As the kids gear up to return to school, so too are we preparing for an exciting autumn – Tom and Luke are sitting more professional exams, Cate is walking 26 miles through the Wye Valley to raise money for MacMillan (the day after a networking event), and we’re moving office!! Don’t worry though, we’ll only be next door.
For those of you who received income in 2021/22 which was not subject to tax at source (property, dividends, trading, partnership etc) and are not yet registered for self-assessment, the deadline is 5 October – we’d encourage you to notify HMRC as soon as possible as late registration can result in penalties if the tax isn’t paid on time!
With that in mind, we’re entering the busy period for submission of self-assessment tax returns (individuals and partnerships) and would encourage anyone who is yet to do so to provide all relevant information to their advisor as soon as possible. Not only does this prevent the risk of late submission, it also provides you with more time to plan for the tax payments due (or if you’re due a refund, to have that money in your bank sooner).
Have you stopped to think what would happen to your business when you want to retire? Will your family take up the reins, will you sell to your management team, or a third party, or will you simply liquidate? Whilst it may be a few years down the road, it’s worth starting to think about business succession so plans can be implemented early. This is particularly important where certain conditions need to be met for a number of years prior to the relevant transaction or if employees or family members will need to raise funds. Whichever method you chose to achieve you goals, the tax implications are many and varied for all parties involved (you, the business, the transferors) and it is worth exploring options sooner rather than later so that you can all be prepared.
We have written previously about HMRC’s disclosure campaigns (let property, COP9, DRSO), but what if there’s a tax irregularity not covered by one of HMRC’s campaigns? What if you’ve simply made an error on a tax return or failed to notify HMRC that you had income not subject to tax at source? From a penalty perspective, it’s always better to make a voluntary disclosure and to do so as soon as reasonably practicable after the issue has been identified. HMRC offer a Digital Disclosure Service which allows the provision of basic information (income, tax, interest, penalties) but very little space for an explanation of how the irregularity arose. Appointing a suitably experienced advisor will reduce the stress experienced in dealing with HMRC, ensure the correct calculation of tax and interest, and manage negotiation surrounding the correct level of penalty.
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If you would like to discuss the capital goods scheme or any other tax related please get in touch