1. Dominos Franchise
Our client had recently left working for his brother in the fast food industry and as he had received a substantial payout, decided that he wished to take out a Dominos Pizza franchise.
He approached us to assist him with his application for the franchise.
After he attended a new franchisees conference at Dominos, we assisted him in putting together a business plan to assist his application. The problem was that our client was due to meet with the Dominos franchise department a week after he met us, in order to discuss his application in order to be a franchisee.
We sat with the client for a whole afternoon to obtain background information and essential details and a draft business plan was put together, along with three years of cash flows and projections within a day and a half.
Our client returned to discuss the plan, which was refined at that meeting.
The plan was completed and e-mailed to the Dominos franchise department the day before the meeting.
The following day, we attended with our client at Dominos head office in Milton Keynes where, after a gruelling four hour meeting during which the whole plan was scrutinised and discussed, our client was then offered the franchise position immediately, at the end of the meeting.
Our client was delighted with the work that we carried out and thanked us profusely for our help and assistance.
2. Sole Trader to Limited Company
A client who had started out as a bricklayer on a construction site had managed to build his business in to a substantial firm, carrying out repair work for various insurance companies.
Our client’s turnover had reached the level at which his personal tax was becoming a significant part of his outgoings.
After discussions with him, we advised him that the business would be best transferred in to a limited company.
We ran through the various procedures which he needed to carry out in order to transfer the business in to the company, including formation of the company, the transfer of the business, making the various elections with HM Revenue & Customs and advising clients and customers accordingly.
Although it is still early days, our client is happy with the work that we assisted him with and is looking forward to substantial reductions in his personal tax in the forthcoming years.
3. Using Trusts
Our client is a successful business man, with two limited companies both trading very successfully in the UK.
Our client owned just over 50% of the issued share capital in both companies with the remainder being owned by his children.
In order to assist him with his inheritance tax and capital gains tax planning we arranged, with a specialist, to set up two trusts, the beneficiaries of which were his children and his grandchildren. Each trust owned 25% of the issued share capital of each company and using the available reliefs at the time, we were able to make the transfer with no tax implications on our client.
We ensured that our client had a service agreement in place so that his income did not substantially reduce, even after the transfer of the shares and now, more than ten years after the transfer of shares, both trusts have substantial assets from which they can distribute to the various beneficiaries.
These assets are not held within our client’s own estate and therefore will be outside of any inheritance tax liability which could have built up over the years.
4. From Employment to Director
We were approached by our client, who had been recommended by a client he knew, when he was being made redundant in the technical side of the entertainment industry.
He had the opportunity of purchasing a large piece of equipment which would assist him in his work when he went freelance in the industry. The equipment purchased was to be jointly owned with another employee from the same former employer.
We discussed with both parties the setting up of a joint venture company to provide the services of the equipment, together with supporting individual service companies through which the services of both parties would be provided.
Having set up the various structures, we are currently advising our client, who is experiencing a steep learning curve, having moved from the comfort of being employed to having to run his own business, as well as provide the services that he had previously always carried out.
Our client is happy to be his own boss and although there are many matters that he still requires assistance with, he is looking forward to the future with great anticipation and the confidence that he has us to assist him with his various business needs.
5. From Sole Traders to Partnership
Our clients, husband and wife, who are both qualified driving instructors, were running their businesses as two separate sole trader businesses.
We demonstrated to them that by creating a partnership from both businesses, they could both substantially save on the amount of tax that they paid, although the level of income from the businesses would remain.
We ran through the various procedures necessary to create the partnership from the two individual businesses and they are now enjoying a substantial reduction in tax payments, whilst still continuing to work as they had previously.