Corporate tax management is vital to the financial health of the country. It ensures that companies pay the right amount of tax based on the applicable. Tax laws avoid certain tax avoidance strategies that lead to excessive tax payment. Without correct corporate tax management. A company could find itself facing serious tax penalties, fines and even being taken out of business. In fact, a large number of large companies have found. They have incurred too much tax debt in recent years. This article will highlight some of the main considerations. You should make when looking for a professional corporate tax advisor.
Most Important Criteria for Selecting a Corporate Tax Management Company
The most important criteria for selecting a corporate tax management company. The qualifications of the advisors on board and the knowledge and experience that they have in the area of corporate taxation. It may be obvious, but the role of the advisor is to ensure. The corporate tax liabilities of the client are lowered as much as possible. The larger and more reputable tax advisors will usually have an in depth knowledge of all UK tax law as well as expert knowledge of the UK corporate governance framework. They will also be familiar with the benefits and options available to businesses in terms of UK pension structures and asset protection.
Strong Knowledge of the Economic Policies
Good tax management advisors will also have strong knowledge of the economic policies of the Government of the UK and the implications for businesses operating within the jurisdiction. A good example of this would be the recent clampdown on assisted living schemes. An advisor with a strong knowledge of UK fiscal policy will be able to identify ways in which a company can work around these measures. If a client perceives that their tax liabilities will be increased due to lack of effective corporate governance, then it may be time to consider alternative solutions. Such solutions may include setting up a special purpose entity or a nominee service.
Importance for Tax Management Advisors
The other key area of importance for tax management advisors is to ensure that all expenses are declared and all taxes are paid in full and on time. This extends across the whole of the supply chain including manufacturing, production and distribution, which all need to take their fair share of the tax pie. A good advisor will also be familiar with all the various types of rebates, incentives schemes that a business can use to reduce its corporate taxes. These could include incentive compensation, depreciation acceleration, non-qualifying interests and UK shipbuilding rules. All of these areas are important areas of tax planning in order to maximise a company’s potential to profit from tax-relief policies.
Second Area of Focus
The second area of focus for any long-term tax management advisor is to minimise the corporation’s risk of liability to government taxation. This includes ensuring that directors and shareholders are aware of and meet all requirements and regulations set out by the UK taxation regime. All policies and actions should be designed to minimise the risk of liability and ensure that the business meets all of its obligations to authorities and its customers. This could include ensuring that a business’s directors and shareholders have the right legal and accounting advice. That there are adequate and reliable internal control systems in place.
Should have a Sound Knowledge of Financial Matters
Corporate tax management advisors should have a sound knowledge of financial matters. As well as being capable of providing a clear and concise analysis and explanation of relevant issues. They must be able to provide support during any enquiry. This may come in the form of an initial consultation. Which will help them to better understand your needs and circumstances. During this time they will be able to develop a working document that addresses your specific issues and concerns. As well as developing proposals that are in line with the Government’s policy objectives and guidance. From this document they can then develop a work program that focuses on fulfilling your short and long-term tax management needs. While at the same time providing the best value for money and delivering the best results. In most cases they will be able to deliver their recommendations in one or two weeks.
Should also have in Place a Strong Support Structure
As well as being involved in every stage of the tax administration process. Corporate tax advisors should also have in place a strong support structure to ensure. All recommendations are acted upon and delivered. This support structure could consist of in-house staff. An in-house tax policy team who are available throughout the year for advice and support. They should also have the necessary in-house accountants. Other personnel who can deal with any queries and problems. That may arise as a result of the preparation of your accounts. They should also have arrangements in place to handle any changes to the system that may affect the way your company operates. Include any unexpected changes that could impact the way you do things. Any changes to legislation that could impact on your business model.
Corporate tax management advisors are an extremely valuable tool for any business. As they can use their knowledge and expertise to help you reduce your tax liabilities. However, as with all matters of finance and business. You do need to be careful where you shop for your services. Make sure that you are dealing with a reputable company. Who has a good reputation for delivering good value for money. You should also make sure. You have adequate arrangements in place to deal with any issues and questions. That may arise throughout the year, so that your tax management is not disrupted.