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Business & Corporate Tax

We relieve you of the administrative burden of complying with tax legislation and help you minimise your corporation tax payments.

We deal with all business tax compliance matters, including preparing income and / or corporation tax computations and preparing and submitting the relevant self-assessment returns.

We also provide a broad range of business and corporate tax advisory services.

Our tax advisory services include the following topical areas:

Tax Investigation Service

HMRC investigations of any kind are costly in time and even more costly in the emotions they engender. The distraction they cause is likely to prevent you from effectively running your business. So is it possible to avoid them?

The honest answer is that no one has immunity from investigation. There is always a small random element in the choice of cases for enquiry but there are a number of basic things that you can do to help improve your position.

In recent years, HMRC’s powers have been strengthened significantly making it far easier for them to carry out enquiries and to gain access to your data from third parties such as banks and buildings societies, both in the UK and abroad. In addition, a new penalty regime has been introduced to raise the level of penalties charged where tax has been lost due to negligence or deliberate action on the part of the taxpayer.

We offer a Tax Investigation Service for you and your business at a fixed annual cost. When you subscribe to this service we can make a claim against our insurance policy in respect of our fees incurred when we enter into correspondence with H M Revenue & Customs on an enquiry. The cover is extensive and includes both aspect and full books and records enquiries along with VAT and PAYE disputes. It also extends to a company’s directors’ personal tax returns where we prepare those returns.

The costs of dealing with an enquiry can be massively disproportionate to the amount of tax at stake. Without the Tax Investigation Service in place then even if there is found to be no additional tax due, you would either have to deal with the enquiry yourself or suffer the cost of the professional fees. Typically we find each year that at least one client saves in excess of £5,000 as a result of having subscribed to the Tax Investigation Service.

For further information please contact our tax department on 01625 669669 or click on this link to download our presentation.

 IR35

 For a number of years, legislation commonly known as IR35 has existed to target disguised employment through personal service companies.  Where the rules apply, the effect is to ignore the personal service company and to tax the director/shareholder as if he or she were employed by the company or companies to whom the personal service company provides services.  Applying IR35 almost always results in additional tax being payable.

 Changes were announced in the Budget which broaden the application of the rules from 6 April 2014 to catch cases where an individual is operating through an intermediary other than a personal service company (such as an agency) and is subject to (or is subject to the right of) supervision, direction or control by the company to whom the intermediary provides services.

Given these changes and the fact that HMRC perceives false self-employment to be an area of widespread abuse, IR35 is expected to be an area of increased HMRC focus going forward.  Now is therefore an opportune time for companies potentially caught by IR35 or by the new wider rules to review their contracts, a service which Harts are experienced to provide.  Our focus will be to assist you to mitigate the risk of a successful challenge by HMRC.

Residential Property Owned By Companies

 The government views the acquisition of residential property by a company to be abusive in many circumstances, and for this reason it has increased the rate of Stamp Duty Land Tax payable on such purchases to 15% where the purchase price exceeds £500,000.

In addition there will be an annual charge levied on companies owning residential properties worth more than £1m from April 2015 and worth more than £500,000 from April 2016.  The charge is aimed at individuals owning the home they live in through a company and so there is an exemption from the charge for properties let out on a commercial basis.  However the test for this exemption is high and at the very least continuing to own residential property worth over £500,000 through a company will mean a new filing requirement in the future.

Capital Allowances

The government wants to encourage businesses to invest and in this spirit it was announced that the Annual Investment Allowance (AIA) would be increased from £250,000 to £500,000 between April 2014 and 31 December 2015.

The AIA allows a business to write off most capital expenditure (except land, buildings & cars) up to the limit against taxable profits for the year of purchase.  If your business is planning to make significant investment in the near future, then now is the opportune time to do so.  Capital spending outside the AIA (except on land and buildings) generally qualifies for capital allowances at either 18% or 8% each year, and the AIA is expected to reduce to £25,000 in 2016.  It is therefore likely to be beneficial from a tax perspective to bring forward investment planned for early 2016 into 2015 to make use of the increase in the AIA.

The calculations to assess what actual allowances are available can be complex, therefore we strongly recommend you discuss with us before committing to significant capital purchases.

Commercial Property Tax Relief

If you own a commercial property and did not claim any capital allowances when you purchased the property, or on any improvement expenditure, you could be entitled to put in a claim now and obtain tax relief or even a tax refund. Capital allowances are a valuable form of tax relief available to anyone owning or improving investment property. The allowances apply to large or small, offices or shops, warehouses or factories. If you own the property through a Limited Company then you will save on your corporation tax bills next year and it is possible that we can also achieve a generous tax rebate for you. If you own your property privately, we can probably achieve a rebate and a large reduction in your personal tax in the coming years.

If the answer to all three of the questions below is ‘yes’ then it is likely that you can make a claim.

·         Is the property classified as commercial?

·         Was the purchase price in excess of £150,000?

·         Is the owner a UK tax payer?

If the answer is ‘yes’ then it is likely you can claim.

What next?

To arrange a free initial consultation, please contact us on 01625 669669 or email info@harts-ltd.com.

Click here to view the Harts taxation team Contact us for more information about our tax services