Have you been issued a tax return and have no idea where to start? Full Spectrum tax advice relieves your headache by doing your returns for you. We’ve outlined the different categories of tax for which we can prepare tax returns here:
- Personal tax returns
- Partnership tax returns
- Business tax returns
- Corporation tax returns
- Trust and estate tax returns
- Inheritance tax
- Capital gains tax
Personal tax returns
Personal tax returns have to be completed when you owe tax in a tax year, if you are issued a personal tax return, or if you are a director of a small company.
Personal tax returns are now completed under self assessment. This means that the law stipulates that it is your responsibility to know whether or not you owe tax for a tax year.
Given our experience in the industry, we can tell you that completing a personal tax return is not a simple task. You should not underestimate it. Again, the law stipulates that you complete your personal tax return correctly and honestly. Failure to submit a correct, honest return may result in set fines, with penalties for tax underpayments of up to 200% of the underpayment. Our tax and accounting services can help you avoid this.
The most common cases in which you might owe tax include:
- If you are a higher rate tax payer (taxable income of over £50,000 for the current (2020/21) tax year) with income taxed at lower than the 40% tax rate (such as bank interest and dividends)
- If you are self employed
- If you are receiving income that has no tax deducted at source, such as rental income.
Full Spectrum has competitive prices to complete your personal tax return so please contact us.
Partnership tax returns
All business partnerships are required to complete partnership tax returns – failure to do on time means a late filing penalty for each partner in the partnership, so missing the deadline could be costly. Don’t miss the deadline for your partnership tax returns – just ask Full Spectrum to complete it for you!
Since the tax rules for partnership tax returns are similar to that for sole traders, please see business tax below for more relevant details.
Business tax returns
The amount of business tax payable has major implications for how much can be paid in drawings/dividends or to be reinvested in the future of the business.
First of all businesses must prepare accounts, or a profit and loss statement (please refer to our accountancy section). Then the business tax returns work really begins. Accounts and underlying records must be verified; some transactions have special tax treatment and have to be identified so the business tax calculations can be done correctly
Any mistake or failure to do so can lead to an incorrect tax return and unfortunately businesses often get their tax calculations wrong, such as claiming for expenses that are not allowable; paying tax on non taxable items; miscalculating or misallocating VAT, or making errors with PAYE and employee benefits. These generally involve underpaying business tax which can lead to fines and penalties from the Revenue.
Full Spectrum helps you with completing a correct business tax return, and can ensure that you maximise your business tax deductions so please contact us for an estimate.
Corporation tax returns
The basics of company taxation is the same as that for any other business (so please see our comments on business tax), though it does have its own peculiarities and specific tax return.
Most of the extra tax issues for companies relate to the directors and shareholders so often extra forms have to be completed because of overdrawn directors’ accounts and where interest is paid. The only companies that do not have to prepare a return are dormant ones, so if your company is actively trading please contact Full Spectrum for corporation tax services for completing your corporation tax return.
Trust and estate tax returns
There have been many changes to the tax rules for trusts and deceased estates over the last 25 years so it pays to have an experienced professional to help complete the tax return.
Accounts should also be completed in many cases, since often income and capital allocations need to be known to avoid a breach of trust law which may cause major legal problems for the trustees.
Very few smaller practices can match our experience with trusts – please contact Full Spectrum for an estimate of costs for our tax planning.
Inheritance tax is the only tax that can be fully avoided without leaving the country, though unfortunately this is not always practical. Since your wealth is probably your reward for hard work during your lifetime and you have paid a lot of tax along the way, do you really want the government to take another 40% slice of it?
Inheritance tax planning can help minimise the amount the government claims, leaving more for your family. If your entire wealth of assets (less debts) comes to more than £325,000 for the 2020/21 tax year, or double these amounts if you are married/in a civil partnership, it may be wise to take tax advice on inheritance tax planning (unless your money is there simply to fund your current lifestyle).
Inheritance tax planning normally requires a Will to be written, or a trust created, in order to take advantage of any planning suggestions which will lead to legal fees. Please note we also offer advice on deceased estates as there are various tax options available even after death. Please contact Full Spectrum to find out how we can help you.
Capital gains tax
Income tax is often very hard to reduce due to the fact it is the main source of the government’s wealth. It is therefore the tax with the most rules and least amount of reliefs. However, capital taxes such as capital gains tax have less rules and many more exemptions and reliefs. We’d like to help you to avoid paying more tax than is necessary.
Applying our expertise, Full Spectrum offers you Capital Gains advice on many different tax planning opportunities, depending on your individual and business needs.
There is nothing worse than being on the wrong side of a HM Customs Inspector – they are well known for being the most draconian of the tax inspectors. However, the tight deadlines imposed for completing the returns and registering if the turnover limits are exceeded means investigations can be difficult to avoid.
In addition, the wealth of rules which are constantly changing as new VAT tribunals are heard can become a minefield. Can you be sure that you have treated every item in your VAT return correctly? With cross border transactions becoming more and more common, it becomes harder to know for sure. Please contact Full Spectrum for tax advice on your VAT returns.