Complex and high-net-worth personal tax compliance
Compliance with tax rules and regulations has always been important – that importance has only increased in recent years. Self-assessment places the onus on the taxpayer and the consequences for errors and inaccuracies can be severe.
There are fixed and tax-based penalties that can apply for late filing, inaccuracies in information filed, etc. In addition, where offshore assets are involved, in certain circumstances HMRC can go back and assess tax for tax years further back than used to be the case.
Furthermore, HMRC’s one-to-many approach (colloquially referred to as ‘nudge letters’), where HMRC write to various taxpayers that they feel might have made specific mistakes within their tax returns or omitted income or gains from their returns, has only intensified in 2022.
There are, therefore, more reasons than ever why high-net-worth and ultra-high-net-worth taxpayers need specialist assistance when preparing their tax returns. We are uniquely placed to provide this service along with other legal and tax services that our private clients might need.
How do we help our clients?
Our tax compliance services include:
- Self-assessment tax return preparation for high-net-worth and ultra-high-net-worth individuals. As part of the tax return preparation process, we will consider whether any action would be advisable to improve our clients’ tax positions going forward
- Self-assessment tax return preparation for trusts and estates with connections to our clients
- Self-assessment corporation tax return preparation for family investment companies connected to our clients
- Charity tax advice both for donors and for the charity (such as organising tax-efficient events and the Gift Relief reclaim process)
- International taxation advice with respect to the operation of double tax treaties and unilateral relief and, where necessary, making the appropriate relief claims for clients
- Trust Registration Service (TRS) reporting
- Inheritance tax compliance work
- UK property compliance work:
- Annual Tax on Enveloped Dwellings (ATED) where a UK property is held directly by a company
- Capital Gains Tax (CGT) reporting where UK residents dispose of UK residential property
- Non-resident Capital Gains Tax (NRCGT) on property disposals
- Compliance services with respect to non-UK resident trusts:
- Ongoing compliance for trusts within UK self-assessment (for example, where they receive UK property income)
- Computing relevant income pools, offshore income pools and capital gains tax pools
Engaging with HMRC on behalf of clients
Our services include:
- Regularising their position where a client has tax irregularities to disclose to HMRC. This may be through the Worldwide Disclosure Facility, the Digital Disclosure Service or otherwise.
- Acting for the taxpayer with respect to HMRC enquiry work, HMRC discovery assessments, and more serious HMRC investigations into a client’s tax affairs.
Preparing for Making Tax Digital
Clients will be impacted by Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA). It was to come in from April 2024 and target the self-employed and landlords with income over £10,000. However, on 19 December 2022 it was announced, that there would be a later and more gradual implementation This will be as follows:
- From April 2026 for self-employed individuals and landlords with income over £50,000.
- From April 2027 for self-employed individuals and landlords with income over £30,000.
- Prior to any further extension the needs of smaller businesses will be reviewed and consulted on.
MTD for ITSA was to come in for general partnerships from April 2025. This has been postponed. Whilst there is a commitment to introducing MTD for ITSA to general partnerships no date is given (just that it will be later than April 2025.
We will continue to monitor the situation carefully and keep our client base informed of the obligations they will face because of MTD for ITSA. Whilst the quarterly reporting is delayed until April 2026 at the earliest it will be important that taxpayers who will come into the regime from then have system for digital record keeping in place before hand. This can either be delegated to us or we can assist our clients by advising on what is required.
Who do we help?
Our focus is on high-net-worth and ultra-high-net-worth individuals. We have a diverse client base including UK and international clients, entrepreneurs, and clients with inherited wealth. We are delighted to look after entire families and, where there are similar issues, our pricing will reflect any economies of scale.
We understand that where our clients have family trusts, charities and/ or family investment companies they will want us to look after these too and we can provide compliance services as required.
