As with individuals, businesses are required to pay tax. Sole traders and partnerships pay tax through personal tax returns whereas limited companies pay corporation tax.

We actively work with clients to minimise their overall tax bill. This includes advising on the timing and acquisition of capital equipment, pension contributions and R&D tax claims which can have a significant impact on the tax paid to HM Revenue and Customs.

In addition to tax planning, our qualified staff scrutinise business expenses to ensure their eligibility and to make sure that they are dealt with tax-efficiently.

We also have significant experience in dealing with more complex VAT matters and problems.

As an example, company cars can be a very tax-efficient way to compensate staff and directors - but only in very limited circumstances. We recently rectified a position where a company car was costing a director in excess of £5,000 a year in personal tax.

When is a Farm Not a Farm?

Many people make the basic assumption that a farm will qualify for Agricultural Property Relief for Inheritance Tax purposes even if it doesn’t qualify for Business Property Relief.  As time passes however, the main core farming business can change. 
You need to take some SERIOUS ADVICE if you answer yes to any of the following questions:-

• Do you have a family member living on the farm, whether or not they work on the farm?
• Do you have some holiday lets on the farm?
• Do you have some long term residential property lets on the farm?
• Do you run a livery business, particularly one that is really not a lot more than letting horses graze?

All these things might significantly increase your family’s Inheritance Tax bill.
Perhaps it’s time to take some professional advice!!!!!!!!!!!!
September 2011

Recent Farm Test Case

There has been a recent tax case about resurfacing a farm drive.  HMRC contended that it was not a repair but a capital improvement.  The Treasury agreed with the taxpayer that, despite the fact that it was a different surface – concrete as opposed to tarmac, it was not a new drive and the cost was allowed for income tax purposes.
Don’t let HMRC get away with it!  Take the right advice to get the tax relief you should.
September 2011

Taking Money From Your Limited Company

How would you like to get money out of your limited company at a cost of only 10%?
There is tax planning that enables you to do this, so contact us for information and advice.

March 2011

PAYE

National Insurance Contributions - Are you paying too much?

It is very easy to pay too much in National Insurance Contributions.  The following information could help you to get this right.

Basic Principles

In brief, unlike income tax where “the more you earn, the more you pay”, there is an annual maximum amount of National Insurance Contributions payable. Where an “earner” only has one employment, the operation of the PAYE system will ensure that no more than the maximum amount is paid. Where there is more than one employment or where there is employment and self employment, the payment of Class 1 contributions on two employments or the payment of both Class 1, Class 2 and Class 4 contributions may mean that excessive amounts are paid.

Excess payments can be repaid after the year end once the actual position becomes clear. Alternatively the “earner” may defer the payment of National Insurance Contributions in certain circumstances and will then have to pay any additional contributions due once the correct position is calculated after the year end.

For more detailed information please contact the office.

August 2011

NIC holiday for new businesses
As announced in the June 2010 Budget, Employers National Insurance Contributions are to be waived for the first 10 employees of new businesses established on or after 22 June 2010, for a period of 3 years. HMRC have issued guidance as to what constitutes a “new” business.
The holiday relief is available for each of the first 10 employees taken on in the first year of the business’ life, or in the first year after the first employee was hired, if earlier. New businesses must contact HMRC, who will issue a PAYE starter pack which includes an application to confirm eligibility to join the scheme and claim the relief.

December 2010