Case Studies

Case study 1

We conducted a full business healthcheck for a pathology lab and re-submitted an incorrect research & development tax claim, which ultimately delivered £100k in cash benefits.

Our involvement

The owners of a busy pathology laboratory approached us to conduct a healthcheck of their business.

At the time, there was a possibility that the business might be sold, so we recommended a full financial review. This would make the due diligence process, a crucial part of any sale, much less complex if the decision was made in the near future.

Our work showed deficiencies in a number of areas:

  • There were no monthly accounting records so the financial team had little or no control over the day-to-day cashflow.
  • The accounting system was woefully disorganised and needed completely re-structuring.
  • A Research & Development tax claim had been submitted – incorrectly – and not all qualifying expenditure had been claimed.
  • There were a number of serious shortcomings with the Employee Share Scheme.

The outcome

Our first priority was to re-structure the accounting system and set up comprehensive monthly management information. This gave the business a starting point from which future records could be kept up-to-date.

A new submission for the R&D claim was prepared, the correct amount of qualifying expenditure was claimed for - and this delivered £100,000 worth of cash benefits to the business.

Our team resolved several issues with the employee share scheme and most importantly, recruited an experienced Financial Controller to have overall responsibility for the day-to-day running of the business.

 

Case study 2

Our client was developing an online suite of training programmes, designed to enhance learning and development and help blue chip organisations improve their performance.

Our involvement

We identified the project as an innovation that would qualify for Research and Development tax relief, and prepared and submitted the tax claim accordingly.

We ensured that all qualifying expenditure was taken into account and handled the complex negotiations on our client’s behalf.

The outcome

The tax claim delivered a cash benefit to the business of £200,000.


Case study 3

Our client is a guitar amplification design and production company run by talented musicians with years of experience and passion for what they do. When they wanted to expand, we helped them prepare the business for investment.

Our involvement

The company approached us initially for taxation and general accounting services because they had concerns with their previous accountant.

As we began to review the business, we quickly realised that they had an excellent claim for Research & Development tax relief. We made a retrospective claim on their behalf for 2010 – and the company received a cash benefit of £29,000.

Subsequent claims delivered more cash benefits and we also identified qualifying development under The Patent Box scheme. This allowed us to implement further tax savings on their behalf.

Securing venture capital funding

In order to help the business secure venture capital funding in order to meet its expansion plans, we worked alongside the Corporate Finance Advisor, who took the Lead Advisor role in the process. We helped to clarify the taxation issues that arose for both investors and shareholders.

Our team ensured that the business was in excellent shape, in terms of cashflow and its short and long-term business planning in order to attract the most robust and appropriate funding. We then undertook due diligence for the investors’ advisors

The outcome

The deal was successfully concluded and the company is currently going from strength to strength.

 

 

Call us on 01926 407611 to find out how working with Varney Barfield can help you manage and grow your business more effectively.