Property Insight & News

Business tax planning is a legitimate and the best way of reducing the tax liabilities. The benefits that a good tax payment plan includes greater control over future payments and cash outflows, reduction in tax rates and tax bills, taking advantage of tax credits, using the available tax reliefs and control over payment timings.

The incidence of taxes cannot only be large but also unexpected too, however planning for taxes can enable individuals and businesses to understand the different components of expenses and the exact incidence of taxes.

Different items have different tax treatments as also different tax rates and timings, sometimes embedded sometimes visible. Besides all reliefs, deductions, exemptions, and exclusions that are permissible need to thoroughly be investigated and considered as to which of them can be availed and how. Correct application of the tax rules can result in a reduced or minimal amount of tax liability.

Complication may arise in understanding the tax rules, their application, and their computations. Rules for inheritance tax are different from rules for capital gains. Income tax differ with different types of businesses and incomes, different elements may require following a different methodology for computations.

If a special vehicle such as a Will, Trust, insurance, Income protection, or mortgage protection is considered for use, each of them can have different implications. Besides the ever-changing tax rules and regulations and all of this can make the process of determining the tax liability with accuracy and correctly even more complicated.

The objective of tax planning is to identify opportunities for saving tax for our clients at the same time ensuring tax compliance with the tax rules and regulations. It’s in everyone’s interest to pay tax correctly, to protect themselves and their businesses against any undue or excessive levy of taxes.

At times HMRC may also start investigations against the business either randomly or if it feels the profits or the figures are not correctly reported or may carry out a selective investigation. This investigation takes a lot of time and requires submission of information, explanation, and data to HMRC as per their requirement. This process can become quite lengthy and cumbersome and if not dealt with properly can lead to the imposition of huge penalties and fines.

As with handling of other aspects, Care Accountancy has a team of specialists that manages the tax-related issues with the utmost care and diligence and attaches the highest importance to confidentiality in corporate and personal tax matters. We serve the interest of all our clients equitably whether they are an individual employee, self-employed, a director, an individual, a business or a corporate entity or any other legal person who needs to sort out the tax-related issues.

We can guide businesses about the various conduits available to use, timings, pros and cons, tax computations, implications, how to benefit from claiming the existing rules and available reliefs and allowances.

We can apply our expertise in understanding the business structure, nature of transactions, composition of items subject to tax, understand the amount and extent of reliefs available and computing the extent and amount of tax liability.

As we are experts in understanding the incidence of complex tax rules on the business, so it would pay to get professional help with tax planning and have the tax liability reduced to the minimum. We can also advise on areas where tax benefit is higher or lower which can form the basis of tax planning. In the light of our experience of managing tax-related affairs of businesses and individuals we can advise on:

• Income tax, capital gains tax, and inheritance tax-related issues
• Advise the best path to take if considering retirement from business
• Assist individuals about deduction of tax at source from employment pay.
• Explore opportunities to reduce tax liability by investing, savings & planning.
• Preparation and submission of tax return promptly and on time
• Track due dates so that deadlines are never missed.
• Represent before HMRC in case of any tax inquiries or investigations.

Tax regulations require a good understanding of the application of tax rules and also tax calculations are complicated as such using a professional accountant’s services, is an absolute necessity. While dealing with tax might seem onerous but using the services of a tax specialist can help take full advantage of allowances and save quite a good amount of money.

Care Accountancy can help in business tax planning and determining different tax liabilities correctly and accurately.