Case Study
Case Study
Small business year end tax planning
Sector:
Agriculture
Support:
Tax Planning
Outcome:
Clear awareness of projected taxable profits and tax liability before year-end
Circumstance-appropriate actions identified
Client able to qualify for capital allowances with smart planning
Confidence and clarity from ongoing year-round support
What was happening?
Before working with us, our client felt out of control with their tax position. The tax burden felt too high and a bit unfair, and they didn’t feel they had control of their tax liability and cash position. They had plans to invest in two pieces of new machinery, financed in part by hire purchase, but weren’t sure if that was the best move for them and what the timeframes should be, despite the commercial need for both.
What needed fixing?
Awareness of tax liability before year-end
It was important to the business’ long-term success to have greater clarity around their tax liabilities to help in decision-making, future planning, and to avoid stress and worry.
Certainty around cash availability and impact of financing by hire purchase
Being clear on what investments or purchases could or should be made and when based on cash availability and projections, was going to be key for the best tax position.
How we approached it
- Met with client well in advance of financial year-end
We thoroughly reviewed figures in Xero, considered what income and costs were still to come, and what projected stock position would be at year-end. Meeting with lots of time to spare was crucial to the advice we could offer about next steps. - Discussed action to be taken
The client’s business needs, objectives, and existing financial commitments was considered. We also looked at cash availability and hire purchase options as well as timing for the machinery purchases they hoped to make.
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