Spotting The Early Warning Signs
Tax planning is not an exact science but when we engage with a new client, there are a number of warning flags that indicate action might need to be taken. Among those issues are some of the following:
- surplus cash sitting on the balance sheet
- a significant proportion of non-business assets in a trading company
- the absence of good paperwork such as wills, shareholders agreement etc.
- single director companies
- lack of a succession plan
- no plan to motivate or reward key people
- lack of quality management
- key business assets exposed to significant business risk
These and other issues are very common but usually indicate a lack of planning being undertaken with a business and family. Whilst plans need to be flexible, in our view successful businesses have a vision of what they are trying to achieve, including the end game whether that might be sale, passing on to the family, selling to employees or an Employee Ownership Trust.
Our Taxperts will spend time with you ensuring that you have a plan, one which you can build your business ideas around. If you’d like to discuss your circumstances with us, please call one of our offices or email [email protected].