tax issues at once, which is often the case with complex financial situations.
Take Prompt Action – Choose The Correct Disclosure Option
Receiving a nudge letter from HMRC should not be taken lightly. Whether you believe your tax filings are complete or suspect there may be discrepancies, it is crucial to act quickly. Consulting a tax adviser can help you choose the correct disclosure option and potentially reduce penalties.
Please note that Shipleys Tax do not give free advice by email or telephone. The content of this article is for general guidance only and should not be considered as tax or professional advice. Always consult with a qualified professional before taking action.
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