|
|
|
|
| |
|
|
|
| |
|
|
latest news, updates
& advice from Zeal |
| |
|
Newsletter Issue 14
February 2023 |
| |
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
January is notoriously the busiest month of the year for tax teams as the 31st is the deadline to submit personal and partnership tax returns.
This was no different for 2023, with it being extremely busy for Zeal’s capital allowances team. By submitting claims for capital allowances before the 31st deadline, our clients could benefit from refunds of tax paid last year and reduce or eliminate their tax due in January.
In summary, last month our team assisted 58 different clients to identify claims for capital allowances, unlocking over £4.8m in unclaimed tax relief. This will result in cash tax savings for our clients of at least 1 million pounds!
Below is a summary of some of the cases we worked on:
|
| |
|
|
|
|
| |
|
|
| |
| Holiday Lets / Serviced Accommodation |
| |
|
Zeal specialises in helping owners of holiday let properties (often referred to as serviced accommodation) to claim the tax savings on the purchase price, refurbishment or build costs. To qualify for this valuable tax relief, the property needs to be . . . Read more
Last month we assisted 31 serviced accommodation owners, unlocking almost £500,000 in unclaimed tax relief. Examples include:
|
| |
|
Purchase & extension of residential property in Bath for holiday letting.
- Purchase price and extension cost = £460,530.
- CA’s identified £99,923.
- Refund of £4,706.
- Future savings of £15,279.
. . . See more examples
|
| |
|
| |
|
|
| |
|
| |
|
|
| |
|
|
| |
| Purchase of Children’s Nursery in Witney |
| |
|
- Total capital allowances identified of £67,052.
- Total corporation tax savings of £12,740.
The company purchased the property in 2001 for £315,000 (excluding SDLT & Legal fees). By making the claim in the company’s earliest open corporation tax return, being 31 January 2021, a refund of corporation tax paid of £1,495 was reclaimed . . . Read more
|
| |
|
| |
|
|
| |
|
| |
|
|
| |
|
|
| |
| Purchase of a Caravan Park in Powys |
| |
|
- Cash refund generated of £9,986.
- Future tax savings of £11,465.
Our client purchased a caravan and touring park in 2021 for £654,500. Due to the date of purchase the claim was restricted, however, Zeal were still able to identify £144,103 of expenditure qualifying . . . Read more
|
| |
|
| |
|
|
| |
|
| |
|
|
|
|
|
|
| |
With the evident increase of HMRC investigations, it's important we do all we can to reduce the chance of an enquiry being made. The article below identifies key areas that are often the cause of an enquiry and how to minimise the risk . . . Read more
|
| |
|
|
|
|
| |
|
|
| |
| Article: Prevent HMRC enquiries on R&D claims |
| |
|
No one ever wants to endure a HMRC enquiry, and the prospect of one may deter some from making a R&D claim. Some of the key areas that often result in a R&D Tax enquiry are:
– Project identification
– Cost apportionment
– Project boundaries
– Additional information
All of the above can result in an enquiry costing valuable time and resources if sufficient care isn’t taken when preparing a claim and if the correct level of detail isn’t provided to HMRC . . . Read more |
| |
|
| |
|
|
| |
|
| |
|
|
|
|
|
|
| |
|
|
HMRC’s ongoing efforts to collect more of the “Tax Gap” continue unabated. In fact, they are increasing their endeavours by expanding capacity (staff and IT capability) in a serious effort to get more income from their Enquiry and Investigations procedures.
The huge £350+billion cost of the various government grants and furlough schemes given to businesses of all shapes and sizes has caused a cavernous hole in the government’s reserves. This is further aggravated by the timing of the pandemic alongside the many new rules and regulations with imports / exports due to Brexit. In short, they need to collect revenue now, and more efficiently, than ever.
Many accountancy practices, of all sizes and core disciplines, have started to comment on the increased activity emanating from HMRC. . . . Read more |
| |
|
|
|
|
| |
|
|
| |
|
|
It is so serious that HMRC have a new budget to tackle the situation, a £100m investment into a specialist taskforce, consisting of over 1200 additional staff. The last time HMRC did this a decade ago, they increased the prosecutions fivefold within a few years … so the taxpayer should expect high activity in the Enquiry & Investigations arena.
HMRC are moving on from the softer “nudge letters” approach to considering making claims that a criminal offence has taken pleace as opposed to a civil offence. Very serious stuff, but perhaps a necessary one considering the implications of the mounting debt to both the Government and the Taxpayer.
There will no doubt be many enquiries that get opened and closed relatively quickly and with no negative result for the taxpayer. In fact, 50% of all investigations are closed in such a manner as it is, but the point is, HMRC are now looking into any and all taxpayers, and it is not limited to . . . Read more |
| |
|
| |
|
|
| |
|
| |
|
|
|
|
|
|
| |
|
|
| |
|
|
Zeal has a team that provide advice on Stamp Duty Land Tax (Land Transaction Tax ‘LTT’ in Wales or Land & Buildings Transaction Tax ‘LBTT’ in Scotland). Our knowledge and experience of the relevant legislation enables us to identify opportunities to reduce Stamp taxes or reclaim overpaid amounts.
The most common area we see SDLT over paid is on the purchase of sites with multiple buildings, certain purchases by developers and uninhabitable second properties. The latter is perhaps the most common SDLT reclaim. Where second residential properties were purchased in a run-down state, the additional 3%/4% SDLT surcharge paid can be reclaimed.
As an example, last month we had a client that had bought a second property for holiday letting and paid an extra £6,210 in SDLT. The property needed to be rewired as the system was so old it was deemed unsafe. There were also damp issues with the property. After presenting the case to HMRC’s Stamp Taxes Team, our client received a refund of the £6,210 paid . . . Read more
|
| |
|
| |
|
|
| |
|
| |
|
|
|
|
| |
|
Speak with one of our tax specialists Now!
|
| |
|
|
Our experts help businesses across the UK tackle challenging tax
issues. If you find yourself in a position of needing specialist tax advice
we're on hand to help. Let us know when would be a good time for
a chat, and we will call you back.
|
| |
|
|
|
|
| |
|
|
| |
|
|
|
|
|
As a member of the Chartered Institute of Taxation, and with our own in-house tax specialists, Zeal are ideally placed to support you in providing a complete tax service to your clients. We deliver our services all over the UK, no matter the size of your practice or clients.
|
| |
|
|
|
| |
|
|
| |
|
|
|
| <unsubscribe>Unsubscribe</unsubscribe> |
|
|
| |
|
|
