Tax Planning

We believe that tax planning is personal and take time to understand the on-going objectives of our clients. Guided by our expertise, we’ll help you put in place robust solutions to minimise tax obligations.

Our Advance Clearance Procedure from HMRC, enables us to offer a comprehensive service, with complete peace of mind.

Corporate Structure

Did you know that the average sole trader can save in the region of £4,000 by incorporating their business? We do and we advise clients every day on the best structure for their business.

One of the most frequently asked questions we receive is how to determine the appropriate Corporate structure for a business. There are numerous different structures available for a business, including working as an individual sole trader, in partnership, as an unincorporated association (in the case of non-profit groups), or establishing an organisation to run your business as a Limited company.

While the numerous options available within these corporate structures often make it even harder to decide the best path for your business, Tearle & Carver can provide expert advice on your corporate structure in areas including:

  • How to achieve optimal tax savings for your particular business
  • The benefits of introducing holding companies or de-mergers, where appropriate
  • Proactive advice on changes to your structure- what you choose today may not be the best option tomorrow
Capital Gains Tax

We regularly review our clients assets to protect them against avoidable capital gains tax liabilities

Capital Gains Tax is a tax on the profit made in the sale, transfer, compensation for, or exchange of any asset that has increased in value. This means that it’s the gain you make that is taxed, not the total amount. It is a tax planning area a person or business must not underestimate. Our services can ensure you do not pay too much tax in this area by taking advantage of the following possible reliefs:

  • Entrepreneur’s relief
  • Gift Hold over relief
  • Business asset roll over relief
VAT Health Check

Your business could be eligible for the Flat Rate VAT scheme, simplifying returns and could significantly reduce your VAT liability by as much as £5,000 pa

Over the years, Tearle & Carver have developed vast experience in providing innovative, practical, and effective solutions to VAT issues and opportunities. By assessing your current VAT procedures and system, our VAT health check offers benefits which include:

  • Identifying missed opportunities in order to claim back overpaid VAT
  • Ensuring you are charging the correct VAT on your sales
  • Improve your cash-flow by checking that you use the optimal VAT scheme for your business
  • Ensure that you are fully compliant with HMRC’s complex rules and regulations
  • Pinpoint any areas of concern or weaknesses
Inheritance Tax (IHT) & Trusts

We recognise that’s is very easy to reach the threshold for IHT and regularly put tax planning in place for our clients

Trusts need not be complicated and expensive to run. They are a very effective way of protecting family wealth and offer a number of tax advantages.

If you want to give away assets to a family member, you can ensure the capital is protected whilst still enjoying the income and assets for life. With our wealth planning service you can take advantage of many flexibilities and maximise after tax income.

The areas we cover include:

  • Annual inheritance Tax review and planning
  • Review your existing trusts
  • Advise on the setting up of new trusts
  • Advise on the obligations of Trustees and Beneficiaries
  • Trust accounts and record keeping
  • Day to day administration
  • The 10 year charge
  • Tax implications of the distributions of Income and Capital
EIS Schemes

EIS schemes are particularly valuable to smaller businesses seeking external funding. We have the know-how to put these schemes in place

It is more difficult than ever for businesses to raise finance via traditional means such as bank borrowing.

Designed to help small, early-stage companies to raise finance, Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) offer tax relief to individual investors who purchase new shares in qualifying companies. These EIS and SEIS associated tax reliefs can therefore make start-ups and high risk companies a much more attractive proposition for investors, making it possible to raise finance via external business angels.

With Tearle & Carver’s expert knowledge, you can be sure to maximise your chances of securing external finance. Our SEIS and EIS Scheme services include:

  • drafting qualifying Information Memorandums
  • Business start-up support
  • Tax optimisation as required
  • Seamless technical service delivered through our collaboration with Avidity-IP Ltd

* All intellectual property (IP) and technical services are provided through our collaboration with Avidity IP Limited – a UK company regulated by IP-Reg and a member of the Chartered Institute of Patent Attorneys.

 avidity

With you for the journey

Share Options

We help navigate your way through the complex world of share option schemes and the raft of legislation, so you can attract and retain key talent in your business.

The current economic environment of falling unemployment means there is increased competition for the best employees, therefore it is more important than ever to retain the staff you want to keep.

Retaining key employees within your business has direct effect on:

  • Maintaining key client relations
  • Providing a top end service
  • Maximising profitability

Share option schemes can be a better and more affordable proposition than a salary increase, with the added effect of long term retention of key staff.

We can advise on the various schemes that exist and getting advance clearance from HMRC on your behalf.

Why not give us a call to find out if you can take advantage of the following approved schemes that give the most tax benefits:

  • Save As You Earn – Employee saves monthly from net income and has option to purchase shares at fixed price at end of scheme or take savings with tax free bonus
  • Share Incentive Plan – Employer can use up to 4 different ways of providing shares (not options) to employees: Free, purchased out of gross salary, employer gift, reinvestment of dividends
  • Company Share Options Plan / Enterprise Management Incentives – Award of share options to key employees only.
Capital Allowances

By utilising the capital allowances locked up in your commercial property, substantial tax savings can be achieve. Our expert advisors work on a no win, no fee basis.

Capital allowances provide tax relief for owners of commercial property, and can be claimed on a range of property features including electrical and lighting systems, cold water systems, ventilation systems, lifts, and escalators.

Following the Finance Act 2012, which introduced some critical changes to how Capital Allowances are identified, these valuable tax reliefs can be lost for good if not agreed between the seller and buyer when the commercial property changes hands.

Although there is a two year window in which to submit a joint election between the purchaser and seller (or, in the case of dispute, an application for a tribunal), failure to do so can have long term consequences. Impacting both the immediate purchase and any subsequent resale, the inability to claim capital allowances in the future may reduce the value of a property.

Unless the correct procedures are taken, not only will capital allowances be lost for the buyer, they will be lost forever.

Tearle & Carver, through collaboration with experts Exact Business Taxation Services Ltd, now offer specialist guidance relating to Capital Allowances. These services include:

Advice on all matters regarding Capital Allowances for commercial and furnished holiday let properties

  • Combined knowledge of the complexities of Tax Legislation and a specialist experience in surveying
  • Providing a legitimate means of reducing your tax bill by ensuring that valuable tax reliefs are correctly claimed

*All Capital Allowances services are provided through our collaboration with Exact Business Taxation Services Ltd – a UK company based in Cambridge and registered in England No: 07510023

exact

Research & Development Relief and Tax Credits

The opportunities to claim R&D tax relief are far reaching and are there to encourage new innovations in the UK. Our experts are on hand to help companies optimise the potential tax savings.

With the clear objective of stimulating technology Research and Development (R&D), the UK government has made available a number of innovative provisions to offset Corporation Tax.

Tearle & Carver offer a comprehensive and detailed technical service, provided by accredited IP professionals Avidity IP Limited, to identify and maximise the benefits of Research and Development Tax Credits.

R&D Tax Credits – Research and Development Relief is a Corporation Tax relief that may reduce your company or organisation’s tax bill. Related services include:

  • Working with you to compile a detailed technical report in support of your application
  • Identifying ways to position tax relief going forward
  • Access to up-to-date technical development and manufacturing experience through our specialist intellectual property colleagues
  • Advice on minimising expenditure for non-core activities through route mapping and project/business planning

 * All intellectual property (IP) and technical services are provided through our collaboration with Avidity IP Limited – a UK company regulated by IP-Reg and a member of the Chartered Institute of Patent Attorneys.

avidity

With you for the journey

Regulated by IPReg – CIPA Member

Case Studies

The Tax Man

Minimise the stress of an investigation and make use of our extensive experience in securing best outcome for our clients

Business Valuation in Distress

Take advantage of our impartial and rigorous due diligence procedures

FD in The Cupboard

Our innovative ideas are here to improve your business performance and secure appropriate and cost effective funding

The Tax Man

The Tax Man

A new client was introduced to us via a recommendation with whom we arranged to meet on a regular basis in order to determine a number of changes that we felt were needed to their business structure. The client was at the time operating as a husband and wife partnership. The business was flourishing and had a number of large contracts with big organisations.

At the start of the process they were still heavily immersed in their day to day operations so we can get a full flavour for their ambitions, aspirations and growth plans. We quickly recognised there were sufficient tax savings which can be achieved by changing the structure from a partnership to a corporate entity. We carried out a business valuation and disposed of the goodwill from the old to the new business. Unfortunately, as often is the case with efficient tax planning, HMRC got involved and disputed our valuation.

An HMRC investigation can be a very stressful time for any client, even for those best prepared. However, our client had minimal input in the HMRC communication as we dealt with this professionally behind the scene. As an added benefit, our client could rest on the security that all work was covered by insurance and therefore all costs and time in dealing with this enquiry were covered by the fee protection policy we had put in place.

The initial approach taken by HMRC was very aggressive and they tried to present an argument that there was no goodwill in the business. We challenged HMRC’s view that the goodwill was worthless. After lengthy correspondence and numerous telephone calls, HMRC agreed 100% with our original valuation, which preserved our original tax saving plan for the client. Tax savings on this case where in the region of £75K at the outset, with ongoing savings of £6,000 per annum. We are pleased to add another happy client to our portfolio.

Business Valuation in Distress

Business Valuation in Distress

Selling a business is never an easy process, but when disputes arise, the need for a reliable third party due diligence process is even greater.

Tearle & Carver have extensive understanding of the requirements for remaining objective when managing a potentially difficult company buyout. In one such case, we were approached by the courts to act as independent accountant for an acrimonious business sale in which one partner was exiting the business and selling shares to the other. Given the circumstances, both sides had totally polar views of what their business was worth.

After arranging an initial meeting with the company, we were thorough in ensuring we completed due diligence, validating the figures in the accounting records, carrying out adjustments where appropriate, and drafting a set of reliable management figures within the framework required by the court.

A draft version of the report detailing our findings and conclusions was submitted to both parties, giving them the opportunity to voice any queries or concerns and ensure all relevant factors had been taken into account.

Through this process, we were able to submit a final report to the courts that was both binding and acceptable to both parties, effectively resolving what could otherwise have been a time consuming and costly process for all sides.

FD in The Cupboard

FD in The Cupboard

For smaller companies, it is often not possible or cost effective to pay for a full-time Financial Director.
Many of our clients therefore make use of Tearle & Carver’s extensive expertise to provide the services of an FD as and when required.

In this case, we were approached by the management team of an organisation looking to acquire the existing business via an MBO (Management buy out). Their business plan had proved ineffective for securing funding, and what they needed was financial expertise from someone with a developed understanding of the company’s internal workings.

Tearle & Carver helped deliver the solution our clients were looking through utilising our bank contacts in order to make the MBO viable, while also building a robust business plan and preparing our client for the rigorous vetting process. To help with cash flow issues, we introduced factoring which led to improved cash flow management.

We advised on the appropriate business valuation and structure, and continued to prepare monthly accounts to track profgress once the management were fully in command of all the information they needed to move their business forward.

In order to best assist these clients through the crucial first year of ownership, we attended board meetings on a regular basis, a service that we continue to provide to date.

With our continually developing understanding of their business, this client is able to remain confident that Tearle & Carver can provide any financial support they may need, now and in the future.