Practical and intelligent tax saving solutions for you and your business

Tax Solutions

Whether personal or business tax affects our everyday life and it never stands still.

In the current climate clients expect their advisers to help them make more savings each year through careful tax planning.

Shipleys have a team of knowledgeable tax and accountancy experts who constantly look at ways to add value and provide practical effective solutions whether it’s an owner-managed business or a multi-national group. Our clients know that we genuinely value their custom and ensure that they are always more than satisfied with our work and costs.

Sections


Structuring your Business

Did you realise that the way your business is structured could be affecting how much tax you’re paying?

Do you get the feeling that you could be paying too much tax?

Operating through the appropriate legal entity is vital but can often be neglected if a business has grown organically.

We can provide advice on the most suitable business structure – sole trader, partnership, company, limited liability partnership.

We can help you to structure your business in the most tax efficient way, saving you tax and improving the efficiency of the business.
We also have the expertise to advise on all areas of corporate structuring issues such as:

• Reorganisations and mergers
• De-mergers
• Company Purchase of Own Shares
• Reductions in share capital
• Planning with share rights
• Group tax planning

The taxation issues can be complex, but with our expertise we can guide you through, helping you meet your commercial objectives in a tax efficient way.

One of the most common questions we hear is “how do I get my profits out of the company paying as little tax as possible?”

We work with our clients to consider the tax picture as a whole – getting an understanding of both personal and corporate, short term and long term goals.

Because we take into account the whole picture, we can ensure that when it comes to tax, you won’t miss a trick and that all avenues of tax relief are explored.

We know that working with us, through careful planning, you can extract tax from the business without facing a hefty tax bill.

We can also help you to calculate the taxation impact of extraction policies by dividend or salary/bonus; provide advice in relation to pension contributions and also have particular expertise in tax planning using different classes of share capital.

If you like the sound of working with people who have your goals and aspirations at the heart contact us now.


Property Tax

Shipleys are experts when it comes to property tax matters, advising you on how to arrange your property transaction in the most tax efficient manner. With effective strategies, we can significantly reduce the exposure on property transactions.

Speak to us about:

  • Services for developers
  • Services for investors
  • Professionals working in the property sector
  • Services for property agents


Capital Allowances

When you buy, lease or improve a commercial property, HMRC allows you to offset some of that expenditure for tax purposes. Your advisors have probably claimed for the more obvious features, but as capital allowance specialists we dig much deeper to make significant additional claims on your behalf.

Typically, we identify Capital Allowances of between 10% and 30% of the commercial property purchase price.

We use specialist surveyors with tax expertise, to visit your property to uncover this extra layer of allowable items. This service is relevant for two types of clients:

1. Commercial property owners and investors who can retrospectively claim for unused allowances, (going back many years in some cases), for alterations, extensions and upgrades to their buildings.

2. Buyers and sellers of commercial property who need to agree a value for plant and machinery as part of the purchase process.


Inheritance Tax Planning

IHT has been commonly described as a ‘voluntary tax’ and with good reason. It can usually be reduced with proper and often simple planning, ranging from lifetime planning, will planning or even after death variation or disclaimer can mitigate tax.

IHT planning will assist in preserving family wealth and will reduce tax bills for your heirs, With careful lifetime planning, you can even reduce your exposure to IHT whilst retaining the asset and income.


Asset Protection and Preservation

Asset Protection Essential for protecting and preserving company and family assets from third party claims, divorce, bankruptcy, spendthrift spouses, and youthful improvidence. Asset Protection has a number of forms, including:

Company Asset Protection – The valuable assets in a company, namely property, cash and brand, may in certain circumstances be protected by a restructuring exercise, using group structures, all without triggering taxes on the restructure whilst affording protection.

Family Asset/Wealth Protection – Family assets/wealth can be protected and preserved from claims, bankruptcy and divorce. Typically assets are placed into a properly constituted trust within certain limits with the result that the preservation and protection of the family assets is achieved without adverse tax consequences.


Non UK Resident Domicile & Property Holding Structures

This topic always seems to raise the most debate about the fairness of the UK tax system. And has been squeezed over the years, however if you are in the tax privileged position to be either non UK Dom or non UK Resident the tax benefits are still extra ordinarily valuable in the right circumstances, to say the least. However, this valuable status is generally under used (except by the super rich).

A key area of tax planning is on property holding structures for non UK resident and non UK domiciles individuals as properly structured solutions achieve significant tax savings.


Tax & VAT Investigations

Tax investigations by HMRC often come as an unpleasant shock to individuals or businesses and can be very stressful. Those under enquiry often feel targeted and victimised.

At Shipleys we are non-judgmental, vigorous in defending our clients and aim to resolve the investigation in the most efficient manner possible without compromising the quality of our work.

We have the experience and know how to handle local district cases to large tax fraud cases both in direct and indirect (VAT) tax.


VAT Planning

Our VAT experts trained with HM Revenue & Customs (HMRC) and have a complete understanding not only of the legislation but of HMRC’s policies and procedures.

Our work extends to every aspect of VAT but some of the services we are most often asked to provide involve negotiation with HMRC on liability issues and agreeing partial exemption methods, providing VAT planning ideas for clients to improve cash flow, assisting clients through the maze of VAT property law, and advising them on EU and other international transactions.

Some of the areas we cover most include:

• VAT and property
• VAT and not-for-profit organisations
• VAT and offshore companies

Contact us now for a free no obligation consultation with a tax consultant.

Latest news & blogs…

HMRC starts furlough fraud checks

Tax Solutions Shipleys Tax Advisors

HMRC have started to open compliance checks into employers’ Coronavirus Job Retention Scheme (CJRS) claims after sending thousands of “nudge” letters earlier this year advising them that they may need to repay amounts received.

In today’s Shipleys Tax brief we look at what this means and what you should do if you are contacted by HMRC. If you have received correspondence from HMRC and require advice on an investigation or to appeal a penalty assessment, you should seek tax advice as soon as possible to understand your tax position and take necessary action.


What is the compliance check or tax investigation?

The compliance check starts by requesting very detailed information on every employee for which furlough monies were claimed. The letters will not necessarily be sent to the employer’s agent, as not many businesses have an agent for employment tax matters in the same way as for their corporation tax/income tax returns.   

The letter gives a short timescale to provide the information to HMRC. If HMRC issues a formal information notice to obtain the data (if it is not provided in response to the informal request, and there is no ‘good reason’ for the delay – this may detrimentally affect the investigation and potentially increase any CJRS penalties charged. 

The compliance check starts by requesting very detailed information on every employee for which furlough monies were claimed. 

The type and severity of the investigation is completely dependent on the facts of any individual case. HMRC have a specialist unit looking into these claims and you safely assume they will link with other employer compliance units to get the full picture.

It is strongly recommended that you consult a tax lawyer as soon as possible to receive detailed advice on how to take control of the situation and negotiate with HMRC.
 
What is CJRS/furlough fraud?

There are many ways in which a business could commit furlough fraud or abuse of the CJRS, for example:

  • Getting a furloughed employee to return to work as a ‘volunteer’ without pay
  • Not paying employees the full amount received from HMRC
  • Failure to inform staff that they have been furloughed
  • Not paying employees the full amount received from HMRC
  • Incorrect calculations and errors in furlough claims
  • Employers making backdated claims in periods in which the employee was working
  • Employers pretending to hire staff shortly prior to the qualifying period to take advantage of the payments.

It is strongly recommended that you consult a tax lawyer as soon as possible to receive detailed advice on how to take control of the situation and negotiate with HMRC.

What happens if you were not entitled to claim furlough?

If you are found to not have been entitled to the grant in the first place, or have used the funds inappropriately, the payments can be clawed back by way of a 100% income tax charge regardless of whether the claim was made innocently or deliberately.

As such, HMRC will be able to assess the tax due (and thereby impose the clawback) within four years after the grant was made in the case of an innocent error, six years if the error was careless, and twenty years if the claim was fraudulent.

In cases of serious fraud, HMRC may involve the police and prosecute. This might be using legislation which allows the indictment of a company for the facilitation of tax evasion even if senior management was unaware of the offence, unless reasonable preventative measures were in place.

Businesses are therefore required to notify HMRC if they know (or discover) that they have received a grant to which they were not entitled. Penalties and interest will apply for failure to notify and to the repayment clawback.

Expert Tax Investigation Advisers

If you need HMRC Tax Investigation advice, we have experts that are available to aid you at every stage of the HMRC investigation process. Members of our investigation team are ex-HMRC and have first-hand experience and knowledge of the internal workings of HMRC. Our team specialises in successfully challenging HMRC decisions and will assist you in every aspect of the investigation.

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.

How to make childcare costs Tax-efficient

Tax Solutions Shipleys Tax Advisors

PAYING for childcare can be expensive. The tax system, however, can provide somewhat of a helping hand. In recent years, there has been a shift away from tax relief for employer-supported childcare and vouchers to a Government top-up scheme.

In today’s Shipleys Tax brief we quickly cover how it works, who’s eligible and how it can benefit you.

Government scheme

The Government operate a tax-free childcare scheme whereby parents deposit money into an account which can be used to meet childcare costs and the Government provide a tax-free top up.

To qualify for the scheme, the parent (and their partner if they have one) must each expect to earn at least £1,853.28 over the next 3 months. This is equivalent to 16 hours a week at the National Living Wage of £8.91 an hour. However, if either the claimant or their partner expect to have adjusted net income of more than £100,000 in the current tax year, they cannot benefit from the tax-free top up.

The Government operate a tax-free childcare scheme whereby parents deposit money into an account which can be used to meet childcare costs and the Government provide a tax-free top up.

Eligible parents can access the tax-free top up by setting up an online childcare account for their child. For every £8 that is deposited into the account, the Government will add a further £2, to a maximum of £2,000 a year (or £4,000 a year where the child is disabled). The funds can be used to provide approved childcare, including that provided by childminders, nurseries, nannies, after-school clubs and playschemes, as long as the provider has signed up to the scheme. The care can be provided until the September after the child’s 11th birthday (or up to the child’s 17th birthday if the child is disabled).

The Government top-up scheme is not available to universal credit claimants, and cannot be used in addition to employer-provided vouchers or employer-supported care.

Employer-supported childcare and childcare vouchers

Where an employee joined their employer’s childcare or childcare voucher scheme on or before 4 October 2018, they can continue to benefit from the associated tax relief while their employer continues to operate the scheme. Childcare vouchers and/or employer supported childcare are tax-free up to the employee’s exempt amount. Where the employee is a basic rate taxpayer or joined the scheme prior to 6 April 2011, the exempt amount is £55 per week. Otherwise the exempt amount is £28 per week where the employee is a higher rate taxpayer and £25 per week where the employee is an additional rate taxpayer. The exemption also applies for National Insurance purposes. Employees only have one exempt amount for employer-supported care and vouchers, regardless of the number of children that they have.

It is also possible for employer-provided childcare and childcare vouchers to be made available under a salary sacrifice scheme without triggering the alternative valuation rules.

Where the employee is a basic rate taxpayer… the exempt amount is £55 per week. Otherwise the exempt amount is £28 per week where the employee is a higher rate taxpayer and £25 per week where the employee is an additional rate taxpayer.

Workplace nurseries

No tax charge arises under the benefit in kind rules where childcare is provided in a workplace nursery. Unlike the exemption for employer-supported care and vouchers, there is no cap on the value of childcare that can be provided tax-free in a workplace nursery. However, there are stringent conditions that must be met for exemption to be forthcoming.

Which is best?

Where a parent could potentially benefit from more than one scheme, they should evaluate the options and can choose the one best suited to their needs. Employees in an employer-supported scheme or employer voucher scheme will need to leave that scheme if they sign up for the Government scheme, and will not be able to re-join the employer’s scheme if they change their minds.

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.

New NIC tax rates – how are you affected?

Tax Solutions Shipleys Tax Advisors

NEWS UPDATE

On 7 September 2021 Boris Johnson announced that NI and dividend tax rates will be hiked to help fund social care, pay for COVID-19 support and help the NHS backlog.

In todays Shipleys Tax brief we look at who will be affected and by how much?

Firstly, NI rates will increase by 1.25% from April 2022. This will apply to both primary and secondary Class 1 contributions, which will increase to 13.25% and 3.25% for earnings up to, and above, the upper earnings limit respectively. Class 4 rates will also increase to 10.25% and 3.25%. The additional 1.25% will be carved out as a separate levy from April 2023 – essentially it will be a new tax.

To illustrate what this will mean for employees, the following table is a useful reference, assuming the current NI thresholds apply:

SalaryCurrent NI billExpected increased NI billChange
£15,000.00£651.84£719.74£67.90
£25,000.00£1,851.84£2,044.74£192.90
£35,000.00£3,051.84£3,369.74£317.90
£45,000.00£4,251.84£4,694.74£442.90
£55,000.00£4,951.84£5,519.74£567.90

Secondly, the dividend tax rates will also increase by 1.25%, i.e. to 8.75%, 33.75% and 39.35% for basic, higher and additional rate taxpayers respectively. This will mean slightly higher taxation for company shareholders extracting income via dividends. However it remains to be seen how tax efficient this route still is compared to other remuneration strategies given the NIC hike above.

If you would like to know how you are personally affected by the above measures and you’re options going forward, please contact us on 0114 272 4984 or email info@shipleystax.com.

Please note that Shipleys Tax do not give free advice by telephone or email.

Load More Posts

Testimonials

Contact us

  • info@shipleystax.com
  • 0114 272 4984
  • Wharf House, Victoria Quays,
    Wharf Street Sheffield,
    S2 5SY

Contact Shipleys today

Want to know how Shipleys can help you with practical tax planning through innovative ideas? Let’s talk. Call or email us directly and a member of our team will be in touch within 48 hours.

Contact us