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The UK tax system is complex and is constantly evolving

Tax & VAT

The UK tax system is complex and is constantly evolving, and it can be something of a challenge for today’s busy business owner to ensure that their venture is operating as tax-efficiently as possible.

At Kirk Hills, we have a proven reputation for working alongside our clients to offer up-to-date, proactive advice on all areas of taxation, including a range of legitimate strategies to help minimize the tax bill.

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Understanding Tax

Profits in a limited company pay tax at 20% but individuals pay up to 45% so if you can leave profits in your company this is a good way to save tax. One simple way to save tax is to make pension payments. Another is to set up a business so that the key staff can be remunerated in part by dividend rather than salary.

We do not want to give away too much here but we have helped clients reduce their income tax to 0% by using the tax rules legally to their advantage. The best tax saving here is Entrepreneurs Relief (“ER”). Sales of business assets where you own over 5% of the business and are a director mean you only pay CGT of 10% after one year of ownership. This is on the first £1 million of gains.

Another tip to mitigate CGT completely is to emigrate before an asset sale and not return for at least one year after the sale. There are strict rules about timing and clearly, enough tax has to be saved to make this worthwhile. There will always be issues about leaving family and friends behind but there are fast track ways of emigrating.

Save on Business Tax

One great way to save tax on a business is to start it with others as an Enterprise Investment Scheme company – tax relief on investment and no CGT after three years is an attractive proposition. Another example is to split a company into four that had £50 million of assets so each sibling had one quarter.

No income tax, CGT, CT or even stamp duty using a section 110 Scheme of Arrangement. Of your CGT planning needs, helping to ensure that you minimize the impact of CGT and retain as many of the proceeds as possible.

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Tax Investigation Service

You need protection from a HMRC Tax Investigation

Last year, HMRC collected £34.1 billion through tax investigations and enquiries. What’s more, HMRC can target anyone who submits a tax return and their highly efficient ‘Connect’ software is accessing and trawling through financial information right now, with 83% of tax investigations being triggered by this system. 

 

Want to protect you and your business? Read more about Kirk Hill’s Tax Investigation Service here.

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Reduce Your Tax Bill

We believe that we can help you reduce your tax bill. In fact, we offer to undertake a review of the affairs for each new client and if we can’t, we won’t charge you for that work.

Tax saving is broadly split into the following areas:

  • Reducing taxes on income
  • Reducing or eliminating taxes on business acquisitions or disposals
  • Reducing or eliminating inheritance taxes
  • We have various legal tax saving schemes (that are not registerable as DOTAS schemes*) that all involve planning in advance, not after an event.

Is it possible to pay no tax?

Surprisingly, yes, it is possible. The key lies in effectively structuring a transaction. This is something we can assist with.

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