Ian Piper (Accountants Ely)

Once clients have built up a successful business, their focus will naturally evolve from business development to protecting the valuable they have buily up from the risks associated with running a business.

If you own and run a business that you do not intend to pass on to the ‘next generation’ or liquidate, then, one day, you will have to exit this business. Exit planning is the process by which you plan and prepare for this exit.

SME Growth: Will BREXIT spoil the party? SME’s are generally focused on growing the sales side of their business, to improve bottom line profitability. Having bounced back from the double-dip recession, then flat-lining for a couple of years, it looked like proper growth had once again returned to our local businesses: (Source Data) And then came…

Abbreviated Accounts RIP: So what next ? For accounting periods commencing on or after 1-Jan-16 SME companies will no longer be able to file abbreviated accounts on the public record at Companies House. Instead, they will have to choose from: Full accounts, Filleted accounts (full accounts minus the Directors Report and Profit & Loss Account…

FRS102: How affects TechCo’s ? Accounting standard FRS102 is the biggest change in accounting rules for nearly a generation. It will influence how statutory accounts are presented, the terminology and how profit (and hence tax) is calculated. All SME companies must follow this standard for accounting periods commencing on or after 1 January 2016, with earlier adoption encouraged. So…

Companies House Filing Deadline Looming: ‘Workaround’ to extend by 3m. Annual statutory accounts are normally due for filing at Companies House 9m after your year end. You can change your company’s year end (also known as its ‘accounting reference date’) to make your company’s financial year run for more or less than 12 months. Shortening your…

+3% Extra Stamp Duty Land Tax: Unless you purchase before 1 April. Property investing clients will be aware than plans for a 3% stamp duty land tax surcharge for property purchases over £40k of second homes and  buy-to-lets are due to come into effect on 1 April 2016. This leaves a small window of opportunity…

Examining whether it is best to run the business as a limited company or otherwise (sole trader, partnership or LLP), If operated as a limited company: Looking at the combined business and personal tax ‘picture’ and optimising the mix of retained profits, salary, bonus and dividends (for the business owner and, where relevant, immediate family…

As the tax calculations below illustrate, based on the UK tax rates and thresholds for 2016/17 (ie applying the new dividend taxation rules), a limited company still results in a lower overall tax/NIC charge than a sole trader (allowing for the extra accountancy fees incurred through trading as a limited company), whilst profits are above…

P/E Ratios: Mind the Gap! If your business exit plan is a trade sale, then you will be interested in taking advantage of differential Price Earnings (P/E) ratios.  A P/E ratio is the multiple of future maintainable earnings (profits) used to value a business. The P/E ratio appropriate for valuing your tech business will depend…