Tax efficient Cash Extraction
Over the years McAleer Jackson has developed a specialist service of advising business owners on strategies for the most tax-efficient means of extracting income from their businesses.
Some of the savings have been eye-watering, and what is most satisfying, the savings tend to be repeated year after year after year.
Capital Gains tax
The disposal by sale, gift or destruction of every asset owned personally needs to be considered from a tax perspective – despite general belief to the contrary. The asset could include your own home, stocks and shares in an investment portfolio or even the sale of a business.
The amount of tax due, if any, will be determined by the type, value and cost of the asset, the actual transaction, the length of ownership, as well as any availability to one, or many, reliefs and exemptions. Circumstance and objectives should drive decisions, however a clear understanding of potential tax liabilities in advance of making a disposal is important and often with correct planning transactions can be structured to minimise tax liabilities.
If you are looking to sell or dispose of an asset our private client team can advise you on any relevant exemptions and also ensure that the timing of the disposal has been fully considered to most effectively manage your tax liability.
The advice we give may include:
• Calculate the gain arising on actual and potential disposals of assets
• Exempt assets
• Advice on optimising reliefs and exemptions available to mitigate tax
• Principal residence relief
• Entrepreneur’s relief
• Holdover and Rollover relief
• Spouse and annual exemptions
The status of self-employed workers is the subject of a number of well publicised employment law cases and HMRC are looking closely at employers who engage with consultants to check whether the consultant is genuinely self-employed or whether the person providing the services should be treated as an employee.
There are many factors to consider when determining whether an individual would be treated as an employee or a self employed consultant. We are happy to review current or proposed engagements to establish the correct position
Employee Share incentives
Many companies consider providing shares or share options to key employees to help achieve corporate goals – such as profit growth; a sale of the business or even a flotation of the company’s shares on the stock market. When cash is tight, the use of share incentives can form a crucial part of an employee’s remuneration package and may be used to help recruit, retain and motivate key employees.
We have considerable experience in dealing with employee share incentives, and can assist in the design and implementation, operation, and ongoing HMRC compliance of the following share incentive arrangements:
• Enterprise Management Incentives (EMI) share option schemes;
• Unapproved share option plans;
• Share Incentive Plans and Save As You Earn Schemes;
• Growth Share plans;
• Long Term Incentive Plans; and
• Phantom Share Option plans.
Agreeing share valuations with HMRC when using an approved scheme is vital in understanding the tax implications. We can assist with ad-hoc share valuation projects for tax purposes and regularly undertake independent share scheme reviews (particularly on due diligence exercises) to ensure ongoing compliance and no unexpected PAYE or NIC liabilities.
Whether you are looking to acquire, dispose or simply restructure your existing business, there will be inevitable tax implications to consider. An understanding of these tax consequences together with your wider commercial objectives, and risk profile, will assist in your decision making process.
Additionally, identifying the tax risks will present further opportunities within the deal as well as provide crucial negotiation insights.
Research & Development (R&D) Tax Credits were introduced by the government in 2000, to reward and encourage innovation by British companies and help economic growth and success across all industries and sectors.
If your business is a trading UK company, and has spent money carrying out R&D activities, you could be eligible to claim a R&D tax credit.
For tax purposes, R&D will be often involved in the creation of an innovative process or way of working; the improvement of an existing product or the design of a new piece of software to tackle a particular issue. It is not restricted to work undertaken in laboratories by scientists in white coats!
Having submitted many successful claims on behalf of Clients, McAleer Jackson’s tax team is well-placed to assess your business and determine if it could qualify for a claim. We can prepare a detailed report identifying qualifying projects and expenditure, make the appropriate submissions to HMRC and liaise directly with them in order to keep you up to date on a claim’s progression.
Value added tax (VAT) is a key factor in business cashflow and potentially a real bottom line cost. Constantly evolving case law, statute and HMRC guidance makes compliance a continuous challenge. Less than excellent house-keeping can result in penalties, damaged reputation and/or missed opportunities. McAleer Jackson advises businesses and charities on the complex rules and regulations surrounding VAT, including:
• ensuring efficient VAT structures to maximise cashflow
• VAT healthchecks and reviews
• VAT related to property matters and sublets
• partial exemption
• defining how VAT should be applied to International transactions.
Whether you are looking to reduce costs or use VAT to achieve competitive advantage, we can provide the tax technical insights and skills you need to achieve the best VAT outcome. For more information on VAT contact us.
Have a question?
Whether it’s improving tax efficiency, supporting business growth, or protecting personal wealth, our team of trusted advisors can offer you a full range of accountancy, tax and business advisory services to give you the support you need.
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