Case Studies

Nature of Business:  Wholesaler and distributor

Issue:

In 2004, the business was struggling to trade profitably and cashflow was very tight.  Long hours were being spent by directors on keeping things afloat and there was little time to spend on marketing and developing the business.  Staff problems took up valuable time.  Out of date practices from generation 1 were stifling the business and there was little help and direction from their accountants.

How we helped:

We introduced quarterly review meetings to help the directors focus on the key drivers for profit and cashflow and to ensure accurate financials are being monitored.

Result:

Since 2004, annual turnover has increased by 228% to nearly £3M and net profits have increased by 373%.

Nature of Business:  Air conditioning engineers

Issue:

On-going tax investigation ,  which the client had been trying to deal with themselves.

How we helped:

We clarified the points under dispute.  Stated the case in regard to each issue and defended the client’s claims rigorously.

Result:

HMRC agreed the items under dispute and tax, interest and penalties of tens of thousands of pounds was avoided.

A tax refund of over £5000 was secured and our professional fees were covered under our tax investigation protection plan, so our client paid nothing.

Nature of Business : Nursing home with > 30 rooms

Issue:

Securing income tax refund by claiming relief for qualifying “plant” integral to the property purchased 19 years previously.

How we helped:

Working with expert partners, who specialise in building services and engineering, we helped the client to maximise his claims to reduce taxable profits.

Result:

We agreed qualifying expenditure with HMRC in excess of £288,000 which helped us to secure immediate tax refunds of more than £45,000 for our client.   In addition, the claims have sheltered and will shelter profits of more than £176K from tax, saving the client a further £70,000 in tax.

Nature of Business:  Property/Barn conversions

Issue:

VAT registration and recovery of VAT on costs in a mixed supply (complex) business.

How we helped:

We identified the possibility of back-dating VAT registration and of agreeing with HMRC a special method for calculating recoverable input VAT.

Result: 

We secured VAT-registration and agreement with HMRC of our method of input tax recovery.  On the client’s first VAT return a full refund of input VAT incurred on property conversion costs was secured in excess of £13,000.

Nature of business: Web design and digital marketing agency

Number of employees:  21

Issue: 

Client was keen to grow and develop the business and wanted an accountant to work pro-actively with them to help do this.

How we helped/Results:

The client came to us having stuggled previously to find the right accountancy partner.

Since the beginning of 2009 (when we were appointed) the turnover of the business has grown by 79% and staff numbers have tripled.

The directors have worked hard to develop the various strands of the business and their offering in those areas.  They have identified and focussed on the profitable services, so that pre-tax profits in 2012 were up by 28% compared to 2009.  Further, significant increases in profit will be achieved as the business has secured its foundations on which to grow good turnover.

The directors have achieved these results by their own exceptional efforts and hard work.  We can take only a little credit for instigating a schedule of regular four-monthly meetings at which the directors work ON the business instead of IN it, introducing, discussing, reviewing and following up on business and financial issues.  We would also take some credit for helping the directors to maximise retained profits and cash after tax, to help their investment plans.

Nature of Business :  Hotel (60 employees)

Issue:

Financing significant investment in property and development of facilities in the hotel.

How we helped:

Working with expert partners, who specialise in building services and engineering, we helped the client to secure maximum claims to reduce tax on trading profits.

Result:

Secured immediate tax relief on qualifying expenditure effectively reimbursing nearly 30% of the expenditure.

Nature of Business:  Telecoms Training and Consultancy

Issue:

The clients were not sure if their business structure was the best for them commercially and tax-wise.

How we helped:

We discussed and explained their options and helped the client to transfer their business to a limited company.  Also, when HMRC disputed the high valuation of the business, we were on hand to help.

Result:

We were able to argue the case with HMRC and agree a valuation which they and our client were happy with.  This meant our client had the best outcome in terms of tax-efficiency and peace of mind.

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