Tax returns

The corporate and personal tax functions work hand in hand as our holistic approach ensures that the personal and corporate tax issues are considered as one particularly for owner managed businesses. We offer compliance services to personal and corporate clients including preparation of tax returns and computations as well as advice on liabilities and the timing of payments.

If you are required to complete a Tax Return then we are here to help. We can manage all of your financial matters and complete all the necessary obligations to HMRC. We can help you ensure you pay the right amount of tax, can advise you on legitimate ways to reduce your liability and deal with HMRC enquiries. A tax return is routinely issued to taxpayers:

* Income from self-employment
* Rental income from Property
* Other income which is received where tax has not already been deducted
* Complex tax affairs, for example, higher rate taxpayers or company directors.

In addition we can analyse your self assessment tax return to see if any tax savings can be made and, if we have information over two years, then we can look to see if there are any anomalies that need to be addressed before the latest tax return is submitted.

By giving you a fixed, competitive price and, provided that you can supply the information within a reasonable time scale, we can take the worry away when it comes to self assessment tax returns, allowing you to concentrate on running your business or enjoying additional leisure time.

Tax Investigations

HMRC has been focusing on raising revenues and tax collection is now offering disclosure facilities (such as the Liechtenstein Disclosure Facility and Crown Dependency Disclosure Facilities) to encourage those with undisclosed assets to comply. International pressure is intensifying for exchange of information. HMRC has heightened penalties (particularly where offshore assets are involved) and now "names and shames" deliberate defaulters.

Crown Dependency Disclosure Facilities

In 2013 Jersey, Guernsey and the Isle of Man announced independently that they were in negotiations with the UK Government to enhance the existing tax information exchange arrangements. There are several components to the package that has been negotiated but they all include an information exchange agreement similar to those being negotiated with the US and a disclosure facility to enable UK taxpayers to regularise their tax affairs, if necessary. Alternative reporting arrangements are likely for UK resident but non-domiciled individuals.

Code Of Practice 9/Contractual Disclosure Facilities

HMRC conducts investigations using Code of Practice 9 (COP9) for cases of suspected tax fraud. A COP9 case follows an entirely different procedure to any other type of HMRC enquiry and it is essential that anyone receiving such an approach from HMRC fully understand what is involved, the importance of making a full and complete disclosure, and obtaining the right advice.

Naming and Shaming

Another strand of HMRC’s strategy for fighting tax evasion is the naming and shaming of offenders - in order to discourage taxpayers from deliberately failing to pay the correct amount of tax that they owe. For periods after 1 April 2010, in addition to recovering any tax, interest and penalty, HMRC can also publish the details of people or companies that have deliberately evaded more than £25,000. The first list was published on 21 February 2013.

Exchange of information/offshore assets

All the British Overseas Territories with significant financial centres have signed up to the Government's strategy on global tax transparency. The Cayman Islands, Anguilla, Bermuda, the British Virgin Islands, Montserrat and the Turks and Caicos Islands have all agreed to greater levels of transparency with the UK. Gibraltar has also made the same commitments.

The agreements mean that the UK will be automatically provided with much greater levels of information about bank accounts held by taxpayers in these jurisdictions. This includes names, addresses, dates of birth, account numbers, account balances and details of payments made into those accounts. It also includes information on certain accounts held by entities, such as trusts.

Statutory Residence Test

From 6 April 2013 a new Statutory Residence Test (SRT) applies to determine an individual’s residence status for UK tax purposes. The SRT applies to individuals for income tax, capital gains tax, inheritance tax and corporation tax but not for national insurance and non tax purposes. This legislation supersedes all previous residence legislation, case law and guidance.

The SRT consists of: * Automatic tests for non residence;
* Automatic tests for residence; and
* UK ties and day counting, known as the Sufficient Ties test, for individuals who are not automatically non resident or resident.

To apply the rules you consider each tax year separately and apply the above tests to it in order. Once you meet an automatic test you do not consider any later tests. The Sufficient Ties test makes a distinction between “arrivers” (defined as individuals who were not resident for all of the previous three tax years) and “leavers” (defined as individuals who were resident in one or more of the previous three tax years). This reflects the government’s view that residence has an “adhesive nature”.

Resident or non resident?

The definitions behind each of the tests and UK ties, together with individual circumstances, need to be carefully considered before concluding on whether an individual is resident or non resident for UK tax purposes.

The SRT has abolished the concept of ordinary residence for tax purposes but overseas workday relief has been retained for non-UK domiciled individuals. The calculation of overseas workday relief can be very complex.

Anti-avoidance

In addition to dealing with residence status the SRT provides anti-avoidance rules for people leaving the UK for less than 5 years and those that are present in the UK on a large number of days but not in the UK at midnight. Although the SRT potentially provides greater certainty on residence status it is as important as ever to take appropriate professional advice to ensure a full understanding of the rules.

Employer issues

Residence and tax status are particularly important issues for people leaving the UK to work abroad or coming to work in the UK and for employers of globally mobile employees.

Estate Planning

The legislation that governs passing on your estate to your chosen beneficiaries requires you to plan well in advance. Few of us have made adequate provision for family and friends who survive us. Since none of us knows when we shall die, this means making the necessary provisions now. The earlier you make the arrangements, the greater your chance of taking full advantage of the tax opportunities. It is also very important when planning to transfer your estate that you make adequate provision for yourself and your spouse in your later years. We provide a discreet estate planning services:

* Help with drawing up and reviewing your will
* Making full use of exemptions and lower tax rates on lifetime transfers
* Optimising lifetime transfers between spouses
* Transferring agricultural or business property
* Transferring assets into trust
* Arranging adequate life assurance to cover potential inheritance tax liabilities