Red Dot recommended a tax efficient way for the client to fund nursery fees.

We were able to introduce a specialist Childcare company who implemented a Childcare Scheme in the Company.

By using our specialist knowledge and skills, we were able to get our client tax benefits equivalent to two tax years in the first year – saving them over £5,200 in tax.

See www.childcaretaxsavings.co.uk for more details.

The post Tax Planning and Childcare appeared first on Red Dot Chartered Accountants.

Our client had approached their Bank for increased overdraft facilities, but were declined.
The company had an existing invoice discounting facility but were feeling that they were being charged too much, and the service being supplied was poor.

Red Dot were able to introduce them to an alternative invoice discounting company.
The client had a meeting with the firm, and agreed to use the services of the new invoice discounter.

The result was a major improvement in the service provided, and a more cost effective solution – and a very happy client!

This is yet another example of our client’s benefiting from our knowledge and experience, and introductions to our trusted network of professionals.

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Our client had approached their Bank for increased overdraft facilities, but were declined.
Red Dot suggested they consider invoice discounting or factoring – this is where a finance company will advance up to 85% of the value of a sales invoice as it is raised without having to wait for the customer to pay.

Our client had considered invoice discounting or factoring, but had felt this was not an option as their other customers paid promptly so they did not want a facility to include all customers.

Red Dot introduced them to an Invoice Discounting Broker – at no cost – who identified a specialist invoice discounter who was able to offer facilities for this sole customer.

The client had a meeting with the firm, and agreed to use the services of the invoice discounter.

The result was a major improvement in their cashflow and a very happy client!

This is yet another example of our client’s benefiting from our knowledge and experience, and introductions to our trusted network of professionals.

The post Tailored Invoice Discounting appeared first on Red Dot Chartered Accountants.

Red Dot advised the client on the turnover threshold for VAT registration, and calculated the date registration was applicable from. We then registered the business for VAT with HMRC.

Our client asked us to complete the first VAT Return on their behalf, as we had advised them that VAT incurred before the date of registration could be reclaimed on the first Return.

Using our detailed knowledge and experience, we completed the Return, and were able to reclaim input VAT incurred before the date of registration of over £4,000 – which the client would not have claimed had we not told him.

Result – a very happy client!

The post VAT Registration appeared first on Red Dot Chartered Accountants.

One way was for the remaining shareholders to buy the shares off the outgoing shareholder, but this would mean the remaining shareholders incurring higher rate tax bills on drawing funds from the company yo buy the shares.

Red Dot recommended the client arranges for the company to buy the shares instead. This is called a company purchase of own shares. The process is quite complex as the circumstances have to meet detailed criteria with HMRC, and the transaction requires HMRC approval.

Red Dot completed the transaction efficiently for our client.

Again, another example of how we can deliver services normally only associated with the larger accountancy firms by using our network of trusted professionals as we require them.

The post Purchase of Company Shares appeared first on Red Dot Chartered Accountants.

Working to a very tight deadline, Red Dot prepared detailed projections to show that the business w as able to fund the increased overdraft.

We also were able to promptly supply up to date Accounts to the Bank as these had already been completed well in advance.

The result was that the bank agreed to lend the money to our client.

The post Raising Funds Via Overdraft appeared first on Red Dot Chartered Accountants.

Red Dot prepared detailed cashflow projections to show that the business was able to fund the loan repayment.
We also were able to promptly supply up to date Accounts to the Bank as these had already been completed well in advance.

As we know our client so well, we agreed that our costs would be reduced significantly if the funding application was not successful – we know how frustrating it is for clients if costs are incurred with no end result.

The result was that the bank agreed to lend the money to our client.

The post Raising Funds Via Business Loan appeared first on Red Dot Chartered Accountants.

Our client asked Red Dot to undertake due diligence work as part of the acquisition. Due diligence is the process of checking different aspects of the business being acquired to ensure as far as possible that you are getting what you think you are getting.

We completed some preparatory due diligence work as well as providing advice to our client regarding the different ways to structure the acquisition whilst our client continued discussions with the target company.

Unfortunately, our client decided that a commercial issue had been identified that meant that the acquisition could not continue.

We understand this is a very frustrating time for our client, so the thought of professional fees being due as well was not nice, so we agreed as a goodwill gesture to write off all our costs to date.

We were able to do this as we have a very close working relationship with this client, and unlike many other accountants, have the flexibility within our own business to do this.

The post Due Diligence Aborts Business Purchase appeared first on Red Dot Chartered Accountants.

The sale of a business is something that few business owners have much experience of. It can be a very worrying and stressful time, during which the owner has to continue to run the business without being distracted to the detriment of the business.

From our experience at the outset we were able to advise our clients of the likely problems and pitfalls they would encounter – not just the practical and legal issues, but the emotional pressures too – so they knew what to expect.

Throughout the process Red Dot liaised with the Solicitors for both the sellers and buyers; negotiated changes in the structure of the deal with the Purchaser, and were able to support our client.

The result was a completed business sale, and a very satisfied client who received excellent post tax proceeds.

The post Manufacturing Company Sale appeared first on Red Dot Chartered Accountants.

Our client had decided that they wished to retire and had received an offer for the business and all the commercial properties.

Red Dot reviewed the offer and calculated the Capital Gains Tax and Income Tax implications of the sale.
We then negotiated with the Purchaser to apportion the Sale Price more tax effectively for our client, and agreed for the sale to be spread over two tax years.

The result for our client was a significant reduction in both their Capital Gains Tax and Income Tax liabilities of in excess of £50,000.

The post Capital Gain Tax Planning appeared first on Red Dot Chartered Accountants.