Many small businesses often think that Corporate Finance won’t apply to them and that it only relates to big companies. Contrary to this, Corporate Finance is just a term which covers many areas and can apply to a growing small business or a business which has hit difficultites but still has good product or services portfolio.
At some stage, whether you are a sole trader or managing a large company, you will need corporate finance advice. Our corporate finance accountants have a wealth of knowledge and expertise in this area and we are here to provide the best possible guidance for you and your business. We can help guide you through the entire process, making sure that the choices you make are right for your business. We can even help you to negotiate the best possible terms and that all aspects of the transaction including the other parties involved are closely managed to bring the deal in on time.
Our corporate finance advice team has expertise in:
- Obtaining start-up finance
- Venture and equity finance
- Due diligence and company/business valuations
- Raising money for expansion
- Acquisitions and mergers
- Management Buyout (MBO) and Management Buy-Ins MBIs
- International transactions
HMRC needs no reason to launch an investigation and every year thousands of individuals and companies find themselves under the microscope, most often with nothing to hide.
Are you currently being the subject of a tax investigation by HM Revenue & Customs?
If so, this can be a worrying experience. In this situation, you need the advice and experience of an established firm of accountants. That is where SA & Co accountants can help.
We have years of experience in dealing with all types of HMRC investigations, including enquiries into an individual’s tax affairs, investigations of a company’s returns, VAT investigations, employer-related inquiries into PAYE and P11d compliance. Investigations into tax affairs can be extremely intrusive and for companies they can be damaging in many ways, so we will endeavour to make the whole process as painless and professional manner.
We also specialise in helping people who have committed tax fraud or tax evasion and who need help disclosing this to HMRC in such a way as to minimise their liabilities as far as possible.
Starting your own business can be both exciting and rewarding, but it is also full of challenges. The level of commitment that you will need should not be underestimated. SA & Co accountants are experienced in dealing with start up businesses across a wide range of sectors.
Nowadays, the majority of UK companies are formed electronically. We also provide advisory services too. We can have a company formed and ready for business instantly with all the required paper forms in your possession within days. Whatever your requirements, we can tailor our services to your requirements.
In addition to company formation we are able to assist with:
- Advising on capitalisation of the company.
- Advising on administration of the company.
- Setting up of a PAYE scheme for the company.
Registering of the company with HMRC for Corporation Tax and VAT purposes.
Most people starting up in business do so because they have a good business proposition and the enterprise and commitment to see it through. However, they may not be experts in the legal and financial aspects of running a business and such matters often appear daunting. With an estimated one third of all new businesses failing in the first year of trading, research suggests that those that plan and seek professional advice from the outset have a significantly greater chance of being successful.
This is where our staff at SA & Co accountants can help you to evaluate these propositions in a constructive and realistic manner. We can help you to formulate the financial side of your business as well as advise you on the most tax efficient structure.
We can then help you to prepare forecasts, business plans and help you put everything together that you will need to gain funding from the relevant source. We can also help you to plan your business and set out forecasted targets and goals.
Once you have your funding approved, then we can also help you with some of the other following tasks too:
- Establish your company by completing registration procedures with HMRC and Companies House. We can also help you register and set up Payroll and VAT.
- Deal with all Company Secretarial issues and even act as your registered address.
- Help you establish good relationships with banks, solicitors, etc using our network of contacts.
Construction Industry Scheme (CIS)
CIS was created by HM Revenue & Customs (HMRC) in order to facilitate the collection of tax from construction industry workers.
If you are a contractor you will need to deduct CIS tax from your subcontractors and submit CIS Returns to HMRC. If you are a subcontractor you will need to complete a tax return and claim your CIS refund (if applicable).
Unfortunately the penalties for late submissions are high. If it is one day late, the penalty is £100 and if it is more than 2 months late a further £200 is payable with further penalties the longer it remains un-submitted. This is why it is very important that you put in place arrangements either yourself or for a professional to complete your CIS Returns on your behalf.
At SA & Co accountants, we offer our accounting service to both contractors and sub-contractors.
Should you require us to to complete your monthly CIS Returns, then we can carry out the following for you:
- Adding and verifying your new sub-contractors.
- Processing of the payment and deduction statements.
- Submission of the monthly CIS Returns.
- Automated email reminders to inform you when your CIS Returns are due.
Representation in the event of a CIS enquiry from HMRC.
Inheritance TAX (IHT)
This is a tax paid by your estate, based on the value of all your assets, e.g. money, property, insurance proceeds, personal possessions, at the time of death. In addition it can be charged on certain lifetime gifts you might make depending on when they were made.
The Government will assess how much your estate is worth and will then deduct your debts from this to give the value of your estate. Your assets include:
- Cash in the bank.
- Any property or business you own.
- Payouts from life insurance policies.
Traditionally, Inheritance Tax has been regarded as a tax on the wealthy however, with many people’s family homes value on the increase in excess of this threshold, it is important for the majority of people to consider inheritance tax planning.
The current allowance where no inheritance tax is charged is on the first £325,000 (per person) of someone’s estate – which is the value of their total assets they leave behind when they die. Couples can leave a home worth £650,000 without it attracting inheritance tax (singles £325,000).
Having a will and undertaking inheritance tax planning ensures you have control over who benefits from and how much tax is paid by your estate. It will also ensure you are not left with administrative difficulties and maybe having to sell off family assets to pay unexpected tax bills.
At SA & Co accountants, our range of inheritance tax planning services includes:
- Advice in implementing lifetime planning.
- Advice on tax effective will provision.
- Advice on the use of trusts in inheritance tax planning, and the interaction with capital gains tax (CGT).
- Advice on using insurance based inheritance tax solutions.
- Domicile tax planning.
- Preparing a detailed IHT planning report to assess your situation and put into place planning strategies
Capital Gain TAX (CGT)
Capital gains tax is often referred to as a voluntary tax. Depending upon your circumstances, we will provide taxation advice to help reduce or delay the payment date for the capitals gains tax such as a share of a business or a company, stocks and shares or a property. We are able to advice on this complex issue to ensure that maximum relief is obtained where available.
The rates of CGT are generally 10% and 20%. However 18% and 28% rates apply for carried interest and for chargeable gains on residential property that does not qualify for private residence relief.
Below are ways to reduce the amount of capital gains tax assessable:
- Claiming all valid tax deductions.
- Professional fees.
- Enhancement expenditure.
- ‘Banked’ indexation allowance.
Property and Capital Advance Tax Planning
Many individuals have started to purchase buy-to-let properties within a company and are seeking property tax advice. The move away from personal ownership was due to the mortgage interest restruction being phased away from 17/18 tax year and will be in full effect for 20/21.
There are many pros and cons of holding properties individually and in companies. Our staff at SA & Co accountants can assist you with making an informed decision either by undertaking a property portfolio review or offer property tax advice before you make a property purchase.
It is always recommended to seek professional advice before purchasing a buy-to-let. With the 3% stamp duty surcharge, it can be expensive and restrictive to change the ownership afterwards. Whilst should you be considering selling a property, you may wish to consider the timing of this to make use of your annual exemptions and tax bandings.
Ways to reduce property taxation can include:
- Transferring between husband and wife.
- Forming a Partnership or Limited Liability Partnership (LLP)
- Using a Limited Company
Advance Tax Planning
A lot of Accountants simply do not understand in detail the modern taxation system so will discuss tax with you but will not discuss about the best tax solutions for your company.
By working with the tax team at SA & Co accountants, you can legally and ethically reduce your tax liability.
Tax planning needs forward, strategic thinking to achieve the best results. This means that we will work with you to produce a bespoke solution to help move towards your goals.
Whatever stage you are all, talk to us now about your advanced tax planning options.
Top points to consider when tax planning:
- Individuals– have you maximised your ISA investments and pension contributions this year?
- Self-employed– if you are about to invest in new equipment or vehicles, doing so before 31 March 2019 should be of significant benefit.
- Directors– If a director leaves an employment where National Insurance has been calculated in the usual fashion, a NI rebate may well be due.
- VAT– if you sell mainly to businesses, it may be advantageous to register for VAT even your turnover is lower than the registration threshold (£70,000).
- Employees– company cars can really hammer your tax allowances and leave you with a lot less money in your pocket. The Fixed Profit Car Scheme lets your employer pay you to run your own car. The rate per mile is 45p for the first 10,000 miles and 25p per mile thereafter.
Value Added Tax (VAT)
If your turnover is more than the current VAT threshold then you may have to register for VAT. If this is the case then you will have to complete and submit a VAT return to HMRC, usually each quarter. VAT is an increasingly complex tax which impacts on all aspects of business life. As a transaction based tax, businesses need to factor in the impact VAT will have on prospective business plans to ensure that there are no unexpected surprises. In addition to VAT, many businesses also have to address Customs Duty, Excise Duties and the various environmental indirect taxes on a daily basis.
With many years experience of dealing with VAT matters, we can provide VAT registration for you as well as completing and filing of VAT returns to ensure that UK businesses comply with their obligations. We are also able to provide effective advice on VAT relating to business transactions.
Advice and support is provided on all aspects of VAT including:
- VAT registration.
- VAT accounting.
- VAT planning and consultancy
- VAT appeals, enquiries and disputes.
- Partial exemption.
Administering your payroll can be extremely time-consuming which often diverts your resources away from the core activities of your business. With the growing complexity of taxation and employment legislation and the accompanying regime of penalties for non-compliance, why not allow our dedicated staff at SA & Co accountants to oversee this for you by providing a comprehensive and confidential payroll service. Even if you have only a few members of staff on your payroll, then you will make savings by utilising our staff to administer your payroll.
Our Payroll Service includes:
- Administration of PAYE, national insurance, statutory sick pay, statutory maternity pay, etc.
- Completion of statutory forms, including year end returns*, to issue to your employees and submit to the Inland Revenue.
- Summaries and analyses of staff costs.
- Administration of incentive schemes, bonuses, and ex-gratia and termination payments.
- Administration of pension schemes.
- Pre-agreed processing timetables.
- Customised electronic or paper reports, e-payslips and e-p60s.
Making Tax Digital (MTD)
Making Tax Digital (MTD) is the government’s plan to transform the tax system and move it online. MTD will affect most businesses from April 2019 with further changes expected in 2020.
From 1st April 2019, all businesses who are VAT registered businesses will soon be required to use a digital, cloud-based accounting solution and automatically submit their VAT returns to HMRC through a ‘MTD compatible software’. The government began inviting VAT registered businesses to join the scheme for VAT (through a ‘public beta’) on 16th October 2018.
By helping you save time on accounting, cloud based accounting software frees you up to focus on growing your business. With all your financial information in one place, you can gain a better understanding of your business with an instant overview of your financial position.