Goldbridge Partnership

Goldbridge Partnership Goldbridge Partnership has been created by entrepreneurs, for entrepreneurs.

Our mission is to create a growth environment for businesses and our team to work within. We are redefining the relationship accountants have with their clients, moving from a traditional transactional based approach, towards a value added service where we actively contribute towards the growth of your business. Unlike most accountants, we judge our success on the growth we have contributed to our clients.

23/08/2022

Today I have another example of how our new client onboarding 'health check' continues to add value to our clients.

After taking on a new client, we have been looking at their prior year accounts, along with the information provided from the previous accountants.

To my surprise, the accounts we were provided with by the previous accountants, didn't even agree to those submitted at Companies House, which is never a good start!

After completing a full review, we noticed that the accounts filed with Companies House, and HMRC, did not include a dividend that was voted to clear down a directors loan account.

This might seem to be only a small thing, but the overdrawn loan account of £35k, resulted in an additional tax liability to the company of over £10k.

Our new client was being chased for a corporation tax liability that they had no idea about, as the accounts they had, had no overdrawn loan account.

They were sure the dividend was correct as it was included in their annual tax return, which the previous accountants also prepared!

In order to get the quickest resolution, we amended the accounts and corporation tax return to show the correct dividend. This cleared the outstanding directors loan, reducing the corporation tax liability by over £10k.

We also noticed various expenses had not been claimed as the accountants simply didn't ask questions as to the nature of the expenses and simply disallowed them.

Our review and amendments reduced the corporation tax liability by over £14k.

Instead of having debt management chasing a £10k liability that our client didn't know existed, our new client starts the week with a £4k repayment soon to be approved.

Taking that little but of extra care and attention on our clients often has amazing results.

16/06/2022

Today I have another great example that shows that by using an advisor with experience in your industry, you can generate instant value.

Whilst completing our standard 2 year review on taking on a new client, we noticed that the client had invested substantial sums in a new premises that they were trading from in the previous year.

The previous advisor, had included all of these costs as land and buildings, which is what you may expect to be the case.

What they obviously weren’t aware of is that there are a lot of assets that whilst on the surface may look like land and buildings, are actually plant and machinery.

Upstanding the industry and the specific areas of tax around that industry are key to enshrining clients get maximum value.

Luckily for our client, they are still within the period of amending the previous corporation tax return.

As the tax had already been paid for the previous year, the result of our review was a tax refund to the company of just over £15,000!

With the client already looking at expansion and acquiring another premises, this repayment gives the business instant cash flow to help towards their growth plans.

The suns shining and one of clients has £15k coming back to them. What a great day!

16/06/2022

This morning, much like most people, I turned on the TV to see fuel prices increasing, once again adding to the cost of living crisis sweeping the UK right now.

There are so many taxes in the UK and whilst everyone in the media and government wants to focus on the big oil companies, lets remember that fuel duty and VAT represent nearly 50% of the cost of a liter of fuel right now!

The other 50% is spread over the oil company, delivery charges and the retailer, so its safe to say the government is taking the biggest slice out of the fuel we are putting in our cars.

There are many tax advantages of getting electric cars from a company perspective, such as them qualifying for capital allowances and having really low benefit in kind rates but here is a practical example of some real money savings that anyone can benefit from.

Based on the UK average of 8,000 miles driven per year, at the current cost per liter of fuel and using a UK average of say 40MPG, the average individual will spend £1,720 a year on fuel. £808 of this is some form of tax!

An equivalent electric car, based on 8,000 miles and an electricity rate of 35p per kwh, would cost £720. With less than £50 being tax.

When you also factor in free charging in car parks, being Congestion Charge exempt and free from road tax, the average person could be saving over £100 a month.

Even if you don't own your own company, or receive a car benefit, by simply making the change to a fully electric vehicle can make a huge difference to your monthly spending.

So, if you're looking at an easy way to save some tax, go electric!

13/05/2022

It's funny, because after posting about the capital allowances super deduction last week, we have a success story of how one of our clients was able to take advantage of this. As mentioned in my previous post, the capital allowance super deduction allows you to claim back 130% against your net profit.

Due to a combination of continued growth and the need to replace some older assets, our client needed to replace and increase their van fleet. This is how the numbers worked.

They had 2 existing vans that needed replacing and needed 2 further vans due to new contracts. The list price of each van was circa £34,000.

By making the purchase before 31 March 2023, they were able to take advantage of the super deduction, resulting in the below:

Cost of 4 vans: £136,000

Essentially 130% of £136,000 = £176,800

You are then able to claim tax relief on the £176,800 against your net profit figure.

Corporation tax saving of 19% on £176,800 = £33,592.

Total tax saving under super deduction: £33,592.

Normal tax saving before using super deduction: £25,840 (being 19% on £136,000)

Additional saving generated: £7,752.

Its clear from the above numbers that planning ahead and knowing the tax position can generate substantial savings.

It's always best to take advice before substantial expenditure to ensure there aren't tax savings available.

02/05/2022

The Super Deduction!! If you are planning to purchase assets for business use, you can currently get a 130% enhanced deduction for qualifying expenditure. This can generate huge additional tax savings for businesses, but timing is everything. The enhanced allowance is only available until 31 March 2023, so there’s less than a year left to take advantage of this. If you want to explore the benefits that are available and the impact this can have on your business, please do get in touch!

23/03/2022

Goldbridge Partnership has been created by entrepreneurs, for entrepreneurs. Our mission is to create a growth environment for businesses and our team to work within.

We are redefining the relationship accountants have with their clients, moving from a traditional transactional based approach, towards a value added service where we actively contribute towards the growth of your business.

Unlike most accountants, we judge our success on the growth we have contributed to our clients.

If you would like to discuss your business, or personal finances, please do contact us.

Address

Richmond Road
Twickenham
TW13

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

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