TAX
TAX SERVICES
TAX SERVICES
Efficient and proactive tax planning helps individuals and businesses take advantage of tax reliefs available to them, maximising income, profitability - and achieving their goals.
TAX
TAX
MAKING TAX DIGITAL (MTD)
Tax is changing for businesses, accountants and bookkeepers. Digital finance record keeping is becoming mandatory, learn why and how you can get compliant.
Making Tax Digital (MTD) is part of the government's plan to make it easier for businesses to stay on top of their day-to-day accounts, improving efficiency, accuracy and ease of compliance.
MTD is the beginning of the end for paper-based accounting for millions of business owners and the self-employed.
From April 2019, businesses above the VAT threshold are required to set up a digital tax account and file quarterly returns online. The government believes a digital tax system is the right decision, however the implementation and timeline is still being considered.
What MTD means to you
We are advising our clients start to prepare now, as more and more businesses migrate to the cloud to improve their efficiency, boost profitability and remain compliant. As it stands:
- Only VAT registered businesses will need to keep digital records and only for VAT purposes.
- They will only need to do so from April 2019.
- Businesses will not be asked to keep digital records, or update HMRC quarterly for other taxes until at least April 2020 (originally, this was April 2019).
- Any business can begin to migrate to the cloud now to benefit from cloud accounting technology so we would encourage you to consider your options and have a plan in place.
Keep reading to find out more, or
download our factsheet.
TAX INVESTIGATIONS
Support every step of the way if you have a tax investigation.
Our philosophy of developing client relationships based on trust and mutual respect will always provide the reassurance that someone is really on your side.
Our tax experts fully understand the complexities of the tax system and know what the investigators are looking for.They also understand the stress and disruption a tax investigation can cause and work to make the process as straightforward as possible. Keeping our clients up to date on progress - advising clients at all times of both theirs and HMRC’s position during the investigation.
We support our clients at HMRC meetings either alongside the client or representing them on their behalf, drafting responses to HMRC and advising on the level of tax and penalties that may be charged.
At all times the best interests of the client are put first in deciding how an investigation should be dealt with. We cover investigations from a relatively simple Tax Return or PAYE Compliance check by a local tax office, up to a full Code of Practice 9 disclosure report required by a HMRC Fraud office where more serious tax irregularities have been suggested.
VALUE ADDED TAX (VAT)
Save time and money whilst ensuring your business is compliant with HMRC.
We understand a lot is involved with running a successful business and keeping on top of VAT Returns is an extra burden.
We offer an extensive VAT service, covering all aspects from registering your business, completing and submitting your VAT Returns. Let us do the hard work for you, ensuring you stay compliant and claim back input VAT on all possible payments.
By passing over your VAT affairs to Alexander Vaughan we can save you valuable time and stress. Our services include:
- Registering your business for VAT
- Completing and submitting VAT Returns by the required deadlines
- Saving you from incurring penalties and interest
- Keeping up to date with all current laws
- Dealing with any VAT enquiries that may arise
- Keeping records of all purchase and sales information
- Producing customised reports to suit your individual needs
- Benefit from VAT schemes that save you money
Contact us
today for more information our our VAT service.
R&D TAX CREDITS
We help companies maximise the value of their R&D Tax Credits Claims. Don't be one of the thousands of businesses missing out - find out more about the scheme and what it could be worth to you.
R&D Tax Credits Explained:
A Government Backed Scheme
R&D Tax Credits are backed by the government and designed to support businesses that invest in scientific or technological advances.
Reduce Corporation Tax or Receive Cash Back
Claims reduce corporation tax on profits, or provide cashback in the event of loss-making providing you with efficient tax-planning.
Wide Range of Qualifying Sectors and Costs
From our experience nearly every company undertakes research and development in some form or another - talk to us today
What we do
Our tax experts help hundreds of SMEs across almost every sector to receive millions of pounds to take their business further.
We handle every aspect of your claim by identifying qualifying R&D activities and costs in your business, preparing a report and tax credit calculation, and dealing with HMRC. Learn more about our process or read on to see what a claim could be worth.
Whether you are making a loss or a profit, you can still make a claim and we guarantee to work for any client, regardless of fee.
Our Process
We make the whole process straightforward - from initial contact to receiving your tax credit.
Eligibility Check
One of our team will explain more about the scheme and confirm you are eligible to receive the credit.
Fact Finding
We look at what you're doing, how you're doing it and why it's helping to innovate your industry.
The Technical Bit
We prepare a report explaining the qualifying R&D and identify the costs you can claim.
Receive Tax Credit
We submit the claim, HMRC review the claim and once approved, you'll receive the tax credit.
INHERITANCE TAX
Inheritance Tax (IHT) is the tax paid on your estate before it can be passed on to your beneficiaries. Careful planning can reduce the tax paid, allowing you to keep wealth in your family.
At a rate of 40% tax, it’s not surprising that IHT is an unpopular tax. We work hard, invest for our futures and build businesses. We pay income tax (on our salaries and investment income), pay capital gains tax when we sell assets. And then, we pay IHT on the wealth that we have generated, with a view to passing this onto our children.
By being proactive there are simple ways and means of reducing your inheritance tax charge.
Inheritance Tax Advice
How do you reduce Inheritance Tax?
One way to reduce your Inheritance Tax liability is to reduce your estate during your lifetime. Every individual has different financial goals, so you should seek professional advice before taking any action. Some possible ways Alexander Vaughan can advise on reducing Inheritance Tax include:
- Make sure you have a Will - and leave everything to your spouse or civil partner, resulting in an IHT threshold of £650,000.
- Give tax-free gifts of up to £3000 each year, or £5000 for a child’s wedding (£2500 for grandchildren).
- Give nominal gifts out of income but you must be able to prove a trend, not deliberately giving away capital.
- Place assets in a trust - this could be used to benefit your children, in the future when they are old enough to be responsible.
- Leave something to charity - if you leave at least 10% you’ll pay 36% IHT instead.
- Consider various reliefs available - including Business and Agricultural Property Relief.
- Spend it! Many people work all their life and they don’t enjoy it - but you should carefully consider affordability as you don’t know how long you will live.
Frequently Asked Questions about Inheritance Tax Advice
What is an estate?
An estate refers to the money, land, possessions, properties and other assets owned by a person, after debts and funeral costs.
What is a Will?
A Will is a legal declaration of a person's wishes regarding the disposal of their estate after their death. It is estimated around 60% of the adult population do not have a Will.
What is the rate of Inheritance Tax?
Inheritance Tax is currently taxed at a rate of 40%.
What is the current Inheritance Tax Threshold - (also known as the Nil Rate Band (NRB)?
The Nil Rate Band is a tax-free allowance of £325,000 for a persons estate. This is the amount of wealth a person can have before paying Inheritance Tax. On death, your NRB transfers to your spouse or civil partner, effectively doubling the threshold before IHT to £625,000.
What is the Residence Nil Rate Band (RNRB)?
The Residence Nil Rate Band, also known as the Home Allowance, is an additional £125,000 (as of the 2017/2018 tax year) allowance, rising to £175,000 in 20/21. RNRB provides an additional allowance to reduce IHT against your home when it is left to your children or grandchildren.
What is a Trust?
A Trust is a way of managing assets for people outside of your estate - therefore they are exempt from IHT. There are various types of trusts for different requirements.
How Alexander Vaughan can help
At Alexander Vaughan, we can look at ways to help you mitigate against Inheritance Tax, or eliminate it completely through tax-efficient strategies. Our advice is tailored to you, based on a full review of your personal wealth and wants for the future.
As part of our IHT service, we can also advise on trusts, effective remuneration planning, capital gains tax as well look after your personal tax return.
Contact one of our team for more information on Inheritance Tax, and plan for your future, today.
TAX ADVICE, SERVICES AND PLANNING
We help minimise tax payable whilst complying with appropriate tax laws.
Nobody wants to pay too much tax and the philosophy of the tax department is whilst we will help you comply in every way with all of the tax laws we will also help you arrange you and you companies affairs in such ways to minimise any tax payable.
Corporation Tax
Tax represents a substantial cost to any profitable business, not only in terms of the tax itself but also in compliance with reporting obligations, investigations with tax authorities and penalties for non-compliance.
We can relieve you of any administrative burden of complying with tax legislation. We will deal with all company tax matters, including preparing corporation tax computations and preparing and submitting your corporation tax self-assessment return.
We will liaise fully with the Inland Revenue on your behalf and ensure you have the most tax efficient structure for you and your business.
Business Tax
By preparing your accounts and tax return as soon as possible we make sure that you can budget for your coming tax payments well in advance - and we have time to look for ways to reduce them.
Personal Tax
We will prepare and submit your self-assessment returns with the minimum of fuss. By dealing with all of your personal & business affairs we can ensure that we look at the whole picture maximising potential savings.
Inheritance Tax
Inheritance Tax is sometimes called a 'voluntary tax' by accountants simply because there is so much you can do to reduce its effect. Although it's something most of us don't want to think about it, it involves the two most certain things in the world ~ death and taxes. You can't do anything about the first, but prudent planning can reduce the pain of the second.
We are concerned about all aspects of succession planning, not only that you maximise the amount retained by your loved ones, but also ensuring a smooth transition of your business.
INTERNATIONAL TAX
Talk to us about overseas investment, company structuring and tax planning.
Alexander Vaughan advise on multi-jurisdictional and cross border transactions, overseas investment, residency and domicile matters, offshore trusts, anti-avoidance tax legislation, international structuring and tax planning.
Our expertise in taxation extends to international tax planning and compliance.
PATENT BOX
Patent Box was introduced as part of a range of schemes to encourage innovative companies to keep their intellectual property (IP) in the UK.
Patent Box Key Facts
- Pay just 10% Corporation Tax on qualifying profits
- You must own or exclusively licence a Patent
- Applicable to UK, European and EEA Patents
- Applies to profits attributed to products/services utilising the patented technology
- Works seamlessly in conjunction with R&D Tax Credit legislation - claim both!
- Claims can be made up to six years from the date of the original patent application
- Wide range of qualifying income (direct sales, license fees, royalties, income from infringements.)
Patent Box offers a generous rate of 10% corporation tax either to products that included patented elements or to companies that sold patented products under an exclusive licence.
As a result, in July 2016, the scheme was reformed, however, the calculation of qualifying profits is complex and requires a forward-thinking approach to accounting.
Alexander Vaughan advise on IP issues and making appropriate use of both R&D Tax Credits and Patent Box to maximise the benefit to your company.
Open up the Patent Box
Patent Box applies to profits attributed to products/services that utilise the patented technology - whether sold as a patented item or a product that contains a patented part.
Patent Box goes hand in hand with claims for Research and Development (R&D) Tax relief - and companies will not be penalised for claiming both forms of Tax relief.
For Patents granted after 30 June 2016, the amount of benefit achievable under the Patent Box is linked to the proportion of R&D expenditure incurred.
How it works
A company files a number of patents after 1st July 2016 and elects to be part of the scheme. A framework is used to calculate the “IP Profit” and Patent Box relief is then given to any income generated from those IP Assets.
The scheme now also requires companies to separate income and expenditure for each income stream, identifying non-IP income and applying the calculations to each stream individually.
It should be noted that this can be quite cumbersome, but there are systems and processes that can be used to ease additional accounting administration.
The calculation for working out Patent Box is complex, with many factors and considerations to be aware of. It is therefore recommended that any company considering a Patent seeks proper advice.
Take the next steps
If you are generating profit from IP assets it is worth considering Patent Box under the new plans.
Even with the future reduction in the Corporation Tax rate to 17% in 2020, successful use of Patent Box will make a difference to your liability.
We advise all our clients to review their product lines to see if any patentable technologies or products exist.
Speak to our team to find out more about your Patent Box eligibility and how the scheme could help your business.
Tax Services;
Tax Services;
Offering a range of services to a large variety of businesses and sectors, we provide business advice and support for all your accountancy requirements.
Offering a range of services to a large variety of businesses and sectors, we provide business advice and support for all your accountancy requirements.
Interested in our services? We’re here to help!
Interested in our services? We’re here to help!
We want to know your needs exactly so that we can provide the perfect solution. Let us know what you want and we’ll do our best to help.
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