Corporate clients need specialist advice. Global tax legislation is becoming more complicated and, coupled with that, the Government is making a concerted effort to tackle tax avoidance. This greatly increases the complexity of tax planning advice. So it is important to choose tax advisers wisely.
Larking Gowen has a depth of experience and knowledge. With a team that can advise on a multitude of different areas, we can work with you to devise optimum solutions to achieve your business or personal objectives.
We have a dedicated tax advisory team, with specialists in the corporate and business tax area which also includes all taxation matters for employers. Our team guarantees a professional service for all your compliance and advisory needs.
We offer a free initial meeting with no obligation to discuss any corporate tax planning or compliance matters, even if you are just looking for a second opinion.
Corporation tax requirements
We provide services to enable your business to be fully compliant with all corporation tax requirements: preparing corporation tax returns, submitting returns to HMRC within 12 months of the accounting year end, fulfilling the tagging requirements of the statutory financial statements (with detailed profit and loss account), calculating the amount of the corporation tax liability and advising on the payment dates of liabilities.
As part of the process we would involve you to ensure we can legitimately minimise your corporation tax liability by spotting planning opportunities. We can also assist with the quarterly accounting regime for large companies.
We have a depth of experience in the methods for extracting wealth from your business in the most tax efficient way. This is particularly relevant following recent changes to the taxation of dividends and the introduction of pension freedom.
Do you want to retain, reward and attract staff to your team with minimal tax exposure? We can advise you on setting up tax efficient remuneration and share scheme packages, whilst dealing with all the reporting requirements to HMRC on your behalf.
Capital taxes planning
This is an area of tax which needs proper planning to ensure it doesn’t become a significant burden with the attendant unwarranted impact on personal or family wealth. Effective planning can help minimise the tax liability.
Capital gains tax (CGT)
The CGT rate can be as low as 10% where assets qualify for entrepreneurs’ relief. Otherwise it currently stands at 18% for basic rate taxpayers and 28% for higher rate taxpayers. The current rules mean that CGT rates are lower than equivalent income tax rates. A number of strategies can be considered to help mitigate your CGT bill.
Your business could be rewarded for innovative thinking in more ways than you might imagine!
Research and development claims (R&D)
Small and medium sized companies (SMEs) enjoy a 225% enhanced tax deduction, which means that SMEs can get tax relief of £225 for every £100 spent on R&D – so that’s £125 of free money from the Government!
Sometimes this won’t be beneficial because a company is making losses. In that situation, a repayable 14.5% tax credit for qualifying expenditure can be claimed instead. Meanwhile, large companies can claim a 30% enhanced deduction or a 10% tax credit.
Our specialists can meet with you to discuss whether or not your company has carried out any qualifying R&D projects and determine the level of qualifying expenditure incurred in order to maximise your claim.
If your company derives income from patents you may be able to benefit from a corporation tax rate of 10% on profits derived from those patents. The patent box regime was introduced in April 2013 and is being phased in with the full benefit available from April 2017 for those in the scheme by 30 June 2016 until 30 June 2021. For companies registering for the scheme after 1 July 2016, a new patent box regime is being introduced, which in many circumstances will limit the relief available.
Because of the way the regime works, eligible profits will frequently include items that form only part of a product, so if a machine will work only by having a particular patented mechanism within that machine, it will be possible to include both the income from direct sales of that mechanism and also the income from sales of the entire machine.We can establish whether your company qualifies for the regime and help you to make a claim.
Capital allowances - fixtures in buildings
Businesses can claim tax allowances on qualifying capital expenditure. The availability of allowances on plant and machinery is generally understood, but tax relief is also available for expenditure on fixtures which are installed in a building, such as electrical installations, lighting, plumbing and sanitary ware. With new legislation introduced from April 2012, it is imperative to understand the full value of fixtures in a property whenever you enter into a transaction to buy or sell to ensure you don’t lose out.
We can review your capital expenditure over recent years and establish whether or not any additional tax relief could be claimed. In so doing, we would carry out an exercise to quantify the value of the claim, working with a quantity surveyor where necessary.
Theatre tax credit relief
The firm acts for a number of theatrical organisations and is very involved in establishing claims for this relief for the not-for-profit sector. Claims can be made for qualifying expenditure incurred after 1 September 2014.
Relief is obtained on 80% of the lower of qualifying expenditure and overall available loss on the theatrical production trade, and there are two rates of relief:
- 25% for touring productions (subject to certain criteria to qualify as touring)
- 20% for non-touring productions
Reorganising your business
We can help restructure your business to suit your objectives, looking at the position from commercial and tax perspectives. We will also consider tax implications and other issues that relate to your future exit strategy. Planning is essential for the continuing development of your business and for its smooth running after your retirement.
We can provide tax advice in situations where you decide to hand over the business to a family member, sell to a third party, sell by means of a management buy-out or cease to trade.
Selling your business
We can help advise on the tax implications of selling your business. What is your objective? Have you thought about the different ways of selling your business and how you find the route that best suits your objectives? We can advise on the attendant tax liabilities ad mitigating those wherever possible.
Buying a business
We can also advise you on buying a business. There are a number of things to consider. Are you buying the shares of a company or the assets and trade? There are different tax consequences depending on the agreement you reach. We can help you evaluate the commercial routes and advise on tax mitigation.
HMRC investigations can be lengthy and complicated. Our experience and knowledge can help you correspond with HMRC effectively in order to reach a favourable conclusion. As a firm, we offer a Tax Fee Protection Service which covers the cost of us defending you against an HMRC enquiry, giving you peace of mind. More details of this service can be found here.
Larking Gowen has wide experience in the tax and national insurance aspects of employment. We regularly advise clients of new developments by means of quarterly payroll bulletins and ad hoc technical updates.
For further details on how Larking Gowen can help you with employment solutions click here