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…

Tis the season to be scammed

Tax Solutions Shipleys Tax Advisors

Tips on avoiding tax scams

AS THE FESTIVE SEASON draws nearer, HMRC is warning millions of Self Assessment customers to be aware of fraudsters in the run up to the 31 January tax deadline. Cyber criminals are taking advantage of “reminder” SMS messages and bogus emails during the festive season to trick taxpayers out of their money.

Just in the last year, HMRC received nearly 900,000 reports from the public about suspicious HMRC contact – phone calls, texts or emails. More than 100,000 of these were phone scams, while over 620,000 reports from the public were about bogus tax rebates.

Cyber criminals are taking advantage of “reminder” SMS messages and bogus emails during the festive season to trick taxpayers out of their money.

At Shipleys Tax we look at some of the most common techniques fraudsters use to entrap taxpayers and what you should do if you suspect foul play.

Faking it

Probably the most common methods we come across that fraudsters use includes:

  • Phoning taxpayers offering them a fake tax refund
  • Leaving a voicemail message threatening enforcement action or imprisonment if a bogus tax bill is not paid immediately
  • Pretending to be HMRC by texting
  • Emailing a link which will take customers to a false page, where their bank details and money will be stolen.

…taxpayers should never give out private information, reply to text messages, download attachments or click on links in texts or emails, even if it looks like a message from HMRC…

Taxpayers need to recognise the signs to avoid becoming victims themselves. HMRC, like other genuine organisations and banks, will never contact customers asking for their PIN, password or bank details. HMRC also do not email taxpayers direct.

Needless to say, but taxpayers should never give out private information, reply to text messages, download attachments or click on links in texts or emails which they are not expecting, even if it looks like a message from HMRC complete with logo and branding.

What should you do if you suspect a scam?

  • Number one rule: do not respond. Always check with your professional adviser (or HMRC direct) regarding the status of your tax affairs.
  • HMRC operates an inbox for people to report suspicious emails to, at phishing@hmrc.gov, while SMS messages should be forwarded to 60599.
  • If you have suffered financial contact your bank immediately and report it to Action Fraud online at actionfraud.police.uk or by calling 0300 123 2040.

As always, if in doubt check and check again before taking any action.

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 we do not give free advice by email or telephone.

Tax Tip: How businesses can get cash-back upfront on losses

Tax Solutions Shipleys Tax Advisors

FOR MANY BUSINESSES, COVID-19 has caused a massive shock and presented previously healthy companies with a terrible set of challenges. With no income and losses mounting, managing cash flow to stay afloat is vital.

One way to boost cashflow is to tap into tax previously paid by a business. There is a little-known way in which businesses can claim tax back from HMRC even before the losses have been realised. Known as a “provisional loss carry-back claim”, businesses that were previously profitable but are now potentially loss-making, can apply for this to get cash back. This could significantly help cashflow and may even help the business survive.  

In today’s Shipleys Tax brief, we look at this valuable mechanism and how it works.

One way to boost cashflow is… a little-known way in which businesses can claim tax back from HMRC even before the losses have been realised

What is a provisional loss carry-back claim?

A “provisional loss carry-back claim” is a claim by which a business, in exceptional circumstances and set to make a loss, can reclaim tax back for corporation tax paid to HMRC on profits made in a previous accounting year. COVID-19 qualifies as such an exceptional circumstance.

HMRC has updated its company tax guidelines detailing how businesses who wish to make claims for repayments of corporation tax based on anticipated losses can make the claim.

…a business can reclaim tax back for corporation tax paid to HMRC on profits made in a previous accounting year.

How do you qualify?

Any submission to HMRC requesting an early claim to carry back of losses will need to show

  • there is sufficient evidence that losses will be incurred; and
  • that it will be included in the company tax return for the loss making year when it is eventually submitted.

In the current climate this should not be too difficult to do. For example, the business will need to show evidence of the following for the current period:

  • Significant losses – that would exceed other income
  • Management accounts showing losses
  • Accurate forecasts
  • Board minutes where financial performance was noted
  • Consideration of whether performance could improve over the remainder of the accounting period

Providing an acceptable form of evidence is therefore critical to the timely success of a repayment and liaising with your professional adviser is crucial.

Providing an acceptable form of evidence is therefore critical to the timely success of a repayment and liaising with your professional adviser is crucial.

What are the next steps?

Businesses would need to look to prepare and finalise their accounts to quantify any losses that could be claimed by the company. It is possible, together with the aforementioned supporting evidence, to agree a provisional loss carry-back claim with HMRC, potentially enabling a business to claim anticipated losses immediately rather than having to wait for years thereby boosting cashflow now when its most needed.

If you require any assistance compiling and submitting an early loss carry back claim to HMRC in order to try and aide cash flow, please contact us 0114 272 4984 or email info@shipleystax.com and we would be delighted to help you with your claim.

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

Taxi drivers to face HMRC checks before licence renewals

Tax Solutions Shipleys Tax Advisors

IN A BID to tackle the hidden economy, taxi and private hire drivers will need to undergo tax checks for applications to renew their licences the Government has published.

The new rules will target individuals, partnerships (including LLPs) and companies applying for licences in England and Wales to either drive taxis or private hire vehicles (PHVs), or both, operate a PHV business or deal in scrap metal.

In todays tax note, Shipleys Tax assesses the potential wide ranging impact this will have on individuals, their businesses and families.

The new rules will target individuals, partnerships and companies applying for licences in England and Wales to either drive taxis or private hire vehicles (PHVs), or both, operate a PHV business…

What is being proposed?

Licensing authorities will introduce a “tax check” on registration for renewed applications in England and Wales for licences to: 

  • drive taxis and private hire vehicles (PHV)(for example, minicabs)
  • operate a PHV business
  • carry on the business of a scrap metal dealer on a site
  • carry on business as a mobile collector of scrap metal.

Licensing authorities will introduce a “tax check” on registration for renewed taxi/PH applications in England and Wales for licences…

What does this mean?

This means an applicant who wishes to renew a licence will need to undergo a tax check before the licence is renewed. The licensing body (typically a local authority) will have to obtain confirmation from HMRC that the applicant has completed the check before being able to consider their renewed licence application. This in effect means that the licence holder will have to hope for a clean bill of health from the taxman before any licence renewal application will be considered.

Licensing bodies will be required to:

  • signpost first-time applicants to HMRC guidance about their potential tax obligations
  • obtain confirmation that the applicant is aware of the guidance before considering the application
  • where the application is not a first-time application (a renewed application) the licensing body must obtain confirmation from HMRC that the applicant has completed a “tax check”. 

Why is the government doing this?

This is a small but significant step as part of a wider programme to tackle the so called “hidden economy.” The government believes there are individuals and businesses with sources of taxable income that are entirely hidden from HMRC which is depriving the government of funding for vital public services.

They believe people operating in the hidden economy do so because they are perhaps unaware of or confused about their tax obligations. Or if they have been hiding their income for a long period, they are also likely to find it harder to come forward and tell HMRC that they are, or should have been, chargeable to tax (‘registered’).

This is a programme to tackle the so called “hidden economy.” The government believes there are individuals and businesses with sources of taxable income that are entirely hidden…

By making access to the licences taxi/PHV drivers need conditional upon completing a tax check, the government believes the rules above will help applicants for certain public sector licences better understand their tax obligations.

Impact on individuals, households and families

At Shipleys Tax we support any well thought out measures which help people meet their tax obligations. However, the use of a blunt instrument to target what could be complicated tax affairs seems grossly unfair. Experience has shown HMRC are underfunded, understaffed and prone fatal inaccuracies resulting in the taxpayer being unduly penalised and ultimately being forced to into defending themselves, sometimes through no fault of their own.   

The measures will have a material impact on employed drivers and on drivers, PHV operators and scrap metal dealers who are self-employed. All of these will need to complete a tax check when applying to renew licences. If individuals do not complete a tax check the licensing body will be unable to consider their application to renew their licence and their current licence will expire.

… the use of a blunt instrument to target what could be complicated tax affairs seems grossly unfair.

This could have an impact on family formation, stability or breakdown if individuals will no longer be licensed and individuals and their families would have less disposable income.

When are the measures expected to be introduced?

Budget 2020 announced that the government will legislate in Finance Bill 2020-21. The technical consultation for hidden economy conditionality will run until 15th September 2020 with changes taking effect from April 2022.

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 we do not give free advice by email or telephone.

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