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The Benefits of a Group Structure

Fri, 24 Apr 2026 10:10:40 GMT

As businesses grow, their structure often needs to evolve. Establishing a group structure, with a parent company and operating subsidiaries, can provide clearer oversight, and a more robust framework for sustainable growth. It can also support asset protection, simplify complex arrangements and, in the right circumstances, offer tax planning opportunities.

In this article, we explore the benefits of a group structure, when it may be appropriate and the key points to think about before making the change.

At Wild & Co Chartered Accountants, we regularly support business owners who are reviewing their structure as their businesses evolve and expand.

What is a group structure?

A group structure typically consists of a parent company and one or more subsidiary companies.

The parent company owns shares in the subsidiaries and provides overall strategic control. The subsidiaries carry out the day-to-day trading activities, such as delivering services, employing staff and managing customer relationships.

Protecting assets

One of the key benefits of a group structure is the ability to protect valuable assets.

Important assets such as property, intellectual property or cash reserves can be held in the parent company rather than in the trading business. The trading subsidiaries then operate day to day while the parent company retains ownership of key assets.

This separation can reduce risk because if one trading company encounters financial difficulties, the assets held in the parent company are typically protected from operational liabilities.

For founders, directors and shareholders this structure can provide greater confidence that valuable assets are safeguarded as the business grows.

Potential Tax Advantages

A group structure can also create tax planning opportunities, depending on the circumstances. These could include:

Transferring tax losses within a group structure is the ability to use group relief to transfer certain tax losses between companies. If one subsidiary makes a loss, those losses can often be offset against the taxable profits of another profitable company within the same group. This can help reduce the overall corporation tax liability for the group and improve cash flow during periods when individual entities perform differently.
Substantial Shareholding Exemption (SSE) and dividend flexibility. With SSE, in certain situations where the parent company sells shares in a subsidiary, the gain may be exempt from corporation tax under the SSE rules.
In terms of dividends, those paid from subsidiaries to the parent company are usually exempt from corporation tax. This allows profits to be moved around the group more efficiently to support investment, acquisitions or expansion.

Tax rules in this area can be complex, so it’s important to take professional advice to ensure the structure works effectively for your business.

Clearer management and oversight

Running several businesses can quickly become complicated. A group structure can bring clarity and organisation by creating a central point for strategic decision-making while allowing each subsidiary to focus on its own market and operations.

The parent company board can set direction, monitor performance and oversee governance across the group. Consolidated reporting can also provide a clearer overall view of the business. For many growing companies, this structure improves visibility and helps leadership teams plan and manage growth more effectively.

Supporting growth

New businesses can be acquired and added as subsidiaries without disrupting existing operations. Equally, if a business unit is no longer aligned with your strategy, it may be easier to sell a subsidiary rather than restructuring the entire organisation.

This flexibility can make acquisitions, disposals and investment opportunities easier to manage and more attractive to investors. For businesses planning to scale, particularly across different sectors or markets, a group structure can provide a practical framework for growth.

When might a group structure be worth considering?

A group structure may be worth exploring if:

You operate multiple business activities or ventures
Your business holds valuable assets that you want to protect
You are planning acquisitions, disposals or investment
You are preparing for future succession or ownership changes
Your business is growing and becoming more complex

Every situation is different, so careful planning is essential before making structural changes.

While there are clear advantages, a group structure also brings additional responsibilities.

Operating multiple companies can increase administrative requirements, including additional reporting, governance and compliance obligations. It’s also important to ensure the structure is designed correctly from the outset.

Professional advice is particularly important if you are considering reorganising an existing business structure, as HMRC clearance may be required in certain circumstances.

How Wild & Co Chartered Accountants can help

At Wild & Co Chartered Accountants, we work closely with business owners to review whether a group structure is the right fit for their business. We take a practical, collaborative approach, helping clients understand the options available, assess the potential benefits and implement the right structure to support long-term growth.

Because every business is different, our focus is always on creating a structure that works for your ambitions, your team and your future plans. If you’re considering reorganising your business or exploring the benefits of a group structure, we would be happy to talk through the options with you.

How to Set Up a Personal HMRC Government Gateway Account (And Why You Should)

Thu, 07 Aug 2025 15:35:17 GMT

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How to Set Up a Personal HMRC Government Gateway Account (And Why You Should)

At Wild & Co Chartered Accountants, we’re often asked by clients how to access their personal tax information online. This quick guide explains how to register for a personal HMRC Government Gateway account step by step and outlines what you can do once you’re set up.

What is a Government Gateway Account?

The Government Gateway is HMRC’s secure online portal where individuals and businesses can access a wide range of tax and financial services.

Setting up your Government Gateway account is free and takes only a few minutes.

How to Set Up a Personal HMRC Government Gateway Account

1: Gather what you need

Before you begin, have ready:

Your National Insurance number
Either your passport, driving licence, P60 or recent payslips.

2. Visit the HMRC Personal Tax Sign-in Page

Go to: https://www.gov.uk/personal-tax-account

Click “Start now” and then “Create sign in details” under “New users of Government Gateway.

3: Create sign-in details

Enter your email address. HMRC will send you a verification code. Once you enter the code and confirm it, you’ll be issued with a 12-digit Government Gateway User ID – make sure you save it securely.

4: Set Up a Password and Recovery Information

Next enter your full name and choose a secure password (typically min 10 characters). You’ll also be prompted to choose a recovery word in case you forget your password later.

5: Add security: Two-factor authentication

To keep your account safe, you’ll need to set up either:

A security phone number, or
Authenticator app for codes

You’ll also answer extra security questions during this step.

6. Provide personal details

You’ll be asked to verify your identity by entering

Date of birth
National Insurance Number

Anti-fraud questions based on credit or known addresses may follow, if HMRC lacks sufficient data.

7. Completion

Once verified you’ll arrive at your Personal Tax Account dashboard. From here, you can choose the “Individual” account type if managing your own personal tax affairs.

What Can You Do With Your Personal Tax Account?

From your HMRC dashboard you can:

Check your Income Tax estimate and tax code
Submit, view or manage a Self Assessment tax return
Check your Child Benefit
Check your income from work in the previous 5 years
Check how much Income Tax you paid in the previous 5 years
Check your State Pension
Check if you’ll benefit from paying voluntary National Insurance contributions and if you can pay online
Track tax forms that you’ve submitted online
Check or update your Marriage Allowance
Tell HMRC about a change of name or address
Check or update benefits you get from work, for example company car details and medical insurance
Find your National Insurance number
Find your Unique Taxpayer Reference (UTR) number, if you already have one
Check your Simple Assessment tax bill

Final thoughts: Why it’s worth your time

For ongoing peace of mind and streamlined tax management, setting up your Gateway account is one of the smartest steps you can take. Stay digital, stay compliant – and stay in control.

Need Help?

At Wild & Co Chartered Accountants, we help clients navigate HMRC services every day. If you need assistance setting up your Government Gateway account or understanding what you find inside your Personal Tax Account, we’re here to help. Get in touch with our team on 01423 222710

How to Successfully Prepare Your Business for Sale: An Expert Guide

Wed, 02 Apr 2025 11:17:39 GMT

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How to Successfully Prepare Your Business for Sale: An Expert Guide

Selling your business is one of the biggest financial decisions you’ll ever make. Whether you’re looking to retire, start a new venture, or simply cash in on your hard work, a successful sale requires careful planning and preparation . Many business owners underestimate the complexity of the process, but with the right approach, you can maximise value and ensure a smooth transaction .

Wild & Co Chartered Accountants specialises in helping business owners prepare for sale, making the process seamless while protecting their interests every step of the way. Here’s how we help businesses like yours achieve the best possible outcome.

1. Start Preparing Early—Ideally Three Years in Advance e

A well-prepared business commands a higher valuation and attracts serious buyers. Ideally, you should begin preparing for sale at least three years in advance . This gives you time to organise your financials, optimise profitability, and put key processes in place that ensure the business can run smoothly without you.

2. Structure Your Financials the Way Buyers Want to See Them

One of the biggest hurdles in any sale is presenting financial information in a format that buyers expect. We help you:

Clean up your accounts and financial records.
Use tools like Xero and Fathom to create visual, insightful, and accurate management information.
Prepare profit and loss statements, balance sheets, and cash flow reports in a buyer-friendly way.

This transparency makes your business more attractive and reduces friction during due diligence.

3. Validate Your Numbers—So There’s No Room for Negotiation

Buyers will scrutinise every financial detail, often looking for reasons to reduce their offer. We work with you to validate and challenge your numbers regularly, ensuring they stand up to scrutiny. By the time due diligence begins, every figure is accounted for— leaving buyers with little to question or negotiate down.

4. Help Buyers Understand Your Business’s True Value

A key question buyers ask is: What does the business look like without the owner? We help you position your business as a strong, self-sustaining entity by:

Strengthening leadership and operational structures.
Showcasing recurring revenue and growth potential.
Demonstrating how the business will continue thriving post-sale.

5. Manage the Financial Data Room for a Seamless Due Diligence Process

Having an organised data room is crucial. We take care of gathering and structuring all necessary documentation, including financial reports and key operational details. A well-managed data room speeds up due diligence and instils confidence in buyers.

6. Represent You in Buyer Negotiations

As your trusted financial partner, we don’t just prepare your numbers — we actively support you in negotiations. We sit in on calls with buyers, answer financial questions on your behalf, and act as your finance director (FD) during discussions. Our goal is to give you confidence and control throughout the process.

7. Bring in the Right Experts to Secure the Best Deal

A successful business sale involves more than just numbers. We introduce experienced legal and corporate finance advisors to:

Draft heads of terms and explain legal intricacies.
Negotiate key terms to ensure you get the best possible deal.
Push back on unfavourable clauses that could impact your post-sale position.

8. Minimise Tax Liabilities with Strategic Planning

Selling a business comes with tax implications. We work with tax specialists to help you structure the sale efficiently, ensuring you optimise your post-sale financial position.

9. Find the Right Buyer—Even If You Don’t Have One Lined Up

If you don’t already have a buyer, we can introduce you to corporate finance experts who will:

Develop a compelling sales slide deck highlighting your business’s strengths.
Market your business to a network of potential buyers.
Oversee the process to ensure you secure the right buyer at the right price.

10. Maintain Discretion Throughout the Process

Many business owners prefer to keep the sale process confidential, especially when employees are unaware of the discussions. We operate with complete discretion, ensuring that information gathering and negotiations are handled with the utmost confidentiality.

Ready to Start Your Business Sale Journey?

Selling your business is a major milestone, and the right preparation makes all the difference. At Wild & Co Chartered Accountants we bring expert financial, corporate finance, legal and strategic support to help you navigate the process smoothly and successfully.

If you’re considering selling your business in the next few years, now is the time to start preparing. Get in touch with our team today to discuss how we can help you maximise value and secure the best deal for your business. Call us on 01423 222710 or email liz@wildandcoaccountants.co.uk

Q&A: Buying a car through your business

Thu, 27 Feb 2025 14:46:03 GMT

Q&A: Buying a car through your business

Buying a vehicle through a business is one of the topics clients frequently seek advice from us about. There are several ways to do this and various tax incentives are available, particularly for electric vehicles.

Here, Tasha tackles some of the most frequently asked questions on the subject.

What are the advantages of buying a car through a limited company rather than buying it personally?

If you buy a car through the business, the initial cost and finance costs are tax deductible. You can also claim tax relief on running costs such as road tax, insurance, and servicing. Mileage can also be reclaimed at the HMRC fuel advisory rate, which will vary depending on fuel type and engine size.

If you buy a car personally, you cannot claim for the purchase cost or running costs but instead, you can claim a tax-free allowance from your company for any qualifying business mileage. The mileage rate is 45p a mile for the first 10,000 business miles and 25p per business mile thereafter.

Is it better to buy an electric car through my limited company as a hire purchase or rental lease?

If you are buying a new electric vehicle through a hire purchase or PCP, you can claim 100% of the cost as a capital allowance in the first year. This is because the government is currently incentivising the purchase of electric cars. If you are thinking about buying an electric car, you might want to do it sooner rather than later as this scheme is scheduled to end in March 2025. VAT can’t be reclaimed on the cost of a vehicle.

If you get an electric vehicle through a rental lease, the tax benefit is spread over the period of the rental lease, rather than in year 1 of purchase. 50% of the VAT on the rental lease can be reclaimed on a monthly basis.

The running costs such as insurance, maintenance and repairs can be paid through the company regardless of whether the vehicle is purchased through HP/PCP or a rental lease. Any interest costs relating to the finance is also tax deductible.

What if I’m not buying an electric vehicle?

The 100% capital allowance relief is only available for new electric vehicles. If you are buying a second-hand electric vehicle or a new car with CO2 emissions 50g/km to 110g/km the capital allowance is 18% a year. If the emissions are over 110g/km the capital allowance is 6% a year.

The running costs can still be paid through the company.

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What about benefit in kind?

In terms of personal tax, you are entitled to taxable benefit in kind however the car is purchased. The BiK rate is calculated based on the market value of the car and its CO2 emissions. Additional taxable benefit in kind is available if fuel costs are paid through the company.

For more information on tax, vehicles and electric vehicles, speak to Tasha or one of the Wild & Co team on 01423 222710

The Future of the Furnished Holiday Let (FHL)

Mon, 03 Feb 2025 10:34:45 GMT

The Future of the Furnished Holiday Let (FHL)

As announced in the 2024 Spring Budget, the Furnished Holiday Let (FHL) regime will come to an end on 5 April 2025. After repeal, former FHL properties will form part of an individual’s property business and be subject to the same rules as non-furnished holiday let property businesses.

To qualify as an FHL, a property must have been available as holiday accommodation for at least 210 days of the tax year, and booked for 105 days, with individual stays lasting no longer than 31 days.

Under the existing FHL rules, any property qualifying as an FHL was treated as a trade and so benefited from several tax advantages. However, following the abolition of the FHL regime, the following rules will come into effect:

There will be no capital allowances for any new capital expenditure. Instead, rental properties will now receive the replacement of domestic items relief.
Tax relief on loan/mortgage interest will be restricted to the basic rate of income tax at 20%.
Rental profits must be split between individuals based on the legal ownership of the property. Previously, the split of rental profits could be varied between owners ie. 80:20 vs 50:50.
Tax reliefs for capital gains arising from the sale of FHL properties such as Business Asset Disposal Relief, Rollover Relief and Gift Relief will no longer be available.
Rental profits will no longer form part of relevant earnings for determining how much tax relief an individual can receive from pension contributions made.
As part of the transition away from the FHL regime, the following rules will also apply:
Losses created before the 5 April 25 can be carried forward to be used against future rental profits.

Business Asset Disposal Relief will still be available for sales of FHL properties for a 3-year period following 5 April 2025, provided conditions to qualify for the relief are met prior to 5 April 2025.

Existing capital allowances pools can continue to be written down after 5 April 2025 until fully utilised.
On abolishment of the FHL regime, there will be no balancing charges on capital items where capital all owances have been claimed previously.

Actions to consider:

Making use of capital allowances – anyone running an FHL should ensure they have claimed capital allowances for all capital items purchased. Any significant planned expenditure on properties should be completed before 5 April 2025.

Consider selling – If you’re considering selling the property soon, it may be worth doing so before 5 April 2025. The property could be sold to benefit from a more favourable tax rate on capital gains under Business Asset Disposal Relief. However, if the FHL conditions were met before 5 April 2025, the reduced tax rate will still be available for a 3-year period after cessation of trade.

Incorporating – the FHL business and property can be transferred into a limited company where there are more favourable tax rates and greater opportunities for tax planning. However, there are potential stamp duty liabilities that will need to be considered.

To discuss the abolishment of the furnished holiday let regime, contact our experienced team of accountants at 01423 222710.

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Sole trader vs limited company – which is best for you and your business?

Tue, 29 Oct 2024 13:42:37 GMT

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Sole trader vs limited company – which is best for you and your business?

When you are starting a new business venture. you’ll want to think carefully about how to structure it and whether you opt to be a sole trader or register as a limited company . The final decision will depend on several factors, including how you plan to grow your business. In this article we look at some of the differences between sole trader and limited company structures to help inform your planning.

What is the difference between a sole trader and limited company?

As a sole trader, you and your business will be considered as one legal entity. You benefit from all profits, although you also take on all the liabilities. With a sole trader structure there can only ever be one owner of a business, which means you cannot have partners or fellow directors with a share of the business.

A limited company is a legal entity in its own right, separate from the director(s). This means your personal assets will not be linked to the company. Directors and shareholders cannot be pursued personally for company debts. Limited companies can have a sole director/owner or multiple owners and shareholders.

Some pros of operating as a limited company

Advantages to consider in relation to operating as a limited company include:

It is easier to raise investment for growth, bring in additional shareholders and apply for business grants. For this reason, limited companies can find it easier to scale up and grow.
Operating as a limited company allows more opportunity for personal tax planning because income tax is only paid when a salary or dividend is extracted from the business. Whereas with a sole trader, income is accounted for under the cash accounting basis tax is paid on all the profit made in the tax year.. Sole traders are subject to income tax, which is paid at the higher rate once profits exceed the threshold.
Directors can choose to be paid a small salary and take additional income as dividends. This can lead to a lower tax bill, although the taxation rate of dividend income has increased in recent years.
There are various tax incentives and benefits available to limited companies which are not available to sole traders, such as R&D tax credits.
If you are planning to sell your business at some point in the future, operating as a limited company makes this process much easier. This is partly because of the ability to bring in investors and shareholders and also because the business is a legal entity in its own right, which means it can continue to exist even if the original owners leave the business.

Some pros of operating as a sole trader

Advantages to consider in relation to operating as a sole trader include:

Setting up and operating as a sole trader is very simple. There is no need to register with Companies House and you don’t necessarily need a business bank account, although we would recommend having one (or at least a separate current account to give greater clarity with your numbers and to make accounting and bookkeeping easier). Even though you won’t register with Companies House, you will need to inform HMRC that you are trading.
It is easy to switch to a limited company or partnership as your business grows.
You are not subject to the Companies Act which means your accounts do not need to be made publicly available on the Companies house website.
Withdrawal of funds. If you operate your business as a sole trader, you can generally introduce or withdraw cash from the business without any tax implications. With a Limited Company the company’s money and your money are separate – this can frequently be forgotten by some business owners! There can be adverse tax implications if this isn't managed correctly however this is something a good accountant will help you with.
You can use the cash basis of accounting which simplifies accounting for small businesses.

Before you decide which option to take, we recommend talking to us first. The final decision will also depend on whether you have any other income or are involved in additional business activities. It will also be hugely beneficial to introduce digital processes from the outset, giving you a clear view of your income and expenditure from day one. You can find out more about the advantages of digital accounting in our article 6 Benefits of Using a Cloud Accountant

You may also be interested in reading our article How to apply for a mortgage when you’re self-employed

To discuss a new business venture, growth of your existing business or how to prepare for sale and exit, contact our experienced team of accountants on 01423 222710 .

The rules for claiming VAT on business expenses

Thu, 11 Jul 2024 14:49:27 GMT

The rules for claiming VAT on business expenses

Expenses can be one of the most confusing aspects of VAT, so we are going to take a look at some of the key rules when it comes to claiming VAT on business expenses. This is a complex area, so we are focusing on the main points to be aware of for tax efficiency and compliance and the things we are most often asked about.

A bit of background

If you are a VAT registered business, you will pay what is known as ‘input tax’ on goods or services. Input tax can be reclaimed on these expenses in certain circumstances, and this is known as VAT recovery. Input VAT must be reclaimed as part of your VAT return. Not all expenses are VAT recoverable, and this is what we’ll be looking at in this article.

Criteria for recovering VAT

You can only claim back VAT if you are a VAT registered business. Your business must be registered for VAT if your VAT taxable revenue has exceeded £85,000 over the past 12 months. Your VAT taxable revenue is the total value of everything you sell that is not exempt from VAT.

Being VAT registered means you charge VAT on your sales and can reclaim VAT on purchases.

The expenses you are recovering VAT for must wholly and exclusively be for business related goods and services that are subject to VAT (unless they are exempt from VAT or outside the scope of VAT).

Which expenses don’t qualify for VAT recovery?

A number of expenses do not qualify for VAT recovery. These include:

Entertaining
Director’s accommodation
Second-hand goods
Overseas expenses
Personal or non-business expenditure

Reclaiming VAT on cars

Usually, reclaiming VAT on cars is prohibited, unless they are solely used for business purposes and you can prove that to be the case. You are, however, allowed to reclaim the VAT on the purchase of commercial vehicles, including vans.

Your VAT registered business can also reclaim VAT if you are buying a car under a lease agreement. You can reclaim 50% if it is used for both personal and business purposes, and 100% if the use is strictly limited to business.

What paperwork will you need?

VAT invoices are crucial to the process of VAT recovery on expenses. A VAT invoice is the term for an invoice which contains information required by the VAT rules, including the VAT number, date of supply, description of what has been supplied and the VAT amount. A VAT invoice enables you to recover VAT you have incurred as input tax and you should make sure you keep them in a way that allows you to find them easily when asked by HMRC. You should retain them for at least 6 years.

As digital accounting specialists we instilled in our clients the practice of electronic record keeping and transmission of documents, long before it became a compliance issue. All businesses should now be keeping VAT records and submitting VAT returns digitally under HMRC’s Making Tax Digital for VAT. Digital documentation supports traceability, provides visibility and enables accurate reporting. It is the most secure way to store and share information.

What else should you watch out for?

We have already highlighted the importance of having the right documentation and the fact that certain expenses do not qualify for VAT recovery. VAT rules can also be subject to change, so it is important to stay up to date with current legislation. We will always notify clients of any changes to rates or rules so that they are prepared.

Businesses should also be vigilant about applying the correct rate of VAT to each type of expense. Some expenses will have standard VAT but others may have reduced rates or be zero-rated. If you are unclear about differing VAT rates and how they impact on VAT recovery, talk to us. Clients often prefer us to complete VAT returns and calculate VAT recovery on their behalf to avoid miscalculations.

Some expenses, such as vehicle costs, can have a business and personal element. It is important to calculate the portion that relates to business use as this is the only part that can be recovered.

Another rule to be aware of is the partial exemption rule. If your business makes, or intends to make, both taxable and exempt supplies and incurs tax on costs which relate to both, it falls into this category. A business that is partly exempt may not be able to recover all its input tax. The amount of income tax that is recoverable is calculated using a partial exemption method. Partial exemption rules make the VAT recovery process more complex and if the rules are not applied correctly it can lead to errors in VAT claims with potential penalties.

Finally, businesses should make themselves familiar with the rules of the Capital Goods Scheme for VAT recovery on high-value capital assets so that they can calculate the correct amount over the adjustment period.

If you have any questions about VAT recovery on expenses or would like support to complete your VAT returns, please get in touch with one of the team at Wild & Co Chartered Accountants on 01423 222710.

Celebrating 15 years of Wild & Co

Tue, 18 Jun 2024 17:23:10 GMT

Celebrating 15 Years of Wild & Co

Thank you to everyone who joined us at Starling Harrogate as we celebrated our 15th birthday. It meant a great deal to all the team that so many of our clients were able to join us on the night and we enjoyed catching up with everyone.

Liz founded the firm in 2009, with Graham joining her a couple of years later. Since then we have grown with a focus on apprenticeship training and personal development. We are incredibly proud of the vibrant culture we have been able to create thanks to our team and the reputation we have developed for supporting the next generation of accountancy professionals and promoting the latest digital accounting technology.

Ever since we started out, we’ve pushed the boundaries of digital accounting and helped our clients make use of the latest technology and processes to make running a business easier.

This contemporary approach has helped us attract some of the best local emerging talent in finance and we have found it deeply rewarding to mentor our trainees and watch them grow in confidence in both technical skills and client facing work.

We set out to fill a gap for businesses that are looking for a proactive accountancy partner to work with them throughout the year and give them greater visibility over their business numbers.

Last year we introduced a Growth Hub for clients with a programme of workshops, webinars and news bulletins to support business growth and we regularly share knowledge about new apps and software that streamline management information.

Even though digital accountancy is more widespread now than it was when we started out 15 years ago, we are still one of the few firms embracing all the possibilities it offers and keeping clients fully up-to-date on how technology can move them forward.

As we continue to expand our own business, we are looking forward to helping our clients to grow theirs too and to enjoy doing so.

Thank you to everyone who joined us for our 15th birthday party and we are incredibly grateful to all our clients and contacts who have supported us over the years.

Finalists in the Harrogate Advertiser Business Awards

Wed, 29 May 2024 17:09:43 GMT

Finalists in the Harrogate Business in Excellence Awards

We were thrilled to be one of the finalists in this year's Harrogate Business Excellence Awards, particularly as the achievement came as we celebrate our 15th year in business.

The Wild and Co team were shortlisted for the Independent Business of the Year Award and took our place alongside so many fantastic regional businesses. This could only have happened thanks to our incredible team, who work so brilliantly together and work incredibly hard for our clients.

When we launched Wild and Co it was with the aim of helping other Yorkshire businesses to recapture the excitement they had initially felt when they started out. We also wanted to shake up the world of local accountancy by becoming one of the first cloud accountancy specialists in the region and developing a unique collaborative way of working with businesses.

We are now Gold partners of the finance software platform Xero and share regular updates and webinars with clients to help them make the most of the technology available as new features evolve.

Our overarching goal is to bring the fun back into running a business and to make sure that everything we do has the success of our clients at its heart.

Although we weren't the ultimate winners in our category, we were thrilled to see our clients win awards at the event and we are proud of everything we have achieved as a team.

How to avoid an enquiry by HMRC

Thu, 25 Jan 2024 16:53:56 GMT

How to avoid an enquiry by HMRC

Nobody wants to have to go through the time, stress and inconvenience of an HMRC enquiry and whilst it will never be possible to guard against this completely, there are things you can do to reduce the risk of it happening.

What is an HMRC enquiry?

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HMRC has a duty to collect taxes and make sure the correct tax is being paid. If they suspect tax has not been paid or has been underpaid, they will want to investigate. Overall, there has been a rise in the number of HMRC enquiries in recent years as the Treasury attempts to proactively recoup money that is owed.

As a taxpayer and a business owner, it is your responsibility to make sure you are paying the correct amount of tax. You are expected to keep accurate records and submit tax returns on time. Having accurate and clear records makes it easier to respond to questions from HMRC, should they ever raise a query.

There are a number of different types of HMRC enquiry and investigation, and we won’t go into all of them here. However, we have put together some tips covering most of the key areas that impact our clients, to help you and your business stay on the right side of the taxman.

Stick to the deadlines

By filing tax returns on time and paying tax when it is due, you are demonstrating that your records are up to date and your affairs are in order. There is no benefit to be gained from leaving things to the last minute or filing and making payments after the HMRC deadlines. In fact, the sooner you can file a tax return, the earlier you will have a clear picture of your tax liabilities and any repayments that may be due.

Keep income/expense ratios under review

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HMRC monitors the income/expense ratios of businesses and may react to any unexpected profit ratios. Their concern could be that costs which are not legitimate business expenses may have been incorrectly incorporated. If you notice any anomalies in your regular reporting and financial reviews, make sure you question them and dig deeper. If you are satisfied that the blip is caused by legitimate business fluctuations, make sure you have evidence to support this. That way, you can respond quickly and honestly if HMRC raise a query. It is also worth reviewing annual income/expense at year end and comparing it with previous years, to check for any year-on-year anomalies.

Keep records up to date

At Wild & Co we believe strongly that well-maintained digital records of all transactions, including income, expenses and deductions, are at the heart of business success. We want to make sure our clients have clear visibility of their numbers at all times, not just when they are preparing their accounts at the end of the year. The key reason for this is that it makes it easier to forecast profit, manage cashflow and spot issues before they become a problem. It also means there is a clear trail of activity, so that you can respond speedily to any information requests from HMRC. Make sure you are inputting accurate information and providing a full picture to your accountant of all factors that might affect either your business or personal tax.

Maximise the benefits of your accounting software

We have spoken before about the benefits of digital accounting (read our article 6 Benefits of using a cloud accountant ). It’s also valuable to explore all the ways your accounting software can support your business. As Xero Gold Partners we stay close to the latest Xero feature releases and make sure we understand how these can support our clients. New apps and updates are continually being launched that integrate with other cloud platforms and online tools, including ecommerce platforms like Shopify. When you are using your cloud accounting software and other online tools to your advantage, your whole business becomes streamlined and well-connected. This helps maximise productivity, minimise accounting errors and improve financial reporting – all of which helps HMRC gain a clear picture of how your business works, should they ever need it.

Accuracy and detail

If you have picked up any anomalies, as described earlier, it is helpful to disclose the reasons on your tax return. If HMRC picks up something unusual, they will usually check the tax return first before launching a full investigation, to see if there is an explanation. As a general rule of thumb, provide clarification if you think it might be needed and don’t leave anything to guesswork. Similarly, make sure you have included everything before your tax return is submitted, to avoid the risk of having to amend a tax return after it has been filed.

What to do if you face an enquiry

If you do receive an enquiry, always respond promptly and provide the information requested. Answer questions accurately and honestly. If you have followed all the steps above, responding to questions from HMRC should be straightforward.

If you would like to discuss any of the points raised in this article in more detail or want to understand more about HMRC enquiries and how to improve your record keeping and reporting, please get in touch with one of our team by calling 01423 222710.

Giving to charities as a business or individual

Thu, 30 Nov 2023 18:01:06 GMT

Giving to charities as a business or individual

If you are donating to charity, you may be wondering if it is better to give as an individual or through a business. Charitable giving is always a good move and there are some tax advantages to doing it through your limited company.

Donating as an individual or a sole trader

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When you donate as an individual, a charity can claim Gift Aid on top of your donation. If you are a UK taxpayer and the money being donated is your own, you can opt to add Gift Aid at no extra cost to you, giving the charity an extra 25p for every £1 you donate. You must pay enough tax to qualify and the charity needs to be registered to offer Gift Aid. The charity will usually include an option to add Gift Aid when you donate.

If you’re a sole trader or an individual, the donation cannot be recorded as a charitable donation on your tax return. If you pay tax above the basic rate of income tax, you can claim the difference between the rate you pay and the basic rate on your donation through your tax return or tax code. For a donation of £100, the charity could claim an extra £20 (20%) and you would receive £20 in tax relief (since the difference between basic rate and higher rate tax is also 20%).

Donating through a limited company

If you make a donation to charity through your limited company, the gift can be recorded as an allowable business expense. As long as you don’t receive anything in return for the donation eg tickets to an event this will reduce your corporation tax bill. For example if you make a donation is £1,000 this will reduce your corporation tax bill by £190. The charity will not be able to claim gift relief on this donation.

Giving to charities in other ways

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Some businesses are able to give in other ways, not just through financial contributions. If you have surplus stock, such as IT equipment for example, these items can be donated and a capital gains allowance claimed against the equipment. Some companies donate office space, which may also be eligible to be deducted from profits, reducing corporation tax. Giving staff time off to volunteer can in some cases be classed as a taxable expense.

Tax and charitable giving are complex areas and there are exceptions to some of the points we have covered above. If in doubt, please do get in touch with one of the team at Wild & Co Chartered Accountants on 01423 222710.

6 benefits of using a Cloud accountant

Tue, 24 Oct 2023 13:44:16 GMT

6 benefits of using a Cloud accountant

If you haven’t used a cloud accountant before, you may be interested to read about some of the benefits compared to traditional accountancy. As an established digital accountancy specialist, we are passionate advocates of cloud accounting and have seen first-hand how it can revolutionise the way businesses operate. Cloud accounting is suitable for start-ups and established businesses and we make it easy to switch from more traditional methods of managing financial information.

Easier access to information and advice

Using a cloud accountant will mean your business’s financial data and reports are stored securely on remote servers. They can be accessed by you and your accountants from anywhere. There is no longer any need to sign physical documents, request reports and updates or wait for accounts to arrive by post. This means your accountant can keep in touch with you on a more regular basis and be more proactive in the way they work with you. It also means you can see your financial status at any time, rather than waiting for an annual meeting.

Real Time Information

A cloud accountant will set up your digital accounting systems in a way that works for you and your business. They will show you how to access important information and run reports that will give you clarity in terms of cash and profitability. These systems are updated in real time which means you will always be looking at the very latest data.

Digitally savvy

Cloud accountants are comfortable with technology and can show you how to save time by using software platforms and apps to improve the way you work. Most good cloud accounting platforms like Xero integrate with bank accounts and other financial and business software, which means you can streamline a lot of your business processes. Your cloud accountant will know how these things operate and will be up to date with the very latest apps and features. This means they can also suggest specific apps and functions that will be particularly beneficial to your business.

Data security

One of the first things people ask us when we introduce the idea of cloud accounting is whether it is secure. As an established cloud accountancy firm, we have a huge amount of expertise in data security and can reassure and advise clients so that their data and practices are safe. The online platforms we use, such as Iris and Xero, have been developed with digital security in mind and as a result are much safer than most traditional data storage methods. We are proud to be Xero Gold Partners, recognising our expertise in this key financial software platform and its security features.

Flexibility and scalability

A cloud accountant will be able to help you make the best use of your accounting software as your business evolves. They will be able to set it up in a way that allows the systems and processes to be scaled and adapted to your business needs. This means that when you acquire businesses, add new services or make any kind of change to your business, the disruption to your financial management and reporting will be minimal. Cloud accountants are highly experienced in transitioning businesses through various stages of growth and development in a way that maintains consistency across their digital accounting systems. Our clients are always surprised at how little disruption is caused to their financial platforms, even when they are undergoing major transformational change.

Making informed decisions

Having real time information often inspires business decisions that might not otherwise have been considered until after year-end, when a traditional accountant would have prepared the annual accounts. In other words, running a business becomes an organic and dynamic process. This level of clarity gives business owners confidence in their numbers and clarity to forward plan. Many business owners we work with tell us that running a business has become more enjoyable because they feel in control and have greater knowledge and insight.

If you would like to know more about cloud accountancy and how it could help your business we would be happy to talk it through with you in more detail. Please give us a call on 01423 222710.

Wild Walkers hike the Three Peaks for Harrogate Homeless Project

Wed, 20 Sep 2023 11:43:42 GMT

Wild Walkers hike the Three Peaks for Harrogate Homeless Project

The intrepid Wild Walkers - AKA Tasha, Emily, David and Jacob from Wild & Co – took on the mighty Yorkshire 3 Peaks this September to raise money for Harrogate Homeless Project.

They hiked 24 miles and climbed over 5,000 feet, tackling Pen Y Ghent, Whernside & Ingleborough, all in the knowledge that their support and fundraising would be helping Harrogate Homeless Project.

The weather was cool and misty and the going was tough but they still managed to make it to the end of the route in less than 12 hours.

They raised over £500 for the charity with the support of colleagues, clients and friends, which will help to provide people experiencing homelessness with a safe place to stay and all the support they need to move towards independent living.

The Wild Walkers would like to say a huge thank you to everyone who supported them. If you would like to contribute to the fundraising total, you can make a donation here .

Applying for a mortgage when you’re self-employed

Thu, 17 Aug 2023 20:26:39 GMT

Applying for a mortgage when you’re self-employed

When you apply for a mortgage, the lender will want to know about your income. If you are self-employed or a company director, you need to know how to present your earnings and how they will be evaluated by the mortgage provider. Talking to us before you approach a lender can make the process smoother. Read our tips below.

How do lenders decide if someone is self-employed?

As you might expect, mortgage lenders consider anyone who is a sole trader or partner to be self-employed. However, even though HMRC regard company directors as employed, for mortgage purposes, lenders consider you to be self-employed if you have more than 25% of ordinary share capital of a limited company.

How is my income assessed by lenders?

For sole traders, income will be based on the net profit generated by their business.

If you are a director of a limited company, your income may be assessed as a combination of salary and the dividends you draw from your company. It can also be based on your company profits plus your salary, or your company's pre-tax profit, plus your salary.

How can I improve my chances of being offered a mortgage?

New paragraphLenders will want to see financial documentation and would prefer this to have been prepared by a chartered accountant.

They will be looking for a stable income and signs of a profitable business, ideally with evidence that shows a consistent income stream over two to three years.

Financial documents such as SA302 forms (or our IRIS equivalent tax computation) or final company accounts will help the lender assess how reliably you will be able to repay any loan. You may also be asked to provide tax year overviews from HMRC to show that your tax account is up to date.

As well as evaluating your income, they will look at credit history and assess affordability of the amount you want to borrow by checking your other outgoing.

Checking that you meet the criteria

As we mentioned earlier, you should talk to your accountant as soon as possible if you are thinking of applying for a mortgage. We can look at your accounts and discuss your options if some of the criteria outlined above cannot be met (for example, if you don’t have three years of accounts).

If you are thinking of applying for a mortgage and you are a company director or partner, please get in touch for advice. We can also put you in touch with mortgage advisors who specialise in self-emplloyed applications. You can call us on 01423 222710 or email info@wildandcoaccountants.co.uk

What are the new rules for R&D tax claims?

Mon, 14 Aug 2023 17:26:21 GMT

What are the new rules for R&D tax claims?

Changes to the way R&D tax claims (tax relief for innovations in science and technology) are made were introduced on 1st April 2023, in an effort to make the process more rigorous. In this article we’ll explore what this means to companies making applications and whether you could be missing out on valuable tax credits for innovations that are covered by the scheme.

What is R&D tax credit and what is covered?

To claim tax credits Your company must have incurred qualifying expenditure on R&D projects.

HMRC states that R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. The advance “could have tangible consequences (such as a new or more efficient cleaning product, or a process which generates less waste) or more intangible outcomes (new knowledge or cost improvements, for example)”.

The new application process

The new rules apply to companies with accounting periods beginning on or after 1 April 2023 where:

You are making a claim for the first time;
You have claimed for the previous tax year but didn’t submit that claim until after the last date of the claim notification period;
Your last claim was made more than 3 years before the last date of the claim notification.

Under the new rules, R&D tax claims involve completing a claim notification form followed by an additional information form. The forms can be submitted either by a company representative, such as a director of the firm, or an adviser appointed by the business.

The latest date that companies must submit the claim notification form is 6 months after the end of the accounting period that the claim relates to. If your year end was on 31 ^st March, therefore, the form must be submitted by 30 ^th September. If companies fail to submit the form by this deadline, their claim will not be valid.

Claim notification form

The claim notification form will ask for contact details of those involved in submitting the application, the company’s Unique Taxpayer Reference (UTR), the accounting period for which you are applying for tax credit and a summary of activity to show that the project meets the criteria for R&D.

Additional Information form

The second form, the additional information form, must be submitted before you submit your company’s Corporation Tax Return. If you don’t do this, HMRC may remove the claim from your tax return. It is also important to make sure that the dates and information on all forms, including your tax return, are the same.

The additional information form will ask for:

Full details of the qualifying expenditure you are claiming tax relief on as an SME, or expenditure credit as a large company or SME.
The number of all the projects that you’re claiming for in the accounting period and their details.

The information you give will depend on the number of projects being applied for:

Up to 3 projects - describe all the projects that cover 100% of the qualifying expenditure.
4 to 10 projects - describe the projects that account for at least 50% of the total expenditure, with a minimum of 3 projects described.
Over 10 projects - describe those projects that account for at least 50% of the total expenditure, with a minimum of 3 projects described (if the qualifying expenditure is split across multiple smaller projects, describe the 10 largest).

Guidance has been issued by HMRC which explains the level of detail they require when describing projects. We recommend studying this carefully to ensure your claim is not rejected.

All R&D claims are processed electronically, and the application will be far smoother if both your business and your accountant have embraced digital accounting practices.

We are here to help you identify R&D tax credit opportunities in your business and complete your application in line with the new rules. You can call us on 01423 222710 or email info@wildandcoaccountants.co.uk

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3 of the biggest finance challenges facing growing businesses – and how to manage them

Wed, 02 Aug 2023 08:33:29 GMT

3 of the biggest finance challenges facing growing businesses – and how to manage them

As businesses grow, they continually face shifting markets, economic change and evolution within their operations that can present significant challenges to profitability and success. As with all aspects of financial management, understanding your numbers and using them as a solid platform for your decision making can help a company ride both external and internal storms.

Cash management

Good cashflow is the beating heart of any growing business. Too little cash can limit growth and restrict opportunity. From robust credit management to effective control of stock and suppliers, business owners should be familiar with every aspect of their working capital and the factors that influence it.

Cash management means having a strong grip on cashflow so that you can anticipate future financing needs in good time and put a plan in place. Cashflow projections help you identify any potential threats early so that you can react by considering options for additional funding or reduced expenditure.

Our FD on Demand service helps growing businesses understand their numbers, forecast effectively and make informed decisions about their business. We help our clients manage their cash proactively on a day-to-day basis rather than waiting until issues arise. This is important for any established organisation and particularly for those planning expansion.

Raising funding

If you anticipate that you will need extra funding to achieve your growth objectives, having good cash management and cashflow forecasting in place will make the task so much easier.

Funding may be needed to boost production, acquire new premises, launch new services or products or even for acquisitions. The sources of funding available are wide, although not all will be available to every business and some will be more suitable for certain types of ventures or projects than others. Options include bank loans, grant funding, angel investment, peer-to-peer funding, venture capital and crowdfunding.

Whatever kind of funding you apply for, you will need a strong business pitch and a clear forecast. Again, this is something we help our FD on Demand clients with, as well as advising them on the finance sources available to them. It is important to have clear management information (MI) and an action plan for different business scenarios. Banks and lenders want to see not only that you have the information but also that you are aware of how the numbers affect your decision making, giving them confidence in you and your organisation.

Maintaining profitability

A business that can generate enough sales and income to make it profitable has the best chance of being successful and achieving its growth targets. Becoming profitable is one thing but staying profitable in the face of changing circumstances can be a significant challenge, even for the best prepared company.

When profit levels start to become more difficult to maintain, for example due to rising costs or changing markets, there are a number of things you can look at to help you stabilise things financially. You can find ways of reducing business costs or alternatively you can look at ways to increase turnover, boost productivity or improve efficiency. Small changes are often enough to keep things on track. If you have good management information, you’ll spot issues with profitability early and the sooner you identify them, the more effectively you can respond.

You may want to look at wider changes, such as launching new products or services. If this is the case, your management information will be your starting point as you work out whether the costs involved will generate the profit uplift you’re looking for.

Find out more about our FD on Demand service here or by calling us on 01423 222710.

Introducing the Wild & Co Growth Hub

Mon, 26 Jun 2023 14:37:03 GMT

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Here at Wild & Co we are always looking for ways to proactively support business growth and we are delighted to have recently launched a new initiative exclusively for our clients.

The Wild & Co Growth Hub offers of a range of events, bespoke training sessions and communications, each developed with client success in mind.

We have worked hard to plan a programme of events and support, some of which provides general information and networking opportunities and others more specific tailored support.

All Wild & Co clients are automatically members of the Growth Hub, which includes, among other things:

Quarterly In Touch newsletters featuring tax and regulatory updates, reminders, news and tips.
The latest regional grant and funding information as it is released.
Invitations to Xero Clinic webinars to help use digital accounting software more effectively.
Bespoke growth workshops (these will be small group events tailored to specific topics).
Networking and events.

Our first events have included a Xero Clinic webinar, group training and a netwalking event. They have been well received and we will be sharing details of our next series of events with clients in the coming months.

You can find out more about switching to Wild & Co here .

6 benefits of filing your personal tax return early

Thu, 27 Apr 2023 12:36:42 GMT

6 benefits of filing your personal tax return early

We always contact our clients in early April to encourage them to get their paperwork and information to us within the first few months of the new tax year so that we can prepare their tax return and submit it in good time. This is not simply because we like our clients to be organised. There are significant benefits to filing your personal tax return well ahead of the 31st January deadline. Here are 6 reasons to be prepared and file early:

1. Receive tax refunds earlier

You may be entitled to a tax refund and the sooner you file your tax return, the sooner the money will be back in your bank. Tax refunds can be due for several reasons, such as if you have overpaid a payment on account based on previous income levels or if your tax code has been incorrectly calculated.

2. Budget for bills better

Once your tax return has been submitted you will know exactly how much you need to pay over the coming year. The first payment will be due on 31st January, which is the same date as the deadline for submission, so the sooner you can file it ahead of that date, the more time you will have to put the money aside ready for payment.

3. Give yourself enough time

One of the main reasons for putting filing off is the fact that gathering the documentation together is so time consuming. This task usually involves collating bank statements, receipts, payslips and investment information. Leaving things until the last minute risks you being unable to locate all the necessary paperwork and having to request copies. The sooner you can start the process, the more time you will have to gather everything together.

4. Applying for mortgages and loans

Applying for loans or mortgages can be a long and complex process, particularly when you are self-employed. Mortgage applications for self-employed applicants require an SA302 tax calculation form to be completed as proof of earnings. This means you will need to have completed your tax return for the most recent tax year. If you haven’t yet filed your tax return, it will hold up the application process. It is beneficial to have up to date tax information to hand for any loan application.

5. Put tax saving strategies in place early

By completing your tax return early in the new tax year, you give yourself as much time as possible to implement tax saving strategies for the current year. Once you know your tax liability for the year that has just ended, it is easier to predict what you will owe for the current tax year too. You can then put in place tax-saving strategies such as paying into a pension or donating to charity straight away and throughout the year.

6. Seek support during quieter times

If you need support or have queries about your tax affairs, it is easier to do this earlier in the tax year. As you can imagine, the HMRC helpline is at its busiest during December and January when the self-assessment deadline is looming. Similarly, if you are applying for copy statements and paperwork, organisations will be busy with similar demands towards the end of the tax year. As your accountant, we are always available to answer queries and offer support whatever the time of year, although we know from experience that it is less stressful for clients if they prepare their tax return early, when there is plenty of time to tie up loose ends.

Finally, we would encourage all our clients to act promptly when they receive their self-assessment checklist from us and the request for documents that we typically send out in April. It is particularly important to act quickly if your affairs have changed and you have noted, or expect to see, losses or significant additional income. Preparing your return early gives you time to consider any tax planning opportunities which could lead to tax savings and gives you time to collate your paperwork and discuss your situation with us.

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How to create an exit strategy for your business

Fri, 10 Mar 2023 12:09:08 GMT

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An exit strategy is a plan for selling or transferring ownership of your business at some point in the future. Having a well-thought-out exit strategy can help you achieve your personal and financial goals. It will also ensure a smooth transition for your business and employees, when the time comes. Here are some things to think about if you are planning an exit or succession strategy:

Determine your goals: Consider what you want to achieve from the sale of your business, such as financial security, retirement, or the pursuit of new opportunities.
Consider your timing: Consider when you want to sell your business and plan your exit strategy accordingly.
Seek professional advice: As chartered accountants and business advisors, we can help you plan for your own future and that of your business. We can help you consider everything that might be needed to meet the due diligence requirements of a potential buyer and we will also discuss appropriate timing.
Create a detailed plan: Develop a detailed plan for the sale of your business, including a timeline, financial projections, and a list of contingencies. Planning towards an exit is something that should ideally be started at least 3 to 5 years before you intend to do it.
Evaluate your business: Assess the value of your business, including its strengths, weaknesses and future growth potential. Again, this is something that we can help you with.
Identify potential buyers: Consider who may be interested in buying your business, such as employees, competitors or private equity firms.
Plan for succession: If you plan to transfer ownership to a family member or employee, consider how you will prepare them to take over the business.

It is never too soon to start thinking about succession planning and exit. If you would like to talk about this in more detail you can speak to one of our team on 01423 222710

6 tips for improving cash management in your business

Fri, 03 Feb 2023 14:58:36 GMT

6 tips for improving cash management in your business

Good cash management is all about preserving cash in your business and it is particularly important during periods of slow growth or low turnover. The flow of cash in and out is one of the most important metrics for any business and managing this balance well can be the difference between success and failure.

Here are 6 ways to improve cash management in your business, all of which represent good general practice and are particularly helpful when guiding your business through uncertain times.

Know your numbers

This is one of our favourite catchphrases. If you have a sound knowledge of the numbers in your business and how they are changing over time, you will always be one step ahead and have the flexibility to react to fluctuations. Cloud accounting software is part of the solution but business owners should also be clear about how to use it, what the numbers mean and what they should be looking for. With the sophisticated online systems now available, there is no excuse for burying your head in the sand. We support all our clients to help them make the most of their cloud accounting software and those who use our FD on Demand service enjoy unlimited support from us to help them improve cash flow, profitability and growth.

Review payment terms to mitigate risk

The easier you can make it for customers to pay you, the faster you will be paid. If you are finding that customers are falling behind or paying late, consider incentives for early payment such as a small percentage discount for payment at the time of ordering. This will automatically improve your cash flow and reduce the amount of time spent on chasing late payments. It is also worth reviewing the payment options you have in place. Do you offer online payments, credit card, BACS and mobile payment facilities? Are your payment and BACS details clearly stated on invoices? Perhaps you could consider changing your payment terms, for example reducing the invoice payment period from 30 to 15 days.

Managing debtors

Following on from the previous point, never be afraid to chase late payments. Make sure you run a report regularly on your debtors and start chasing them as soon as their invoice deadline passes. You may also consider late payment fees if payment is becoming a real issue. Have a rigorous system for chasing up unpaid invoices, using reminder letters and telephone calls and keeping a record of when these were sent and who you spoke to. Set a clear timeframe for escalating unpaid invoices and a process for doing so. Effective debt management will have a significant impact on the cash balance in your business and is an important part of any cash management strategy.

Managing creditors

Conversely to the point above, make sure you try and extend your payment terms on the people you owe money to. If you are subcontracting work, ensure you pay your sub-contractors after you have been paid by the customer.

Re-tendering to secure better deals

Do you outsource or subscribe to any services? From maintenance agreements and insurance to cloud telephony and cleaning, all contracts with suppliers should be reviewed regularly. Re-tender for services to see if you can secure better pricing elsewhere or from your current provider. You may also be paying for services you no longer use, which is another important reason for carrying out regular audits. Take a close look at all your business expenses and ask yourself whether any of these can be reduced or avoided. Don’t be too ruthless though – there are some services that are worth paying for and which enhance your business and support your growth plans.

Loan v cash for asset purchases

When you are buying new equipment for your business, cash can seem like the cheapest way to fund it. On the surface, cash is simple and avoids interest payments. However, the true cost of paying in cash is more complicated to calculate. Using cash to fund equipment purchases reduces your working capital and puts extra pressure on your cash management, creating an even greater need to implement the steps already discussed in this article. Less cash makes your business less liquid and this fact should always been considered when you are weighing up finance terms and interest rates.

If you have found this article interesting you may be interested in reading our article How to create financial resilience in your business .

Find out more about FD on Demand and our services for growing businesses .

How to create financial resilience in your business

Tue, 29 Nov 2022 15:50:57 GMT

How to create financial resilience in your business t

Inflation, energy bills and low consumer confidence are creating a perfect storm for even the most well-managed businesses but there are things you can do to build in financial resilience during this period of extreme volatility.

Cash flow forecasting

We would recommend having a short-term cash flow projection, in addition to your other forecasting, which considers a period of around 13 weeks. This will help you identify issues quickly so that you can react and look at options such as additional banking facilities.

Working capital management

By controlling money owed and purchases made, you can maximise the cash flow available. This means making contact with anyone who owes you money and selling off excess stock or inventories to generate cash. It goes without saying that greater care than usual is needed when offering credit to customers. If you have any non-essential overheads, review these and it may be necessary to decide to either cut or pause them. This is not always necessary and some services will be important to have in place so that you can adapt quickly when the economic climate improves.

Supply chain and stock

In the current environment, supply issues mean advance ordering has become the norm and many companies are holding stock as contingency. This has a big impact on cash flow. Where possible, avoid overstocking and identify suppliers who can deliver reliably with shorter lead times. It is also important to be mindful of the financial health of your suppliers as well as your biggest customers.

Focus your growth

In challenging times, it’s crucial to focus your efforts on improving the best performing parts of your business. It might be necessary to side-line products or services that do not generate good profitability, or which are break-even. The same applies to customers. If you have good customers, you will often generate more income more quickly if you focus efforts on developing and retaining them rather than investing more time in finding new ones. This isn’t always the case, of course, and it can depend very much on the sector you operate in.

Review funding

We cannot stress strongly enough the importance of having good management information (MI). Alongside this, look at different business scenarios and have an action plan for these. This kind of information and awareness will demonstrate resilience to banks and lenders, giving them greater confidence to support you. If you would like further information on our FD on demand service which focuses on preparing MI that allows you to make the best decisions please get in touch.

Talk to us

If you have any concerns or queries about cash flow, funding, profitability or anything else that could impact your financial resilience, we urge you to talk to us as soon as possible. We are always available to help, no matter how small your query, so there’s no need to leave it until our next scheduled meeting.

A tax guide to festive staff parties and gifts

183:904906670 (Liz Wild) — Tue, 29 Nov 2022 15:18:19 GMT

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A tax guide to festive staff parties and gifts

In this article we'll look at the tax breaks associated with festive gatherings and other tax efficient ways to make a difference to your team this Christmas.

The cost of living crisis has prompted some bosses to think slightly differently about how best to show appreciation for their staff. We’ll cover that too.

What party costs are tax deductible? ?

Whatever the size of your business or gathering, the cost of entertaining staff at a Christmas party is tax deductible and the spend can be deducted from your profits before tax, as long as you spend no more than £150 per head. This figure must take into account all costs, including venue hire, prizes, bar bill, taxis home and overnight accommodation. If you exceed £150 per head the total costs will have to be included on an employee’s P11d. The £150 limit can also be applied to spouses and partners, effectively doubling the allowance and scope for generosity. You can claim back the VAT element of the bill on the employees cost but not the partner or spouse cost.

Things to be aware of:

If the cost of the event averages out at even £1 over the limit (£151), the entire event costs will be taxable as a benefit in kind, not just the £1.
This is an annual limit, so if you throw a similar event in the summer, you’ll need to make sure you haven’t spent more than £150 per person in total over both events.
The function must be open to all employees, or all staff within a geographic area. It cannot be applied to specific teams or groups.
Qualifying events must be regular annual functions, like a Christmas party or annual Summer ball.

Gifts

Non-cash Christmas gifts and vouchers to staff up to the value of £50 are generally exempt from tax and National Insurance under the trivial benefit exemption, as long as the £50 annual limit hasn’t been exceeded during the year. The gift must be available to all employees as well.

A lot of employers are choosing to give a cost-of-living cash bonus this year, to help employees meet rising energy bills and cope with inflation. Whilst this kind of payment is subject to tax in the usual way, it will undoubtedly be appreciated by staff and is a kind and generous move which fits in nicely with the spirit of the festive season.

Equally, employers who offer staff extra time off to catch up on their Christmas shopping or watch their children’s festive school production may not gain any tax advantage, but they will benefit from happy, grateful and hopefully less stressed employees.

We've Expanded

Wed, 28 Sep 2022 14:42:19 GMT

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Over the summer we completed our move to a much larger office suite in Windsor House, to give us plenty of room for team working and further growth.

We are enjoying the extra space and we're pleased to have been able to stay in the same building (even the same floor!).

We feel very much a part of the thriving business community at Windsor House and it's a great location, close to town and with the beautiful Valley Gardens right on the doorstep.

Wild & Co Chartered Accountants is a family firm that launched in 2009 and has gone from strength to strength, thanks to the uniquely proactive support it offers to businesses of all sizes. Since Covid, the size of the team has doubled - and so too has our office space.

We love living and working in Harrogate and have worked hard to build our business here, with Windsor House as our base for the past five years. We're delighted that our positive approach has seen us double our turnover since the start of lockdown and that we are supporting even more businesses than ever to achieve their own ambitions.

Does it make financial sense to switch to electric vehicles?

Mon, 05 Sep 2022 23:23:02 GMT

Does it make financial sense to switch to electric vehicles?

The government is currently incentivising the purchase of electric cars in a number of ways, including tax breaks.

The benefit in kind rate depends on the CO2 emissions of the vehicle. For the tax year 21/22 electric-only cars (0g/km) are charged at 1%. This will rise to 2% for the tax year 22/23. The rate for electric hybrids depends on their electric-only range and the CO2 levels.

In addition, 100% first year capital allowances relief is available for purchases of new, zero emission electric vehicles and vans which means the full cost of the car can be claimed in the year of purchase. Furthermore, electric charging points are covered by the super deduction scheme which offers 130% first year allowance on the investment.

It’s also worth remembering is that there is no road tax to pay on fully electric vehicles and grants are also available towards both the cost of purchasing electric cars for businesses and installing charging stations.

For more information on tax and electric vehicles speak to the Wild & Co team on 01423 222710

What is a Business LPA and why might you need one?

Thu, 01 Sep 2022 14:45:50 GMT

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What is a Business LPA and why might you need one?

Most people are familiar with the term Lasting Power of Attorney in the context of a relative who is no longer able to make their own financial decisions due to long term illness or mental incapacity but few business owners recognise the importance of putting one in place as part of their continuity planning. Award-winning solicitor and Trusts and Estates Practitioner Helen Forster of HTF Legal explains what a Business LPA is and why you might need one.

What is a Business Lasting Power of Attorney?

A Business LPA gives legal authority to a nominated person to deal with your business affairs and make decisions on your behalf, should you ever become unable to do this yourself. In that respect, it is similar to any other type of LPA but the difference with a Business LPA is that the nominated attorney must have the technical knowledge to act on your behalf. If, for example, you are a qualified solicitor, your attorney must also be a qualified solicitor and therefore capable of carrying out your duties in your place.

Why might you need an LPA for your business?

“What many partners and directors don’t realise is that, under the Mental Health Discrimination Act, it is not possible to simply remove a fellow partner or director if they are incapacitated. Neither is it possible to make decisions on their behalf.

“A Business LPA is therefore an essential business continuity tool and every boardroom member should appoint someone suitable to act for them should they be unable to make decisions themselves.

“Ideally a Business LPA should be in place for each partner or director and should be agreed at a board meeting so that all those with a controlling role in the business are in agreement and fully aware of the contingency steps that have been put in place.

“Every business owner hopes the Business LPA will never be needed but by establishing one, they know that a person of their choosing will be able to continue to deal with their affairs, should this become necessary.”

Helen Forster is a Dementia Champion with Age UK, a member for Solicitors for the Elderly and also a member of STEP (The Society of Trusts and Estates Practitioners). For more information about Business LPAs contact Helen Forster at HTF Legal on 01937 227 830.

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Outsource your payroll administration

Tue, 16 Aug 2022 10:31:24 GMT

Did you know that Wild & Co can handle your payroll administration, no matter how many people you employ?

Our CIPP qualified team is experienced in managing all aspects of payroll including:

Monthly/weekly payroll services
PAYE reporting and returns
Employee expenses submissions
Auto-enrolment pension processing and management, including re-enrolment

Our service complies fully with UK payroll legislation and we have invested digitally to provide a robust, transparent, efficient and compliant service for the businesses we work with.

Our payroll team work alongside our accountants in the office, ensuring your payroll sits seamlessly with your accountancy services. This is critical when you consider how closely the two are interlinked. Her expertise is supported by our knowledge of your business, particularly in areas such as company pension schemes, grants and company benefits.

Payroll with Wild & Co is easy to set up and can be a real time saver. It is also scalable and flexible so that you can adjust the level of service, depending on your business’s changing needs.

We are delighted that so many of our clients have already outsourced their payroll administration to us, allowing them to focus their time and attention on other areas of their business.

If you are considering outsourcing your payroll, please give us a call or drop us an email for more details.

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Capital Gains Tax on Residential Property

Wed, 27 Jul 2022 10:21:39 GMT

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If you are selling a residential property that is not your main home, don’t forget to mention it to your accountant so that you are fully informed of any Capital Gains Tax implications and payment deadlines.

The 60 day CGT rule

There is now a requirement to report and pay any taxable gain within 60 days of completion of the sale of a residential property that is liable for CGT.

This applies to qualifying UK residential properties and has been effective on properties sold on or after 27 October 2021. The CGT must be reported to HMRC and paid within the 60 days. Failure to do so could result in penalties and interest charges.

Previously, CGT was reported via an annual Self Assessment Tax Return and many property owners and legal advisers are still unaware that the rules have changed. This has resulted in sellers unwittingly facing penalties from HMRC.

The requirement to declare the sale via annual tax return has not been removed, however. It is now necessary to do both. The seller will have to submit a Self Assessment Tax Return for the year in which the sale occurred. Effectively, the initial payment within 60 days of completion is a payment on account and the subsequent Self Assessment Tax Return ensures the correct amount of tax has been paid in the tax year.

Calculating Capital Gains Tax, reporting liabilities and claiming reliefs is a complex area that has been made all the more onerous thanks to the 60 day rule. Reporting must be done through HMRC’s online portal.

At Wild & Co, we have significant experience in property taxation. We would urge our clients to keep us up to date with any potential property transactions, even if these involve residential rather than commercial property. We can advise you on calculating your capital gains tax liability and filing your tax return.

Contact Wild & Co on 01423 222710 or email info@wildandcoaccountants.co.uk for property accountancy advice and help with residential property CGT.

Using networking effectively to grow your business

Mon, 04 Apr 2022 13:53:47 GMT

Good business is built on strong relationships which is why we’re such advocates of networking. We have seen for ourselves how effective it can be for our own business and those of our clients and contacts.

As well as being a great way to meet fellow businesses and potential clients, networking is a fantastic opportunity to share experiences with other businesses. We have found that group members can be extremely helpful in pointing each other in the right direction for support and expertise.

It is a well known fact that people do business with people they like and trust. As networking group members get to know one another they gain a deep understanding of one another’s USPs and become more willing to recommend each other to their own colleagues and contacts.

If time is tight, don’t forget that one of the most popular business networking tools is LinkedIn which means you don’t even need to leave your desk to meet likeminded business people. We use LinkedIn to broaden our network and we regularly share news and useful information on our own LinkedIn Company Page .

Having said that, we love getting out of the office and meeting people face to face. The Wild and Co team are active members of a number of excellent local networking groups. One of our favourites is Harrogate Social, which we help to organise. It’s a very informal event which meets in a different bar or venue in Harrogate on the first Friday of the month. Sign up here to be the first to know when the next meeting spot is announced.

A Quick Guide to Some of the Latest Xero Apps and Functions

Tue, 15 Feb 2022 14:53:47 GMT

As Xero Gold Partners we keep ourselves and our clients up to date with all the latest cloud accounting tools and technology upgrades, including Xero Apps.

There are lots of Apps that integrate with Xero to make running a business easier. Here are just a few of our top picks.

Xero Verify

The Xero Verify authenticator app is now available for easier multi-factor authentication.

Xero Verify is the only authenticator app that sends push notifications when you log in to Xero.

You can also use Google Authenticator, FreeOTP or Authy but you won’t receive push notifications, you’ll need to enter a code instead.

You can find out more about the app, which is available in the App Store and Google Play store, by following the link below. There are some useful videos to help you set up multi-factor authentication and find out how to sync Xero Verify to your Xero login to allow it to automatically send notifications to you.

Find out more >>

Xero and Shopify

You can now combine Shopify’s sales tools with Xero for a better view of business performance and easier ecommerce.

Shopify sales transactions flow automatically from Shopify to Xero where you can reconcile them against bank data in just a few clicks.

Xero automatically shows your Shopify sales and fees on a daily basis so you can track revenue and profit.

Find out more >>

Xero App Launcher

The Xero App Launcher lets you launch an app that you have already connected to your Xero account without interrupting your workflow. There is no need to remember URLs or rely on browser bookmarks and with some apps, you'll even skip the login screen.

When you select an app from the Xero App Launcher menu, the app will open in a new tab. If you signed up to the app using your Xero login credentials, you’ll be automatically logged in. Otherwise, you’ll have the option to give consent for Xero to log you in automatically.

Find out more >>

Liz Shares Tax Tips on Channel 4

Mon, 10 Jan 2022 14:53:47 GMT

Liz Wild went along to Channel 4’s Leeds headquarters to share her tax tips and offer advice ahead of the January 2021 tax return deadline.

Appearing on Steph’s Packed Lunch, Liz chatted to presenter Steph McGovern about the who, what, why, where and when of completing a tax return.

Liz’s advice included treating the 31st January date as a deadline, not a target – it’s always better to complete your return early so that you know exactly how much you’ll need to pay and can plan for it. You might even be due a refund, which can be claimed earlier if you’ve completed the paperwork sooner.

She also directed viewers to a handy tool on the HMRC website for working out whether or not you need to complete a tax return.

Clint, in the audience, asked about the rules for anyone who has started an EBay or Amazon shops to earn a bit of extra income during lockdown. Liz reminded viewers that 31st January 2021 is the deadline for submitting your tax return for money that you made between the 5th April 2019 and the 5th April 2020. If you made this extra money after the 5th April 2020, you won’t need to declare it until the next tax year. However, just because you have a whole year before the deadline, doesn’t mean you should ignore it until then. Establish good practice in your new business right from the beginning and start setting money aside for tax so you can pay when the time comes.

She also had advice for anyone who’s struggling to pay their tax bill this year due to the impact of coronavirus. Liz said people should talk to their accountant or HM RC as soon as possible so that a plan can be put in place to pay what’s owed.

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The Benefits of a Group Structure

What is a group structure? ﻿

Protecting assets ﻿

Potential Tax Advantages ﻿

Clearer management and oversight

Supporting growth

When might a group structure be worth considering?

How Wild & Co Chartered Accountants can help

How to Set Up a Personal HMRC Government Gateway Account (And Why You Should)

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How to Set Up a Personal HMRC Government Gateway Account (And Why You Should)

What is a Government Gateway Account?

How to Set Up a Personal HMRC Government Gateway Account

What Can You Do With Your Personal Tax Account?

Final thoughts: Why it’s worth your time

Need Help?

How to Successfully Prepare Your Business for Sale: An Expert Guide

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How to Successfully Prepare Your Business for Sale: An Expert Guide

1. Start Preparing Early—Ideally Three Years in Advance e

2. Structure Your Financials the Way Buyers Want to See Them

3. Validate Your Numbers—So There’s No Room for Negotiation

4. Help Buyers Understand Your Business’s True Value

5. Manage the Financial Data Room for a Seamless Due Diligence Process

6. Represent You in Buyer Negotiations

7. Bring in the Right Experts to Secure the Best Deal

8. Minimise Tax Liabilities with Strategic Planning

9. Find the Right Buyer—Even If You Don’t Have One Lined Up

10. Maintain Discretion Throughout the Process

Q&A: Buying a car through your business

Q&A: Buying a car through your business

What are the advantages of buying a car through a limited company rather than buying it personally?

Is it better to buy an electric car through my limited company as a hire purchase or rental lease?

What if I’m not buying an electric vehicle?

What about benefit in kind?

The Future of the Furnished Holiday Let (FHL)

The Future of the Furnished Holiday Let (FHL)

Sole trader vs limited company – which is best for you and your business?

This is a subtitle for your new post

Sole trader vs limited company – which is best for you and your business? ﻿

What is the difference between a sole trader and limited company? ﻿

Some pros of operating as a limited company ﻿

Some pros of operating as a sole trader ﻿

The rules for claiming VAT on business expenses

The rules for claiming VAT on business expenses ﻿

A bit of background ﻿

Criteria for recovering VAT ﻿

Which expenses don’t qualify for VAT recovery? ﻿

Reclaiming VAT on cars ﻿

What paperwork will you need? ﻿

What else should you watch out for? ﻿

Celebrating 15 years of Wild & Co

Celebrating 15 Years of Wild & Co

Finalists in the Harrogate Advertiser Business Awards

Finalists in the Harrogate Business in Excellence Awards

How to avoid an enquiry by HMRC

How to avoid an enquiry by HMRC

What is an HMRC enquiry?

Stick to the deadlines

Keep income/expense ratios under review

Keep records up to date

Maximise the benefits of your accounting software

Accuracy and detail ﻿

What to do if you face an enquiry ﻿

Giving to charities as a business or individual

Giving to charities as a business or individual

﻿

Donating as an individual or a sole trader

Donating through a limited company

Giving to charities in other ways

6 benefits of using a Cloud accountant

6 benefits of using a Cloud accountant

﻿

Easier access to information and advice

Real Time Information ﻿

Digitally savvy ﻿

Data security

Flexibility and scalability ﻿

Making informed decisions

What is a group structure?

Protecting assets

Potential Tax Advantages

Sole trader vs limited company – which is best for you and your business?

What is the difference between a sole trader and limited company?

Some pros of operating as a limited company

Some pros of operating as a sole trader

The rules for claiming VAT on business expenses

A bit of background

Criteria for recovering VAT

Which expenses don’t qualify for VAT recovery?

Reclaiming VAT on cars

What paperwork will you need?

What else should you watch out for?

Accuracy and detail

What to do if you face an enquiry

Real Time Information

Digitally savvy

Flexibility and scalability

Applying for a mortgage when you’re self-employed

How do lenders decide if someone is self-employed?

How is my income assessed by lenders?

Focus your growth

Review funding