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We pride ourselves in providing a complete package to our clients assisting them over the life cycle of their business. As an illustration, here’s an example of an existing client we have worked with for a number of years.
We first met the directors when they had the opportunity to start a light engineering business. Having always been employees working on the shop floor this was an exciting but scary prospect. Working with them, we produced budgets and cashflow forecasts to assess the viability of their proposal. Having demonstrated the scheme could succeed we helped in the formation of their company, in obtaining suitable premises, in negotiating available grants as well as setting up a suitable bookkeeping system, PAYE scheme and all the other compliance issues affecting a new business.
Although our projections demonstrated the likelihood of rapid growth, the directors were surprised and delighted to see it happening. The extra work necessitated the employment of additional personnel and we assisted them through that perceived trauma. As the work continued to expand the rented premises were too small and we set-up self-invested personal pension schemes which enabled them to erect a block of workshops in a tax efficient manner. Approximately half of the workshop being occupied by them and half rented to other businesses although the long-term plan was for the extra building to be occupied by them in time.
Using the pension scheme route enabled existing pension policies to be utilised to minimise the required borrowing. The rents paid covered the cost of the interest paid by the scheme and capital repayments paid as pension contributions attracted corporation tax relief. Altogether a very tax efficient way of acquiring business premises.
The business has carried on growing and now occupies the entire unit. We still have regular reviews of progress and potential new sources of work are examined in depth to ensure the business can cope with further growth. The company is now well established and it is possible the directors will decide to maintain the status quo and settle for an easier life. There again, they may not and we will be delighted to help them plan any further expansion.
In time we may well be helping the directors sell their company for the best possible return. Who knows, we may help their employees with a management buyout!