Taxation

Rimmer & May deal with all business tax matters such as capital allowances and other reliefs, tax planning opportunities for partnerships, sole traders, business succession and buy-outs. 

For individuals we prepare self assessment tax returns and our experience covers inheritance tax and related estate planning, capital gains tax, school fees planning, pensions, loan backs, trusts, investments and general tax planning. 

Income Tax is probably the most important aspect of accountancy 
Self-Assessment has, to some extent, simplified the taxation of the numerous categories amalgamating them into one calculation. 

This assists the overall calculation but is subject to penalties for missed deadlines or inaccuracies, numerous allowances and relief's are available to individuals depending upon age, nationality and other circumstances

Tax Tips

 - Make sure you keep all your records in connection with your tax affairs, including the originals of certificates and your working papers. You can be fined up to £3,000 for not keeping your records.

 - If you are asked to make payments of tax on account, check you're not paying more than you need to. the figures on the Inland Revenue's Statement of Account will be based on last year's tax bill. If you expect your income to be lower this year or your allowances and reliefs to be higher, you can make reduced payments.

 - Many fringe benefits are taxable these days - but they can still be a tax-efficient way of being paid. The taxable value put on them may be much lower than the value to you. There is a rundown on how fringe benefits are taxed - and which ones are the bargains - for more information contact Rimmer and May.

 - If you are elderly, watch out for the income trap - the level of income where the extra allowances paid to people aged 65 or over are withdrawn. The withdrawal is phased, but it means you are effectively taxed at a higher-than-normal rate on each extra £1 of income: a basic rate taxpayer would pay tax at 34 per cent on it in the current tax year, for example. consider tax-free investments if that is the case.

 - If you invest in shares, investment trusts or unit trusts, put as much as you can afford into Individual Savings Accounts (ISAs), which were introduced on 6 April 1999. you can invest upto £7,000 in the first year of ISAs and £5,000 a year thereafter - and a couple can invest double that amount. You can keep and PEPs and TESSAs going while taking out an ISA.

 - Self-employed people and small businesses can get a first-year capital allowance of 40 per cent of the cost of plant or machinery bought between 2 July 1997 and 1 July 2000 inclusive.

 - Investors should consider having some investments which gave a capital gain rather than income. There is a tax-free allowance of net capital gains which you can make each year - £7,200 in the tax year beginning 6 April 2000.

 - If you are facing a capital gains tax bill on the disposal of one large asset, you could sell assets that are showing losses to set against the gain. If you really don't really want to get rid of these other assets, you can buy them back some time later. But watch out for the new rules to stop "bed and breakfasting".

 - Draw up a will. If you die leaving a taxable estate of more than £234,000, there will be inheritance tax to pay at 40 per cent of the excess. There are simple steps you can take to minimise the tax bill and to reduce the complications for those you leave behind. Making a will helps you to start thinking about inheritance tax.