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Tax Returns

Are YOU looking for a cost effective and seamless tax return service?

Do YOU want a tax EXPERT looking after your tax affairs?

Would YOU like comfort and clarity that your compliance obligations are met, and you will not receive any unexpected penalties.

All our clients’ tax returns are considered in detail by a Chartered Tax Adviser, yet our team is structured to prepare your tax return in an efficient and cost-effective manner.

For a LIMITED TIME we are offering 20% OFF* your first self assessment tax return. To claim YOUR discount, provide your details in the link below, and let us put you on the road to peace of mind.

*Offer open to new clients who sign up by 31 May 2020.

Do I Need To File a Tax Return?

Submitting a tax return may be necessary for a particular tax year (running from 6 April to 5 April) if you:

  • Disposed of assets resulting in a capital gain;
  • Were self-employed or in a partnership;
  • Received untaxed income (such as rental income or dividends);
  • Have income of more than £100,000;
  • Earn more than £50,000 and you or your partner claim child benefit;
  • Claim expenses or reliefs (such as employment expenses or relief for pension contributions);
  • Want to utilise tax efficient investments such as Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS), or Venture Capital Trusts (VCT);
  • Have foreign income;
  • Receive income from a trust or estate;
  • Live or work abroad or
  • Are non-domiciled in the UK;

This list is not exhaustive and some exceptions do apply.

Are you a company director?

Then you may have been informed that you are required to submit a tax return, even if you have no tax liability to report.  However, this is not the case, as our blog post on  the updated HMRC guidance  on tax returns for directors can explain in more detail. Having the position of director is not, on it’s own, reason to submit a tax return.

 

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What is the Health Check?

As a business owner, you will invest a significant amount of time and money into ensuring the continued success of the business, which undoubtedly can leave little time for understanding the business’s tax position. UK tax laws are an everchanging maze, and it can be difficult to keep abreast of the changes affecting your business.

At PD Tax, we are committed to fully understanding your business, its tax needs to help you to ensure that you are fully tax compliant, and to assist you in identifying areas of risk which may have adverse effects on you/your business and tax planning going forward.

The Health Check will allow you and your business to put appropriate planning in place to tackle such risks, and provide peace of mind that the business is compliant, and operating tax efficiently. We aim to ensure that you are making full use of relevant reliefs and allowances, considering the historic tax position, and the future objectives of the business.

Choose from 3 service offerings as a part of the Health Check:

Bronze Review – from £1,500

Silver Review – from £2,500

Gold Review – from £5,000

Further details on what is included under each review may be found below.

To get started, please click the button below to complete our short questionnaire, and put yourself on the road to peace of mind. We will contact you within 2 working days to discuss your business/company in more detail, and will follow up with an in-depth synopsis of each review, and tailored fees for your business.

Areas Covered

  1. Review of remuneration package
  2. Business Expenses and Tax Free Benefits
  3. CIS (if applicable)
  4. Follow up meeting
  5. Call 6 months later

Areas Covered

  1. VAT compliance
    • claiming VAT on expenses
    • VAT records and returns
    • flat rate scheme/cash accounting scheme
    • capital goods scheme
  2. Review of remuneration package
  3. Business Expenses and Tax Free Benefits
  4. CIS (if applicable)
  5. Review of Capital Allowances
  6. PAYE Compliance Review
  7. Follow up meeting
  8. Meeting 6 months later

Areas Covered

  1. VAT compliance
    • claiming VAT on expenses
    • VAT records and returns
    • flat rate scheme/cash accounting scheme
    • capital goods scheme
  2. Review of remuneration package
  3. Business Expenses and Tax Free Benefits
  4. CIS (if applicable)
  5. Review of Capital Allowances
  6. PAYE Compliance Review
  7. Employee share schemes (EMI/CSOP)
  8. R&D Tax Credits (if applicable)
  9. Miscellaneous Items (eligibility for ER, BPR, review of SH agreements, business activities)
  10. Follow up meeting
  11. 2 further meetings at 6 and 12 months

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Entrepreneurs' Relief

Entrepreneurs’ Relief (often abbreviated to “ER”) is a valuable capital gains tax relief which may be available when you sell all or part of your business.

Provided that the relevant conditions are met, capital gains tax will be charged at a rate of 10% on the entirety of the gain.

As this is such a precious relief for entrepreneurs, PD Tax recommend that regular reviews are undertaken to ensure that you and your business meet the necessary requirements. We can advise you on whether you qualify for the relief, and if not, recommend steps you can take to ensure that you are eligible on a future sale.

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Investors' Relief

Investors’ Relief is available to investors on the sale of shares in unquoted trading companies purchased on/after 7 March 2016.

Provided that the relevant conditions are met, investors who realise capital gains on the sale of their shares will be liable to capital gains tax at a reduced rate of 10%, subject to a lifetime limit of £10 million per person.

This is therefore a valuable relief for investors and care should be taken to ensure that the you, the business, and the shares all meet the necessary requirements.

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Roll-Over Relief

When you sell a business asset and reinvest the proceeds in acquiring another business asset, Roll-Over Relief may be available to defer the payment of capital gains tax.

In order to be eligible for the relief, the asset must be used for the purposes of the business and qualifying assets include land and buildings, goodwill, and fixed plant and machinery.

If the proceeds are not fully reinvested in a new asset, then Roll-Over Relief will be restricted.

The rules differ for for non-depreciating assets (e.g. land/property) and depreciating assets (e.g. leases of 60 years or less, plant and machinery), therefore expert advice should be taken to ensure that the correct tax treatment is applied.

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Gift Hold-Over Relief

A gift is a disposal for capital gains tax purposes. Therefore, you may have tax to pay on the gift of an asset even if you did not receive any money for it.

In light of this, Gift Hold-Over Relief is available in certain situations to roll over the gain against the base cost of the gift, effectively transferring the gain to the person who received the gift.

It is important to note that not all gifts qualify for Gift Hold-Over Relief; only qualifying business assets and gifts into trust will be eligible for the relief.

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Incorporation Relief

On the incorporation of a sole trade or partnership to a company, the transfer of assets (e.g. land/property, goodwill) may give rise to a chargeable gain on which capital gains tax may be charged.

Where all the assets of the business are transferred to the company in exchange for shares, then Incorporation Relief may be available to reduce the capital gain to £nil.

The effect of the relief is to “roll-over” the gain on incorporation into the base cost of the shares, effectively deferring the gain until the shares are sold at a later date.

In some circumstances it may be beneficial for the taxpayer to sell the assets to the company in part for a loan and in part for shares, however this will in turn restrict Incorporation Relief available.

With this in mind, expert advice should be taken prior to incorporation to ensure that is structured in the most tax efficient manner.

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Principal Private Residence Relief

Principle Private Residence (“PPR”) relief is one of the more widely known tax reliefs, providing relief from capital gains tax on the sale of your home.

The level of PPR relief available is calculated by reference to the “period of ownership” and the “period of occupation” on a pro rata basis. With this in mind, where an individual has lived in their home as their main residence throughout their period of ownership, a liability to capital gains tax should not arise.

Complications arise where there are periods where the property was not occupied by the owner (e.g. because you left to work abroad or move in with a partner), or where you are residing in more than one property.

Therefore, where there is any doubt over whether PPR relief will be available in full, expert advice should be taken.

Lettings Relief

Where PPR relief is available on the sale of your home and you have let out the property to tenants, then additional relief may be available under Lettings Relief.

Up to 5 April 2020, Lettings Relief is available (up to a maximum of £40,000) where a property has been let as residential accommodation during a period of absence.

From 6 April 2020 onwards, Lettings Relief will be restricted to situations where the landlord is living in the same property as the tenant in shared occupation.

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Tax Director Service

Tax is complicated with opportunities and pitfalls to consider for your clients.

Our Tax Director Service gives you direct access to people who can help you to help your customers get the best possible results.

Call us to discuss your needs and we can work out a tailored tax director service for your firm so that you can:

•Bounce an idea
•Discuss a thorny matter
•Examine different options
•Go through technicalities
•Get peace of mind to pass on to your clients

EIS & SEIS

If you are a director of a company seeking to raise finance, or if you are interested in investing in shares, you should consider the valuable tax relief available under the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).

EIS and SEIS were introduced to encourage individuals to invest in smaller, high-risk companies. They offer generous income tax and capital gains tax benefits, namely:

Income Tax

  • EIS Shares – a reduction of income tax of up to 30% of the lower of the amount subscribed or £1mllion (i.e. maximum relief of £300,000.
  • SEIS Shares – a reduction of income tax of up to 50% of the lower of the amount subscribed and £100,000 (i.e. maximum relief of £50,000).

Capital Gains Tax

  • No capital gains tax on the sale of EIS & SEIS shares, provided that the investor owned the shares for at least 3 years prior to sale and income tax relief was claimed.
  • EIS reinvestment relief, which allows an individual to defer the capital gains on sales of other assets if they reinvest the proceeds in qualifying EIS shares.
  • SEIS reinvestment relief, which allows an individual to exempt a portion the capital gains on sales of other assets if they reinvest the proceeds in qualifying SEIS shares.

EIS & SEIS: What’s the difference?

EIS and SEIS are both aimed towards unquoted companies looking to seek investment to further their trade.

The conditions for qualifying for EIS and SEIS are broadly similar, however as SEIS focuses on high-risk early-stage companies, the rules are more restrictive.  A brief summary of some of the conditions that must be met include:

EIS SEIS
Must not be carrying on certain prohibited or excluded trades (e.g. legal and accountancy, farming, property development). Same as EIS
Must be an unquoted company Same as EIS
Must not be controlled by another company Same as EIS
The assets of the company must not exceed £15 million before the share issue, and £16 million after the issue The assets of the company must not exceed £200,000 before the share issue
Must have fewer than 250 full-time employees (or 500 for knowledge intensive companies) Must have fewer than 25 full-time employees
The funds raised from the share issue must be spent on a qualifying business activity within 2 years of issue/commencement. Same as EIS, except the deadline for spending the funds raised is extended to 3 years.

 

Share issue must take place within 7 years of the first commercial sale made by the company (10 for knowledge intensive companies) The business activity carried on by the company must not be more than 2 years old.
Shares must be ordinary shares which do not carry preferential rights Same as EIS

How can we help?

There are strict conditions that apply to the company, the shares, and the investor(s) that must be met in order for EIS/SEIS to apply. We have assisted our clients by performing a detailed review of the rules and advising on whether they could qualify under EIS/SEIS.

Businesses looking to utilise EIS/SEIS for their company must send certain forms and information to HMRC to allow HMRC to certify that the company shares qualify for tax relief. We can help prepare the appropriate documents to put forward the best case for why a company will be eligible.

HMRC also offers advance assurance so that directors and investors can be certain that the company’s shares will qualify for EIS/SEIS before they are issued. We can also prepare these advance assurance claims to provide further comfort for clients.

EIS and SEIS investments carry financial risk and should only be undertaken after speaking with a qualified financial advisor.

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