“Many successful businesses use surplus profits to invest in property, the stock market or other investments of their choice. That mix of trade and investment can inadvertently be a tax problem but not one which cannot be solved.
Our tip is to review your set up to ensure you and your business does not fall into this trap.”
“What’s the tipping point for incorporating a property portfolio?
The perceived tax saving when comparing Corporation Tax to higher rate Income Tax, and the flexibility of shareholdings for companies may be offset by the costs of incorporation such as professional fees, refinancing costs, Land & Buildings Transactions Tax (LBTT) and Capital Gains Tax (CGT). The trick is to match the savings against the costs to determine if it’s worth it.”
“Employee Ownership continues to gather momentum. This can be an excellent way in which a business can be transferred to a valuable workforce, tax efficiently for the seller, who can also remain as an employee and director, though they must give up control.
This is an option to consider carefully and our Taxperts can help you decide if it’s the right route for you.”
“Often the solution to large Inheritance Tax issues on death can be based on financial services products.
Though you must take your own investment advice, items such as pensions, EIS investments and AIM portfolios can provide massive potential savings in a relatively short space of time.”
“Despite there being no major announcements in relation to either Capital Gains Tax or Inheritance Tax in the Autumn Budget, business owners and high net worth individuals should be aware that there is still an expectation that some adverse changes will be implemented in future, meaning early planning is essential.”
“Many businesses have a mix of fully taxable and exempt supplies for VAT purposes. Often this is as a result of a lack of thought in the business set up. If your business has that mix, is it set up correctly?
Our EQ Taxperts can advise you to make sure your business has the correct set up.”
“In line with current trends, many business owners are coming round to the tax advantages of electric vehicles.
When you are next changing your company car or van fleet, it’s well worth checking the tax advantages of such an acquisition.”
“Many companies don’t think they qualify for Research and Development (R&D) tax reliefs but if you are seeking an advancement in a process or product, you might be able to make a claim that could result in a tax saving.
Get in touch with our R&D Taxperts to discuss your eligibility to make a claim.”
“The final Coronavirus Job Retention Scheme (CJRS) claim must be submitted by 14 October 2021 and you have until 11:59pm on 28 October 2021 to make any amendments.
Failure to manage an error appropriately could be deemed as a ‘deliberate and concealed’ activity, resulting in a penalty of up to 100% of the amount you have to repay and having your details published along with other deliberate tax defaulters.”
“With the temporary VAT reduction of 5% coming to an end on 30 September 2021, and replaced with a transitional rate of 12.5% until 31 March 2022, it is important that your booking and till systems are set up correctly.
You need to also be mindful of the additional accounting challenges if you receive payments or issue invoices that straddle the change in VAT rates.”
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Chartered Accountants
