Clear and hassle-free advice for pharmacists
Pharmacy
Clear and hassle-free advice for pharmacists.
Shipleys have been using their specialist knowledge in the healthcare sector for over 10 years. We act for pharmacies of all sizes from small independents to larger groups, as well as GP linked pharmacies and locums.
The industry has seen a surge in growth in recent years, achieved against a back drop of challenges to maintaining and increasing profits. Independent Pharmacy owners need to be proactive in providing more of the advanced and enhanced services on top of the essential services with many pharmacies now providing additional enhanced services to help support and promote dispensing.
Sections
Independent Pharmacies
We are here to help you maximise your income by letting you concentrate on your business. We provide the following compliance services at a fixed price:
• Monthly bookkeeping, VAT and payroll
• Annual accounts
• Corporation tax return
• Personal tax returns
• Unlimited Ad hoc telephone and email advice
As part of our service we will automatically look at and discuss the following areas when we do your accounts:
• GP margin and turnover comparisons to other similar clients
• NHS income v OTC income
• Staff/locum costs
• Net profit margin
• Drawing money out tax efficiently
• Other tax specialist planning advice
We have nationwide coverage and are happy to come and visit you.
Locum Pharmacists
As specialist locum accountants, Shipleys has become the preferred tax and accounts service provider for http://www.pharmacy-forum.co.uk members.
As well as doing your normal tax returns and accounts for the year, we will help with the following:
• If you have not done any planning then you probably are paying over the odds. Call us now to arrange a FREE TAX HEALTHCHECK.
• Sole trader v limited company – which is the best route for you? We will give you a tailored answer as part of our free tax healthcheck.
• Withdrawing money – what’s the best way of paying yourself? Again, if this isn’t done right you could end up being classed as being employed and not self employed under employment status rules and lose valuable tax reliefs
• How to minimise the risk of a tax enquiry using simple techniques.
• Expenses – are you claiming everything you are allowed to claim? We will give you a specially prepared list of expenses for locums.
• Buying a car – which is the best way, personally or through the company?
• Those in the property game – they can explain how you can pay significantly less income tax and capital gains tax on your property investments and dealings.
• Ad hoc telephone and email advice
Tax Planning for Pharmacies
Tax law never stands still and goal posts are always moving. It is crucial that you have the right adviser to guide you through the maze and help reduce your tax bill through legitimate and transparent means.
Shipleys Tax has a number of specialist tax advisers with wealth of experience in the pharmacy sector who can talk to you about the many tax saving opportunities.
We always say the best tax planning is done before a major event in the business so seek advice early in the lifecycle of a transaction. Some areas to consider:
• Buying or Selling a Pharmacy – huge tax saving opportunities both personal and corporation tax
• GP linked pharmacies – tax efficient trading structures
• Reduce inheritance tax on death
• Reduce stamp duty land tax on buying
• Offshore tax planning advice for certain businesses
• Provide property development strategies
• Use of EIS/SEIS and corporate venture vehicles
• Use of LLPs and corporate partnerships
• Asset protection and preservation of wealth
• Estate planning and succession
Latest news & blogs…
Tax advantages of using a property LLP
IF YOU JOINTLY own property with family, an LLP might be the most tax-efficient way to run your property business, especially if you have a differing income split. In today’s short article Shipleys Tax explains some of the basic tax advantages in using an LLP.
What is an LLP?
A limited liability partnership (LLP) can be used for a property business and offers some advantages over unincorporated businesses and limited liability companies. A property LLP is something of a halfway house, providing the comfort of limited liability with the flexibility as to how profits are shared.
The use of a property LLP can be particularly useful in a family tax planning situation where the individuals each hold property in their own name, but a different income split would be beneficial from a tax perspective.
Setting up a property LLP
Like a company, a property LLP must be registered at Companies House.
An LLP can hold property in its own right. The LLP can acquire property or the partners can transfer property that they already own into the LLP.
The use of a property LLP can be particularly useful in a family tax planning situation where the individuals each hold property in their own name, but a different income split would be beneficial from a tax perspective.
Transferring property into the LLP can be advantageous from a tax perspective. The property is held on trust in the LLP, but the underlying legal ownership is unchanged, meaning there is no SDLT to pay. Where a member transfers property into the LLP, the value of that property at the time of transfer forms the opening balance on their equity account.
Flexibility to share profits and losses
One of the key benefits of the LLP is the flexibility to share profits and losses. This provides the potential for a tax efficient distribution.
Where a property is sold realising a gain, the individual partners pay capital gains tax on their share of the gain.
The default position is to share profits and losses in accordance with the ratios on the members’ capital accounts. However, the ability to pay salaries in a different ratio provides flexibility to tailor the distribution in a tax efficient manner. Providing or withdrawing capital will also change the default profit sharing ratio.
Tax position
From a tax perspective, an LLP is transparent for tax purposes.
This means that the individual partners are treated as being self-employed and must pay income tax on their share of the profits, and also Class 2 and Class 4 National Insurance contributions where relevant.
Where a property is sold realising a gain, the individual partners pay capital gains tax on their share of the gain.
Each individual partner must return their income from the LLP on their personal tax return. The LLP must file a partnership return.
It is important that the LLP is carried on with a view to making a profit as anti-avoidance rules may apply which have the effect of switching the tax transparency off.
If you are affected by any of the issues above or would like more information, please call 0114 272 4984 or email info@shipleystax.com.
Please note that Shipleys Tax do not give free advice by email or telephone.
Grants for businesses affected by COVID-19
MANY BUSINESSES have been forced to close as a result of the national and local restrictions introduced to slow the spread of Coronavirus. Where this is the case, the business may be eligible for a grant from their local authority. In today’s Shipleys Tax note we look at some options currently available for struggling businesses.
The following grant support is available to businesses in England during the second national lockdown. Grants to businesses in Wales, Scotland and Northern Ireland are subject to devolved rules.
Businesses closed due to national retractions
Business that were previously open as usual, but which were required to close between 5 November 2020 and 2 December 2020 as a result of the second national lockdown in England may be eligible for a grant from their local council for the 28-day period for which the national lockdown applies.
A business may qualify for a grant if it meets the following conditions:
- it is based in England;
- it occupies premises in respect of which it pays business rates;
- it has been required to close between 5 November 2020 and 2 December 2020 as a result of the national lockdown; and
- it has been unable to provide its usual in-person service from those premises as a result.
Businesses that qualify may include non-essential shops, leisure and hospitality venues and sports centres.
Business that normally operate as an in-person venue but which have had to modify their services as a result of the lockdown also qualify. An example here would be a restaurant that is not allowed to provide eat-in dining but which stays open for takeaways.
Businesses are only entitled to claim one grant for each non-domestic property.
Amount of the grant
The amount of the grant is based on the rateable value of the business premises on the first day of the second national lockdown.
Where the rateable value of the business premises is £15,000 or less, the business will receive a grant of £1,334 for each 28-day period for which the restrictions apply.
Where the rateable value of the business premises is between £15,000 and £51,000, the business will receive a grant of £2,000 for each 28-day period for which the restrictions apply.
Where the rateable value of the business premises is £51,000 or above, the business will receive a grant for each 28-day period for which the restrictions apply.
Applications should be made to the local council following the application procedure on the relevant council’s website.
Excluded businesses
A business is not eligible for a grant if it can continue to operate during the restrictions because the business does not depend on providing in-person services from their premises. Businesses that would fall into this category would include accountants and solicitors.
Businesses that are not required to close, but which choose to, are also ineligible for a grant.
A business which has exceeded the permitted state aid limit – set at €200,000 over a three-year period – is not eligible for further funding but may qualify for help under temporary Covid-19 measures.
Local restrictions
Where local restrictions are in force, businesses may qualify for separate grants if they are either forced to close or, where they can remain open, their business is severely impacted as a result of those restrictions. Details of the grants available where local restrictions apply can be found on the Gov.uk website.
If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.
Please note that Shipleys Tax do not give free advice by email or telephone.
Dubai changes company ownership laws
IN A BID to attract wider investment and boost the gulf economies, UAE members have opted to remove one of the main barriers to trade – the requirement for a local sponsor.
Understandably, the changes to ownership laws being introduced across the UAE have received a warm welcome from the business community, who believe it will further facilitate doing business in the country and attract foreign investment.
In today’s Shipleys Tax we look at what’s changed and how it impacts on those looking to trade in the Gulf.
What are the reforms?
The reforms to companies’ law are broadly wide-ranging, but it is the removal of the requirement for a local sponsor for companies that operate onshore that is seen as the biggest potential incentive for investment flows into the country.
For companies that currently have sponsors it will reduce their operating costs and create a more competitive environment, it will further boost the number of onshore companies opening up.
This is part of a giant step forward along a path that the UAE has been undertaking for a number of years, but it is anticipated that this level of rapid change will have a significant impact.
It makes the UAE a much more attractive as a destination for foreign investment.
The removal of the requirement for a local sponsor will give entrepreneurs a greater sense of control over their own business and remove barriers to trade, aligning the economies with that of the UK and others.
It is also likely to provide an overall demand boost for commercial property, which has witnessed a few difficult years since the decline in oil prices which began in 2014.
The changes are part of a package of legislative reforms aimed at ensuring the UAE retains its position as the leading hub for regional and international business.
If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.
Please note that Shipleys Tax do not give free advice by email or telephone.
Testimonials
“We value the close working relationship we have with Shabeer and the specialist teams at Shipleys Tax...(read more)
Dr K, GP Surgery – Yorkshire
“One of the most frequent issues we had with our previous accountants was not being made aware, in advance... (read more)
FM Medical Practice – Manchester
“Accountants seem to promise the earth but don’t deliver do they? Well we found the opposite. Abdul made himself... (read more)
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