Filing corporation tax returns and computations has cost implications, often both internal and external, which are unavoidable given the compulsion of filing. True Partners Consulting (UK) LLP aim to make that process not just as efficient and cost effective as possible but integral to a value added way of working with business.

Why TPC?

• The conflicts which may arise with the audit relationship are avoided.
• We base our approach on clear processes, based on communication and planning with yourself so internal and external deadlines are met.
• We can help integrate the accounts reporting, compliance and the planning processes.
• We aim to provide a superior service and competitive value.
• Our approach is flexible as required and starts with your needs and how best to work with you.

Let us explain more about the new challenges – and opportunities – facing companies and explain our approach.

Compliance in a changing world

Changes come from not just new tax rules – and the revised approach of HMRC – but how businesses should best respond to these.

The major change in the tax penalty regime makes rigour and care in the compliance process more important than ever before so as to avoid penalties based on any tax adjustments HMRC obtain. New sanctions on later filing and late payments are under consideration.

HMRC’s trend is towards more indepth enquiries with a concentration on risk areas likely to increase the tax take. These include cross border tax issues – for example many more Inspectors are being deployed to look at transfer pricing. HMRC are being more investigative, seeking evidence of what has been happening. They are also taking a stronger stand on avoidance – though their view of what constitutes avoidance is often contentious. Businesses, while needing to be able to predict HMRC’s approach, have to be able to contest it where appropriate.

Despite certain moves to align tax and accounts, several recent rule changes (eg share based reward) work against that alignment and need vigilance. Rationalisation, such as of the capital allowances code, rarely results in simplification. Such changes effect the approach for collecting data to complete computations and defend tax claims.

For companies which are listed, or with public interests, both they and their auditors, have to show a proper separation of the auditing function from the preparation of the tax figures in their accounts.

On a more positive side there is an increased willingness of HMRC to discuss transactional and uncertain matters on a real time basis though companies will need to think carefully about when to have such discussions and how best to frame their approaches.

An increase in the number of tax incentives (R&D, energy saving equipment) have given more opportunity to look at savings these incentives may provide alongside the core compliance process.

As perhaps more product based tax planning gets harder to achieve the need increases to plan well ahead on approaches to controlling tax charges –and to do so in a way aligned with commercial objectives.

The TPC approach

While there are common features to a successful compliance strategy the best way to achieve this varies company by company, and over time.
We see genuine discussion of approach so as to define a plan to meet your needs as the basis of delivering this success. You may want us to undertake the whole process so as to free up your time as far as possible, to work in a structured fashion with you- or just be available as the needs arises, or for final reviews. We can accommodate all these approaches.

Where, as will often be the case, your choice is for us to prepare the corporate tax computations using information from your accounts team we will work with you to ensure the means of gathering data is well matched to the nature of your company, preferred ways of working and deadlines.

As part of the planning process we will help prepare a timetable for each critical step, through basic work, accounts provisions, payments and finalisation.

As required we can prepare, or assist you in preparing, tax figures for accounts purposes or for use in your reporting packs and audit purposes. We will work with you to ensure your needs are met on time.

Subject to your deadlines and priorities, we will help ensure that the tax computations are either substantially complete by provisioning (tax accrual) stage or let you know promptly what other information is needed and agree how best it is obtained.

We will welcome the opportunity to discuss with you for example:

• Areas of risk or uncertainty for tax
• Taxation of specific transactions
• Approaches to further enhance compliance efficiencies

It can really help to discuss substantial transactions before they take place – planning can then help reduce tax costs or, in certain cases, clarification can be sought from HMRC.

As your corporate tax computations reach completion, we aim to discuss these with you and explore any further tax planning opportunities which may arise.

We recognise a “one size fits all” approach makes no sense.

We will work with you as needed in ensuring, for an example that any bulk of simple corporate tax computations are completed cost efficiently. Equally, that complex transactions or less usual scenarios are looked at in a way that gives clarity as to the best approach.

Given the continuing changes in HMRC’s approaches and powers we will seek to consider how particular matters are best dealt with or disclosed to reduce enquiries or exposures.

It remains a fact of business life that HMRC enquiries may follow. Our team will help you decide how best to deal with those enquiries and can act as your representative without the constraints of auditor relationship. Such work involves a range of technical skills and practical experience of dealing with HMRC. Our team embraces these skills and includes a former Inspector of Taxes as well as qualified tax accountants.

INDEPENDENCE, GENUINE VALUE, DELIVERY TO YOUR NEEDS, SUPERIOR TECHNICAL SERVICE. These are key to the TPC client approach and we aim to demonstrate these qualities in making a difference to compliance, as well as advisory, services.

For more information contact:
Abbas Sadak