CLIENT CASE STUDIES
A New Set of Eyes……
Our client’s, a leading national surveying company had been with the same 12 partner firm of accountants for many years, but the Directors did not feel that they were getting any new advice. They approached us and after reviewing their tax situation we immediately spotted tax saving opportunities. On the basis of this we were appointed as the company’s accountants and tax advisers. In addition to the substantial tax savings identified, the company also saved money by paying considerably reduced accountants’ fees.
Dealing with the Tax Authorities…..
We were asked by a firm of designers to represent them in dealing with a tax investigation by HM Revenue and Customs (HMRC) in to the firm’s tax affairs. The investigation arose following enquiries by HMRC into a ‘tax saving scheme’ entered into by the firm on the advice of their previous accountants. The scheme was flawed with potentially, very damaging financial consequences for the firm and its owners. Following our detailed and protracted representations to HMRC on their behalf, we were able to negotiate a settlement which meant that the firm avoided paying a further potential sum in excess of £100,000 in additional tax and penalty charges.
A Piece of Lateral Thinking…..
The owner of a medical laboratory suffered ongoing cash flow problems, due to very difficult trading conditions. Eventually he reached the point where he ran out of money, could not pay his tax liability and was understandably anxious about the future of the business. We reviewed his tax situation and recommended a simple tax manoeuvre that would involve him in no time or effort, but that would result in tax savings of several thousand pounds. He heeded our advice, secured a lower tax liability and following a restructuring of the business, in line with our further advice; the business grew from strength to strength.
Building a Better Business….
A sole trader worked as a general builder with a large workforce, comprising employees and subcontractors. His business was very profitable but he was concerned at the high level of his tax bills and also the extent of the accounting controls being exercised in his business. He approached us for help and following a review of his tax affairs and accounting procedures, we assisted with an immediate restructuring of the way in which he operated. Consequently, he saved thousands of pounds in tax and gained a renewed confidence in the accounting controls of his business.
Supporting Our Clients….
A company operated several retail sales outlets in the East Midlands. Staffing problems at the company meant that its accounts department was in some disarray, resulting in extreme delays in the preparation of accounts information. We therefore attended the company’s offices over a three week period to assist in the preparation of the company’s annual accounts. With only hours remaining to file the accounts with Companies House, and so avoiding a hefty financial penalty against the company, one of our employees drove to London and personally delivered the accounts to Companies House, just before the midnight hour.
What’s a Business Worth?....
Our client was in the unfortunate position of having to agree a price for the sale of her late husband’s shares in a very profitable business. Her instincts told her that the offer she received from the other shareholder in the business was low, so she instructed us to value the shares and to negotiate on her behalf with the accountants who supported the original offer price. Following extensive works and negotiations, we were very instrumental in helping our client to secure a price close to our valuation, and in excess of £300,000 of the sum initially offered for the shares. The price achieved substantially exceeded our client’s expectations.
A commodity importer and distributor telephoned late one Friday afternoon to advise that he had arranged a meeting with his bank manager for the following Monday. The purpose of the meeting was to discuss his projected accounts and cash flow forecast with a view to securing a larger overdraft facility. The projections and forecast had not been prepared and our task was to complete them in time for the Monday meeting. With input from the client, we worked over the weekend to ensure that the meeting could proceed as scheduled, with a properly prepared set of projected accounts and cash flow forecast.
Preparing for Succession….
A company engaged in construction industry services had three Directors, one of whom wanted to retire and sell his shares in the company. There was a problem in that the other directors wanted to purchase the shares, but simply did not have the substantial funds required to make the purchase. We were asked to provide a tax efficient solution to the problem. Following a review of the situation, we suggested a tax efficient manoeuvre which enabled each of the directors to achieve their goal. Following this, the two remaining directors approached us again requesting advice on a tax efficient way of selling a portion of their shares to two further newly appointed directors, one of whom was short of readily available funds to make the purchase. We were able to provide appropriate advice, the sale went ahead and a tax efficient framework was established for future succession requirements.
VAT in Europe….
Our clients had established a very successful internet sales company. They came to us because they were selling vast quantities of goods to non – business customers in several other European countries, and needed ongoing assistance, to first register and then account for VAT in those countries, under the internationally agreed VAT distance selling regulations. They had been unable to obtain this from their existing accountants and were sufficiently impressed with our firm, that following our initial VAT advice, they employed us as the company’s accountants so that we were able to advise them on all tax, accounting and financial matters.
Not just about the Accounts….
Always on the lookout for tax saving and money making ideas for our clients, from our readings of the financial press, we were aware that a high number of our clients had the opportunity of making tax free cash in return for very little effort and risk on their part. We circulated details of the opportunity to our clients and many took advantage of it, resulting in substantial extra tax free cash for them, to spend or save however they wished.