Taxation

Our clients file personal tax returns for various reasons, including being self-employed, earning more than £100k per annum, being a company director, complex tax affairs (such as overseas income/trust income), rental of UK property. It is also true to say that the result of any personal tax planning is reported to HMRC through the filing of the annual self assessment tax return.

The completion of a personal tax return is one of the most important services completed by a professional services firm, because it directly impacts on your individual wealth and puts your tax affairs directly into the spotlight with HMRC.

MG Group are experts in tax and tax compliance services. We assist you through self assessment in the following ways:

• preparation, completion and submission of personal tax returns to HMRC before the self assessment deadline
• advising you on your tax liability and due date for payment
• acting as your professional agents with HMRC
• supporting you and your business through any aspect or full enquiries into your taxation affairs
• advising on ways to legally reduce your tax liability

We advise you on personal tax planning in order to mitigate income, capital and inheritance tax for our clients. We will meet with you to find out your goals and aims and find out how your wealth is structured and arranged. having this holistic view of your affairs allows us to provide the best possible advice.

Please call us today to discuss your tax affairs so that we can assist you to remain compliant and tax efficient.

MG Group deal with a number of partnerships, both traditional unincorporated partnerships, and also Limited Liability Partnerships (LLP).

Many businesses will be set up as partnerships, including many professional services firms. There are many benefits to a partnership structure, including the ease with which partners can join and leave the business. In recent times there has been a reduction in tax planning opportunities for partnerships - including tightening of the requirements to qualify as a true partner in a partnership, rather than being treated as an employee in a partnership set up.

We have extensive experience in assisting sole traders and traditional partnerships in moving into an LLP type model. Many traditional partnerships wish to transfer to LLP status in order to provide greater protection to each individual partner in the practice.

Please call us if you have any questions in relation to partnership taxation.

MG Group are registered as Chartered Tax Advisers with the Chartered Institute of Taxation (CIOT). We have a deep understanding of the complex world of corporate tax matters, including all the latest legislative changes brought about by the latest finance bills/acts and supplementary legislation.

Gavin Fernandes was previously a corporate tax specialist with Arthur Andersen and Deloitte. Having exposure to the affairs of complex international group structures has allowed Gavin to implement advisory services to smaller businesses using similar processes and commercial arrangements used by large multi-national companies. Corporation tax returns are an essential part of the annual compliance services provided by MG Group and we ensure that we consider planning opportunities at the time of filing the tax returns.

As a specialist taxation firm we proactively look to provide advice on group structures, dividend planning and directors' remuneration planning.

We would be delighted to speak with you in respect of corporation tax matters. Please contact Gavin Fernandes to discuss your situation in more detail.

We have many years' experience in advising clients based overseas (both UK domiciled and non-domiciled) in completion of UK tax returns in relation to UK based rental income. Under the scheme, the letting agent or tenant will be required to hold back tax on behalf of the landlord. This needs to be factored in when completing tax returns, and in many cases it will be possible to elect with HMRC to receive gross rental income.

We can apply for gross payment status and can advise on all types of implications arising from ownership of UK sited property to overseas landlords.

One important consideration is the implications of purchasing and disposing of UK sited property. On the disposal of the UK situated property, this may result in taxation on the gain arising. There is often planning available and we would be delighted to discuss the opportunities available.

We look forward to hearing from non resident landlords.

This includes trust advice and corporate tax planning - including groups/substantial shareholders' exemption

We provide a bespoke service to high net worth individuals - including considerations of the use of companies and trusts in order to manage wealth and provide a complete tax and wealth management service to our clients.

We work with other related businesses including solicitors, wealth managers, hedge funds, investment/stock brokers and can put you in touch with the right contacts for your specific situation.

By choosing MG Group as your tax advisers, you will open up opportunities to use the latest planning techniques, backed up by commercial rationale to structure your affairs. This means that you will maximising your wealth yet remaining tax compliant.

Double taxation relief and advice is becoming increasingly relevant and required by clients. We are proud of our expertise in this area. We have deep knowledge in double taxation issues, and how they impact on both companies and individuals with respect to overseas taxation and the impact on taxation paid in the UK.

The starting point is usually an understanding of where the individual or company is resident, and what sources of income arise in the UK. It is important to review double taxation agreements and to fully understand the nature of the income or gains that have arisen in the period.

MG Group are proud to provide these services to our clients and look forward to hearing from you if you have any questions in relation to double tax treaties and/or double taxation matters.

Statutory Residence Tax (SRT)

Commencing from 6 April 2013, the UK has introduced a statutory residence test to determine if an individual is UK resident (or not) for a particular tax year. The test only applies for tax years commencing from 6 April 2013.

This legislation is the culmination of much work on making the UK system more simple and fair to assess whether someone is UK resident or not. There are major tax implications of being UK resident or not, and MG Group can offer you proactive advice on assessing your position and situation.

Domicile

Domicile is a subtle but very important concept in taxation - in respect of both income tax and capital gains tax. It is important to consider that domicile is much more permanent than residency. Domicile can remain in a particular country, even after an individual has left the country. In the UK, domicile will normally be determined based on someone's Father, but this can change if other important factors change, such as the place that the individual considers home, or if they marry and become settled in a different country. Domicile can be broken down into mainly three types:

• domicile of origin
• domicile of dependence
• domicile of choice

Domicile is important in taxation because it will affect the treatment of income tax or capital gains, and will also impact on an individual's estate when considering inheritance tax implications.

Individuals who are UK resident but not UK domiciled need to consider how they wish to be taxed on their foreign income and capital gains. This is a complex area and specialist advice should be sought. MG Group are experts in this field and would be delighted to assist in determining domicile and whether the "remittance basis" applies to your situation.

MG Group are experts in all aspects of inheritance tax planning. It is essential to have a full understanding of the situation before advising in this complex area. We take time to meet with our clients, and to fully understand the current position, as well as plans and wishes for the individuals and families that we act for.

A brief review of areas in which we have recently acted for clients include:

• creating and managing Will Trusts
• Tax planning with Business Property Relief
• advising on the implications of Enterpreneurs' relief where a Trust is involved
• Advising on non resident trusts and the capital gains position

We would be delighted to discuss your situation with you and look forward to hearing from you.

Please contact your usual MG Group contact to discuss further.

MG Group are experienced in dealing with trusts and taxation issues arising from such trusts.

Care needs to taken when dealing with taxation issues around trusts as there are a wide variety of taxation rates that may be applicable. Often tax will be at the trust tax rates (which are currently 37.5% for dividends and 45% for other income.

We assist our clients to fulfill their obligations under self assessment with respect to the filing of tax returns, inluding SA Trust and Estate Returns (SA900) and preparation and submission of income certificates to beneficiaries (forms R185). We will ensure that all filing deadlines are known well in advance and that forms are completed with plenty of time before submission and so that liabilities are known as quickly as possible.

There have been several cases in which the nature of the contractual relationship between the engager and the worker has been challenged. These are often terms "status" cases. In certain cases the parties will wish for the arrangement to be treated as a supplier/customer type relationship - as this will have advantageous tax consequences, but in, for example, an employment tribunal case there will be one party wishing the relationship to be one of employer and employee, and the other will want it to be a contract for services.

We can provide you with advice on arranging your contracts to ensure that your ultimate objectives can be achieved. We advise both workers and also engagers in achieving their desired outcome.

Please contact us to see how we can assist you in this complex area.

IR35 is the common term used to cover situations in which an intermediary has been interposed between a worker and an agency/client. In certain situations like this it could be argued that there is really an employer/employee type relationship between the agency/client and the worker, and had it not been for the intermediary company, then the position would have been that of employer/employee. In order to determine if IR35 applies it is necessary to imagine that the intermediary entity (company/partnership) ceases to exist and to imagine a hypothetical contract between the worker and the agency/client.

There have been many tax cases involving looking at IR35 since the legislation came out in 2000. Some cases have been found in favour of the taxpayer and some in favour of HMRC. It is important to be aware of the factors that HMRC consider when determining IR35 status, and it is also very important for accountants and clients to be aware of the factors that would mean that someone is "inside IR35".

In the event that HMRC raise an enquiry into IR35 status, it is very important to assess the contracting situation so that the best possible defence can be put forward. We are part of the Professional Contractors Group (PCG) and therefore have access to the latest trends in this area, and have access to the best possible barristers and specialist advisers in the event that an HMRC enquiry is raised.

Please speak to us regarding your IR35 questions and we will be happy to advice.

Running a payroll can be time consuming and complicated and divert resources from the core activities of your business. With the implementation of Real Time Information, HMRC require information generally on or before the date of payment to the employee. We can help by installing payroll software and training your staff. Outsourcing this activity also helps relieve the pressure and we can offer cost-effective solutions. We are able to provide the complete service, whatever the size or complexity of your business, or simply provide support when needed.

Being the subject of a tax investigation or enquiry by HMRC can be a stressful and worrying experience. We have a wealth of experience in dealing with HMRC investigations, whether they are enquiries into an individual’s Tax Return, more detailed enquiries into a company’s affairs or employer-related investigations into PAYE and P11d compliance. If you are the subject of an investigation, we can provide expert help and support.

For more information, view our Tax investigation service page.