Any self-employed person or business is likely to benefit financially from instructing a tax lawyer to assist with ensuring that they do not pay too much tax, and to structure the business accordingly. Tax issues affect the running of the business and also the personal financial affairs of those running the business.
A sole trader will be taxed through income tax on their income profits and therefore should be the easiest type of business to calculate tax on. Although seemingly straightforward, a sole trader could benefit from the assistance of a tax lawyer to work out what they may have bought and paid tax on, and what could be tax deductable against their income tax. A partnership will benefit from a similar level of tax advice from a tax lawyer as individual partners will be subject to income tax, though corporate partners will also be subject to corporation tax.
A company’s income profits and capital profits are charged to corporation tax but there a variety of reliefs available to companies which mean that any company will benefit from tax advice. Companies should plan any major purchases, sales, share distribution or dividend allocation with tax in mind as failure to do so could lose a company millions of pounds. Although the range of tax reliefs is smaller for companies than it is for individuals, it does not make them less complex and the tax lawyer will need to consider profit forecasts and current cash-flow to properly apply available reliefs and maximise the benefit for the company.
If you would like to obtain legal advice on tax law, Caven can put you in touch with a local specialist tax lawyer free of charge. So, if you have any questions or would like our help in finding local tax lawyers please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 02/03/2010