playing golf at dusk Tax Advisor

TAX ADVISER

IT'S ALL ABOUT THE PLANNING; TO PAY LESS TAX

Tax is a complex area when it comes to both personal and company tax, making it very difficult for individuals and businesses to understand and manage their tax liabilities. Our specialist team of tax advisers can offer you an efficient tax return and tax planning service, which ensures you meet your tax compliance requirements. We will also review a wide range of tax saving options for you to reduce your personal and business tax. On most occasions, we can implement changes that create substantial tax savings. Have you ever thought about how much you pay each year in corporation tax, VAT, PAYE, national insurance and individual income tax? Our approach is to look at your overall tax position and advise where tax savings could potentially be achieved and to help you and your company pay less tax. You then have more money to invest in your business or to spend on you and your family. If you would like to discuss how we could possibly reduce your taxes, please TALK TO US Or call us: 0121-233-0456

VAT RETURNS

Value Added Tax (VAT) is a tax levied by the Government on sales of goods and services.

All businesses with an annual turnover of more than the current VAT threshold (currently £82,000) need to file a VAT Return.

If you are VAT registered, you need to submit a VAT return to HMRC every quarter. This period of time is known as your ‘accounting period’.

A VAT return shows the calculation of the amount of VAT due on sales minus the amount of VAT reclaimable on purchases. This results in the amount payable to HMRC. If the amount reclaimable on purchase is more than the amount due on sales, HMRC give you the difference back.

It is important to spend sufficient time on completing your return, so you don’t pay more than you need to.

CORPORATION TAX RETURNS

All active companies must file corporation tax returns as this is a legal requirement

All active companies (and some dormant ones) must file Corporation Tax Returns as this is a legal requirement.

The company tax return is based on the profit and loss shown in your financial accounts, but these need to be adjusted to allow for the different way in which corporation tax reliefs and allowances are treated.

The return must include a tax calculation, showing how the profits in your financial accounts have been adjusted to work out the taxable profits included in the corporation tax return.

Your company tax return ideally needs to make the most of any allowances and choices you can make, and you may then be entitled to minimise your corporation tax liability.

The return normally covers a 12-month accounting period that matches your company’s 12 month financial year and each return must be filed within 12 months of the end of the relevant corporation tax accounting period.

Corporation tax payment is generally due nine months after the end of your corporation tax accounting period – before your corporation tax return is due.

PAYE

PAYE tax (Pay as You Earn) is the system that HM Revenue & Customs (HMRC) use to collect income tax and national insurance contributions (NICs) from employees, including directors of limited companies. PAYE tax and NICs are deducted throughout the tax year, normally as part of the regular weekly and monthly payroll based on employees’ earnings and paid to HMRC. Statutory payments and deductions such as student loan repayments are also handled through PAYE. Tax and national insurance are also dealt with using PAYE.

PAYE operates for any employee with an income above on “lower earnings limit” based on what the employee earns and their personal allowances. Company Directors, high earners and employees with complex tax affairs will also need to complete their own Self Assessment Tax Return at the end of the year to determine how much tax is due to HMRC.

Employers have to submit their PAYE information to HMRC (whenever their staff are paid), this is known as Real Time Information (RTI). RTI has been the greatest change in PAYE for a number of years and the introduction and the automation of the system allows HMRC to closely monitor the operation of the PAYE process.

It is very important that payments to HMRC are paid on time otherwise interest is applied. Penalties for late payment of PAYE are not new and are structured on a sliding scale. The more late payments in a tax year, the higher the percentage penalty applied to the aggregate of late payments.

Regardless of how big or small your business is, whether you take on 1 or 100 employees, you still need to operate a PAYE scheme for these individuals. Running your company’s payroll requirements also means adhering to numerous PAYE regulations which can be complex and time-consuming.

We specialise in providing payroll services which includes dealing with all PAYE administration and providing advice on how you can save money. Our team will handle your employee payslips, the calculations of PAYE, monthly summaries as well as any leavers and starters. We can also analyse staff costs and set up automated payments.

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