MFW tax consultants
Whether you are a sole trader or a small family business, a limited company or a larger organisation, or an individual seeking to better manage your personal tax affairs; you will want the peace of mind that your tax affairs are up to date and compliant. This is particularly important at a time when the taxman has taken even greater steps to tackle areas of tax avoidance.
You need a tax consultant who understands your goals and you can rely on to reduce your taxation worries.
This is where MFW can help.
MFW Tax Advisors
Since the firm was established in 1936, McCabe Ford Williams has been helping clients to keep more of what they earn. Our first step is to get to understand you and your business to establish what goals you have for now and your future. Our passion is to proactively help our clients make the most of their tax planning to achieve their goals.
Our tax consultants will take all the worry of taxation away, fully brief you on your liabilities and ensure that you are paying the minimum amount of tax required by law.
We help our clients to plan to ensure their tax affairs are conducted in a tax efficient manner, helping them to save money, wherever possible.
Our Tax services include but are not limited to the following:
Advice for business on Making Tax Digital and Cloud Accounting Software
MTD for VAT has already rolled out. The next stage of Making Tax Digital (MTD) will affect certain individuals, namely unincorporated businesses, and landlords whose total gross income from self-employment and property exceeds £10,000 in a tax year. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), the next stage in MTD will start in April 2024.
Our tax teams can help you can prepare for MTD for ITSA so that by April 2024 you are more than ready to tackle this new way of reporting where instead of submitting one tax return per year you will need to do five! This will create much more work and hassle but do not worry, we’re on hand to help.
Cloud Accounting software solutions
Our team will ensure you have the right accounting platform for you and will look at whole market software solutions to ensure you have the right software to support you and your business’ needs. This includes all the latest cloud accounting software solutions. This includes but not limited to market leading software such as Xero, Sage, QuickBooks and many more. Rest assured it will be the best solution for your business needs.
We will provide training for you and your team to get the best from your chosen software and we will also show you how to set up the best practices and procedures to remove the hassle of Making Tax Digital.
Business Taxation advice
As the world of business taxation grows, it seems harder each year. More legislation to cope with and compliance to meet. Taxation affects every aspect of your business and therefore planning is essential to ensure your business makes the most of all available allowances. Taxation advice is as critical in start-up, business development and business retirement and succession life stages, so do ensure you get good advice from professional tax consultants.
The government are throwing even more legislation at business now with the introduction of Making Tax Digital (MTD) where affected businesses and individuals will need to report their tax details five times a year.
HMRC are now investigating more businesses and individuals with the help of their supercomputer, Connex, to challenge and investigate anything they feel is not reported correctly, as part of their tax avoidance schemes. It is essential, therefore, that you remain compliant, and you pay the correct amount of tax. At MFW, our tax advisors are on hand to help you make the most of your allowances and reliefs so that you never pay more than your fair share.
Our business tax services include:
Business set-up and structure
We will help you to establish the best business structure for you to maximise on your business reliefs and allowances.
Business acquisitions and mergers/Selling a business
Whether you are looking to grow organically or through business acquisition, we will be on hand to ensure that you make the most tax efficient decisions and are aware of all your tax obligations.
However, we don’t just help you plan for you and your business’ tax affairs for today, but we will work with you to plan for your tomorrow and to the time when you will want to hang up your gloves and do something different instead.
Whether that means selling your business to a third party or passing it down the family to the next generation, we will be on hand to help you plan what is best for you. Our consultants will work closely with your lawyers and other professional advisors to help achieve the best result for you.
Corporate Taxation Advice
We will look at all areas of corporate alongside your personal tax affairs to help you to:
- Ensure the best capital vs revenue tax treatment
- Implement tax efficient accounting policies
- Consider the most tax efficient structure for your business
- Review your Corporation Tax
- Optimise the tax position on major transactions – e.g. property sale or purchase
- Review profit extraction
- Identify succession planning issues
- Maximise efficient use of any tax losses
Income Tax & National Insurance
Income Tax was originally introduced in Great Britain by Prime Minister William Pitt the Younger in December 1798 in order to pay for the French Revolutionary War. Income tax was abolished in 1816, one year after the Battle of Waterloo, by the then Prime Minister Henry Addington. Sir Robert Peel reintroduced Income Tax, however, with the Income Tax Act 1842 in order to raise tax revenue to help cope with a growing deficit. Income Tax has been paid ever since in the form of the Pay As You Earn (PAYE) system where the employer deducts tax from an individual’s wage. The Act has been updated and today the legislation is contained in the Income Tax Act 2007.
Income Tax Personal Allowances
The Personal Allowance is the amount of income a person can earn before they pay any tax. This has increased to the current level of £12,570.
|Allowances||2022 to 2023||2021 to 2022||2020 to 2021||2019 to 2020|
|Income limit for Personal Allowance||£100,000||£100,000||£100,000||£100,000|
The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero. Other Personal Allowance rates may apply for those born prior to 1948.
Income Tax rates and bands
You will only pay tax on earnings in excess of your personal allowance. There are 3 tiers depending on how much you earn. Your Income tax is calculated using the following band and rates.
|Band||Rate||Income after allowances 2022 to 2023||Income after allowances 2021 to 2022||Income after allowances 2020 to 2021||Income after allowances 2019 to 2020|
|Basic rate in England & Northern Ireland||20%||Up to £37,700||Up to £37,700||Up to £37,500||Up to £37,500|
|Higher rate in England & Northern Ireland||40%||£37,701 to £150,000||£37,701 to £150,000||£37,501 to £150,000||£37,501 to £150,000|
|England & Northern Ireland Additional rate||45%||Over £150,000||Over £150,000||Over £150,000||Over £150,000|
Other Income Tax rates apply for Scotland and Wales. You will also need to pay Income Tax on savings over a certain amount.
An employee earning £35,000 per annum would pay the following tax:
£35,000 less £12, 575 personal allowance to work out taxable pay.
£22,425 Taxable income taxed at the 20% basic rate deducts £4,483.20 tax
£35,000 less £4,483.20 = Income less Tax £30,516.80 (based on Month 1 standard tax code)
On top of this you would need to make National Insurance contributions to achieve the tax home pay amount.
At McCabe Ford Williams we can ensure your Income Tax is compliant and, if you are an employer, we will ensure that you are calculating your employees income correctly.
We will also ensure you are making the most of all your tax allowances to ensure yopu keep more of what you earn.
National Insurance (NICs)
You pay mandatory National Insurance if you are aged 16 or over and are either:
- an employee earning above £242 a week
- self-employed and making a profit of £6,725 or more a year
If you are an employer you will need to make your own contributions for your employees and collect NICs from your employees. We can ensure your National Insurance payments are correct and if you are an employer we will ensure that you remain compliant.
For more details on our National Insurance services please click here.
We also run our own payroll and BACs department where we can work out the Income Tax and NICs you need to make to remove the stress of running your own payroll.
Self Assessment Tax
Self Assessment Tax was introduced by HMRC in 1997. The Self Assessment Tax system is used by individuals who are self-employed and by other individuals to declare any income and earnings not being declared through the Pay As You Earn (PAYE) system. This includes, for example landlords.
Completing a Self Assessment tax return can be very confusing for the individual and costly if you get your submission wrong or are late in submitting it. At MFW, we will simplify Self Assessment Tax and ensure that not only are you compliant but that you are using all your tax allowances and reliefs available. We have a dedicated page on Self Assessment which you can access here. Alternatively, please contact your local MFW office and ask for a member of our Self Assessment tax advisors.
We consider VAT to be perhaps the most complex of all UK taxes. Recent changes via the Making Tax Digital programme have further compounded this. However, we are on hand with our VAT services which include:
- Advising you on whether to register for VAT
- Completing the VAT registration process with HMRC
- Assistance on the deregistration process
- Help to identify the most appropriate and beneficial VAT scheme for your business
- Advise on the VAT liability of any supplies you make, or are intending to make
- Preparation, review, and submission of VAT Returns
- Partial exemption calculations
- Compliance with regulations and MTD
- Act on your behalf and dealing with HMRC
- Liaison with HMRC in relation to compliance visits or inspections
- Specialist VAT advice for certain sectors
For more information on our VAT services please click here.
Or contact a member of our tax teams.
Construction Industry Scheme (CIS)
The Construction Industry Scheme (CIS) is a scheme whereby contractors are required to withhold tax on certain payments to their sub-contractors whilst undertaking construction work.
There are various steps you need to be aware of including the Domestic Reverse Charge for Construction Services.
At MFW we have been working within the property and constructions sectors since the firm was established and have over 80 years of experience helping our property and construction clients keep more of what they earn.
Our constructions services include:
- Advice upon construction activities and their financing.
- Profit planning.
- Cash flows and project finance.
- How to maximise available tax reliefs.
- VAT planning and VAT advice.
- Advice upon the Construction Industry Scheme (CIS).
- Advice upon the acquisition or sale of land or property.
- Accounting services including book-keeping and the preparation of accounts.
- Raising finance for property developments.
- Tax return preparation and compliance.
- Advice upon the operations of sole traders, partnerships, LLPs, or limited companies.
- Advice to contractors and sub- contractors.
- Advice upon income tax or capital gains tax matters.
For more information, please speak to your local MFW office.
Employment Status for Tax
Employment status is the name given to determining if an individual is self-employed or employed. This is not only important under employment law, which governs an individual’s statutory rights and benefits, but also has vast implications in regards to making tax and National Insurance contributions (NICs).
Whilst these areas can be complex including the IR35 (off-payroll working rules) we can help.
Our tax advisors will ensure that both yourself and any employees are correctly classed for tax purposes to ensure you don’t fall foul of compliance. Just ask us for more information.
Personal Tax Planning advice
Our personal taxation services https://mfw.co.uk/taxation/personal-tax-planning/ are there to ensure that you receive the best possible advice on planning your own tax affairs. We can ensure you are paying the correct amount of tax, making the most of any tax allowances and that you are making the most of your tax planning for today and the future.
Our personal tax planning services include the following:
Capital Gains Tax advice (CGT advice)
Simply put, Capital Gains Tax is the tax liable on profits made from selling or disposing of any of your assets. However, in practice Capital Gains Tax (CGT) is far from simple and can easily catch out the tax novice. This can often result in costly consequences so; it is always best to seek professional advice when looking to sell or dispose of your assets.
At MFW, our tax consultants are here to advise you on the latest legislation and ensure you’re compliant. Our tax advisors will also ensure you make the most out of your available tax allowances, reliefs, and deductions for Capital Gains Tax to minimise any of your CGT liabilities, so you’re never left with any nasty surprises.
Capital Gains Tax Reliefs include:
- Business Asset Disposal Relief.
- Private Residence Relief.
- Incorporation Relief.
- Investors’ Relief.
- Gift Hold-Over Relief.
- Roll-Over Relief.
For more information on Capital Gains Tax, please click here, or speak to one of our tax consultants.
Inheritance Tax Planning (IHT)
Inheritance Tax (IHT) deals with the taxation of the estate of a deceased person. IHT is another complicated tax and one which you should get to grips with before your demise so that you reduce the stress and strain on your loved ones when the time comes. Whilst nobody wants to think of their own demise, planning ahead and planning early means that your beneficiaries will be in a better position, and you can have a say in what happens to your estate once you are no longer around.
The earlier you start your IHT planning the better. Please contact a member of our tax team for more help.
Linked to Inheritance Tax planning is the issue of Trusts. There are many tax advantages of setting up trusts as part of your IHT planning. As well as helping to pass assets through different generations of your family trusts as tax efficiently as possible, trusts also help families to provide for children and vulnerable beneficiaries, retain control over their assets, to protect their assets and allow them to make gifts to charities in their Will.
We can ensure you make the most of your trusts alongside your Inheritance Tax planning.
For more information about trusts, please contact a member of your local MFW tax team.
MFW Tax Investigation Service
We also provide a Tax Investigation Service to help protect you from the stresses of a HMRC tax investigation. Our Tax Investigation service not only protects against enquiries into your business, but it could also include enquiries into your use of the Coronavirus Job Retention Scheme (CJRS) if this enquiry arises as a result of a PAYE compliance check. For more details, please click here.
Our clients have been benefiting from our tax advice for over 80 years. Here’s just some of our satisfied clients visit our testimonials page.
Contact us today
Whatever tax advice you need we can help. Our tax teams are here to help. Simply call your local MFW office for a free consultation.