Corporate Tax Services – unravelling the legislative framework

In order to operate successfully it is vital that businesses manage their tax liabilities and financial reporting obligations effectively. Every business, regardless of size, industry or sector, must adhere to specific financial guidelines and regulations in addition to relevant legislation. Failure to do so can result in significant penalties as well as the potential closure of the company.

The legislative framework which governs corporate tax is particularly complicated and can be a burden to companies who are not equipped to manage their tax liability appropriately. Whilst having an in-house department to deal with the company’s liabilities can increase costs, in many instances it simply isn’t necessary. By outsourcing and relying on external specialist tax advice companies can limit their costs but still ensure they are complying with all relevant legislation. In addition to advising companies of the relevant law and what procedures they must follow, corporate tax specialists can also assist in preparing accounts, managing the company’s relationship with HMRC and ensuring any queries or issues are dealt with effectively and efficiently.

Although tax liability and compliance can place a significant burden on companies, effective tax planning can increase profitability and ensure companies reach their objectives. By engaging corporate tax specialists and working with them to devise a strategic plan, the company will reduce costs and tax liabilities and therefore increase profitability. Strategic planning can be devised independently or as part of a larger business strategy.  By obtaining advice prior to implementing changes to the business, companies can ensure they are making alterations at the right time and taking advantage of any tax relief available to them. Any changes to the business such as mergers, expansions or even downsizing can carry significant implications so companies should seek professional advice before carrying out such changes to ensure they do so efficiently.

Whilst the burden of tax legislation impacts upon UK based businesses operating solely within the UK, the tax liability of businesses operating internationally is even more complex. For companies operating overseas or considering expanding outside of the UK, their tax liability will vary depending upon which jurisdictions they will be operating in. Similarly, businesses based outside of the UK but operating within the UK could face similar complications. By obtaining specialist advice from lawyers experienced in dealing with corporate tax issues across many jurisdictions, companies can ensure they are operating legally, complying with relevant guidelines and reducing their liability where possible.

The unavoidable nature of tax liability means that all businesses must satisfy revenue legislation and fulfil the necessary obligations. Corporate tax specialists can ensure businesses are aware of their responsibilities and help the company to carry out any necessary tasks such as completing and filing their yearly accounts. In addition to devising compliance strategies, corporate tax experts can provide detailed strategies that operate in conjunction with overall business plans and business strategies. As well as providing general advice, corporate tax lawyers can provide information and advice based on specific business requirements with reference to industry specific legislation and regulations. By operating strategically, rather than simply adhering to the minimum compliance requirements businesses can ensure they are reducing their tax liability, operating in accordance with the law and using their corporate tax strategy to achieve their overall business objectives.

Baker Tilly is an independent firm of chartered accountants and business advisers, positioned as one of the leading mid-tier accountancy firms. Baker Tilly specialises in Corporate Tax services.

For more information, please visit: