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How we helped some of our clients Client 'R' - Tax Repayments c £30,000+ This client who had taken early retirement asked us to quote for his consulting business. We quoted £500 + vat to do his Accounts and Tax return; we got the job because his 'Top 20 Accounting Firm' who had handled his company and personal affairs for 15 years were charging in excess of £1000 + vat. We soon spotted that they had credited his business with a £25,000 Post-Cessation receipt from his former business upon which he would pay tax @ 120% because it would appear in 3 years of commencing Assessments! However, we could not understand why he was paying out the £25k and not receiving £25k; his previous business had subsequently failed and he was called upon to give Landlord Guarantees of £50k+, along with 2 other former directors who had retired at the same time. We asked if the 'Top 20 Firm' (sic) had made any claim to which the response was negative. We said "you can always claim, but whether you will succeed is another matter." The 'Top 20 Firm' had handled the liquidation of the former company yet had not made a claim to have the shares declared of £nil or negligible value. We made a claim for Client 'R' and his 2 former directors each of whom received cheques in excess of £30,000 from the Revenue. The 'Top 20 firm' said 'R' was not entitled to a repayment because he had not paid for the shares until April 1982; we copied them the Accounts which they had prepared that showed he had the shares in april 1981! The 'Top 20 Firm' had cost our client some 80% of the £25k post cessation receipt and loss of Capital; Gains indexation because they did not claim their shares were of £nil value within the time limit. Client 'W' - A successful Management Buy Out We were approached to assist in a Management Buy-Out of a £8million turnover company, so we suggested a 'Top 5' accounting firm led the deal. There was Goodwill which included a value of £250k on a Computer Ordering System for customers. At the end of the first year's trading we claimed Technical Know-How relief on the £250k which the Revenue rejected. We approached the 'Top 5 Firm' and asked for their help to save £15k in Tax in the first year. They said we couldn't because the 'deal' had not been so structured. We asked why they had led us to believe they were the Number 1 firm in MBOs and why had not the Goodwill been structured to retain the possibility of claiming the Tax Relief. This from a firm who had quoted a fee of £20k and then presented one of £60k because the negotiations had taken longer than expected! Our fees were about £6k for which we introduced the finance. Client 'C' - Tax Repayments c £3,000 This gentleman feared he was due a large tax bill on rental income on a property in Holland. When we came to do the Tax Returns we realised he had been paying Tax on 'Emergency Codes' for 4 years! The Tax Code repayments exceeded the Property Rental liabilities. Have us Check your PAYE Notice of Coding Livingstone & Co.
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