Throughout the business lifecycle, from company formation through to the sale of the business, Morris Crocker have guided the company through a range of challenges.
From partnership to incorporation
When incorporating the business there were several issues to consider, including:
• Ensuring there were no unexpected tax charges when the unincorporated business ceased trading.
• Setting up the share structure and articles of the new company correctly from the outset.
• Choosing the most advantageous method of incorporation with regard to available Capital Gains Tax reliefs
• Creating a tax free directors loan account.
Online accounting
The client had a clear vision of where they wanted the business to be and what they wanted to achieve financially. We implemented a robust online accounting system to provide them with an up to date picture of their company finances, cash flow forecasting, variance and profitability analysis as well as key performance metrics to ensure they were on target.
Research and development tax credit
Not only were our clients designing websites but they were also developing new web based applications to create competitive new solutions. Having successfully claimed R&D tax credits on behalf of similar clients since the initiative was launched in 2000, we immediately identified the opportunity and put together a case for the R&D credit which was subsequently agreed by HMRC.
Exit plan
After 12 years of successfully building the agency in to a renowned and highly profitable business, the owners decided to sell via a profit earn out. The preparation of an exit plan put the owners in a strong position to address key issues such as their future income needs and how long they wanted to remain active in the business with full consideration given to the tax implications of the sale.
In a high growth sector driven by innovation and the creation of valuable intellectual property, having the right advice and accountancy support is critical for achieving your business goals. Morris Crocker have a lot of experience in this sector, from helping start-ups get off the ground through to specialist tax planning and corporate finance.
We have removed the client's name from this case study to protect their identity.
