Independent consultants

Even a one-person consultancy business faces myriad compliance requirements from HMRC and Companies House.

Most businesses know about the burden of many reporting requirements such as payroll, VAT and Corporation Tax etc., though they are generally less sure about whether, when and how to register for, report and pay taxes and fees. Additionally, there are HMRC and Companies House filings that consultants are not aware of, the ignorance of which can lead to penalties and enquiries.

The small company compliance environment is very familiar to us at Tayabali & White and we can support you as much as you need, allowing you more time to work in your chosen field.

As well as coping with the compliance environment, the prospect of having to face an HMRC is a real concern for consultants. We work with our business clients to help ensure their tax affairs can stand up to scrutiny, with particular consideration to IR35 issues. We also make sure returns are well-presented and unusual transactions clearly explained to reduce the chance of an HMRC enquiry.

We enjoy an excellent relationship with HMRC, which means that on the rare occasions when an enquiry is made we are able to deal with it quickly and successfully.

Consultants practice either through a limited company, a partnership or self-employed alone. To determine the best route, there are many considerations that we discuss with our consultant clients and this involves getting to know them and their circumstances well.

Factors to consider include who your clients will be, how much you expect to earn, what other income you have, how much income you require, whether your spouse can be involved in the business – and many more.

Furthermore, this is an area where tax legislation changes frequently and it is vital to revisit your business structure with us regularly. As always, the important thing is to take time to plan and to rely on our expertise to help you.

All consultants want to understand what expenses they are allowed to claim for and how, they want to know how the can obtain tax relief for use of their car, they want to be sure that they using the best VAT scheme – and many more things besides.

We take time with all our new consultant clients to advise them on all aspects of the business that are touched by tax. The important thing then is to revisit this regularly to make sure that you are compliant, but critically to ensure that you are not missing out on tax reliefs.

As ever, it is about taking time to understand your requirements and give you tailored advice.

All consultants want to know how to reward themselves financially in the most tax efficient way possible. No two consultants’ situations are quite the same and each requires its own tailor-made strategy, which may vary year on year depending on the results of the business, personal cash requirements and the presence of other investors.
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In addition, tax rules and tax rates change frequently, which means that any remuneration strategy must be kept under regular review.

As experienced specialist tax advisers to individuals and small businesses we can advise not only on the personal and business tax opportunities open to you, but also practical considerations, such as cash flow requirements and family members involved in the business.

What drove you set up on your own? What vision do you have for your business five, ten even twenty years’ time? We believe that all consultants should be able to answer these questions and we help them to set a strategy to help ensure that their vision is realized.

It is critical then to revisit annually all the different aspects of your business (such as pricing, risk, best practice) and also to look ahead.

This is such an important exercise that we, as your trusted advisers, want to help you with it and are perfectly placed to advise both practically and technically.

When your consultancy ceases, either on retirement or a change in direction in your professional career, there will be numerous tax and practical issues to consider.

By talking to you regularly over the years about your business strategy and personal wealth, we will be able to you plan ahead for your business exit to make sure that it is done as efficiently as possible.