Tax
Personal Self-Assessment Tax Return
We act for a variety of individuals and unincorporated businesses and can provide tailored advice to suit your needs.
If you are self-employed and are filling in a Self-Assessment tax return as a sole trader, we can help you meet your tax reporting requirements, and identify all deductible expenses and reliefs available to you to ensure you can fully concentrate on growing your business.
If you receive taxable income from abroad or have assets in more than one country, our team can help you navigate complex double taxation agreements to ensure that you minimise the overall taxes paid worldwide. You can usually claim Foreign Tax Credit Relief when you report your overseas income on your tax return, something we can help you achieve.
If you owe Capital Gains Tax (CGT) from selling assets at a profit, there is a tax-free allowance as well as some additional reliefs that may help reduce your CGT bill, all of which we can help with.
If you run a limited company, you’ll need to file a company tax return in addition to a tax return on your personal income.
No matter the reason why you need to fill in a Self-Assessment tax return, we can produce and file your tax return for you and provide you with any advice relating to Self-Assessment tax returns.
Non-Domicile And Declaring International Income
A non UK domiciled individual (or a “non-dom”), for tax purposes, has options on how to fulfil their UK tax obligations on overseas income and gains.
As a non-domiciled individual who is a UK resident, for tax purposes, you have the option to pay tax on your worldwide income and gains as they arise.
Alternatively, you can claim the remittance basis, which means you only pay UK tax on your foreign income or gains that are remitted into or enjoyed in the UK. For example, by transferring offshore income to a UK bank account, UK income and gains will always be assessable as they arise. There are comprehensive rules in place to determine if a remittance to the UK has been made.
The option to choose the arising basis or remittance basis is an annual one, and so it is possible to switch between the type of claims in each tax year depending on which option offers the optimum tax outcome.
You need to make a formal claim for the remittance basis in writing to HMRC, and this is normally made via the self assessment tax return. Whilst the remittance basis can offer tax savings to certain individuals, there are other factors to the claim to consider.
For example, a claim to use the remittance basis will mean that you:
lose you entitlement to UK personal tax allowance and annual exemption,
pay an annual charge of £30,000 if you have been a UK resident for at least 7 of the previous 9 tax years, or
pay an annual charge of £60,000 if you have been a UK resident for 12 of the previous 14 tax years.
If you do remit any non-UK income or gains to the UK these will be taxable, even if the remittance is made in a later tax year.
The remittance basis can apply automatically in certain limited circumstances, such as where a UK resident non-domiciled individual has unremitted income and gains of less than £2,000 in the tax year.
At Boxwell, we can advise Individuals who are not UK residents for tax purposes but intend on moving to the UK or spending significant amounts of time in the UK.
An individual who has been a UK resident but non-domiciled for 15 out of the 20 previous tax years can no longer access the remittance basis, and must use the arising basis. These individuals are referred to as ‘deemed domiciled’ in the UK. Individuals who are approaching the 15 year limit may require detailed advice to ensure they are not adversely affected by becoming deemed domiciled.
In addition to advising on the appropriate basis for non-domiciled, we can also provide guidance on mitigating Inheritance Tax for non-UK domiciles and UK domiciled individuals.
VAT Services
As well as taking care of day-to-day book-keeping and VAT filing duties, we can provide VAT advice which can be vital in certain circumstances.
These circumstances include:
changes to your business; such as selling new products, making acquisitions or restructuring
land and property transactions; such as building, buying, selling, letting, developing, refurbishing or moving premises
providing services that attract VAT-exempt income; such as financial services, insurance, education, health and welfare
providing or receiving goods or services across national borders.
We can carry out a VAT health check for your business, train your staff, and support you through a VAT investigation.
CIS
The construction industry scheme (CIS) is HMRC’s solution to the problem of cash-in-hand payments in the building industry. It requires contractors to deduct a percentage from payments to subcontractors and pay that sum directly to HMRC. They also have to complete regular CIS returns.
Through our CIS service, we can take care of all those duties on behalf of contractors, making sure they stay compliant without getting burdened by admin. We can verify subcontractors and prepare CIS calculations and statements to be filed with HMRC. We take care of the whole process.
Subcontractors have duties around CIS, too. First, they have to register for CIS to ensure the right amount of tax is withheld – 20% rather than 30% for unregistered subcontractors. They need to complete a tax return where any overpaid CIS can be reclaimed. Our team can help with all of that, from setting you up on Xero to managing your tax return.
ATED
ATED is a tax paid each year by companies (or other corporate structures) on high value residential property (dwellings).
In cases where a dwelling is owned by a company, a partnership with a corporate member or other collective investment vehicles, the dwelling is said to be 'enveloped' because the ownership sits within a corporate 'wrapper' or 'envelope'.
Corporate entities that hold UK residential properties, which are each valued over £500k, are affected.
Corporate entities that have a property portfolio which exceeds this threshold, but no single dwelling is valued above the threshold at any relevant time, will not be liable to ATED.
ATED is reported to HM Revenue & Customs (HMRC) via an ATED tax return. An ATED tax return will need to be completed and payment made by the 30th of April each year. ATED periods run from the 1st of April to the 31st of March the following year. An ATED return will need to be submitted within 30 days of acquisition for properties acquired after the 1st of April.
ATED payable will be calculated by reference to the number of days in the year the property falls within ATED. If the property is only owned for part of a year, or if the use of the property changes so that it moves into or out of ATED, the ATED charge is pro-rated.
Properties must be revalued every five years.
There are a number of exemptions from ATED, such as charitable companies using the dwelling for charitable purposes, which means a return will not need to be filed.
There are also reliefs that may eliminate the tax charge but a return will need to be completed and submitted each year to claim the relief. Relief is available in a number of different circumstances, such as when the property is let to a third party on a commercial basis, is being developed for resale, or is open to the public for at least 28 days a year.
Please contact us to find out how the above applies to your circumstances, how you can reduce your tax liabilities, and maximise your tax efficiency.
Tax Investigation Assistance
A tax investigation, or HMRC enquiry, into an individual's or company's tax return can be a very stressful time for those unlucky enough to be targeted by the investigative arm of the HMRC.
Tax officials can open a variety of enquiries into a taxpayer’s affairs, ranging from a general enquiry to an in-depth tax fraud investigation.
We will work with you to obtain the facts and be there to guide you through the process, as well as support you at each meeting with HMRC. We will ensure the very best outcome and, if there are penalties, that you receive full mitigation.
If you are subject to a tax investigation, wish to take advantage of any one of HMRC's campaigns, or even make a voluntary disclosure, we can help you manage the enquiry to ensure the most favourable results.
You can also protect yourself with our Tax Investigations Service Insurance.
Here are five reasons why we feel it is important to take out our HMRC Investigation Service.
Tax investigations can happen to anyone, whether you are an individual or a business.
HMRC is working hard to collect more revenue than ever before. Last year it generated £30.4 billion from compliance activity and it plans to increase this figure significantly over the next 12 months. This means that the chances of being selected for an enquiry are on the rise.
HMRC is becoming more sophisticated in its approach to recovering tax with the details held within its systems. This enables HMRC to be increasingly targeted in its selection of those it chooses for investigation.
Avoiding the stress and anxiety caused by being selected for an enquiry.
Our HMRC Investigation Service ensures that you have an experienced professional on your side when you need them at no additional cost.
Please contact us for further information on how to sign up.
CGT Planning And Reporting
At Boxwell, we are experienced and knowledgeable in all areas of Capital Gains Tax (CGT), covering the disposal of assets for businesses and individuals. The rules can be complex, but our expertise in CGT helps our clients understand:
which assets are chargeable
which reliefs can be claimed
how to report CGT issues accurately and on time
all other possible impacts of CGT
Non-residents are liable to Capital Gains Tax (CGT) on the gain arising after 5th of April 2015 on the disposal of UK residential property.
Non-residents are liable to CGT on the gain arising after 5th of April 2019 on the disposal of UK non-residential property.
Temporary non-residents are those who are not non-residents for five full UK tax years or more. They are liable to Capital Gains Tax under the same rules as UK residents for any disposal of UK property. While they are overseas, they will be taxed as non-residents and then on their return; the Capital Gains Tax will be re-calculated as if they had been UK residents at the time of disposal. With effect from 27th of October 2021, disposals made by non-residents must be reported, and the tax paid within 60 days (previously 30 days) of the completion of the disposal.
Our tax team will work closely with you to ensure you manage the disposal of your private and commercial assets to mitigate tax liabilities. Disposals covered by CGT can include property, business assets, shares and private assets. You will be assigned a dedicated accountant to make complex CGT rules understandable. We provide clear, open communication on all accounting and tax issues, and we are always approachable and accessible.
Inheritance Tax
Inheritance Tax (IHT) is a tax levied on an individual's estate after their death, deducting any liabilities, exemptions and reliefs. With a potential tax rate of 40%, it is worth considering how to reduce your inheritance tax liability and ensure that your wealth passes to your chosen beneficiaries.
There are a number of strategies that can help to reduce an eventual IHT bill, including tax-efficient wills, the use of exemptions for business assets, lifetime gifts, transfer of assets, trusts, and even something as relatively straightforward as assignment of life policies.
We aim to work with you throughout your lifetime to become your trusted advisor, and to develop plans with you to meet your current needs and future ambitions.
We take a holistic approach to IHT planning whilst balancing the following four factors:
Keeping assets within your estate to fund your current lifestyle and future ambitions.
Insuring your life, if appropriate, to provide funds on your death to assist your beneficiaries to pay any tax due.
Spending funds: it is an important factor to remember to enjoy yourself in your lifetime.
Succession planning by providing lifetime gifts to your beneficiaries, and by utilising exemptions and reliefs to reduce your estate over the remainder of your life.
Tronc Scheme Service
The word ‘tronc’ is believed to be from the French words ‘tronc des pauvres’ meaning ‘poor box’. Having developed from the old boxes left in churches to collect money for the poor, a tronc is now a term for a special pay arrangement used to distribute tips, gratuities and service charges. All the while, being a sophisticated way of saving National Insurance Contributions (NICs) in the hotel and hospitality industry.
We can help you with advice on how a tronc system works, how it could benefit your business and employees, and the set up and administration of the tronc.
Legislation states that any amount paid to an employee, which is “the payment of a gratuity” or “in respect of a gratuity” is exempt from NIC’s if:
It is not paid directly or indirectly to the employee by the employer and does not comprise or represent monies previously paid to an employer
It is not allocated directly or indirectly to the employee by the employer
In most cases if your business passes a tip to an employee, then your business is responsible for NICs because neither of the above two conditions are met. This is where a tronc becomes useful.
The tronc is a means of collecting the tips from the customers. The tronc effectively holds the tips from the customer in a common fund. Usually a ‘troncmaster’ will be appointed (this could typically be the Head Waiter) and they will be responsible for collecting the tips (the tronc) and distributing the tips.
This has the benefit of fulfilling the above two conditions and meaning the payment can be made without deduction of NICs.
Income tax is still payable on the income received by the waiting staff and under certain circumstances, the ‘troncmaster’ may also be required to operate a PAYE scheme and deduct income tax before making the payment. The tronc must be registered with HMRC.
As well as the potential exemption from NICs outlined above, a tronc is a fair and transparent way of managing tips, gratuities and service charges.
In addition to those on the balance sheet, there are also more emotive benefits, which have the potential to add to the success of your business. A tronc ensures that hotel and hospitality staff receive the tips they have worked for; making them feel valued. This increases staff retention, promotes high service levels, and enhances reputation.