The Road To Success

inspring journerys of growth & transformation

Transforming Financial Worries into Success
for Distribution Jointing Services Ltd

client overview

Sam Goldthorpe, Director of Distribution Jointing Services Ltd, was a high-stress individual employed as an electrician jointing high voltage lines. As a higher rate taxpayer with significant family expenses, Sam faced a high-risk decision to start his own business. With a wife returning to university after a 10-year break to care for their two children, the stakes were high.

Challenges

Sam had no experience with self-employment or running a limited company. He was unaware of the legal requirements, tax implications, and whether his take-home pay would be affected. His high-stress nature and need for constant reassurance made him apprehensive about every aspect of the transition

Our Approach

Sam found HD Accountancy through a friends recommendation, conveniently located within walking distance from his house. In our initial meeting, we explained how self-employment works, outlined the taxes he needed to pay, detailed the legal compliance requirements, and provided a budget to ensure he wouldnt earn less than his previous employment income.

Key Actions we have taken
Business Setup
  • Registered his company in October 2022.
  • Set up a business bank account and all required registrations, including CIS contractor and subcontractor.
  • Provided guidance on VAT registration and reclaiming input VAT.
Tax Planning and Compliance
  • Set up salaries and pensions for Sam and his wife.
  • Managed subcontractor setup and monthly CIS submissions.
  • Ensured accurate PAYE payments and created HMRC accounts for regular tax position checks.
Financial Management
  • Trained Sams wife in invoicing and record keeping, enabling her to support the business operations efficientl.
  • mplemented QuickBooks and Dext for seamless financial tracking.
  • Linked his bank with QuickBooks for real time updates.
  • Provided direct contact numbers for our directors for instant support, even outside office hours
Stress Management
  • Offered continuous reassurance and immediate responses to all his queries.
  • Scheduled a thorough review meeting after ten months to discuss his financial progress and tax obligations.
Results
Increased Revenue

Sam s turnover in the first ten months was double the initial annual budget.

Increase take home pay

in first trading year Sam made after tax profit which is 2.5 higher than his gross salary.

Tax Efficiency

Successfully claimed all VAT, handled all CIS submissions, and ensured timely PAYE payments

Stress Reduction

Provided constant reassurance and immediate answers to reduce Sam s stress levels.

Financial Security

Enabled Sam to understand his tax obligations, leading to significant CIS refunds, including a £60K refund post-23/24 tax year.

Future Planning

Boosted Sam s confidence, leading to plans for business growth and sustainability without his constant involvement.

Thanks to HD Accountancy, managing our finances has never been easier. Their expertise and technology have saved us both time and money. I now have the confidence to grow my business and plan for a future where it can run without me

Sam Goldthorpe, Director

Sam Goldthorpe s journey from a high-stress employee to a successful business owner highlights HD Accountancy s commitment to providing exceptional support and expertise. We are dedicated to transforming financial worries into success stories. Contact us today to learn how we can help your business thrive.

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Defending a Four-Year Tax Investigation
Without Penalties or Interest Charges

Client Overview

Ayub Ansari, Proprietor of Ull-Haq Superstore, turned to HD Accountancy in 2018 when he faced an intense HMRC tax investigation. His store s complex cash inflows and outflows, including cash sales, PayPoint, lottery, money transfer services, and cash machine operations, required meticulous handling and compliance

Challenges

Ayub's business faced significant challenges:

  • Complex financial transactions with a high volume of cash operations.
  • Potential suspicions of undisclosed sales and money laundering due to the nature of cash transactions.
  • Frequent changes in HMRC investigating officers, leading to inconsistencies and uncertainties in the investigation.
  • HMRC's misunderstanding that all received money belonged to the business, whereas commissions from Pay Point, lottery, and money transfers were only a small percentage of the total
Key Actions we have taken
Immediate Compliance Check

Conducted a thorough review of Ayub s till systems and recommend new HMRC-compliant till systems to ensure accurate record keeping and reporting.

Accurate Financial Management
  • Managed his day-to day bookkeeping, VAT returns, and annual taxes.
  • Addressed the complexities of handling standard rated, lower rated, zero rated, and exempt products, alongside cash inflows and outflows from PayPoint, lottery, money transfer services, and cash machine operations
Persistent Defence

Throughout the four-year investigation, we consistently appealed against HMRC's determined penalties, maintaining our stance that Ayub had done nothing wrong.

Expert Intervention

As the investigation dragged on, our director, Shultan, took over. With his extensive experience in HMRC tax investigations, Shultan swiftly assessed the situation, interacted with the investigation officer, and resolved the case within two weeks, resulting in no penalties, interest charges, or further recommendations.

Result
No Penalties or Charges

Successfully concluded the investigation without any penalties, interest charges, or further recommendations, showcasing our effective defense and understanding of HMRC procedures.

Improved Systems

mplemented HMRC compliant till systems, ensuring Auybs business operations were streamlined and compliant.

Continued Support

Maintained clear and fast communication with Auyb through WhatsApp, office phone, email, and face-to-face appointments, keeping him informed and reassured throughout the investigation and beyond.

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Navigating Complex Compliance and
Achieving a Half-Million VAT Refund

Client Overview

Matthew Staley-Harrison, Director of 365 Group Ltd and four other companies, approached HD Accountancy amidst a turbulent period marked by rapid business growth and significant compliance challenges. Matthew's businesses experienced exponential growth, with turnover increasing from £240K to £1.7M and then to over £3M within two years. However, the transition was marred by poor support from previous accountants, leaving Matthew's companies' accounts and compliance work in disarray.

Challenges
  • Overdue Accounts and Corporation Tax: When Matthew joinedus, his companies accounts and corporation tax (CT)Mubmissions were overdue, with necessary documents missing
  • Unreconciled Transactions: His Xero account had over 5000 unreconciled transactions, and previous years accounts were Mubmitted without proper reconciliation
  • HMRC VAT Investigation: One of his companies was under an abandoned VAT investigation, and HMRC was chasing for compliance
  • Business Growth: Rapid growth left Matthew with little time to manage compliance, putting additional pressure on ensuring accurate financial management.
  • Complex Cash Flows: Intercompany transactions and applying proper VAT rules added to the complexity of the financial landscape.
Key Actions we have taken
Immediate Compliance Check
  • Conducted an on site ²isit to understand Matthew’s paperwork management and financial tracking.
  • Requested an extension from HMRC for the ongoing VAT in²estigation to gain time for a thorough re²iew.
VAT Strategy
  • Investigated the VAT treatment of the ambulance services, whichwere exempt. However, following a tribunal verdict in favour of zero rating for similar services, we applied for VAT registration retroactively for four years.
  • Undertook the massive task of preparing VAT returns for over 17,000 transactions, meticulously documenting and double checking all claims to ensure accuracy and defensibility.
Reconciliation and Tax Planning
  • Began reconciling the transactions in Xero, creating draft accounts, and addressing the backlog of compliance work
  • Scheduled a tax planning meeting, discussing the super deduction scheme to leverage investment benefits for expensive ambulance equipment.
VAT Strategy
  • Submitted the prepared VAT return, which prompted an HMRC investigation.
  • Arranged an early meeting with HMRC, presenting a comprehensive VAT file and the tribunal verdict supporting our claim.
  • Provided detailed calculations and additional documentation requested by HMRC's technical team, addressing all aspects of the business model and technical specifications of the ambulance services.
Result
Successful VAT Refund

Our diligent preparation and thorough documentation resulted in HMRC approving a VAT refund just under half a million pounds.

Resolved Compliance Issues

Cleared the backlog of overdue accounts and corporation tax submissions, bringing Matthew's businesses back into compliance.

Ongoing Support

Established robust financial management practices, facilitating rapid communication through WhatsApp, office phone, email, and face to face appointments.

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