At Southgate & Co LLP we understand that businesses face unique financial challenges and opportunities. Our comprehensive range of tax and accountancy services for businesses is designed to address these needs with precision and expertise. From incorporation and tax planning to strategic business advice, our dedicated team is here to support your business at every stage of its journey. With a focus on delivering proactive, tailored solutions, we help businesses of all sizes thrive in today’s competitive landscape. Explore our services and discover how we can empower your business to achieve its full potential.
Compliance Services
Sole Traders
At Southgate & Co, we offer comprehensive support to sole traders, aiding them in managing their financial affairs efficiently. Our services encompass preparing annual accounts and computing taxable income for inclusion in self-assessment tax returns.
We collaborate closely with you to ensure that the records you maintain are tailored to the scale of your business, allowing you to concentrate on core business activities. Leveraging our extensive experience in practice and your financial information, we assist you in comprehending your business performance and its impact on your overarching business goals.
As your business grows, our skilled team provides invaluable guidance on various financial decisions, such as purchasing vehicles, tools, and equipment. We delve into the tax implications of these choices, empowering you to make well-informed decisions that align with both your business and personal objectives.
Company Accounts & Corporation Tax Returns
Our team of Chartered accountants are dedicated to assisting you with all aspects of your company’s financial management. From day-to-day transactions to record-keeping and the production of year-end accounts, we provide comprehensive support to ensure your business operates smoothly.
We understand that every business is unique, which is why we work with both traditional paper-based records and modern software solutions. This approach ensures that you remain compliant with regulations while gaining a clear understanding of your business finances.
We use this information to calculate the company’s corporation tax liability. Drawing upon our extensive knowledge and experience, we generate tailored suggestions aimed at reducing future tax liabilities, thereby maximising your company’s financial efficiency.
It’s important to note changes in tax rules, such as the adjustment in Corporation Tax rates effective since April 6th, 2023. Companies are now subject to a 25% Corporation Tax rate on profits exceeding £250,000, with a reduced rate of 19% applicable to small businesses declaring profits under £50,000. Prior to this date, the main rate of Corporation Tax was 19%. This underscores the importance of proactive tax planning and strategic financial management in creating tailored solutions for our clients.
Partnership Accounts
& Tax Returns
Partnership accounts are produced for both Partnerships and Limited Liability Partnerships (LLPs) to calculate the partnerships profits in their accounting period. The profit (or loss) is then allocated based on the individual agreements between the partners.
These agreements can be fixed, or may change over time, highlighting the importance of ensuring that financial reports accurately reflect both the calculation of partners’ income and the determination of their tax liability.
It is required that the partnership files a tax return with HMRC by the 31st January following the end of the tax year. This return shows the accounting profits along with any adjustments for tax purposes in calculating the taxable profits for the period.
Partners are considered self-employed and are required to declare their share of the partnership income on their self-assessment tax return, along with any other sources of income.
Software & Company Secretarial Services
Where suitable, we can recommend software and systems to assist you in the running of your business. We have experience working with paper records, excel based records and modern cloud based solutions.
We work with our clients to find solutions which fit with their requirements, taking into account their structure and size, and ensure that changes in systems are made at the appropriate time to minimise duplications and errors.
Southgate & Co LLP is a Xero Partner, with experience of Sage, Free Agent and Quick books.
We offer company secretarial support to ensure that confirmation statements are filed on time, and to implement changes in share numbers, ownership and structure. Commonly, this involves implementing our tax advisory services.
Advisory Services
Incorporation &
Valuations
Incorporation marks a strategic transition, transforming your existing business into a limited company or limited liability partnership (LLP). This pivotal step is often taken to shield your personal assets, such as your home, from the risks associated with your business. By becoming its own legal entity, a limited business offers a protective barrier, ensuring your personal finances remain separate.
This can also have tax benefits where the business is producing more profits than your lifestyle requires.
Using our knowledge of your business’ circumstances, objective and value, we offer strategic advice on the ability of tax reliefs, and access the suitability of incorporating your business to empower you to make fully informed decisions.
We do this by explaining the differing tax rates between incorporated and unincorporated businesses in terms you understand. We clearly set out the benefit of salary, dividends and/or retaining funds in your company to help fund its growth and development to achieve your business goals.
Our advisory team includes Chartered Tax Advisors with experience advising on the potential benefits of incorporating existing sole traders and partnerships into limited companies and/or Limited Liability Partnerships (LLPs).
Our process typically begins with a complimentary consultation where we delve into the business owner’s objectives and current position. This initial step allows us to provide accurate estimates of our fees and timeframe, ensuring transparency in our partnership.
We report on the business’ value, which can be used to calculate the Capital Gains Tax liability on incorporation. Our valuations can also be crucial when considering Mergers, acquisitions or the sale of your business.
Remuneration planning
Our remuneration planning service is tailored specifically for owner-managed businesses. We collaborate closely with you to gain insights into your income requirements, devising strategies to withdraw funds tax-efficiently by leveraging your available tax allowances and income sources, thereby maximizing both your and the business’s funds.
Our team is dedicated to achieving the optimal balance between your personal and corporate tax liabilities. By evaluating your individual circumstances – such as martial status, children, and long-term objectives – we ensure that your tax strategy aligns seamlessly with your unique goals.
Taking a holistic approach, we integrate your personal aspirations into our planning process, enabling us to craft a comprehensive strategy that not only fulfills your tax obligations but also supports your individual aspirations and long-term financial objectives.