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    TAXATION

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    Income Tax is a tax you pay on your income. You don’t have to pay tax on all types of income.

     

    You pay tax on things like:

    • Money you earn from employment.
    • Profits you make if you’re self-employed – including from services you sell through website or apps.
    • Some state benefit.
    • Most pensions, including state pensions, company and personal pensions and retirement annuities.
    • Rental income (unless you’re a live-in landlord and get less than the rent a room limit).
    • Benefits you get from your job.
    • Income from a trust.

     

    You don’t pay tax on things like:

    • Interest on serving under your savings allowance.
    • The first £1,000 of income from self employment- this is your ‘trading allowance’.
    • The first £1,000 of income from property you rent(unless you’re using the rent a room scheme).
    • Income from tax-exempt accounts, like individual saving account (ISA’s) and National Savings Certificates.
    • Dividends from company shares under your dividends allowance.
    • Some state benefit.
    • Premium bond or National Lottery wins.
    • Rent you get from a lodger in your house that’s below the rent a room limit.

     

    We can help complete your personal tax return completing and make best use of your allowances and reliefs.

     

    Most people in the UK get a personal allowance of tax-free income. This is the amount of income you can have before you pay tax. The amount of tax you pay can also be reduced by tax reliefs if you qualify for them.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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    You must pay Corporation Tax on profits from doing business as:

     

    • A limited company.
    • Any foreign company with a UK branch or office
    • A club, co-operative or other unincorporated association, eg a community group  or sports club.

     

    Taxable profits for Corporation Tax include the money your company or association makes from:

    • Doing business (‘trading profits’).
    • Investments.
    • Selling assets for more than they cost (‘chargeable gains’).

    If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.

    If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.

     

    Stopping or restarting business

     

    Check what you have to do if:

    • You’re not doing business and qualify as ‘dormant’.
    • You restart your business.

     

    We can conduct a review of your business and determine the most efficient tax structure for you. Very often such reviews result in considerable tax savings, which show up as real improvements in your bottom line. As with any other areas of taxation, it is essential to be proactive and plan ahead when dealing with corporation tax. In this way you can:

     

    • Minimise your corporation tax liabilities.
    • Make the most of any available reliefs, tax losses and deferment opportunities.
    • Ensure you meet all your CTSA deadlines and file your returns correctly, thereby   avoiding any potential penalties.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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    You can only charge VAT to your customers, if your business is registered for VAT in HMRC.

     

    VAT is charged on things like:

    • Business sales – for example when you sell goods and services.
    • Hiring or loaning goods to someone.
    • Selling business assets.
    • Commission.
    • Items sold to staff – for example canteen meals.
    • Business goods used for personal reasons.
    • ‘Non-sales’ like bartering, part-exchange  and gifts.

    These are known as ‘taxable supplies’. There are different rules for charities.

     

    Responsibilities

    VAT-registered businesses:

    • Must charge VAT on their goods or services.
    • May reclaim any VAT they’ve paid on business-related goods or services.

     

    If you’re a VAT-registered business you must report to HM Revenue and Customs (HMRC) the amount of VAT you’ve charged and the amount of VAT you’ve paid. This is done through your VAT return which is usually due every 3 months.

     

    We help business owners understand the basics of VAT, advice on the most appropriate VAT scheme to select, advice on the appropriate time to register for VAT and not miss out the benefits of VAT registrations. More importantly we look to ensure opportunities are not missed particularly in areas such as land and property.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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    As an Employer, you normally have to operate PAYE as part of your payroll.

     

    PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.

     

    You must collect and keep records of:

    • What you pay your employees and the deduction you make.
    • Reports and payments you make to HM Revenue and Customs (HMRC).
    • Employee leave and sickness absences.
    • Tax code notices.
    • Taxable expenses or benefits.
    • Payroll giving scheme documents, including the agency contract and employee authorisation forms.

     

    Your records must show you’ve reported accurately, and you need to keep them for 3 years from the end of the tax year they relate to. HMRC may check your records to make sure you’re paying the right amount of tax.

     

    If you don’t keep full records, HMRC may estimate what you have to pay and charge you a penalty of up to £3,000.

     

    We provide a specialist moneysoft payroll bureau facility covering all areas of Pay as You Earn (PAYE), national insurance (NI) CIS tax real time information (RTI). If you deal with subcontractors we also have the facility to run your CIS scheme. If you are a business owner we can review your salary package to ensure that you are optimising your tax liabilities.

     

    So why pay excess tax and NI contributions than you need to? Why spend time on payroll administration when you could be selling? We can help you in this area, while ensuring that you comply with your obligations. Just view our PAYE and NI guides to find out more.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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    Are you working under the CIS Scheme?

     

    Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).

     

    The deductions count as advance payments towards the subcontractor’s tax and National Insurance.

     

    Contractors must register for the scheme. Subcontractors don’t have to register, but deductions are taken from their payments at a higher rate if they’re not registered

     

    Work covered by CIS

     

    CIS covers most construction work to:

    • A permanent or temporary building or structure.
    • Civil engineering work like roads and bridges.

     

    For the purpose of CIS, construction work includes:

    • Preparing the site, eg laying foundations and providing access works.
    • Demolition and dismantling.
    • Building work.
    • Alterations, repairs and decorating.
    • Installing systems for heating, lighting, power, water and ventilation.
    • Cleaning the inside of buildings after construction work.

     

    Exceptions

     

    You don’t have to register if you only do certain jobs, including:

    • Architecture and surveying.
    • Scaffolding hire (with no labour).
    • Carpet fitting.
    • Making materials used in construction including plant and machinery.
    • Delivering materials.
    • Work on construction sites that’s clearly not construction, eg running a canteen or site facilities.

     

    If you are working under construction industry scheme (C.I.S) as a sub-contractor, we can help you to file your personal tax return. At the end of the tax year ( usually 5th April ), HM Revenue & Customs will send you a notice to file the tax return or if we are acting an accountant for you, we will send you a reminder to file your personal tax return.

     

    You will have to declare the income from all the resources in the tax returns.

    • The full amounts on your invoices as income.
    • Any deductions contractors have made in the ‘CIS deductions’ field.

     

    We will guide you on the relevant expenses that you can claim to minimise your tax liability. We will work out your tax and National Insurance bill and take off any deductions/expenses made by you.

     

    If you still owe tax after this, you’ll need to pay it by 31 January following the end of the tax year. If you’re due a tax refund, we will help you to get the refund from HM Revenue & Customs.

     

    If you are the main contractor who has to operate the CIS scheme, we can help you setting up the procedures, verify all your sub-contractors and report all the tax deductions you make on labour every month to HM Revenue and Customs. We will also produce a liability summary every month to advise you how much to pay.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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    Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.

     

    It’s the gain you make that’s taxed, not the amount of money you receive.

     

    You need to pay Capital Gains Tax when you sell an assts if your total taxable gains are above your annual capital gains tax allowance.

     

    You pay a different rate of tax on gains from residential property than you do on other assets.

     

    You do not usually pay tax when you sell your residence.

     

    If you’re a higher or additional rate taxpayer you’ll pay:

    • 28% on your gains from residential property.
    • 20% on your gains from other chargeable assets.

     

    If you pay basic rate Income Tax

     

    If you’re a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets.

     

    This can often involve complex calculations. We’ll do the calculations for you or tell you if the asset is exempt.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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    R&D TAX CREDITS

     

    It’s long been the case that many companies don’t even realise that they meet the necessary criteria to claim and as such miss out on the many benefits of the scheme. Whether your business engages in medical or scientific activities, develops innovative software, or even embraces technology for the benefit of your clients, a qualified and experienced specialist advisers will be able to identify the likely success of any claim. In we will be quick to determine the full scope of the qualifying activities for your business and take the lead in preparing a justification document in order to submit for your case to claim. Such a task benefits from an understanding of HMRC guidelines and will save you time and resources in compiling a document that meets the criteria and adheres to any of the latest developments within R&D tax.

     

    If you think your business is eligible for the R&D claim, the next step you’ll be thinking about is “should I Use A Specialist Or My Accountant For My R&D Tax Credits Claim?”. The so called ‘R&D Specialist Companies’ purely focus on the commission they’ll be getting from the R&D refund which your company is entitled to contrary to your accountant who is looking to establish & improve a long term professional relationship with your business. Charterhouse has several years experience in identifying where and when a suitable claim can be made for our clients ‘businesses.

     

    Are you interested in making the maximum amount of R&D tax credits claim without having to pay a larger proportion of it as commission & fee? Please call us to have your business assessed. Please be assured that you’ll be paying the lowest professional fee compared to any R&D focused companies and it’s a challenge!

     

    Patent Box Regime

     

    The Patent Box regime is a generous tax incentive introduced in 2013 to encourage innovation in the UK. The regime broadly offers an additional deduction in calculating taxable profits, with the effect that the relevant intellectual property profits are taxed at a reduced corporation tax rate of 10%. The relief was phased in over a period of four years, and so full relief on all Patent Box profits came into force in 2017.

     

    The Patent Box rules are complex and the complexity increased when new Patent Box rules were introduced from 1 July 2016. The old regime will be grandfathered until 2021 for companies that elected into Patent Box before 1 July 2016 and for qualifying intellectual property (IP) that was in existence before 1 July 2016.

     

    The new rules, that altered the development condition and introduced a “modified nexus approach” to ensure that substantive R&D activity is linked with a patent box deduction, is applicable to any company that elects into the regime after 1 July 2016 and for new patent applications after that date.

     

    Simply click CONTACT and enter your details below then we’ll contact you to arrange a no-obligation Meeting.

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