You probably think you’re getting the right tax advice but are you really?Tax legislation is becoming ever more complex. To achieve sustainable growth, genuine expertise is required to ensure:
- Robust tax structures are in place to protect and progress the business
- Full advantage is taken of all reliefs available
- Business and personal tax planning is cohesive
R & D tax relief
R & D tax relief is often misunderstood and consequently an estimated 97% of eligible companies don’t make a claim.
This is a highly specialised area where very significant savings can be made which is why so many agencies have emerged dealing solely with R & D tax credit claims. However, R & D tax claims should not be dealt with in isolation and must be considered as part of the company’s overall tax strategy which is why it is best to deal with an advisor with a broad understanding of tax.
So what counts as R & D?
Essentially, resolving uncertainty with existing products, new products, services and processes, even if unsuccessful, can be qualifying activity.
Have you done any of the following in the last two years?
- Solved problems or overcome issues for customers rather than simply taking an order or brief
- Trialled new materials or code
- Explored new processes
- Looked for faster, more efficient or more effective solutions
- Created a new product or made improvements to an existing one
If so, you may be able to claim for R & D tax credits. Even if you have already made a claim, higher limits can be applied for so it is worth getting the right advice.
Business succession planning
Whatever your plans are for exiting your business, one of the key considerations will be how much tax you will have to pay. As well as helping you create the most value in your company and advising on the right route to disposal, our tax team can ensure that the correct tax structures are in place to minimise your personal and corporate liabilities.
It is important to start planning years ahead of when you hope to dispose of your business. It is equally as important to get the right advice as oversights can have costly financial implications and impact on your life plans. This is not an area where you want to take chances.
Whilst there is no way of avoiding taxes, an expert review of a business’ tax position can often expose inefficiencies.
In carrying out a tax health check on your business, our tax team will consider whether changes in areas such as expenditure, capital allowances, trading losses, extraction of profits, dividends, loans or capital gains, could mitigate tax liabilities.
Tax legislation is constantly changing so it is recommended that businesses carry out a review annually to identify areas where tax planning can produce savings. However changes can impact on other areas of the business, including exit planning, so a holistic approach from a dedicated tax specialist is required.
Employment taxes are often overlooked in terms of review and many companies are surprised when PAYE inspections identify failings. Again, this is a complex area but one where getting it wrong can have serious financial or legal consequences – specialist advice is essential. With a former HMRC PAYE auditor in the team, we can ensure that your systems are robust enough to survive a PAYE enquiry.
But it’s not all about compliance. There are plenty of tax planning opportunities available which can save the company money and reward staff. For example, have you considered tax efficient remuneration packages for you and your workforce?
Most business owners will be aware that tax relief is available on certain capital expenditure in the form of capital allowances. This is a complex area where forethought is required to maximise potentially lucrative reliefs. Those who do not get the right advice could find themselves losing out.
The Annual Investment Allowance available can depend upon the point in the accounting period that the expenditure was incurred. Businesses can be caught out by transitional rules so it’s advisable to get advice before making any significant purchases.
There is an allowance for certain expenditure on building fixtures known as integral features. Again, some businesses miss out on this relief because their advisors are unaware of the scope of what is included. Similarly, the 100% allowance available to all businesses for expenditure on the purchase of new environmentally friendly equipment, such as energy saving boilers, can also be overlooked.