To give every recruitment agency the best possible start to 2018, we are offering a free tax health check. Not only are these a great way to see if you can save tax, but it is recommended you regularly check your records to ensure they are robust in the event of a challenge from HMRC.
Running a recruitment agency can be difficult and time consuming, which means it is difficult to set aside time to review whether your business is tax efficient. However, carrying out a tax health check every now and then often results in meaningful tax savings.
Just some of the items our checks look at include:
- Business Tax
- Do you have receipts to support your expenses? We will identify any risks and look to ensure your operations are effective and record keeping is accurate. This is essential, especially if your agency ever becomes subject to a HMRC ‘spot check’
- Are you paying yourself in the most efficient way? We will look at your senior management team’s remuneration packages – do you have the correct split of dividends to salary? Should you be investing more in your pension? Etc.
- Are you looking to invest in your company in the future? Sometimes it is more tax efficient to leave profits in a company, rather than extracting them as income. This avoids the double tax charge on profits, which is made by the company and then again as income.
- Capital Allowances
- Are you claiming your maximum entitlement? We recommend you keep a register of your assets (even fixtures within your agency, such as cold-water systems and lifts).
- Is your agency part of a group? If so, you may be able to off-set tax between companies, for example transferring tax losses from a loss-making company.
- Have you developed any internal processes that could be eligible for research and development tax relief?
- Entrepreneur’s Relief
- If you are thinking about selling your business, you want to ensure you qualify for entrepreneur’s relief. This will entitle you to 10% capital gains on the first £10million of lifetime gains (main rate of capital gains is 28%)
- Personal Tax
- We cover this above, but will look in depth to see if you are paying yourself in the most tax efficient way
As specialist accountants in the recruitment sector, we are giving agencies based in London and Essex the opportunity to meet with our Tax Partner, Neill Staff for a free, no obligation, tax health check.
To book your free tax health check, contact Neill before 31 December 2017 at firstname.lastname@example.org.