50% tax rate, Business Tax, Personal tax, Tax Planning, Taxation

Careful tax planning means lower tax bills allowing company directors to have their cake and eat it

By RJP LLP

With tax return season looming, there have been some important changes to the penalty system created in the Finance Act 2009 which have just come into force and which those keen to minimise tax with tax planning should take note of.

Submit your self assessment tax return on time

In the past, it was possible for clients to avoid the £100 late filing penalty if they paid the tax that they owed by the due date. That is no longer the case and the £100 late filing fee will be due if the tax return is late, regardless of whether tax is owing or not.

In addition, the changes mean that where the tax return is more than 3 months late HMRC will now be able to apply daily penalties; the daily penalty rate is £10 per day for up to 90 days. Once the return is 6 months late the penalty becomes a further 5% of the tax shown as due by the return or £300 if greater.

If you trade as a partnership, it’s also important to remember that these penalties are payable by EACH partner where the partnership return is late, in addition to any penalties for late filing of the partners’ personal returns. So the new penalties are potentially very costly, which is a very good reason to submit your self assessement tax return on time. And whilst self assessment tax returns can be viewed as something of an inconvenience, they also present an opportunity to review your tax affairs to ensure you are arranging your affairs as tax efficiently as possible and that equal consideration is being given to business and personal tax.

As many business owners will appreciate, tax planning opportunities are becoming few and far between, which means it is especially important to review everything and ensure your overall affairs are arranged tax efficiently on an ongoing basis.

Surrey accountant offers holistic tax planning review

During December and January, RJP will be offering company directors a special opportunity to benefit from a holistic tax planning review. Business owners in particular can benefit from one of these sessions because, by carefully balancing your personal and company affairs, it is possible to considerably reduce your tax liability. Now, with the introduction of the 50% tax rate and the withdrawal of personal allowances for those with total income between £100,000 and £113,000, the effective rate of tax can be considerably minimised with careful planning.

If you attend one of Surrey accountant RJP’s business owner tax planning reviews, we will help you identify the optimum way to structure your financial affairs to reduce your tax liabilities. For example, this could be achieved by structuring the way in which you take income from your business, equalizing income between partners, or incorporating a business into a limited company.

Each session lasts an hour and we guarantee you will more than cover the cost of the meeting in reduced taxes in the future. To find out more, contact Lesley Stalker by email to las@rjp.co.uk

How to get onboard with RJP

Talk to us

Have an initial discussion with a member of the RJP team to identify ways we can enhance your business's growth with our comprehensive support and strategic advice.

Hassle-free migration

Choose RJP and we'll smoothly manage all transitions, handling paperwork, coordinating with your current accountant, and ensuring no deadlines are missed for a worry-free experience.

A pathway to growth

Finally, we will send you the required documents to sign and return, leaving you to continue leading your business, backed by our abundant, responsive advice and support.

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Hear directly from our clients about how RJP's personal, straightforward approach has made all the difference in their business and personal success.

"I just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office."

"I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team."

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FAQs

At RJP, we understand that keeping a finger on the pulse of your business's health is crucial. That's why we offer management reporting services—think of them as a regular health check for your company. These insights show you the real-time performance of your business, helping you make informed decisions to nurture and grow your enterprise.

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Absolutely! There's a world of opportunity out there to support your business financially, and we're well-equipped to be your guide. We can help you understand and access HMRC’s tax relief schemes that are relevant to you and your business, making sure you're not missing out on any potential benefits.

When you need us, we're just a call or an email away—no question is too small or too large. We're known for our quick responses and our fixed fees mean you can reach out without worrying about unexpected costs. Plus, we always keep things simple and straight to the point. We're not just your accountants; we're part of your team, ready to support both your business and personal needs.