Entrepreneurial Tax Advice

Eager to encourage investment in innovative new businesses, HMRC offers generous tax benefits to entrepreneurs. Our advice will ensure you take full advantage of these opportunities and help you structure for success. 

Derek

Derek Gemmell

Corporate Tax Partner & Head of Innovations Tax

Contact Derek Meet the team

Who we can help

  • MALL RETAIL SHOPS
  • MULTI-BRANCH RETAIL BUSINESSES
  • HOTELS
  • ENTERTAINMENT VENUES
  • CHAINS OF PUBS & RESTAURANTS

How we can help

  • AUDIT & TAX COMPLIANCE PROCESS
  • TIME RECORDING SYSTEMS
  • PAYROLL PROCESSES
  • FINANCIAL PROJECTIONS
  • TAX ALLOWANCES

INVEST WITH CONFIDENCE

Talk to our specialist team

There are several tax benefits available to entrepreneurs, but knowing whether you fulfil all of HMRC’s complex requirements means accessing detailed expertise. Our specialist entrepreneurial team focuses on ensuring entrepreneurs and High Net Worth individuals achieve greater returns by providing pragmatic, commercial tax advice. 

Our specialist team differentiate themselves in the market by producing innovative investment structures that work for our entrepreneurial clients throughout the life of the investment and beyond. They  will share their well-proven expertise, which includes: 

  • Tax Incentives for Entrepreneurs 
  • Tax Efficient Structuring 
  • Employee Incentives 
  • Pre-exit Wealth and Estate planning. 

TAX INCENTIVES FOR ENTREPRENEURS’

Entrepreneurs’ Relief (ER) is a particularly attractive tax relief. Entrepreneurs’ Relief reduces the amount of Capital Gains Tax (CGT) on a disposal of qualifying business assets on or after 6 April 2008, allowing relief up to a maximum of £10m. However, there are strict conditions regarding who can qualify for ER and when claims can be made.  

ER is generally aimed at individuals and is not available for companies, and the qualifying period is two years, up until when you disposed of the asset or an interest in the asset, or when the business ceased. The assets themselves must qualify too. Given the complexity of all the stipulations, we recommend you talk to us before making any decisions. 

Get in touch for advice on entrepreneurs’ tax incentives 

  • The secondment support provided by AAB helped us streamline our accounting processes and enabled us to produce automated management reports from our accounting software. We have seen real benefits in the quality and timeliness of our information.

    Charlie Parker, John Lawrie Group

  • Routine monthly processing has been faultless and my dealings with the payroll team over the year end have been excellent. A breath of fresh air to be dealing with such an excellent service.

    James Thom, Scotia Instrumentation

  • AAB help to relieve the burden of tax compliance and can be relied upon to deliver a high quality computation in an efficient manner. They can always be relied on to keep us up to date with changes in the legislation that will affect us.

    Mike Leahy, Scientific Drilling International

  • The audit process is efficient and well managed, with the AAB team putting in extra time and effort as required. The team provide regular updates throughout the audit, and always respond to ad-hoc questions.

    Ross Wallace, STATS UK. Ltd

TAX EFFICIENT STRUCTURING

Ensuring your investment is structured correctly will give the most favourable tax results. Government backed incentives such as Seed Enterprise Investment Relief (SEIS) and Enterprise Investment Relief (EIS) can deliver generous tax breaks. 

Seed EIS, designed for early-stage companies, offers an attractive 50% income tax relief, but the risks of investing in an embryonic company should be considered. EIS is aimed at established companies and people with more to invest. Investors benefit from a 30% income tax reduction based on the amount invested, any gains on disposal of qualifying EIS shares are free of capital gains tax and there’s loss relief if an EIS investment fails.  

The qualifying conditions for both SEIS and EIS are notoriously complex, but we can advise on whether an investment opportunity meets those conditions and that you’ll benefit from these valuable tax reliefs.

Speak to us about tax efficient structuring

EMPLOYEE INCENTIVES

A successful investment requires a motivated management team; implementing the most appropriate employee share incentive plan is fundamental to achieving this. 

Enterprise Management Incentive (EMI) share schemes offer tax benefits that are very effective at incentivising employees. They are designed for SMEs, who also enjoy tax benefits. Employees are granted an option (or right) to acquire shares in the future, at today’s value. They’ll only pay income tax at exercise on the value of the shares when they were awarded, and the shares will be subject to a lower rate of CGT. of just 10%. Subject to certain conditions, there’s also no tax or NIC cost for employers, and they can benefit from corporation tax relief on employees’ sales of shares.

Get advice on about employee incentives

PRE-EXIT WEALTH & ESTATE PLANNING

With the advice of our specialist advisors, planning for an exit can ensure you minimise your exposure to Capital Gains Tax (CGT) and effectively mitigate Inheritance Tax (IHT). 

If you’re considering making a risk-based investment in a trading company, we’ll determine the optimal structure and tax reliefs available. For example, we’ll ensure the availability of Entrepreneurs’ Relief (ER), so that only 10% CGT is paid on any gains when the company is sold. We’ll also advise you on the most tax-efficient way to invest those proceeds, in areas such as pensions. 

Minimising IHT is best achieved by planning before the sale of the business, rather than after it. We’ll advise on this, and other aspects such as trusts, to ensure you realise the greatest possible value both for you and, if applicable, for  future generations.

Planning to exit? Get in touch

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  2. Blog1st Oct 2024

    Overview of Employee Share Scheme options for property businesses

    Employee Share Scheme Options for Property Businesses

    Share Incentives and Property Businesses In our experience assisting property and construction businesses, one recurrent and challenging question is how to retain top talent through equity incentives. While various tax-efficient share schemes exist, such as the Enterprise Management Incentive (EMI),…

    By Kate Naylor

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  3. Blog7th Sep 2024

    Ross Parsler, author of blog about R&D tax relief claims

    R&D Tax Relief Claim Notifications- What Do You Need To Know?

    For accounting periods commencing on or after 1 April 2023, there is a new notification obligation to be considered by all companies seeking to claim R&D tax reliefs. The rules are intended to catch new R&D tax relief claimant companies.…

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  4. Blog26th Mar 2024

    Derek Gemmell, Head of Innovations Tax and author of blog about R&D tax relief procedures

    R&D Tax Relief Procedures: HMRC’s Latest Notification Requirement

    In today’s fast-paced business landscape, where staying ahead often means innovating and adapting to change, research and development (R&D) tax credits have emerged as a key tool for businesses, especially for small and medium-sized enterprises (SMEs).  As an R&D tax…

    By Derek Gemmell

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