With corporation tax reliefs and rates changing on an annual basis, it is important to stay ahead and utilise all relevant exemptions, allowances and deductions when calculating your tax returns. Our engagement team will spend time with you to understand your personal circumstances, what other income you have, how your business is structured and when you need to realise what proportion of your investment, to make sure no stone is left unturned when it comes to giving you the best tax advice and saving on your tax returns.
Small businesses benefit from lower rates of Corporation Tax than larger corporations and several additional tax reliefs for small businesses have been created in recent budgets (a trend which looks set to continue). Staying on top of the changing legislation and carefully considering other personal income and pension arrangements, can lead to some significant tax savings, especially if there is scope to spread out earnings over a number of years.
Our goal is to offer a cost effective method of relieving you of valueless VAT returns admin and freeing up your time to generate value within your business. Incorporating the VAT returns process into your accounts production process means that our engagement team is able to provide you with quarterly Management Accounts and timely progress updates against your annual forecast. It also means that the bulk of the work on the statutory accounts is competed within the financial year, meaning that filing can take place quickly and efficiently and as soon as the final quarter’s VAT return is submitted.
We can help you assess whether or not you need to register for VAT, and if so, which scheme would suit you best.
The majority of our clients need to file personal tax returns, typically as a result of being a company director (or indeed by virtue of being self employed or a member of a partnership). Our professionals will integrate the information from your company accounts into your Tax Self Assessment Return. They will also factor in income from other investments, land or property and overseas assets.
We will work hard to make sure that all legitimate allowances and deductions are factored into the calculation of your tax liability. We will also offer comprehensive tax advice, making sure that you strike the right balance between drawing income as a salary or a dividend.
Enterprise Investment Scheme (EIS)
There probably isn’t a small business owner in the country who hasn’t contemplated raising external investment at one point or another. However, banks often require small business loans to be personally secured which typically proves to be less than ideal. An alternative solution to this problem is raising equity through the government’s highly tax efficient Enterprise investment Scheme (EIS).
The fantastic thing about this scheme for investors is that if offers immediate tax relief on the value of the investment (which they can use against that year’s tax liability). Additionally, if the investment fails, they can effectively recoup income tax on most of the value of the loss. This has the effect of offering investors a discount on the initial investment and downside protection if it goes wrong. So investors tend to be less concerned than they would normally be about the commercial merits of the investment given that for every £100 invested only about half of that is actually at stake (for top rate tax payers at least).
There are certain conditions that need to be met, but in our experience most small businesses quality and the approval process is actually relatively straight forward.
US Sales and Use Tax
If your business supplies goods and/or services to US based clients, a liability for collecting and remitting Sales and Use Tax may have been triggered. Unlike VAT, there are no sales thresholds that must be exceeded before becoming obligated to comply with a particular States Sales and Use Tax laws i.e. all States have a zero threshold. Stewart Hindley has over 10 years of Sales and Use Tax consulting experience with a wide portfolio of service offerings for a range of differing industries.
In addition to exposure/refund reviews, our engagement team can assist with your monthly compliance obligations and simultaneously analyse your data to help ensure you are taking full advantage of a range of exemptions and exceptions. We can cater to your Sales and Use Tax needs whether you have been making historic sales into the U.S. or are still at the planning stage of targeting a U.S. customer base.
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