Tax Solutions & Wealth Preservation
Thought, knowledge and planning
Preservation
Thought, knowledge and planning
In today’s tax environment before you start making money any decision about where it should go must be proactive. The best structure for you is the one that leaves the most money in your pocket, and that depends on how much you’re going to be earning, whether you have cash in reserve, and what else you might want to do.
We invest heavily in research to create tax solutions that help dental practice owners. We will review how your business is set up and if we see any opportunities to make efficiencies we will recommend them and, if you approve, implement them.
No other advisers in the dental industry can give you this overview. A concept we use to start this conversation and get you thinking is the iron triangle: there is always a trade off between your tax rate, access to cash and your relationship with HMRC. Would you like to prioritise one over the other two? Here is what one of our clients had to say about how it helped him.
INCORPORATING YOUR BUSINESS
Despite changes to Capital Gains Tax, practices with a cash reserve can still yield a return of up to 87.5% when they incorporate.
CASE STUDY: TAX EFFICIENT SPECULATION
When our interim report identified £50k surplus profits at Dr N’s practice, we wanted to know more about his plans.
He didn’t need more personal funds so we looked at some speculative options which were tax efficient, so the risk was mitigated by corporate tax savings.
Since the dividend tax rate rose to 32.5% or more for higher rate taxpayers, anyone wanting to access all of their profits faces a combined tax exposure of up to 50.5%. It’s pretty clear that you are doing yourself a disservice not to explore every option to delay, defer or mitigate this money sink.
CASE STUDY: TAX EFFICIENT SPENDING
If you need to access your wealth, there are ways we can help you do it efficiently, so don’t let lazy tax advisors tell you that living off the “tax sweet spot” of £100k a year is your only choice. Here’s an example.
CASE STUDY: PRACTICE SALE
Mr M was negotiating with a corporate that was buying him out. It had a team of expert lawyers, who made their offer, and said that’s the way they do things.
It was the first time Mr M had sold a practice, so he felt unfavourably pitched in terms of expertise, and was carried along by the wave of activity and expectation.
His accountant, doing nothing wrong, told him the precise tax bill based upon the method instructed, but he came to us and we suggested an alternative sale structure, with no downside for either party.
This saved Mr M more than £200k in tax.
CASE STUDY: PRACTICE ACQUISITION
Mr D was looking to purchase his first practice.
