Recently reviewed your costings process? Here’s why you should…

Accurately knowing your costings is an essential part of running a successful business, particularly if you’re looking to make significant changes and grow. However, sometimes the need to make changes in your business also requires the need to change the way those costings are worked out too.

We recently assisted a long standing Manufacturing client with exactly this issue. The method they were using for costing their production of parts for the engineering industry was old fashioned and no longer fit for purpose.

Different level of service leads to strategic growth for Brocklesby Limited

“The commercial benefits that we have seen by working with Armstrong Watson have been significant and enabled us to improve in a variety of ways that we would never have done had we still been with our old firm of accountants”

Robert Brocklesby, Managing Director

Background

Tax Investigations in the Hospitality Sector

An independent analysis of HMRC enquiry data by the Institute for Fiscal Studies (IFS) has revealed nearly 60% of businesses, within the hospitality sector, owe extra tax after an investigation. That alarming success rate is one of the reasons why we encourage our hospitality clients to subscribe to our Tax Investigation Service.

Tax Investigations in the Manufacturing Sector

Assembling a tax enquiry

This engineering company received an enquiry notice from HMRC asking to review the reported number of associated companies and its effect on the corporation tax computations. The initial review revealed that one of the three associated companies had been missed and further tax would be due.

Tax investigations in the Healthcare Sector

There is nothing particularly unusual about these enquiries and therein lies the problem – even a straightforward enquiry is likely to cost the equivalent of 10 years subscription to our tax investigations service.

Tax Investigations in the Food & Drink Sector

Pubs, bars and clubs, as well as cafes, have always been popular targets for HMRC to investigate. This
is primarily because these businesses are deemed to be cash based enterprises, with plenty of scope and opportunity for record keeping errors and tax mistakes. Subscribing to our Tax Investigation Service means when the seemingly inevitable happens, our professional fees to assist you will be covered.

Tax investigations in the Property Sector

In their dash for cash to maximise the tax take for HMRC, inspectors often argue disproportionately when they know they have a weak case. Or, they change tactics part way through an enquiry to exploit perceived weaknesses elsewhere. It is no wonder so many people subscribe to our Tax Investigations Service when they know inspectors drag out enquiries excessively in their desperation to generate extra tax.

Architecture firm

HMRC began an investigation into a firm of architects by requesting a formal visit.

Tax Investigations in the Agriculture Sector

Separating the wheat from the chaff

HMRC recently launched an enquiry into a farming business, asking for an analysis of the general farming activities, rent and rate expenses; and capital allowances computations for plant and machinery. Although HMRC are not looking at everything within the accounts, the initial cost estimate of £1,000 has already been exceeded and could easily double, subject to HMRC’s approach.

Facilitating partner conference

We regularly facilitate partner retreats/conferences for law firms.  These are usually a full day strategic session to include workshops and breakout sessions, all ultimately with the intention of bringing partnerships closer together to achieve their strategic aims.

Topics covered can vary including goal setting, strategic reviews, ultimate objectives, exit planning, growth, lock up reduction, profit maximisation etc.

Profit share review

Profit share seems to be a particular hot topic for law firms at present, with many reviewing whether their profit share mechanism is appropriate.  Most are considering whether it is fair; whether it is in line with competitors/the market; whether it encourages the right behaviours; and whether it helps to attract and retain the best people.