Background

Client was seeking to acquire a company with a turnover of £8 million and profits of £2.5 million for £12.5 million but wanted to ensure they were buying a clean company.

Objective

To provide a due diligence report on the financial affairs of the company, its profitability and the sustainability of the future profits.

Outcome

After two weeks of investigation it was apparent that the company had considerable issues in relation to VAT and PAYE/NI under-declarations which exposed our client to £2.5 million of potential liability.

The structure of the deal was amended so that our client acquired the trade and assets of the business and not the company – thereby leaving the exposure with the vendor.  The consideration payable was £11.5 million, saving the client £1 million.

The vendor was required to give warranties to declare the issue to HMRC and pay the liabilities.

Background

Client was under enquiry (six years of accounts) having had her accounts and tax affairs completed by another firm.

The client was subject to £3,000 additional tax for excessive claims made for some elements of personal expenditure put through as business expenses.

The client’s previous accountants had also failed to claim interest as tax deductible on a mortgage for the office premises.

Objective

Manage the enquiry to obtain the best result for the client.

Outcome

After four months of investigation the client was able to claim a net refund of £28,000 of tax over the six years.

Background

Client had been under enquiry from HMRC for the last three years and had gone to three firms of accountants already with no resolution.  HMRC were demanding £78,000 in taxes and penalties on un-declared income.

Objective

To bring the enquiry to a completion.

Outcome

After four months of work and negotiations we concluded the case – the client had to pay £6,500 in tax, penalties and interest.

A happy client who has now put the past behind him.