Tax planning and advisory service covers income, corporation and capital gains taxes, R&D tax credits, CIS tax rebates and HMRC appeals
We work diligently to ensure our Clients tax affairs comply with the relevant financial reporting and accounting standards, Companies Act and HMRC regulations.
We act as tax agents for individuals who are employed, self-employed and company directors of personal service companies to finalise and submit their annual Self-Assessment (SA) Tax Returns
Our compliance software monitors Companies House and HMRC filing deadlines to ensure our Clients are fully compliant and to prevent unnecessary late filing penalties.
SA tax return was introduced by HMRC as a method of collecting income tax from the self-employed, partnerships and other individuals who derive income from dividends, bank interests, trusts, property, and gains from capital assets, such as shares and property.
Generally, individuals whose only income is from employment are not required to file a SA tax return because their income is taxed at source, after allowing for the tax-free annual allowance, and PAYE paid to HMRC by their employers. However, it is advisable for higher taxpayers claiming child benefit to complete a SA tax return to prevent HMRC backdating assessments for underpaid income tax.
As part of our onboarding process, we assist Clients submitting a SA tax return for the first time to register with HMRC to obtain their Unique Taxpayer Reference (UTR).
We recognise that not everything goes smoothly with tax, and Clients may require our services to appeal against late payment penalties, fines, and surcharges from HMRC. Our non-judgemental and pragmatic approach is crucial in these circumstances.
We assist companies to claim R&D tax credits where they have satisfied HMRC requirements for the design and development of special processes to advance the delivery of their products and services.
What qualifies as R&D?
The government Research and development relief is intended to support companies that work on innovative projects in science and technology but may be claimed by a range of companies that seek to research and develop an advance in their field.
The government recognises that not all research and development results in a successful product. Therefore, R&D tax claims can be made for unsuccessful projects.
In addition to meeting the government definition of what qualifies as R&D, claimants need to demonstrate that the relevant project is seeking an advancement in science or technology; had to overcome scientific or technological uncertainty along with how they overcame the uncertainty. In addition, the work could not easily be worked out by a professional in the field.
Relevant costs that qualify for tax credits include the employment costs of staff engaged directly on the R&D project. Where project staff are provided by an external agency then only 65% of these payments can be claimed. Direct materials and utilities consumed on the project also count as relevant costs.
Cost that cannot be claimed
Expenditure relating to rent and rates, production and distribution of goods and services, capital expenditure, land acquisition, patents and trademarks are not considered as relevant for R&D tax credits.
Small and medium sized enterprises (SME) R&D Relief
The SME R&D relief is available to companies with less than 500 staff, a turnover of under 100 million euros and net assets of less than 86 million euros.
In addition to their business expenditure for the tax year, SME claimants can deduct an extra 130% of their qualifying expenditure from their profit for the year. This results in a deduction of 230% of R&D relevant costs.
Claiming SME R&D Tax Relief
The tax credit is worked out as 12% of qualifying R&D expenditure and is claimed as part of a company's corporation tax return (CT600). If a company is loss making, the tax credit may be used to discharge the liability. Otherwise, the company can obtain a cash payment. A loss-making SME may surrender a loss in return 14.5% of the surrendered loss.
Further, as part of our tax planning and advisory service we assist start-up companies with registering for the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS).