The town where three rivers meet
Rickmansworth takes its place in the name of its district. The Colne, the Chess and the Gade all meet here, and Three Rivers District Council has its headquarters at Three Rivers House on Northway. The Grand Union Canal runs along the south side of the town, and most of Rickmansworth sits to its north. About 25,000 people live in the town, which includes Batchworth, Mill End and the area around Moor Park, where the old mansion is now a golf clubhouse.
Shopping is concentrated on the High Street, which has an M&S food hall, restaurants, pubs, the post office and the Watersmeet theatre. Basing House at number 46 was once the home of William Penn. The town has good links in every direction. Rickmansworth station is served by both the Metropolitan line and Chiltern Railways trains between London Marylebone and Aylesbury, and junctions 17 and 18 of the M25 fall within the town's boundaries.
Tax planning for Rickmansworth directors
Plenty of people run their own companies from a home office in WD3, and the rail and motorway links make that easy. For a director who owns the business, the biggest regular decision is how to take money out of it, and it is the question that comes up most when people look for accountants in Rickmansworth.
Salary, dividends and employer pension contributions are each taxed differently. The dividend allowance is £500, corporation tax runs from 19% to 25% depending on profit, and employer National Insurance is 15% above the secondary threshold. We model the options each year so you can see the tax cost of each route before you decide, and we look at whether a spouse or partner who works in the business should be paid too.
A director who borrows from the company needs to be careful. If a loan is still unpaid nine months after the company year end, the company faces a temporary tax charge on the amount outstanding. We keep the director loan account in view so it does not catch you out.
What we help people in Rickmansworth with
- Salary and dividend planning for directors
- Director loan account reviews
- Inheritance tax planning and gift records
- Capital gains tax on second homes and lets
- Limited company accounts and corporation tax
- VAT returns through Making Tax Digital software
- Bookkeeping and payroll for High Street firms
- Self assessment returns for retirees and landlords
Accountants in Rickmansworth for estates and property
If your Rickmansworth or Moor Park home makes up most of what you own, inheritance tax deserves some thought. It is charged at 40% on the part of an estate above the available allowances. Each person has a nil rate band of £325,000, plus a residence nil rate band of up to £175,000 when a home passes to children or grandchildren. That extra band starts to taper away once an estate is worth more than £2 million.
Gifts made more than seven years before death usually fall outside the estate, and some smaller gifts are exempt straight away, such as the £3,000 annual exemption. We help you put the numbers together, think through gifts, and work alongside your solicitor on wills and trusts.
Selling a second home or a let property in WD3 raises capital gains tax. The rates are 18% and 24%, with a £3,000 annual exempt amount, and the gain on a UK home must be reported and paid within 60 days of completion.
Businesses on the High Street and around Batchworth
Most businesses in town are small, from High Street shops and restaurants to practices working above them. For businesses of any size, the work we do is bookkeeping, VAT, payroll and the annual accounts.
VAT registration is compulsory once taxable turnover passes £90,000 in any rolling 12 months. If you already charge VAT, your returns must go through Making Tax Digital software, normally one month and seven days after the end of each quarter. We file them, check the figures against your bank and keep a clear trail in case HMRC asks questions.
Life around the Aquadrome and the canal
The Rickmansworth Aquadrome is a 41 hectare local nature reserve on the edge of town, with Bury Lake and Batchworth Lake, a cafe, and clubs for water skiing, sailing and kayaking. It has held a Green Flag award every year since 2009. The town also holds the Rickmansworth Festival, a celebration of the canals.
If you run a club, cafe or event business connected to the lakes or the canal, you still need proper books. A club needs accounts its members can trust, and a trading cafe or hire business has the same VAT and payroll rules as any other. We help with both.
How we work with Rickmansworth clients
We do not have an office in Rickmansworth, although we act as accountants in Rickmansworth for local people. Our accountants are based in Watford, and most clients in WD3 send documents online and talk to us by email or video. For bigger conversations, such as estate planning or selling a business, we arrange a meeting. Every client starts with a free review and a fixed fee agreed in writing before any work begins.
Who we work with here
- Owner directors running companies from Rickmansworth
- Families in Moor Park, Batchworth and Mill End planning their estates
- Landlords selling or letting property in WD3
- Shops, restaurants and practices on the High Street
- Clubs and small businesses linked to the Aquadrome and canal
Common questions
Is your office in Rickmansworth?
No. Our accountants are based in Watford, and we work with Rickmansworth clients online and by email. We arrange meetings when they are needed.
What is the best way to pay myself from my own company?
There is no single answer, as it depends on your profits, other income and plans. Most owner directors use a mix of a small salary, dividends and pension contributions. We work out the figures for your situation each year.
Our house in Moor Park is worth over £2 million. Do we lose the residence allowance?
The residence nil rate band starts to taper away once an estate is worth more than £2 million. Planning during your lifetime may help, and we can show you how the figures work for your estate.
I borrowed money from my company. Is that a problem?
It can be. If the loan is not repaid within nine months of the company year end, the company pays a temporary tax charge on the amount still owed. We check the loan account and plan repayments.
Which council do Rickmansworth businesses deal with?
Three Rivers District Council, which is based at Three Rivers House in Rickmansworth. Hertfordshire County Council provides county services.
I am retiring and selling a rental flat. When is the tax due?
For a UK residential property, you must report the sale and pay any capital gains tax within 60 days of completion. The gain is also shown on your self assessment return for that year.
How do your fees work?
We agree a fixed fee with you after a free review, before any work starts. We do not publish prices because each client's needs are different.