CASE STUDY

taxMINIMISER

How to pay the legal minimum (Taxes)!

Being told how much your tax bills are after the end of your business’s financial year is commonplace for most businesses but that doesn’t have to be the case. Your business tax bill should be seen as just another expense in your profit and loss account and as such, it needs to be managed the same as any other overhead.

Keeping a check on their tax bill is a key priority for one of our clients as they know it’s not what you make it’s what you keep that matters...

Sciquip Ltd is a distributor of laboratory equipment with customers nationwide they supply businesses and hospitals/universities with capital equipment. The company’s MD and controlling shareholder, Matt Brooksbank always knows where he stands with both the company’s tax bills and his own by virtue of taking our taxMINIMISER service. This is a programme of quarterly reviews and health checks designed to cover all the tax bases.

Marlow Proactive Client Case Study - SciQuip Ltd

CLIENT FOCUS

Established in:2001

Business Type:Scientific Equipment

Sciquip Ltd is a distributor of laboratory equipment with customers nationwide they supply businesses and hospitals/universities with capital equipment. Based near Shrewsbury the company employs a busy team of 10 people with further growth planned in the coming year.

How we make sure Sciquip's cash flow is never hit by unexpected bills...

STEP 1

Quarter #1 - TaxMANAGER
After every quarter throughout the year, we undertake an overall review of the company’s management accounts to identify possible tax risks that HMRC would typically enquire into. We also review the Directors' loan accounts to make sure they haven’t become overdrawn and thereby trigger unnecessary tax penalties and we make sure sufficient dividends are taken to maintain a healthy balance. In the subsequent quarters, we look at specific issues.

STEP 2

Quarter #2 - TaxPROTECTOR
We then run our clients adjusted results through the database and obtain a 29-page report that measures everything from sales growth to profit safety margin. The results show where our client fits into the industry’s quantiles for each of the 21 measures and calculates the extra profit that could be made if our client could match the best performers.

STEP 2

STEP 3

Quarter #3 - TaxPLANNER
We then sit with our client to review their report and discuss the relevance of the different measures and formulate an action plan to exploit the strengths further and eradicate the weaknesses.

STEP 4

Quarter #4 - Preparation
In quarter four it’s time to ensure that the director’s remuneration packages are structured in the most tax-efficient manner. By using salaries, dividends, benefits in kind and several innovative tax strategies we can make a big difference to the amount of tax triggered.

STEP 4

THE OUTCOME...

Knowing that they will always only have the minimum taxes to pay both the company (and the directors) can easily make provision well in advance to avoid any surprises. This enables the company to budget for its expansion plans safe in the knowledge there are no unexpected tax bills waiting around the corner which could hit its cash flow. Essentially it’s all about being ahead of the taxman not being an afterthought and getting caught out.