“We’re often asked what the key to delivering great tax advice is.
It’s a simple answer – having a relationship with your client so you truly know them, their business, their family circumstances and their objectives. If you ally that with up to date, accurate financial information and technical expertise, then that is a terrific start.”
“When looking to incentivise key people, consider use of equity whether that might be in the form of share options, subscription for shares or perhaps sophisticated bonus schemes linked to the value of a business.”
“The main costs within an R&D claim will be staff costs.
Staff costs include gross salary, employers’ NIC and employers’ pension contributions and given the generous tax relief applying to eligible costs, this may factor into your company’s consideration of remuneration planning, particularly for small businesses.
Remember, dividends do not qualify for R&D uplift.”
“Tax can be highly complex and often accountants, solicitors and other advisers can be guilty of overcomplicating a deal.
Remember when considering the drafting of an agreement, that simplicity should be one of your key considerations. We urge you not to sign up to a deal that is too complex.”
“HMRC now receives information from over 100 countries on international investments and financial structures held offshore by UK tax residents.
There will be penalties for not declaring such overseas assets so if you are UK resident and have any offshore assets or income, you need to let your advisor know.”
“With good planning, you can set up your business to allow it to be sold tax efficiently, whether that is the sale of all or part of your business.
Failure to plan in advance, can make for inefficient sales and more costs/tax.”
“With Making Tax Digital for VAT becoming mandatory for all VAT registered businesses from 1 April 2022, it’s important you have the correct MTD-compliant software for your business.
There are many benefits to cloud accounting including allowing your business advisers to give better quality advice based on the most accurate, up-to-date information.”
“As we approach the next tax year end, thoughts turn towards tax efficient investments such as ISA, EIS, VCT and pensions.
If you have income tax you are seeking to legitimately shelter, then these forms of investment can provide valuable tax reliefs, though you should ensure the underlying investment remains robust.”
“We were one of the first firms in Scotland to implement an Employee Ownership Trust for a client and in recent years, we have seen a huge rise in this type of arrangement.
This can often act as a way for an owner to retire, fully or in part, at full market value, whilst preserving the ownership of the business in the hands of the employee group.”
“Interest on loans, used to fund residential property purchases, can only be relieved at the basic rate of income tax, which can represent a significant restriction of tax relief for higher rate tax payers.
You should consider the structure of your total debt to see if any savings overall could be made.”