Examples of our Work
We have been able to help people leaving good employed jobs to start their own business secure substantial tax refunds using the special rules that apply to new businesses. In one case this was over £10k. Thinking of going it alone yourself? There may be help from the taxman we can uncover for you. Do not file your first self-employed tax return before speaking to us.
R&D Tax Credits
Over a period of 5 years we successfully claimed extra R&D costs for 2 clients totalling £480,000 for a tax saving of £95,000. These 2 clients, both engineering businesses had a combined annual turnover of less than £2.5m. These credits do not just apply to new manufactured products. They can apply to product enhancements, food recipes, drug formulations, production processes and administration processes.
One needs to demonstrate the journey of discovery for something new that overcomes uncertainty and is not something that can be done by a qualified professional. We help out clients achieve substantial tax savings in the field of R&D. If you think you have created something new, give us a call.
Payments on Account
Every year as part of our service we look to save clients tax. One of the most important aspects is managing the payments on account for the current tax year. These most hated payments are based on the prior year income. We work with our clients to assess current year income to see if we can appeal the payments on account.
Income Tax Credits help a Growing Business
A fast growing limited company required growing amounts of working capital, we were able to help the owners obtain substantial tax credit receipts to fund their living expenses when cash was tight.
Changing the Accounting Year End Date
A self-employed client who had been in business for many years faced a large tax bill as his business slowed approaching retirement. We helped him obtain a substantial tax saving by changing his accounting period.
Another limited company client saved a very large bill for corporation tax by choosing a more appropriate accounting period for their trade.
B. Business Improvement
Examples of Operational Improvements
Multiple-Site Testing House has profitability and scaling problems
- We assisted in identifying areas of good and poor performance by re-formatting the management accounts into profit centres for monthly reporting. This enabled management to rapidly assess and deal with areas of poor profitability.
- We recommended finding or developing an enterprise management system to meet a number of key company objectives e.g. eliminating spreadsheets for producing test result, to provide rapid supply of test results to client via a cloud portal and to provide management information on staff utilisation.
Legal firm suffering cash flow problems with a time-consuming invoicing process leading to extended credit for clients
- Firstly, we identified areas of unnecessary paper handling in the invoicing process to shorten the time between timesheet preparation and invoices being posted to the clients.
- More radically, we proposed a change to the terms of business that would closely align the work done with cash payments by customers.
Security company hits a downturn in trading creating severe cashflow problems
- Firstly, we collected and updated the accounts for cash-sensitive transactions.
- Next, we prepared a cashflow forecast over the next 3 months.
- We devised a plan to manage the settlement of liabilities that kept supplies supportive and created some necessary headroom for unforeseen problems.
- We trained the staff in managing the relationships between the client and its customers and suppliers.
MBO computer spares distribution company needed to develop its own in-house management accounting team
- We set up a management reporting system to evaluate performance each month, running on Sage 200, once the split with the former owners’ systems was complete.
Examples of Business Sales
An engineered capital goods business (coin-counters) that had been loss-making for a few years was put up for sale by its owners. We found a substantial number of surplus employees in the manufacturing workforce. By restructuring the organisation, the business became profitable and suddenly had a much enhanced sale value for its then owners.
A food packaging group wished to dispose of a subsidiary. Our consultant put together a memorandum for sale that gave prospective purchasers a very good view of the business, its development, performance and a clear outline of the obligations within the business. Answering the questions in advance obtained an offer in 2 months.
Examples of Business Acquisitions
A specialist engineering company (lifts) wanted to expand into a new market (care products), a technically similar business to its own products. The due diligence process carried out by we established the company was being substantially over-charged for certain materials. Re-sourcing the components produced a potentially very valuable business for the acquiring company. The process also uncovered a number of obligations the vendor subsequently paid. It was a great success in building the capital value for the new owner.
Information systems procurement, development and management
A major manufacturer and distributor to lawn mowers needed to re-invent its business. This required the company to move from making one manufacturing plan each year to being in a position to flexibly adjust it product output each month. We ran a multi-disciplinary project to develop a business forecast, production planning and management process within the business. A sub project required the consolidating of two computer systems and subsequent replacement onto a new platform. At the end of these projects, the company became very flexible, substantially reduced its working capital and raised return on capital from 10% to 18% and then 22% over the course of 2 years.
A substantial subsidiary of a Japanese chemical company needed to split the trading activities of one of its subsidiaries into discrete business units. Our principal was responsible for overseeing the reorganization of the company data systems to provide trading between a manufacturing unit, an agricultural business and a horticultural business. The outcome of this was that the company was able to sell the horticultural business.
A privately owned distributor of hobby model products needed to bring in-house its financial and management accounting. We were able to fully computerise the accounting and sales order processing systems using software already owned by the company and to develop a range of monthly management accounts suitable for management reporting and evaluation of product line profitability.
C. Virtual Finance Director
- Electronic security business. Turnover £2m, 16 staff. We produce monthly management accounts with project profitability and divisional performance in a project and service based business. We advise the managing director on business tax issues as and when necessary.
- Print company. Turnover £600k, 8 staff. We prepare quarterly accounts and attended board meetings to review business performance.
- Craft products manufacturer and distributor. Turnover £1m. We provide advice on profitability, business strategy, personnel issues and tax management on a quarterly basis.
- IT Support Business. Turnover £500k. We provided monthly management accounts and cash flow forecasts. We assisted in the sale of the business by preparing the financial data for a business plan that resulted in the company being sold to a major multi-national corporation for a good price and excellent employment contracts for the principals.