Advanced tax and business solutions
Successful Entrepreneurs and professional investors are always focused on improving their businesses and asset portfolios. However they fail to realise how quickly they have outgrown their existing advisors. Unfortunately it usually takes a bad experience such as an unaffordable tax bill or simply bad business advice or even no advice at all for an entrepreneur to appreciate the importance of having a team of financial experts to support their business.
The greatest problem that currently exists in the service industry is trying to find the best available advice that matches the entrepreneurs’ specific requirements.
Where can entrepreneurs go to get the best available tax advice that can save them a substantial amount of money without breaking the law and at the same time provide value for money? Who wants to pay £20,000 in fees to save £20,000 in tax? Are the Top 4 accountancy firms really the best tax advisors? Unfortunately the biggest advisors are not necessarily the best advisors nor do they provide the best solutions as required by the entrepreneur.
Where can entrepreneurs go to get the best available business coaching and consultancy that can genuinely improve their businesses? The market is currently saturated with providers who claim to be expert consultants so how can you separate the good from those that can and will simply give your businesses a negative return on your investment?
Luckily for our clients the Charles Group has resolved these issues!
Advanced Tax Solutions
Unlike most accountancy firms the Charles Group is not limited to just 1 tax nor are we associated with just one provider. In fact the Charles Group is proud to have established relationships with the best tax strategists in the country who are experts within their own niche area of taxation. However before we can guide our clients to the best available advice we take the required time to understand the following:
1. What business the client is involved in and where they are based?
2. What the client desired outcome is? Profit maximisation, exit strategy, legacy, passing assets to beneficiaries in the most tax efficient method or simply to reduce their tax liability for the coming year?
AND MOST IMPORTANTLY
3. What is the "Tax Risk” of the client and the key decision makers?
Similar to all risk profiles every client varies in their appetite for "Tax Risk”. Unfortunately both the media and our government have placed misleading views to the public about the difference between tax planning, tax avoidance and tax evasion with the hope that they will scare off the vast majority from utilising anything but the most basic forms of tax planning (whatever that may be!). Whether such publicity fills you and your business partners with fear of HM Revenue and Customs or if the idea of paying tax simply horrifies you, simply depends on your attitude towards "tax risk”.
Taxation and the advice to mitigate or reduce it can be labelled as shown in the diagram below:
The advice surrounding tax mitigation can be labelled between 3 key indicators – Planning, Avoidance and Evasion with numbers providing a clear segregation between the 3 different forms of tax mitigation. Therefore level 1 is "white” tax planning and will involve areas that are clearly defined by current tax law. This will include but not limited to areas such as maximising your capital allowances or maximising your pension relief. Provided the rules within the legislation are met this will result in perfectly acceptable methods of planning. Level 10 is "black” tax evasion and is illegal and could result in a jail sentence for both the advisor and the tax payer. Examples of tax evasion would be remuneration from illegal activities and failing to declare monies held in offshore bank accounts. Tax evasion is illegal and as a firm we will never advise our clients to conduct themselves in such a manner.
However the main questions arise between the varying forms of "grey” tax planning and tax avoidance strategies. This area of advice is not easy to define and certainly requires a conversation with a tax expert such as that provided by the Charles Group. We would therefore suggest that you undertake the Tax Risk Questionnaire in order to discover for yourselves what your appetite is towards tax risk. The results will help guide us towards the type of advice that best suits your business.
As with all questionnaires, the Tax Risk Indicator provides you with an indication of your current Tax Risk profile. This means that as time passes and your circumstances change, it is highly likely that your Tax Risk profile will change, which will affect the type of advice that is suitable for you and your business. The purpose of the Tax Risk Indicator is to give you an accurate indication of your Tax Risk profile at this point in time and to provide us with the required guideline to ensure that our advice best fits your Tax Risk criteria.
(The Tax Risk Questionnaire is currently in development but due to be released by September 2013).
Advanced business solutions
Charles Group has managed to team up with Shirlaws the largest non-franchised business consultancy company in the world. We only like to recommend the best providers and experts within their field and we would not hesitate to introduce our clients who are looking to grow and maximise their exit strategy for their businesses. Utilising the same ethos as the Charles Group Shirlaws has successfully managed to combine great products with great service.
Click here to view our exclusive interview with Darren Shirlaw the founder of Shirlaws
Having a strategic plan puts you in control of the future of your business. Knowing what to include in that plan and how to implement it can be a daunting task for many entrepreneurs. Shirlaws Business Log Books are a simple recording system that captures the strategic history of your business.
As you plan and implement your strategies using the suite of frameworks and tools on this site, your business’ value will grow.
The added benefit is that you can interact with your coach and other advisors to fine tune your plan without having to create and manage duplicate copies. You can also save or print copies of your logbook every quarter to build your strategy history.
The Charles Group is currently working with Shirlaws to help accountants to utilise logbooks to bridge the gap between compliance and consultancy. If you are an accountant in practice and are looking for a way to increase your fees by offering your clients a service that will help them increase the value of their business and plan for a future exit click here